[Lender] Operational Impacts of NSLDS Access Suspension

[Heid, Mary]

OGSLP Operational Impacts of NSLDS Access Suspension
On April 17, 2007, Susan Szabo, of the United States Department of
Education Office of Federal Student Aid made an announcement
<http://www.ifap.ed.gov/eannouncements/0417NSLDSAccess.html>  regarding
the temporary suspension of access to the National Student Loan Data
System (NSLDS) by all participants in the student loan program, except
students, borrowers and institutions of higher education.  This access
suspension includes but is not limited to lenders, servicers, and
guarantors.  

We do not anticipate this action to prohibit OGSLP from submitting our
monthly data to NSLDS.  We do realize that some of our business
operations will be impacted until access can be restored.  Today the
NCHELP Daily Briefing,contained an overview of the impact of this
temporary suspension.  Listed below are some highlights from NCHELP's
impact compilation:

Student Eligibility

*	Processing delays where borrower eligibility questions would
prohibit them from receiving new aid. 
*	Ability to calculate a student's cumulative loan amount borrowed
for financial aid administrators is severely hampered.  

Interim Servicing, Repayment Servicing and Default Prevention

*	Inability to research enrollment on a borrower.  
*	Inability to make NSLDS on-line updates for borrowers or
schools, if needed. 
*	Inability to assist borrowers with locating their loans

Default and Post Default Serving

*	Potential claim returns or rejects due to inability to verify
discrepant out of school dates. 
*	Schools will see an increase in lender inquiries regarding out
of school dates. 

Service to Borrowers Hampered

*	Response to borrowers will be difficult when identification of
outside loan holders is necessary. 
*	Will severely hamper the ability to address questions from
borrowers and schools regarding  loan repurchases and loan forgiveness. 

OGSLP is monitoring this issue closely and will keep you advised of
additional issues that may arise regarding this access suspension.
 
Sincerely,
Mary Heid 
NSLDS Supervisor 
Oklahoma Guaranteed Student Loan Program 
(405) 234-4489 

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