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(95-G-275) Interim Reporting Instructions For The Guaranty Agency Quarterly/Annual Report (ED Form 1130)

DCLPublicationDate: 3/1/95
DCLID: 95-G-275
AwardYear:
Summary: Interim Reporting Instructions For The Guaranty Agency Quarterly/Annual Report (ED Form 1130)


March 1995
95-G-275


SUBJECT: Interim Reporting Instructions For The Guaranty Agency
Quarterly/Annual Report (ED Form 1130)

Dear Guaranty Agency Director:

This bulletin provides interim reporting instructions to guaranty
agencies on the following issues:

(1) closed school and false certification Federal PLUS and
Federal Consolidation loan discharges; and

(2) reporting on loans first disbursed on or after October 1,
1993.

As a result of the Federal Family Education Loan Program
regulations, published on April 29, 1994, Federal PLUS and
Consolidation loans may be discharged for closed school and false
certification claims.

The current version of the Guaranty Agency Quarterly/Annual
Report (Form 1130), dated May 1993, does not allow these types of
claims to be reported. Until the ED Form 1130 is revised, the
Department of Education (ED) is providing the following interim
instructions:

ED Form 1130, Part A, Guarantee Activity. Please note that
the current form contains XXX's in these line items. The
amounts will not appear on the Quarterly Activity Report,
but ED will obtain the information from the original ED Form
1130. The guaranty agency should report the requested
information on the following line items:

Line Item A-21, Closed School Claims Paid - Amount, Column
B, Federal PLUS, Column D, Federal Consolidation;

Line Item A-22, Closed School Claims Paid - Number, Column
B, Federal PLUS, Column D, Federal Consolidation;

Line Item A-23, False Certification Claims Paid - Amount,
Column B, Federal PLUS, Column D Federal Consolidation; and

Line Item A-24, False Certification Claims Paid - Number,
Column B, Federal PLUS, Column D Federal Consolidation.

ED Form 1130, Part B, Paid Claims Portfolio. The current
form does not provide reporting for these claim types.
Therefore, guaranty agencies should report Federal PLUS
closed school and false certification paid claims under the
Federal PLUS Section, Line Item B-26, Collection Exclusions.
Federal Consolidation closed school and false certification
paid claims should be reported under the Federal
Consolidation Section, Line Item B-53, Collection
Exclusions.

Reporting on Part B, Paid Claims Portfolio should reflect the
guaranty agency's receivable with the borrower.

Example: On a loan first disbursed on or after October 1, 1993
if the original claim is $1,000.00 and the guaranty
agency paid the lender $980.00, the amount reported
under Column B, Amount Paid, would be $1,000.00.

If you have questions regarding these issues, please contact the
Financial Management Specialist responsible for your agency at
(202) 708-9776.

Sincerely,



Sue May, Chief
Fund Control Branch
Financial Management Division
Federal Family Education Loan Program

Last Modified: 02/28/1995