RE: 45-day calls on student loans

From: Piper, Pat (ppiper@ufl.edu)
Date: Thu Jan 30 2003 - 11:50:07 EST

  • Next message: Duly, Jeffrey S: "Re: 45-day calls on student loans"

    DeAhn,

    Our in-house collection staff make monthly calls to all delinquent loan
    accounts when the account exceeds 30 days of delinquency. We continue to
    actively work delinquent accounts through 240 days delinquent when the
    account is accelerated, and if no response, placed with a collection agency.

    We assess an internal collection cost on delinquent accounts to cover the
    cost of our collection efforts as required by CFR 674.45(e)(1):

    Assessing and documenting costs
    You may charge either actual costs incurred in collecting the
    borrower's loan or average costs incurred for similar actions taken to
    collect loans in similar stages of delinquency.
    Your school must assess all reasonable collection costs against the
    borrower despite any provisions of state law that would conflict with
    the above provisions.
    Assessing costs cite
    34 CFR 674.45(e)

    We use the "average costs" method and currently assess a $12 monthly
    collection cost on all accounts being worked by in-house collection staff.

    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: DeAhn Baucom [mailto:DeAhn@email.unc.edu]
    > Sent: Thursday, January 30, 2003 8:28 AM
    > To: bursar-l@virginia.edu
    > Subject: 45-day calls on student loans
    >
    >
    > Good Afternoon, Thank you in advance for answering the
    > question below:
    >
    > 1- How many of you have staff make collection calls on student loans
    > when they become 45 days past due?
    > 2- Whether yes or no, why? (cost v. benefits?)
    >
    > Thanks!
    > DeAhn Baucom
    > Director of Student Accounts
    > UNC Chapel Hill
    > 919-843-2454
    >



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