Summary: Instruction Correction-Fiscal Operations Report for 2004-2005 and the Application to Participate for 2006-2007

Publication Date: January 17, 2006

Author: General Manager Program Operations Channel, FSA

Summary: Instruction Correction-Fiscal Operations Report for 2004-2005 and the Application to Participate for 2006-2007

Posted on 01-17-2006

The Fiscal Operations Report for 2004-2005 and the Application to Participate for 2006-2007 (FISAP) for the Federal Perkins Loan (Perkins Loan), Federal Supplemental Educational Opportunity Grant (FSEOG), and Federal Work-Study (FWS) programs has been available on the eCampus-Based (eCB) Web site (www.cbfisap.ed.gov) since late July 2005. (The submission deadline for the FISAP was September 30, 2005.) Recently, we became aware of an erroneous instruction for this FISAP and want to notify schools that we have corrected that instruction.

The instruction that we have corrected is for Part III, Section A, field 35 on page 22 of the instructions for the FISAP. Specifically, in the second paragraph of the instruction, the second sentence was inaccurate. We have revised and replaced that sentence in the FISAP instructions available on the eCB Web site under the "FISAP" link and on the IFAP Web site (http://www.ifap.ed.gov/cbpmaterials/0607FISAPFormInst.html). The instruction now reads as follows:

35 Cost of loan principal and interest canceled because of death/disability

Column c. Report the CUMULATIVE loan principal and interest canceled because of death or permanent and total disability.

Effective on July 1, 2002, loans for borrowers claiming discharge due to total and permanent disability must be assigned to the Department of Education. Report information for such assigned loans in field 6, report the principal and interest for those loans in field 37, and report the interest on those loans in field 23. For additional information contact: Disability Discharge Loan Servicing Center, Phone: 1-888-869-4169, E-mail: disability_discharge@acs-inc.com.

NOTE: If the borrowers have made payments on or after the date they became totally and permanently disabled but before their loans were assigned and their loans have received a final discharge by the Department, report in this field any principal and interest amounts refunded to the borrowers due to final discharge for total and permanent disability.

The principal in this field is an offset for field 15 and interest is a partial offset for field 23.

If a school reported a cost of loan principal and interest that was canceled because of death or permanent and total disability, it must review the revised instruction and make any necessary corrections to its FISAP. We regret this inconvenience and appreciate schools' prompt attention to the matter.

For additional information about the instruction or assistance with correcting the FISAP, contact the Campus-Based Call Center at 877/801-7168. Customer service representatives are available Monday through Friday from 8:00 A.M. until 8:00 P.M. (ET). You may also e-mail CBFOB@ed.gov.