8-15: Loan Servicing Information - Federal Loan Servicer Team Change Update and Contact Center Support Service Status

Posted Date: August 15, 2016

Author:  John Brooks, Service Director, Operations, Federal Student Aid

Subject: Loan Servicing Information - Federal Loan Servicer Team Change Update and Contact Center Support Service Status

In a July 21, 2016 Electronic Announcement posted on the Information for Financial Aid Professionals (IFAP) Web site, we notified the financial aid community that one Not-for-Profit (NFP) servicer—VSAC Federal Loans—would be ceasing operations as a vendor of the federal loan servicer team. We also informed the community of the resulting transfers of the William D. Ford Federal Direct Loan (Direct Loan) Program loan accounts from VSAC Federal Loans to Nelnet.

In this announcement, we provide information on transfer completion and transfer-related reminders. We also inform the financial aid community about the phone number, Web site, and e-mail status for VSAC Federal Loans.

We present the information in this announcement as follows:

  • Transfer Completion and Transfer-Related Reminders

  • Phone Number, Web Site, and E-mail Status

  • Contact Information

Transfer Completion and Transfer-Related Reminders

All Direct Loan accounts previously assigned to VSAC Federal Loans were successfully transferred to Nelnet in early August 2016. As previously explained, servicers communicated with impacted borrowers about these transfers.

  • A transferred borrower must start making payments to and communicating solely with Nelnet.

  • A borrower can access the National Student Loan Data System (NSLDS) Student Access Web site to identify the servicer to which the borrower's loans have been transferred. A school that assists a borrower in identifying the servicer of the borrower's loans can access servicer information through the NSLDS Professional Access Web site.

    Note: Nelnet will report loan information to NSLDS the Thursday after the transferred loans have been fully loaded to Nelnet’s system. NSLDS will have the updated information in place the following Monday.

  • Borrowers who used automatic debit to make payments will not need to reinitiate this service with Nelnet. However, borrowers who use a bank or bill paying service to make their payments will need to update the bank or bill paying service with Nelnet 's name and address.

  • New status change requests submitted to VSAC Federal Loans via its retiring P.O. Box for correspondence will be forwarded to Nelnet for approximately 60 days. However, as explained above, a transferred borrower must start submitting such requests to Nelnet.

  • The reporting of a loan made to an ineligible borrower who had been serviced by VSAC Federal Loans must be made to Nelnet. Nelnet will take the appropriate action.

For other key information about the transfer process in question and answer format, refer to the July 21st Electronic Announcement.

Phone Number, Web Site, and E-mail Status

Below is a table outlining contact center support services—phone numbers, Web sites, and e-mail addresses—for VSAC Federal Loans.

Contact Center
Support Service

Status

Phone Numbers

  • All VSAC Federal Loans phone numbers will redirect to Nelnet for approximately 60 days, after which these phone numbers will be disconnected.

Web Sites

  • The VSAC Federal Loans borrower Web site will remain active for approximately 5 months after the final transfer, after which the Web site will be decommissioned.

E-mail

  • All e-mails sent to VSAC Federal Loans e-mail addresses will be forwarded to Nelnet for approximately 60 days, after which all e-mails sent to VSAC Federal Loans’ e-mail addresses will receive bounce-back messages.

Contact Information

We appreciate the community’s support during the transfer of borrower accounts from VSAC Federal Loans to Nelnet.

If you have questions about Direct Loans transferred to Nelnet, contact Nelnet directly. Borrower and school contact information for Nelnet is available on the IFAP Web site’s Loan Servicing Centers for Students page and Loan Servicing Centers for Schools page, respectively.

 

Publication Date: 8/16/2016


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