ED Issues DCL on Preferred Lender Lists

The U.S. Department of Education (ED) on Friday, released Dear Colleague Letter (DCL) GEN-08-06, FP-08-06, which provides guidance for school use of a preferred lender list in the Federal Family Education Loan Program (FFELP).

Included among the information contained in the DCL is direction to schools unable to identify at least three lenders to fulfill the preferred lender list requirement, a clarification of the number of lenders that must be unaffiliated on the list, and information about ED's willingness to take into consideration a school's lack of control over lenders on their preferred lender list that may decide to discontinue making loans to a school's students and parents.

We encourage all FFELP participants to take a few moments to review DCL GEN-08-06, FP-08-06.