Posted Date: June 3, 2010

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

Subject: Loan Servicing Information - Delinquency Prevention Activities Offered by FedLoan Servicing (PHEAA), Great Lakes Educational Loan Services, Inc., Nelnet, and Sallie Mae

In Electronic Announcements posted on the Information for Financial Aid Professionals (IFAP) Web site on August 28, 2009 and September 16, 2009, we explained our transition to additional servicer support for Title IV loans that the Department of Education (the Department) owns and services. Currently, these federally-owned loans include William D. Ford Federal Direct Loan (Direct Loan) Program loans and Federal Family Education Loan (FFEL) Program loans purchased by the Department under the authority granted the Secretary in the Ensuring Continued Access to Student Loans Act (ECASLA) and through methods commonly referred to as a “PUT.”

In early September 2009, the Department began assigning FFEL Purchased Loans to the four new servicers on our federal loan servicing team—FedLoan Servicing (PHEAA), Great Lakes Educational Loan Services, Inc., Nelnet, and Sallie Mae. Since that time, we have posted a number of Electronic Announcements in our “Loan Servicing Information” series that provide information about our servicing of federally-owned loans. In a March 26, 2010 Electronic Announcement, we provided an up-to-date overview of how we are currently servicing federally-owned loans. This overview included servicer-specific “School Support Services” documents focusing on delinquency/default prevention assistance that FedLoan Servicing (PHEAA), Great Lakes Educational Loan Services, Inc., Nelnet, and Sallie Mae are providing to customers.

In this announcement, we provide a comprehensive list of borrower support activities that FedLoan Servicing (PHEAA), Great Lakes Educational Loan Services, Inc., Nelnet, and Sallie Mae provide. This information, available in the attachment titled “Delinquency Prevention Activities Offered by FedLoan Servicing (PHEAA), Great Lakes Educational Loan Services, Inc., Nelnet, and Sallie Mae,” lists activities that are provided by all four servicers (pages 1 - 3) and activities that are provided by some of the four servicers (page 4).

If a school has questions about the borrower support activities offered by the specific servicers with which it works, the school should contact the servicers directly. Doing so will ensure that the school receives the information it is seeking and develops the working relationship it must have with each of the four servicers— FedLoan Servicing (PHEAA), Great Lakes Educational Loan Services, Inc., Nelnet, and Sallie Mae. School contact information for these servicers is also available on the IFAP Web site’s Loan Servicing Centers for Schools page.

We appreciate the community’s ongoing support of our approach to servicing federally-owned loans.

Attachments/Enclosures:

Delinquency Prevention Activities Offered by FedLoan Servicing (PHEAA), Great Lakes Educational Loan Services, Inc., Nelnet, and Sallie Mae in PDF Format, 45KB, 4 Pages

   

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