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(Loans) Subject: Loan Servicing Information - NSLDS Duplication of Some Direct Loans Transferred During November - December 2010

Posted Date:March 18, 2011

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

Subject: Loan Servicing Information - NSLDS Duplication of Some Direct Loans Transferred During November - December 2010

As previously communicated, we transferred approximately 1.2 million William D. Ford Federal Direct Loan (Direct Loan) Program borrower accounts to new federal loan servicers during the period November - December 2010, with all loans being fully loaded on the new servicers’ systems by the end of January 2011. The purpose of this transfer initiative was to begin positioning student and parent borrowers who had Direct Loans assigned to the Direct Loan Servicing Center (ACS) and additional Direct Loans and/or Federal Family Education Loan (FFEL) Purchased Loans assigned to FedLoan Servicing (PHEAA), Great Lakes Educational Loan Services, Inc., Nelnet, and/or Sallie Mae to have one federal loan servicer for all of their federally-owned loans. Borrowers received correspondence from the new servicer upon completion of the transfer process.

All federal loan servicers report loan information to the National Student Loan Data System (NSLDS) on a weekly basis. We have identified an issue related to some of the transferred loans that has temporarily impacted the accuracy of some borrowers’ loan information in the NSLDS. The impact on borrowers is very limited; however, we want to inform the community of what has occurred and what we are doing to resolve the situation.

NSLDS Duplication of Some Direct Loans Transferred During November - December 2010

Data errors occurred during the weekly reporting process on March 13 and 14, 2011 that resulted in some borrowers’ transferred Direct Loans being duplicated and entered into the NSLDS. As a result, we generated Institutional Student Information Records (ISIRs) with inaccurate loan summaries and aggregate loan limit warnings. We regret the confusion that affected borrowers and schools may experience related to the data errors.

We have removed the duplicate information from the NSLDS. Now, we will focus on creating system-generated ISIRs containing NSLDS Loan Detail reflective of the correct loan balance information and pushing them to the Student Aid Internet Gateway (SAIG) mailboxes of schools that previously received 2010-2011 and 2011-2012 ISIRs reflective of the duplicate loan information. The number of borrowers for whom this occurred is approximately 32,000.

We plan to complete this work as part of our normal processing schedule on Tuesday, March 22, 2011. Schools will be able to identify the affected ISIRs through one of the following methods:

  • The ISIRs will be sent under the IGSG11OP (for 2010-2011 ISIRs) or IGSG12OP (for 2011-2012 ISIRs) message class.

  • The ISIRs will include an NSLDS Postscreening Reason Code = 99 and a CPS processed date of March 22, 2011 - March 25, 2011.

Contact Information

We appreciate the community’s ongoing support of our approach to servicing federally-owned loans and its patience and understanding related to the issue explained in this announcement.

If you have questions about this issue, contact the NSLDS Customer Support Center at 800/999-8219. You may also e-mail

Last Modified: 03/17/2011