GHEAC Mardi Gras: Parade of Service 2003 GHEAC Annual Conference March 4 - 5, 2003

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GHEAC Mardi GrasParade of Service 2003 GHEAC
Annual ConferenceMarch 4 - 5, 2003
Program Reviews Regenia Jarrett, School Client
Relations Compliance Specialist Sarah Ergle,
Lender Client Relations Compliance Specialist
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Program Reviews

• Purpose of a guarantor program review
• Selection Process for reviews
• Preparation for the review
• The Program Review
• Specifics for Lender Reviews
• Specifics for School Reviews

2003 GHEAC Annual Conference
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Purpose of a Guarantor Program Review

• Department of Education mandates program reviews
• Protection for Students
• Protects federal fiscal interest
• Reduces risks

2003 GHEAC Annual Conference
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Selection Process

• How schools/lenders are chosen
• Type of review
• Survey
• Focused
• Concentrated

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Preparation for the Review

• Have requested documentation ready
• Designate contact person for each office involved
• Make sure servicer/consultant is available

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The Program Review

• Entrance Conference
• Records review
• Findings/comments
• Exit conference
• Written report, if applicable

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Review Procedures Lender/Servicer

• Loan origination
• Loan sales and transfers
• Loan servicing
• Due diligence
• Consolidation loans
• Deferments and forbearances
• ED Form 799 (LARS Reporting)
• NSLDS Reporting
• Record Retention

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Report Procedures

• Report is issued
• Response is due within 30 days
• If all issues resolved, report is closed
• If not, follow up will be conducted with lender
  until all issues are resolved and report is
  closed
• Department of Education receives copies of all
  reports

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Common Findings for Lenders

• Improper 799 billing
• Due diligence violations
• Incorrect conversion to repayment
• NSLDS error report not processed
• Unreconciled loan sales

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Specifics for School Reviews

• Institutional eligibility
• File review, student eligibility
• Review of internal procedures
• Review of RT4 calculations
• Review of cash management
• Review of financial statements
• Record retention

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Common Findings for Schools

• Incorrect RT4 calculations
• Late return of refunds
• Credit balances not paid
• Overlapping academic years
• Verification not complete
• Late release of proceeds
• Exit counseling not performed

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Report Procedures

• Report is issued
• Response due within 30 days
• Report is closed if all issues resolved
• If not, follow up will be conducted with school
  until all issues are resolved and report is
  closed
• Department of Education receives copies of all
  reports

2003 GHEAC Annual Conference