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(CB-95-19) (CB-95-19) This letter accompanies the 1993-94 Federal Perkins Loan Service Cancellations Payment Letter

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

Last Modified: 07/31/1995