Bulletin ID
DLB - 97 - 5
| PublicationDate: 1/1/97 BulletinID: DLB - 97 - 5 DIRECT LOANS BULLETIN DLB-97-5 January 1997 Dear Colleague: On March 3, 1997, Electronic Data Systems (EDS), under the direction of the U.S. Department of Education, will begin managing loan origination and reconciliation at the Loan Origination Center (LOC) in Montgomery, Alabama. The transition period between the time the LOC comes on line and the origination functions at the current Utica contractor are transferred will be from February 14, 1997 through March 2, 1997. During this time, we want you to be fully informed and prepared as we begin implementing the new system. You will be receiving more Direct Loan Bulletins that will provide comprehensive and timely information on the transition. The Department has been working to ensure a smooth transition. This transition was postponed for a year because the Department was not satisfied that the new system was sufficiently developed and tested. We have spent the last year completing the development and thorough testing of the new system. We are confident that the new loan origination system and processes will be implemented successfully and will meet the high performance standards we have set for it. EDS, under the Department's guidance, has taken every precaution to guarantee that Direct Loans will continue to be processed and serviced efficiently. You can feel confident that EDS staff will have a thorough understanding of Direct Loan origination and reconciliation. You should plan to continue business as usual. The LOC, under EDS's management, should be viewed as the same system schools have used for the past three years. In addition, during the first two weeks of operation, the Utica Center's school relations staff will work alongside the Montgomery LOC school relations staff to ensure a smooth cutover for loan origination and reconciliation activities. Transition Activities DURING THE TRANSITION PERIOD THERE WILL BE NO INTERRUPTIONS IN THE FLOW OF FUNDS TO SCHOOLS. SCHOOLS MAY CONTINUE TO MAKE DRAWDOWNS. However, there will be an interruption in the receipt and processing of electronic transactions, promissory notes, and endorser forms. We will temporarily shut down manual processing of hard copy forms such as promissory notes and endorser forms on February 14. From February 21 through March 2, we will temporarily shut down electronic loan origination processing to move loan origination and reconciliation from the current contractor in Utica to the Montgomery LOC. We encourage schools to transmit as many records and PNotes as possible to the Utica Center prior to the temporary shutdown. Because the Utica Center will not be able to process 1997-98 transactions, we ask that schools hold those transactions until after shutdown of origination functions at Utica on February 21. (NCS will distribute the 1997-98 EDExpress software starting mid-March. However, EDS will be ready to accept 1997-98 records on March 3 from schools that use custom software.) The attached table explains how transactions will be handled during the transition and what to expect after the transition. How to Get In Touch With the Montgomery LOC Post Office boxes are currently open in Montgomery, Alabama, but mail received at the LOC will not be processed completely until March 3. Until then, the LOC will open the mail and process the issues that can be handled prior to the March 3 start-up. As of the March 3 cutover, School Relations Representatives can be contacted in Montgomery on the current school relations number, 1- 800-848-0978, from 8:00 a.m. to 8:00 p.m. EST. (The number will be transferred from the Utica Center to the Montgomery LOC. ) Applicants who call the current borrower services telephone number will be asked if their question relates to origination; if so, they will be transferred to the LOC in Montgomery. The new telephone number and address for applicant services at the Montgomery LOC will be enclosed with all applicant letters, beginning early February 1997. Addresses and Phone Numbers for Direct Loan Services, Montgomery, AL Service P.O. Box Zip Code Number School Relations 5692 36103-5692 800-848-0978 Applicant Services 5691 36103-5691 800-557-7394 Consolidation 1723* 36102-1723 800-557-7392 TDD 800-557-7395 Fax 800-557-7396 Excess Cash Return 2011* 36102-2011 Compass Bank Acct. No. 707 2672 6 ABA 0620 0118 6 *PLEASE NOTE: THESE P.O. BOXES WERE INCORRECT ON THE FAXED COPY OF DLB-97-5. Overnight/Express Mail Delivery: U.S. Department of Education Loan Origination Center Suite 400 474 South Court Street Montgomery, AL 36104-4102 We regret any inconvenience the transition may cause but we want to ensure the new system and databases are complete when we bring the LOC on line. Thank you for your patience and your continued support of Direct Loans. Sincerely, Joe L. McCormick Chair, Direct Loan Task Force Attachment |