10/11/2005
“Single-holder” Rule Extended by ED

The Department of Education (ED) announced an extension of guidance regarding consolidation loans in Dear Colleague Letter (DCL) FP-05-09. Earlier in August 2004, DCL FP-04-06 announced ED’s decision not to deny reinsurance for FFELP Consolidation loans that do not comply with ED’s interpretation of the single-holder rule in certain circumstances described in that letter, as long as all Loan Verification Certificates were sent to loan holders by September 30, 2005 (unless the Higher Education Act was reauthorized before that date). As announced in DCL FP-05-09, this date has now been extended to March 31, 2006.