To assure that your Common Manual remains current, please record this document on your LPM/LPB index, and retain it in Appendix E of your manual.

On January 5, 2000, LOSFA issued an LPB providing modified special allowance code reporting for ED Form 799. The U. S. Department of Education provided the modified codes because recent amendments to the Higher Education Act of 1965 changed the method of calculating special allowance rates for loans first disbursed on or after January 1, 2000. Because the USDE initially needed to have additional time to modify its system, the Department requested that lenders delay the reporting of the loans in Part IV until the quarter ending June 2000. On March 3, 2000, LOSFA issued an LPB to advise you of that delay.

On March 10, 2000, the Department advised us that the new special allowance codes (CA, CB, CC and CD) for new loans first disbursed on or after January 1, 2000, WILL BE ACCEPTED BY THE Department of Education for the reporting period ending March 31, 2000.

The Department explains:

"In response to the many concerns raised by the FFEL lender community over our February 2000 bulletin, we are working to meet the April 1^st date. We apologize for the confusion over the implementation of these new special allowance codes. If you have any questions, please call the Lender Reporting Team at (202) 708-9776 or by e-mail to OSFA_LR@ed.gov."