Current through Reg. 50, No. 187; September 24, 2024
The Commissioner shall exercise every reasonable effort to
collect all amounts due on student loan agreements. When such effort has not
resulted in the collection of a loan and it is determined that an account is
severely delinquent, the Commissioner is authorized to implement the following
procedures:
(1) For those accounts
determined to be severely delinquent, the Commissioner is authorized to
contract for commercial collection services to assist in collecting the amount
due. The terms of the contract shall include a detailed description of all
obligations and procedures of both parties.
(a) To be classified as severely delinquent,
an account must have a minimum of four (4) payments past due.
(b) Accounts assigned to a commercial
collection agency shall be assigned and settled in the following manner:
1. Interest shall continue to
accrue.
2. The principal balance,
plus accrued interest to date of assignment, shall be the amount
assigned.
3. The account shall be
considered paid in full when the borrower pays the collection agency the
assigned amount plus accrued interest.
4. The Commissioner or designee shall provide
the collection agency all appropriate information from Department files about
the account.
(c) The
collection agency shall return to the Commissioner without charge or claim to
any future commission any assigned account for which:
1. The borrower has proven that the account
was entitled to deferment or cancellation provisions during the period of
delinquency for which the account was assigned.
2. Notice of the death of the borrower has
been received.
3. Notice of
bankruptcy of the borrower has been received.
4. Notice of the total and permanent
disability of the borrower has been received.
5. The collection agency has been unable to
contact the borrower for a period of six (6) months.
(d) The collection agency shall maintain
complete and accurate records of assigned accounts and shall provide the
Commissioner or designee with monthly reports on the status of each assigned
account.
(e) The collection agency
shall provide services pursuant to a written contract; provided, however, that
no contract shall provide for and no agency shall be paid a commission in
excess of thirty-five (35) percent of the amount collected on an assigned
account.
(2) The
Commissioner shall have the authority to charge off unpaid and uncancelled
scholarship loan notes or student loan agreements which are deemed to be
uncollectible; provided, however, that no account of any borrower determined to
have known assets subject to suit shall be uncollectible.
(a) To be charged off as uncollectible, an
account shall be at least three (3) years past due.
(b) A record of the historical collection
effort shall be fully and uniformly documented on a form designed for the
purpose.
(c) The charge off action
shall be recommended by the Director of the Office of Student Financial
Assistance and approved by the Commissioner.
(d) The balance of all accounts charged off
as uncollectible shall be placed in a recovery account as provided in
subsection 6A-20.024(3),
F.A.C.
(e) The local credit
reporting agency in the last known city of permanent residence of the borrower
shall be notified of the charge off action, as well as the agency in the city
in which the charge off action takes place.
(3) The Commissioner is authorized to
establish a recovery account for the purpose of maintaining accurate records on
accounts charged off as uncollectible or otherwise settled.
(a) The account number, balance, date of last
payment and date of settlement of each account settled for death, bankruptcy,
total disability or uncollectible small balance shall be entered.
(b) The account number, balance, date of last
payment and date of charge off of each account charged off as uncollectible
shall be entered.
(c) Provision
shall be made for credit of any payment received after the date of the charge
off.
(d) Totals of amounts settled
or charged off as uncollectible in each type of scholarship or loan program
account shall be maintained.
Rulemaking Authority
1001.02(1),
1009.95(7) FS.
Law Implemented 1009.95
FS.
New 10-7-75, Amended 12-9-75, Formerly 6A-7.395, 6A-7.0395,
Amended 12-28-86.
