Publication Date: March 2004
Bulletin ID: DLB-04-05
Summary: Late Stage Delinquency Assistance Update
Posted on 03-16-2004
March 2000
DLB-04-05
Subject: Late Stage Delinquency Assistance Update
Dear Partner:
This bulletin provides you with supplementary information about Late Stage Delinquency Assistance (LSDA) and should be used in conjunction with DLB 03 35, issued in August 2003. As a reminder, LSDA is a strategy to help you reduce borrower delinquency, lower your Cohort Default Rate (CDR), and strengthen the integrity of the Direct Loan Program.
Specifically, this bulletin describes a newly available "one-click" LSDA report available on the Direct Loan Servicing Center (DLSC) web site, https://schools.dlssonline.com/main.asp. We also want you to be aware of a new initiative to promote the use of LSDA by all Direct Loan schools in 2004.
What is the new LSDA Report?
To streamline the LSDA process, the DLSC developed a "one-click" LSDA report. Added in December 2003, this report provides you with a comprehensive list of "late stage" delinquent borrowers who, if they default, will impact your school's CDR. The report provides important information that you need to immediately initiate LSDA activities, including name, social security number, home address, telephone numbers, number of days delinquent, and the original loan amount. This "one-click" LSDA report does all of the research for you, and the borrowers listed are the borrowers that your school needs to focus on for purposes of LSDA.
How do I access the LSDA Report?
You can access the LSDA Report in a few short steps.
Step 1 Log in to the COD web site, www.cod.ed.gov, with your username and password.
Step 2 Go to Links page (by clicking on "Links" at the bottom of the COD homepage) and select the first link, https://schools.dlssonline.com/main.asp.
Step 3 Select School Reports.
Step 4 From the pull-down menu, select Delinquency Reports.
Step 5 Select Late Stage Delinquency Assistance (LSDA) Report.
The LSDA report is sorted by the number of days delinquent and cohort year. The report shows the borrower's current home address and work and home phone numbers on file with the DLSC. You can augment this information with your school's Student Accounts Office, Registrar Office, Alumni Office, Perkins Loan Office, or other school-based contact information. Additional suggestions for using this information to contact borrowers are provided in DLB 03 35.
Which cohort year in the LSDA Report should I review?
We are in that unique time of year when we have two repayment cohorts--2003 and 2004--running concurrently. It is well into the 2003 cohort (ending September 30, 2004), so at this point, you can have the most influence on the 2004 cohort (ending September 30, 2005). While you may wish to be attentive to the cohort year of at-risk borrowers, keep in mind that if a borrower appears on your LSDA Report, he or she falls within one of the two open cohort years, and, by virtue of having achieved late stage delinquency status, is a borrower that you need to address through your school's LSDA initiative.
A Collaboration to Promote LSDA
The Direct Loan Coalition announced in a press release issued on February 2, 2004 that it is initiating a collaborative effort with FSA's Direct Loan Repayment staff and the DLSC to promote LSDA among all Direct Loan schools during 2004. The Direct Loan Coalition's press release is available at http://www.altrue.net/site/ndslc/content.php?type=1&id=7939.
We are looking forward to working with the Direct Loan Coalition on this project. If you wish to obtain additional information about this project, you can contact the Direct Loan Coalition directly at www.DirectStudentLoanCoalition.org or any of the FSA staff listed below:
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Thank you for your ongoing partnership in the Direct Loan Program.
Sincerely,
Jane Holman
Acting Director, Title IV Delivery
Schools Channel