Perkins Loan Performance Work Statement_DRAFT_11132023.docx

United States Department of Education Federal Student Aid

November 8, 2023 Perkins Loan Servicing Performance Work Statement

Table of Contents

Table of Tables

Introduction This Performance Work Statement (PWS) details requirements associated with Federal Perkins Loan servicing for a portfolio owned by the U.S. Department of Education (The Department or ED). Federal Student Aid (FSA) is a subdivision of the Department and oversees loan servicer administration of the ED owned portfolio. The Government’s current Perkins Loan portfolio is serviced by Educational Computer Systems (ECSI) Inc. a subsidiary of Heartland Payment Systems. This contract is set to expire no later than July 31, 2024.

The Federal Perkins Loan Program is one of three Title IV Campus Based Programs. Perkins loans were originally awarded by colleges and universities (also referred to in this document as schools or institutions). While Perkins loans are no longer being awarded some institutions still service their existing Perkins portfolios. The authority to award new Perkins loans ended on September 30, 2017, and no additional disbursements were issued after June 30, 2018.

The Federal Perkins Loan Program also includes Federal Perkins Loans, National Direct Student Loans (NDSLs), and National Defense Student Loans (Defense Loans). No new Defense Loans were made after July 1, 1972, but a few are still in repayment.

The overall Federal Perkins Loan Portfolio is comprised of the school-held Perkins Loan Portfolio and the Department held Perkins Loan Portfolio. Institutions or their servicers administer the Perkins Loan Portfolio (School Held). The school held Perkins Loan Portfolio contains approximately 1.9 million open loans (as of August 2023). The Department’s Perkins Loan Portfolio (ED Held) comprises defaulted and non-defaulted Perkins loans. The ED held non-defaulted Perkins Loan Portfolio contains approximately 525,000 loans.

Institutions that have elected to stay in the Perkins program are required to report on their Perkins Fund and portfolio annually on the Fiscal Operations Report and Application to Participate (FISAP).

Institutions and servicers are required to report Perkins Loan activity, at the loan level, to the National Student Loan Data System (NSLDS). NSLDS is the national database of information about the Federal financial aid history of recipients of student financial assistance. As the central database for Title IV student financial aid since 1993, the NSLDS stores information about loans, grants, students, borrowers, lenders, guaranty agencies, institutions, and loan servicers. It provides an integrated view of Title IV loans and grants during all stages of their life cycle—from aid approval through disbursement, repayment, default, and closure. A Federal Perkins Loan is a low-interest loan (see rates below) for both undergraduate and graduate students that meet financial need criteria. Federal Perkins Loans were made through the school’s financial aid office. The school served as the lender, and the loan is made with the Perkins loan revolving funds.

Table 1 presents key information regarding a Federal Perkins Loan.

· 3% interest ended after 6/30/1981.

· 4% interest was between 7/1/1981 – 9/30/1981.

· 5% interest began 10/1/1981.

Table 1: Perkins Loan Information When an institution servicing its Perkins portfolio decides to end their participation in the program, the institution must transfer its Perkins loans to the Federal government by assigning the loans to the Department. Institutions may assign Perkins loans to the Department at any time. Loans assigned to the Department make up the ED held Perkins loan portfolio.

Perkins Loan Assignment Process Institutions may continue to hold and manage their existing Perkins portfolios in order to recoup as much of their capital investment made to their program until the eventual wind-down of the portfolio. If a school loses its eligibility to participate or chooses to no longer participate because it is no longer feasible for a school to continue in the program, the school must liquidate and close-out their program. As part of the liquidation and close-out process, a school must transfer all outstanding loans to the Department for servicing, or the institution reimburses the Department for the portion of the existing Perkins loan portfolio that cannot transfer to the Department through assignment. Institutions use the liquidation process by electronically notifying the Department’s Grants and Campus Based Division (GCBD) their intent to terminate participation in the Federal Perkins Loan Program. Several steps must occur in order to liquidate a Perkins Loan portfolio. Step-by-step guidance for this process is provided at Federal Perkins Loan Assignment and Liquidation Guide Institutions may assign Perkins loans and Total and Permanent Disability (TPD) discharges to the Department using the approved assignment form along with the required documentation and additional information (e.g., promissory note, judgments, payment history). Institutions send loans for assignment by mailing the assignment form and documents to the Federal Perkins Servicer; or alternatively by entering the assignment form data into an electronic online loan assignment system established and maintained by the Federal Perkins Loan Servicer, and then mailing the promissory note to the Federal Perkins Servicer. Loans submitted for assignment through the mail are entered into the electronic online loan assignment system by the Federal Perkins Loan Servicer. The Federal Perkins Loan Servicer ensures that ALL loans submitted for assignment, regardless of how they are submitted, are in the electronic online loan assignment system. The Federal Perkins Loan Servicer works directly with institutions to obtain information or documentation needed to facilitate acceptance of a loan for assignment.

The Federal Perkins Loan Servicer for the Department held portfolio reviews the submitted assignment forms, promissory notes and documentation and makes a determination to accept or reject the loans. Loans that are accepted for assignment are added to the Federally held Perkins Loan Portfolio to be serviced by the Federal Perkins Loan Servicer. Assignments not accepted by ED are rejected back to the school. The Federal Perkins Servicer maintains detailed data in the electronic online loan assignment system on each loan submitted for assignment and makes data available to Department authorized users of the assignment system in useable on-demand reports.

The Federal Perkins Loan Servicer begins reporting on an assigned loan to NSLDS as soon as it has been accepted for assignment, essentially completing the transfer of the loan in the NSLDS system.

Guidance for Perkins Loan Assignments is provided at: https://fsapartners.ed.gov/sites/default/files/attachments/201907/PerkinsAssignmentandLiquidationGuide.pdf The remainder of this section presents the impetus for changes in the Federal Perkins Loan Program, the potential impacts on the future of the Federal Perkins Loan Program and impacts on both the Federally held and institution held Perkins loan portfolio.

There are internal and external factors that may shape the future landscape of the Federal Perkins Loan Program and Perkins Portfolio including:

· The Office of Management and Budget (OMB);

· The President’s Management agenda, and;

· Federal Student Aid’s 5-year strategic plan.

Key factors about to the Federal Perkins Loan Program:

1. The Perkin’s Loan program is slowly winding its way down but may take years until loans are repaid or otherwise fully retired. Perkins Loans typically have a 10-year repayment plan. However, borrowers can extend the time in repayment via forbearance or deferment.

Example:

-The authority allowing institutions to make new loans ended in 2017.

-The borrower borrowed a Perkins loan in September 2016.

-The borrower graduated in December 2017; they would receive 9 months grace (ending September 30, 2018.

-COVID forbearance started March 2020 and will end August 31, 2023 (42 months) -Although the 10-year repayment period would normally end approximately September 30, 2028, because there was 42 months of COVID forbearance, the repayment period would end April 1, 2032.

2. FRESH Start: Fresh Start is a one-time temporary program from the Department that offers special benefits for borrowers with defaulted federal student loans. Upon request/application, borrowers can request to have their defaulted loan transferred back to a non-default servicer. Loans are put in a repayment status and the default tradeline deleted with the credit reporting agencies.

3. Elimination of institutions as servicer:

Although institutions are allowed to continue to service their current portfolio, many institutions will likely liquidate their Perkins portfolio to the Department. The servicer of the Perkins Loan Portfolio (Federally held) must accommodate the assignment of a significant percentage of Perkins loans through the liquidation process.

With the increase in loan volume expected for the Perkins Loan Portfolio (ED held), a servicer will need to focus on default aversion through changing macroeconomic environments. Although the Department has unique legal tools to recover students’ federal obligations (e.g., default reduction assistance, wage garnishment, treasury offset) there is room to further decrease the cost of the federal student aid programs to the American taxpayer without affecting their effectiveness.

The servicer of the Federal Perkins Loan Portfolio (ED held) will be required to service, monitor, and report on loans throughout the financial aid lifecycle (e.g., repayment, cancellation, closure).

Per FISAP ending 06/30/23 School Held borrowers – 596,128 Outstanding principal balance (School held) $1,633,171,349

4. Total and Permanent Disability (TPD) Changes

The Department is in the process of changing how TPD is processed. Currently, loans being discharged are transferred to a designated TPD servicer for processing. However, soon the holder of the loan will not transfer the loan. They will discharge the loan in house.

5. After the On Ramp process is completed, 9/30/24, borrowers will once again begin to age into default and transfer to Debt Management and Collections System (DMCS), the Department’s default servicer. Approximately, 90% of the loans being assigned to the Department are defaulted. DMCS will service the defaulted loans. The Perkins Loan servicer will be a pass through to DMCS. They will accept the assignments and then transfer the loan to DMCS.

Federal Student Aid customer contact information This section presents the contact information for the contracting officer (CO), contract specialist (CS), and the contract officer representative (COR).

Table 2: Contact information Period of performance The table below presents the period of performance for the base contract and subsequent option years.

Table 3: Period of performance Scope The Department developed this Performance Work Statement to acquire a Servicer that, at a high-level, can perform the following activities.

Develop a security compliant system to allow the electronic submission, processing and validation of loan assignment data (single loan and multiple loan batches) from institutions and/or third party contractors to support the requirements and design approved by the Department; and which will allow the recording and storing of all loan assignment activities for each loan including the upload and storage of loan documents; and which will permit querying and report creation of all loan assignment data. This includes the form 1845.

Receive and process the intake of a varying volume of submissions of loans for assignment to include electronically submitted as well as mailed assignment submissions.

Process each loan submitted for assignment by determining if the loan is supported adequately by the documents provided and ensuring that the documentation is acceptable for establishing the validity of the debt.

Perform the research and the outreach to institutions in cases in which additional information or documentation is needed to facilitate the assignment of a loan(s); notify institutions regarding accept or reject decisions.

Serve as a point of contact for institutions with questions regarding loan assignability, required documentation, status of assignment submissions, etc.

Record in the electronic system all loan assignment activities for all loans submitted, grouping loan submissions by school as well as individually in the system, and providing total access to all data to the Department authorized users, as well as providing on-demand real-time reports in the system.

Submit loan data to NSLDS to report on Perkins loans that have been accepted for assignment in the same week that the loans were accepted; review error reports and resolve discrepancies preventing loans from being reported to NSLDS within 1 week of the initial submission (to include contacting a school if a loan record needs to be corrected by the school to facilitate successful reporting) Provide the Department with monthly (and ad hoc) reports to include but not be limited to the breakdown and details of the monthly volume of incoming assignments, status of assignment submissions, carryover, and rejected loans.

· Leverage its existing servicing solution (e.g., Commercial off the shelf (COTS) product, a modified COTS product, internally developed system) to:

· Service the Federal Perkins Loan Portfolio (Federally held) in its current state.

· Maintain images of documents associated with loans and borrowers provided by institutions, other servicers, or previous servicer.

· Send appropriate correspondence to borrowers.

· Develop client reports.

· Report to the Department systems NSLDS and FMS

· Transfer loans to the Total and Permanent Disability Servicer and the Default Servicer as appropriate.

· Support consolidation of Perkins loans into Direct Loans

· Meet the Department’s needs in a dynamic environment (i.e., scalability to meet an increase in the Federal Perkins Loan Portfolio (Federally held) to the entirety of the Federal Perkins Loan Portfolio)

· Provide superior customer service.

· Call-center support

· Borrower self-service capabilities through servicing website

· Documents in alternative format (Braille, Large print, Audio CD, and Data CD upon the request of the borrower)

· Implement proven default aversion measures to improve the Federal Perkins Loan Portfolio (Federally held)

· As mentioned in the Background section of this document, the current Federal Perkins Loan Portfolio (Federally held) is serviced by Educational Computer Systems (ECSI) Inc. The Servicer shall collaborate with Educational Computer Systems (ECSI) Inc. to plan transition activities for knowledge sharing and transferring of loans (e.g., inter-system testing, scheduling loan transfers, scheduling image transfers, transferring loans, transferring images).

Government furnished property/equipment/information Homeland Security Presidential Directive 12 (HSPD-12), issued on August 27, 2004, required the establishment of a standard for identification of Federal Government employees and contractors. HSPD-12 directs the use of a common identification credential for both logical and physical access to federally controlled facilities and information systems. https://www.dhs.gov/homeland-security-presidential-directive-12 Two factor authentication requirements:

Performance requirements Federal Student Aid is looking for a servicer to provide a wide range of services. This section categorizes and details the performance requirements for the services requested. The offeror shall also develop a quality plan detailing how the offeror will meet performance requirements and standards.

Minimum Information Technology Contract Requirements for Information Systems:

Regulatory compliance

The solution shall conform to all applicable local, state and federal government regulations. Regulations can be reviewed at http://www2.ed.gov/about/offices/list/ope/library.html The solution shall be TCPA compliant.

The solution shall be 508 compliant.

The solution shall be Fair Credit Reporting Act (FCRA) compliant.

The solution shall be NIST compliant.

The solution shall be FISMA compliant.

Vendor monitors for changes in regulations, annually.

Vendor maintains 508, TCPA, FCRA, NIST, and FISMA compliance.

Self-reported by vendor during monthly status reports, as applicable.

Transition plan signed off on by client, current contractor, and new Perkins servicer.

Draft submitted for review and comments.

Contract Officer Representative and Business Owner sign off on final document.

Contractor shall provide anticipated durations for transferring up to 2.1 million loans to the proposed solution.

Solution shall provide the capability to associate images to borrower accounts.

All borrower correspondence sent and received, and promissory notes are imaged.

Ability for the Deparment and client site users to easily retrieve images associated with borrowers and their loans.

Attendees rate the value and effectiveness of the training sessions as satisfactory or above.

· Associate images to borrowers and loans

· Establishing accounts

· Returning accounts to ED

· Sending repayment notifications

· Billing

· Initiating refunds

· Handling write-offs, cancellations, discharges, deferments, and forbearances

· Transferring loans

· Establishing payment plans

· Processing payments (e.g., checks, money orders, ACH, credit card)

· Processing suspended transactions (e.g., transactions that cannot be applied to a borrower account)

· Calculate interest daily using the following formula (The amount of interest that accrues daily is calculated by multiplying the certified principal by the daily interest rate factor (interest per diem). The daily interest rate factor is the validated annual interest rate for each underlying loan divided by 365.25 days. The contractor shall calculate daily interest out to 5 decimal places and truncate.)

· Storing promissory notes – old notes being transferred from prior servicer, notes being transferred from institutions, notes transferred from Total and Permanent Disability Servicer or transferred from DMCS The Servicer will meet or surpass all Federal and the Department standards and regulations for servicing Perkins loans within the Government-held Perkins portfolio.

Loan data is accurate and reported timely to the Department’s systems.

98% edit passage rate with the Department’s systems (e.g., NSLDS, FMS).

Servicer reports on loans on agreed upon schedule.

Monthly status reports detailing dates loans are reported to NSLDS and financials reported to FMS.

The solution shall identify delinquent loans and initiate due diligence.

The solution shall identify skip accounts and schedule skip activities. (bad addresses, emails and phone numbers).

The solution shall continue and monitor skip trace cycle.

The solution shall identify defaulted loans and transfer to DMCS.

Servicer implements effective default aversion tools to prevent delinquent borrowers from going into default.

Defaulted loans are transferred to DMCS.

· Account status

· Borrower request

· Delinquency condition

· Forbearance/Deferment ending notice

· Documentation received (e.g., request for deferment or forbearance)

· Change in loan terms

· Cancellation request status

The contractor shall develop an escalation procedure for handling customer inquiries.

The contractor shall develop and implement a training plan for call center representatives.

The contractor shall provide daily and monthly customer service reports that include, but not limited to, the following information:

· Number of calls offered

· Number of calls answered

· Number of calls abandoned

· Average speed of answer

· Number of calls answered through the IVR (Interactive Voice Response)

Review of daily and monthly customer service reports.

Provide access to the Department to listen to live and record phone calls.

· Account information

· Federal Perkins Loan Information

· Deferments

· Cancellations

· Forbearance

· Payment Options

· Regulatory Information

· Link to consolidation

The solution shall provide the capability for the Department to develop ad hoc reports.

The solution shall provide online reports that are downloadable in pdf and excel file formats.

Canned reports are available online and downloadable in pdf and excel format.

Canned reports are saved in a library as new reports become available.

Ad hoc reports are easily created by the Department’s staff.

Errors are corrected within 1 week.

Perkins loans and loan activity are submitted to NSLDS with a 97% or higher edit passage rate.

Errors are resolved with NSLDS prior to the next submission.

Monthly reports of edit passage rates and errors as developed by NSLDS contractor.

· Servicer system trial balance by fund is compared to the FMS trial balance each month-end

· Principal and interest from the servicing system is compared to FMS and balanced monthly

· Servicer system compares unapplied cash in servicer system to FMS unapplied cash balances

· Servicer system verifies the Department’s cash collections and posting by doing monthly bank reconciliations Financial reports sent to FMS timely and accurately.

Errors are corrected within 1 week.

Comparison of actual versus scheduled dates of distribution of financial reports.

· Unprocessable and misdirected payments

· General ledger summary file reconciliations

· Ca$hLink II/TRS to GL summary file reconciliations

· Reconciliation of applied/unapplied cash

· Refund file reconciliation

· Monthly submissions to the Department Reconciliation reports are sent to the Department timely and accurately.

Errors are corrected within 1 week.

Comparison of actual versus scheduled dates of distribution of reconciliation reports.

Assignments

Loans in the electronic system are updated in real-time as accept/reject decisions are made, or other actions or changes occur.

Monthly reports, as well as at least once-weekly viewing of data and reports from electronic assignment system

Five attempts within thirty business days will be made to contact the school to obtain the needed documentation or information. Loan will then be rejected back to the school no later than thirty days after first attempt if required documents and/or information is not received.

Make determinations of acceptance/rejection based on established guidelines.

Detailed within the monthly status reports list number of loans assigned, assignments in progress, loans unable to assign to ED. Additionally, report the average number of days for each successful and unsuccessful assignment.

Table 4: Performance requirements

Deliverables This section presents the required deliverables of the vendor, corresponding acceptance criteria, and suggested due dates. Templates of each deliverable can be found at the Department’s Lifecycle Management Methodology (LMM) website https://studentaid.gov/sites/default/files/fsawg/static/gw/docs/ciolibrary/LMM_Process_Guide.

The occurrence/due date column reflect the Departmemt’s proposed due dates in order for the Servicer to complete the transfer of loans from the current servicer and begin servicing loans by July 2024. The offeror may propose updated due dates, if needed. The offeror shall include a proposed schedule within the response to this PWS.

Project management plan

Implementation/Transition Management Plan

Reports

Annually

Correspondence

· Welcome letter: Informs borrowers that their loans have been transferred to the current Servicer’s loan servicing center.

· Account status

· Borrower request

· Delinquency condition

· Documentation received (e.g., request for deferment or forbearance)

· Change in loan terms

· Correspondence to institutions related to assignment of loans to include but not be limited to acceptance reports and detailed rejection reports

Pricing The offeror shall price one-time deliverables separately as firm fixed price. Ongoing deliverables (e.g., monthly status reports) shall be included in the cost for servicing business functions. The offeror shall propose a pricing strategy for servicing business functions and performance requirements. Additionally, the offeror’s role in the liquidation process of school’s Perkins portfolio shall be priced as an optional task. Appendix D presents the evaluation factors for price proposals.

Change Management The Business Change Management Process is used by the Department to request and manage new and modified requirements for systems and services. This process provides the Department an efficient and prompt mechanism to request new and modified requirements in a common, consistent process based on business need and available resources.

This process is managed by the Department and will interface with the Perkins Servicer’s change configuration management process. This process does not replace the requirement for the Perkins Servicer to maintain change.

Change Management Division (CMD) is responsible for the management of requirement Change Requests (CR) for Title IV systems and servicers across the Department enterprise for all principal offices such as Partner Participation and Next Generation Program Office, Student Experience and Aid Delivery, Finance, and Technology to be considered by contracts for funding and authorization to work, as well as managing the change throughout the requirement and testing lifecycle processes.

Reporting requirements

· 48000.010: The contractor shall submit per the schedule and method provided the reports

· 48000.011: The contractor shall support the defined reporting templates, schedule and submission method.

See 48000_Enhanced Reporting Template attachments below 48000_01. Contact Center Statistics 48000_02. Customer Interaction Logs 48000_03. Timeliness Report Template 48000_04. Volume Report 48000_06. Staffing and Forecast Report 48000_07. Contact Center Quality Control Template 48000_08. Customer Complaint Log 48000_09. Credit Reporting and Dispute Reporting Template 48000_AA. Enhanced Reporting Categories and Subcategory 48000_Legacy Reporting CR Table

· 48000.012: Daily is defined as Monday to Friday excluding federal holidays.

· 48000.013: Weekly and monthly reports that fall on weekends or federal holidays will be submitted the next federal business day.

· 48000.020: Definitions, data types, and formatting shall be adhered to without modification as specified in the template for all templates except the “Internal Quality Assurance and Error Report” which can be submitted in a format defined by the servicer. Definitions for all data fields are provided in the template on the Definitions tab.

· 48000.030: All fields with repetitive data, such as the vendor NSLDS GA code, shall be filled in for every record so the Department can automate the extraction.

· 48000.040: The servicer shall email their assigned POCs separately from the report submission with important notes or comments regarding the report. the Department will be automating the processing of the reports for inclusion in other reports and will not be manually reading the emails or notes within the report.

· 48000.050: Reports to be submitted via email

· 48000.051: Reports requiring email submission per requirement 1 shall be updated and emailed to a list of the Department staff and mailboxes set by the Department.

· 48000.052: The report submission email shall be titled “CRXXXX NSLDS GA CODE Report Name” where NSLDS GA CODE is the three-digit NSLDS assigned GA code used to identify the servicer and the Report name is the given report name.

· 48000.053: The file shall be named “CRXXXX NSLDS GA CODE Report Name YYYYMMDD” where NSLDS GA CODE is the three-digit NSLDS assigned GA code used to identify the servicer, YYYY is the four-digit year, MM is the two-digit month, and DD is the two-digit day. For example, if Nelnet submitted their weekly “Volume Report” on January 18, 2022, the file would be labelled: “CR XXXX 580 Volume Report 20220118”.

· 48000.054: The “Customer Complaint Log” report will contain and the “Contact Center Quality Control” and “Internal Quality Assurance and Error” reports may contain customer PII and those reports shall be password protected with the COD password.

· 48000.055: All of the other reports submitted by email shall not contain PII and shall not be password protected.

· 48000.056: Weekly reports shall include data for the prior 90 calendar days. Monthly data shall include data for the prior 12 months.

· 48000.057: The Staffing and Forecast Report shall provide 6 months of forecast data except for the PerSec detail which at least 2 months of forecast data will be provided.

· 48000.060: Reports to be submitted via SAIG Mailbox

· 48000.061: Reports requiring SAIG Mailbox submission per requirement 1 shall be updated and submitted to the SAIG Mailbox for processing and loading into EDWA.

· 48000.062: Each data tab within each template will be submitted as a csv comma delimited file to the EDWA SAIG mailbox TGN4866 where the file name and message class IDs are specified in Appendix Table A: Details on Files and Tables.

· 48000.063: Informational tabs (definitions and categories) shall not be submitted. The data types row in each data tab shall be removed before submission.

· 48000.064: Weekly reports shall include data for the prior week only. Monthly data shall include data for the prior month only. Daily reports shall include data for the prior day only.

· 48000.065: The Staffing and Forecast Report shall provide 6 months of forecast data except for the PerSec detail which at least 2 months of forecast data will be provided.

· 48000.070: Test reports shall be provided by contractor and loaded into EDWA.

· 48000.080: The vendor shall support troubleshooting of any issues related to the test reports to include submitting subsequent test reports until the report and process is approved by the Department.

· 48001.000: The contractor shall provide regular operation and financial reports

· 48001.010: The contractor shall provide to the Department the operational and financial reports on the proscribed schedule and frequency and to the designated delivery points.

· 48001.011: The following attachment(s) contain some of the relevant reporting templates:

48001_Bankruptcy Aging Report (Monthly) 48001_Bankruptcy Report (Monthly) 48001_Discharge Application and Aging Report (Monthly) 48001_Dischargre Approval Denial Workflow (Weekly) 48001_LoansRehab (Monthly) 48001_Performance Tracking Summary (Monthly) 48001_Portfolio Cohort Performance (Monthly) 48001_Portfolio Summary Report (Monthly) 48001_Service Member Delinquency Report (Monthly) 48001_Service Member Listing Report (Monthly) 48001_Servicer Clearance Requests (Monthly) 48001_Servicer Inventory Report (Monthly) 48001_Touch Point Call Report (Bi-weekly)

· 48001.012: The Department will provide the contractor with the specific timing for each report, file naming conventions and the associated distribution list.

· 48002.000: The contractor shall provide a weekly closed school and automatic closed school discharge reports.

· 48002.010: The contractor shall provide the closed school and automatic closed school discharge applications report to the Department every Monday by 5pm ET. If Monday is a holiday the report shall be provided by 5pm the following business day.

· 48002.020: The report shall include all processing of closed school and automatic closed school discharge applications through the prior Friday. Details of the report shall be created along with other operational reports (see attachments 48002_Discharge Automatic Closed School, 48002_Discharge Closed School, and 48002_Discharge Closed School Application Report).

· 48002.030: The report shall be a cumulative report each week (including all CSD and ACSD applications processed for ALL Institutions). Existing application entries will be updated and new entries will be added.

· 48002.040: The closed school report shall be sent to fsaitemsubmission@ed.gov and to tivasreports@ed.gov. The Department may add additional email locations to receive the report periodically. The subject line of the report should be “CSD. 700XXX.MMCCYY” (Where 700XXX is the specific 6-digit code for the contractor (i.e. 700500 for MOHELA) and MMDDCCYY is the Friday date that the report is reporting through).

· 48002.050: The automatic closed school report shall be sent weekly reports to TivasReports@ed.gov and fsaitemsubmission@ed.gov (and/or other addresses as requested by the Department). The subject line of the report should be “Automatic Closed School Discharge.700XXX.MMCCYY” (Where 700XXX is the specific 6-digit code for the servicer (i.e. 700500 for MOHELA) and MMDDCCYY is the Friday date that the report is reporting through).

· 48003.000: The contractor shall provide the Department weekly reporting via email to the Department identifying administrative forbearance statistics.

· 48003.010: Reports shall be provided by 11:00 am ET on Mondays and sent to tivas.reports@ed.gov; Patrick.Campbell@ed.gov, Mark.LaVia@ed.gov, and Marc.Piccolo@ed.gov (other addresses may be added as needed).

· 48003.020: Report shall be provided in Excel format as an attachment to the daily email.

· 48003.030: See attached reporting template 48003_Admin Forb Statistics (CR5505).

· 48004.000: Deleted – borrower defense

· 48005.000: The contractor shall properly encrypt and password protect files containing borrower PII being sent by email or uploaded.

· 48005.010: Unless otherwise directed by other requirements, the contractor shall encrypt and password protect any documents containing borrower personally identifiable information being emailed or transferred.

· 48005.020: Unless otherwise directed by other requirements, the contractor shall use the COD monthly password for any documents being emailed or transferred to the Department.

ED Servicer data provider instructions This appendix presents the ED Servicer data provider instructions. The Servicer shall use the guidance provided within the ED Servicer data provider instructions to report Perkins loans to NSLDS.

https://fsapartners.ed.gov/sites/default/files/2023-04/FederalPerkinsDPInstructions.pdf

Section12000: NSLDS

· 12000.000: The contractor shall submit borrower and loan data via the NSLDS loan submittal file. See attachments:

· 12000_ED contractor DPI Appendix A [Note: USDS servicers are not required to support the following record types that are referenced in Appendix A:

AW – TEACH Grant Data Elements BC – Public Service Loan Forgiveness Data BK – Public Service Loan Forgiveness Employment Data Elements BO – CB TEACH Grant specific record types (various) CC – CG PSLF specific record types (various) 12000_ED contractor DPI Appendix B 12000_ED contractor DPI Appendix C 12000_ED contractor DPI Appendix D 12000_ED contractor DPI Appendix E 12000_ED contractor DPI Appendix Main Pages 12000_NSLDS Enrollment Reporting Guide - Main Text (for reference only) 12000_NSLDS Enrollment Reporting Guide – Appendices (for reference only)

· 12000.01: The contractor shall create an NSLDS loan submittal file that will contain borrower and loan information for all loans on the contractor's system.

· 12000.011: The contractor shall provide the NSLDS loan submittal file in accordance with the most recent version of the Data Provider Instructions (DPI) which will be periodically updated via CR.

· 12000.02: The contractor shall submit the loan submittal file no less frequently than once per week on a scheduled day of the week.

· 12000.021: The contractor shall report new loans or updates to existing loans no less frequently than weekly.

· 12000.022: The contractor shall submit their file between Sunday and Thursday no later than 2pm EST.

· 12000.023: The contractor shall not extract the data from the contractor's system more than 24 hours before the scheduled load date.

· 12000.03: The contractor shall create the NSLDS loan submittal file and follow the NSLDS Data Provider Instructions (DPI) which includes file layouts & definitions.

· 12000.031: The contractor shall report the record type associated to any change to any data element, identified in the NSeLDS DPI, weekly.

· 12000.032: The contractor shall submit an Outstanding Balance (AQ) or Loan Current State (AR) record type at least once per month if no data elements have changed within the month.

· 12000.033: The contractor shall report changes on all the loans in the portfolio, from the time a loan is disbursed until:

- The loan is closed and successfully reported to NSLDS with a closed loan status (unless additional adjustments are made after closure of the loan)

- The loan is transferred to another entity (federal loan contractor or guaranty agency) and the transfer is successfully reported to NSLDS

- The loan is transferred to Debt Management and Collection contractor (DMCS) and the transfer is successfully reported to NSLDS

· 12000.034: The contractor shall submit all required and applicable record types and data fields listed in the NSLDS DPI upon first reporting of any new or transferred loan to NSLDS.

· 12000.04: The contractor shall report or re-report any record type for any open or closed loan when requested by Federal Student Aid.

· 12000.05: The contractor shall submit the file via SAIG using Message Class GASLDSIN

· 12000.06: The contractors shall submit their NSLDS loan submittal file to SAIG Mailbox TG53160.

· 12001.000: The contractor shall receive and process an NSLDS Response File (error file) for each NSLDS loan submittal file sent to NSLDS.

· 12001.01: The contractor shall accept the NSLDS Response File and use the NSLDS DPI to determine which loans failed to pass NSLDS edits.

· 12001.02: The contractor shall receive their NSLDS Response File via SAIG using Message Class GASLDSOP.

· 12001.03: The contractor shall receive their NSLDS Response File from SAIG Mailbox TG53160.

· 12002.000: The contractor shall correct loans with errors, identified in the NSLDS Response File, and resubmit with the next NSLDS loan submittal file.

· 12002.01: The contractor shall attempt to correct all records and include the corrected records with the next loan submittal file

· 12002.011: Except when the error message returned is AU 210 (Award ID - Award being serviced by another provider). The contractor shall suppress re-reporting for this error.

· 12002.02: The contractor shall report all uncorrected records with the…