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(Campus-Based) Subject: Perkins Loan Servicing Information - Federal Perkins Loan Assignment Changes and Borrower Transition to New Servicer

Posted Date:September 6, 2013

Author: Jana Hernandes, Service Director, Operations, Federal Student Aid
Sue O'Flaherty, Service Director, Program Management, Federal Student Aid

Subject: Perkins Loan Servicing Information - Federal Perkins Loan Assignment Changes and Borrower Transition to New Servicer

In earlier announcements (January 10, 2013 and July 12, 2013), we reminded the financial aid community of our preparations for the forthcoming end to our contract with ACS (Xerox), including the servicing of Federal Perkins Loans assigned to the Department of Education (the Department).

We are pleased to announce that in the next few months, we will fully transition the servicing of Federal Perkins Loans assigned to the Department to a new servicer, ECSI Federal Perkins Loan Servicer. In this announcement, we provide information about an upcoming change to the assignment process for schools assigning Federal Perkins Loans to the Department and preliminary information about the borrower transition to ECSI.

We will post additional Electronic Announcements as we progress through the transition. Please monitor the Information for Financial Aid Professionals (IFAP) Web site for these announcements.

We present the information in this announcement as follows:

  • Federal Perkins Loan Assignment Changes Beginning October 1, 2013

  • Federal Perkins Loan Servicer Borrower Transition Beginning November 1, 2013

Federal Perkins Loan Assignment Changes Beginning October 1, 2013

One of the more immediate transition activities will be a change to the submission process for Federal Perkins Loan assignments. Currently, schools submit assignments to the Perkins Loan Assignment Processing Center in Greenville, TX.

Beginning October 1, 2013, schools will-

  • Submit new Federal Perkins Loans assignments to the ECSI Federal Perkins Loan Servicer in Coraopolis, PA. Schools will also send to ECSI assignments that were rejected by the Department, but not resubmitted prior to October 1, 2013. (We call these "resubmissions.")

    Note: All assignments and resubmissions that are sent to ECSI must use the current OMB-approved assignment form (expiration date 11/30/2015). Old versions of the form will not be accepted.

    In addition, although assignments and resubmissions will be sent to ECSI beginning October 1, 2013, a school will not receive processing notices or status information about these submissions until after November 1, 2013.

  • Continue to work with the Perkins Loan Assignment Processing Center in Greenville, TX to complete all assignments and resubmissions received in Greenville by September 30, 2013.

In the near future, we will post updated assignment submission procedures that include the new address to be used beginning October 1, 2013. Note that the required documentation and overall assignment process will not change. Only the entity and address to which the assignments are sent will change.

Federal Perkins Loan Servicer Borrower Transition Beginning November 1, 2013

As we transition to the new servicer, we will transfer Perkins Loan borrower accounts from ACS (Xerox) to ECSI Federal Perkins Loan Servicer. This transfer is planned for November 1, 2013. When we transfer the accounts, borrowers will be notified and provided with the new servicer’s contact information.

In addition, we will update the National Student Loan Data System (NSLDS) with the new servicer information. The Federal Perkins Loan Servicer NSLDS identification information is as follows:

Servicer NameNSLDS NameED Servicer Code
ECSI Federal Perkins Loan Servicer DEPT OF ED/ECSI Federal Perkins Servicer 529

More information about the transfer of the borrower accounts will be provided in forthcoming announcements on the IFAP Web site.

We appreciate the community’s support as we transition to the new Federal Perkins Loan servicer.

Last Modified: 09/05/2013