06/30/2005
New Disability System Enhancement for NSLDS

The addition of the Conditional Disability Discharge Tracking System (CDDTS) will enhance the process for determining student eligibility. This new system began reporting to NSLDS on April 8, 2005. Below is additional information about CDDTS:

• There are two disability loan statuses:

  • DS- Disability

  • DI- Defaulted, then Disabled

• A conditional discharge will be reported if the loans are in DI or DS status and there is an outstanding principal balance. NSLDS will display the conditional disability discharge warning icon with loans in this status.

  • Reminder: Beginning July 1, 2002, loan holders were required to assign loans to the Department when the borrower requested a disability discharge. These regulations also impact the borrower’s eligibility for subsequent loans.

• When CDDTS issues the final disability discharge, the tracking system will report a zero balance on the loan. The loan status (DS or DI) will not change. However, since the outstanding principal balance is zero, NSLDS will change the warning icon to “Permanent.”

• If CDDTS denies the borrower a final disability discharge, the loans will be reinstated. Reinstated defaulted loans will be serviced by the Department’s Debt Collection Service and reinstated non-defaulted loans will be serviced by CDDTS Repayment Servicing.

For more detailed information, please see NSLDS Newsletter Number 10 dated May 2005.