The last date that NELA will guarantee new Federal Stafford, PLUS and Consolidation loans is June 30, 2010.

Schools should keep the following issues in mind when certifying FFELP loans through June 30:

• Many lenders have established their own specific cutoff dates related to issuing FFELP loans. If you are unsure of cutoff dates established by your lenders, contact those lenders as soon as possible. The National Council of Higher Education Loan Programs is compiling a list of cutoff dates for processing FFELP loans, as reported by entities in the FFELP community. NELA’s Web site’s list of Direct Loan transition resources includes NCHELP’s list.
• Some lenders will make first disbursements of new loans only if those loans meet the criterion that they are fully disbursed by Sept. 30, 2010, as established in the Ensuring Continued Access to Student Loans Act, or ECASLA.
• Consider the operational aspects of the disbursement processes you have established with your lenders and disbursing agents, and confirm your own operational strategies to ensure that loans can be first disbursed by the June 30 cutoff date. Verify the last date on which disbursements can be made based on your existing disbursement schedule (such as weekly, daily or twice daily).
• If you have any loans guaranteed with first disbursements scheduled after June 30, and the first disbursement can be adjusted — in compliance with regulatory requirements —contact your lender to request the disbursement date change.
  
  If you have loans with first disbursements that cannot be changed to a time frame that meets the guidelines of the new law, NELA will cancel those loans at your school’s request. As part of its efforts to assist school-customers in their transition to the Federal Direct Loan Program, NELA is contacting schools with loans that have first disbursement dates that fall after June 30 to discuss options for handling those loans.
  
• Loan certifications will continue to run through NELA’s guarantee system edits. Your school will need to resolve any certifications that are flagged by those edits in sufficient time to ensure guarantee and disbursement by June 30.

For more information about the HCERA or NELA’s policy, send an e-mail to NELA’s policy staff at  askpolicy@nela.net.