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How is the U.S. Department of Education helping “split” borrowers (student borrowers who have loans with more than one federal servicer)?

April 26, 2017borrowers Department Education Federal Helping Loans Servicer Split student

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How is the U.S. Department of Education helping “split” borrowers (student borrowers who have loans with more than one federal servicer)?

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• Federal Student Aid (FSA) uses the National Student Loan Data System (NSLDS) as frequently as every 2 months to identify split borrowers. • Based on set criteria, FSA requests a loan transfer. • For borrowers with both Direct Loans and PUT loans—The Direct Loans transfer to the servicer holding the PUT loans. • For borrowers with newly originated Direct Loans—The loans are automatically assigned to the federal servicer currently servicing an existing federally owned loan for that borrower. • Servicers complete the transfer approximately 45 days from the request. NOTE: This process applies to federally owned loans only.