Press Release

ED Announces New Clearinghouse Partnership

Dear Clearinghouse Participant:

Clearinghouse service to your institution and its student borrowers is about to improve. In his message to the annual NASFAA conference in July, Mr. Greg Woods, Chief Operating Officer of the Education Department announced,

"Here’s something else you’ll like. We’ve entered into formal negotiations with the Student Loan Clearinghouse to use their all-enrolled data to track transfer and returning students. We’re going to begin a test of this for our system during the fall semester."

As your institution is primarily making Federal Direct Student Loans, the impending utilization of the Clearinghouse by ED will produce new benefits for your student borrowers and staff as follows.

Eliminate Deferment Paperwork & Technical Defaults Because the Direct Loan Servicer will have electronic access to the Clearinghouse’s all-enrolled database, borrowers transferring in or returning to your school will receive earlier deferments soon after each term begins, eliminating technical defaults and deferment form paperwork for students and staff. (If the servicer continues to send paper forms during the transition, simply package them up and mail them to the Clearinghouse. We will take care of them for you, as we have done in the past.)

Increase Student Service & Reduce Complaints The Servicer will learn of withdrawals and other status changes on a more timely basis, allowing it to better maintain student borrowers in their correct enrollment statuses. As a result, unnecessary collection phone calls and letters will be eliminated, which will be more satisfying for your students and reduce the complaints your staff will need to handle.

We will work diligently with the Education Department to ensure that our new reporting relationship is implemented as soon as possible. I will keep you informed of our progress.

Daniel R. Boehmer
President

Press Inquiries:
Kathleen Dugan
Marketing Director
703-742-4208
dugan@studentclearinghouse.org