() Summary: Program Year Closeout Reminders

October 2002

DLB-02-34

Subject: Program Year Closeout Reminders

Dear Partner,

As the end of the year fast approaches, we encourage you to continue with your closeout process for program years 2000-2001 and 2001-2002.

Program year 2000-2001

The processing cycle for the 2000-2001 Direct Loan Program Year closed on July 31, 2002, and the Loan Origination Center (LOC) is no longer processing data for that period. If you need to submit a downward adjustment, you must contact LOC customer service to arrange transfer of the appropriate information. The LOC will not accept adjustments without prior approval. Note: Schools under the Final Program Review Determination (FPRD) process should continue addressing the issues cited in the FPRD letter from Case Management and Oversight (CMO).

You also should return excess cash as soon as it is identified. Holding excess cash will result in the school being charged interest from beginning of the new award year (July 1, 2001) to the date on the FPRD letter you received or will receive from CMO.

Program Year 2001-2002

We also want to remind you that December 31, 2002 is the closeout deadline for the 2001-2002 Direct Loan Program Year. As you know, the LOC will cease operations early 2003, and there is no plan to migrate prior year data to COD. Therefore, we cannot accept any data after the December 31, 2002 deadline. Note: we will make exceptions for those loans associated with borrower-based academic years where the loan period(s) may extend beyond this date.

Thank you for your care and attention to the closeout process. We understand and appreciate the effort it involves. If you have questions or need assistance in reporting 2001-2002 records to the LOC, please contact your customer Service Representative at 800/848-0978 or your regional Client Account Manager.

Thank you for your ongoing partnership in the Direct Loan Program.

Sincerely,

Jane Holman
Acting Director, Title IV Delivery
Schools Channel