Bulletin ID
DLB - 97 - 35
| PublicationDate: 9/1/97 BulletinID: DLB - 97 - 35 September 1997 DLB-97-35 Summary: EXTENSION OF THE YEAR 2 (1995-96) PROCESSING DEADLINE FOR THE SUBMISSION OF DIRECT LOAN PROGRAM ELECTRONIC RECORDS AND PROMISSORY NOTES. Dear Colleague: We'd like to thank you for your cooperation during the transition to our new Loan Origination Center (LOC) and for your continued support of the Direct Loan Program. We want to assure you that we are committed to providing schools and students with the best possible services. We are also committed to ensuring the highest level of accountability and program integrity. This bulletin provides updated guidance regarding the deadline for submitting electronic records and promissory notes for the 1995-96 ACADEMIC YEAR (YEAR 2), which will assist you and the Department of Education in providing timely services to borrowers and will promote the accuracy of information contained in our borrower files. On May 5, 1997, we extended the Year 2 processing deadline for the submission of all electronic loan records and promissory notes to the LOC from July 31, 1997, to October 31, 1997 (see Direct Loan Transition Update #21). Subsequently, we determined that since most schools have converted their Direct Loan cash databases to a combined database for Years 2 and 3 (1996-97 academic year), the most expeditious process for closing Year 2 would be to close at the same time as Year 3. THEREFORE, WE ARE EXTENDING THE PROCESSING DEADLINE FOR YEAR 2 TO JULY 31, 1998, WHICH IS THE SAME DEADLINE AS FOR YEAR 3. HOWEVER, WE URGE YOU TO SUBMIT ALL LOAN ORIGINATION RECORDS, PROMISSORY NOTES AND LOAN DETAIL RECORDS FOR YEAR 2 AND YEAR 3 AS QUICKLY AS POSSIBLE. IT IS IMPERATIVE THAT WE RECEIVE ALL YEAR 2 ORIGINATION RECORDS BY SEPTEMBER 30, which is the end of the federal fiscal year. Loan origination records provide the Department with critical information used for budgeting purposes. Further, in previous guidance, we have requested that schools submit all records and promissory notes on a monthly basis. Services to students and parents are greatly enhanced when records and promissory notes are submitted on at least a monthly basis. Shortly, we will be publishing a notice in the Federal Register announcing the extension of the Year 2 processing deadline and establishing the deadline for Year 3 as July 31, 1998. You will be sent a copy of the new notice when it is published. Attached is an outline of items that you can review to ensure that your records are being submitted properly. We hope you will find this information helpful. Please remember, if you have any questions, call your Customer Service Representative at (800) 848-0978. Once again, thank you for your cooperation and your continued support of the Direct Loan Program. Sincerely, Joe L. McCormick Linda L. Paulsen Chair Service Director Direct Loan Task Force Accounting & Financial Management Service Attachment SUBMITTING DIRECT LOAN RECORDS The steps listed below are intended to assist your institution as it closes out the award year and do not necessarily contain ALL of the checks and balances each school should use to make sure all loan information is correct and has been transmitted to the Loan Origination Center. In addition, we recommend that you NOT archive your data until you have made sure all transactions have been processed and completed. A school needs to be able to retrieve any data archived in accordance with record retention requirements. I. Identify any batches without acknowledgments. A. Import all outstanding acknowledgments. B Analyze and correct all rejected records IMMEDIATELY. II. Import, print and review the 30-Day Warning Report. A. CANCEL ANY UNNECESSARY LOANS AND TRANSMIT CHANGE RECORDS. B. Transmit any missing loan origination records, promissory notes, or disbursement records (including adjustments and cancellations) to the Loan Origination Center. III. If you are using EDExpress, print a Pending Disbursement List. If you are using another system, print a report that will identify any Anticipated Disbursements that do not have an associated actual disbursement or cancellation for each disbursement number. This report should include all disbursements for the entire academic year. A . Transmit any missing disbursement records to the Loan Origination Center. B. CANCEL ANY ANTICIPATED DISBURSEMENTS FOR LOANS NOT MADE. IV. Print a cash management report that includes all excess cash, cash receipts, disbursements, adjustments and cancellations. Use this list to reconcile with internal records or use other procedures to make sure all electronic records match internal records. A. Check cash receipts against bank statements and ledgers. B. Check returns of excess cash with bank statements, ledgers, and/or canceled checks. C. Check disbursements, adjustments and cancellations against ledgers or reports. D. Check all cash totals against internal accounting records. E. Correct any errors. F. Make sure all cash records have reconciliation status = A. V. If you are using EDExpress, print a Reconciliation Measurement Tools report. If you are using another system, print a report that would determine records ready for reconciliation but that do not have status flags equal to "A." Determine the reason for any records that do not have status flags equal to "A" and take any actions necessary to correct these records. REMEMBER, ONLY BOOKED LOANS WILL RECONCILE. VI. Transmit a reconciliation file that includes all records for the entire academic year. Use the most recent reconciliation period for the "as of" date. Analyze and correct all unreconciled records. |