12/02/2003
Foreign School Loan Applications...A Different Ballgame

In an effort to prevent fraud in the foreign school loan process, the Department of Education has published DCL G -03-348 (L-03-242). This Dear Colleague Letter (DCL) provides new requirements for guarantors and lenders relative to the disbursing of FFELP funds directly to students who are attending foreign schools. Effective immediately, lenders or disbursing agents must obtain OGSLP’s approval prior to sending disbursements directly to students. Please contact OGSLP Loan Services at statuschanges@ogslp.org.

In the request for approval, a lender or disbursing agent, must provide OGSLP with the following information:

- The student’s name
- The last four digits of the student’s SSN
- The name of the foreign school
- The eight-digit school code
- The name of the school official who completed the school certification on the MPN.

Upon receipt of the information OGSLP Loan Services will:

- Confirm that the school is eligible to participate in the FFELP.
- Confirm that the student is enrolled at least halftime.
- Collect pertinent, demographic information.
- Respond to the lender or disbursing agent with an approval or denial.

Along with a loan approval, OGSLP will provide the lender or disbursing agent the demographic information of the eligible school. If the loan cannot be approved, a lender or a disbursing agent will also receive the reason for the loan denial.

In addition to securing loan approvals from OGSLP, a lender or disbursing agent must notify the school when the funds are disbursed to the student < CFR 682.207(b)(1)>.

The Foreign School DCL is provided for your reference: DCL G -03-348 (L-03-242)

If you have questions regarding these new foreign school requirements please contact OGSLP Loan Services at statuschanges@ogslp.org or call 405.234.4331 or 800.247.0420.