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| Procedure: **FFEL Loan Processes. This section is required            |
| [682.604](http://frwebgate.access.                                    |
| gpo.gov/cgi-bin/get-cfr.cgi?TITLE=34&PART=682&SECTION=604&TYPE=TEXT), |
| [682.606](http://frwebgate.access.                                    |
| gpo.gov/cgi-bin/get-cfr.cgi?TITLE=34&PART=682&SECTION=606&TYPE=TEXT), |
| [682.610](http://frwebgate.access.gp                                  |
| o.gov/cgi-bin/get-cfr.cgi?TITLE=34&PART=682&SECTION=610&TYPE=TEXT).** |
|                                                                       |
| Required information:                                                 |
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| **Processing Loan Proceeds and Counseling Borrowers:**                |
|                                                                       |
| 1.  Establish rules for processing FFEL or Plus Loan as outlined in   |
|     [682.604](http://frwebgate.access.                                |
| gpo.gov/cgi-bin/get-cfr.cgi?TITLE=34&PART=682&SECTION=604&TYPE=TEXT), |
|     [682.201](http://frwebgate.access.                                |
| gpo.gov/cgi-bin/get-cfr.cgi?TITLE=34&PART=682&SECTION=601&TYPE=TEXT)\ |
|     (Rules for a school that makes or originates loans),              |
|     [668.22](http://frwebgate.acces                                   |
| s.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=34&PART=668&SECTION=22&TYPE=TEXT) |
|     (Treatment of title IV funds when a student withdraws),           |
|     [668.164](http://frwebgate.access                                 |
| .gpo.gov/cgi-bin/get-cfr.cgi?TITLE=34&PART=668&SECTION=164&TYPE=TEXT) |
|     (Disbursing Funds) and                                            |
|     [682.207](http://frwebgate.access                                 |
| .gpo.gov/cgi-bin/get-cfr.cgi?TITLE=34&PART=682&SECTION=207&TYPE=TEXT) |
|     (Due Diligence in disbursing a loan), and                         |
|     [682.607](http://frwebgate.access                                 |
| .gpo.gov/cgi-bin/get-cfr.cgi?TITLE=34&PART=682&SECTION=607&TYPE=TEXT) |
|     (Payment of a refund or a return of tile IV,HEA program funds to  |
|     a lender upon a student's withdrawal).                            |
|                                                                       |
| 2.  Identify the process to provide prior to a school delivering or   |
|     crediting an FFEL loan account by EFT or master check, the school |
|     must provide the student or parent borrower with the notice as    |
|     described under                                                   |
|     [668.15](http://frwebgate.acces                                   |
| s.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=34&PART=668&SECTION=15&TYPE=TEXT) |
|     (Factors of Financial Responsibility).                            |
|                                                                       |
| 3.  Outline process on how the borrower is provided the conditions    |
|     under which the borrower may defer payment or obtain partial      |
|     cancellation of a loan.                                           |
|                                                                       |
| 4.  Outline process on how the borrower is to provide corrections to  |
|     the institution's records concerning name, address, SSN,          |
|     references and driver's license number as well as the name and    |
|     address of the borrowers expected employer that will then by      |
|     provided within 60 days to the guaranty agency or agencies listed |
|     in the borrowers records.                                         |
|                                                                       |
| 5.  The process to treat excess loan proceeds.                        |
|                                                                       |
| 6.  Establish rules for counseling borrowers as outlined in           |
|     [682.604](http://frwebgate.access.                                |
| gpo.gov/cgi-bin/get-cfr.cgi?TITLE=34&PART=682&SECTION=604&TYPE=TEXT). |
|                                                                       |
|     **Initial Counseling**                                            |
|     [682.604(f)](http://frwebgate.access.                             |
| gpo.gov/cgi-bin/get-cfr.cgi?TITLE=34&PART=682&SECTION=604&TYPE=TEXT). |
|                                                                       |
| -   Determine the method that initial counseling is conducted with    |
|     each student borrower unless the student borrower has received a  |
|     prior Federal Stafford Federal SLS or Direct Subsidized or        |
|     Unsubsidized Loan (i.e. in person, audiovisual presentation or    |
|     interactive electronic means). Procedures must ensure the initial |
|     counseling is completed prior to first disbursement.              |
|                                                                       |
| -   Procedures to ensure staff member with expertise in the Title IV  |
|     programs to be reasonable available shortly after the counseling  |
|     to answer questions.                                              |
|                                                                       |
| -   Include procedures to ensure borrowers enrolled in correspondence |
|     programs or study abroad programs to provide written counseling   |
|     materials before the loan proceeds are disbursed.                 |
|                                                                       |
| -   Develop counseling materials to include all of the elements       |
|     outlined in                                                       |
|     *[682.604(f)(2)](http://frwebgate.access.                         |
| gpo.gov/cgi-bin/get-cfr.cgi?TITLE=34&PART=682&SECTION=604&TYPE=TEXT)* |
|     and                                                               |
|     [*682.603(g)*](http://frwebgate.access                            |
| .gpo.gov/cgi-bin/get-cfr.cgi?TITLE=34&PART=682&SECTION=603&TYPE=TEXT) |
|                                                                       |
| -   If the initial counseling is conducted through interactive        |
|     electronic means, procedures must include reasonable steps to     |
|     ensure that each student borrower receives the counseling         |
|     materials, and participates in and completes the initial          |
|     counseling.                                                       |
|                                                                       |
| -   Maintain documentation of initial counseling in each student's    |
|     file.                                                             |
|                                                                       |
|     **Exit Loan Counseling**                                          |
|     [682.604(g)](http://frwebgate.access                              |
| .gpo.gov/cgi-bin/get-cfr.cgi?TITLE=34&PART=682&SECTION=604&TYPE=TEXT) |
|     and                                                               |
|     [*682.603(g)*](http://frwebgate.access                            |
| .gpo.gov/cgi-bin/get-cfr.cgi?TITLE=34&PART=682&SECTION=603&TYPE=TEXT) |
|                                                                       |
| -   Determine the method that exit counseling is conducted with each  |
|     student borrower (i.e. in person, audiovisual presentation or     |
|     interactive electronic means). Procedures must ensure the initial |
|     counseling is completed shortly before the student borrower       |
|     ceases at least half-time study at the school. Note: GRAD PLUS    |
|     exit requirement -- If a school is conducting exit counseling for |
|     a borrower who has also received a Stafford loan, GRAD PLUS       |
|     information must be included in the exit counseling.              |
|                                                                       |
| -   Procedures to ensure staff member with expertise in the Title IV  |
|     programs to be reasonable available shortly after the counseling  |
|     to answer questions.                                              |
|                                                                       |
| -   Include procedures to ensure borrowers enrolled in correspondence |
|     programs or study abroad programs to provide written counseling   |
|     materials by mail within 30 days after the student borrower       |
|     completes the program.                                            |
|                                                                       |
| -   Include procedures for student borrowers who withdraw from school |
|     without the school's prior knowledge or who fail to complete an   |
|     exit counseling session as required to show that exit counseling  |
|     is provided through either interactive electronic means or by     |
|     mailing written counseling materials to the student borrower at   |
|     the student borrower's last know address within 30 days after     |
|     learning that the student borrower has withdrawn from school or   |
|     failed to complete the exit counseling as required.               |
|                                                                       |
| -   Develop counseling materials to include all of the elements       |
|     outlined in                                                       |
|     [*682.604(g)(2)*](http://frwebgate.access.                        |
| gpo.gov/cgi-bin/get-cfr.cgi?TITLE=34&PART=682&SECTION=604&TYPE=TEXT). |
|                                                                       |
| -   If the exit counseling is conducted through interactive           |
|     electronic means, procedures must include reasonable steps to     |
|     ensure that each student borrower receives the counseling         |
|     materials, and participates in and completes the exit counseling. |
|                                                                       |
| -   Maintain documentation of initial counseling in each student's    |
|     file.                                                             |
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| **Refund Policy:**                                                    |
|                                                                       |
| 1.  Establish a fair and equitable refund policy that addresses a     |
|     refund to the lender or return of Title IV HEA program funds from |
|     the school that is allocable to the loan upon the borrower's      |
|     withdrawal as outlined in                                         |
|     [682.607](http://frwebgate.access.                                |
| gpo.gov/cgi-bin/get-cfr.cgi?TITLE=34&PART=682&SECTION=607&TYPE=TEXT). |
|                                                                       |
| **Administrative and Fiscal Requirements:**                           |
|                                                                       |
| 1.  Establish and maintain proper administrative and fiscal           |
|     procedures and all necessary records as outlined in               |
|     [682.610](http://frwebgate.access.                                |
| gpo.gov/cgi-bin/get-cfr.cgi?TITLE=34&PART=682&SECTION=610&TYPE=TEXT). |
|                                                                       |
| ```{=html}                                                            |
| <!-- -->                                                              |
| ```                                                                   |
| 7.  Follow record retention requirements as outline in                |
|     [668.24](http://frwebgate.access                                  |
| .gpo.gov/cgi-bin/get-cfr.cgi?TITLE=34&PART=668&SECTION=24&TYPE=TEXT). |
|                                                                       |
| 8.  A process to complete and return a Student Status confirmation    |
|     report within 30 days of receipt to the Secretary or the guaranty |
|     agency as appropriate.                                            |
|                                                                       |
| You may want to consider completing the [FFEL/Direct Loan File        |
| Review](http://www.i                                                  |
| fap.ed.gov/qadocs/policiesandprocedures/ffeldirectloanfilereview.doc) |
| Activity to ensure compliance on an individual student level.         |
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| Description of Policy and Procedure:                                  |
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| Offices that need to be involved:                                     |
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| **Lead Persons to Coordinate Policy and Procedure:**                  |
|                                                                       |
| Name: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Name:          |
| \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_                      |
|                                                                       |
| Title: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Title:    |
| \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_                    |
|                                                                       |
| Phone Number: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Phone Number:        |
| \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_                                      |
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| Start Date (mm/dd/yy):                                                |
|                                                                       |
| Anticipated Completion Date:                                          |
|                                                                       |
| Actual Completion Date:                                               |
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| Did you review and test the procedure for accuracy?                   |
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| Was the policies and procedures manual updated to reflect appropriate |
| changes? Yes or No                                                    |
|                                                                       |
| 1.  If Yes, what section was updated?                                 |
|                                                                       |
| 2.  Enter the date that the Policies and Procedures Manual was        |
|     updated to reflect these changes:                                 |
|                                                                       |
| 3.  Were staff members properly trained about new procedures? Yes or  |
|     No                                                                |
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| *We recommend that your school annually review your policies and      |
| procedures and revise accordingly. Remember, you must consistently    |
| follow all policies and procedures developed\                         |
| by your school.*                                                      |
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