Federal Student Aid Federal Family Education Loan (FFEL)

1. Federal Student Aid Federal Family Education Loan (FFEL) Data Flow Reengineering Focus Group Orlando, FL Sunday, October 29, 2006

2. Agenda • Introductions • Schedule • Objectives • Background • Current Improvement Ideas • Breakout Session • Closeout

3. Introductions Provide: • Name • Organization • Stage of the FFEL lifecycle you predominately work with

4. Schedule

5. Ground Rules • Feel Free to Express All Ideas • Silence cell phones, blackberries, etc. • Contractual implications/questions are off limits for discussion • Respect everyone’s opportunity to participate, provide input, and feedback

6. Background • Federal Student Aid's core strategic objectives include: • Integrate systems and provide new technology solutions • Improve program integrity • Improve products and services to provide better customer service • To achieve these strategic objectives, several key initiatives were introduced: • Borrower Services • ADvance • Integrated Partner Management (IPM) System • Information Framework

7. Background • Borrower Services Initiative: Started in FY 2004 to integrate Federal Student Aid's disparate back-office legacy student financial • ADvance Initiative: Started in FY 2005 to modernize Federal Student Aid's core front office business functions • IPM system Initiative: Started FY 2006, will integrate the eligibility, certification, demographic, financial, audit and default rate information received from schools, lenders, guaranty agencies and servicers

8. Background Information Framework (IF) Initiative • Started in FY 2003, the goal of the IF is to ensure that accurate and consistent data is exchanged among: • Federal Student Aid systems and employees • Customers • Partners • Will improve business operations and data management functions by centralizing data transformation services • The IF will replace existing functionality including the National Student Loan Data System (NSLDS)

9. Background Information Framework (IF) Initiative (continued) • Will facilitate the flow of business data across the enterprise

10. Background • Federal Student Aid data strategy efforts: • Documented as-is business processes • Developed Target State Vision (TSV) • Analyzed and documented gaps in current understanding • Conducted an internal analysis of as-is FFEL data flows • Developed internal ideas on ways to improvement the FFEL program • The purpose of today's focus group is to: • Generate ideas for improving the FFEL program's data flow • Document your feedback on current Federal Student Aid ideas

11. Current Improvement Ideas • Federal Student Aid's goal is to streamline the FFEL reporting process and make it easier for our partners to conduct business with us • Our current improvement goals are grouped into three areas: 1 2 3

12. Current Improvement Ideas • Based on our improvement goals, we have identified the following initial high-level improvement ideas • Data Integrity Standards • Common Identifier Methodologies • Link Data Collection to Business Requirements • Timeliness of Data Consistent with Business Requirements • Loan Holder Responsible for Reporting • Single Federal Student Aid Gateway • Reporting Standards • Consolidation Standards GOALS

13. Current Improvement Ideas Data Integrity Standards Common Identifier Methodologies Link Data Collection to Business Requirements Timeliness of Data Consistent with Business Requirements Loan Holder Responsible for Reporting Single Federal Student Aid Gateway Reporting Standards Consolidation Standards Data Integrity Standards • Develop and implement standard data definitions, consistent edits, and collection methods • Standard data definitions and processes • Adoption of standards

14. Current Improvement Ideas Data Integrity Standards Common Identifier Methodologies Link Data Collection to Business Requirements Timeliness of Data Consistent with Business Requirements Loan Holder Responsible for Reporting Single Federal Student Aid Gateway Reporting Standards Consolidation Standards Common Identifier Methodologies • Adopt unique and immutable identifiers • Specific identifiers include: • Enterprise Aid Identifier (Aid ID) • System ID (SID) • Routing ID (RID) • Transaction ID (TID)

15. Current Improvement Ideas Data Integrity Standards Common Identifier Methodologies Link Data Collection to Business Requirements Timeliness of Data Consistent with Business Requirements Loan Holder Responsible for Reporting Single Federal Student Aid Gateway Reporting Standards Consolidation Standards Common Identifier Methodologies (continued) • Enterprise Aid Identifier (Aid ID):A consistent methodology for defining and maintaining the uniqueness of an aid instance (i.e., a specific loan) • System ID (SID):A consistent methodology for defining a student, parent, or borrower • Routing ID (RID):A consistent methodology for defining partners such as schools, lenders, servicers, and guaranty agencies • Transaction ID (TID):Use Institutional Student Information Record (ISIR) transaction identifiers to ensure awards are based on documented eligibility

16. Current Improvement Ideas Data Integrity Standards Common Identifier Methodologies Link Data Collection to Business Requirements Timeliness of Data Consistent with Business Requirements Loan Holder Responsible for Reporting Single Federal Student Aid Gateway Reporting Standards Consolidation Standards Link Data Collection to Business Requirements • Collect the data needed to meet business requirements • Eliminate unnecessary and redundant data collection • Integrate data usage

17. Current Improvement Ideas Data Integrity Standards Common Identifier Methodologies Link Data Collection to Business Requirements Timeliness of Data Consistent with Business Requirements Loan Holder Responsible for Reporting Single Federal Student Aid Gateway Reporting Standards Consolidation Standards • Timeliness of data consistent with business requirements • Loan holder responsible for reporting • Single Federal Student Aid Gateway

18. Current Improvement Ideas Data Integrity Standards Common Identifier Methodologies Link Data Collection to Business Requirements Timeliness of Data Consistent with Business Requirements Loan Holder Responsible for Reporting Single Federal Student Aid Gateway Reporting Standards Consolidation Standards Reporting Standards Adopt industry standards across the FFEL program • Use and or modify existing standards as appropriate • Create new standards where needed Reporting areas that could benefit from standardization include: • Student/borrower and aid identification • Servicing activities • Claims • Consolidations (loan verification certificates) Automation tools • XML Registry and Repository • XML schemas • Digital imaging

19. Current Improvement Ideas Data Integrity Standards Common Identifier Methodologies Link Data Collection to Business Requirements Timeliness of Data Consistent with Business Requirements Loan Holder Responsible for Reporting Single Federal Student Aid Gateway Reporting Standards Consolidation Standards Consolidation Standards • Definitively link consolidation loans to their underlying loans through the use of standard loan identifiers (i.e., the Aid ID • Standardize loan verification and payoff processes • Use date certain payoff totals during consolidations

20. Breakout Session • We are now going to break out into four individual groups where we will lead facilitated discussions on the FFEL lifecycle

21. Breakout Session Topics A B C D Groups Example Lifecycle Activities

22. Closeout • Thank you for participating in our first FFEL Data Flow Reengineering Focus Group • Document feedback and new ideas discussed today • Incorporate feedback into FFEL data flow reengineering efforts • Continue community dialogue • Work in partnership to improve FFEL data flow