The Put process and its effect on schools and student borrowers
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Transcript of The Put process and its effect on schools and student borrowers
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The Put process and its effect on schools and student borrowers
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Agenda
• Put loan overview (Background)
• Put Process Timeline
• Student Resources
• School Resources
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Put loan overview
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Put Loan Background
• 2007: Lenders having difficulty creating new loans– Subsidy cuts– National credit crisis
• Ensuring Continued Access to Student Loans Act (ECASLA)– Several programs including Put
Program– Ensure funds are available for lenders
to continue financing FFELP loans
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Put Loan Background
• Originally scheduled to expire in 2009, Put Program has since been extended to end of 2010 award year (9/30/10)
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Put Loan Process Overview
• Lenders sell FFELP loans to the U.S. Department of Education (ED)– If fully disbursed priorv to
September 30 of that year
• When loan is sold:– Remains true to the MPN– Still classified as a FFELP loan– FFELP guaranty no longer exists– Owned and serviced by ED
(or it’s designated service providers)
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Eligibility Dates
• ECASLA I (08-09)– First disbursement is on or after 05/01/2008 but
before 07/01/2009– Loan is fully disbursed by 09/30/2009– Academic period for the loan includes 07/01/2008 or
begins after 07/01/2008• ECASLA II (09-10)
– First disbursement is on or after 05/01/2009 but before 07/01/2010
– Loan is fully disbursed by 09/30/2010– Academic period for the loan includes 07/01/2009 or
begins after 07/01/2009
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Put Servicers
• ECASLA I: ACS• ECASLA II: Four additional
servicers - Great Lakes Higher Education
– AES/PHEAA– Nelnet– Sallie Mae
• Great Lakes Client Services Dept. is main point of contact for questions
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Put Process Timeline
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Put Process Timeline
• Day 45 – Day 10: Start Put Process
• Day 9: Adjustment Cutoff Date
• Day 0: Anticipated Put Date
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Put Process Timeline
Timeline Review
Day 45 - 10:-ED notifies GL of transfer-Contact seller to discuss details of sale-Lenders not required to notify schools yet-All change transactions are ALLOWED… Grade Level, LP Dates, Reinstatements, Reissues, Increases, Add Disb, Reallocations, Refunds, Reversals
Day 45 Day 9
Day 9 - 1:-Adjustment Cutoff Date-Current servicer sends loan transfer file to GL-Once loans verified, GL receives Bill of Sale-Change Transactions restricted…-Increases, Grade Level, Reinstatements, Reissues, Add Disb NOT ALLOWED-LP Dates, Reallocations, Refunds, Reversals still ALLOWED
Day 0
Day 0+:-Anticipated Put Date-Borrower Notification Letter sent (Welcome Letter)-CL notification to schools regarding transfer-Changes cannot be processed by original service provider-Change Transactions remain limited…-Increases, Reinstatements, Reissues, Add Disb NOT ALLOWED-LP Dates, Grade Level, Reallocations, Refunds, Reversals still ALLOWED
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Student Resources
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Borrower Perspective
• Day 0: Anticipated Put Date– What does the Borrower see?
• Borrower Notification Letter (welcome letter)• GL Previously Serviced; GL Put Servicer
(sample John Doe letter)• Non-GL Previously Serviced; GL Put Servicer
(sample Jane Doe letter)• Other resources:
– mygreatlakes.org for account information, etc.– NSLDS for verification of where all loans
are serviced
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Borrower Perspective
• Day 0– Sample John Doe Letter sent to
borrower once put loan is loaded to our system if GL was previous Servicer & is now Put Servicer
– Letter Explains:• Loan has been put to ED
• GL will still service loan & send updated payment statements if needed
• They may have other loans with lender not affected
• GL contact & payment information
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Borrower Perspective
• Day 0– Sample Jane Doe Letter sent to
borrower once Put loan is loaded to our system if GL was NOT previous servicer & is now put servicer
– Letter Explains:• Loan has been put to ED
• GL will now service loan & send payment statements if needed
• They may have other loans with lender not affected
• GL contact & payment information
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Put Loan Servicer Codes
• ACS700577, GA code 577
• Sallie Mae 700578, GA code 578
• PHEAA700579, GA code 579
• Great Lakes700581, GA code 581
• Nelnet700580, GA code 580
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NSLDS
NSLDS allows schools to verify when a loan was sold to the Department.
*Loans are only identified as being sold to the Department after the sales date and NSLDS has been updated.
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Borrower Path to NSLDS
2. Enter•Social security number •First two letters of last name•Date of birth •FAFSA PIN (Personal Identification Number)
1. Go to
www.nslds.ed.gov
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Borrower View of NSLDS Loan Menu
Loan Detail
Click the aqua number boxes to see loan detail.
Put information displays here.
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Dept. of Ed/Great Lakes information
Dept. of Ed information
Client Services and Borrower Services are main contacts.
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School Resources
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Put Loan Servicing Page
• mygreatlakes.org– Click Great Lakes Servicing Federal
Student Loans• Resources
– Great Lakes Servicing Overview: Put Loans • Details put process and how to identify and work with
put loans– List of contacts and resources for all put loan
servicers– Sample Borrower Notification letter– Federally-Held Loans Serviced by GL Detail
Report• Provides list of borrowers with put loans
serviced by Great Lakes
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Default Management
• Borrowers at Risk Report– Includes all Stafford & PLUS borrowers now 60
days or more delinquent on loans guaranteed or serviced by GL
– Email address, mailing address, up to two phone numbers for each borrowerUpdated every week
– Grouped into five categories:1.)Stafford 320+ days current cohort yr2.)Stafford < 320 days current cohort yr3.)Stafford delinquent not current cohort yr4.)GradPLUS 60+ days delinquent5.)PLUS delinquent – provides student name
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Click on Loan Detail to see guarantor/lender/servicer history.
*
*Loan is part of the 2008-2009 Loan Purchase Commitment Program
Click the underlined blue name to see contact information for the entity. See next page…
School View of NSLDS
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Loans put to ED, guaranteed by ED, serviced by Great Lakes
This borrower’s loans 1 and 2 are guaranteed by ASA, with Chase as lender. Loans 3 and 4 have been put.
School View of NSLDS
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Commonly Asked Questions
• How will loans be allocated between the servicers?
• Will schools or students be able to choose which servicer they work with?
• How will split servicing situations be handled?• How will customer satisfaction be measured?
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Great Lakes Contact Information
– Great Lakes Client Services– 888 686-6919– [email protected]
– George Fuller– National Accounts Sales Director– 616 827-9926– [email protected]