LOUISIANA STUDENT FINANCIAL ASSISTANCE COMMISSION
|LPM NO.:||L98-5||Effective Date:||As Indicated|
|Pub. Date:||June 12, 1998||Distribution:||Lenders and Schools|
|Topic:||Common Manual Updates - Correction to L98-4 of May 14, 1998|
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.
Correction to Common Skip Tracing Requirements effective date and trigger event
LOSFAs LPM L98-4 dated May 14, 1998 included a section titled "Common Skip Tracing Requirements," which did not reflect the appropriate effective date and trigger event for the "Address Skip Tracing Requirements Clarified " article in the group. Please note the policy change (repeated from L98--4 of May 14, 1998) and the appropriate effective date and trigger event which follow:
Address Skip Tracing Requirements Clarified
Current Common Manual policy does not address skip tracing requirements following notification of the reversal of a payment. To conform with the Common Claim Initiative, Common Manual subsection 8.1.I. will be revised to clarify that skip tracing activity is not required if both of the following conditions are met:
The lender has mailed a timely final demand letter.
The borrowers loan becomes 151 days or more delinquent (211 days or more delinquent for loans payable in installments less frequently than monthly) as a result of the reversal of a payment.
This change will be enforced for payments reversed on or after September 1, 1998.