Bulletin ID
DLB - 97 - 6
| PublicationDate: 2/1/97 BulletinID: DLB - 97 - 6 DLB-97-6 February 1997 Dear Colleague: The U.S. Department of Education provides a Borrower Delinquency Report to assist schools with their default management activities. This Borrower Delinquency Report is sent to schools and lists student borrowers who are in a delinquency status. Recently, the Department has enhanced and refined this report. The report was changed to eliminate unnecessary information. In addition, other pertinent information was added, thereby providing a more useful and comprehensive report. Some of these changes were the result of discussions with Direct Loan school personnel. The revised borrower delinquency reports will be available each month beginning February 1997. These reports will be generated for all schools by the Central Database System (CDS) based on data received from the respective Direct Loan Servicers. Initially, this information will be provided on a printed report and mailed to all schools. It is anticipated that by the summer of 1997, institutions will have the option of obtaining the school's borrower delinquency information via a paper report, an electronic report, or an electronic file. At that time, schools will be able to indicate their preference as to the format of the report and to whom it should be sent. The revised borrower delinquency report will include the following: - Those borrowers that are 31 to 270 days delinquent (listed in thirty day intervals up to 180 days) and have not yet been transferred to the Department's Debt Collection Service (DCS). - Loans that are between 181-270 days are pending transfer to DCS and are technically in default. Schools should give these loans top priority when contacting student borrowers. - In-school consolidation loans that are delinquent. - The number of loans that have defaulted and were transferred to DCS during the month along with a cumulative total. - The Direct Loan Servicer code, name, and phone number for easy reference in identifying the appropriate servicing center for specific borrowers. - Summary pages that reflect loan counts in the various delinquent and default categories. The summary counts may not reconcile to the detail pages because multiple loans are frequently merged and billed as one loan account. In addition, in future releases of these reports, a detailed list of those borrowers who have defaulted and have transferred to DCS will be included for your information. This listing will appear after the 270 day delinquent section of the report. If you have any questions regarding the format of this report, please contact the Direct Loan Task Force at (202) 708-9951. We hope that the changes made to this report will better assist your institution. Thank you for your continued support of the Direct Loan Program. Sincerely, Joe L. McCormick Chair, Direct Loan Task Force |