Bulletin ID
DLB - 97 - 30
| PublicationDate: 8/1/97 BulletinID: DLB - 97 - 30 August 1997 DLB-97-30 SUBJECT: Differentiating Year 3 and Year 4 Drawdowns and Returns of Excess Cash Dear Colleague: All Direct Loan drawdowns you receive from EDPMS subsequent to June 30, 1997, are recorded at the Loan Origination Center (LOC) as cash receipts for the 1997-98 program year (Year 4). Drawdowns you received from EDPMS prior to July 1, 1997, were recorded at the LOC as cash receipts for the 1996-97 program year (Year 3). If you received a drawdown intended for Year 4 prior to July 1, 1997, the LOC will need to be informed so that the cash receipt can be switched to Year 4 in their reconciliation system. Likewise, the LOC must be notified of any Year 3 drawdowns you received after July 1, 1997, so they can switch the cash receipt to Year 3. The notification to the LOC to move cash receipts from one program year to another should be done via fax. A form is attached to this bulletin to assist you in submitting to the LOC the information needed to make sure that cash receipts are posted to the correct program year. If you choose not to use the attached form, it is important that the exact information requested on the form is included in the correspondence sent to the LOC. This form or other correspondence should be faxed to the LOC, to the attention of the Reconciliation Department, at 1-800-557-7396. As a reminder, drawdowns should be year specific. If drawing down for both Years 3 and 4, two separate drawdown requests need to be made. This is necessary in order to facilitate the computation of the proper cash balances by program years. Funds returned as excess cash will also need to be identified to a specific program year. Attached is a form that should be faxed to the LOC, to the attention of the Reconciliation Department, at 1-800-557-7396, for posting of returns of excess cash to the correct program year. Again, use of this form is optional, but any correspondence faxed to the LOC will need to contain the same information as requested on the form. Thank you for your continued support of the Direct Loan Program. Sincerely, Joe L. McCormick Chair Direct Loan Task Force Attachment |