Use the annual review to assess the collectibility of any loan more than three years past due.

Retain loans deemed collectible if:

• The repayment period has not expired and you assess the prospects of collecting as good

Conduct a semi-annual collection effort for each loan deemed collectible.

• Use collection methods consistent with others used by the school
• Document the date and content of each collection effort

Declare a loan over 120 days delinquent to be uncollectible if:

• The loan has been discharged in bankruptcy
• The loan repayment period has expired
• There is evidence the loan cannot be collected
• You deem the future prospects of collecting not promising

Document the date of final determination of uncollectible as part of borrower's record.