[Oasfaa] Default Letters

[Perry Diehm]

Sonya:

We do not wait for NSLDS because we want to award the student this
century.  If it is a standard "no longer in default" letter, we do not call
to recheck.  However, if it is a loan rehabilitation, we will call the Loan
Servicer to make sure the student has continued on the payment plan.
Generally, the default is off of NSLDS by the time any future disbursements
are due if the student has finished their rehab period.  If the default
still shows when the next award year/disbursent date comes around, we would
call again to make sure the rehab payments were fully met.  Most of our
students finish the rehab period if they have gone far enough to become
eligible for aid because it is just four more payments to clear the default
after the six required for aid eligibility.

Hopefully this helps.

Perry

On Thu, Oct 29, 2026 at 11:35 AM Gore, Sonya D. <sonya.d.gore at occc.edu>
wrote:

>
>
> How are schools processing aid using the loan default letters clearing the
> default, but not updated in NSLDS?
>
> Are there any schools that wait for NSLDS to be updated prior to
> disbursing aid?
>
> Do you have a staff member that calls to verify the loans are still in
> good standing before each disbursement?
>
> How do you identify the students prior to disbursing the aid?
>
>
>
> Anything that you can share will be greatly appreciated.
>
>
>
> Sonya Gore
>
> Director, Financial Aid
>
> Oklahoma City Community College
>
>
>


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