Maintained for Historical Purposes

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

(CB-96-15) (CB-96-15) Safeguard Activity Report for the Federal Perkins Loan Program

DCLPublicationDate: 7/1/96
DCLID: CB-96-15
AwardYear:
Summary: Safeguard Activity Report for the Federal Perkins Loan Program



JULY 1996

CB-96-15 (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, 1995 through June 30, 1996, 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 the
outcome of your internal inspection, disposal of data, and any
changes from 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:


Page 2


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 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 or the
contact person has changed from the one designated in your
Report.

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.


Page 3


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, 1996, 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 and UPS will not be able to deliver
to the above post office box.

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

Sincerely yours,


Elizabeth M. Hicks
Deputy Assistant Secretary for
Student Financial Assistance Programs

Last Modified: 06/30/1996