LOSFA Modifies Preclaim Cancellation Date in Common Manual

LOUISIANA STUDENT FINANCIAL ASSISTANCE COMMISSION
OFFICE OF STUDENT FINANCIAL ASSISTANCE

LOAN PROGRAM MEMORANDUM

LPM NO.: L99-12 Effective Date: November 1, 1999
Pub. Date: October 6, 1999 Distribution: Lenders and Schools
Topic: LOSFA Modifies Preclaim Cancellation Date in Common Manual

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.

 

LOSFA has modified its preclaim cancellation date, which appears in subsections 8.1.K. and CCI 8.1.K., Preclaim Assistance Time Frames chart, page 14, of the July, 1999 update of the Common Manual. Effective November 1, 1999, the preclaim cancellation date will be 30 days, rather than 0 days delinquent.

Lenders should notify LOSFA to cancel preclaim assistance only when the account becomes less than 30 days delinquent. This will reduce the time lenders need to stay in touch with LOSFA on minor delinquencies, reducing their administrative burden. Student loan borrowers will not receive letters and calls from LOSFA unless they are more than 30 days delinquent. Contacts prior to that level of delinquency have proven to be counter-productive. By implementing this change, Preclaims will be able to provide better assistance to the lenders by focusing its attention and resources on the borrowers more likely to default.

These revisions will be included in the Preclaim Assistance Time Frames chart in the next update of the Common Manual.

 

 

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