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Don’t Forget: We Need Your Direct Loan Borrower Information

September 8, 2015

In November 2014, Federal Student Aid (FSA) ended its Direct Loan processing relationship with the National Student Clearinghouse (NSC). NSC no longer provides borrower information for these loans, meaning Nelnet and other servicers of Direct Loans must look to schools to obtain this borrower information.

What this means for you:

  • Federal student loan servicers, like Nelnet, must now look to NSLDS for enrollment verification on Direct Loans or obtain it directly from schools. We look forward to working with you directly to obtain this important information, so we can service Direct Loans for your school’s students.
  • If you report enrollment for Federal Direct Loans to NSC, the information will not be sent directly to Federal Direct Loan servicers as it has been in the past. It will appear only in the NSLDS weekly SSCR feed.
  • There is no change to the process for borrowers with only FFEL or private student loans. Federal Direct Loans are the only student loans affected by the change.

As a result of this change:

  • Federal loan servicers for the Department of Education, including Nelnet, can no longer access Federal Direct Loan borrower information via NSC’s secure member site.
  • Servicers will no longer receive weekly enrollment status change updates on Direct Loan borrowers from NSC. NSC confirmed it would continue to maintain the weekly notification service for FFEL and private student loans.
  • Servicers will continue to receive weekly enrollment status change updates on Direct Loans through the National Student Loan Data System (NSLDS) Student Status Confirmation Reports (SSCR) feed.

As a reminder, if schools do not report enrollment within the required 60-day window, borrowers can be negatively affected.

  • If the Last Anticipated Graduation Date provided ended within the 60-day window:
    • The borrower will be put into grace, or repayment if already used grace
  • If attending two SULA programs (four-year and two-year, for example):
    • If four-year school does not report within 70 days of last reporting, the SULA flag reverts off the two-year program in error. Loss of sub eligibility often occurs.
    • This requires manual correction.

For more information on changes to enrollment reporting, please see the following messages from FSA:

As always, your servicers are here to help. If questions arise, you can find contact information on the “IFAP Loan Servicing Centers for Schools” page.

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