USA Funds®’ guarantor-servicer, Sallie Mae, provides lenders with the following processing options for submitting information and payment for the Federal Default Fee.
Fee Express | Lender-Initiated CAM | Guarantor-Initiated CAM | Standard Fee Billing
Fee Express
Using a proprietary format, this process allows a lender (or servicer on behalf of a lender) to submit Federal Default Fee data electronically to USA Funds’ guarantor-servicer, Sallie Mae, via cartridge or File Transfer Protocol. Lenders and servicers that select this option will be provided with the Fee Express file specifications. (This is a PDF file.) Lenders and servicers that use Fee Express receive only the past-due section of the paper fee-billing statement. This process eliminates a manual monthly reconciliation of current fees due. Funds will be remitted to the lender monthly for any loans that are canceled after the fee is paid.
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Lender-Initiated CAM
Using the FFELP-community standard Common Account Maintenance format, this process allows a lender (or servicer on behalf of a lender) to submit Federal Default Fee data electronically (Record Types 21 and 95) to Sallie Mae based on actual disbursements made in the previous month. The lender or servicer submits, via File Transfer Protocol to Sallie Mae’s Federal Default Fee Operations unit, data based on actual disbursements made in the previous month, as well as payment of the Federal Default Fee based on these disbursements. CAM file specificationsare available from the National Council of Higher Education Loan Programs Web site. Lenders and servicers that use Lender-Initiated CAM receive only the past-due volume of fee-billing data electronically (Record Types 21, 22 and 95) in a Common Account Maintenance format. Funds will be remitted to the lender monthly for any loans that are cancelled after the fee is paid.
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Guarantor-Initiated CAM
Using the FFELP-community standard Common Account Maintenance format, this process allows a guarantor (or servicer on behalf of a guarantor) to submit Federal Default Fee data electronically (Record Types 21, 22 and 95) to a lender or servicer based on disbursements made in the previous month or any prior month. In response, the lender or servicer submits, via File Transfer Protocol to Sallie Mae’s Federal Default Fee Operations unit, data to pay the fees the guarantor has noted as due, or submit status changes to notify the guarantor of reasons why the lender or servicer is not paying the fee. CAM file specificationsare available from the National Council of Higher Education Loan Programs Web site. Funds will be remitted to the lender monthly for any loans that are cancelled after the fee is paid.
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Standard Fee Billing
Under this process, lenders or servicers receive monthly paper fee statements that are generated based on anticipated disbursement dates. After receiving the statement, the lender or servicer submits payment and also reports any status changes, such as new disbursement dates. On behalf of USA Funds, Sallie Mae’s Federal Default Fee Operations unit reconciles the billing statement with the payment received and posts the fees paid. Refunds or credits are created and reported on the next statement for any loans cancelled after the fee is paid.
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