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CANCEL LOANS
A task order may require the contractor to process loan
cancellations. A loan cancellation is the complete reversal
of a loan. For example, if a borrowers status changes and the
borrower is therefore not eligible for the loan, than the loan
will be completely canceled.
Agencies may require a contractor to cancel
loans being serviced by the contractor. Agencies may issue task
orders that include requirements for this service which are
similar to the services described below. A task order may require
any combination of these services. These services illustrate
some of the types of tasks that the contractor may be required
to perform under this contract, but this is not intended to
be an all inclusive list. Rather, it illustrates the types of
services a contractor may provide.
A task order for this service may include,
but is not limited to the following types of tasks:
- Reverse all financial entries on booked loans (as specified
in a task order) after receipt of notification that a loan
is canceled and transmit the account adjustments to an agency’s
central database during the next transaction transmission.
- Send a written notification of loan cancellation to each
applicable borrower and a revised repayment schedule if the
borrower has additional outstanding loans that are in repayment.
- Confirm loan cancellation amounts and account adjustments
through periodic reconciliation.
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