Consolidation Process Expedited
The Department of Education (ED) recently published a Dear Partner Letter, GEN-99-31, authorizing consolidating lenders to submit a Loan Verification Certificate (LVC) to a borrower's loan holder(s) without having to obtain the borrower's signature on each LVC. This authorization is subject to the following conditions:
1. The consolidation loan application must contain a certifying statement whereby the borrower has authorized-Any questions regarding the Dear Partner Letter should be directed to Don Watson, of ED's Program Development Division, at (202) 708-8242, or by e-mail at donald_watson@ed.gov. A copy of the Dear Partner Letter is available on ED's web site at http://ifap.ed.gov. If you are unable to access ED's web site and would like a hard copy, please contact Lynda Reid at (801) 321-7211. Any questions regarding this Bulletin should be directed to the UHEAA Policy and Training Department at (801) 321-7166 or by e-mail at cjudd@utahsbr.edu.. The consolidating lender to get necessary loan detail information only for the loans listed by the borrower on the application, and2. The consolidating lender must maintain the borrower's consolidation loan application with its original signature and be able to retrieve it if requested by the borrower, the current loan holder, ED, or any other authorized agency.. The borrower's loan holder(s) to release loan information only for those loans that the borrower had listed on the application.
3. The borrower's current loan holder may require a consolidating lender to provide a written statement certifying that the consolidating lender has complied with items 1 and 2 above.