ED Suspends Recall of Defaulted Student Loan Accounts from ATE Holders

insideARM has learned that the five firms that had been notified that the accounts they’ve held under their 2015 Award Term Extensions would be recalled by July 3 received notice that the recall had been suspended.

Backing up a bit: In May four firms notified the Court of Federal Claims of their intention to protest ED's request to dismiss the case of FMS v. USA as moot. On May 25, 2018, Judge Thomas C. Wheeler granted the motion for dismissal and lifted the February 26, 2018 preliminary injunction that prevented ED from recalling in-repayment accounts.

Since that dismissal, ED did in fact send notice to the firms operating under 2015 Award Term Extentions (ATEs) notifying them that the government would be recalling their accounts on July 3. Those firms are FMS Investment Corp. (FMS), Account Control Technology, Inc. (ACT), GC Services Ltd. Partnership (GC), Continental Service Group, Inc. (ConServe), and Windham Professionals (Windham).

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