2808.01.08  ASSIGNMENT OF DEFAULTED LOANS

Reference:  NACUBO/SLCP, pp. 56-68; NASFAA Encyclopedia 5.9.10.

The institution may assign uncollectible loans (loans having been in default 
two or more years and having been referred to at least two collection agencies) 
to the Department of Education. Loans so assigned become the property of the 
federal government, which may collect on the loans without recompense to 
the institution.  Assignment periods are discreet and criteria are stringent.  
Instructions for participating in the assignment process are sent to the 
institution by the Department of Education on an annual basis.