Effective Date: 07/01/00
Procedure Statement 16: Assigning Delinquent Accounts
The Student Loans Office does not have any internal collectors and uses outside collection agencies. Accounts that fall in aging category "greater than 120" are reviewed for assignment to an outside agency.
- Using the aging report, reviews accounts in the "more than 120 days" category and decides on two different groups. One group, considered collectable, is placed in a pending file. The second group, considered uncollectable, is placed with the Attorney General.
- Key codes on the computer system with the appropriate collector code.
- Reviews report assigned to the Attorney General.
- Decides disposition of accounts:
- If "Cured" code is removed.
- If sent to a Collection Agency, codes account accordingly.
- If Attorney General files suit, codes for litigation.
- If account starts paying, sets up a repayment agreement and removes code. If borrower does not keep agreement sends to a collection agency.
- If due diligence has been exercised, account is assigned to The Department of Education.