Student Repayment Experience with Direct Lending

By Tom Johnson posted 10-29-2009 08:40 AM


Hey All. 

We have been focusing primarily on how  DL is going to affect the Financial Aid Community here on campus.  However, I just received an interesting question today, to which I don't know the answer.  After students graduate, and enter repayment, what is the borrower's experience like?  Is it easy for students to consolidate loans?  What level/type of service do they receive when they have questions, or problems, or need some type of assistance?  For those schools that have been live with DL for some time, what has been your experience? 

1 comment



11-04-2009 09:00 AM

Student Repayment Experience with DL

We're new to DL and don't yet have students in repayment, but I can share some experiences as a student with Direct Loans that may be helpful.

My experience in repayment has been partly good and partly (really) bad.

Pros: -Quick response when I call DL Servicing.  Fairly knowledgable reps and no foreign outsourcing of call centers.

-Easy to make payments on the website and to apply for deferments and forbearances electronically

-Consolidation process was straightforward and problem-free.


When I was applying for Income Contingent Repayment a while back, the process was very difficult.  I sent the form and proof of income in one envelope.  I then got a letter from DL Servicing stating they received the form but not the proof of income (again, they were in the same envelope).  I sent it again and they still claimed not to have received it.  It took three times and numerous phone calls before they had record of receiving my documents.

Up until recently, they used my complete SSN on all mailed correspondence.  This has recently stopped, though.

 I hope this is useful to other schools.


Vikki Hampton

Assistant Director - Loan Programs

University of Connecticut