FAQ: Booked, Assigned, and Held?

As a Direct Loan servicer, Nelnet’s Partner Solutions team receives questions from the school financial aid and borrower community on a regular basis.  In an effort to share the information and educate our school partners, we are posting to our blog some of the more relevant and well-timed questions that we receive.

Q: Once a loan is “booked”, how soon will the account be available on the servicer’s website?

A:  A loan is considered booked when there is an origination, a promissory note, and an actual disbursement record.  Once a loan is booked, it generally displays on the loan servicer’s website within 24 hours.

Q:  Why can’t servicers see future disbursements on loans that have been assigned to them for servicing?

A:  A loan servicer can see all loans that have been assigned to them, except loans for which no actual disbursements have been made.  All disbursement information, including the anticipated disbursements, are sent to the servicer at the time of loan booking.

Q: Who holds the Master Promissory Note, the Department of Education or the servicer?

A:  Not only is the Department of Education the loan holder, they also hold the Master Promissory Note.

Do you have any servicing-related questions?  Please let us know, so we can help you and others in the school community who may be wondering the same thing.

Alan Ishida - Regional Director, Nelnet Partner Solutions (AK, CO, HI, Guam, IA, WI, WV)