Bulletin ID
DLB - 96 - 13
| PublicationDate: 8/1/96 BulletinID: DLB - 96 - 13 August 1996 DLB-96-13 Returning Direct Loan Funds to the U.S. Department of Education Dear Colleague: Although the Department of Education strongly encourages schools to return Direct Loan funds by either ACH or FEDWIRE, it has come to our attention that some schools returning funds by PAPER CHECKS seem to be confused about how to report and transmit excess cash and loan payments to the Direct Loan Servicing Center. To address this issue, the Direct Loan Task Force developed the enclosed Excess Cash/Payment Transmittal. This Transmittal may be used by those schools submitting PAPER CHECKS to return Direct Loan funds to the Servicing Center and should NOT be used by schools returning cash via ACH or FEDWIRE. Although we are encouraging schools to use this form, it is NOT required. Please feel free to make copies of the Transmittal or to modify it to best suit your school's needs. Please review both sides of the Transmittal. The instructions on the back assist schools in determining when funds should be returned as excess cash (WITHIN 120 DAYS from the date of disbursement) OR as a payment back to a student's loan account (AFTER 120 DAYS from the date of disbursement.) Schools using the Transmittal would send a new one each time cash is returned. If you have any questions, please call your School Relations representative at (800) 848-0978. Sincerely, Diane Voigt, Chair Direct Loan Task Force |