Posted Date:August 24, 2011
|Author:||Pamela Eliadis, Service Director, System Operations & Aid Delivery Management, Federal Student Aid|
Subject: Full Conversion to New Debt Management and Collections System
In a February 4, 2011 Electronic Announcement posted on the Information for Financial Aid Professionals Web site, we informed the community that the Department of Education (the Department) was beginning to transition to a new debt management and collections system used for defaulted loan accounts and program overpayments (POVRs). Since then, we have implemented the new system and begun to add small groups of newly defaulted accounts to it. In the final stage of the conversion we will convert all accounts to the new system. This conversion is planned for late August through September 2011.
Debt Management and Collections System Conversion Outage Information
In order to convert to the new debt management and collections system, we will need to suspend debt management and collections system operations. The outage periods are as follows:
Beginning Friday, August 26, 2011 through Sunday, August 28, 2011, we will move approximately 100,000 borrowers to the new system.
Beginning Thursday, September 1, 2011 through Sunday, September 11, 2011, we will move all remaining borrowers to the new system.
Customer Service Representatives at the Default Resolution Group will be available during the outage periods, but will be limited in the assistance they can provide until the conversion has been completed.
Borrowers and those making payments on POVRs - Borrowers and those making payments on POVRs should continue to submit payments by the scheduled due date. Payments submitted during these periods will not be processed until after conversion has been completed.
Important Note: The effective date of the borrower’s payment will be determined by the date it is received, not the date it is processed. For example, if a borrower payment is received on Tuesday, September 6, 2011 and processed on Monday, September 12, 2011, the effective date of the payment will be Tuesday, September 6, 2011.
Schools - Collateral documents for Perkins Loan assignments and POVRs submitted during the conversion period will be processed after Monday, September 12, 2011. We anticipate having the backlog processed by Friday, September 16, 2011.
Guaranty Agencies - New assignments cannot be accepted during the conversion period. We will resume the collection of new assignments on Monday, October 3, 2011.
Additional information regarding the new debt management and collections system will be forthcoming. We will communicate this information through Electronic Announcements on the Information for Financial Aid Professionals (IFAP) Web site.
We appreciate the community’s patience and assistance as we convert to our new debt management and collections system. If you have questions about the information in this announcement, contact the Default Resolution Group at 800/621-3115. You may also e-mail email@example.com.