Bulletin ID
DLB - 99 - 60
| PublicationDate: 10/1/99 BulletinID: DLB - 99 - 60 October 1999 DLB 99-60 Subject: Return of Direct Loan Excess Cash Dear Partner: This bulletin follows up on the guidance we provided earlier (see DLB 96-13 and DLB 97-17), which discussed the return of excess cash. We have learned that some schools are returning excess cash to a Department post office box in St. Louis, Missouri, rather than to the Loan Origination Center (LOC) in Montgomery. Please refer to The Blue Book - Accounting, Recordkeeping, and Reporting by Postsecondary Educational Institutions for Federally Funded Student Financial Aid Programs, dated June 1999. Section 4.12 discusses the return of Direct Loan funds. As with other Title IV funds, Direct Loan excess cash is any amount of Direct Loan funds a school does not disburse to borrowers by the end of the third business day following the date the school receives the funds. This includes excess funds that result from adjusting downward the amount of an actual disbursement. There are two methods by which schools may return excess Direct Loan cash: Check A check may be used if the amount of excess cash is less than $100,000. It should be made payable to the U. S. Department of Education. The check and/or accompanying correspondence should include the schools Direct Loan school code and the academic year the funds should be applied against. The school should also indicate that the funds are excess Direct Loan cash. The check should be mailed to: Loan Origination Center ATTN: EXCESS CASH P. O. Box 2011 Montgomery, AL 36102-2011 FEDWIRE If the amount of excess cash is $100,000 or more, an electronic transfer method must be used. A school must instruct its bank that the reason for the remittance is Direct Loan excess cash. The funds must be returned to: Compass Bank Account No. 707 2672 6 ABA No. 0620 01186 Please include the Direct Loan school code and the academic year the funds should be applied against. We hope this bulletin clarifies the return procedures for you. Thank you for your ongoing participation in the Direct Loan Program. Sincerely, Margaret E. White Acting Lead, Title IV Delivery Schools Channel |