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