Posted Date: November 15, 2013

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

Subject: Loan Servicing Information - Complete Closure of Direct Loan Servicing Center (ACS) Contact Center Effective November 16, 2013

In a series of Electronic Announcements posted on the Information for Financial Aid Professionals (IFAP) Web site, beginning with an announcement posted on January 10, 2013, we informed the financial aid community of our preparations for the end to our contract with the Direct Loan Servicing Center (ACS). These announcements included detailed information about the closure of all functions performed by ACS (Xerox), including its servicing of William D. Ford Federal Direct Loan (Direct Loan) Program loans.

In a recent September 30, 2013 announcement posted on the IFAP Web site, we informed the community that on October 1, 2013, the Direct Loan Servicing Center (ACS) began only offering informational messaging directing borrowers and schools to other resources. 

In this announcement, we provide information on the complete closure of the Direct Loan Servicing Center (ACS) contact center effective November 16, 2013 and remind the financial aid community of our previously posted guidance. We will refer to this servicer as the “Direct Loan Servicing Center” throughout the rest of the announcement.

We present the information in this announcement as follows:

  • Direct Loan Servicing Center Closure

  • Previously Posted Guidance

  • Contact Information

Direct Loan Servicing Center Closure

As explained in our series of announcements, we have phased out the availability of the Direct Loan Servicing Center contact center.  Since October 1, 2013, the Direct Loan Servicing Center has only been offering informational messaging and automatic e-mail acknowledgement messages. 

Effective  November 16, 2013, all Direct Loan Servicing Center support and messaging will no longer be available.  The Direct Loan Servicing Center phone number, e-mail address, and Web site will be inaccessible.

Below are important reminders for transferred borrowers who will no longer be able to contact the Direct Loan Servicing Center.

  • A borrower must start making payments to and communicating solely with his or her new federal loan servicer. 

  • A borrower can access the NSLDS Student Access Web site to identify the servicer to which the borrower's loans have been transferred.  A school that assists a borrower in identifying the new servicer of the borrower's loans can access the new servicer information through the NSLDS Professional Access Web site.

  • It is critical that a borrower who uses a bank or bill paying service to make his or her payments update the bank or bill paying service with the new servicer's name and address.

Previously Posted Guidance

Below is a list of the previously posted communications on the closure of the Direct Loan Servicing Center.

Contact Information

We appreciate the community's ongoing support of our approach to servicing federally-owned loans.  If you have questions about a loan that has been transferred from the Direct Loan Servicing Center to a new federal loan servicer, contact the new servicer directly.  Contact information for the appropriate servicer can be found on the Loan Servicing Centers for Schools Contact Information page on the IFAP Web site.

   

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