Transcript Where Did My Loan Go?

Where Did My Loan Go?
Presenters:
Amy Kerwin
Great Lakes Higher Education Guaranty Corporation
Tim Cameron
National Council of Higher Education Loan Programs
California Lenders for Education
(CLFE)
CLFE Mission Statement
As a diverse coalition of industry participants, CLFE
shall define common goals and engage in activities
that improve and preserve the quality and integrity of
education loan products and services delivered to
students, parents and schools in California.
California Lenders for Education
(CLFE)
CLFE Values Statement
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DEDICATED to promoting access to Postsecondary Education for
California students, parents and schools
PARTNERS in the delivery and administration of education
loans.
Promote financial literacy, RESPONSIBLE borrowing and
effective debt management practices.
COMMITTED to honest and fair competition to ensure integrity
and enhance product and service quality.
ENCOURAGE and PARTICIPATE in the open exchange of ideas
and information to maximize the synergy of our efforts.
Support COMMUNITY outreach.
DEVELOP and articulate legislative and regulatory positions.
We’ll Cover
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Why “split servicing” is on the increase
How split servicing impacts students
Tools students can use to locate and track
their loans
How you can help your students locate and
track their student loans
What Causes Split Servicing?
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Student changed lender/guarantor to take
advantage of benefits
Student consolidated while in-school
Student transferred to a new school
School switched from FDLP to FFELP or vice
versa
Lender suspended student loan offerings
Legislative Changes
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Ensuring Continued Access to Student
Loans Act (ECASLA)
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Loan Participation Purchase Program
Loan Purchase Commitment Program
Term Asset-Backed Securities Loan Facility
(TALF)
Impact to Student
Communication overload!!
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Multiple servicers to single student
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Status change notifications, privacy notice, 1098-E
Delinquency letters, phone calls and emails
Single student to multiple servicers
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Changes in address or phone number
Payments
Requests for deferment and forbearance
Impact to Student
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Payment schedule complications
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Multiple payment due dates
Multiple payment methods
Potential loss of extended repayment options
Deferment and forbearance complications
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Inconsistent deferment documentation standards
Inconsistent forbearance period maximums
Coping with the Impact
Each of these inconveniences is easily
overcome so long as the student knows
who their lenders/servicers are and how to
get in touch with them.
So….WHERE is my loan?
Tools for Schools and Students
Meteor
 NSLDS
 Mapping Your Future
 Expanding Web Services – using school
issued credentials to access services
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The Meteor Project
In the beginning….
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Pre-Meteor Environment
Lenders, Guarantors, Servicers, Schools and
others all offer independent, proprietary web
services
 Access requires multiple logins
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FFELP Providers Solution
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Spring 2000: In response to Federal
Modernization Blueprint, NCHELP members
move to create a platform and program
neutral information network to provide
aggregated financial aid information.
In the beginning….
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Foundation Principles
 Open
Source
 Open Collaboration
 Freely Available
 Controlled Participation Network
 Not tied to a specific website, school product, or
organization
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Policy and Technology Decisions
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technical solutions were easy
 The policy decisions required collaboration and
teamwork…“co-opetition”
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similar to CommonLine and CR:C
The Result….
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Non-proprietary, open source software that
brings together data from distributed databases
across the higher education financing
community.
Anyone can participate!
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Lenders
Guarantors
Servicers
Schools
U.S. Department of Education
And others!
U.S. Department of Education
Approval
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FSA approval for use of real time data
Collaborative effort to bring about change to
the requirements for schools to solely rely on
NSLDS data
 Allows schools to resolve discrepancies by
using real time data that comes directly from
the loan holders databases
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Meteor Features
Access real-time, student-specific financial
aid information from multiple sources with
an intuitive user interface and navigation
 Currently provides information on FFELP
and alternative loans (capability exists to
include Direct Loans & Perkins Loans)
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Meteor Today
14 Independent points of access to the
Network
 20 Data providers
 Several customized implementations
 Provides single sign-on capabilities
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How Meteor Works
Meteor Participant Types
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Organizations that implement the Meteor
software
Access Providers (AP)
 Authentication Agents (AA)
 Data Providers (DP)
 Index Providers (IP)
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The Meteor Process
Users
Authentication
(by AP or AA)
Access
Provider
One
Student/Borrower
or
Financial Aid
Professional
or
Access Provider
Representative
or
Lender
Data Providers
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Index
Provider
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Data Available Through
the Meteor Network
NSLDS
NSLDS
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National database of Title IV recipients
Demographic and enrollment data
 Loan information
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 FFELP
 FDSLP
 Perkins
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Pell Grants
NSLDS
Supports ED in operational and research
functions for Title IV aid programs
 Goals
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Improve the quality and accessibility of
student aid data
 Reduce the burden of administering Title IV
aid
 Provide accurate tracking of funds
appropriated
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NSLDS – Where does the data
come from?
Guaranty Agencies
 Postsecondary Institutions
 Central Processing System
 Direct Loan Servicers
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Meteor and Mapping Your Future
Meteor Customization
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Integration of data into other online
services
Great tool for debt management and default
aversion
 One stop service – no need for the student to
collect their outstanding loan information in
separate sessions.
 Student sees THEIR actual outstanding loan
debt in the counseling session.
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Mapping Your Future’s
Online Student Loan Counseling
Integration of real-time data
 Advice on borrowing conservatively
 Debt/salary wizard
 Optional budget calculator
 School customization options
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Meteor and the National
Student Clearinghouse:
Campus Based Authentication
Campus Based Authentication
Schools that have entered into an electronic
services agreement with the Clearinghouse will
act as Authentication Agents.
 Students campus issued credentials will be
utilized to access Meteor and other
Clearinghouse services via Student Self-Service
Web site
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The National Student Clearinghouse
Student Self-Service
Meteor is integrated into the Clearinghouse’s
Student Self-Service Application
 For schools that wish to provide students with
Meteor access, Meteor loan detail is
incorporated into the LoanLocator display
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Online Award Letter Pilot
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Will serve as a debt management tool
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Borrowing history presented BEFORE a new award is
accepted
Ensures that borrower is aware of the potential
impact of increasing his aggregate loan(s)
amount
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Total current outstanding
New total outstanding with the addition of the new loan
Repayment scenarios based on aggregates
How can you help students?
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Add one or more of these tools to your website
Advise students to look into ways to simplify
repayment
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Create a budget to determine affordability
Consider all available repayment plans
Ask lenders to reset payment due dates
Take advantage of automatic payment options
Encourage students to complete a Student Loan
Tracking Sheet
How can you help students?
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Assure your students that successful repayment
can be accomplished by
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Keeping good records
Staying in touch with their loan holders
Maintaining a strategy for repayment
For More Information….
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Interactive Web Site Launched
www.MeteorNetwork.org
Audio presentation
 Interactive demonstration version of the
software
 Link to the Meteor project site
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Project Documentation
www.NCHELP.org/Meteor.htm
 Implementation Information
 Current Provider List
 User Guide and other
documentation
Contact Information
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Tim Cameron
NCHELP
Meteor Project Manager
[email protected]
Amy Kerwin
Great Lakes Higher Education
Guaranty Corporation
[email protected]