March 8, 2011

OGSLP's PUT Loan Processing

We understand the challenges you face when managing PUT loan volume. That’s why our processing system has been enhanced to “unput” loans submitted to ED that didn’t meet the criteria outlined in the Master Loan Sale Agreement. The system enhancements enable users to easily perform:

• Lender/servicer code corrections.
• Cancellations.
• Loan increases/decreases.
• Disbursement date corrections.
• Process fee billing adjustments.

Additionally, through the collaborative efforts, diligence and hard work of industry partners, reference materials were developed to offer guidance specifically for processing “unput” loans. This compilation of information includes a Q & A (PDF) developed by the National Council of Higher Education Loan Programs and the Student Loan Servicing Alliance. It provides general information about PUT loans and repayment, default aversion and claims processing and Title IV Additional Servicers. A Repurchase Referral Loan Detail Report (XLS) is also available. Lenders and servicers are strongly encouraged to use this spreadsheet to identify the loan(s) as "unput" and to provide the number of "PUT" months (period loans were held as Department asset) used.

If you have questions, contact our Default Prevention Department at 405.234.4352, 800.358.5460 (toll free) or statuschanges@oglsp.org.