Posted Date:September 10, 2010
| Author: | Jana Hernandes, Service Director, Operations, Federal Student Aid |
Subject: Total and Permanent Disability Discharge Information - Perkins Assignment Procedures Effective October 1, 2010 (Updated June 12, 2013)
June 12, 2013 Note: In a May 17, 2013 Electronic Announcement, we explained how the total and permanent disability (TPD) discharge regulations will change on July 1, 2013. The assignment procedures below are effective for those who submit TPD discharge applications before July 1, 2013. For those who submit TPD discharge applications on or after July 1, 2013, refer to the assignment procedures posted in a June 12, 2013 Electronic Announcement.
May 27, 2011 Note: Effective April 1, 2011, the Nelnet Total and Permanent Disability Servicer will process and service all general (non veterans) total and permanent disability discharge assignments and referrals. For complete details, including links to updated contact information, refer to the Electronic Announcement posted on March 25, 2011. Effective June 1, 2011, the Nelnet Total and Permanent Disability Servicer will also process and service all veterans total and permanent disability discharge assignments and referrals. For complete details, including links to updated contact information, refer to the Electronic Announcement posted on May 27, 2011.
We also replaced the errata sheet attachment, the Procedures document, and Appendix III.
November 15, 2010 Note: On November 15, 2010, we updated this announcement by replacing two attachments with updated versions. We also added a new attachment titled "Errata Sheet for Perkins Total and Permanent Disability Discharge Assignment Documents" which provides a list of the attachments that were replaced and a summary of the changes in each of the updated attachments.
In an August 13, 2010 Electronic Announcement on the Information for Financial Aid Professionals (IFAP) Web site, we announced the award of the Department of Education’s (the Department’s) total and permanent disability servicer contract to Nelnet and the overall transition plan for general total and permanent disability discharge assignments. The transition will include the continuation of work with the current total and permanent disability discharge servicing centers for a period of time after the Nelnet start on October 1, 2010.
Beginning October 1, 2010, the following three processing methods will be in effect:
The Nelnet Total and Permanent Disability Servicer in Denver, CO will receive and process new general total and permanent disability discharge assignments and referrals.
The Veterans Disability Discharge Unit in Atlanta, GA will receive and process all veterans total and permanent disability discharge referrals.
The Disability Discharge Loan Servicing Center in Greenville, TX will complete all general total and permanent disability discharge assignments and referrals submitted by loan holders prior to October 1, 2010.
In this announcement, we provide procedures that schools participating in the Federal Perkins Loan (Perkins Loan) Program will follow when submitting new general total and permanent disability discharge assignments and referrals to the Nelnet Total and Permanent Disability Servicer in Denver, CO. In addition, we include procedures that schools will follow when submitting veterans total and permanent disability discharge referrals to the Veterans Disability Discharge Unit in Atlanta, GA. All of these procedures are effective October 1, 2010.
We present the information in this announcement as follows:
Components of Total and Permanent Disability Discharge Assignment Procedures
Forthcoming Communication
Components of Total and Permanent Disability Discharge Assignment Procedures
The total and permanent disability discharge assignment procedures that schools will follow beginning October 1, 2010 are attached in PDF format at the end of this announcement. The six components are as follows:
Table of Contents - Lists the sections of the procedures document and all appendices.
Procedures - Provides all operational instructions and other information, including new National Student Loan Data System (NSLDS), submission address, and contact information (effective October 1, 2010).
Appendix I - Federal Perkins Loan Assignment Form: Contains a link to the approved Federal Perkins Loan Assignment form.
Appendix II - Manifest Instructions: Contains revised instructions for the manifest that must accompany hard copy files, including a revised Sample Manifest.
Appendix III - Veterans Disability Discharge: Contains procedures for referring applications from veterans applying under the special qualifications for veterans. As noted above, veterans total and permanent disability discharge referrals are submitted to the Veterans Disability Discharge Unit in Atlanta, GA.
Appendix IV - Discharge Application: Total and Permanent Disability: Contains a link to the approved Discharge Application: Total and Permanent Disability.
Forthcoming Communication
We appreciate the community’s patience and assistance as we transition to our new total and permanent disability discharge servicer. After we begin the transition on October 1, 2010, we will inform the community of this start and reiterate processing and contact information. Please monitor the IFAP Web site for this communication.