In anticipation of the House Education and Labor Committee marking up reconciliation legislation in the near future, NASFAA sent a letter to committee members outlining NASFAA members' concerns about the administration's proposal to eliminate the Federal Family Education Loan Program (FFELP).

"Many of our members have serious concerns about the proposal to abruptly move all institutions into the Direct Loan program," NASFAA President and CEO Dr. Phil Day writes in the letter. "Their primary concern is the potential loss of important early awareness, financial literacy, and debt management services provided through the Federal Family Education Loan (FFEL) program. I'm hoping that you can address some of our concerns during this upcoming legislative process."

The letter encourages Congress to:

• Use any savings from changes to the student loan program to increase Pell and not to create additional aid programs like ACG

• Ensure that current delinquency and default prevention services, early awareness, financial literacy, and financial aid counseling services continue to be provided

• If Congress mandates all schools to switch to Direct Lending, provide the Department with sufficient resources to handle the dramatic increase in loan volume and provide additional time for institutions that need it to make a smooth transition.

Posted 07/02/09 to www.NASFAA.org. Redistribution to non-NASFAA institutions is prohibited. Please submit Web site questions or comments to Web@NASFAA.org.