DLB-08-02: Updated Guidance On Making Borrower Payments

Publication Date: January 17, 2008

Bulletin ID: DLB-08-02

Summary: Updated Guidance on Making Borrower Payments

Dear Direct Loan Colleague:

This bulletin updates and summarizes the correct process for making a borrower payment (i.e., returning funds at the borrower's request more than 120 days after disbursement) by sending a check to the Direct Loan Servicing Center's (DLSC's) Payment Center. As a reminder, if you are returning funds at a borrower's request within 120 days of disbursement, or are returning funds at any time in order to comply with a statutory or regulatory requirement, you should make the appropriate adjustment to the borrower's loan record or records and follow the process for making a refund of cash as updated in DLB-08-01.

To ensure the most accurate and timely processing of a borrower payment, please follow these guidelines:

  • Mail a check for the amount of the borrower-returned funds to the DLSC's Payment Center at:

U.S. Department of Education
Attention: Payment Center
P.O. Box 530260
Atlanta, GA 30353-0260

  • Include a completed Direct Loan Payment to Borrower Account form with your check. A revised Direct Loan Payment to Borrower Account form is attached to this bulletin and should be used for this purpose. We also recommend that you note the borrower's name, the loan ID, and the loan amount being returned on the check itself.

If you have any questions about this bulletin or returning funds at the borrower's request more than 120 days after disbursement, contact the COD School Relations Center at 800/848-0978 or e-mail CODSupport@acs-inc.com.

Thank you for your ongoing partnership in the Direct Loan Program.

Sincerely,

William Leith
Acting General Manager, Application, Operations and Delivery Services

Attachments/Enclosures:

Direct Loan Payment to Borrower Account Form in Microsoft Word Format, 46kb, 1 page 

Direct Loan Payment to Borrower Account Form in PDF Format, 104kb, 1 page 

 

Publication Date: 1/17/2008


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