Publication Date: January 17, 2008
Bulletin ID: DLB-08-02
Summary:
Updated Guidance on Making Borrower Payments
Dear
Direct Loan Colleague:
This bulletin updates and summarizes the correct
process for making a borrower payment (i.e., returning funds at the borrower's
request more than 120 days after disbursement) by sending a check to the
Direct Loan Servicing Center's (DLSC's) Payment Center. As a reminder, if you
are returning funds at a borrower's request within 120 days of disbursement,
or are returning funds at any time in order to comply with a statutory
or regulatory requirement, you should make the appropriate adjustment to the borrower's
loan record or records and follow the process for making a refund of cash as updated
in DLB-08-01.
To ensure the most accurate and timely processing of a borrower
payment, please follow these guidelines:
- Mail a check for the amount
of the borrower-returned funds to the DLSC's Payment Center at:
U.S.
Department of Education
Attention: Payment Center
P.O. Box 530260
Atlanta,
GA 30353-0260
- Include a completed Direct Loan Payment to Borrower Account
form with your check. A revised Direct Loan Payment to Borrower Account form is
attached to this bulletin and should be used for this purpose. We also recommend
that you note the borrower's name, the loan ID, and the loan amount being returned
on the check itself.
If you have any questions about this bulletin
or returning funds at the borrower's request more than 120 days after disbursement,
contact the COD School Relations Center at 800/848-0978 or e-mail CODSupport@acs-inc.com.
Thank
you for your ongoing partnership in the Direct Loan Program.
Sincerely,
William
Leith
Acting General Manager, Application, Operations and Delivery Services
Attachments/Enclosures:
Direct
Loan Payment to Borrower Account Form in Microsoft Word Format, 46KB, 1 page
Direct
Loan Payment to Borrower Account Form in PDF Format, 104KB, 1 page
Posted 01/18/08 to www.NASFAA.org. Please submit Web Site questions or comments to Web@NASFAA.org
