Publication Date: June 2001

DCL ID: GEN-01-08

Summary: Sample Default Management Plan

June 2001

GEN-01-08

SUBJECT: Sample Default Management Plan.

Dear Partner:

This letter provides a sample default management plan that replaces the guidance provided in Appendix D to 34 CFR 668, "Default Reduction Measures." Appendix D will be removed from 34 CFR 668 on July 1, 2001. We stated the reason for this removal in a Notice of Proposed Rulemaking, published on August 2, 2000 (65 FR 47590): "The information that Appendix D to part 668 contains is outdated and is no longer used for the primary purposes for which it was developed. The information can be updated more efficiently outside the regulatory process."

We have developed a "Sample Default Management Plan" (Attachment A) to replace Appendix D and to provide updated information about default reduction measures. If a school is required to use a default management plan, under 34 CFR 668.14(b)(15), because it is participating in the FFEL or Direct Loan Program for the first time or it has undergone a change of ownership, the school's implementation of the attached sample plan will satisfy those requirements. In addition, we recommend that other schools consider implementing some or all of the measures described in the sample plan.

If you need technical assistance in implementing a default management plan, or if you have comments or suggestions about the sample plan, please contact your Case Management Team (see Attachment B). Comments and suggestions will be considered during any future update of the sample default management plan.

Sincerely,

______________________________
Kay Jacks, General Manager
Schools

Attachments:

Attachment A: Sample Default Management Plan

Attachment B: Case Management Team Phone Numbers