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Date: April 22, 2002
To: Health Professions and Nursing Schools
Subject: Campus Based Policy Memorandum 2002-1
Please forward this memorandum to the financial aid administrators and fiscal
officers responsible for administering the Division of Health Careers Diversity
and Development (DHCDD)/Department of Health and Human Services (HHS) campus-based
loan programs.
This policy memorandum was developed to inform the schools about changes to
the write-off requirements. Over the past year and a half, the write-off group
has looked at the write-off process as a whole and the documentation required
during submission. Based on review of requirements and input received
from schools, the following changes have been made.
Submission Time-Frame - Schools now have 60 days, instead of 30, to submit their
case to HHS for review after the documented determination of uncollectibility.
Entrance/Exit Interview Documentation - Documentation will only be required
if the borrower has made less than 1 full year of payments. Otherwise, documentation
must be provided or notation made in the history log.
Grace Period Contacts - Evidence of the 2 required grace period contacts will
be waived if the borrower has made at least 1 full year of payments. If less
than one year, copies of letters or notations in the history log must be provided
to document two grace period contacts.
Deferments - A school now has the option to use the National Student Clearinghouse,
in lieu of a paper deferment form. The school must provide documentation
to support the verification of the student's participation in a deferrable activity
or copies of an approved deferment form.
Regular Billing - History log will provide documentation of regular billing.
Evidence of regular billing will be waived if the borrower has made 1 full year
of payments. However, history log must show late notices were provided from
the time the borrower defaulted.
Collection Agent - It will no longer be required that schools provide a copy
of the letter documenting when the case was submitted and returned to the school
or a copy of the close-out statements. HHS will look for notations of such activities
in the history log.
Credit Bureau - Notation in the history log of the date sent to Credit Bureau
will suffice. Copies of the Credit Bureau report or placement letter are not
required.
Litigation - HHS will look for any combination of the following information
to determine compliance: history log notation of determination, placement letter,
or copy of the judgment received.
All other steps of due diligence will retain their previous requirements, e.g.
copies of the promissory notes must still be provided. Our intention is to make
the write-off process easier by requiring less paper during the submission process.
If you have any comments or questions regarding this policy memorandum, please
contact one of the following individuals:
Michelle Herzog 301-443-5307 mherzog@hrsa.gov
Carl Morehouse 301-443-1702 cmorehouse@hrsa.gov
Erika Verbeck everbeck@hrsa.gov
Mary W. Farrington
Chief
Campus Based Branch
Division of Health Careers Diversity & Development
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