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 |