Allocation_Refills_for_Existing_NFPs.pdf

Allocation Refills for Existing Not-For-Profit Servicers

As previously announced, the Department plans to determine additional borrower allocations to high-performing NFP servicers in August 2014. At that time, the Department will review performance data and operational needs and determine which NFPs meet the minimum performance requirements necessary to continue servicing federal student loans. Accounts held by those NFP servicers with scores below the minimum will be allocated to those NFP servicers with performance scores at or above the minimum. Pending these reallocations, the Department will not allocate additional borrower accounts to existing NFP servicers that have fallen below their initial allocation of 100,000 accounts per eligible and qualified NFP entity for reasons such as loan pay-offs, defaults, or discharges. This will avoid customer service issues that could result from borrowers being transferred multiple times over the next twelve months. Subject to availability of funds, in August 2014 the Department will examine ways to bring all servicers receiving additional allocations up to a minimum of 100,000 accounts per eligible and qualified NFP entity.