To assist in making funds available for student higher education loans and to keep their interest rates as low as possible, the Department of Education compensates participating lending institutions using a combination of interest subsidies and special allowance payments. Lenders use ED Form 799, Lender's Interest and Special Allowance Request and Report, to obtain payments under the federal loan programs. This workbook was designed to help users learn how to prepare the form without assistance. It contains instructions, examples, practice exercises, and self-tests so users can check their progress. The workbook was not intended to explain all the responsibilities of lenders participating in the Federal Family Education Loan Program. Additional information is available from guaranty agencies, ED Regional Offices, and related publications, listed in appendices to the document. The workbook includes one unit on Federal Family Education Loan Programs' quarterly reports and five units on ED Form 799 which cover: identification and certification, the loan origination fee, interest benefits, special allowance, and changes in loan principal and portfolio analysis. The final chapter concerns quality assurance in student loan reporting. Appendices list additional sources of information, guaranty agencies, references, and frequently asked questions. (MAH)