Consolidation and Rehabilitation
ACSI understands the benefits of the consolidation and rehabilitation programs and has the knowledge and expertise to adhere to these program requirements while assisting student borrowers’ qualifying efforts.
Consolidation allows student borrowers to refinance a singly loan or combine multiple federal loans into one larger loan. Borrowers also benefit from extended repayment options. Rehabilitation allows student borrowers to resolve their default status one time and restore their credit and eligibility for financial aid. Both programs have their benefits but are unique to student borrowers’ loan types as well as their individual situations and needs. They also contain restrictions on how various loan types can be consolidated or rehabilitated and require student borrowers to meet specific criteria to qualify for each program. ACSI’s Higher Education Recovery Agents are trained to assist student borrowers in exploring and qualifying for these program options through:
- Assessment - ACSI Recovery Agents begin to help student borrowers by assessing their situations, including financial; loans types, e.g., Federal, Perkins, or Health Professions loans; and higher education status, before recommending the options that are in their best interests. Because our Higher Education Recovery Agents have such extensive knowledge and experience working with student borrowers who have defaulted federal loans, ACSI is consistently able to match student borrowers with the right program with which they are most likely to maintain good repayment habits, including assisting student borrowers who may qualify for lower consolidated repayment options through income-derived repayment plans as described here.
- Program Qualification - ACSI Recovery Agents explain to student borrowers the consolidation and rehabilitation program requirements they must meet to complete the qualification process, including the minimum monthly payments they must make and the number of consecutive and timely payments they must make. In addition, they will disclose to student borrowers any applicable collection costs and interest that will be applied to their consolidated or rehabilitated loan, the possible changes to their payment amounts once their loans have been consolidated or rehabilitated, and potential ramifications if they fail to meet any of the requirements during the consecutive payment period. ACSI’s Recovery Agents help student borrowers with whom they are working through consolidation or rehabilitation qualification for the duration of the process, including assisting then with completing and submitting the proper paperwork to the appropriate lender, servicer, or higher education institution.
- Payment Tracking and Follow-up Calls - Because the consolidation and rehabilitation programs require student borrowers to make consecutive, timely payments for a specific duration, it is important that collection agencies track these payments to verify they are made as agreed to, including amounts due and date due. ACSI has a separate module through which we track and validate consolidation and rehabilitation payments. If payments are missed, our collection system notifies the Recovery Agents assigned to those student borrower accounts to follow up with them to let them know the payment was due and to reiterate the potential ramifications of not complying with the required qualification payments.
- Quality Assurance - Compliance with federal and state regulatory mandates is of the utmost importance not only to ACSI but also to our clients, their consumers, and the regulatory bodies that monitor the collection industry. ACSI has instituted a robust internal audit program as the firewall between ACSI’s operations and potential non-compliance actions. Our audit staff also audits for compliance with client contract and service requirements and ACSI’s internal work standards. ACSI maintains a dedicated Quality Assurance and Audit Department, which is managed by the Director of Corporate Compliance and supported by experienced Quality Assurance Auditors (QAAs), all of whom have received extensive regulatory training before being assigned to audit accounts. ACSI has carefully documented all of the processes and procedures we follow to conduct internal audits. These detailed documents set the stringent audit standards to which ACSI quality control auditors, service standards, and regulatory compliance actions must adhere.