Posted Date:November 15, 2013
Author: | Jana Hernandes, Service Director, Operations, Federal Student Aid |
Subject: Loan Servicing Information - Complete Closure of Direct Loan Servicing Center (ACS) Contact Center Effective November 16, 2013
In a series of Electronic Announcements posted on the Information for Financial Aid Professionals (IFAP) Web site, beginning with an announcement posted on January 10, 2013, we informed the financial aid community of our preparations for the end to our contract with the Direct Loan Servicing Center (ACS). These announcements included detailed information about the closure of all functions performed by ACS (Xerox), including its servicing of William D. Ford Federal Direct Loan (Direct Loan) Program loans.
In a recent September 30, 2013 announcement posted on the IFAP Web site, we informed the community that on October 1, 2013, the Direct Loan Servicing Center (ACS) began only offering informational messaging directing borrowers and schools to other resources.
In this announcement, we provide information on the complete closure of the Direct Loan Servicing Center (ACS) contact center effective November 16, 2013 and remind the financial aid community of our previously posted guidance. We will refer to this servicer as the “Direct Loan Servicing Center” throughout the rest of the announcement.
We present the information in this announcement as follows:
Direct Loan Servicing Center Closure
Previously Posted Guidance
Contact Information
Direct Loan Servicing Center Closure
As explained in our series of announcements, we have phased out the availability of the Direct Loan Servicing Center contact center. Since October 1, 2013, the Direct Loan Servicing Center has only been offering informational messaging and automatic e-mail acknowledgement messages.
Effective November 16, 2013, all Direct Loan Servicing Center support and messaging will no longer be available. The Direct Loan Servicing Center phone number, e-mail address, and Web site will be inaccessible.
Below are important reminders for transferred borrowers who will no longer be able to contact the Direct Loan Servicing Center.
A borrower must start making payments to and communicating solely with his or her new federal loan servicer.
A borrower can access the NSLDS Student Access Web site to identify the servicer to which the borrower's loans have been transferred. A school that assists a borrower in identifying the new servicer of the borrower's loans can access the new servicer information through the NSLDS Professional Access Web site.
It is critical that a borrower who uses a bank or bill paying service to make his or her payments update the bank or bill paying service with the new servicer's name and address.
Previously Posted Guidance
Below is a list of the previously posted communications on the closure of the Direct Loan Servicing Center.
Loan Servicing Information - Federally-Owned Loan Transfer Initiative Planned for January - August 2013, Posted on January 10, 2013: This announcement provided high-level information about the end to our contract with the Direct Loan Servicing Center and the start of the transfer initiative of all Direct Loans from the Direct Loan Servicing Center to some of our other loan servicers.
Loan Servicing Information – Upcoming Federal Loan Servicer Team Changes, Posted on July 12, 2013: This announcement explained the transition of all functions performed by ACS (Xerox). This included providing more high-level information about the closure of the Direct Loan Servicing Center contact center.
Loan Servicing Information – Direct Loan Servicing Center (ACS) Transfer Update and Closure Plan, Posted on August 16, 2013: This announcement provided a transfer update as well as information about the availability of the Direct Loan Servicing Center prior to its closure. The attachment to this announcement, titled “Direct Loan Servicing Center (ACS) Availability Information August 30, 2013 – November 15, 2013,” provided all the detailed information regarding the closure plan for the Direct Loan Servicing Center contact center.
Loan Servicing Information – Direct Loan Servicing Center (ACS) Transfer Completion and Availability Information, Posted on September 6, 2013: This announcement reported on transfer completion and the reduced availability of the Direct Loan Servicing Center.
Loan Servicing Information – Need Financial Aid Community’s Assistance in Limiting Misdirected Calls to Direct Loan Servicing Center (ACS), Posted on September 20, 2013: This announcement informed the community of where to direct borrowers and financial aid personnel in need of assistance to lower the volume of calls to the Direct Loan Servicing Center during the reduced operating hours.
Loan Servicing Information – Direct Loan Servicing Center (ACS) Closed Beginning October 1, 2013, Posted on September 30, 2013: This announcement informed the community of the closure of the Direct Loan Servicing Center that began on October 1, 2013, when only informational messaging directing borrowers and schools to contact other resources became available.
Contact Information
We appreciate the community's ongoing support of our approach to servicing federally-owned loans. If you have questions about a loan that has been transferred from the Direct Loan Servicing Center to a new federal loan servicer, contact the new servicer directly. Contact information for the appropriate servicer can be found on the Loan Servicing Centers for Schools Contact Information page on the IFAP Web site.