Archive Voluntary Flexible Agreement

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Federal Student Aid has completed final negotiations with the guaranty agencies selected to submit proposals under the U.S. Department of Education's Voluntary Flexible Agreement (VFA) initiative. The last three agreements have been signed by Secretary of Education Rod Paige and are presently being implemented within the agencies and the FSA. Posted below, for your information, the agencies that are implementing VFAs are:

• American Student Assistance
• California Student Aid Commission
• Great Lakes Higher Education Guaranty Corporation
• Texas Guaranteed Student Loan Corporation

A VFA incorporates and modifies the guaranty agreements under section 428 (b) and (c) of the HEA, and is intended to enhance program integrity, increase cost efficiencies, and improve the availability and delivery of student financial aid. Each VFA will be developed by the Secretary, in consultation with the agency, on a case-by-case basis, and in accordance with the HEA. Additional Information on VFA participants can be found on one of the links provided below:

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Voluntary Flexible Agreements (VFA) Notice [PDF - 2 pages]

Interim Report to Congress, January 2002 [Word - 34 pages]

Final Report to Congress, June 2003 [Word - 40 pages]

GA and Lender Questions [Word - 2 pages]

Guaranty agencies and guaranty agency servicers designated for exceptional performance shall receive the applicable reinsurance rate under section 428(c)(1) of the Higher Education Act on all claims submitted for payments during their period of designation.
Applications from guaranty agencies and their servicers will be accepted upon completion of the Exceptional Performer Guarantor Audit Guide.

American Student Assistance Final Agreement [PDF - 9 pages]

California Student Aid Commission Final Agreement [PDF - 7 pages]

Great Lakes Final Agreement [PDF - 10 pages]

Texas Guaranteed Student Loan Corporation Final Agreement [PDF - 8 pages]

VFA GA Users Guide: Financial Partners Addendum [Word - 29 pages]

VFA GA Users Guide: ASA [PDF - 35 pages]

VFA GA Users Guide: CSAC [PDF - 31 pages]

VFA GA Users Guide: Great Lakes [PDF - 37 pages]

VFA GA Users Guide: Texas [PDF - 39 pages]

New Voluntary Flexible Agreement Proposal Received for Evaluation (9/29/04)
American Education Services/Pennsylvania Higher Education Assistance Agency (AES/PHEAA) has submitted a VFA proposal to the Department of Education for evaluation.  The proposal will be evaluated on it's contribution to the FFEL program and it's cost neutrality to the Secretary.  An industry comment period will follow the evaluation and negotiation phase of the process and the agreement will be posted for review at that time.

New Voluntary Flexible Agreement Proposal Received for Evaluation (9/03/04)
Educational Credit Management Corporation (ECMC) has submitted a VFA proposal to the Department of Education for evaluation. The proposal will be evaluated on it’s contributions to the FFEL program and it’s cost neutrality to the Secretary. An industry comment period will follow the evaluation and negotiation phase of the process and the agreement will be posted for the review at that time. 
 
New Voluntary Flexible Agreement Proposal Received for Evaluation (7/21/04)
United Student Aid Funds (USA Funds) has submitted a VFA proposal to the Department of Education for evaluation. The proposal will be evaluated on it's contributions to the FFEL program and it's cost neutrality to the Secretary. An industry comment period will follow the evaluation and negotiation phases of the process and the agreement will be posted for review at that time.
 
New Voluntary Flexible Agreement Proposal Received for Evaluation (6/23/04)
The National Student Loan Program (NSLP) and the Education Assistance Corporation (EAC) have submitted a joint VFA proposal to the Department of Education for evaluation. The proposal will be evaluated on it's contributions to the FFEL program and it's cost neutrality to the Secretary. An industry comment period will follow the evaluation and negotiation phases of the process.

The Colorado Student Loan Program (CSLP) has applied for a voluntary flexible agreement with the Department of Education.  Financial Partner Services and CSLP have worked together to develop the draft agreement which is being posted here for industry comments.  Comments or questions regarding the agreement should be forwarded to Michael Sutphin, State Agency Liaison Officer, at mike.sutphin@ed.gov

Colorado Student Loan Program Draft Voluntary Flexible Agreement (4/26/04)

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