DLB-02-11

Subject: Balance Verification Process for Program Year 2000-2001

Dear Partner:

The deadline for closing out Program Year 2000-2001 is July 31, 2002. The Department of Education is proactively taking all steps necessary to assist schools in identifying and resolving outstanding cash and disbursement issues prior to program year close out. To assist in this effort, the Department of Education will be mailing a Balance Verification Packet to schools that have not verified with the Loan Origination Center (LOC) that their institution is at zero and the LOC has not sent them a close out letter.

During the week of April 8, these schools will receive a Balance Verification Packet for Program Year 2000-2001. The packet contains a Balance Verification letter and a Balance Verification Form. It is very important that you review your internal records (cash and disbursement records) and compare them with the summary totals on the Balance Verification Letter for accuracy and completeness. Please follow the instructions carefully and return the Balance Verification Form to the address stated in the letter no later than May 31, 2002.

If your school's ending cash balance is reflected as zero in the letter, and you return the form confirming that your school's internal balance is zero, the Department will consider your school to be officially closed out for Program Year 2002-2001. This will allow the Department to take the following actions:

a. The LOC will not process any 2000-2001 electronic data or manual requests to process data from your school without notification from the Department of Education.

b. The LOC will no longer provide 2000-2001 reports to your school.

c. GAPS will no longer process requests for funds or reallocations of funds for 2000-2001.

d. The Department of Education will mail an official close out letter to your school.

If your school's ending cash balance is not reflected as zero in the letter, please follow the instructions provided in the letter.

If you do not receive the Balance Verification Packet by April 19, please contact your CSR (1 800 848-0978). Thank you for your ongoing partnership in the Direct Loan program.

Sincerely,

Jane Holman
Acting Director, Title IV Delivery
Schools Channel

Posted April 15, 2002 on the NASFAA Web Site www.nasfaa.org
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