Answer:
Increasingly, record retention requirements are becoming "forever or the next best thing." Different regulations have different requirements. One of the longest regulatory requirement presently on the books is the five years required by Bank Secrecy. On student loans, however, the record retention requirements for lenders are set forth in 34 CFR 682.414, in subsections (a)(iii) and (a)(iv) as follows:
(iii) Except as provided in paragraph (a)(4)(iv) of this section, alender must retain the records required for each loan for not less than 3 years following the date the loan is repaid in full by the borrower, or for not less than five years following the date the lender receives payment in full from any other source. However, in particular cases, the Secretary or the guaranty agency may require the retention of records beyond this minimum period.
(iv) A lender shall retain a copy of the audit report required under Sec. 682.305(c) for not less than five years after the report is issued.
First published on BankersOnline.com 3/05/01
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