FINANCIAL ASSISTANCE COMMISSION
|May 25, 2006|
|Hurricane Discharge Filing Procedures|
To assure that your Rules remain current, please record this document on your Bulletin index and retain it with your manual.
Hurricane Discharge Filing Procedures for Lenders
On March 3, 2006 the U.S. Department of Education provided guidance that permits the discharge of certain loans disbursed to students who were attending, or scheduled to attend, a Gulf hurricane-affected institution for an academic period that was delayed, cancelled, or interrupted due to hurricanes Katrina or Rita.
Lenders should follow the procedures listed below to file the loan discharge request with LOSFA.
1. Upon receipt of the Aid Discharge Request from the schools, review the listed loans to make sure the disbursement amount to be discharged and the loan amount agree with the amounts on your system. Loans that are no longer held by the lender should be removed from the spreadsheet
2. Add the following data elements to the spreadsheet:
· Servicer ID
· Unique Loan ID
· Interest Rate
· Interest Paid Through Date
· Interest As of Dollar Amount
· Interest As of Date
3. Submit to LOSFA the password-protected spreadsheet that includes this additional information. The spreadsheet should be submitted to email@example.com.
The password to open the documents should be sent in a separate email.
4. While the Department did not provide a time frame for filing the discharge request, LOSFA encourages lenders to submit their request within 30-60 days of the lender’s receipt of the information from the school.
Questions regarding these procedures may be directed to Gwen Johnson at (225) 922-1072 or e-mail firstname.lastname@example.org.