From: cathy foland (cfoland@siue.edu)
Date: Tue Feb 25 2003 - 10:48:24 EST
We have an instance where the Perkins prom note includes a cap of 25%
for collection costs to be paid by borrower. The regs say that Perkins
loan fund can pay up to 30% of total principal, interest, and late
charges collected for first
collection efforts and 40% for second collection efforts. Are these
limits over and above the amount paid by borrower (25% by borrower + 30%
by loan fund for a total of 55% first placement)? Or are these limits
inclusive of what the borrower paid (25% by borrower + 5% by loan fund
for a total of 30% first placement)?
I appreciate your help!
Cathy
-- Cathy Foland Associate Bursar Office of the Bursar Southern Illinois University Edwardsville Phone: (618) 650-3131 Fax: (618) 650-2971 Email: cfoland@siue.edu
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