Maintained for Historical Purposes

This resource is being maintained for historical purposes only and is not currently applicable.

(CB-95-10) (CB-95-10) Safeguard Activity Report for the Federal Perkins Loan Program

DCLPublicationDate: 6/1/95
DCLID: CB-95-10
AwardYear:
Summary: Safeguard Activity Report for the Federal Perkins Loan Program


June 1995
CB-95-10 (LD)

SUBJECT: Safeguard Activity Report for the Federal Perkins Loan
Program

PUBLICATION REFERENCE: Chapter 6 of the 1995-96 Federal
Student Financial Aid Handbook; Federal Perkins Loan Program
Regulations, 34 CFR Part 674.

Dear Colleague:

This letter concerns the submission of the annual Safeguard
Activity Report, for the period July 1, 1994, through June 30,
1995, for institutions that participate in the Federal Perkins
Loan Program.

Although, as a result of the Higher Education Amendments of 1992,
institutions are no longer required to use the IRS/ED Skiptracing
Service for carrying out the due diligence provisions of the
Federal Perkins Loan Program, the Department of Education
strongly encourages institutions to continue to use this service.
The IRS/ED Skiptracing Service is one of the most powerful tools
available to institutions for locating defaulted borrowers.

In order to maintain eligibility to participate in the IRS/ED
Skiptracing Service, each participating institution must submit
the annual Safeguard Activity Report in accordance with IRS
Publication 1075. Failure to submit the Report will result in
loss of eligibility to participate in this service. The Report
must include information about your internal inspection, disposal
of data, and any changes to your previous Report. It must be
recorded on the institution's letterhead paper.

The processing procedures require that two zeros be placed in
front of the institution's four digit serial number assigned by
the Department of Education to all Federal Perkins Loan Program
participants. The six digit serial number, e.g., 001234, must be
entered on the Report, and the Report must be prepared as
follows:

1. Internal Inspection

Describe the results of the safeguard inspection. It
must include the offices where skiptrace data will be
maintained and the specific items contained in the
skiptrace file(s). More specifically, review your
procedures report to assure that all set standards
outlined in your original Report are being maintained.

Please note that this process does not involve Federal
Income Tax forms. This process involves the .
safeguarding of the names and addresses of defaulted .
NDSL/Federal Perkins Loan borrowers.

2. Disposal of Data

For each separate category of data (i.e., paper file,
tape, or keypunch card) report on the method used to
destroy these materials and the dates of destruction.

3. Changes to Safeguard Procedures Report

Describe in detail any significant changes in the
original Safeguard Procedures Report, or authorized
persons who have access to the names and addresses of
defaulted NDSL/Federal Perkins Loan borrowers.
Describe any changes or enhancements to physical and
computer security measures utilized to safeguard name
and address information.

4. Responsible Official

If there has been a change, provide the name, title,
and telephone number of the official who has FUNCTIONAL
RESPONSIBILITY for implementing the Safeguard
Procedures. You should include the name of a contact
person if the day-to-day coordination of the program is
performed by someone other than the named official and
the contact person has changed from the one designated
in your Report.

5. The Report may be prepared by a servicer, but it must
be prepared according to the above standards and signed
by an authorized official of the institution.

To ensure the institution's continued use of the IRS/ED
Skiptracing Service, a signed copy of your Report must be
submitted by your institution postmarked no later than
August 31, 1995, and sent to the following address:

U.S. Department of Education
GSL/Perkins IRS Skiptracing Service
P.O. Box 4132
Greenville, Texas 75403-4132

It is important to note that you may send your Report and your
future requests for service only via the U.S. Postal Service.
Commercial carriers such as Federal Express, UPS, etc., will not
be able to deliver to the above post office box.

If this Report is to be prepared by another office of your
institution, please see that this letter is promptly delivered to
that office. If you need additional guidance, you may contact
the Campus-Based Programs Systems Division, on (202) 708-6726.

Sincerely yours,



Leo Kornfeld
Senior Advisor to the Secretary

Last Modified: 05/31/1995