Publication Date: June 2001
Bulletin ID: DLB-01-18
Processing Deadline for 1997-98 Direct Loan Program Year
June 2001
DLB 01-18
Subject: Processing Deadline for 1997-98 Direct Loan Program Year
Dear Partner:
This bulletin provides you with information concerning program year 1997-98 closeout.
Please note that the message classes for the 1997-98 program year will be closed effective July 6, 2001, and that all 1997-98 records must be transmitted electronically and accepted by the Loan Origination Center (LOC) by that date.
We consider a school to have successfully closed the 1997-98 Direct Loan program year when a school has an ending cash balance of zero. A zero balance indicates that a school has accounted for all 1997-98 funds received from the Department by either submitting to the Department all records necessary to book 1997-98 loans originated by the school or returning undisbursed 1997-98 funds to the Department. If a school is unable to reconcile to a zero ending cash balance with submission of all 1997-98 loan records, the school will be expected to return those funds immediately to the Department as excess cash.
Schools needing assistance with discrepancies should contact their LOC Customer Service Representative at 800/848-0978 or their regional Direct Loan Client Account Manager.
Where do I return funds if I have excess cash?
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 school's 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. Mail the check to:
Loan Origination Center
ATTN: EXCESS CASH, 1997-98
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:
Wachovia Bank, Account # 1302 8525
ABA Routing # 0610 00010
Regardless of the method you use, when returning funds, please include the Direct Loan school code and the full program year the funds should be applied to.
Notification of Successful Closeout
Schools that successfully close the 1997-1998 Direct Loan Program year will receive an official notice from the Department. Closeout letters will be sent to schools after
July 31, 2001; however, a school may request a closeout letter before July 31, 2001 by sending an email to Isiah.Dupree@ed.gov.
If you have any questions about the closeout process for 1997-98 or have questions concerning your 1997-98 Direct Loan ending cash balance, please contact the Direct Loan Operations Division (DLOPS) Team at 202/205-6466.
Thank you for your continued partnership in the Direct Loan Program.
Sincerely,
Jane Holman
Acting Director, Title IV Delivery
Schools Channel