Another Perkins Question

From: Gregg Wilbur (gwilbur@skidmore.edu)
Date: Mon May 13 2002 - 10:32:11 EDT

  • Next message: Patricia Swartz: "Re: Another Perkins Question"

    Hi all,

    Thank you to everyone who responded to my question regarding Perkins
    borrowers who enter repayment and then later re-enroll at the College.

    I now have another question: Section 674.47 of the Federal Perkins Loan
    Program regulations describes costs that are chargeable to the Perkins
    loan fund. We are in a situation where we will be able to use this
    provision, but I confess that I know nothing about it.

    What does it mean to charge costs to the Fund?

    Is this a way to charge an expense to our own Perkins fund in such a way
    that the government does not get angry with us for not collecting the
    full amount of collection costs? And also: is it really a decrease in
    a fund balance of some sort, or it is simply an accounting entry that
    does not really affect the amount that we are eligible to then give out
    to students? Our collections hopefully will be higher now than they
    would have previously been, since we had little hope of collecting
    anything on this account prior to the deal we struck with the
    borrower....will we somehow be negatively affected by charging the
    unsought collection fees to the fund?

    And how then do we perform the entries and report (on the FISAP) what we
    did?

    I apologize if I sound completely ignorant here, but really, I am
    completely ignorant. Any basic explanations (using simple pictures and
    small words) would be greatly appreciated. Thanks again!

    Gregg Wilbur
    Bursar
    Skidmore College
    Saratoga Springs, NY



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