Summary: Safeguard Activity Report for the Federal Perkins Loan Program
SUBJECT: Safeguard Activity Report for the Federal Perkins Loan
PUBLICATION REFERENCE: Chapter 6 of the 1996-97 Federal
Student Financial Aid Handbook; Federal Perkins Loan Program
regulations, 34 CFR Part 674.
This letter concerns the submission of the annual Safeguard Activity
Report, for the period July 1, 1996, through June 30, 1997, for
institutions that participate in the Federal Perkins Loan Program.
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; however, 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 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 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
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.
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, 1997, and sent to the
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 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, please contact Lloyd Nicholson of the Campus-
Based Programs Systems Division on (202) 708-9201.
Elizabeth M. Hicks
Deputy Assistant Secretary for
Student Financial Assistance Programs