Posted Date:September 21, 2011
|Author:||William Leith, Service Director, Program Management, Federal Student Aid|
Subject: Federal Perkins Loan Default Reduction Assistance Program (DRAP)
The Default Reduction Assistance Program (DRAP) assists schools in bringing defaulted Federal Perkins Loan (Perkins Loan) borrowers back into repayment before their accounts are sent to collection agencies. A letter is sent from the Department of Education (the Department) on official letterhead to defaulted Perkins Loan borrowers. It explains the serious consequences of default including the inability to obtain other federally supported financial assistance, withholding of federal and state income tax refunds, salary garnishment, and damage to credit history. It also encourages borrowers to contact the school to initiate repayment arrangements.
Below we provide user information and tips for successful processing in the fully electronic DRAP process.
Participation in the DRAP process is voluntary. There is no cost to the school.
The DRAP process is most effective when used during the 30-day period when the school is waiting for the defaulted borrower to respond to the final demand letter. Do not request this process once the account has been referred to a collection agency.
Accessing and Initiating the DRAP Process
All related functions of the DRAP process are accessed via the eCampus-Based (eCB) Web site. To access the DRAP section of the eCB Web site, log in at https://cbfisap.ed.gov and then select the "DRAP" link on the top navigation bar. From that point, follow the instructions for performing the identified functions.
To initiate the process, a school or its third party servicer logs in to the eCB Web site and enters information about borrowers who have defaulted on their Perkins Loans. The information may be entered for each borrower or it may be uploaded from a file. Following submission of this information, a letter will be printed and mailed by the Department to each borrower. As explained above, the letter will be printed on the Department's letterhead and will encourage the borrower to contact the school to initiate repayment arrangements.
If a servicer that submits DRAP data on behalf of a school does not also provide FISAP services for the school, the servicer must be granted read-only access to the FISAP.
Features of the electronic DRAP Process
A school or its third party servicer will be able to do the following:
- Submit borrower information for letters to be printed and mailed
- Maintain borrower information
- Edit DRAP contact information without the Department's intervention
- Run a report that assists in monitoring the letters mailed to borrowers
- Run a report that assists in tracking the total number of letter requests submitted
- Determine when a letter was mailed by the Department
- Determine if a letter was returned to the Department as "undeliverable" and if an address has been determined to be invalid
Address Information and Undeliverable Mail
The DRAP system will only accept physical addresses for borrowers to be contacted. P.O. Boxes will not be accepted.
The Department will send only one DRAP letter to each address provided by a school. “Undeliverable” letters are returned to the Department where they are logged into the eCB DRAP module along with the reason they were returned. Schools will need to log in periodically to review and print reports of undeliverable letters. Schools are encouraged to provide updated addresses. When an address is updated, a new DRAP letter is sent to the new address.
File Upload Limitations
Each file upload must be limited to 1000 borrowers. However, there is no limit to the number of uploads submitted by a school.
For additional information about DRAP, contact the Campus Based Call Center at 877/801-7168. Customer service representatives are available Monday through Friday from 8:00 a.m. to 8:00 p.m. (ET). You may also email CBFOB@ed.gov.