| PublicationDate: 10/10/97 Summary: Update #2 Direct Consolidation Loans Author: OPE - Office of the Assistant Secretary for OPE Posted October 10, 1997 Dear Colleague: I am delighted to announce continued significant progress in resolving the backlog of Direct Consolidation Loan applications we had in process at the beginning of September. As of October 6, 1997, we have reduced the original backlog by more than 44% in just the first four weeks of our twelve week recovery plan. Of the remaining inventory 77% is in the final stages of processing, the promissory note stage. For the past week I am pleased to report the following: Applications Received from September 1996 to August 1997: 142,856 As of 9/29/97 As of 10/6/97 Applications Consolidated (completed): 65,720 69,912 Applications Withdrawn/Deactivated 21,381 25,494 Current Applications in Process 55,755 47,450 Breakdown of Current Applications: As of 9/29/97 As of 10/06/97 1) Applications in Pre-Certification Review stage (incomplete application): 1,396 2 2) Applications in Certification of Loan Amounts Stage (awaiting loan holder information): 18,428 10,900 3) Applications in Promissory Note Stage: 35,931 36,548* *Of these, 30,915 are awaiting borrower return of a signed promissory note; the balance of the number are promissory notes in quality-review prior to the mailing of the note. Beginning this weekend, a reminder postcard is being mailed to applicants who have not returned promissory notes, urging them to do so promptly. I hope this information is helpful. I will continue to provide you with updated news of the progress in eliminating the application backlog. My next message will provide general information about student loan consolidation. In the meantime, I urge you as possible loan holders of Perkins or Health Professions or Nursing loan information to respond promptly to any requests you receive for certifications of loan information for either FFEL or Direct Loan consolidation purposes so that we might be able to continue to assist consolidation borrowers. Respectfully submitted, Elizabeth M. Hicks Deputy Assistant Secretary Student Financial Assistance Programs |