Posted Date:July 22, 2015
|Author:||Mary Oknich, Acting Service Director, Operations, Federal Student Aid|
Subject: Loan Servicing Information - Federal Loan Servicer Team Change
We continue our efforts to improve the servicing of William D. Ford Federal Direct Loan (Direct Loan) Program loans and Federal Family Education Loan (FFEL) Purchased Loans, more simply referred to as federally-owned loans. In this announcement, we inform the community of an upcoming change to our federal loan servicer team.
One Not-for-Profit (NFP) servicer—Aspire Resources Inc.—is ceasing operations as a vendor in the federal student loan servicing team. This action is being undertaken at Aspire Resources Inc.’s request and is not related to its performance as a federal servicer. Direct Loan accounts currently assigned to Aspire Resources Inc. will be transferred to MOHELA, another NFP servicer.
The transfer of Direct Loan accounts from Aspire Resources Inc. to MOHELA will occur in several groups, beginning in August 2015 and ending in September 2015. All affected borrowers will be informed of the servicer change before and after the transfers occur.
The phone numbers, Web site addresses, and e-mail addresses for Aspire Resources Inc. will remain operational until we transfer all Direct Loan accounts to MOHELA. Once the transfers are completed, phone numbers, Web site addresses, and e-mail addresses will be redirected to MOHELA. We will inform the community of the closure and decommissioning dates through a subsequent Electronic Announcement on the Information for Financial Aid Professionals (IFAP) Web site.
Direct Loan Borrower Account Transfers from Aspire Resources Inc. to MOHELA
We, along with our federal loan servicers, are committed to ensuring that this transfer process goes as smoothly as possible for affected borrowers. We present key information about the upcoming transfers from Aspire Resources Inc. to MOHELA in question and answer format below.
Q1: How will a borrower know when his or her Direct Loans have been transferred from Aspire Resources Inc. to MOHELA?
A1: When we transfer a student or parent borrower’s Direct Loans from Aspire Resources Inc. to MOHELA, the borrower will receive notification by e-mail and letter. These communications will include preliminary notice of the transfer and MOHELA’s name and contact information.
In addition to the pre-transfer communications, MOHELA will correspond with the borrower after the transferred loans have been fully loaded to its system. In this correspondence to the borrower, MOHELA will explain that the borrower’s Direct Loans have been transferred and that MOHELA will service the loans on our behalf going forward. The correspondence will include both toll-free phone number and Web site information for MOHELA.
Q2: How will a school know when MOHELA is servicing a borrower’s Direct Loans?
A2: In addition to the student or parent borrower receiving correspondence from MOHELA, it will be identified as the servicer of the borrower’s Direct Loans in the National Student Loan Data System (NSLDS). MOHELA reports this information to the NSLDS after the transferred 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 loan via the NSLDS Student Access Web site and the NSLDS Professional Access Web site, respectively.
In addition to individual Web lookups, the School Portfolio Report (SCHPR1) is available to schools by request under the Report Tab on the NSLDS Professional Access Web site. This report provides a school with information about all Direct Loan and/or Federal Family Education Loan (FFEL) program loans associated with its school code. It includes loans that are serviced by all servicers, including our federal loan servicers, and provides identifying information about the servicer for each loan. The report is delivered to the school’s Student Aid Internet Gateway (SAIG) mailbox. For the most current information about this report, refer to NSLDS Newsletter 46 on the IFAP Web site.
Q3: How long will it take for MOHELA’s information to be reflected in the NSLDS?
A3: Our federal loan servicers report loan information to the NSLDS on a weekly basis. As a general rule, when we transfer a student or parent borrower’s Direct Loans from Aspire Resources Inc. to MOHELA, MOHELA’s information should be available in the NSLDS within seven to ten business days after the transferred loans have been fully loaded to MOHELA’s system and they correspond with the borrower.
The majority of servicer-to-servicer transfers are completed on schedule. However, in some cases, issues can occur with the data transfer and delay availability of the information in the NSLDS. If a school is concerned about MOHELA’s information not being available in the NSLDS, it should contact the Federal Student Aid Research and Customer Care Center (RCCC) at 800/433-7327 or email@example.com for assistance.
Q4: Will it be necessary for a borrower to reinitiate actions related to the current status of his or her account (for example, reapply for a deferment or forbearance)?
A4: Loan status information will be included when we transfer a student or parent borrower’s Direct Loans from Aspire Resources Inc. to MOHELA. The borrower should experience no break or gap in any current status (such as deferment or forbearance) that applies to his or her Direct 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 MOHELA for assistance.
Q5: Will it be necessary for a borrower to reinitiate services related to his or her account (for example, account access via the Web, electronic correspondence, and automatic debit or Web payments)?
A5: When we transfer a student or parent borrower’s Direct Loans from Aspire Resources Inc. to MOHELA, it will be necessary for the borrower to contact MOHELA to reinitiate some services related to the borrower’s account. After the transferred loans have been fully loaded to MOHELA’s system, MOHELA 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 MOHELA for assistance.
Q6: How will new borrower accounts scheduled for allocation to Aspire Resources Inc. be handled?
A6: New borrower accounts scheduled for allocation to Aspire Resources Inc. will be reallocated among the six remaining NFP servicers.
We appreciate the community’s support as we transfer borrower accounts from Aspire Resources Inc. to MOHELA. Please monitor the IFAP Web site for the forthcoming Electronic Announcement that will inform you of the closure and decommissioning dates associated with this federal loan servicer team change.
If you have questions about Direct Loans transferred to MOHELA, contact MOHELA directly. Contact information for MOHELA is available on the IFAP Web site’s Loan Servicing Centers for Schools Contact Information page.