Posted Date: August 13, 2010

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

Subject: Total and Permanent Disability Discharge Information - Transition to New Servicer Planned for October 1, 2010 (Updated May 27, 2011)

May 27, 2011 Note: Effective April 1, 2011, the Nelnet Total and Permanent Disability Servicer will process and service all general (non veterans) total and permanent disability discharge assignments and referrals. For complete details, including links to updated contact information, refer to the Electronic Announcement posted on March 25, 2011. Effective June 1, 2011, the Nelnet Total and Permanent Disability Servicer will also process and service all veterans total and permanent disability discharge assignments and referrals. For complete details, including links to updated contact information, refer to the Electronic Announcement posted on May 27, 2011.

We are pleased to announce the recent award of our total and permanent disability servicer contract to Nelnet. Beginning October 1, 2010, the Nelnet Total and Permanent Disability Servicer will receive and process general total and permanent disability discharge assignments on behalf of the Department of Education (the Department).

This announcement is the first in a series of announcements through which we will provide information to loan holders-lenders and guaranty agencies for the Federal Family Education Loan (FFEL) Program and schools for the Federal Perkins Loan (Perkins Loan) Program-about the transition to the Nelnet Total and Permanent Disability Servicer. This transition will include the continuation of work with the current total and permanent disability discharge servicing centers for a period of time after the Nelnet start on October 1, 2010.

In this announcement, we provide basic identification information for the Nelnet Total and Permanent Disability Servicer and summarize the overall transition plan for general total and permanent disability discharge assignments from the loan holder and borrower perspectives. In addition, we explain that the process for veterans total and permanent disability discharge referrals will not change on October 1, 2010.

We present the information in this announcement as follows:

  • Nelnet Total and Permanent Disability Servicer NSLDS Identification Information

  • General (Non Veterans) Total and Permanent Disability Discharge Processing Beginning October 1, 2010 - Loan Holders

  • General (Non Veterans) Total and Permanent Disability Discharge Processing Beginning October 1, 2010 - Borrowers

  • Veterans Total and Permanent Disability Discharge Processing Beginning October 1, 2010 - Loan Holders and Borrowers

  • Contact Information

Nelnet Total and Permanent Disability Servicer NSLDS Identification Information

As the community is aware, Nelnet is also one of the Department's federal loan servicers. Given its dual servicer roles, Nelnet will have two National Student Loan Data System (NSLDS) entity identifications-one for Nelnet as a federal loan servicer and another for Nelnet as the total and permanent disability servicer.

The Nelnet Total and Permanent Disability Servicer NSLDS identification information is as follows:

Servicer Name NSLDS Name ED Servicer Code
Nelnet Total and Permanent Disability Servicer DEPT OF ED/TPD 582

General (Non Veterans) Total and Permanent Disability Discharge Processing Beginning October 1, 2010 - Loan Holders

Currently, loan holders submit assignments for general total and permanent disability discharge to the Disability Discharge Loan Servicing Center in Greenville, TX.

Beginning October 1, 2010, loan holders will-

  • Submit new assignments for general total and permanent disability discharge to the Nelnet Total and Permanent Disability Servicer in Denver, CO.

    Note: New assignments include resubmissions of those that were rejected by the Department and not resubmitted prior to October 1, 2010.

  • Continue to work with the Disability Discharge Loan Servicing Center in Greenville, TX to complete all assignments and referrals submitted by loan holders prior to October 1, 2010.

Through forthcoming Electronic Announcements, we will provide loan holders with the information they will need to submit new total and permanent disability discharge assignments to the Nelnet Total and Permanent Disability Servicer beginning October 1, 2010. These communications will include the following:

  • Student Aid Internet Gateway (SAIG) mailbox and message class information (for guaranty agencies)

  • Submission procedures (for all loan holders, including Perkins schools)

  • Contact information for the Nelnet Total and Permanent Disability Servicer

Please monitor the Information for Financial Aid Professionals (IFAP) Web site for these communications.

General (Non Veterans) Total and Permanent Disability Discharge Processing Beginning October 1, 2010 - Borrowers

Currently, borrowers contact the Disability Discharge Loan Servicing Center in Greenville, TX for questions about loans assigned to the Department for general total and permanent disability discharge.

Beginning October 1, 2010, borrowers will-

  • Contact the Nelnet Total and Permanent Disability Servicer in Denver, CO for questions about loans assigned to the Department for general total and permanent disability discharge on or after October 1, 2010.

  • Contact the Disability Discharge Loan Servicing Center in Greenville, TX for questions about loans assigned to the Department for general total and permanent disability discharge prior to October 1, 2010.

As we transition to the new servicer, we will transfer Disability Discharge Loan Servicing Center borrower accounts to the Nelnet Total and Permanent Disability Servicer. When we transfer the accounts, borrowers will be notified and provided with the Nelnet Total and Permanent Disability Servicer’s contact information.

Veterans Total and Permanent Disability Discharge Processing Beginning October 1, 2010 - Loan Holders and Borrowers

Currently, loan holders submit referrals for veterans total and permanent disability discharge to the Veterans Disability Discharge Unit in Atlanta, GA. Borrowers also contact this unit with questions about referred loans.

When the general discharge transition begins on October 1, 2010, loan holders will-

  • Continue to submit new referrals for veterans total and permanent disability discharge to the Veterans Disability Discharge Unit in Atlanta, GA.

  • Work with the Veterans Disability Discharge Unit in Atlanta, GA to complete all referrals.

In addition, borrowers will continue to contact the Veterans Disability Discharge Unit in Atlanta, GA for questions about loans referred to the Department for veterans total and permanent disability discharge.

Contact Information

We appreciate the community’s patience and assistance as we transition to our new total and permanent disability discharge servicer. If you have questions about the information in this announcement, contact Patricia Raling at patricia.raling@ed.gov.

   

End of Page