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When I was a student, one of my student loans was a Federal Perkins Loan. I was done paying the loan fully about 5 months ago. Since then I called couple times to the university asking about it, and they said that they send an end of loan letter thingy within 30-90 days of the loan final payment date. I called again, and the school's loan officer was not able to find any record in their system for sending any letter.

As each monthly loan payment was made to the school itself, I assume that they are responsible for any and all communications regarding the loan itself. I used to get somewhat monthly letters of bill stating due dates and so on. Are there federal regulations regarding what the school has to do when a loan is over? Are there any penalties that the school may get if they do not send a letter stating the loan is over?

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There are federal regulations that state that:

     "The various offices at the school—the admissions, business, alumni,
placement, financial aid, and registrar’s offices, and others, as necessary—
must provide any available information about the borrower that is relevant
to loan repayment."

As a result it can be assumed that when a loan is paid off, notification should be given to the borrower. There is not a penalty since schools are pretty good about recovering their money. It could be due to a simple human error or glitch in the system. I would email them again confirming that your Perkins Loan had been paid in full, just so you have documentation of it.

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