Posted Date: October 8, 2010

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

Subject: Total and Permanent Disability Discharge Information - New Servicer Effective 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.

October 18, 2010 Note: The Nelnet Total and Permanent Disability Servicer is identified below as being located in Denver, CO; however, the physical street address for mailing assignments and referrals is in Aurora, CO, a suburb of Denver.

In an August 13, 2010 Electronic Announcement posted on the Information for Financial Aid Professionals (IFAP) Web site, we announced the award of our total and permanent disability servicer contract to Nelnet. As of October 1, 2010, the Nelnet Total and Permanent Disability Servicer is in place and will receive and process general total and permanent disability discharge assignments and referrals on behalf of the Department of Education (the Department).

We present the information in this announcement as follows:

  • Total and Permanent Disability Discharge Processing Reminders (multiple subsections)

  • Total and Permanent Disability Discharge Web Site Information

  • Contact Information

Total and Permanent Disability Discharge Processing Reminders

As noted in the August 13, 2010 announcement, total and permanent disability discharge processing will be handled as described below.

General (Non Veterans) Total and Permanent Disability Discharge Processing – Loan Holders

Loan holders will—

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

    Note: New assignments and referrals 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.

In a September 10, 2010 Electronic Announcement, we provided loan holders with the information they need to submit new total and permanent disability discharge assignments and referrals to the Nelnet Total and Permanent Disability Servicer.

General (Non Veterans) Total and Permanent Disability Discharge Processing – Borrowers

Borrowers will—

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

Veterans Total and Permanent Disability Discharge Processing – Loan Holders and Borrowers

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.

Total and Permanent Disability Discharge Web Site Information

There is a new Total and Permanent Disability (TPD) Discharge Web site. Loan holders, schools, and borrowers should now use http://www.disabilitydischarge.com.

The former TPD Web site will remain available for a short time, but users will be automatically re-directed to the new Web site. Note: We plan to retire the former Web site permanently in the near future. As a result, we suggest that any saved browser bookmarks be changed to the new URL listed above. Also, if a loan holder or school provides links to the former TPD Web site on any of its own Web sites, or in communications to staff and borrowers, the links must be updated to the new URL listed above. This would also apply if the Web sites or communications link to specific pages on the former TPD Web site.

Contact Information

Contact information for all total and permanent disability discharge service centers is available via the Contact Information page on the IFAP Web site.

We appreciate the community’s patience and assistance as we completed the transition to our new total and permanent disability discharge servicer.

   

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