Federal Student Aid Federal Family Education Loan (FFEL)

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Federal Student Aid Federal Family Education
Loan (FFEL)

• Data Flow Reengineering Focus Group
• Orlando, FL
• Sunday, October 29, 2006

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Agenda

• Introductions
• Schedule
• Objectives
• Background
• Current Improvement Ideas
• Breakout Session
• Closeout

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Introductions

• Provide
• Name
• Organization
• Stage of the FFEL lifecycle you predominately
  work with

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Schedule
Time Agenda Topic Description
100pm to 145pm Background and Focus Group Vision Purpose of this session is to present opening remarks, set focus group objectives and expectations, provide background, and introduce current improvement ideas
145pm to 315pm Breakout Sessions (with breaks as needed) Attendees will break out into four facilitated discussion groups covering different stages of the FFEL lifecycle
315pm to 340pm Break Break
340pm to 450pm Breakout Session Presentations Attendees will reconvene into one group Federal Student Aid facilitators will present ideas generated during breakout sessions and open the floor for further discussion
450pm to 500pm Closeout Federal Student Aid will provide closing remarks and discuss next steps
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Ground Rules

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

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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

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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

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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)

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Background

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

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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

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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

Data Collection Capturing the data needed to meet business and reporting requirements eliminating unnecessary and duplicative data collection requirements
Data Process Flows Getting the right data, to the right place, at the right time
Data Integrity Preserving the reliability and condition of FFEL data so that it is consistently defined and maintained during the lifecycle of a FFEL loan
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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
Data Collection
Data Process Flows
Data Integrity
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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

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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)

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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

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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

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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

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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

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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

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Breakout Session

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

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Breakout Session Topics
Certification through Entering Repayment Repayment through Closure (non-claims) Claim Filing through Closure Consolidations
Establish the person record (FAFSA/ISIR process) Determine aid eligibility Receive student and school aid award records Process promissory notes Distribute funds for aid awards Initiate the borrower repayment process Perform exit counseling Conduct servicing activities Includes delinquency status does not include default status File for default File for discharge (disability, death, bankruptcy, etc.) File for loan assignment Determine claim eligibility Conduct default servicing activities Request reinsurance Initiate a consolidation request Verify consolidation eligibility Send/receive Loan Verification Certificates (LVC) Payoff underlying loans Communicate with borrower
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Groups
Example Lifecycle Activities
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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