DCLPublicationDate: 8/1/95 DCLID: CB-95-19 AwardYear: Summary: This letter accompanies the 1993-94 Federal Perkins Loan Service Cancellations Payment Letter August 1995 CB-95-19(LD) SUMMARY: This letter accompanies the 1993-94 Federal Perkins Loan Service Cancellations Payment Letter REFERENCE: The Federal Student Financial Aid Handbook, Chapter 6 Dear Financial Aid Administrator: As you will note in reviewing the enclosed Federal Perkins Loan Program Service Cancellations (Teaching/Military/Volunteer/Law Enforcement/Child/Family/Early Intervention/Nurse/Medical Technician) reimbursement letter, a negative amount appears under one of the two reimbursement categories. This negative amount indicates that a prior year reimbursement to your institution was in part or totally incorrect as a result of erroneous information contained in a Fiscal Operations Report submitted previously by your institution, or in our computerized data base at the time of the reimbursement. The balance of the overpayment (indicated by the negative amount), which has not been absorbed by increased cancellations reported as of June 30, 1994, has been deducted from the total reimbursement due as of the June 30, 1994 reporting period, and the adjusted balance due will be electronically transferred to you. In order to correct the erroneous prior year reimbursement in your records now, as well as to update our records, your institution will need to take the following actions: 1. If the overpayment occurred under the first reimbursement category (Defense Loans), you must now deposit into the Loan Fund from institutional funds an amount equal to the overpayment, so that the loan fund receives the full amount of its Perkins/Direct Loan payment. Such funds are then available to make loans to students. This deposit must be shown as an increase in the cumulative amount of Perkins/Direct Loan reimbursement to be reported in Part III, Section A, Line 24, of the Fiscal Operations Report for the current award period which ends June 30, 1996. 2. If the overpayment occurred under the second reimbursement category (Perkins/Direct Loans), you may withdraw from the Loan Fund an amount equal to the overpayment in order that the institution may receive the full reimbursement due on its share of Defense Loan cancellations. This withdrawal will result in a decrease in cash-on-hand (line 1) and in the cumulative amount of Perkins/Direct Loan reimbursement to be reported in the Fiscal Operations Report for the current award period which ends June 30, 1996. Page 2 - Dear Financial Aid Administrator: In either instance, please notify this office within 30 days that appropriate action has been completed in order that we may adjust our records to agree with those of your institution. If you have any questions concerning these procedures, please telephone Joseph Morris of my staff at (202) 708-8745. Sincerely, Michele L. Selvage, Director Institutional Financial Management Division Accounting and Financial Management Service |