Bulletin ID
DLB - 98 - 49
| PublicationDate: 12/1/98 BulletinID: DLB - 98 - 49 December 1998 DLB 98-49 Subject: Anticipated Completion Date Dear Colleague: Many of you who attended the Electronic Access Conferences were part of the discussions concerning schools reporting of their students anticipated completion date (ACD). We want to stress that it is important and to everyones advantage -students, schools, and the Department of Education - that the ACD that you supply on the Direct Loan origination record or on the Student Status Confirmation Report (SSCR) be set at the expected completion date of the course of study rather than at the expected completion date of the current academic term. When the anticipated completion date is based on the academic term (semester/year/quarter, etc.), rather than on the expected date of completion of the course of study (two-year degree, four-year degree, etc.), the result is additional work and expense for students, schools, and the Department of Education. When the academic term is used for the ACD, the borrower will receive exit counseling materials and go into repayment at the end of this term and then begin receiving bills because the ACD triggers the repayment process. The student and the school must then complete a deferment request form for the student to be placed back into an "In School" status which is very costly and time consuming for all involved. If a deferment request form is not done, the student could go into delinquency, followed by default. If the ACD is incorrect on subsequent loan originations or SSCRs, the cycle repeats itself! We understand the concern that a student may withdraw from school and not enter repayment timely. However, the SSCR process is functioning very smoothly and updates the ACD in the National Student Loan Data System, which forwards that data to the Direct Loan Servicer. Please work with your registrars office to implement this advice to report expected completion date of the course of study as the ACD. Your cooperation in this effort will assist us to better serve your student borrowers and will enhance our administration of the Direct Loan Program. If you or your registrar have any questions, please contact the Direct Loan Task Force at 202/708-9951. Thank you for your continued support of the Direct Loan Program. Sincerely, Joe L. McCormick Chair Direct Loan Task Force |