Bulletin ID
DLB - 96 - 9
| PublicationDate: 7/1/96 BulletinID: DLB - 96 - 9 July 1996 DLB-96-9 OPTIONS FOR PROCESSING DIRECT LOANS : Award Year Specific Title IV WAN Destination Points Dear Colleague: The Department of Education has recently revised schools'options for processing William D. Ford Federal Direct Loans to allow for single year reporting. This change will permit schools to have two Title IV Wide Area Network (TIV WAN) destination points. Each destination point will be for a specific award year. This modification will help schools that want to transition from one form of processing Federal Direct Loans to another at the beginning of each award year. Establishing two destination points for different award years allows schools to easily change from: - one internal system to another (for example, mainframe to PC); - one third party servicer to another; - a third party servicer to processing Direct Loans at the institution; or - processing Direct Loans at the institution to a third party servicer. For example, if you are switching from a third party servicer to processing Direct Loans at your institution, you can now maintain the school's 1995-1996 Direct Loan information with the third party servicer and, at the same time, process 1996-1997 Direct Loan information at the campus. This allows for an accurate and efficient way to maintain the data for two distinct award years. In order to change from one processing system to another, the school will need to complete the attached Title IV WAN Participation Agreement (PA). For additional PA forms or guidance on completing this form, contact Title IV WAN Customer Service at 1-800-615-1189. NOTE: If your school is switching to a third party servicer, the servicer must also provide an original signature on the PA. As you complete the PA, be sure to clearly identify the destination points and the services listed for the different award years in the agreement form. For those institutions currently using third party servicers and switching to processing Direct Loans at the institution, the school should work with the third party servicer to resolve any outstanding issues and reconcile data with the Loan Origination Center for that award year. If the school needs additional assistance, please call Heidi Granger, Direct Loan Task Force Member at (202) 708-9951, or by e-mail, heidi_granger@ed.gov. Sincerely, Diane Voigt, Chair Direct Loan Task Force *[Note: The Title IV WAN Participation Agreement which is mentioned above is currently unavailable on the SFA BBS; for further assistance, please contact Customer Support at 1-800-433-7327.] |