Transcript Document 7416750

Session C-22
The Student Loan Ombudsman
Network:
Options for Student Loan Issues
Grace Bartini
American Student Assistance
Lynel McFadden
Thaddeus Bartkowiak
U.S. Department of Education
The Ombudsman Role:
•
Is an impartial, confidential resource for
resolving Federal Student Aid complaints
informally
•
Works cooperatively with student
borrowers, institutions, lenders/servicer,
guaranty agencies and related parties
•
Does not force solutions, reverse
decisions, or mandate actions
•
Reports trends, activities and effectiveness
2
The Student Loan Ombudsman
Network In Action…
Student Loan
Ombudsman Caucus
Agency
Contact
FSA Ombudsman
Agency
Contact
Agency
Contact
Student Aid Industry: Trends, Issues, Training, Outreach, and Communication
2007-2008

Multi Directional Exchanges
3
Case Escalation Process
Borrower contacts their lender/servicer
Agency uses their escalation path in an attempt
to resolve dispute. Escalation may include
referral to supervisor, manager or guaranty
agency Ombudsman.
If issue is still not resolved, agency Ombudsman
will work with the Federal Student Aid
Ombudsman to resolve dispute.
4
How do Students/Borrowers
Benefit?
• Caucus network provides an in-agency
escalation process for problems
• If problems remain, students call Federal
Student Aid Ombudsman at 1-(877) 557-2575
• Federal Student Aid Ombudsman will work
with the student and the agency
• Federal Student Aid Ombudsman and Caucus
network will use the situation to inform
change
5
How do Schools Benefit?
• Additional resources to assist borrowers
during enrollment, or after they leave your
campus
• You, student, agency and Federal Student Aid
Ombudsman work together to research and
resolve an individual question
• Outcome on the individual situation informs
the whole. For example…
6
How Do We Use This Information?
Case Analysis and Reporting
Trends Identification and Reporting =
Collaborative Resolution = Change = Problem
Prevention
• Federal Student Aid Ombudsman groups
cases in 16 basic issue categories
• Cumulative and Individual Agency Reports
Are Produced Annually
• Student Loan Ombudsman Caucus can
concentrate on key issue categories, and
compare agency experiences to Federal
Student Aid Ombudsman data
7
For Example…..The Basic Categories
Help Define Where Difficulties Arise
Account Balance
Bankruptcy
Closed School
Collection Practices
Consolidation
Credit Reporting
Default
Deferment/Forbearance
FSA Assistance
Loan Cancellation
NSLDS
Repayment Plans/Amounts
Service Quality
Student Eligibility
Tax Refund/Offset
Wage Garnishment
8
Top 5 Research Issues
• Initially, the top 5 issues accounted for about
60% of the Federal Student Ombudsman
research cases.
• Now, the top 5 issues account for about 66%
of research cases.
Loan Cancellation/Discharge
Account Balance
Repayment Plans/Amounts
Default
Consolidation
9
Group Resolution
Case Samples
10
Benefits Predicted from
Ombudsman Network Activities
Multi-prong problem identification, resolution, and
change recommendation
Will help encourage and promote:
•
Resolution versus reaction
• Prevention instead of correction
• Systemic change
11
Resources for
Schools/Borrowers
ombudsman.ed.gov
college.gov
students.gov
federalstudentaid.ed.gov
mapping-your-future.org
studentloanborrowerassistance.org
12
Questions?
Thank You!
13
Contact Information
We appreciate your feedback and comments.
We can be reached at:
Grace Bartini, Ombudsman
American Student Assistance
Telephone: (800) 999-9080 ext. 4512
E-mail: [email protected]
Lynel McFadden, Ombudsman Specialist
Thaddeus Bartkowiak, Ombudsman Specialist
U.S. Department of Education, Federal Student Aid
Telephone: (202) 377-3800; Facsimile: (202) 275-0549
Web site: www.ombudsman.ed.gov
E-mail: [email protected]
E-mail: [email protected]
14