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(Loans) Subject: Loan Servicing Information - Direct Loan Servicing Center (ACS) Issue Affecting Small Number of Graduate or Professional Student Direct PLUS Loan Borrowers

Posted Date:February 24, 2012

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

Subject: Loan Servicing Information - Direct Loan Servicing Center (ACS) Issue Affecting Small Number of Graduate or Professional Student Direct PLUS Loan Borrowers

We are aware of an issue that is affecting a small number of graduate or professional students whose Direct PLUS Loans are serviced by one of our federal loan servicers, the Direct Loan Servicing Center (ACS). The issue has prevented the affected students' Direct PLUS Loans from having an in-school deferment applied or extended based on enrollment status. As a result, the affected students are being notified by the servicer that they must begin repaying their Direct PLUS Loans.

We understand the criticality of this issue and regret its impact on the affected graduate or professional students. The Direct Loan Servicing Center (ACS) is working to expeditiously resolve the issue by applying or extending an in-school deferment, as appropriate, based on enrollment status. We will ensure that no student is penalized or loses any benefit to which he or she is entitled as a result of this issue.

Until the issue is resolved, the Direct Loan Servicing Center (ACS) will assist the affected graduate or professional students in remedying the situation. Customer service representatives will work with each affected student individually to determine the best course of action. Affected students can obtain this assistance by contacting the Direct Loan Servicing Center (ACS) at 800/848-0979.

We apologize for the inconvenience the issue causes the affected graduate or professional students and their schools. We appreciate the assistance schools will provide in directing affected students to the Direct Loan Servicing Center (ACS). School personnel may direct questions they have to the Direct Loan Servicing Center (ACS) School Services Team at 888/877-7658.

Last Modified: 02/23/2012