|
Loan status information is critical to maintaining current and accurate data within the National Student Loan Data System (NSLDS). In turn, NSLDS data is used for determining eligibility for student aid as well as cohort default rates for both lenders and colleges.
To assist you in determining whether all loans in your portfolio have been reported to ISAC, twice a year we provide you with an NSLDS Lender Manifest Report of Unreported Loans. This report identifies loans which need to be reconciled with our records.
As a result of a program review conducted at ISAC by U.S. Department of Education (ED) staff, ISAC has been asked to become more aggressive in ensuring that lenders and servicers are reporting the status of all outstanding loans in their portfolios. Because we must now be more diligent in monitoring the loan status reporting process, our future compliance reviews will indicate that lenders and servicers are expected to properly update all of the records on the Report of Unreported Loans. Failure to do so is likely to result in a review finding.
The Unreported Loan report identifies the following:
- open loans that have not been updated via lender manifest. This lack of update could be due to the inability to match incoming loan information to information on ISAC’s database, or due to errors causing the record to reject; and
- any loan with an open loan status that does not reflect an update within the past 180 days.
As part of this Unreported Loan process, ISAC has identified loans that have been in repayment for more than 12 years and have not been updated by lender manifest for more than 4 years. These loans qualify for the guarantor status of “PM” – presumed paid. Loans that meet the “PM” criteria are updated with that code and reported to NSLDS. If a lender or servicer opens a loan that is currently in the “PM” status, successful reporting of the correct status will allow ISAC to update its database and forward the revised status to NSLDS.
When receiving an Unreported Loan Report, prior to the next submission, it is important that you:
- review each loan and determine the reason the loan has not been reported/updated;
- make the necessary modifications/corrections for the loan to be reported; and
- update the lender/servicer system with the Unique Loan ID provided on the report for each record, if it is not already being used. This will facilitate the matching process when the loan is reported.
|
