Posted Date:September 14, 2010
|Author:||Jana Hernandes, Service Director, Operations, Federal Student Aid|
Subject: Loan Servicing Information - First Year’s Customer Service Performance Results and Second Year’s Allocations
Note: In November 2015, we moved this announcement’s attachments to the FSA Data Center. The attachments for the Quarter Ending 6/30/2010 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#06302010.
As explained in previous communications, Federal Student Aid awarded four new contracts in June 2009 to provide additional servicing capacity for loans owned by the Department of Education (the Department). 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 federal loan servicers—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 the first year’s customer service performance results and the second year’s allocations with the financial aid community. The Department measured customer satisfaction with each of the federal loan servicers exclusively through independently administered customer satisfaction surveys conducted through June 2010. We assessed default prevention through analysis of each servicer’s portfolio.
We provide this information in two attachments to this announcement. In the attachment titled “Explanation of First Year’s Customer Service Performance Results,” we provide background information about the measures and a summary of the results. In the attachment titled “Final Calculation for Second Year’s Allocation,” we provide the customer satisfaction and default prevention results for each servicer and the allocation each servicer will receive in the second year.
We value the participation of all customers in the loan servicing process and thank you for your ongoing feedback.