Federal Student Aid - IFAP

We want to encourage all Financial Aid
Administrators, Fiscal Officers, Registrars,
information systems staff and other school
administrators to get to know their Direct Loan
customer service specialists. Account managers,
program operations and accounting personnel,
school relations representatives, and EDExpress and
Title IV WAN (TIVWAN) customer support staff
are all members of the Department's customer
service staff. Our customer service specialists serve
as your advocates by ensuring that you receive
information and materials requested and by
sharing and following up on your comments and
concerns to expedite the delivery of services to you.
They are also conveyors of information about what
has been tried and what works for other institutions.

They may contact you occasionally just to make
sure that things are okay, to inform you about
upcoming events such as video conferences or
regulatory and policy changes, or to relay other
useful information that you may otherwise
miss. Many of the Department's customer service
specialists are located in our regional offices to help
the Department maintain close working relationships
with schools. Others are located in Washington,
D.C.; Montgomery, Alabama; Iowa City, Iowa; and
Utica, New York. You may contact them either by
telephone, fax electronic devices, or
correspondence. (See page 2 for telephone numbers)

Account Managers

Account managers are located in each of our
regional offices to help coordinate operations and
training activities and provide technical support and
assistance to schools participating in the Direct
Loan Program. Account managers --

- provide step-by-step assistance with
reconciliation, drawdowns or exporting or importing
data; and

- serve as liaison between schools and the
contractors who support the Direct Loan software
and the contractors that manage the loan origination
system and the Direct Loan Servicing Center.

Program Operations and Accounting Teams

The financial management functions are handled by
the program operations and accounting teams,
located in Washington, D.C. These teams manage
Direct Loan drawdown accounts in EDPMS, record
financial transactions, and prepare financial
statements and reports for the Direct Loan Program.
They also --

- help to resolve problems with Automated
Clearing House (ACH) and FEDWIRE drawdown
requests; and

- explain how to return excess cash and
assist with Payment for Origination Services (POS).

School Relations Representatives

School Relations Representatives are located at the
contractor site that provides loan origination
services to schools. They --

- assist with loan origination and consolidation,
draw-downs, disbursements, reconciliations, annual
systems testing, data transmission; and

- provide counseling and other Direct Loan
(Continued on next page)


EDExpress and Title IV Wide Area Network (TIVWAN)

EDExpress and TIVWAN customer support staff
serve as troubleshooters. They provide software
support and technical assistance to schools that use
Department-issued software. They also --

- assist with system requirements for EDExpress,
and the Integrated Application Menu (IAM)
software (EDconnect, OPEnet, Net*connect); and

- provide on-site assistance and technical layout
support, password assistance, user guides and
references, and guidance to correct compression and
decompression problems.

Contact your Direct Loan customer service
specialists at the following telephone numbers:

Regional Account Managers
Region I (617) 223-4963
Region II (212) 264-8012
Region III (215) 596-1716
Region IV (404) 730-2012
Region V (312) 886-6660
Region VI (214) 767-9607
Region VII (816) 880-4090
Region VII (303) 294-1393
Region IX (415) 437-8843
Region X (206) 220-4400

Program Operations Team
Lisa DiCarlo (202) 708-9209
Isiah Dupree (202) 205-3413
George Karayinias (202) 708-9810
Marvin Somers (202) 358-4866
Mark Wise (202) 401-7553

School Relations
School Relations Representatives
(800) 848-0978

(800) 557-7392

Computer Software Support
EDExpress Customer Support (800) 330-5947
TIVWAN Customer Support (800) 615-1189


The Department will implement the following
policy changes and procedures beginning with
year three (1996-1997 academic school year) of
the Direct Loan Program:

(1) Name changes for origination levels. The
origination levels under the Direct Loan Program
have been renamed: level 1 is now option 2, level 2
is now option 1, alternative level is now standard

(2) Schools may request a change in origination
level. Beginning with the 1996-97 academic year, a
school may request a change in its current
origination level to a different origination level (with
a lesser or greater level of responsibility). The
criteria to qualify for a change in origination status

- A school may request a change to an origination
level of lesser responsibility at any time. For
example, a level 1 (now option 2) school may
request a change to option 1 or alternative (now
standard) origination. Or a level 2 (now option 1)
school may request a change to the standard
origination level.

- A school may request a change to an origination
level of greater responsibility. (For example an
option 1 school may request a change to option 2) if
the school--

- has participated in the Direct Loan Program
at the current level for at least one year, and

- meets certain criteria and performance
standards prescribed in 34 CFR 685.402 (a) and (b)
and provides supporting documentation.

A school may request a change in origination status
by submitting a written request to the Direct Loan
Task Force by fax on (202) 401-3424, or mail at:

Direct Loan Task Force
Office of Postsecondary Education
Attn: Ellen Taylor
600 Independence Avenue, SW
Washington, D.C. 20202-5162


The January/February edition of the Direct Loans
Newsletter included comprehensive information
about the transfer of the loan origination system
from our current location in Utica, New York, to
our new location in Montgomery, Alabama. The
initial cutover date was March 30. However, we are
not satisfied that the 1996-97 system has been
sufficiently tested to ensure an optimal level of
services. We are, therefore, postponing cutover. We
anticipate that the cutover will be no later than May
13. In the meantime, all origination and
reconciliation transactions for 1995-96 will continue
to be processed at the Direct Loan Servicing Center
(DLSC) in Utica, New York.

Included in the Newsletter was a table that explained
the schedule for "Loans in Progress" during the
transition from the old system to the new. Please
refer to the REVIESD TABLE below for the new
schedule. A Dear Colleague letter explaining the
impact of the new schedule was distributed to all
schools on March 20, 1996. Should you have
questions or need further assistance,
please contact your regional Account Manager. (See
page 2 for telephone numbers)

Work in Progress
Detailed Plan

Loan Origination Records
Loan origination records will be processed at the
DLSC in Utica through April 25, 1996. The Loan
Origination Center (LOC) in Montgomery will begin
loan origination processing not later than May
13, 1996.

Promissory Notes
Promissory notes will be imaged and indexed at the
DLSC through April 22, 1996. Any documents that
were sent to the LOC prior to this date will be
forwarded to the DLSC by overnight mail. Schools
should transmit promissory notes to the LOC in
Montgomery after April 22. The LOC will begin
processing PNotes upon receipt and will complete
processing not later than May 13, 1996. All
promissory notes received after the cutoff by the
DLSC will be transferred overnight to the LOC
in Montgomery.

Credit Checks
The DLSC will initiate credit checks through April
22, 1996. Beginning, May 13, 1996, the LOC in
Montgomery will take over the credit check process.

PLUS Endorser Forms
PLUS endorser forms that have not been processed
by the DLSC by April 22, 1996, will be shipped
overnight to the LOC in Montgomery where they
will be processed.

Drawdowns and Level 2 and 3 Disbursement Rosters
There will be no interruption in the flow of Direct
Loan funds during this period.Origination level 1
schools may continue to draw down. Levels 2 and 3
schools should contact theDirect Loan Task Force
at (202) 708-9951.

Excess Cash
Excess Cash will be handled by the DLSC through
April 25, 1996. Beginning April 26, 1996, the LOC
will accept excess cash transmittals.

Reconciliation Records
The final processing of reconciliation records at the
DLSC will be April 25, 1996. The LOC will start
processing reconciliation records not later than
May 13, 1996.

Consolidation Loans
The DLSC will continue to process regular
consolidations. The LOC will begin regular and
in-school consolidations when the new Direct
Consolidation Loan process becomes operational
later in the summer 1996.


Promissory Note Update. The promissory notes
used for the 1995-96 academic year have an OMB
expiration date of 6/30/96. These notes can be used
for both 1995-96 and 1996-97 loans as long as the
borrower signs the note by the expiration date. The
Department recently printed new promissory notes
with an expiration date of 12/31/98. This new note
is almost identical to the old note, and can be used
for either 1995-96 or 1996-97 loans. An order form
for the new notes was sent to all schools recently.
Schools can also order new promissory
notes by calling the Loan Origination Center in
Montgomery, Alabama at 1-800-557-7394.

Training for New Direct Loan Schools. Training for
new Direct Loan schools will be held in New York,
New York; Atlanta, Georgia; Chicago, Illinois;
Dallas, Texas; and San Francisco, California on
March 26-27, March 28-29, April 30-May 1, and
May 2-3. The training will provide an overview of
the Direct Loan Program including strategies to help
school officials implement and administer the
program. For more information contact:

Anthony Andrade (212) 264-8012 New York, NY
Laura Hall (404) 730-2012 Atlanta, GA
Mary Barton (312) 886-6660 Chicago, IL
Sue Goldman (214) 767-9607 Dallas, TX
Patricia Walker (415) 437-8843 San Francisco, CA

Technical Assistance Workshop for Historically
Black Colleges and Universities (HBCUs). The
Department of Education will hold three technical
assistance workshops for HBCUs on May 14-15 in
Atlanta, Georgia; on May 23-24 in Dallas, Texas;
and on June 4-5 in Washington, D.C. The training
will include electronic processing for all Title IV
programs and managing the Direct Loan Program.
Letters and application packets will be mailed to
schools in early April. For additional information
contact the Direct Loan Task Force on

EDExpress Training. EDExpress Training for
Direct Loan Schools will be held in New York,
New York; Atlanta, Georgia; Chicago, Illinois;
Dallas, Texas; and San Francisco, California on
March 25 and April 29. The training will include an
overview of Electronic Data Exchange and
hands-on EDExpress training. For more
information, contact your training specialist at the
numbers listed in the first column on this page.


The Direct Loan Newsletter is published bi-monthly by:
Office of Postsecondary Education
Direct Loan Task Force
U.S. Department of Education
600 Independence Avenue SW
Washington, D.C. 20202-5111

Editor: Joyce Rice
Copies are available free of charge upon request from
the Direct Loan Servicing Center, 1-800-848-0978 OR
the newsletter may be downloaded from the Internet on