Lenders Eligible for Recalculated Special Allowance Payments

The Department of Education (ED) recently issued a Dear Colleague Letter (DCL), dated March, 1998, concerning the United States Court of Appeals decision in the case Bank of America N.T. v. Riley, which allows lenders to recalculate special allowance billings for all or part of the period from July 23, 1992 to December 31, 1994. The recalculation may result in additional special allowance payments being owed to lenders by ED.

A lender that believes that it is owed additional special allowance payments for the retroactive period should submit an ED Form 799. The DCL contains a list of instructions that lenders must comply with when completing the form. Any questions concerning the instructions should be directed to Angela Baker at (202) 401-3255. Lenders must apply for the special allowance payments within 90 days of the date of the DCL.

Any questions regarding this letter can be directed to the UHEAA Policy and Training Department at (801) 321-7166.

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