LOUISIANA STUDENT FINANCIAL ASSISTANCE COMMISSION
|LPM NO.:||L97-6||Effective Date:||As Indicated|
|Pub. Date:||June 9, 1997||Distribution:||Lenders|
To assure that your Common Manual remains current, please record this document on your LPM/LPB Index, and retain it in Appendix E of your manual.
Loan Program Memorandum L97-4, dated March 27, 1997, included the new Common Manual "Requirements for Reporting Consolidation Loans".
LOSFA will implement the Consolidation Loan reporting policy discussed in L97-4 for Consolidation loans made by the lender on or after July 1, 1997. However LOSFA will extend the reporting timeframe from 60 to 90 days before we will take any action against a lender..
Thus, lenders must report to LOSFA that a Consolidation loan has been made within 90 days of the date on which the loan is initially disbursed. If a lender adds a loan within the 180 day add-on period or makes any other adjustment to the outstanding original balance of a Consolidation loan, the lender must report the new Consolidation loan information to LOSFA within 90 days of the date on which the additional loan funds are disbursed or the adjustment is made.
LOSFA reserves the right to take any action it deems appropriate, including the withdrawal of the loan guarantee, if the lender fails to report the making of a Consolidation loan, fails to report the disbursement of additional funds, or fails to report any other adjustment of the outstanding original balance within 90 days after that activity occurs. In the event of extenuating circumstances, the lender may make appeal to LOSFA on a case-by-case basis for an additional extension of time within which to comply. LOSFA, while not required to guarantee the Consolidation loan(s), may choose to do so based on its review of the extenuating facts presented by the lender.