RE: Turning Accounts Over to Dept of Education

From: Piper, Pat (ppiper@ufl.edu)
Date: Fri Jan 24 2003 - 10:38:27 EST

  • Next message: Jeannie Cossey: "Great Response!"

    Jeannie,

    Although ED has considered mandatory assignments, they have streamlined
    current assignment procedures to encourage schools to assign accounts they
    deem uncollectible. However, presently assignment is not mandatory, but
    this could change.

    The University of Florida has not assigned any loans since the
    implementation of the cohort default rate calculation several years ago when
    a school could no longer reduce its default rate by assigning defaulted
    accounts. Although there are positive results from the cohort default rate
    calculation, including contacting defaulted borrowers in early stages of
    delinquency, one of the negative drawbacks is that some schools are forced
    to focus collection resources on the "cohort target group" of accounts and
    reduce collection efforts on non-cohort accounts, resulting in an increase
    in total dollars in default. I assume this is one of the reasons ED has
    considered mandatory assignments. We continue to actively work these older
    accounts with the assistance of our external third-party collection
    agencies, which are happy to help in this effort.

    If you choose to assign, you can get information in Chapter 8 of the FSA
    Handbook beginning on page 5-81 at
    http://www.ifap.ed.gov/sfahandbooks/attachments/0203V5C8.pdf. Good luck!

    Patrick Piper
    Administrative Services Coordinator
    University of Florida
    University Financial Services
    S-113 Criser Hall, PO Box 114050, Gainesville, FL 32611
    (352) 392-0766 Fax: (352) 392-3448
    ppiper@ufl.edu <mailto:ppiper@ufl.edu>

    > -----Original Message-----
    > From: Jeannie Cossey [mailto:jcossey@astate.edu]
    > Sent: Friday, January 24, 2003 9:26 AM
    > To: bursar-l@virginia.edu
    > Subject: Turning Accounts Over to Dept of Education
    >
    >
    > I would like to get some input from everyone regarding the
    > procedure they
    > use to turn uncollectible accounts over to the Department of
    > Education.
    >
    > Are you submitting these accounts to the Department of
    > Education on a regular basis?
    >
    > Do you wait a specific time before turning accounts over?
    >
    > Is it mandatory that we turn them over?
    >
    > Any information you could provide would be greatly appreciated.
    >
    >
    > Jeannie Cossey, Collections Manager
    > Arkansas State University
    > P.O. Box 2100
    > State University, AR 72467
    > Ph: 870-910-8220
    > Fax: 870-910-8161
    > Email: jcossey@astate.edu
    >

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