Maintained for Historical Purposes

This resource is being maintained for historical purposes only and is not currently applicable.

Direct Loan Transition

PublicationDate: 2/1/96
Summary: Direct Loan Transition
Author: OPE - Office of the Assistant Secretary for OPE

Direct Loan Transition from CDSI to EDS Delayed

We recently announced that effective February 1996, Electronic Data Systems
(EDS), under the direction of the U.S. Department of Education, would begin
managing Direct Loan origination and reconciliation.

Unfortunately, the transition to EDS will not be completed by the end of this
month as we originally planned. As I mentioned in a recent Dear Colleague,
the government employee furlough (not to mention the Blizzard of 1996 and
subsequent floods in the Washington, DC metropolitan area) didn’t stop us, but
did slow us down.

We are proceeding with the transition of our Loan Origination System from
CDSI’s Utica Servicing Center to EDS’ Loan Origination Center in
Montgomery, Alabama. Additional information and a schedule of transition
activities and dates will be published in the upcoming Direct Loan Newsletter
and made available on the BBS late next week.

Leo Kornfeld
Senior Advisor to the Secretary