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NASSGAP Fall Conference and 40 th Anniversary Celebration

Learn about the Office of the Ombudsman, an impartial and confidential resource for borrowers to resolve concerns with Federal Student Aid. Explore the ombudsman case process and top issues faced by borrowers.

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NASSGAP Fall Conference and 40 th Anniversary Celebration

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  1. NASSGAP Fall Conference and40th Anniversary Celebration Burlington, Vermont October 22 – 25, 2006

  2. Federal Student Aid Ombudsman Debra Wiley Ombudsman

  3. What is Federal Student Aid’s Office of the Ombudsman? Authorized in 1998 as part of the Higher Education Amendments Appointed by Federal Student Aid’s Chief Operating Officer, in consultation with the Secretary Available to borrowers, potential borrowers, institutions of higher education, lenders, guaranty agencies, loan servicers, other participants in the Federal Student Aid programs Compiles and analyzes data on Federal Student Aid complaints and makes appropriate recommendations

  4. What is an Ombudsman? Offers an impartial, confidential resource after other avenues exhausted to resolve borrower concerns Seeks to work cooperatively with partners to reach informal resolution of complaints Does not force solutions, reverse decisions, or mandate actions Reports annually to Chief Operating Officer on activities and effectiveness

  5. The Opportunity to… • Open communication channels • Offer other perspectives • Organize details • Outline options • Overtly collaborate • Optimize outcomes

  6. Identifying Options Initial Intake Secondary Intake Closure Analysis Ombudsman Case Process • Create a general agreement that concludes the issue and precludes the • customer having problems with the same loan again • Verify the customer’s perspective, check • other available records Develop solutions within law, regulation Describe the problem • Outline and document • the facts

  7. Customer Facts…Some Top Issues Top Three Issues for FY2006 • Consolidation • Account Balance • Loan Cancellation Discharge • The average customer has 8 loans. • The oldest loan dates from 1967 • Highest balance is >$200,000 (includes HEAL) • “Research Problem” have increased more than 40%, from 3,329 in FY2001 to 4,663 in FY2006.

  8. What Problem Underlies Most Cases? • Mis-communication?? • Failure to listen • One-sided communication • Communication gaps • Not knowing the question to ask • Not answering the question asked

  9. What do you see?

  10. Case #1: • Borrower wants an amortization schedule because she’s on a graduated repayment plan and her payment is jumping from $148 to $542 per month. She keeps asking for a schedule and lender keeps telling her they don’t do them because too many factors may cause inaccuracies. Besides that, it’s not company policy to provide them. • Case #2: • Customer applied for loan discharge under provision for Total and Permanent disability. Lender wants complete medical records and doctors says it is too large a file to copy without being reimbursed. Customer has only worked 9 months since 1977. Case Studies

  11. Case #3: • Caller has been trying to get her Perkins Loan cancelled because she is a social worker with child services, and also works in a low income community. She sent her cancellation request to her former school. The school keeps telling her that the papers have been taken care of, but after two years she has still not had her loans forgiven. • Case #4: • Customer says she got forbearance and was in the process of consolidating her loans. Lender then ignored forbearance and proceeded to default the loans. Consolidation loan has been funded but she believes the default is in error. Case Studies (continued)

  12. We appreciate your feedback and comments. Debra Wiley Ombudsman (202) 377-3801 (202) 275-0549 debra.wiley@ed.gov

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