9-12: Federal Perkins Loan Default Reduction Assistance Program (DRAP)

Posted Date: September 12, 2017

Author:  John Kane, Acting Service Director, Program Management, Federal Student Aid

Subject: Federal Perkins Loan Default Reduction Assistance Program (DRAP)

The Default Reduction Assistance Program (DRAP) assists schools in contacting defaulted Federal Perkins Loan (Perkins Loan) borrowers before their accounts are sent to collection agencies. A letter is sent from the Department of Education (the Department) on official Department letterhead to defaulted Perkins Loan borrowers. It explains the serious consequences of default including the loss of eligibility for additional federal student aid, the withholding of federal and state income tax refunds, wage garnishment, and damage to the borrower’s credit history. It also encourages borrowers to contact the school to initiate repayment arrangements.

In this announcement, we provide schools information and helpful tips about the DRAP process.

Participation

Participation in the DRAP process is voluntary. There is no cost to the school.

Timing

The DRAP process is most effective when used during the 30-day period when the school is waiting for the borrower to respond to the final demand letter. Do not request default reduction assistance once the account has been referred to a collection agency.

Accessing and Initiating the DRAP Process

All related functions of the DRAP process are accessed via the eCampus-Based (eCB) website. To access the DRAP section of the eCB website, log in at https://cbfisap.ed.gov and then select the "DRAP" link on the top navigation bar. From that point, follow the instructions for performing the identified functions.

To initiate the process, a school or its third-party servicer logs in to the eCB website and enters information about borrowers who have defaulted on their Perkins Loans. The information may be entered for each borrower or uploaded from a file. Following submission of this information, the Department will print individual letters on official Department letterhead and mail them to each borrower.

Important Note Concerning Third-Party Servicers and DRAP-only Access: If a third-party servicer submits DRAP data on behalf of a school, but does not also provide Fiscal Operations and Application to Participate (FISAP) services for the school, the servicer must be granted DRAP-only access to the school’s eCB account by the school’s Destination Point Administrator (DPA).

In addition, all eCB access requires Two Factor Authentication (TFA) using an FSA token. Third-party servicer staff must obtain the FSA token through their company’s DPA, but must request DRAP-only access for each school being serviced. Each school’s DPA will authorize or deny DRAP-only access.

Features of the Electronic DRAP Process

Through the DRAP process, a school or its third-party servicer will be able to:

  • Submit borrower name and address information for letters to be printed and mailed by the Department
  • Maintain/update borrower name and address information
  • Edit school’s DRAP contact information
  • Run a report that assists in monitoring the letters mailed to borrowers

Address Information and Undeliverable Mail

The DRAP system will only accept physical addresses for borrowers to be contacted. Addresses with Post Office boxes will not be accepted.

The Department will send only one DRAP letter to each address provided by a school. "Undeliverable" letters are returned to the Department where they are logged into the eCB DRAP module along with the reason they were returned. Schools will need to log in periodically to review and print reports of undeliverable letters. Schools are encouraged to provide updated addresses. When an address is updated, a DRAP letter is sent to the new address.

File Upload Limitations

Each file upload must be limited to no more than 1000 borrowers. However, there is no limit to the number of uploads that can be submitted by a school.

Contact Information

For additional information about DRAP, contact the Campus-Based Call Center at 877/801-7168. Customer service representatives are available Monday through Friday from 8:00 A.M. to 8:00 P.M. (ET). You may also email CBFOB@ed.gov.

 

Publication Date: 9/12/2017


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