17.5.4  Collections

On a monthly basis CARES will issue a loan summary describing the payments received, the outstanding balance, and the next payment due date. If no payment or a partial payment has been recorded in CARES by the end of the month, a dunning or past due notice will be mailed.

If a loan recipient moves out of a W-2 agency’s geographic area of responsibility, the W-2 agency must attempt to modify the repayment schedule prior to the move to recover as much of the loan as possible. If the individual relocates before the loan is repaid in full, the originating W-2 agency will continue to collect cash repayment and should require a new in-kind community service plan, if applicable. If the loan recipient has an open W-2 case in the new W-2 agency, the loan recipient may make loan payments at the new W-2 agency. PACS is responsible for posting the payments in CARES.

In most cases, JALs cannot be written-off in bankruptcy proceedings.  If a loan recipient files bankruptcy and has included the JAL, the W-2 agency should submit the bankruptcy notice to the PACS: PO Box 8938 Madison WI 53708-8938 Fax: 608/266-8302.

 

 

History: Release 22-02.