Posted Date:February 4, 2011
| Author: | Pamela Eliadis, Service Director, System Operations & Aid Delivery Management, Federal Student Aid |
Subject: Transition to New Debt Management and Collections System Beginning February 7, 2011
We are pleased to announce that the Department of Education (the Department) is beginning to transition to a new debt management and collections system used for defaulted loan accounts and program overpayments (POVRs). This announcement is the first in a series of announcements that provide information about the transition to the new debt management and collections system. The transition will include the continuation of work with the current debt management and collections system for existing defaulted loan accounts and POVRs until the full conversion takes place later this year.
In this announcement, we provide basic information about the new debt management and collections system and the overall transition plan. We present the information as follows:
Changes Beginning February 7, 2011
Changes Planned for Summer 2011
Existing Defaulted Loan Accounts and POVRs
Contact Information
Changes Beginning February 7, 2011
On February 7, 2011, we will begin to process a limited number of new defaulted Direct Loan accounts (meaning borrowers who do not have a loan or loans on the existing system) through the new debt management and collections system. For these selected accounts, borrowers will use a new Web site, https://www.myeddebt.com/index.html. The new Web site will also enable a borrower to retrieve his or her account information online.
A new code will also be reported in the National Student Loan Data System (NSLDS) for defaulted loans held by the Department. This new code, 556, will identify loans held by the new system. In the near future we will post an NSLDS Newsletter and Guaranty Agency (GA) Technical Update on the Information for Financial Aid Professionals (IFAP) Web site to provide NSLDS users with detailed information about the updates to NSLDS.
Changes Planned for Summer 2011
During the summer of 2011, we plan to fully implement the new debt management and collections system. At that time, existing defaulted loan accounts and POVRs will be moved to the new system. We will provide more information in future announcements to be posted on the IFAP Web site.
Existing Defaulted Loan Accounts, Loan Assignments, and POVRs
Until conversion is completed, existing defaulted loan accounts, loan assignments, and POVRs will continue to be serviced by the current debt management and collections system and the current Federal Student Aid Collections Web site will remain available.
Contact Information
We appreciate the community’s patience and assistance as we begin the transition to our new debt management and collections system. If you have questions about the information in this announcement, contact Collections Customer Service by phone at 800/621-3115. You may also e-mail drghelp@ed.gov.