PCA Procedures Manual

PCA Procedures Manual:

2009 ED Collections Contract

U.S. Department of Education

Prepared by: Federal Student Aid Operation Services Processing Division Last Updated: September, 2009

"Resolving the past, today, for a better tomorrow"

PCA Procedures Manual - 2009

Disclaimer

This PCA Procedures Manual is designed to enhance and expound upon contractual requirements as outlined in the RFQ and the Statement of Work. The Manual establishes many of the day-to-day procedures and policies necessary for Private Collection Agencies to collect defaulted federal student loans and grant overpayments under the U. S. Department of Education collections contract. The Manual does not provide comprehensive guidance of all regulatory and contractual requirements. Nor does the Manual relieve private collection agencies and affiliated contractors of their obligation to comply with all of the statutory and regulatory provisions governing the statement of work. In addition, it does not relieve the above from compliance with all contract requirements and other statutes and guidelines (including specific processing/training manuals) that are applicable to the ED collections contract.

2

PCA Procedures Manual - 2009

Table of Contents

Introduction: Overview

Chapter 1: Laws and Regulations

1. Loan and Grant Programs A. Federal Family Education Loan (FFEL) B. Federal Direct Loan C. Federal Perkins Loan D. Federal Pell Grant E. Academic Competitiveness Grant F. SMART Grant G. TEACH Grant H. Supplemental Educational Opportunity Grant (SEOG

2. Fair Debt Collection Practices Act (FDCPA) 3. Freedom of Information Act (FOIA) 4. Privacy Act of 1974 5. Gramm-Leach-Bliley Act 6. Credit Bureau Reporting 7. Collection Costs 8. Statute of Limitations 9. Restoring Title IV Eligibility (borrower

A. Federal Student Loan Programs B. Grant Overpayments

**************************

Chapter 2: General Collection Activities

1. Documentation of Collection Activity A. DMCS Updates L103 screen (borrower demographics) L102 Screen (collection notepad)

2. Cell Phone Usage 3. Pseudo SSNs 4. Third Party Contacts 5. Federal Employees 6. Co-Maker Accounts 7. Suspension of Collection Activity 8. Cease Collection Activity

**************************

3

PCA Procedures Manual - 2009

Chapter 3: Correspondence & Borrower Complaints

1. Correspondence A. Handling Correspondence B. Sensitive Inquiries C. Maintaining Documentation D. Correspondence Report E. Atlanta Regional Office Email Mailbox

2. Borrower Complaints (against PCAs) A. Receiving Complaints B. Complaint Submissions C. Complaint Protocol D. ED Tracking System

3. Appendix (Forms) A. PCA Complaint Form

**************************

Chapter 4: PCA Letters

1. PCA Letter Approval and Usage A. Contract Start-up B. Revisions, New Letters C. Letter Vendor Changes

2. Rehabilitation Agreement Letter 3. Consolidation Letters

A. Rights & Responsibilities B. Waiver of Consolidation 4. Repayment Agreement Letters A. Standard Language B. Standard language with Credit Card Authorization 5. AWG letters A. Pre-Garnishment Cover Letter B. Pre-Garnishment Settlement Agreement C. Post Garnishment Cover Letter D. Post Garnishment Settlement Agreement E. AWG Rehab Agreement Letter F. AWG Rehab Agreement Letter (Perkins 6. Misdirected Payment Letters A. Borrower B. Employer 7. Compromise Agreement Letter 8. Statement of Financial Status

**************************

4

PCA Procedures Manual - 2009

Chapter 5: Internal Mail Forms (IMFs)

1. Written IMFsX A. General Account IMF B. AWG IMF

2. Online IMFs A. URL B. Login C. Initiating a Request D. On-Line IMF E. School-Based Discharges F. Locating a Missing Pnote Request G. Viewing Erroneous IMFs

2. Appendix (Forms A. General Account IMF B. AWG IMF

**************************

Chapter 6: Account Repayment

1. Payment or Settlement in Full 2. Repayment Schedules 3. Special Assistance Unit (SAU)

A. Referrals B. Borrower Calls

Chapter 7: Compromises

**************************

1. General Requirements 2. Standard Compromises 3. Discretionary Compromises 4. Non-Standard Compromises

A. Limitations B. Netback C. Notification 5. Required DMCS Notations 6. Compromises & TOP Payments 7. Compromises & AWG Payments 8. Return of Paid Compromises 9. Compromise Monitoring 10. Appendix (Forms A. Discretionary Compromise Coversheet

**************************

5

PCA Procedures Manual - 2009

Chapter 8: Treasury Offset Program (TOP)

1. Overview A. State Payments B. Pre-Offset Process C. PCA Responsibilities D. Certification E. Notification F. Inactivation

2. Hardship Requests A. Tax Refund Offsets B. Injured Spouse Claims & TOP Reversals C. Social Security Benefits/Monthly stipends D. PCA Contacts

3. Appendix A. DMCS Screen Shots B. Sample Treasury Offset Notice

**************************

Chapter 9: Rehabilitation

1. Direct Loan Rehabilitation A. Eligible Loans B. Qualifying Payments C. Acceptable Payments D. Monthly Transfer Process E. Exception Requests F. Special Circumstances G. Post-Submission Procedures H. Non-Direct and Direct Loan Accounts I. Minimum Payment Amounts Table

2. NDSL-Perkins Loan Rehabilitation A. Eligible Loans B. Qualifying Payments C. Acceptable Payments D. Monthly Transfer Process E. Submission Procedures F. Exception Requests G. Special Circumstances H. Judgment Loans I. Post-Submission Procedures J. Accounts containing Perkins and other debt types

3. FFEL Loan Rehabilitation A. Eligible Loans B. Qualifying Payments C. Acceptable Payments

6

PCA Procedures Manual - 2009

D. Balance Sensitive Rehabs (BSRs E. Weekly Transfer Process F. Submission Procedures G. Exception Requests H. Special Circumstances I. Post-Submission Procedures J. Pay off not Posted as Expected K. Accounts containing FFEL and Direct Loans L. Minimum Payment Amounts Table M. Lender Information 4. Payment Count Program A. Manual Requests B. Batch Requests C. Retrieve Results D. File Layouts

**************************

Chapter 10: Consolidation

1. General Requirements A. Eligible Loans B. Qualifying Payments C. Acceptable Payments

2. Forced-ICRPs A. Processing Steps

3. Borrower Counseling A. Capitalization of Interest rates/Collection Costs B. Fixed Interest Rates C. Underlying Loans D. Right to Consolidate E. Credit Bureau Reporting F. Title IV Eligibility

4. Certification A. LVC Signing Authority B. LVC Reviews C. DMCS Updates

5. Appendices A. LVC Responsibilities Certification B. DMCS Screens C. Fast-Track Procedures D. Fast-Track Checklists E. Fast-Track Caps F. Fast-Track Edits Edits LCC Document Checklist G. LVC (Excel Version)

7

PCA Procedures Manual - 2009

H. Post Fast-Track Submission and Funding Issues Underfunding Correction Request Form

I. Borrowers who Consolidate Directly

**************************

Chapter 11: Locating Promissory Notes

1. Program Determination 2. Direct Loans

A. Panagon Image Search B. Direct Loan Website C. On-Line IMF 3. FISLs A. R105 Screen B. Panagon Image Search C. Panagon Non-Image Search D. On-Line IMF 4. NDSLs/Perkins Loans A. Panagon Image Search B. Panagon Non-Image Search C. On-Line IMF 5. FFELs Guaranteed by NY and HEAF A. Panagon Non-Image Search B. Panagon Image Search C. On-Line IMF 6. FFELs (NOT Guaranteed by NY and HEAF) A. Panagon Image Search B. On-Line IMF 7. Locating Promissory Notes - Checklist 8. Appendices A. Panagon Common Retrieval Navigation B. Program Overpayment (POVR C. On-Line IMF - Missing PNote Steps

**************************

Chapter 12: Account Returns & Administrative Resolutions

1. General Requirements A. SSU/Manifest B. Transmittal Form C. ED Monitor Review D. Appeals

2. Account Returns A. Cost Exceeds Recovery (CER B. Compromises (CPR)

8

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download