Education awards Raytheon $20 million loan system contract

Education awards Raytheon $20 million loan system contract

The Education Department has awarded a one-year, $20 million contract extension to Raytheon Co. to work on the data management system for the Federal Family Education Loan Program.

The system handles the collection of defaulted student loans using more than 1,700 Cobol programs, said Jack Banks, FFEL program manager for Raytheon.

Education signed Raytheon to the original $80 million FFEL contract in 1992. Under the contract, Raytheon performs student loan processing and debt collection for about 3.9 million accounts.

The company is developing a Web system for carrying out loan origination and disbursement, loan servicing and debt collection for release this year, Banks said.

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