| DCLPublicationDate: 7/1/99 DCLID: CB-99-14 AwardYear: Summary: Safeguard Activity Report for the Federal Perkins Loan Program JULY 1999 CB-99-14 SUBJECT: Safeguard Activity Report for the Federal Perkins Loan Program PUBLICATION REFERENCE: Chapter 6 of the 1998-99 Federal Student Financial Aid Handbook; Federal Perkins Loan Program regulations, 34 CFR, Part 674. Dear Partner: This letter answers the following questions about the Safeguard Activity Report: What time period is covered by the report? What am I required to do? Can my report be prepared by a servicer? What is the deadline for submission? Where do I send the report? How should I send the report? Who should I call if I have any questions about this letter? What time period is covered by the report? The Safeguard Activity Report should be completed for the period July 1, 1998 through June 30, 1999. What am I required to do? Institutions are no longer required to use the Internal Revenue Service/Department of Education (IRS/ED) Skiptracing Service for carrying out the due diligence provisions of the Federal Perkins Loan Program. Nonetheless, the Department of Education strongly encourages institutions to continue using this service. The IRS/ED Skiptracing Service is one of the most powerful tools available to institutions for locating defaulted borrowers and is provided to institutions free of charge. 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 Campus Based 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 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 destructions. 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. Can my report be prepared by a servicer? 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. What is the deadline for submission? 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, 1999. Where do I send the report? Mail report to the following address: FFELP/Perkins IRS Skiptracing Service P.O. Box 4132 Greenville, Texas 75403-4132 How should I send the report? 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. Who should I call if I have a question about this letter?
Sincerely, Greg Woods Chief Operating Officer Student Financial Assistance Attachment |