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Update #4 Direct Consolidation Loans

PublicationDate: 10/20/97
Summary: Update #4 Direct Consolidation Loans
Author: OPE - Office of the Assistant Secretary for OPE

Posted October 20, 1997

Dear Colleagues:

I am pleased to provide the following information about our progress in resolving the
backlog of Direct Consolidation Loan applications we had in process at the beginning
of September.

Applications Received from September 1996 to August 1997: 142,856

As of 10/6/97 As of 10/14/97

Applications Consolidated (completed): 69,912 75,595

Applications Withdrawn/Deactivated 25,494 35,038

Current Applications in Process 47,450 32,223

Breakdown of Current Applications:
As of 10/6/97 As of 10/13/97
1) Applications in Pre-Certification
Review stage (incomplete application): 2 6

2) Applications in Certification of Loan
Amounts Stage (awaiting loan holder
information): 10,900 7,140
Promissory note review

3) Applications in Promissory Note Stage: 36,548 25,007*

*Of these 20,619 are awaiting borrower return of signed note; the balance
are in quality-review prior to mailing. A reminder postcard is mailed to applicants who
have not returned their 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.

Respectfully submitted,
Elizabeth M. Hicks
Deputy Assistant Secretary
Student Financial Assistance

Last Modified: 08/16/1999