Publication Date: February 12, 2003
Author: General Manager: FSA Schools Channel
Notification of Stop Payment Due to Unprocessed Deobligations
Posted on 02-12-2003
TO: Financial Aid Community
FROM: Kay Jacks, General Manager, School Channel, FSA
SUBJECT: Notification of Stop Payment Due to Unprocessed Deobligations
Beginning February 17, the Office of the Chief Financial Officer of the Department of Education will instruct staff at the Grant Administration and Payment System (GAPS) to place a stop payment on funding in the Pell Grant and Campus Based Programs. This stop pay action will affect approximately 200 schools and school systems offices that have not taken actions necessary to resolve negative balances (also known as Unprocessed Deobligations) for the award years 1997-98 through 2000-2001 for the Pell program and/or 1997-1998- 1999-2000 for Campus Based programs.
The stop payment action will halt all payment requests for all awards the school has with the Department except Direct Loans. These will include Pell and Campus Based awards for all years, including the current 2002-2003 year. Business Officers at all schools and system offices should review the status of Pell and Campus Based programs and take immediate action to resolve negative balances or risk cessation of funding. The letter that describes the issue and how to resolve the matter can be found at http://ifap.ed.gov/cod/0731GAPSnegbal.html.
The COD system will continue to accept 2002-2003 origination and disbursement records for the Pell program but no payments will be sent to schools affected by the stop payment action.