What is the minimum record retention period for a schools documentation of compliance with entrance or exit counseling requirements for a particular student loan borrower?
A. The minimum retention period is the same as for other records related to a FFEL Program borrower’s eligibility and participation – three years from the end of the award year in which the student last attended the school. Source: Federal Student Aid Handbook, Volume 2-School Eligibility and Operations, p. 2-164. Credit Balances (back to top) Q. A school applies a Federal Pell Grant payment to a student’s account after a disbursement of Federal PLUS Loan funds. May the school pay the credit balance to the Federal PLUS Loan parent borrower, or must it be paid to the student? A. If a credit balance remains after a Federal Pell Grant payment is credited to the student’s account, the balance must be returned to the student unless the student provides written authorization for the school to hold the credit balance. If a school cannot locate a student to whom an FSA credit balance must be paid (i.e., the school has exhausted all possible avenues to find the student), the school must return
