What is late stage delinquency assistance (LSDA)?
A. Late Stage Delinquency Assistance (LSDA) is available for both Direct Lending and FFEL Program schools. LSDA focuses on students who are more than 240 days delinquent in their loan repayment obligation. With LSDA, we ask schools to act as liaison between borrowers and loan servicers. Once the connection is made, there is help available to prevent the loan from entering default. Employing LSDA at your school will require minimal time and staff, reduce your school’s cohort default rate and save your former students from the unpleasant consequences of default. It is a win-win opportunity. For more information on this default reduction technique as well as others, please contact either Mark Walsh at (816) 268-0412, mark.walsh@ed.gov or John Pierson at (404) 562-6269, john.pierson@ed.gov.
