This assessment provides you with an opportunity to review procedures regarding the Federal Perkins due diligence process. Additional links are provided to assist you in the evaluation of your due diligence efforts.
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Why start with policies and procedures?
Reviewing and developing policies and procedures is a good place to begin when evaluating your financial aid operations. It is difficult to assess your compliance on an individual student level if your policies and procedures aren't fully developed, are inaccurate or are not being consistently followed. Completing the policies and procedures prior to any other activities will help you identify additional areas to evaluate and will assist you in making the most of your compliance efforts.
For Perkins due diligence we recommend that you start with the following Activities from the policies and procedures Design Process Chart: Activity 4 (Billing section, Collection section and Litigation section). In addition, you may find it helpful to select a topic related to Federal Perkins Loan Processes to provide you with a policy and procedure template. Use this template to either assist you in creating a new policy and procedure or to test your current policies and procedures.
If you identify areas requiring a corrective action, we recommend that you complete the Management Enhancement Worksheet.
Activity Bar:
Federal Perkins Due Diligence Activity 1: Exit Interview
Federal Perkins Due Diligence Activity 2: Grace Periods
Federal Perkins Due Diligence Activity 3: Billing Activity
Federal Perkins Due Diligence Activity 4: Due Diligence Worksheet
Additional Links: 2008-09 FSA Handbook, Campus-Based Programs, Chapter 5
| Federal Perkins Due Diligence | Activity |
| Default Status and Student Eligibility 674.33(g), 674.39, Federal Register 11/1/2000 |
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| Due Diligence - general requirements 674.41(a) Mandatory Assignment 674.8(d)(3); Federal Register, November 1, 2007 |
Federal Perkins Due Diligence Activity 4: Due Diligence Worksheet |
| Contact with the borrower - Disclosure of Repayment Information 674.42(a) | |
| Exit Interviews - 674.42(b) | Federal Perkins Due Diligence Activity 1: Exit Interview |
| Contact during Grace Periods 674.42(c) | Federal Perkins Due Diligence Activity 2: Grace Periods |
| Billing procedures 674.43 | Federal Perkins Due Diligence Activity 3: Billing Activity |
| Late Charges 674.43(b)(2) | |
| Notices of Overdue payments 674.43(b) and (c) | |
| Telephone Contact 674.43(f) | |
| Loan Acceleration 674.43(e) | |
| Address Searches 674.44 | |
| Collection Procedures 674.45 | |
| Litigation Procedures 674.46 | |
| Costs chargeable to the Fund: Billing and Collection Costs 674.47 | |
| Use of contractors to perform billing and collection or other program activities. Using Billing and Collection Firms 674.48 | |
| Bankruptcy of borrower 674.49 | |
| Assignment of defaulted loans to the United States 674.50 | |
