Bulletin ID
DLB - 97 - 34
| PublicationDate: 9/1/97 BulletinID: DLB - 97 - 34 September 1997 DLB-97-34 Dear Colleague: In our effort to provide the best level of service to you, the Department of Education and EDS have made the following modifications in processing at the Loan Origination Center in Montgomery. DISBURSEMENT ENHANCEMENT NOW AVAILABLE AT THE LOC: Effective 8/19/97, the Loan Origination Center (LOC) is able to process subsequent disbursements dated prior to canceled disbursements submitted for a loan. The date of a canceled loan disbursement no longer affects the LOC's ability to process subsequent disbursements. For example, if a school has submitted disbursement #1, dated 7/1/97, and later discovers that the loan was disbursed to the student BEFORE 7/1/97, the school should cancel disbursement #1 and submit disbursement #2 with the correct date of 6/26/97. This second disbursement will now be processed successfully by the LOC. If your school has prior disbursement rejects that the LOC was unable to process for this reason, they may now be resubmitted to the LOC for processing. All non-canceled disbursements must be recorded in date sequential order. TEMPORARY DELAY IN MAILING CREDIT DECISION LETTERS TO PLUS APPLICANTS: Schools have reported that they are unable to assist Direct PLUS applicants who contact them for help because the applicants are receiving credit decision letters prior to the school receiving the electronic Direct PLUS acknowledgments. In response to these school concerns, the Department has instructed the LOC to implement a 7 business day delay in mailing Direct PLUS credit decision letters to the applicant. This mailing delay is a temporary measure that has been implemented to allow schools to successfully import the Direct PLUS loan acknowledgment file and have the credit decision results on hand when Direct PLUS applicants call for guidance. Once the LOC is sure that all paper credit decision letters can be mailed on the same day that the electronic acknowledgment is sent to the school, this temporary mailing process will be discontinued. We will notify schools when this change occurs. I trust these modifications will allow for more efficient processing. Thank you for your ongoing support of the Direct Loan program. Sincerely, Joe L. McCormick Chair Direct Loan Task Force |