Special_Notice_for_Department_of_Education_Loan_Servicing_Contracts.pdf

The Bipartisan Budget Act of 2013 eliminates the mandatory funding that the Department was authorized to use to pay eligible and qualified not-for-profit (NFP) student loans servicers who have contracts with the Department of Education. The Act does not require the termination of any existing servicing contracts. Provided sufficient discretionary funds are appropriated, we plan to continue with plans originally announced on September 23, 2013; to make the first allocation of additional borrower accounts among current NFP servicers based on their scores for the four quarters ending on June 30, 2014, on the five performance metrics established in the

NFP contracts. Specific allocation results will be announced after August 15, 2014. In the context of this plan, the Department will no longer consider new or existing requests for modifications to existing teaming arrangements. If the Government’s servicing needs change in the future a public announcement will be made.