**Technical Update GA-2008-13**

**December 15, 2008**

**Reporting ED Loans Purchased to NSLDS**

*This information is intended for the person in your organization who is
responsible for working with NSLDS. If that person is not you, please
forward this update to the appropriate person.*

**Introduction**

The purpose of this Technical Update is to inform Guaranty Agencies
(GAs) of National Student

Loan Data System (NSLDS) reporting instructions for loans purchased by
(or "put" to) the United States Department of Education (ED). This
Technical Update is intended to expand upon the information presented in
Technical Update GA-2008-09.

**Reporting Loans Purchased by ED**

GA Technical Update 2008-09 announced preliminary instructions for GAs
to report loans that have been purchased by the US Department of
Education (ED). NSLDS is pleased to announce that the ED Servicer for
Federal Family Education Loan Program (FFELP) loans is now reporting on
a weekly schedule to NSLDS. The ED Servicer is reporting under GA Code
577 and is responsible for reporting FFELP loans purchased by ED under
the Loan Purchase Program and FFELP loans leaving the Conditional
Disability Discharge Tracking System (CDDTS) that are going into
repayment.

NSLDS previously provided instructions that GAs report loans that have
been purchased by ED in a similar methodology as the GA reports loans
being transferred to ED for assignment. The GA DPI requires the
following fields for loan transfers to be reported to NSLDS:

1.  The Date for Loan Status (062) should be populated with the date
    that the loan was sold to ED.

2.  The Code for Loan Status (063) should be populated with "AE".

3.  The Code for Servicer (088) should be populated with the GA Code
    assigned to the ED, which is "577".

The combination of reporting these three fields will update the loan on
NSLDS to display "577 US Department of Education" as the current GA for
the loan, "899577 US Department of Education/LPCP" as the current Lender
for the loan and "700577 US Department of Education" as the current
Lender Servicer for the loan. LPCP stands for Loan Purchase Commitment
Program.

To assist GAs with processing systems that are unable to follow this
procedure, NSLDS will accommodate the alternate option of reporting only
the Lender Code as transferred to ED's Lender Code. Then NSLDS will
automatically update the GA Code and Lender Servicer Code to reflect
that the loan is held by ED. To report the Lender Code transfer only,
the GA should report the following:

1.  The Date Loan Sold (141) should be populated with the date that the
    loan was sold to ED.

2.  The Code for Current Holder Lender (134) should be populated with
    the Lender Code assigned to ED, which is "899577".

Reporting these two fields will update the loan on NSLDS to display "577
US Department of Education" as the current GA for the loan, "899577 US
Department of Education/LPCP" as the current Lender for the loan and
"700577 US Department of Education" as the current Lender Servicer for
the loan.

ED has designated Lender Code 898577 as the Lender Code for which Short
Term Purchase Program (STPP) loans will be reported by the ED Servicer.
GAs will only be responsible for reporting loans as transferred to
Lender Code 899577. The ED Servicer will assign Lender Code 898577 to
the appropriate loans and report to NSLDS.

If a GA is reporting a transfer on a loan that GA577 has reported on,
the GA will receive Error Code 0737 -- Loan has been accepted by 577 in
Field 020. This Error Code will be excluded from the GA Benchmarks. If a
GA is reporting on a loan without providing transfer information and the
loan has already been reported by GA577 then the GA will receive Error
Code 0177 -- Invalid Code for Guaranty Agency in Field 020. If the GA
receives Error Code 0177 -- Invalid Code for Guaranty Agency and the
loan was purchased by ED then the GA should report the loan transfer to
GA577.

Additionally, NSLDS has removed the edit that prevented GAs from
reporting loans as transferred to GA577. Error Code 0733 -- Loan may not
be transferred to GA 577 from Code for Servicer (Filed Code 088) has
been removed.

See Attachment A and Attachment B for GA DPI change pages.

######## If you have any questions, please contact the NSLDS Customer Service Center at

*(800) 999-8219, or e-mail <NSLDS@>ed.gov.*