Common Record: CommonLine (CRC) Implementation

1. Common Record: CommonLine (CRC) Implementation

2. Presenters • David Bailey • Manager, Loan Program Administration, Kentucky Higher Education Assistance Authority (KHEAA) • Jennifer M. Hulvey • Student Systems Lead Functional Analyst, Student Financial Services, University of Virginia • Rhonda Kilgore • Product Strategy Manager, Oracle Corporation • rhonda.kilgore@oracle.com

3. Description • This session will provide a brief overview of the CommonRecord: CommonLine (CRC) format; its benefits for college/university financial aid offices, lenders, servicers and other  organizations; and ensure that attendees have a basic understanding of the functionality within CRC. • A discussion with the NCHELP Electronic Standards Committee and organizations that are utilizing CRC in production will focus on successes in the implementation process, the importance of its implementation, and the challenges and lessons learned by analysts and developers during their implementation and testing of CRC.

4. Agenda • Overview • Benefits • Things to Consider • Implementation • Q&A

5. Common RecordBackground Information • COD was an existing process that we were asked to mimic. However, there are processes that are unique to FFELP • Consequently, COD was the base, but CRC was born out of the differences

6. Common RecordPhilosophy • Single standard Common Record • Support all aspects of higher-ed electronic communications • Pell, Direct Loans, FFELP, Transcripts, Campus-Based, Loan Counseling, etc. • Eliminate multiple flat file formats

7. Common RecordPhilosophy continued • Simplified process for submission of higher-ed related data • Maintenance and enhancements managed by the Postsecondary Electronic Standards Council (PESC)

8. The Common Record • Common Record: • Common Origination and Disbursement -COD (Direct Lending) • CommonLine (FFELP and Alternative Loans) • Transcripts (XML Transcript) • XML ISIR (future release) • Loan Counseling (in development)

9. Common RecordTerminology • Registry and Repository (Core Components Dictionary) • Standard structure • Naming conventions • Change control oversight • Schema: Defines structure and content for XML Documents

10. CommonLineOverview • What is CommonLine? • Standard protocol for the exchange of loan processing data for FFELP and Alternative loans among schools and service providers. • Standards are defined by NCHELP Electronic Standards Committee. • NCHELP website: http://www.nchelp.org/

11. Benefits • XML Technology • eXtensible Markup Language provides greater flexibility in record processing and is MUCH easier to read then fixed format files. • Fixed Format Sample: • JIMMYPAGEY123456789531STAIRWAYDRIVEALEXANDRIAVA223140000202123 • XML Sample • <SSN>123456789</SSN> • <BirthDate>1982-03-04</BirthDate> • <LastName>PAGE</LastName>

12. School Benefits • Borrower initiated processing • preferred flow at many institutions • Cut down on redundant data entry • Use of XML • human readability • Closer to a virtual office • Enables move to real time processing in the future • There are times this is needed on every campus!

13. CRC Benefitscontinued (example) • Fewer File Transmissions • Using CRC, Loan Requests and Changes are combined into one Request transmission. Previous CL versions required two separate file transmissions.

14. CRC Benefitscontinued • School Certification Requests • These are initiated when a borrower submits a loan request directly to the service provider. The service provider collects the data submitted by the borrower and transmits a certification request to school. • These requests are available in CL4 but much of the processing was manual in most ERP systems. With CRC, many of the steps have been automated. • Here’s an example:

15. CRC Benefitscontinued (example)

16. FAMS VendorsThings to Consider • With so many changes in legislation, CommonLine Version 4/5 will mandate drastic changes • Consider moving before it is necessary • Will allow flexibility without a lot of programming changes

17. SchoolsThings to Consider • … In Planning to Implement CRC • To be considered Common Record CommonLine compliant, the current version must be supported as well as CommonLine Release 4. This applies only to participants who previously adopted Release 4 and are now implementing CRC. • Talk with your loan service providers to understand their options to support CRC processing.

18. Things to Considerexample

19. Things to Considerexample

20. The University of Virginia • Founded in 1819 Thomas Jefferson • Enrollment, 2007-08 • 13,636 Undergraduate • 4,830 Graduate • 1,724 Law & Med • 644 On-Grounds CE • 20,834 Total • Students come from 48 states and 109 foreign countries.

21. The University of Virginia • Made up of 10 schools in Charlottesville, VA plus the College at Wise in SW Virginia • 51 bachelor's degrees in 47 fields • 83 master's degrees in 66 fields • 6 educational specialist degrees • Law, Med, Darden (Grad Business) • 59 doctoral degrees in 58 fields

22. 69% Virginia residents 46% Living in University housing 19.7 years = Avg UG student age 55 percent women; 45 percent men The University of Virginia

23. The University of Virginia • Combined FA and SF operations • 84.2% 4-Year graduation rate (entering class of 2003) • 47% UG receive aid • 07-08: 6,435 UG received aid from all sources totaling $88.6 million. • 43% or $38.5 million, comes from University funds, including $8.8 million from athletics grants-in-aid and $29.6 million from other University sources

24. The University of Virginia • Use ELM Resources for loan processing • Lender Request For Proposal • Average indebtedness of 2006-07 graduate who borrowed to finance education (excludes parents' loans) • $16,727 In-state • $21,320 Out-of-state • Percentage of undergraduate students in class of 2007 receiving loans (excludes parents' loans) • 33% In-state • 30% Out-of-state

25. Tuition and Fees2007-2008

26. Implementation • Going live for CRC on Oracle’s PeopleSoft Campus Solutions Release 9.0 • 6 careers – 5 aid eligible • Admissions – Live with prospects NOW • Financial Aid – Live with university app in November 2008 • Oracle’s PeopleSoft Campus Solutions fully live for 2009-2010

27. Why CRC? Borrower initiated processing

28. Loan Processing Flow

29. Borrower-InitiatedFlow • Student or parent links to lender web-site via jump page from UVA web-site • Student or parent applies for PLUS or alternative loan • Lender approves or denies loan • Student/Parent signs MPN • Lender sends approvals (with borrower request amount) AND denials to ELM (separate files) • UVA loads approved loans for school certification and references report on denied PLUS loans

30. Vendor Support • System is fully capable of processing Direct Loan and FFELP simultaneously … thank you to our friends in Oracle development! • Sallie Mae – ready now; has tested with PeopleSoft • ELM plans to have CRC available with its ELMNet4 release later this year. Current schedule: • Beta Testing - summer 2008 • CRC Live – 4th Quarter 2008

31. Providers Kentucky Higher Education Assistance Authority Pennsylvania Higher Education Assistance Authority/AES Sallie Mae including its serviced guarantors (Arkansas, Iowa, Maine, Michigan, NELA, Oklahoma, Rhode Island, USA Funds) ELM (in process) Wells Fargo (in process) F.A.M.S. Oracle’s PeopleSoft Sigma Systems Wolffpack Datatel (in process) Implemented

32. Q&As