[Federal Register: July 7, 1999 (Volume 64, Number 129)]
[Page 36747-36748]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[[Page 36747]]


Part II

Department of Education


Office of Postsecondary Education--William D. Ford Federal Direct Loan 
Program; Notice

[[Page 36748]]


Office of Postsecondary Education--William D. Ford Federal Direct 
Loan Program

AGENCY: Department of Education.

ACTION: Notice of deadline for submission of loan records and 
promissory notes.


SUMMARY: This notice establishes the deadline for the submission of all 
William D. Ford Federal Direct Loan (Direct Loan) Program electronic 
loan records and promissory notes to the Secretary for the 1997-1998 
academic year (Year 4).

participated in the Direct Loan Program during academic year 1997-1998 
(Year 4) must submit all electronic loan records and promissory notes 
associated with Direct Loans made during that year to the Secretary no 
later than August 2, 1999.

SUPPLEMENTARY INFORMATION: An institution that participates in the 
Direct Loan Program is required under 34 CFR 685.300(b)(6) to comply 
with all requirements established by the Secretary relating to loans 
made under that program. The Secretary has the authority under this 
provision to establish a deadline by which all required electronic 
records and promissory notes for a particular academic year must be 
final, complete, accurate, and submitted to the Secretary.
    The Secretary believes that establishing an annual deadline for the 
submission of all electronic records (both initial and adjusted or 
revised records) and promissory notes is necessary to protect the 
rights of borrowers, and to protect the United States from unreasonable 
financial risks. Under 34 CFR 685.309(a), schools that participate in 
the Direct Loan Program are required to establish and maintain proper 
administrative and fiscal accounting procedures. The establishment of 
an annual submission deadline promotes compliance with this 
requirement. An annual deadline also enables the Secretary to close out 
the processing of Direct Loan Program cash records for an academic year 
and makes it easier for the Secretary to determine that Direct Loan 
funds were disbursed appropriately to student and parent borrowers. 
Further, an annual deadline enables the Secretary to conduct program 
reviews of Direct Loan schools more efficiently, since all Direct Loan 
records submitted to the Secretary by the deadline are final.
    The annual submission deadlines established in this notice are 
separate from the 30-day requirement for the regular submission of 
initial electronic records and promissory notes. Under 34 CFR 
685.301(d), Direct Loan schools that participate under Origination 
Option 1 or Origination Option 2 must submit loan origination records, 
promissory notes, and disbursement records no later than 30 days after 
the date the disbursements are made. Schools that participate under 
Standard Origination must submit initial and subsequent disbursement 
records to the Secretary no later than 30 days after the date of each 
    In some cases, institutions may need to adjust or revise electronic 
records that were previously submitted to the Secretary within the 
regular 30-day time period. The annual submission deadline established 
in this notice is the date by which all electronic records (whether 
adjusted/revised or initial) and promissory notes for the 1997-1998 
academic year (Year 4) must be submitted to and accepted by the 
Secretary. If initial records and promissory notes have not been 
submitted before the annual deadline, the annual submission deadline 
supersedes the regular 30-day requirement under 34 CFR 685.301(d). 
Therefore, any initial records or promissory notes for the 1997-1998 
academic year must be submitted to the Secretary by the annual 
submission deadline, even if that date is earlier than the regular 30-
day deadline.
    Any electronic record or promissory note for the 1997-1998 academic 
year that is submitted to the Secretary after the annual submission 
deadline will be rejected. This includes any record or promissory note 
that was previously submitted, but rejected, on or before the 
submission deadline. Records and promissory notes that have been 
rejected and remain incomplete or inaccurate by August 2, 1999 may 
result in institutional, rather than Federal, responsibility for the 
loan or portion of the loan.

FOR FURTHER INFORMATION CONTACT: Jon Utz, U.S. Department of Education, 
400 Maryland Avenue, SW, ROB-3, Room 3045, Washington, DC 20202-3272. 
Telephone (202) 708-8242. If you use a telecommunications device for 
the deaf (TDD) you may call the Federal Information Relay Service 
(FIRS) at 1-800-877-8339.
    Individuals with disabilities may obtain this document in an 
alternate format (e.g., Braille, large print, audiotape or computer 
diskette) on request to the contact person listed in the preceding 

Electronic Access to this Document

    You may view this document, as well as other Department of 
Education documents published in the Federal Register, in text or Adobe 
Portable Document Format (PDF) on the Internet at the following sites:


    To use the PDF you must have the Adobe Acrobat Reader Program with 
Search, which is available free at either of the previous sites. If you 
have questions about using the PDF, call the U.S. Government Printing 
Office (GPO), toll free at 1-888-293-6498, or in the Washington, DC, 
area at (202) 512-1530.

    Note: The official version of this document is the document 
published in the Federal Register. Free Internet access to the 
official edition of the Federal Register and the Code of Federal 
Regulations is available on GPO Access at:


(Catalog of Federal Domestic Assistance Number 84.268, William D. 
Ford Federal Direct Loan Program)
    (Program Authority: 20 U.S.C. 1087a et seq.)

    Dated: July 1, 1999.
Greg Woods,
Chief Operating Officer for the Office of Student Financial Assistance.
[FR Doc. 99-17134 Filed 7-6-99; 8:45 am]