November 5, 2009

Enhancements to the Withdraw/Cancel Regulation B Letter Process

Fall is finally here and we all know what that means: sweaters, scarves, colorful leaves and system enhancements at OGSLP!

As a result of the Higher Education Opportunity Act’s new lender disclosure provisions, borrowers must be notified if they applied for a loan and the loan request was subsequently withdrawn or cancelled. At that time, OGSLP’s system was modified to meet this requirement. Over time, it was determined that a letter was not required when:

• The loan request was not initiated by the borrower.
• It was a duplicate loan request.
• The loan request needed to be cancelled and re-added.

These welcome changes are scheduled for implementation on Nov. 16, 2009. We’ve made several modifications, including:

• Printing more clear and concise cancellation/withdrawal reasons on the letters, which will be generated in smaller quantities.
• For post-guarantee loan withdrawal or cancellation requests through OpenNet Web Loan Delivery (ONWLD), the logic has been updated to include specific reasons. If a loan is being withdrawn or fully canceled and the processor selects “duplicate loan” as the reason, the Withdraw/Cancel Regulation B letter will be suppressed. This will result in the generation of fewer letters and reduced confusion for the borrowers.
• For those loan withdrawal or cancellation requests that still result in the generation of a letter, the letter has been updated to include more clear and concise reasons, resulting in better information for the borrower.

You can expect an increase in the overall efficiency at your office and a significant decrease in call volume about canceled or withdrawn loans. We’re committed to sharing valuable information with you that will have a positive impact on you and your borrowers. For more information about these enhancements, please contact Lisa Hale at 800.442.8642 or lhale@ogslp.org.