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30-Day Delayed Disbursement/Multiple Disbursement Letter
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(Letterhead)

(Date)

The Honorable (full name) U. S. Senate Washington, D. C. 20510

or

The Honorable (full name) U. S. House of Representatives Washington, D. C. 20515

Re: Sunset on 30-day delayed disbursement/multiple disbursements HEA 428G(a)(3) and (b) (1)

Dear Congressman (last name):  or  Dear Senator (last name):

(Name of Institution) is requesting your expeditious support in renewing two provisions which are due to sunset on September 30, 2002.

The first expiring provision, Section 428G(a)(3), allows schools with cohort default rates below 10 percent to disburse a loan in a single installment for any period of enrollment that is not more than one semester, one trimester, one quarter or 4 months. The second expiring provision, Section 428G(b)(1), allows schools with cohort default rates below 10 percent to waive the requirement that first-year, first-time borrowers loan proceeds be withheld for 30-days. Each provision was part of the 1998 HEA reauthorization law (H. R. 6).

There is no evidence that these policies either significantly reduce indebtedness or reduce defaults but are a costly burden for schools to monitor. Additionally, these policies may actually cause more students to experience financial problems or withdraw because they do not receive loan monies when needed to purchase textbooks or meet other educational expenses. Results from schools that are participating in the experimental site initiative waiving these rules have shown that they have little or no positive effect on students or the federal interest and should be eliminated.

We ask that you seriously and expeditiously consider support of the extension of these provisions, either by attaching it to an existing piece of legislation or by possibly attaching it to an emergency appropriations bill. We desperately need for this to take place prior to June 30 in order for our institutions to be adequately prepared for the fall semester.

Thank you for your continued support of financial aid issues in Mississippi.

Sincerely,

(Official of the Institution)