Bulletin ID
DLB - 97 - 8
| PublicationDate: 2/1/97 BulletinID: DLB - 97 - 8 DLB-97-8 February 1997 SUMMARY: Guidance on the transition of loan origination activities to the new Loan Origination Center. This Bulletin is a follow-up to DLB-97-5, which discusses the plan for transfer of loan origination and reconciliation functions from Computer Data Systems, Inc. (CDSI) to Electronic Data Systems (EDS). This transition is scheduled to occur between February 14, 1997 and March 3, 1997. DLB-97-5 states that schools may continue to drawdown funds during the transition; however, there will be an interruption in the processing of electronic transactions and promissory notes. The final processing of records (the final "get") by the current contractor will be the morning of February 21. Thus, we encourage schools to transmit as many records as possible to Utica prior to the temporary shutdown, February 21 - March 3. The bullets below provide you with additional guidance for a smooth transition. - Submit all promissory notes to the Loan Origination Center in Utica by February 14, 1997. After February 14, all promissory notes should be sent to the Loan Origination Center in Montgomery: U. S. Department of Education Loan Origination Center P.O. Box 5692 Montgomery, AL 36103-5692. - Transmit all loan origination records and disbursement records (including adjustments and cancellations) as soon as possible. Do not wait until February 20. Try to report this information prior to February 15. - Try to resolve all unreconciled items prior to February 20. - After February 20, do not send records previously submitted. If you are not sure what was submitted, re-submit these records prior to February 20. - After March 3, reconciled acknowledgments may take up to 5 days (instead of 2) to be returned to you during the first few months of the new Loan Origination Center's operations. - There will be a new reconciliation code called "R9" which means "file was not completely reconciled by the Loan Origination Center." The transition will cause some records to require manual intervention. In order to prevent any delays, records requiring extra time may be returned to you in an "R9" status until the record is fully reconciled. - Option 1 and Standard Origination schools will receive a drawdown of funds at the beginning of the transition. The drawdown will be for all anticipated disbursements to be funded during the transition period. Since the temporary shutdown period is more than the three days allotted for disbursement of funds, schools will not be held accountable for excess cash resulting from the shutdown. However, immediately following the shutdown, schools should return excess cash to: U. S. Department of Education Loan Origination Center P.O. Box 2011 Montgomery, AL 36102-2011. Remember, all payments (monies to be applied directly to a borrower's account) should be mailed to: U. S. Department of Education P.O. Box 746000 Atlanta, GA 30374-6000. Upon Multi-Servicer start-up (July 1, 1997), separate P.O. Boxes will be designated for payments and correspondence to each Direct Loan Servicer. These P.O. Boxes will be provided in a future bulletin which will address 1997-98 Direct Loan Program changes. - Back-up your data! Please note that several address corrections were made to the EDS contact information provided in the FAXED version of DLB-97-5. These corrections were provided in the hard copy format which was mailed to schools in addition to the fax. Once again, we regret any inconvenience the transition may cause, and thank you for your patience and continued support of Direct Loans. Sincerely, Joe L. McCormick, Chair Direct Loan Task Force |