I came across this listing in the Federal Business Opportunities Website which was originally posted on April 29th and updated on May 6th. It requests information from non-profits interested in servicing federal student loans as part of the set-aside in the Student Aid and Fiscal Responsibility Act. Here is a link to the document.
Here are the details of their notice which lists eligibility criteria to qualify for this servicing opportunity as well as the timing of a solicitation that will likely follow later in 2010:
For purposes of this notice, the Government is requesting only documentation (not to exceed 25 pages in total) which could demonstrate your organization's eligibility against the criteria identified in HCERA. Please Note: An organization’s ability to meet the qualification criteria will be requested through a follow-on request, if needed. The eligibility criteria identified in HCERA are as follows:
“The term ‘eligible not-for-profit servicer’ means an entity—
(A) that is not owned or controlled in whole or in part by—
(i) a for-profit entity; or
(ii) a nonprofit entity having its principal place of business in another State; and
(B) that—
(i) as of July 1, 2009—
(I) meets the definition of an eligible not-for-profit holder under section 435(p), except that such term does not include eligible lenders described in paragraph (1)(D) of such section; and
(II) was performing, or had entered into a contract with a third party servicer (as such term is defined in section 481(c)) who was performing, student loan servicing functions for loans made under part B of this title;
(ii) notwithstanding clause (i), as of July 1, 2009—
(I) is the sole beneficial owner of a loan for which the special allowance rate is calculated under section 438(b)(2)(I)(vi)(II) because the loan is held by an eligible lender trustee that is an eligible not-for-profit holder as defined under section 435(p)(1)(D); and
(II) was performing, or had entered into a contract with a third party servicer (as such term is defined in section 481(c)) who was performing, student loan servicing functions for loans made under part B of this title; or
(iii) is an affiliated entity of an eligible not-for profit servicer described in clause (i) or (ii) that—
(I) directly employs, or will directly employ (on or before the date the entity begins servicing loans under a contract awarded by the Secretary pursuant to subsection (a)(3)(A)), the majority of individuals who perform borrower-specific student loan servicing functions; and
(II) as of July 1, 2009, was performing, or had entered into a contract with a third party servicer (as such term is defined in section 481(c)) who was performing, student loan servicing functions for loans made under part B of this title.
(2) AFFILIATED ENTITY.—For the purposes of paragraph (1), the term ‘affiliated entity’—
(A) means an entity contracted to perform services for an eligible not-for-profit servicer that—
(i) is a nonprofit entity or is wholly owned by a nonprofit entity; and
(ii) is not owned or controlled, in whole or in part, by—
(I) a for-profit entity; or
(II) an entity having its principal place of business in another State; and
(B) may include an affiliated entity that is established by an eligible not-for-profit servicer after the date of enactment of the SAFRA Act, if such affiliated entity is otherwise described in paragraph (1)(B)(iii)(I) and subparagraph (A) of this paragraph.”
The Department of Education (ED), Office of Federal Student Aid (FSA), contemplates issuing a solicitation later in 2010 to establish loan servicing contracts with eligible and qualified not-for-profit loan servicers. At this point, the Government expects that any solicitation issued will remain open continuously through March 1, 2014, with quarterly proposal submission due dates identified. Any solicitation issued will include criteria and qualification requirements.
