Bulletin ID
DLB - 98 - 27
| PublicationDate: 7/1/98 BulletinID: DLB - 98 - 27 July 1998 DLB-98-27 Subject: Additional Information on Closing Out the 1995-96 and 1996-97 Direct Loan Program Years Dear Colleague: The 1995-96 and 1996-97 Direct Loan Program Years will close on July 31, 1998. After July 31, 1998, the Loan Origination Center (LOC) will no longer accept 1995-96 or 1996-97 electronictransactions. Further, the LOC will not accept NEW requests for manual transactions or corrections to 1995-96 or 1996-97 loan records after July 31, 1998. In order to meet the July 31 deadline, you should now be in the final stages of identifying cash and loan records that need to be submitted to the LOC to book 1995-96 and 1996-97 loans. You should be reviewing the most recent 732-LOS file and notifying the LOC of any missing transactions from the 732-LOS or any discrepancies that need manual corrections by the LOC. If you need assistance in identifying records for submission to the LOC or assistance in reviewing 732-LOS files and identifying discrepancies, please contact your regional Client Account Manager. Contact your LOC Customer Service Representative at 800/848-0978 for assistance in resolving processing problems and for guidance in submitting manual transactions and corrections. The July 31, 1998, deadline is a deadline for the schools submission of 1995-96 and 1996-97 electronic loan records as well as for submission of requests for manual transactions and corrections. After July 31, 1998, the Department of Education will ensure that all 1995-96 and 1996-97 loans have booked per the electronic loan records submitted to the LOC and per any requests for manual transactions and corrections submitted by the deadline date. Both the LOC and the Accounting and Financial Management Service (AFMS) will work closely with schools to ensure that all information submitted by the deadline has been processed and accounted for in the schools ending cash balance. After July 31, 1998, the LOC will continue to process manual transactions and corrections that were submitted by the deadline. If the LOC is unable to process a transaction by July 31, 1998, and additional information from the school is needed after the LOC processes that transaction, the LOC will continue to work with the school. The LOC will make additional manual transactions necessary to complete the booking process for the loan. After July 31, 1998, schools with pending manual transactions and corrections will continue to receive weekly 732-LOS-C files as pending items are processed by the LOC. The weekly 732-LOS-C will serve as the schools acknowledgement that its manual transactions and corrections have been processed by the LOC. Please maintain documentation of any requests submitted to the LOC for manual transactions and corrections. There will be a final 732-LOS file produced after the July 31, 1998, processing deadline that will provide schools with the Departments final ending cash balance for the 1995-96 and 1996-97 Direct Loan Program years. This final 732-LOS file will not be processed until the LOC has completed all manual corrections that have been submitted to the LOC by the deadline. Once the final ending cash balances have been established, AFMS will begin analyzing the balances to determine a schools responsibility for any unbooked loans and/or remaining cash balance. If necessary, AFMS will contact schools for additional information and/or documentation to determine why an unbooked balance or ending cash balance remains. When AFMS completes the analysis of ending cash balances, it will notify you as to whether the school has successfully completed the close out of the 1995-96 and 1996-97 Direct Loan program years. The Department understands your concern in meeting the July 31, 1998, deadline, and we will work closely with those schools that have made efforts to comply with the July 31, 1998, deadline to ensure that all 1995-96 and 1996-97 loans are booked. In analyzing ending cash balances, AFMS will consider all efforts made by schools to meet the deadline, as documented by school records as well as LOC records. Schools will not be responsible for any ending cash balance due to LOC systems problems or processing delays. Although it is not necessary at this time, you may send documentation of the school's communication with the LOC concerning processing problems or requests to make manual transactions and/or corrections to AFMS. You may fax that information to AFMS at202/708-9106, ATTN: Alexandra Byers. You may also call AFMS at 202/205-6466with any questions concerning the close out process or to discuss ending cash balances. We appreciate your participation in the Direct Loan Program and thank you for your continued support. Sincerely, Linda L. Paulsen, Director Joe L. McCormick, Chair Accounting and Financial Direct Loan Task Force Management Service |