Posted Date:November 1, 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 Servicer Transition
In a September 6, 2013 Electronic Announcement posted to the Information for Financial Aid Professionals (IFAP) Web site, we provided initial information about our plans to transition the servicing of Federal Perkins Loans assigned to the Department of Education (the Department) to a new servicer, ECSI Federal Perkins Loan Servicer (ECSI).
In this announcement, we provide information about the transition and what schools and borrowers can expect over the next few weeks.
We present the information in this announcement as follows:
Federal Perkins Loan Servicer School Transition Information
Federal Perkins Loan Servicer Borrower Transition Information
Federal Perkins Loan Servicer School Transition Information
As noted in the earlier announcement, schools began sending Federal Perkins Loan assignments to ECSI on October 1, 2013. Beginning November 1, 2013, schools will begin to receive processing notices and status information about assignments from ECSI.
In addition, if a school has a question about a loan that has been submitted for assignment, it will contact the Client Support Team at ECSI. Contact information for ECSI can be found on the Loan Servicing Centers for Schools Contact Information page on the IFAP Web site.
Federal Perkins Loan Servicer Borrower Transition Beginning November 1, 2013
As explained in the earlier announcement, we will transfer Perkins Loan borrower accounts that have been assigned to the Department from the current servicer, ACS (Xerox), to the new servicer, ECSI. School-held Perkins Loans are not impacted by this transfer. The account transfers are planned for November 1, 2013.
Note: Although we generally use “ACS (Xerox)” when communicating about the contract end, Perkins Loan borrowers will better recognize the current servicer as ACS Campus Products and Services. This is the name that ACS (Xerox) has used in its communications with Perkins Loan borrowers over the years. Accordingly, we will use ACS Campus Products and Services in the remainder of this announcement.
The Department, along with ECSI, is committed to ensuring that the transfer process for existing Perkins Loans on November 1, 2013 goes as smoothly as possible for affected Perkins Loan borrowers. Key information about the upcoming transfer of existing Perkins Loans to ECSI is as follows:
- When the Department transfers a borrower’s Perkins Loans from ACS Campus Products and Services to ECSI, ACS Campus Products and Services will send an e-mail notification to the borrower provided there is a valid e-mail address on file. The e-mail will include preliminary notice of the transfer and ECSI’s name and contact information.
- In addition to the borrower receiving correspondence, ECSI will be identified as the servicer of the borrower’s Perkins Loans in the National Student Loan Data System (NSLDS). ECSI reports this information to the NSLDS after the transferred Perkins Loans have been fully loaded to its system. Both the borrower and the school will be able to view the federal loan servicer code and name associated with each Perkins Loan via the NSLDS Student Access Web site and the NSLDS Professional Access Web site, respectively.
- Loan status information will be included when we transfer a borrower’s Perkins Loans to ECSI. The borrower should experience no break or gap in any current status (such as deferment or forbearance) that applies to his or her Perkins Loans as a result of the transfer. If a borrower is concerned about a break or gap in current status, he or she should contact ECSI for assistance.
Regardless of whether a Perkins Loan borrower receives an e-mail notification from ACS Campus Products and Service, ECSI will correspond with the borrower after the transferred Perkins Loans have been fully loaded to its system. In this correspondence, ECSI will explain that the borrower’s Perkins Loans have been transferred and that ECSI will service the loans on our behalf going forward. The correspondence will include both toll-free phone number and Web site information for ECSI.
Generally, our federal loan servicers report account information to the NSLDS on a weekly basis. For this initial transfer, ECSI’s information should be available in the NSLDS within 30 business days after the transferred Perkins Loans have been fully loaded to its system and ECSI corresponds with the borrower.
The Federal Perkins Loan Servicer NSLDS identification information is as follows:
ED Servicer Code
ECSI Federal Perkins Loan Servicer
DEPT OF ED/ECSI Federal Perkins Servicer
However, it will be necessary for the borrower to contact ECSI to reinitiate some services related to the borrower’s account. After the transferred loans have been fully loaded to its system, ECSI will provide correspondence to the borrower that explains how the borrower establishes account access via the Web and signs up for other services (such as Web payments, electronic correspondence, and if necessary, automatic debit). If a borrower has questions about reinitiating account services, he or she should contact ECSI for assistance.
Note: A transferred borrower must start making payments to and communicating solely with ECSI. Once they have been notified of transfer, it is critical that borrowers who use a bank or bill paying service to make their payments update the bank or bill paying service with ECSI’s name and address.
We appreciate the community’s support as we transition to the new Federal Perkins Loan servicer. If you have questions about the transfer explained in this announcement, contact ECSI. School contact information for ECSI can be found on the Loan Servicing Centers for Schools Contact Information page on the IFAP Web site.