![](media/image1.jpeg){width="6.492361111111111in"
height="1.2868055555555555in"}

*Financial Management System*

*FFEL Lender Reporting System*

*Funds Remittance Guide*

September 04, 2007

Version -- 9.0

***Contents***

[***Electronic Funds Remittance 3***](#electronic-funds-remittance)

[Process Overview 3](#process-overview)

[Pre-Requisites 3](#pre-requisites)

[Paper Funds Remittance 4](#paper-funds-remittance)

[Process Overview 4](#process-overview-1)

[Submission Process 4](#submission-process)

[Form Overview 4](#form-overview)

[Questions & Answers 7](#questions-answers)

[Appendix A - FFEL Lenders' Interest & Special Allowance (LaRS)
Remittance Form
8](#appendix-a---ffel-lenders-interest-special-allowance-lars-remittance-form)

[Appendix B - FFEL Consolidation Loan Rebate Fee Report and Remittance
Form
9](#appendix-b---ffel-consolidation-loan-rebate-fee-report-and-remittance-form)

Introduction

The purpose of this document is to provide an overview of the Funds
Remittance process for the Lenders participating in the Federal Family
Education Loan Program (FFEL). This process facilitate the collection of
the following fees:

-   LaRS Fee

-   Consolidation Loan Rebate Fee

# Electronic Funds Remittance

## Process Overview

![](media/image2.wmf)

ACH Payments are all made through the FSA Financial Management System
(FMS) and processed through Pay.gov, an application hosted by the US
Department of the Treasury. Guidance for making ACH payments is
available at [Q &
A's](http://www.fp.ed.gov/fp/attachments/activities_whatsnew/RemittingFundsThroughACH.doc),
and [Pay.gov Funds Remittance
Guide](http://www.fp.ed.gov/fp/attachments/activities_whatsnew/PaygovFundsRemittanceFinal.pdf).

## 

## Pre-Requisites

All users must be active in FMS and have the "FSA LARS Lender/Servicer
Payment Submission" responsibility. Security access forms are available
at:
<http://www.fp.ed.gov/fp/attachments/fms_data_nslds/FSAFMSSYSSECURITY2006.doc>.
Users with additional questions should contact the FMS Help Desk at
1-800-433-7327, option 3.

# Paper Funds Remittance

## Process Overview

## 

## ![](media/image3.wmf)Submission Process

Mail completed Forms and a check made payable to the \"U.S. Department
of Education,\" with a notation for, and in the amount of, the Fee to:

U.S. Depart­ment of Edu­ca­tion

P. O. Box 979066

St. Louis, MO 63197-9000

## Form Overview

#### FFEL Lenders' Interest & Special Allowance (LaRS) Remittance Form Overview

### 

If a payment is due to the Department of Education as a result of the
LaRS processing, the FFEL Lenders' Interest & Special Allowance (LaRS)
Remittance Form should be filled out with Lender ID, Amount to be Paid,
and Lender's Check Number, and attached with the check payment. This
form will let FSA know the type of payment, and will make processing
much more expedited.

#### Field Definition

**1. Lender ID:** Enter your six-digit lender identification number
(LID). The "8" has been pre-filled for you.

**2. Amount to be Paid:** Amount of Interest and Special Allowance funds
included in check.

**3. Lender's Check Number:** Enter the number of your check.

**NOTE**: The FFEL Lenders' Interest & Special Allowance (LaRS)
Remittance Form is available in [Appendix
A](#appendix-a---ffel-lenders-interest-special-allowance-lars-remittance-form).

#### FFEL Consolidation Loan Rebate Fee Report and Remittance Form Overview

## 

**Applicability:** This FFEL Consolidation Loan Rebate Fee Report and
Remittance Form is used to report to the U.S. De­part­ment of Educa­tion
(ED) the Federal Con­soli­dation Loan Interest Pay­ment Rebate Fee
authorized by sub­section 428C(f) of the Higher Education Act of 1965, as
amended. Help on completing this Consolidation Loan Rebate Fee Report
and on correcting or adjusting prior Reports can be obtained from ED\'s
FM by calling the Help Desk at 1-800-433-7327, Option #3. **NOTE:** A
lender holding one or more Federal Consolidation Loans at the end of the
month must submit a payment for the Consolidation Loan Rebate Fee within
30 days of the end of the month for which the Fee is calculated.

**Form Preparation:** Submit the Consolidation Loan Rebate Fee Report
using a photocopy of the front page of this form, or by typing or
computer generating a facsimile of the front page of this form. If a
fac­sim­ile is pro­duced, include the form title, the ED form number, and
all material in the boxes on the front page of this form. The fac­simile
must be produced on 8½ x 11 inch plain white paper, and all items must
be arranged in the same order as on the form. The dollar symbols (\$)
must be included, but the lines outlining the boxes and the underlines
for each item may be omitted. The instructions for this form may also be
omitted. ED may reject a fac­sim­ile that does not meet these criteria.

**Fee Calculation:** The Federal Consolidation Loan Interest Payment
Rebate Fee is calculated and paid monthly to ED. It is equal on a
monthly basis to 0.0875 percent of the unpaid balance of principal and
the accrued unpaid interest on all Fed­eral Consolidation Loans disbursed
after October 1, 1993, and held by the lender on the last day of the
month. (This is equal to an an­nual­ized rate of 1.05 percent.) Except for
loans based on applications received during the period from October 1,
1998 through January 31, 1999, inclusive, for which the rebate is equal
on a monthly basis to .05167 percent of the unpaid balance of principal
and the accrued unpaid interest. (This is equal to an annualized rate of
0.62 percent.) Use the item-by-item instruct­ions in the fol­low­ing
paragraphs to calculate the Fee and to complete the Consolida­tion Loan
Rebate Fee Report on the front page of this form.

#### Field Definition:

> **1. Lender ID:** Enter your six-digit lender identification number
> (LID). The "8" has been pre-filled for you.
>
> **2. Servicer ID:** Enter your six-digit Servicer identification
> number, if applicable. The "7" has been pre-filled for you.
>
> **3. Reporting Period:** Enter the date of the last day of the month
> of the reporting period for which this Consolida­tion Loan Rebate Fee
> Re­port is being submitted. Enter the date in a \"month/year\" for­mat.
> Enter the month as two digits. Enter the year as four digits. For the
> purpose of the Consolida­tion Lo­an Rebate Fee Report, a month is always
> a calendar month, starting on the first of the month and ending on the
> last day (the 30th or 31st, except for February). A calendar month
> reporting cycle must be used for the Consolidation Loan Rebate Fee
> Report even if you use a different reporting cycle (e.g. from the 26th
> day of one month to the 25th day of the following month) for internal
> or other reporting purposes.
>
> **4. Applicable rate for Consolidation Loans Subject to the 1.05%
> fee:** This field has been pre-filled for you.
>
> **5. Number of Loans:** Enter the number of loans subject to the 1.05%
> fee used to calculate the Consolidation Lo­an Rebate Fee. To determine
> this number, review all Federal Consolidation Loans held by you at the
> end of the month­ and identify the loans that were dis­bursed on or
> after October 1, 1993, *except for loans based on applications
> received during the period from October 1, 1998 through January 31,
> 1999, inclusive which are subject to the 0.62% fee*. Include a loan
> even if you were not the orig­i­nating lender, you only pur­chased it at
> a later date. In­clude all loans eligible for insur­ance, even if an
> insurance claim has been filed, but not paid, as of close of busi­ness
> on the last day of the month.
>
> **6. End-of-Month Principal Balance:** Enter the Principal Balance
> used to determine the Consolidation Loan Rebate Fee. For all Federal
> Consolidation Loans meet­ing the re­quire­ments in item 5, Number of
> Loans, determine the unpaid principal bal­ance at the end of the day on
> the last day of the month. Payments re­ceived from bor­rowers on the
> last day of the month should be credited prior to deter­mining the
> unpaid prin­cipal balance. Add the un­paid principal balances for all
> loans to determine the End-of-Month Principal Bal­ance. You may round
> this total to the nearest dollar if desired.
>
> **7. End-of-Month Accrued Unpaid Interest Balance:** Enter the
> End-of-Month Accrued Unpaid Interest Balance used to determine the
> Consolidation Loan Rebate Fee. For each loan for which an End-of-Month
> Principal Balance (see item 6) was determined, determine its accrued
> unpaid interest bal­ance at the end of the day on the last day of the
> month. Payments re­ceived from bor­row­ers or ED on the last day of the
> month should be credited prior to determin­ing the accrued unpaid
> interest bal­ance. Add the accrued unpaid interest balances for all
> loans to determine the End-of-Month Accrued Unpaid Interest Balance.
> You may round this total to the nearest dollar if desired.
>
> **8 through 11:** Repeat the instructions for Items 4 through 7, as
> they apply to Consolidation loans based on applications received
> during the period from October 1, 1998 through January 31,1999,
> inclusive, which are subject to the 0.62% fee.)
>
> **12. Consolidation Loan Rebate Fee:** Enter the amount of the Federal
> Consolidation Loan Interest Payment Rebate Fee being paid at the time
> this report is submitted. To determine the amount of the Fee for the
> month, add the End-of-Month Principal Balance (see item 6) to the
> End-of-Month Ac­crued Interest Balance (see item 7). Multiply this sum
> by 0.0875 percent (that is, .0008750). To this amount, add the
> End-of-Month Principal Balance (see item 10) to the End-of-Month
> Accrued Interest Balance (see item 11) and then multiplied by .05167
> percent (that is, .0005167). Round the resulting product to the
> nearest dollar if desired. Prepare a check for this amount made out to
> the \"U.S. De­part­ment of Educa­tion,\" and with the notation
> \"Consolida­tion Loan Rebate Fee.\" (Refer to the \"Where to Sub­mit\"
> par­agraph at the beginning of the second page of this form for mailing
> instructions.) Please make sure that the amount reported in this item
> is the same as the amount of the check being submitted.
>
> **13. Lender's Check Number:** Enter the number of your check.
>
> **14. Lender Name:** Enter the name of the lender that holds the
> Federal Consolidation Loans reported in the Consolidation Loan Rebate
> Fee Report.
>
> **15. Signature:** Read the certification statement and sign the form
> [in ink]{.underline}. Forms signed with signature stamps and unsigned
> forms will be returned for a valid signature.
>
> **16. Date:** Enter the date the form is signed.
>
> **17. Typed Name & Title:** Type or print (do not write) the name and
> title of the official signing the form.
>
> **18. Contact Name & Phone #:** Print the name and the telephone
> number (including area code) of the person who can answer questions
> from ED about the holder\'s Federal Consolida­tion Loan portfolio and
> about this Consolidation Loan Rebate Fee Report. This person may be a
> representative of the servicer, or representative of the lending
> institution holding the loans.

**NOTE:** The FFEL Consolidation Loan Rebate Fee Report and Remittance
Form is available in [Appendix
B](#appendix-b---ffel-consolidation-loan-rebate-fee-report-and-remittance-form).

# Questions & Answers

#### Q: Whom do I contact if I have questions?

A: You can call the FSA Help Desk at 1-800-433-7327, option #3, or email
FSA_LR@ed.gov.

#### Q: When are payments due to FSA?

**A:** Origination fees (LaRS quarterly fees) must be paid within 30
days of invoice to avoid incurring finance charges. Consolidation Loan
Rebate Fees are due within 30 days of the end of the month of the month
for which the fee is calculated.

#### Q: Are there any other payment options besides ACH and paper?

**A:** No, all payments must be sent via ACH or by using the paper forms
when mailing a check.

#### Q: If I owe both Consolidation Loan and Interest & Special Allowance am I required to submit separate payments for each fee type? 

**A:** Yes, only one fee type per check, please! If submitting online,
each fee type will have a unique payment screen.

#### Q: How will payments be submitted to lenders?

**A:** All LaRS Payments are made to lenders via ACH. Be sure to notify
the Department if your ABA number or account number changes. These
changes can be sent to FSA_LR@ed.gov.

# Appendix A - FFEL Lenders' Interest & Special Allowance (LaRS) Remittance Form

![](media/image1.jpeg){width="4.592361111111111in"
height="0.9201388888888888in"}

**FFEL LENDERS' INTEREST & SPECIAL ALLOWANCE**

**(LaRS) REMITTANCE FORM**

(For use in remitting fees associated with the quarterly LaRS
submissions -- formerly known as the ED Form 799.)

***Collection Type -- LARS***

1\. Lender ID: [**8**]{.underline} \_\_ \_\_ \_\_ \_\_ \_\_

2\. Amount to be paid: \$ \_\_ \_\_ **,** \_\_ \_\_ \_\_ **,** \_\_ \_\_
\_\_ **.** \_\_ \_\_

3\. Lender's Check Number: \_\_ \_\_ \_\_ \_\_ \_\_ \_\_ \_\_ \_\_ \_\_
\_\_ \_\_ \_\_

Please complete the box above and submit payment to:

U.S. Department of Education

P.O. Box 979066

St. Louis, MO 63197-9000

# Appendix B - FFEL Consolidation Loan Rebate Fee Report and Remittance Form

![](media/image1.jpeg){width="3.9631944444444445in"
height="0.7854166666666667in"}

# 

**FFEL CONSOLIDATION LOAN REBATE FEE REPORT and REMITTANCE FORM**

**Collection Type - CLRF**

1\. Lender ID: **[8]{.underline}** \_\_ \_\_ \_\_ \_\_ \_\_ 2. Servicer
ID: **[7]{.underline}** \_\_ \_\_ \_\_ \_\_ \_\_ (Optional)

3\. Reporting Period: \_\_ \_\_ / \_\_ \_\_ \_\_ \_\_

\(MM\) (YYYY)

4\. **Consolidation Loans Subject to the 1.05% fee; applicable rate:
[0]{.underline} [0]{.underline} [0]{.underline} [8]{.underline}
[7]{.underline} [5]{.underline} [0 ]{.underline}**

5\. Number of Loans: \_\_ \_\_ \_\_ **,** \_\_ \_\_ \_\_ **,** \_\_ \_\_
\_\_

6\. End-of-Month Principal Balance: \$ \_\_ \_\_ \_\_ **,** \_\_ \_\_
\_\_ **,** \_\_ \_\_ \_\_ **,** \_\_ \_\_ \_\_ **.** \_\_ \_\_

7\. EOM Accrued Unpaid Interest Balance: \$ \_\_ \_\_ \_\_ **,** \_\_
\_\_ \_\_ **,** \_\_ \_\_ \_\_ **,** \_\_ \_\_ \_\_ **.** \_\_ \_\_

8\. **Consolidation Loans Subject to the 0.62% fee, applicable rate:
[0]{.underline} [0]{.underline} [0]{.underline} [5]{.underline}
[1]{.underline} [6]{.underline} [7]{.underline}**

9\. Number of Loans: \_\_ \_\_ \_\_ **,** \_\_ \_\_ \_\_ **,** \_\_ \_\_
\_\_

10\. End-of-Month Principal Balance: \$ \_\_ \_\_ \_\_ **,** \_\_ \_\_
\_\_ **,** \_\_ \_\_ \_\_ **,** \_\_ \_\_ \_\_ **.** \_\_ \_\_

11\. EOM Accrued Unpaid Interest Balance: \$ \_\_ \_\_ \_\_ **,** \_\_
\_\_ \_\_ **,** \_\_ \_\_ \_\_ **,** \_\_ \_\_ \_\_ **.** \_\_ \_\_

12\. **Total Consolidation Loan Rebate Fee**: \$ \_\_ \_\_ \_\_ **,**
\_\_ \_\_ \_\_ **,** \_\_ \_\_ \_\_ **.** \_\_ \_\_

13\. Lender's Check Number: \_\_ \_\_ \_\_ \_\_ \_\_ \_\_ \_\_ \_\_ \_\_
\_\_ \_\_ \_\_

14\. Lender Name:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

15\. Signature:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 16.
Date: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

17\. Typed or Printed Name & Title:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

18\. Contact Name & Phone #:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

ED Form 4-619 OMB No.: 1845-0046

Expiration Date: 04/30/2008

Please remit to: U.S. Dept. of Education, P.O. Box 979066, St. Louis, MO
63197-9000