The purposes of this handbook are to help participating foreign schools achieve manageable, student-friendly administration of the U.S. Federal Family Education Loan (FFEL) Program and to ensure that schools are aware of the legal requirements that pertain to foreign schools participating in the FFEL Program. The FFEL is the only U.S. student financial aid program in which foreign schools participate. The program offers loans for both students and parents. Loans from private lenders are guaranteed by guaranty agencies and reinsured by the U.S. government. To participate, a foreign school must be certified as an eligible institution, main administrative capacity and financial responsibility, and meet requirements toward students and lenders. The chapters of the handbook are: (1) Federal Family Education Loan (FFEL) Program Overview; (2) Institutional Eligibility and Participation; (3) Establishing Borrower Eligibility; (4) FFEL Program Procedures; (5) Return of Title IV Funds. (Contains six appendixes, a glossary, a list of acronyms, a summary of regulations, and lists of sources of help and further information). (SLD)