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PublicationDate: 11/21/97 Summary: Update #8: Direct Consolidation Loan Author: ODAS - Office of the Deputy Assistant Secretary - SFA Consolidation Update Eight November 21, 1997 Dear Colleagues: I am pleased to provide current information about our progress in processing Direct Loan consolidation applications as we move towards our goal of re-opening the Loan Consolidation Center to new applications beginning next month. As you may know, the Student Loan Marketing Association (Sallie Mae) has announced a temporary suspension of new consolidation loan processing. The Department is consulting with other FFEL consolidation lenders concerning their current capacity and interest in increasing the number of consolidation applications. There remain other participants in the lending community who appear able and willing to offer consolidation options to interested borrowers. We believe that applicants for consolidation will continue to be assisted. Please see the data below for the current status of application at our Direct Loan Consolidation Center: Status: As of 11/12/97 As of 11/17/97 I. Applications Consolidated (completed) 92,722 94,260 Applications Withdrawn/Deactivated 39,384 39,821 Applications in Process 10,750 8,775 II. Breakdown of Current Applications*: Applications in Pre-Certification Review stage (incomplete application) 0 0 Applications in Certification of Loan Amounts Stage (awaiting loan holder information): 248 135 Applications in Promissory Note Review 57 43 Applications in Promissory Note Stage 6,606 4,781 *In addition to the current applications, there are 3,816 reactivated applications which were, at one time, deactivated and are included in item I above as Applications in Process. I look forward to providing future updates and sharing with you our plans for re-opening the Loan Consolidation Center to new applications. Respectfully submitted, Elizabeth M. Hicks Deputy Assistant Secretary Student Financial Assistance Programs |