the shifting sands of tpd n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
The Shifting Sands of TPD PowerPoint Presentation
Download Presentation
The Shifting Sands of TPD

Loading in 2 Seconds...

play fullscreen
1 / 22

The Shifting Sands of TPD - PowerPoint PPT Presentation


  • 77 Views
  • Uploaded on

The Shifting Sands of TPD. Carl Casey- Nelnet Ron Stroud-TG Barbara Wilhelm-USA Funds. Current Process. CDDT transition to Nelnet Responsibilities Borrower Loan Holders FSA TPD Servicing. TPD Servicing Review . Receipt and Review FSA Review Reporting Communications.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'The Shifting Sands of TPD' - alesia


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
the shifting sands of tpd

The Shifting Sands of TPD

Carl Casey-Nelnet

Ron Stroud-TG

Barbara Wilhelm-USA Funds

current process
Current Process
  • CDDT transition to Nelnet
  • Responsibilities
    • Borrower
    • Loan Holders
    • FSA
    • TPD Servicing
tpd servicing review
TPD Servicing Review

Receipt and Review

FSA Review

Reporting

Communications

processing time improvements
Processing Time Improvements

The Average Days to Process represents the time it took to get the borrower into Monitoring from the receipt date:

new process
New Process
  • All discharge applications to be submitted to the Department.
  • Department will notify all loan holders to suspend collection activity.
  • Department will notify all loan holders to submit claims and/or assign loans.
all loan holders
All Loan Holders
  • Transition/Trigger
    • Any discharge application received on or after 7/1/2013 must be forwarded to the Department.
  • Instructions to borrower
    • A borrower contacting any FFEL entity about a TPD situation on or after 7/1/2013 must be referred to the Department.
all loan holders1
All Loan Holders
  • Suspension periods
    • Collection activity suspended for up to 120 days upon notification of intent to submit discharge application.
    • Collection activity suspended for indeterminate period of time while the Department reviews discharge application.
all loan holders2
All Loan Holders
  • Interest capitalization
    • If no TPD application received within 120 days, holder may capitalize interest for that period, unless holder is a guarantor.
    • If TPD application is denied by the Department, holder may capitalize interest for the entire review period, unless holder is a guarantor.
all loan holders3
All Loan Holders
  • Payment refunds
    • Approval notification from the Department will include either the date of the physician’s certification, Department’s receipt date of SSA notice of award for SSI or SSDI, or date unemployable due to a service-connected disability.
    • Any payment received after that date must be refunded, by the holder, to the borrower.
all loan holders4
All Loan Holders
  • Denial of discharge application
    • Department will notify holder of reason for denial.
    • Borrower must be informed, by the holder, of date payments will resume.
    • Loan returns to the appropriate status as if discharge application had not been submitted.
servicers
Servicers
  • Notification of suspension
    • Servicers are not required to notify guarantors at the start of the 120-day suspension but are strongly encouraged to do so if an open DAAR exists.
    • Servicers must notify applicable guarantor(s) at the start of the indeterminate-length suspension period.
servicers1
Servicers
  • Claim submittal
    • Claim must be submitted to the guarantor within 60 days of receipt of the Department’s notification of discharge approval.
    • Amount claimed reflects principal and interest balance as though any refundable borrower payments had not been posted; refund is issued to borrower after claim payment.
    • Department notification of approval is required claim documentation.
guarantors
Guarantors
  • Claim review
    • Claim packet must not include any discharge application received on or after 7/1/2013.
    • If claim meets requirements of 682.402(g)(1) and 682.406, guarantor must pay the claim.
guarantors1
Guarantors
  • Claim payment deadline
    • Claim payment must be issued within 45 days of claim receipt.
guarantors2
Guarantors
  • Assignment process
    • Claim-purchased loans must be assigned to the Department within 45 days of receipt of federal reinsurance payment.
    • Guarantor-held loans must be assigned within 45 days of receipt of the Department’s notice of discharge approval.
    • No payment histories or lump sum payment refund totals with assignment; borrower payment refunds are issued by loan holders prior to assignment.
discharge application
Discharge Application
  • Community Recommendations
    • Borrower Representative clarified.
    • Date of Birth to facilitate NSLDS research.
    • Co-maker information to facilitate partial discharge requests.
tpd servicing planning
TPD Servicing Planning

Processing changes

Communications

Technology

Borrower experience

slide18
FAQs

Q. If a borrower’s obligation to repay a loan is reinstated during the post-discharge monitoring period, is the borrower responsible for interest accrued between the date of discharge and reinstatement?

A. No. If a borrower’s obligation to repay a loan is reinstated, the borrower is not required to pay interest accrued between the date that the loan was discharged and the date the borrower’s obligation to repay the loan was reinstated.

slide19
FAQs

Q. May a borrower who is in a three year post-discharge monitoring period due to TPD receive a new Title IV loan or TEACH grant?

A. Yes. However, the borrower must sign a statement acknowledging that collection activity will resume on any loan that is in a post-discharge monitoring period, and a TEACH grant recipient must acknowledge that he or she is once again subject to the service obligation terms of the TEACH grant. Additionally, the borrower must obtain a physician’s statement certifying that the borrower may now engage in “substantial gainful activity”, and must sign a statement acknowledging that any new loan the borrower receives may not be discharged due to the same, or any, disability existing at the time the new loan is made, unless the disabling condition substantially deteriorates to the extent that the definition of TPD is met.

slide20
FAQs

Q. May a borrower who has received a final discharge (i.e. after the conclusion of the post-discharge monitoring period) based on a determination of total and permanent disability receive a new Title IV loan or TEACH grant?

A. Yes. However, the borrower must obtain a physician’s statement certifying that the borrower may now engage in “substantial gainful activity”, and must sign a statement acknowledging that any new loan the borrower receives may not be discharged due to the same, or any, disability existing at the time the new loan is made, unless the disabling condition substantially deteriorates to the extent that the definition of TPD is met.

slide21
FAQs

Q. May an administrative forbearance be granted for a period of delinquency prior to an authorized period of suspension?

A. No, not at this time. However, a regulatory change to allow this is currently pending in Package 2, expected in 2014. Stay tuned!