Bulletin ID
DLB - 00 - 24
| PublicationDate: 5/1/2000 BulletinID: DLB - 00 - 24 May 2000 DLB 00-24 Subject: Information for Closing Out the 1998-99 Direct Loan Program Year Dear Partner: The closeout process for the 1998-99 Direct Loan program year is underway. To assist you with the process, we are providing the following information: When is the processing deadline for the 1998-99 Direct Loan Program Year? ALL 1998-99 records should be transmitted to, and accepted by, the Loan Origination Center (LOC) no later than July 31, 2000. What does a successful closeout mean? You will have successfully closed the 1998-99 Direct Loan program year when all your internal accounts are balanced to zero and you have an ending cash balance of zero with the Department. A zero balance indicates that youve submitted all records necessary to book your 1998-99 loans (including all disbursements), those records have been accepted, and youve returned all undisbursed 1998-99 funds to us. What If I am not at a zero balance? You may still have additional records or outstanding issues to address. Please resolve these items by the deadline. What tools can I use to complete closeout? Attached to this bulletin is a detailed list of tools and recommendations that you can use to complete closeout successfully. As always, contact your LOC Customer Service Representative or regional Client Account Manager for additional assistance. Their phone numbers are in the attachment as well. Where do I return funds if I have excess cash? Funds should be returned to: Direct Loan Origination Center ATTN: Excess Cash, 1998-99 P.O. Box 2011 Montgomery, AL 36102-2011 Funds in excess of $100,000 must be returned via FEDWIRE. Please use the following wire information: Wachovia Bank, Account #1302 8525 ABA Routing No. 0610 00010 Regardless of the method you use, when returning funds, please be sure to include your G-code and the full program year the money should be applied to. In this case, include 1998-1999. How will I be notified of a successful closeout? You will receive an official letter from us. This may not occur until after the deadline date of July 31, 2000, even if you finish the process before this date. How is the 30-Day reporting requirement affected by closeout? The annual processing deadline for closing out a Direct Loan program year doesnt relieve you from compliance with the regulatory 30-day requirement. Under this requirement you must submit: the promissory note, loan origination record and initial and subsequent disbursements to us no later than 30 days following the date of disbursement, and any adjustments of disbursements to us no later than 30 days following the date of each disbursement adjustment. There are, however, infrequent cases in which a 1998-99 loan disbursement could appropriately be made as late as July 2000. In these cases, the July 31 processing deadline takes precedence over the normal 30-day submission requirement or the 90-day late disbursement window (for instance, if you make a 1998-99 disbursement on July 15, 2000, all records needed to book that disbursement must be accepted by July 31, 2000). What if I still have questions about closeout? If you have any questions about the close out process for 1998-99 or have questions concerning your 1998-99 Direct Loan ending cash balance, please contact your LOC Customer Service Representative or your regional Client Account Manager. Thank you for your continued partnership in the Direct Loan Program. Sincerely, Margaret E. White Acting Lead, Title IV Delivery Schools Channel Attachment |