FFELP and Direct Laon Records

Records that document Federal Family Education Loan Program (FFELP) and Direct Loan Programs including eligibility (student and/or parent), application, disbursement records, promissory notes, Student Status Confirmation Reports (SSCR), and other related records. To maintain current, complete, and accurate records of each loan that it holds, including, but not limited to All documentation supporting the claim filed by the lender; B) Notices of changes in a borrower's address; C) A payment history showing the date and amount of each payment received from or on behalf of the borrower by the guaranty agency, and the amount of each payment that was attributed to principal, accrued interest, and collection costs and other charges, such as late charges; D) A collection history showing the date and subject of each communication between the agency and the borrower or endorser relating to collection of a defaulted loan, each communication between the agency and a credit bureau regarding the loan, each effort to locate a borrower whose address was unknown at any time, and each request by the lender for default aversion assistance on the loan; E) Documentation regarding any wage garnishment actions initiated by the agency on the loan; F) Documentation of any matters relating to the collection of the loan by tax-refund offset; and G) Any additional records that are necessary to document its right to receive or retain payments made by the Secretary under this part and the accuracy of reports it submits to the Secretary. The records must be maintained in a system that allows ready identification of each loan's current status, updated at least once every 10 business days. Any reference to a guaranty agency under this section includes a third-party servicer that administers any aspect of the FFEL programs under a contract with the guaranty agency, if applicable. 

Category

Student Records

Maintainer

Finance Division

Retention Period

Unless otherwise directed by the Secretary-- (1) An institution shall keep records relating to its administration of the Federal Perkins Loan, FWS, FSEOG, Federal Pell Grant, ACG, or National SMART Grant Program for three years after the end of the award year for which the aid was awarded and disbursed under those programs, provided that an institution shall keep-- (i) The Fiscal Operations Report and Application to Participate in the Federal Perkins Loan, FSEOG, and FWS Programs (FISAP), and any records necessary to support the data contained in the FISAP, including ``income grid information,'' for three years after the end of the award year in which the FISAP is submitted; and (ii) Repayment records for a Federal Perkins loan, including records relating to cancellation and deferment requests, in accordance with the provisions of 34 CFR 674.19; (2)(i) An institution shall keep records relating to a student or parent borrower's eligibility and participation in the FFEL or Direct Loan Program for three years after the end of the award year in which the student last attended the institution; and (ii) An institution shall keep all other records relating to its participation in the FFEL or Direct Loan Program, including records of any other reports or forms, for three years after the end of the award year in which the records are submitted; and (3) An institution shall keep all records involved in any loan, claim, or expenditure questioned by a title IV, HEA program audit, program review, investigation, or other review until the later of-- (i) The resolution of that questioned loan, claim, or expenditure; or (ii) The end of the retention period applicable to the record. Schools must retain all required records for a minimum of three years from the end of the award year. However, the starting point for the three-year period is not the same for all records. For example, some Campus-Based program records must be kept for three years from the end of the award year in which the funds were awarded and disbursed.

Citation

34 C.F.R. 668.24

Disposition Instructions

Confidential destruction is required. Paper must be shredded, pulped, or incinerated; electronic records must be overwritten or the storage media physically destroyed. Deletion of information in computer files or on electronic storage media is not sufficient.

Last Updated: December 31, 2008