Bulletin ID
DLB - 96 - 11
| PublicationDate: 7/1/96 BulletinID: DLB - 96 - 11 July 1996 DLB-96-11 SUMMARY: Final Payments for Origination Services Dear Colleague: With the passing of the Department of Education's FY 1996 budget, Congress eliminated the provision that allowed the Department of Education to make Payments for Origination Services (POS) to schools. This legislation, signed into law on April 26, 1996, prohibits POS payments for loans originated after that date. The Department will make the final POS payments in September 1996 for all loans originated on or before April 26, 1996. As in the past, Level 1 and Level 2 (Option 2 and Option 1 in 1996-97) schools will receive $10 and $7 per borrower, respectively, on reconciled loans. POS is calculated on a per borrower basis for all loans that have been originated, booked and reconciled. The most recent POS payments were made in May and June for all loans reconciled as of April 26, 1996. The final POS payments, to be made in September, will be for all loans originated on or before April 26 and reconciled as of August 30, 1996. We will be calculating POS for loans that met one of the following criteria on or before April 26, 1996: 1) the origination record was received by the Loan Origination Center; 2) the promissory note was received by the Loan Origination Center; 3) the first disbursement was made. With the new 30-day reporting requirement for submitting Direct Loan records, schools should have already reconciled most loans that were originated on or before April 26, 1996. However, if your school has loan records from this period that have not been reconciled, please submit the reconciliation records immediately. This will ensure the receipt of POS for as many loans as possible. If you have any questions regarding the final POS payments or the reconciling of loan records, please contact the Direct Loan Task Force at 202-708-9951. Thank you for your continued support of the Direct Loan Program. Sincerely, Diane Voigt, Chair Direct Loan Task Force |