| PublicationDate: 10/24/97 Summary: Update #5 Direct Consolidation Loans Author: OPE - Office of the Assistant Secretary for OPE Posted October 24, 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to August 1997: 142,856 As of 10/14/97 As of 10/20/97 Applications Consolidated (completed): 75,595 79,144 Applications Withdrawn/Deactivated 35,038 40,311* Current Applications in Process 32,223 23,401 Breakdown of Current Applications: As of 10/14/97 As of 10/20/97 1) Applications in Pre-Certification Review stage (incomplete application): 6 2 2) Applications in Certification of Loan Amounts Stage (awaiting loan holder information): 7,140 2,526 Promissory note review 3) Applications in Promissory Note Stage: 25,007 20,873** *800 applications which were deactivated have since been reactivated because the applicant eventually either supplied missing information or requested reinstatement. **Of these, 18,875 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 as we move to re-opening Federal Direct Loan process to new applicants. Respectfully submitted, Elizabeth M. Hicks Deputy Assistant Secretary Student Financial Assistance |