9/19/11
Federally-Owned Loan Transfer Initiatives for Sept/Oct 2011
On Sept. 16, the Department of Education (ED) announced it will continue its transfer initiatives to enhance the efficiency of borrower services by its loan servicers. During September and October, ED will implement the following initiatives:
- Rehabilitated/Reinstated Loans with Student Loan Servicing Center (ACS) – ED will transfer rehabilitated (defaulted loans that went through the rehabilitation process) and reinstated (loans discharged due to total and permanent disability, but now the borrower no longer meets the requirements) loans from ACS to Great Lakes. Transfers are scheduled for Sept. 21.
- DL and FFEL-Purchased Loans Split Among Servicers – ED will continue to group an individual borrower's loans with a specific servicer. Under this initiative, if a borrower has loans being serviced by Great Lakes, ED will transfer the borrower's other loans being serviced by other servicers (PHEAA, Nelnet and Sallie Mae) to Great Lakes. Transfers are scheduled to begin on or about Sept. 21, after which ED will make some transfers from Great Lakes back to the other servicers beginning on or about Oct. 3.
For further information about these transfer initiatives and for a brief Q&A provided by ED, please see ED's e-nnouncement.
If you have a policy or compliance question regarding this e-nnouncement or another Title IV issue, please contact our Policy, Compliance and Training Department at 405.234.4432 or pct@ocap.org. We're here to help!
OCAP Communications
P.O. Box 3000
Oklahoma City, OK 73101-3000
Communications@ocap.org
www.ocap.org