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Latest from FSA: Federally-Owned Loan Transfer Initiative

October 25, 2013

FSA posted an Electronic Announcement on October 18, 2013, that highlights the Federally-Owned Loan Transfer Initiative that is planned for October 2013 to March 2014. The Department continues their efforts to improve the servicing of William D. Ford Federal Direct Loan (Direct Loan) Program loans and Federal Family Education Loan (FFEL) Purchased Loans, referred to as federally-owned loans.

Now that all Direct Loan accounts have been transferred from the Direct Loan Servicing Center (ACS) to other federal loan servicers, the evaluation process of borrowers whose accounts are assigned to two or more servicers has started once again. The Department’s goal is to transfer the accounts as necessary to ensure that each affected borrower has only one servicer for all of his or her federally-owned loans. The new transfer initiative will continue through March 2014. After this initiative is completed, they will monitor borrower account assignments on a regular basis and resolve situations in which accounts are assigned to two or more federal loan servicers.

The Electronic Announcement outlines the transfer process in detail that will take place between October 2013 and March 2014. A question and answer PDF is also attached to the announcement for easy reference about the transfer process and timeline.

Pam King, Midwest Regional Director, Nelnet Partner Solutions

Pam King, Midwest Regional Director, Nelnet Partner Solutions

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