Posted Date: February 18, 2011

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

Subject: Loan Servicing Information - Second Quarter's Customer Service Performance Results (Updated April 20, 2011)

Note: In November 2015, we moved this announcement’s attachments to the FSA Data Center. The attachments for the Quarter Ending 12/31/2010 are now located on the Servicer Performance Metrics and Allocations page at

Note: On April 20, 2011, we updated this announcement by replacing the attachment titled "Quarterly Customer Service Performance Results – Quarter Ending December 31, 2010." The replacement file includes corrected results for Nelnet’s Defaulted Borrower Count and Defaulted Borrower Amount.

As explained in previous communications, Federal Student Aid awarded four new contracts in June 2009 to provide additional servicing capacity for loans owned by the Department of Education (the Department). These 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.”

Since early September 2009, the Department has been assigning federally-owned loans to these four federal loan servicers—FedLoan Servicing (PHEAA), Great Lakes Educational Loan Services, Inc., Nelnet, and Sallie Mae. Per our contractual agreement with each servicer, the Department will annually measure servicer performance in the areas of customer satisfaction and default prevention. We will then use these results to determine each servicer’s allocation of future loan volume.

This announcement is intended to share the customer service performance results for the second quarter (ending December 31, 2010) with the financial aid community. The Department measured customer satisfaction with each of the federal loan servicers exclusively through independently administered customer satisfaction surveys. We assessed default prevention through analysis of each servicer’s portfolio.

We provide this information in two attachments to this announcement. In the attachment titled “Explanation of Customer Service Performance Measure Methodology,” we provide an explanation of the performance measure methodology. In the attachment titled “Quarterly Customer Service Performance Results – Quarter Ending December 31, 2010,” we provide the second quarter’s customer satisfaction and default prevention results for each servicer.

We value the participation of all customers in the loan servicing process and thank you for your ongoing feedback.


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