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(GEN-99-31) This letter provides authorization for a borrower's current loan holder to release the borrower's loan information to consolidating lenders without sending current loan holder a Loan Verification Certificates (LVC) with the borrower's signatu

DCLPublicationDate: 10/1/99
DCLID: GEN-99-31
AwardYear:
Summary: This letter provides authorization for a borrower's current loan holder to release the borrower's loan information to consolidating lenders without sending current loan holder a Loan Verification Certificates (LVC) with the borrower's signature if certain condition are met.


October 1999

GEN-99-31


Summary: This letter provides authorization for a borrower's current loan holder to release the borrower's loan information to consolidating lenders without sending current loan holder a Loan Verification Certificates (LVC) with the borrower's signature if certain condition are met.

Dear Partner:

In order to increase customer service for borrowers who want to consolidate their student loans into either a FFEL or Direct Consolidation loan, we are authorizing consolidating lenders to submit LVC to a borrower's loan holder(s) without having to obtain the borrower's signature on each LVC. The conditions under which this authorization may be used by a consolidating lender are as follows:

1. The consolidation loan application must contain a certifying statement whereby the borrower has authorized—

The consolidating lender to get necessary loan detail information only for the loans listed by the borrower on the application, and

The borrower's loan holder(s) to release loan information only for those loans that the borrower had listed on the application.

2. The consolidating lender must maintain the borrower's consolidation loan application with its original signature and be able to retrieve it if requested by the borrower, the current loan holder, the Secretary, or any other authorized agency.

3. The borrower's current loan holder may require a consolidating lender to provide a written statement certifying that the consolidating lender has complied with items 1 and 2 above.

We want to thank you for your continued efforts to expedite the consolidation process for our borrowers. If you have any questions please contact Don Watson of my staff. Don can be reached by email at donald_watson@ed.gov or by phone at (202) 708-8242.

Sincerely,



Jeff Baker, Director
Program Development Division
Student Financial Assistance Programs

Last Modified: 10/21/1999