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

Posted Date:December 15, 2009

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

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

In a November 25, 2009 Electronic Announcement on the Information for Financial Aid Professionals (IFAP) Web site, we informed the community of 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 were enrolled in school that their loans would soon enter the grace and repayment periods.

As previously communicated, 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.

On December 9, 2009, we completed our work to correct the accounts of affected borrowers. All discrepant loan status information is now resolved, and borrowers have been notified accordingly.

Again, we apologize for the confusion and inconvenience this issue caused borrowers and schools. We appreciate the community’s patience and understanding.

Last Modified: 12/14/2009