Summary: Notice Regarding Incorrect Loan Balances in ISIRs and SARs
Author: ODAS - Office of the Deputy Assistant Secretary - SFA
June 7, 1996
Notice Regarding Incorrect Loan Balances in ISIRs and SARs
We wish to inform you of an issue that has resulted in incorrect information
regarding loan balances in some ISIRs and SARs. Since April 2, the
Massachusetts guarantor, American Student Assistance (ASA), has submitted
to NSLDS for some of its loans erroneous outstanding principal balances that are
overstated, in cases we have seen, by $10,000. ASA shared this information
with the Department June 4.
On June 6, the Department stopped the flow of these inflated balances to the
Central Processing System for reporting on SARs and ISIRs. Beginning that day,
and until ED receives ASA's update correcting this loan data, SARs and ISIRs
will report ASA loan information as before with one exception: principal will be
reported as zero.
We anticipate that ASA will provide the Department with correct updates by
mid-June. If ED receives this information then, we will correct the NSLDS
database and resume full reporting of ASA loan balances in SARs and ISIRs
within 3 to 5 days.
Meanwhile, the Department and ASA will work together to identify those students
who received incorrect reports so that we can provide you with correct ISIRs and
SARs as soon as possible. We will post another notice to the BBS to inform you
of the date that you can expect to see these new records.
As always, we appreciate your cooperation and understanding.