Posted Date:July 19, 2013
| Author: | Jana Hernandes, Service Director, Operations, Federal Student Aid |
Subject: TEACH Grant Servicing Information - Transition of TEACH Grant Servicing to FedLoan Servicing (PHEAA) Week of July 22, 2013
As explained earlier this month (July 12, 2013), we will bring closure to all functions performed by ACS (Xerox) over the next several months. At this time, we are ready to transition the servicing of Teacher Education Assistance for College and Higher Education (TEACH) Grants to the new TEACH Grant servicer, FedLoan Servicing (PHEAA).
There will be no change to how FedLoan Servicing (PHEAA) will be identified in the National Student Loan Data System (NSLDS) for the purpose of TEACH Grant servicing. The servicer’s identity on TEACH Grant records within the NSLDS will be as follows:
| Servicer Name | NSLDS Name | NSLDS ED Servicer Code |
| FedLoan Servicing (PHEAA) | DEPT OF ED/FEDLOAN SERVICING (PHEAA) | 579 |
TEACH Grant recipient and school contact information for FedLoan Servicing(PHEAA) is available on the IFAP Web site’s Loan Servicing Centers for Students page and Loan Servicing Centers for Schools page, respectively.
Transition of TEACH Grant Servicing to FedLoan Servicing (PHEAA) Week of July 22, 2013
Our transition of TEACH Grant servicing to FedLoan Servicing (PHEAA) will occur in two phases during the week of July 22, 2013.
- On Monday, July 22, 2013, we will begin assigning all newly-originated TEACH Grants to FedLoan Servicing (PHEAA) for servicing on our behalf. In addition, the FedLoan Servicing (PHEAA) contact center will begin handling questions from and correspondence with TEACH Grant recipients.
- On Thursday, July 25, 2013, we will transfer all existing TEACH Grant accounts from ACS (Xerox) to FedLoan Servicing (PHEAA). If applicable, we will also transfer all of a TEACH Grant recipient’s TEACH Grants that have been converted to Direct Unsubsidized Loans and/or all of a recipient’s other Direct Loans on the ACS (Xerox) system to FedLoan Servicing (PHEAA).
- When we transfer a TEACH Grant recipient’s TEACH Grants from the Direct Loan Servicing Center (ACS) to the new TEACH Grant servicer, FedLoan Servicing (PHEAA), the Direct Loan Servicing Center (ACS) will send an e-mail notification to the recipient provided there is a valid e-mail address on file. The e-mail will include preliminary notice of the transfer and FedLoan Servicing (PHEAA)’s name and contact information.
- Regardless of whether a TEACH Grant recipient receives an e-mail notification from the Direct Loan Servicing Center (ACS), the new TEACH Grant servicer, FedLoan Servicing (PHEAA), will correspond with the recipient after the transferred TEACH Grants have been fully loaded to its system. In this correspondence, FedLoan Servicing (PHEAA) will explain that the recipient’s TEACH Grants have been transferred and that FedLoan Servicing (PHEAA) will service the TEACH Grants on our behalf going forward. The correspondence will include both toll-free phone number and Web site information for FedLoan Servicing (PHEAA).
- FedLoan Servicing (PHEAA) will be identified as the servicer of the recipient’s TEACH Grants in the NSLDS. FedLoan Servicing (PHEAA) reports this information to the NSLDS after the transferred TEACH Grants have been fully loaded to its system. Both the borrower and the school will be able to view the federal loan servicer code and name associated with each TEACH Grant via theNSLDS Student Access Web site and the NSLDS Professional Access Web site, respectively.
- Our federal loan servicers report account information to the NSLDS on a weekly basis. As a general rule, when we transfer a recipient’s TEACH Grants from the Direct Loan Servicing Center (ACS) to FedLoan Servicing (PHEAA), the new servicer information should be available in the NSLDS within seven to ten business days after the transferred TEACH Grants have been fully loaded to FedLoan Servicing (PHEAA)’s system and FedLoan Servicing (PHEAA) corresponds with the borrower.
- TEACH Grant recipient contact information for FedLoan Servicing (PHEAA) is available on the IFAP Web site’s Loan Servicing Centers for Students page.
- School contact information for FedLoan Servicing (PHEAA) is available on the IFAP Web site’s Loan Servicing Centers for Schools Contact Information page
Note: As can occur with transfer initiatives, some TEACH Grant recipients will have multiple federal loan servicers for a period of time. We plan to resolve situations in which a TEACH Grant recipient’s TEACH Grants and federally-owned loans are “split” across federal loan servicers after all transfers related to the ACS (Xerox) contract end have been completed.
TEACH Grant Recipient Account Transfers to FedLoan Servicing (PHEAA)
We, along with our federal loan servicers, are committed to ensuring that the transfer process for existing TEACH Grants on July 25, 2013 goes as smoothly as possible for affected TEACH Grant recipients. Key information about the upcoming transfer of existing TEACH Grants to FedLoan Servicing (PHEAA) is as follows:
The majority of servicer-to-servicer transfers are completed on schedule. However, in some cases, issues can occur with the data transfer and delay availability of the information in the NSLDS. If a school is concerned about FedLoan Servicing (PHEAA)’s information not being available in the NSLDS, it should contact the Federal Student Aid Research and Customer Care Center (RCCC) at 800/433-7327 or fsa.customer.support@ed.gov for assistance.
Note: As explained above, if applicable, we will also transfer all of a TEACH Grant recipient’s TEACH Grants that have been converted to Direct Unsubsidized Loans and/or all of a recipient’s other Direct Loans on the ACS (Xerox) system to FedLoan Servicing (PHEAA).
Contact Information
We appreciate the community’s ongoing support as we transition the servicing of TEACH Grants to FedLoan Servicing (PHEAA) and bring closure to all functions performed by ACS (Xerox) over the next several months. Please monitor the IFAP Web site for subsequent Electronic Announcements that will provide details related to the transition of the other functions outlined in our July 12, 2013 announcement.
Questions about TEACH Grants transferred to FedLoan Servicing (PHEAA) should be directed to FedLoan Servicing (PHEAA).
