Student Loan Servicer Loses ‘Exceptional Performer’ Designation

FREDERICKSBURG, Va., — The “exceptional performer” designation, which is awarded by the Department of Education, has been withdrawn from CFS-SunTech Servicing, LLC, a wholly owned subsidiary of Collegiate Funding Services, Inc. (Nasdaq: CFSI).

Student loan servicers holding the EP designation are eligible to receive 100 percent federal insurance on defaulted student loans instead of the standard 98 percent. CFS-SunTech initially received the designation in May 2004. The designation was lost due to a minor systems print queue error that resulted in a number of borrowers not receiving final demand letters as required by the regulations. The error caused no harm to the federal government or the borrowers. The company can reapply for the exceptional performer designation on September 1, 2005.