[Oasfaa] summary of lender question

[Jonna Raney]

Several of you asked me to summarize the information that I received regarding the process schools are going to follow in order to obtain new mpn's for current borrowers who used lenders who have now opted out of the loan programs.

Some schools are sending a letter to all students w/ those lenders explaining they are no longer participating and giving them instructions to choose a new lender and complete a new mpn.  Some are contacting the students at the time of awarding their 0809 aid w/ basically the same info.  Finally, a third option is to contact the student once they return the signed 0809 award letter.

I think we are going w/ the third option.  We will email them the info when we have the signed award letter in hand. We will also enter a missing doc tracking code for those students and then some time this summer (prob mid-July) we will send a hard copy letter to those w/ the code.

I think your processing manner will play a part in what works for you.  We are totally borrower initiated, so we never cert a loan (except for return borrowers whose lender is still participating) until the student has completed an mpn on-line and we get the certification request.  If you are school initiated, my process probably won't work for you because they will have to choose their lender before you can certify them to get the mpn sent to the student.

Thanks for all the responses!  It's great to have all of you out there ready to help when I'm stumped.

Have a great week!
Jonna