NELA^® is offering hands-on service for schools making the transition to the Federal Direct Loan Program from the Federal Family Education Loan Program.

NELA is providing a range of assistance with NELA-guaranteed loans — and working to ensure that schools have the greatest flexibility in supporting FFELP loans to students and their parents, and in transitioning to Direct Loans.

The Health Care and Education Reconciliation Act of 2010 prohibits first disbursements of FFELP loans after June 30, 2010.

The last day on which NELA will guarantee new FFELP Stafford, PLUS and Consolidation loans will be June 30, 2010. Issuing guarantees through the last date that FFELP loans may be disbursed provides schools with the most flexibility in making loans available to students and their parents. NELA encourages schools to work with their lenders to ensure their FFELP loans meet each lender’s final disbursement requirements, and to keep key points in mind as they certify FFELP loans through June 30.

To further assist schools, NELA has implemented new system edits to prevent loans from guaranteeing that have first disbursement dates after June 30.

Access to reports

NELA is contacting by phone school-customers that have student- or parent-borrowers whose FFELP loans have first disbursement dates after June 30, to discuss options for handling those loans. To any school requesting them, following these calls, NELA is sharing reports about those loans that provide information including borrower names and first disbursement dates. Schools may request to receive the reports weekly, or less frequently, depending on their own needs.

For additional information about the reports, call NELA toll-free at 800.562.3001, or send e-mail to account-management@nelaservices.net to NELA.

Loan disbursement and cancellation

Schools wishing to adjust disbursement dates of NELA-guaranteed loans for summer terms, to meet the guidelines of the HCERA, should work directly with their lenders. For NELA-guaranteed loans that cannot be disbursed in a time frame that meets the parameters of the new law, NELA will accommodate the wishes of individual schools, canceling those loans at that school’s request.

For help from NELA in facilitating work with lenders on disbursement or cancellation issues, schools should call NELA at 800.562.3001, or send an message account-management@nelaservices.net.

The assistance with NELA-guaranteed loans is part of NELA’s ongoing initiative to help schools as they make the conversion to Direct Loans — and beyond.  NELA’s Web site provides details about additional resources available to assist schools in the transition.

NELA will continue to advise school-customers of plans to assist as schools transition to Direct Loans.