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

Where Did My Loan Go?

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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 - PowerPoint PPT Presentation

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Page 1: Where Did My Loan Go?

Where Did My Loan Go?Where Did My Loan Go?

Presenters:Presenters:

Amy KerwinAmy KerwinGreat Lakes Higher Education Guaranty CorporationGreat Lakes Higher Education Guaranty Corporation

Tim CameronTim CameronNational Council of Higher Education Loan ProgramsNational Council of Higher Education Loan Programs

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California Lenders for California Lenders for Education (CLFE)Education (CLFE)

CLFE Mission StatementCLFE Mission Statement

As a diverse coalition of industry participants, CLFE As a diverse coalition of industry participants, CLFE shall define common goals and engage in activities shall define common goals and engage in activities that improve and preserve the quality and integrity that improve and preserve the quality and integrity

of education loan products and services delivered to of education loan products and services delivered to students, parents and schools in California. students, parents and schools in California.

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California Lenders for California Lenders for Education (CLFE)Education (CLFE)

CLFE Values StatementCLFE Values Statement

DEDICATEDDEDICATED to promoting access to Postsecondary Education for to promoting access to Postsecondary Education for California students, parents and schools  California students, parents and schools 

PARTNERSPARTNERS in the delivery and administration of education loans.  in the delivery and administration of education loans.  Promote financial literacy, Promote financial literacy, RESPONSIBLERESPONSIBLE borrowing and borrowing and

effective debt management practices. effective debt management practices. COMMITTEDCOMMITTED to honest and fair competition to ensure integrity to honest and fair competition to ensure integrity

and enhance product and service quality.  and enhance product and service quality.  ENCOURAGE ENCOURAGE and and PARTICIPATEPARTICIPATE in the open exchange of ideas in the open exchange of ideas

and information to maximize the synergy of our efforts.  and information to maximize the synergy of our efforts.  Support Support COMMUNITYCOMMUNITY outreach.  outreach.  DEVELOPDEVELOP and articulate legislative and regulatory positions.  and articulate legislative and regulatory positions.

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We’ll CoverWe’ll Cover

Why “split servicing” is on the increaseWhy “split servicing” is on the increase How split servicing impacts studentsHow split servicing impacts students Tools students can use to locate and track Tools students can use to locate and track

their loanstheir loans How you can help your students locate and How you can help your students locate and

track their student loanstrack their student loans

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What Causes Split What Causes Split Servicing?Servicing?

Student changed lender/guarantor to take Student changed lender/guarantor to take advantage of benefitsadvantage of benefits

Student consolidated while in-schoolStudent consolidated while in-school Student transferred to a new schoolStudent transferred to a new school School switched from FDLP to FFELP or vice School switched from FDLP to FFELP or vice

versaversa Lender suspended student loan offeringsLender suspended student loan offerings

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Legislative ChangesLegislative Changes

Ensuring Continued Access to Student Ensuring Continued Access to Student

Loans Act (ECASLA)Loans Act (ECASLA) Loan Participation Purchase Program Loan Participation Purchase Program Loan Purchase Commitment ProgramLoan Purchase Commitment Program

Term Asset-Backed Securities Loan Facility Term Asset-Backed Securities Loan Facility (TALF)(TALF)

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Impact to StudentImpact to Student

Communication overload!!Communication overload!!

Multiple servicers to single studentMultiple servicers to single student Status change notifications, privacy notice, 1098-EStatus change notifications, privacy notice, 1098-E Delinquency letters, phone calls and emailsDelinquency letters, phone calls and emails

Single student to multiple servicersSingle student to multiple servicers Changes in address or phone numberChanges in address or phone number PaymentsPayments Requests for deferment and forbearanceRequests for deferment and forbearance

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Impact to StudentImpact to Student

Payment schedule complicationsPayment schedule complications Multiple payment due datesMultiple payment due dates Multiple payment methods Multiple payment methods Potential loss of extended repayment optionsPotential loss of extended repayment options

Deferment and forbearance complicationsDeferment and forbearance complications Inconsistent deferment documentation standardsInconsistent deferment documentation standards Inconsistent forbearance period maximumsInconsistent forbearance period maximums

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Coping with the ImpactCoping with the Impact

Each of these inconveniences is easily Each of these inconveniences is easily overcome so long as the student knows overcome so long as the student knows

who their lenders/servicers are and how to who their lenders/servicers are and how to get in touch with them.get in touch with them.

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So….WHERE is my loan?So….WHERE is my loan?

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Tools for Schools and Tools for Schools and StudentsStudents

MeteorMeteorNSLDSNSLDSMapping Your FutureMapping Your FutureExpanding Web Services – using school Expanding Web Services – using school

issued credentials to access servicesissued credentials to access services

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The Meteor ProjectThe Meteor Project

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In the beginning….In the beginning….

Pre-Meteor Environment Pre-Meteor Environment Lenders, Guarantors, Servicers, Schools and Lenders, Guarantors, Servicers, Schools and

others all offer independent, proprietary web others all offer independent, proprietary web servicesservices

Access requires multiple loginsAccess requires multiple loginsFFELP Providers SolutionFFELP Providers Solution

Spring 2000: In response to Federal Spring 2000: In response to Federal Modernization Blueprint, NCHELP members Modernization Blueprint, NCHELP members move to create a platform and program move to create a platform and program neutral information network to provide neutral information network to provide aggregated financial aid information.aggregated financial aid information.

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In the beginning….In the beginning….Foundation PrinciplesFoundation Principles

Open SourceOpen SourceOpen CollaborationOpen CollaborationFreely AvailableFreely AvailableControlled Participation NetworkControlled Participation NetworkNot tied to a specific website, school product, or Not tied to a specific website, school product, or

organizationorganization

Policy and Technology DecisionsPolicy and Technology DecisionsThe technical solutions were easyThe technical solutions were easyThe policy decisions required collaboration and The policy decisions required collaboration and

teamwork…“co-opetition” teamwork…“co-opetition” similar to CommonLine and CR:Csimilar to CommonLine and CR:C

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The Result….The Result….

Non-proprietary, open source software that Non-proprietary, open source software that brings together data from distributed databases brings together data from distributed databases across the higher education financing across the higher education financing community.community.

Anyone can participate!Anyone can participate! LendersLenders GuarantorsGuarantors ServicersServicers SchoolsSchools U.S. Department of EducationU.S. Department of Education And others!And others!

Page 16: Where Did My Loan Go?

FSA approval for use of real time dataFSA approval for use of real time dataCollaborative effort to bring about change to Collaborative effort to bring about change to

the requirements for schools to solely rely on the requirements for schools to solely rely on NSLDS dataNSLDS data

Allows schools to resolve discrepancies by Allows schools to resolve discrepancies by using real time data that comes directly from using real time data that comes directly from the loan holders databasesthe loan holders databases

U.S. Department of U.S. Department of Education ApprovalEducation Approval

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Access real-time, student-specific financial Access real-time, student-specific financial aid information from multiple sources with aid information from multiple sources with an intuitive user interface and navigation an intuitive user interface and navigation

CurrentlyCurrently provides information on FFELP provides information on FFELP and alternative loans (capability exists to and alternative loans (capability exists to include Direct Loans & Perkins Loans)include Direct Loans & Perkins Loans)

Meteor FeaturesMeteor Features

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Meteor TodayMeteor Today

14 Independent points of access to the 14 Independent points of access to the NetworkNetwork

20 Data providers20 Data providersSeveral customized implementationsSeveral customized implementationsProvides single sign-on capabilitiesProvides single sign-on capabilities

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How Meteor WorksHow Meteor Works

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Meteor Participant TypesMeteor Participant Types

Organizations that implement the Meteor Organizations that implement the Meteor softwaresoftwareAccess Providers (AP)Access Providers (AP)Authentication Agents (AA)Authentication Agents (AA)Data Providers (DP)Data Providers (DP) Index Providers (IP)Index Providers (IP)

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The Meteor The Meteor ProcessProcess

One

Two

Access Provider

Data Providers

Student/Borrower or

Financial Aid Professional

orAccess Provider Representative

orLender Three

Index Provider

UsersAuthentication (by AP or AA)

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Data Available Data Available Through the Meteor Through the Meteor

NetworkNetwork

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NSLDSNSLDS

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NSLDSNSLDS

National database of Title IV recipientsNational database of Title IV recipientsDemographic and enrollment dataDemographic and enrollment dataLoan informationLoan information

FFELPFFELPFDSLPFDSLPPerkinsPerkins

Pell GrantsPell Grants

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NSLDSNSLDS

Supports ED in operational and research Supports ED in operational and research functions for Title IV aid programsfunctions for Title IV aid programs

GoalsGoals Improve the quality and accessibility of Improve the quality and accessibility of

student aid datastudent aid dataReduce the burden of administering Title IV Reduce the burden of administering Title IV

aidaidProvide accurate tracking of funds Provide accurate tracking of funds

appropriatedappropriated

Page 37: Where Did My Loan Go?

NSLDS – Where does the data NSLDS – Where does the data come from?come from?

Guaranty AgenciesGuaranty AgenciesPostsecondary InstitutionsPostsecondary InstitutionsCentral Processing SystemCentral Processing SystemDirect Loan ServicersDirect Loan Servicers

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Meteor and Mapping Your Meteor and Mapping Your FutureFuture

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Meteor CustomizationMeteor Customization Integration of data into other online Integration of data into other online

services services Great tool for debt management and default Great tool for debt management and default

aversion aversion One stop service – no need for the student to One stop service – no need for the student to

collect their outstanding loan information in collect their outstanding loan information in separate sessions.separate sessions.

Student sees THEIR actual outstanding loan Student sees THEIR actual outstanding loan debt in the counseling session.debt in the counseling session.

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Mapping Your Future’s Mapping Your Future’s Online Student Loan CounselingOnline Student Loan Counseling

Integration of real-time data Integration of real-time data Advice on borrowing conservatively Advice on borrowing conservatively Debt/salary wizard Debt/salary wizard Optional budget calculatorOptional budget calculatorSchool customization options School customization options

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Meteor and the National Meteor and the National Student Clearinghouse: Student Clearinghouse:

Campus Based Campus Based AuthenticationAuthentication

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Campus Based AuthenticationCampus Based Authentication

Schools that have entered into an electronic Schools that have entered into an electronic services agreement with the Clearinghouse will services agreement with the Clearinghouse will act as Authentication Agents.act as Authentication Agents.

Students campus issued credentials will be Students campus issued credentials will be utilized to access Meteor and other utilized to access Meteor and other Clearinghouse services via Student Self-Service Clearinghouse services via Student Self-Service Web siteWeb site

Page 44: Where Did My Loan Go?

The National Student The National Student Clearinghouse Student Self-Clearinghouse Student Self-

ServiceServiceMeteor is integrated into the Clearinghouse’s Meteor is integrated into the Clearinghouse’s

Student Self-Service ApplicationStudent Self-Service ApplicationFor schools that wish to provide students with For schools that wish to provide students with

Meteor access, Meteor loan detail is Meteor access, Meteor loan detail is incorporated into the LoanLocator displayincorporated into the LoanLocator display

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Online Award Letter PilotOnline Award Letter Pilot

Will serve as a debt management tool Will serve as a debt management tool Borrowing history presented BEFORE a new award is Borrowing history presented BEFORE a new award is

acceptedaccepted

Ensures that borrower is aware of the potential Ensures that borrower is aware of the potential impact of increasing his aggregate loan(s) impact of increasing his aggregate loan(s) amountamount Total current outstandingTotal current outstanding New total outstanding with the addition of the new loanNew total outstanding with the addition of the new loan Repayment scenarios based on aggregatesRepayment scenarios based on aggregates

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How can you help students?How can you help students?

Add one or more of these tools to your websiteAdd one or more of these tools to your website Advise students to look into ways to simplify Advise students to look into ways to simplify

repaymentrepayment Create a budget to determine affordabilityCreate a budget to determine affordability Consider all available repayment plansConsider all available repayment plans Ask lenders to reset payment due datesAsk lenders to reset payment due dates Take advantage of automatic payment optionsTake advantage of automatic payment options

Encourage students to complete a Student Loan Encourage students to complete a Student Loan Tracking SheetTracking Sheet

Page 52: Where Did My Loan Go?
Page 53: Where Did My Loan Go?

How can you help students?How can you help students?

Assure your students that successful repayment Assure your students that successful repayment can be accomplished bycan be accomplished by Keeping good recordsKeeping good records Staying in touch with their loan holdersStaying in touch with their loan holders Maintaining a strategy for repaymentMaintaining a strategy for repayment

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For More Information….For More Information…. Interactive Web Site Launched Interactive Web Site Launched

www.MeteorNetwork.orgwww.MeteorNetwork.org Audio presentationAudio presentation Interactive demonstration version of the Interactive demonstration version of the

softwaresoftwareLink to the Meteor project siteLink to the Meteor project site

Project DocumentationProject Documentationwww.NCHELP.org/Meteor.htmwww.NCHELP.org/Meteor.htm Implementation InformationImplementation InformationCurrent Provider ListCurrent Provider ListUser Guide and other documentationUser Guide and other documentation

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Tim CameronTim CameronNCHELPNCHELPMeteor Project Manager Meteor Project Manager [email protected]@nchelp.org

Amy KerwinAmy KerwinGreat Lakes Higher Education Great Lakes Higher Education Guaranty Corporation Guaranty Corporation [email protected]@glhec.org

Contact InformationContact Information