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Update #5 Direct Consolidation Loans

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Applications Withdrawn/Deactivated 35,038 40,311*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

Last Modified: 08/16/1999