| PublicationDate: 10/29/97 Summary: Update #6 Direct Consolidation Loans Author: OPE - Office of the Assistant Secretary for OPE 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. The outstanding inventory of applications has been reduced by 79% since September 15, resulting in a 58% increase in completely consolidated loans: Applications Received from September 1996 to August 1997: 142,856 As of 10/20/97 As of 10/27/97 Applications Consolidated (completed): 79,144 84,975 Applications Withdrawn/Deactivated 40,311 40,600* Current Applications in Process 23,401 17,281 Breakdown of Current Applications: As of 10/20/97 As of 10/27/97 1) Applications in Pre-Certification Review stage (incomplete application): 2 0 2) Applications in Certification of Loan Amounts Stage (awaiting loan holder information): 2,526 760 Promissory note review 3) Applications in Promissory Note Stage: 20,873 14,294** *4,253 applications which were deactivated have since been reactivated because the applicant eventually either supplied missing information or requested reinstatement. This compares to 800 reactivations as of 10/20. **Of these, 13,802 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 |