Maintained for Historical Purposes

This resource is being maintained for historical purposes only and is not currently applicable.

Information Pertaining to Abandoned Loans (Loan Status Code AL)

Publication Date: February 13, 2001

Author: NSLDS | National Student Loan Data System

Summary: Information Pertaining to Abandoned Loans (Loan Status Code AL)

Posted on February 13, 2001

TO: Financial Aid Community
FROM: F. Lynn Alexander, Director, National Student Loan Data System
SUBJECT: Information Pertaining to Abandoned Loans (Loan Status Code AL)

Recently a new loan status code of AL (Abandoned Loan) was instituted on the NSLDS system for guarantor reporting. An abandoned loan is defined as an active FFEL Program loan that was in repayment for less than 12 years and the guaranty agency had not updated to NSLDS in the last four years. Students with such loans were considered ineligible for aid. In order to alert schools of the ineligibility, the AL status was defined as a defaulted loan.

The Department has temporarily suspended the use of the AL code as a default code. At this time, students who have a loan in an AL status are ELIGIBLE for aid. New ISIRs will be produced for the affected students in the next few days showing the student as eligible (assuming no other default or overpayment exists). The NSLDS website has already been updated to reflect the borrowers' eligibility. If you have a student with a loan that meets these criteria, we encourage you to have the student contact the guaranty agency to clear up any question about the status of their loans.

The number of students affected by this is minimal. We regret any inconvenience this has caused for students and schools. If you have any further questions about this process, please contact the NSLDS customer service center on (800) 999-8219.

Last Modified: 02/13/2001