1 / 20

Federal Loan Servicing

Federal Loan Servicing. MSFAA Summer Conference 2010 Presenters: Jennifer Chandler Senior Account Executive Sallie Mae Roger Eldridge Vice President, Marketing-Midwest Great Lakes Educational Loan Services June 28, 2010. Agenda. Historical Perspective Federal Loan Servicing

gasha
Download Presentation

Federal Loan Servicing

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Federal Loan Servicing MSFAA Summer Conference 2010 Presenters: Jennifer Chandler Senior Account Executive Sallie Mae Roger Eldridge Vice President, Marketing-Midwest Great Lakes Educational Loan Services June 28, 2010

  2. Agenda • Historical Perspective • Federal Loan Servicing • Announcements and Resources • Borrower Advocacy

  3. Historical Prospective

  4. Elimination of FFELP • 1993: Direct Lending created to replace FFELP by 1998 • 2005: Higher Education Reconciliation Act (HERA) • 2007: College Cost Reduction and Access Act (CCRAA)

  5. Elimination of FFELP • 2008: Ensuring Continued Access to Student Loans Act (ECASLA) • 2009: Student Aid and Fiscal Responsibility Act (SAFRA) • 2010: Health Care and Education Reconciliation Act

  6. Federal Loan Servicing

  7. Federal Loan Servicing • Federally held FFELP Loans (PUT Loans) • Federal Direct Loans

  8. Becoming a Federal Loan Servicer • Great Lakes, Sallie Mae, NelNet and PHEAA selected as a federal loan servicers on June 17, 2009 • Servicers given final approval to service Federal put loans on August 28, 2009 • Servicers must be ready to begin Direct Loan Servicing by August 31, 2010

  9. Defining Loan Servicing • Helping borrowers manage their loans • Explain tools and options available • Repayment counseling • Perform due diligence activities • Assist schools with default prevention efforts • How services are provided • Telephone center support • Online resources

  10. Defining Loan Servicing • Difference between federally held FFELP and Direct Loans • Terms & conditions • Reporting requirements • Origination point

  11. Servicing Guidelines • Approach • Servicers must comply with all legislative and regulatory requirements • unique best in business services. • System / Process Modifications • Allocation Process • Borrower Centric Approach • Customer Satisfaction Surveys

  12. Customer Surveys • Customer Services Survey Results • 1st Quarter results released March 10, 2010 • 2nd Quarter results complied, not yet released • Explanation of Results • Customer Service Performance Scores • Allocation Metric Calculation

  13. School Support • New reports • New guides • Training events • The New School Initiative

  14. Commonly Asked Questions • How will loans be allocated between the servicers? • Will schools or students be able to choose which servicer they work with? • How will split servicing situations be handled? • How will customer satisfaction be measured? • Additional questions…

  15. Announcements and Resources

  16. DOE Electronic Announcements • Distributed via IFAP • August 28, 2009: Transition to Additional Servicer Support • September 16, 2009: Customer Service and NSLDS Information for Federally Held Student Loans • March 26, 2010: Q&A About Servicing federally Held Loans

  17. Additional Resources • Additional resources / websites • NASFAA, MASFAA, & MSFAA • NASFAA Conference • July 18-21, Denver Colorado • 2010 FSA Conference • November 30 - December 3, Orlando, Florida • Extensive Direct Loan transition training and support developed

  18. Borrower Advocacy

  19. Financial aid guidance for students and families Training for college and university financial aid officers Programs and resources to increase college access Support for persistence and completion programs Relevant entrance and exit student loan counseling for borrowers Financial literacy education for all students Counseling to help borrowers select the right repayment options Counselors to help borrowers avoid delinquency and default Support to help defaulted borrowers rehabilitate their loans Borrower Advocacy

  20. Thank you! Jennifer Chandler Jennifer.chandler@salliemae.com (765) 473-5761 Roger Eldridge reldridge@glhec.org (608) 770-5954

More Related