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(Direct Loans) Subject: Loan Servicing Information - Transition to New Direct Loan Servicing Center (ACS) System and Web Sites Planned for Fall 2011 (Update #2)

Posted Date:July 14, 2011

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

Subject: Loan Servicing Information - Transition to New Direct Loan Servicing Center (ACS) System and Web Sites Planned for Fall 2011 (Update #2)

We have previously informed the community that the Direct Loan Servicing Center (ACS), one of the Department of Education’s five federal loan servicers, plans to transition to a new loan servicing system in fall 2011. In addition to the new system, the Direct Loan Servicing Center (ACS) will launch new Web sites for schools as well as William D. Ford Federal Direct Loan (Direct Loan) borrowers and Teacher Education Assistance for College and Higher Education (TEACH) Grant recipients.

Through a series of announcements, we will inform the community of transition-related activities and preparations. To date, we have posted two electronic announcements on the Information for Financial Aid Professionals (IFAP) Web site (June 10, 2011 and June 24, 2011).

In this announcement, we provide the following information:

  • Direct Loan Borrower/TEACH Grant Recipient E-mail Campaign Begins July 18, 2011

  • Contact Information

Direct Loan Borrower/TEACH Grant Recipient E-mail Campaign Begins July 18, 2011

As explained in the June 24th announcement, Questions and Answers (Q&As) that provide Direct Loan borrowers and TEACH Grant recipients with information about the transition are available on the current Direct Loan Servicing Online Web site. These borrower Q&As are located in the Direct Loan Servicing News section. Available in English and Spanish, the Q&As cover topics such as Payment-Related Changes, Borrower Web Site Changes, Account and Billing/Correspondence Changes, and Electronic Services Changes.

We informed the community that Direct Loan borrowers and TEACH Grant recipients would be directed to the borrower Q&As through e-mail and other communication campaigns starting in July 2011. In addition to including an enclosure in monthly billing statements, interest rate statements, and variable interest rate change notices that informs borrowers about the discontinuation of semi-annual coupon billing, the Direct Loan Servicing Center (ACS) is ready to begin its Direct Loan borrower/TEACH Grant recipient e-mail campaign on July 18, 2011.

Through this e-mail campaign scheduled over the next two months, the Direct Loan Servicing Center (ACS) will generate e-mails to all Direct Loan borrowers and TEACH Grant recipients who have valid e-mail addresses on the system. Each borrower/recipient will receive an e-mail that provides notice of the transition to the new system and borrower Web site. The individual will be directed to the borrower Q&As on the current Direct Loan Servicing Online Web site for more information about these changes.

If a Direct Loan borrower or TEACH Grant recipient has questions about the transition, he or she will be able to talk with a customer service representative at the Direct Loan Servicing Center. All representatives have been fully trained to assist with transition-related questions. In addition, on July 18, 2011, the Direct Loan Servicing Center (ACS) will add a message about the transition to its Interactive Voice Response (IVR) system. Individuals who wish to listen to this message will be able to select it from the menu options.

Note: Customer service representative assistance and the transition-related IVR message also will be offered in Spanish.

We request the community’s assistance in encouraging Direct Loan borrowers and TEACH Grant recipients to contact the Direct Loan Servicing Center with their transition-related questions. They also should be encouraged to monitor the Direct Loan Servicing Online Web site on an ongoing basis for updates regarding the transition to the new system and Web site.

Contact Information

We appreciate the community’s patience and assistance as the Direct Loan Servicing Center (ACS) transitions to its new system and Web sites. We will continue to inform the community about the transition. Please monitor the IFAP Web site for these announcements as well as the Direct Loan Servicing Online for Schools Web Site for ongoing updates to the posted Q&As.

If you have questions about the transition, contact the Direct Loan Servicing Center (ACS) School Services Team by phone at 888/877-7658. You may also contact the Direct Loan Servicing Center (ACS) School Services Team via the Web by visiting the current Web site at http://www.dl.ed.gov/schools.

Last Modified: 07/13/2011