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School Service Center FAQs

November 8, 2013

For this segment, we wanted to push out some frequently asked questions that our School Service Center has received these past couple of weeks, in case additional schools have the same concerns.  We had several calls last week related to these two questions below:

1) What do schools do with the Loan Holder Notification files for Perkins loan schools regarding the Total and Permanent Disability regulatory changes?

Under the new process, which began on July 1, 2013, individuals seeking a TPD discharge will submit a single TPD discharge application directly to the Department rather than to their individual loan holders. If a borrower informs a loan holder that he or she is totally and permanently disabled and wants to apply for discharge, the loan holder must direct the borrower to Nelnet, the TPD Servicer. If the borrower submits a TPD discharge application to the loan holder on or after July 1, 2013, the loan holder must forward the application to Nelnet.

Nelnet’s contact information for borrowers is available on the borrower-focused Total and Permanent Disability Discharge and Veterans Disability Discharge Contact Information page. While Nelnet’s phone and e-mail contact information should be shared with borrowers, the Department strongly encourages loan holders to direct borrowers to the TPD Discharge Web site at www.disabilitydischarge.com for general information about the TPD discharge process.

Action Required by Schools

All Perkins loan schools should have taken action by Sunday, June 30, 2013.

  • As part of the improved process, all Perkins Loan schools must receive the TPD Loan Holder Notification (TPD LHN) File via e-mail to a designated contact. Each time there is new or updated borrower information to provide to the loan holder, Nelnet will send the comma separated values (*.csv) file to the e-mail address identified for this purpose.
  • Nelnet will send the TPD LHN File to the designated contact as a secure attachment to an e-mail.
  • The e-mail will be sent from the address “TPDNotification@nelnet.net” with the subject “N!! Loan Holder Notification File.”
  • The notification file will be transmitted as needed (that is, only when there is new information for the loan holder) Monday – Friday of each week except on the following days: New Year’s Day, Birthday of Martin Luther King, Jr. Holiday, Washington’s Birthday Holiday, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day, Day After Thanksgiving, and Christmas Day.
  • Nelnet uses an e-mail security appliance to secure all Personally Identifiable Information (PII) that is transmitted via e-mail. The appliance automatically encrypts outbound e-mail communications containing PII and provides a secure electronic message delivery process. Upon receipt of the first encrypted e-mail, a loan holder’s designated contact will need to electronically register his or her contact information to receive the attachment. Once the designated contact is registered, he or she will not need to register again.

The only step a Perkins Loan school must take is to designate its contact for e-mail receipt of the TPD LHN File through a new National Student Loan Data System (NSLDS) contact type. The new NSLDS contact type is “Disability Processing.” All Perkins Loan schools must designate a contact for e-mail receipt of the TPD LHN File through the new NSLDS Disability Processing contact type. The school designates the contact via the ORG tab on the NSLDS Professional Access Web site. The ORG tab is updated and available for this purpose.

Nelnet cannot begin notifying an entity of borrowers who apply for TPD discharge on or after July 1, 2013 until the servicer receives the entity’s contact for e-mail receipt of the TPD LHN File.

2) How much time is needed to process an Administrative Forbearance along with the supporting documents?

Forbearances take 2 to 5 business days to apply (24-48 hour if no errors found) to a borrower’s account.  If the borrower calls in an hour later, the administrative forbearance will not be process.  This is an automated process and a report is run each night and then processed.

Note: If a borrower is close to default or 350 days past due, we ask that the school call the School Service Center so that the SSC can manually add the forbearance and documents.

Kristi Jones, Southern Regional Director, Nelnet Partner Solutions

Kristi Jones, Southern Regional Director, Nelnet Partner Solutions

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