Getting Your Perkins PhDMay 17, 2012

Financial Aid has Awarded Perkins – Now Financial Aid has Awarded Perkins – Now What?What?

We Fear That Which We Do Not We Fear That Which We Do Not UnderstandUnderstand

•RegulationsRegulations

•Auditors’ FindingsAuditors’ Findings

•Cohort Default CalculationCohort Default Calculation

•Share KnowledgeShare Knowledge

•Support for AuditsSupport for Audits

•Annual Review of Annual Review of Program Setup to Program Setup to Ensure Continued Ensure Continued ComplianceCompliance

Forge a School-Billing Servicer Forge a School-Billing Servicer PartnershipPartnership

The Beginning: Making the Loan, In-School The Beginning: Making the Loan, In-School StatusStatus

•Entrance InterviewsEntrance Interviews

•Prom NotesProm Notes• 34CFR 674.3134CFR 674.31• DCL CB-06-11DCL CB-06-11• TILA, Reg ZTILA, Reg Z

•Annual DisclosuresAnnual Disclosures• 34CFR 674.16(a)34CFR 674.16(a)• 34 CFR 674.19(e)(4)(iii)34 CFR 674.19(e)(4)(iii)

•Red Flag RulesRed Flag Rules• FTC 16 CFR 681FTC 16 CFR 681

•Tax FormsTax Forms• IRS Publication 970IRS Publication 970

34 CFR 674.42(b)HEOA section 488(b)

HEA section 485(b)(1)(A)

•GraduatesGraduates

•Withdrawn or LTHTWithdrawn or LTHT

•Notification of need to go Notification of need to go through exit processthrough exit process

•Exits: Online / MailedExits: Online / Mailed• 34 CFR 674.42(b)34 CFR 674.42(b)

The Next Step: Exit ProcessThe Next Step: Exit Process

The Calm Before the Storm: GraceThe Calm Before the Storm: Grace

•Grace Audit NoticesGrace Audit Notices• 34 CFR 674.42(c)34 CFR 674.42(c)

•Should you do more?Should you do more?

•Multiple Grace Periods?Multiple Grace Periods?

•NSLDS ReportingNSLDS Reporting

•Billing: Monthly vs. Billing: Monthly vs. Quarterly, etc.Quarterly, etc.

• 34 CFR 674.41(a)34 CFR 674.41(a)• 34 CFR 674.4334 CFR 674.43

•Multiple payment Multiple payment optionsoptions

•Consolidation and Consolidation and LVCsLVCs

• HEA Section HEA Section 428C(a)(3)428C(a)(3)

Uh-Oh: Here Comes RepaymentUh-Oh: Here Comes Repayment

•DefermentsDeferments

•CancellationsCancellations• 34CFR 674.5234CFR 674.52

•ForbearanceForbearance• Interest due at end of Interest due at end of

ForbearanceForbearance

•Death and DisabilityDeath and Disability

Whew: Deferments, Cancellations, Whew: Deferments, Cancellations, Etc.Etc.

• 60-Day Final 60-Day Final Demand Letters Demand Letters andand 90-Day Due 90-Day Due Diligence CallsDiligence Calls• 34 CFR 674.43(b)34 CFR 674.43(b)• 34 CFR 674.43(c)34 CFR 674.43(c)

• Definition of Definition of DefaultDefault

• Cohort Default and Cohort Default and the Orange Bookthe Orange Book• http://ifap.ed.gov/http://ifap.ed.gov/

perkinscdrguide/perkinscdrguide/1011PerkinsCDR.html1011PerkinsCDR.html

• Skip-TracingSkip-Tracing• 34 CFR 674.4434 CFR 674.44

Say It Isn’t So: Delinquency & Say It Isn’t So: Delinquency & DefaultDefault

Far from the Pathway: Looking into the Far from the Pathway: Looking into the AbyssAbyss

•Government AssignmentGovernment Assignment• HEA Section 463(a)(5)HEA Section 463(a)(5)

•State Tax OffsetState Tax Offset• IRS Reform Act of 1998IRS Reform Act of 1998

•Perpetual BillingPerpetual Billing

•SettlingSettling

•Can you collect after 7 years?Can you collect after 7 years?

•Pre-CollectionsPre-Collections• InternalInternal• ExternalExternal

•Credit Bureau Reporting Credit Bureau Reporting and and E-OSCARE-OSCAR

• 34 CFR 674.45(a)34 CFR 674.45(a)(1)&(b)(1)&(b)

•DRAPDRAP• Dear Colleague Dear Colleague

Letter CB-05-11Letter CB-05-11

•RehabilitationRehabilitation

•AccelerationAcceleration

•Collection AgenciesCollection Agencies

To the Rescue: Pre-Collections and To the Rescue: Pre-Collections and Collection AgenciesCollection Agencies

•Prom Notes vs. PIF LettersProm Notes vs. PIF Letters• 34 CFR 674.19(e)34 CFR 674.19(e)

•Retention of Original Retention of Original NotesNotes

• 34CFR 674.19(e)(4)(iii)34CFR 674.19(e)(4)(iii)

•Replenishes your Perkins Replenishes your Perkins ProgramProgram

•They key to success? They key to success? Communication with your Communication with your borrowers.borrowers.

Successful Conclusion: Paid in FullSuccessful Conclusion: Paid in Full

CONGRATULATIONSGRADUATES !!

Sal Flores, Chapman UniversityLaurelle Swan, ECSI