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(Direct Loans) Subject: Issue Alert - Some Direct Loan Borrowers Received Inaccurate Loan Status Correspondence

Posted Date:November 25, 2009

Author: Jana Hernandes, Service Director, Operations, Federal Student Aid

Subject: Issue Alert - Some Direct Loan Borrowers Received Inaccurate Loan Status Correspondence

We recently identified an issue with our Direct Loan Servicing System (DLSS) that resulted in William D. Ford Federal Direct Loan (Direct Loan) borrowers receiving inaccurate correspondence about the status of their loans. More specifically, we informed borrowers who are currently enrolled in school that their loans would soon enter the grace and repayment periods.

On November 23, 2009, we corrected the DLSS issue that caused the generation of inaccurate loan status correspondence. Borrowers should not receive the inaccurate correspondence going forward.

We are now correcting the accounts of affected borrowers and expect to resolve all discrepant loan status information very soon. We will post another announcement on the Information for Financial Aid Professionals (IFAP) Web site as soon as we complete this work.

Contact Information

Direct Loan borrowers and schools that have questions about loan status correspondence should contact the Direct Loan Servicing Center at 800/848-0979 (for borrowers) or 888/877-7658 (for schools).

We apologize for the confusion and inconvenience this issue has caused borrowers and schools. Thank you for your patience and understanding.

Last Modified: 11/24/2009