Preclaim Assistance Filing and Cancellation
LOUISIANA STUDENT FINANCIAL ASSISTANCE COMMISSION
|LPM NO.:||L99-2||Effective Date:||As Indicated|
|Pub. Date:||February 8, 1999||Distribution:||Lenders|
|Topic:||Preclaim Assistance Filing and Cancellation|
Because of revisions to the Higher Education Act, LOSFA is changing the date preclaim assistance is offered from 90 days of delinquency to 70 days of delinquency. This means that in order to be considered timely in the event the account subsequently has a claim filed, a Lender Request for Assistance (LRA) may be filed as early as the 60th day of delinquency, but must be filed no later than the 80th day of delinquency.
In addition, lenders should notify LOSFA to cancel preclaim assistance only when the delinquency is fully resolved (when the account becomes zero days delinquent). This change is required to be implemented by July 1, 1999, but lenders may implement these changes immediately. After July 1, 1999 the new dates will be used to determine whether a lender has filed for preclaim assistance on an account in a timely manner, should a claim subsequently result. These revisions will be included in the Preclaim Assistance Time Frames chart in the next update of the Common Manual.