Publication Date: July 2003
Bulletin ID: DLB-03-25
Summary: Reminder of Important Dates and Deadlines Related to Final Closeout Processing by the Loan Origination Center
Posted on 07-07-2003
July 2003
DLB-03-25
Subject: Reminder of Important Dates and Deadlines Related to Final Closeout Processing by the Loan Origination Center
Dear Partner:
The Loan Origination Center (LOC) is in the final stage of processing Direct Loans and suspending operations. As a reminder, July 15, 2003 is the last date the LOC will accept loan data for any program year. Any batch or paper data received after this date will not be processed. If the LOC is currently working with your school on a Final Program Review and Determination (FPRD) appeal, you also must complete your appeal and related processing by July 15th. In order to ensure timely resolution of your issues, we encourage you to provide data via electronic batch processing.
The LOC will process all loan data received by July 15th and will provide a final 732-LOS report, dated July 31, 2002, to schools for all program years. All schools with outstanding balances after July 31, 2003 will receive a Final Demand Letter. This is a Final Demand Letter with no appeal rights. The letter will inform schools that a receivable has been established with the Department’s Finance Office, which will send a bill demanding immediate payment. The letter will be sent by overnight courier the week of August 11, 2003 and will be addressed to the president of your institution.
A copy of the Final Demand Letter will be sent to Case Management and Oversight to consider taking an adverse administrative action against the school. Such an action may include the imposition of a fine, or the limitation, suspension, or termination of the eligibility of the institution pursuant to 34 CFR, Part 668, and Subpart G.
The current LOC lockbox for returns of excess cash will not be available after July 31, 2003. Please do not return any funds to this lockbox after July 31, 2003. The Final Demand Letter will provide instructions on how and where to return the excess cash.
All final drawdowns for any year prior to 2002-2003 must be requested via email to Isiah Dupree (Isiah.Dupree@ed.gov) or Sharon Smith (Sharon.Smith@ed.gov) by July 25, 2003. We ask that you include the amount, award year, school name and school code with your request. After this date, no further drawdown requests or adjustments will be accepted.
If you have any questions about closeout, please contact Isiah Dupree at 202/377-3137 or Sharon Smith at 202/377-3147. For general processing questions, please contact the COD School Relations Center at 800/848-0978.
Sincerely,