Loan repayment is the process by which a borrower fulfills his/her legal obligation to repay the lender for each FFELP loan he or she has obtained. It is a process between the lender or servicer and the borrower.
Servicing student loans begins when a loan is disbursed and continues until it is paid in full. Servicing involves a variety of activities including disbursement, verification of enrollment, conversion to repayment, applying deferments and forbearance, credit bureau reporting, due diligence and collection activities, and lender manifest reporting.
This section is designed to provide lenders and servicers with the information needed to comply with federal regulations and ISAC Rules, Part 2720 in relation to following loan servicing functions.