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Where Did My Loan Go?

Where Did My Loan Go?. Presenters: Amy Kerwin Great Lakes Higher Education Guaranty Corporation Tim Cameron National Council of Higher Education Loan Programs. California Lenders for Education (CLFE). CLFE Mission Statement

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Where Did My Loan Go?

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  1. Where Did My Loan Go? Presenters: Amy Kerwin Great Lakes Higher Education Guaranty Corporation Tim Cameron National Council of Higher Education Loan Programs

  2. California Lenders for Education (CLFE) CLFE Mission Statement As a diverse coalition of industry participants, CLFE shall define common goals and engage in activities that improve and preserve the quality and integrity of education loan products and services delivered to students, parents and schools in California.

  3. California Lenders for Education (CLFE) CLFE Values Statement • DEDICATED to promoting access to Postsecondary Education for California students, parents and schools  • PARTNERS in the delivery and administration of education loans.  • Promote financial literacy, RESPONSIBLE borrowing and effective debt management practices. • COMMITTED to honest and fair competition to ensure integrity and enhance product and service quality.  • ENCOURAGE and PARTICIPATE in the open exchange of ideas and information to maximize the synergy of our efforts.  • Support COMMUNITY outreach.  • DEVELOP and articulate legislative and regulatory positions.

  4. We’ll Cover • Why “split servicing” is on the increase • How split servicing impacts students • Tools students can use to locate and track their loans • How you can help your students locate and track their student loans

  5. What Causes Split Servicing? • Student changed lender/guarantor to take advantage of benefits • Student consolidated while in-school • Student transferred to a new school • School switched from FDLP to FFELP or vice versa • Lender suspended student loan offerings

  6. Legislative Changes • Ensuring Continued Access to Student Loans Act (ECASLA) • Loan Participation Purchase Program • Loan Purchase Commitment Program • Term Asset-Backed Securities Loan Facility (TALF)

  7. Impact to Student Communication overload!! • Multiple servicers to single student • Status change notifications, privacy notice, 1098-E • Delinquency letters, phone calls and emails • Single student to multiple servicers • Changes in address or phone number • Payments • Requests for deferment and forbearance

  8. Impact to Student • Payment schedule complications • Multiple payment due dates • Multiple payment methods • Potential loss of extended repayment options • Deferment and forbearance complications • Inconsistent deferment documentation standards • Inconsistent forbearance period maximums

  9. Coping with the Impact Each of these inconveniences is easily overcome so long as the student knows who their lenders/servicers are and how to get in touch with them.

  10. So….WHERE is my loan?

  11. Tools for Schools and Students • Meteor • NSLDS • Mapping Your Future • Expanding Web Services – using school issued credentials to access services

  12. The Meteor Project

  13. In the beginning…. Pre-Meteor Environment Lenders, Guarantors, Servicers, Schools and others all offer independent, proprietary web services Access requires multiple logins FFELP Providers Solution Spring 2000: In response to Federal Modernization Blueprint, NCHELP members move to create a platform and program neutral information network to provide aggregated financial aid information.

  14. In the beginning…. Foundation Principles Open Source Open Collaboration Freely Available Controlled Participation Network Not tied to a specific website, school product, or organization Policy and Technology Decisions The technical solutions were easy The policy decisions required collaboration and teamwork…“co-opetition” similar to CommonLine and CR:C

  15. The Result…. Non-proprietary, open source software that brings together data from distributed databases across the higher education financing community. Anyone can participate! Lenders Guarantors Servicers Schools U.S. Department of Education And others!

  16. U.S. Department of Education Approval • FSA approval for use of real time data • Collaborative effort to bring about change to the requirements for schools to solely rely on NSLDS data • Allows schools to resolve discrepancies by using real time data that comes directly from the loan holders databases

  17. Meteor Features Access real-time, student-specific financial aid information from multiple sources with an intuitive user interface and navigation Currentlyprovides information on FFELP and alternative loans (capability exists to include Direct Loans & Perkins Loans)

  18. Meteor Today 14 Independent points of access to the Network 20 Data providers Several customized implementations Provides single sign-on capabilities

  19. How Meteor Works

  20. Meteor Participant Types Organizations that implement the Meteor software Access Providers (AP) Authentication Agents (AA) Data Providers (DP) Index Providers (IP)

  21. The Meteor Process Authentication (by AP or AA) Access Provider Data Providers Users One Student/Borrower or Financial Aid Professional orAccess Provider RepresentativeorLender Two Index Provider Three

  22. Data Available Through the Meteor Network

  23. NSLDS

  24. NSLDS • National database of Title IV recipients • Demographic and enrollment data • Loan information • FFELP • FDSLP • Perkins • Pell Grants

  25. NSLDS • Supports ED in operational and research functions for Title IV aid programs • Goals • Improve the quality and accessibility of student aid data • Reduce the burden of administering Title IV aid • Provide accurate tracking of funds appropriated

  26. NSLDS – Where does the data come from? • Guaranty Agencies • Postsecondary Institutions • Central Processing System • Direct Loan Servicers

  27. Meteor and Mapping Your Future

  28. Meteor Customization Integration of data into other online services Great tool for debt management and default aversion One stop service – no need for the student to collect their outstanding loan information in separate sessions. Student sees THEIR actual outstanding loan debt in the counseling session.

  29. Mapping Your Future’s Online Student Loan Counseling Integration of real-time data Advice on borrowing conservatively Debt/salary wizard Optional budget calculator School customization options

  30. Meteor and the National Student Clearinghouse: Campus Based Authentication

  31. Campus Based Authentication Schools that have entered into an electronic services agreement with the Clearinghouse will act as Authentication Agents. Students campus issued credentials will be utilized to access Meteor and other Clearinghouse services via Student Self-Service Web site

  32. The National Student Clearinghouse Student Self-Service Meteor is integrated into the Clearinghouse’s Student Self-Service Application For schools that wish to provide students with Meteor access, Meteor loan detail is incorporated into the LoanLocator display

  33. Online Award Letter Pilot Will serve as a debt management tool Borrowing history presented BEFORE a new award is accepted Ensures that borrower is aware of the potential impact of increasing his aggregate loan(s) amount Total current outstanding New total outstanding with the addition of the new loan Repayment scenarios based on aggregates

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