Posted Date:March 10, 2010
| Author: | Jana Hernandes, Service Director, Operations, Federal Student Aid |
Subject: Loan Servicing Information - First Quarter Customer Service Performance Results
Note: In November 2015, we moved this announcement’s attachments to the FSA Data Center. The attachments for the Quarter Ending 12/31/2009 are now located on the Servicer Performance Metrics and Allocations page at https://studentaid.ed.gov/sa/about/data-center/business-info/contracts/loan-servicing/servicer-performance#12312009.
In Electronic Announcements posted on the Information for Financial Aid Professionals (IFAP) Web site on August 28, 2009 and September 16, 2009, we explained our transition to additional servicer support for loans that the Department of Education (the Department) owns. Currently, these loans include William D. Ford Federal Direct Loan (Direct Loan) Program loans and Federal Family Education Loan (FFEL) Program loans purchased by the Department under the authority granted the Secretary in the Ensuring Continued Access to Student Loans Act (ECASLA) and through methods commonly referred to as a “PUT.”
In early September 2009, the Department began assigning FFEL Purchased Loans to the four new servicers on our federal loan servicing team—FedLoan Servicing (PHEAA), Great Lakes Educational Loan Services, Inc., Nelnet, and Sallie Mae. Per our contractual agreement with each servicer, the Department will annually measure servicer performance in the areas of customer satisfaction and default prevention. We will then use these results to determine each servicer’s allocation of future loan volume.
This announcement is intended to share first quarter (October – December 2009) service performance results with the financial aid community. The Department measured customer satisfaction with each of the new federal loan servicers exclusively through independently administered customer satisfaction surveys conducted during December 2009. We also assessed default prevention through analysis of each servicer’s portfolio.
We provide the first quarter results in two attachments to this announcement. In the attachment titled “First Quarter Explanation of Results,” we provide background information about the measures and a summary of the results. In the attachment titled “First Quarter Customer Service Performance Scores,” we provide the customer satisfaction and default prevention results for each servicer. In addition to the two first quarter results attachments, we provide a sample ongoing allocation metric calculation in the attachment titled “Sample Ongoing Allocation Metric Calculation for Four Servicers.”
We value the participation of all customers in the loan servicing process and will share the quarterly customer service performance results with the financial aid community on an ongoing basis.