Wondering what your school's role in consolidation is?
No problem! The following four items cover it all.
Remember: Your borrowers may be eligible even if your school only participates in the
FFEL Program.
- Consolidation loan counseling.
Counseling helps borrowers become aware of ALL their debt management options.
Schools are the biggest link in the communication "chain" with student loan
borrowers. You can help your students:
- determine if consolidation is right for them;
- perform an unbiased benefit comparison of the two consolidation loan programs
(Direct and FFEL); and/or
- provide easy access to information, resources and material that help them make
educated debt management decisions.
Examples:
Direct Consolidation web site,
online calculator, customer service (800-557-7392), contact information
for FFEL lenders National Student Loan
Data System (NSLDS) etc.
- Timely completion of verification certificates. When a borrower wants to
include a Perkins Loan in a consolidation, a verification certificate is mailed to your
school for completion. The verification certificate should be completed and returned to
the Loan Origination Center within 10 days. The borrower's loans cannot be
consolidated until the verification certificate is properly completed and returned.
(See "How Do I Certify Loan Verification
Certificates?")
- Timely application of Perkins Loan payoffs. All Perkins Loan payoffs
should be processed as quickly as possible. (See
"How does the Department Pay Off a
Borrower's Loan?")
- Timely resolution of overpayments and underpayments. If a Perkins Loan
account is underpaid or overpaid, follow the appropriate overpayment and underpayment
guidelines to ensure that the borrower's account is paid in full. (See
"How do I Request an Underpayment or
Return an Overpayment?"
or "What are the Tolerances for Under and
Over Payments?")
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