Posted Date: May 27, 2011

Author:  Jana Hernandes, Service Director, Operations, Federal Student Aid

Subject: Total and Permanent Disability Discharge Information - All Veterans Processing Performed by Nelnet Total and Permanent Disability Servicer Effective June 1, 2011

In a March 25, 2011 Electronic Announcement posted on the Information for Financial Aid Professionals (IFAP) Web site, we informed the community that the Nelnet Total and Permanent Disability Servicer (located in Denver, CO) had begun processing and servicing all general (non veterans) total and permanent disability discharge assignments and referrals on behalf of the Department of Education (the Department).

Effective June 1, 2011, the Nelnet Total and Permanent Disability Servicer will also begin processing and servicing all veterans total and permanent disability discharge assignments and referrals on behalf of the Department. This will include all assignments and referrals currently in process and all new assignments and referrals going forward.

Veterans Total and Permanent Disability Discharge Processing – Loan Holders

Loan holders will—

  • Submit new referrals for veterans total and permanent disability discharge to the Nelnet Total and Permanent Disability Servicer.
  • Work with the Nelnet Total and Permanent Disability Servicer to complete all assignments and referrals submitted by loan holders prior to June 1, 2011.

In addition, borrowers will now contact the Nelnet Total and Permanent Disability Servicer for questions about loans referred to the Department for veterans total and permanent disability discharge.

In two electronic announcements (one for guaranty agencies and one for Perkins assignments) posted on September 10, 2010, we provided loan holders with the information they need to submit veteran total and permanent disability discharge assignments and referrals to the Nelnet Total and Permanent Disability Servicer.

Veterans Processing and Customer Service Going Forward

With this final transition, we will update the following IFAP Contact Information pages:

Contact Information

We appreciate the community’s support as we have transitioned to the Nelnet Total and Permanent Disability Servicer.

If you have questions about the processing or servicing of loans assigned or referred to the Department for total and permanent disability discharge, contact the Nelnet Total and Permanent Disability Servicer outlined on the IFAP Contact Information pages identified above.

   

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