Late Stage Delinquency Assistance (LSDA)

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Late Stage Delinquency Assistance (LSDA)
Session 41

• Cynthia Battle
• Eileen Marcy

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Agenda
Background of Default
LSDA School Sample
Reports from Colleagues
DLSS Access and Reports
Now Its Your Turn
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Background of Default

• Cohort Default Rates
• Composition by School Type
• Borrower Delinquency Pattern
• Defaulter Characteristics

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Official Cohort Default Rates
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Composition of Cohort Default Rate
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Borrower Delinquency Pattern
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Defaulter Characteristics

• 89 did not receive the advantage of the full 6
  month grace period as a result of late enrollment
  notification (Sample)
• 76 withdrew from school and did not complete
  studies (Actual)
• 93 were not successfully contacted by telephone
  during the 360 day collection effort (Sample)
• 98 delinquencies are corrected for borrowers we
  talk to

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LSDA School Sample

• Participants
• Workload
• Results

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Selected LSDA Participating Schools
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LSDA Minimal Workload
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LSDA Results are Dramatic!
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WOW!!!!!!

• 36 Reduction in Cohort Default Rate
• at LSDA Schools

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Colleagues Report

• Testimonials
• Why LSDA Works
• Tools and Tips

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Testimonials

• I just wanted to drop you a note of thanks and
  appreciation for your help with my direct student
  loan. It had become a sore issue that I found
  difficult to face, being that I had no answers
  regarding payment. I was not aware of deferment
  options regarding unemployment, just those
  associated with schooling. Thanks again for your
  help and persistence.
• Student 
• Im glad you cared enough to contact me and not
  give up
• on me when I had just about given up on myself.
  
• Student 
• Borrowers are grateful that someone is willing
  to work with them and help them get through the
  critical point. A lot of the borrowers do not
  realize the seriousness of defaulting and the
  options that are available.
• Margaret Pearson, San Antonio College/Career
  Centers

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Why is LSDA Working ?

• Schools feel it is the right thing to do
• Schools feel that it is very doable
• Students respond well to schools
• It doesn't take a lot of resources
• The results are dramatic

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Tools LSDA User Guide   How to implement LSDA
process Available in English and
Spanish Section I - Introduction Section II
- Late Stage Delinquency Assistance
Initiative Section III - Web Tools
Guide Section IV - Ideas and Tips Available
from your School Services Representative.
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LSDA Tools

• Direct Loan Web Site
• Flexibility
• Identify unique borrower populations
• Direct Loan Servicing Center Assistance
• LSDA User Guide and tips
• 3-way calls with delinquent borrowers
• Numbers and Hours
• School Services 1-888-877-7658
• M-F 800 a.m. - 830 p.m. EST.
• Loan Counseling 1-800-848-0981
• Available M-F 830 p.m. Midnight
• Sat. 800 a.m. - 530 p.m. EST.

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Tips for Success

• Use a light touch remember you are there to
  help, not to collect.
• Call at different times of the day more people
  are home in the evening and you can call from
  home using a calling card.
• Mailing handwritten notes has been successful.
• Use contact information from the Web, student
  email addresses, Perkins Loan info, Registrars
  Office, Alumni Office, etc.
• Send out information on repayment options,
  deferments and forbearance.
• Connect the student with the Servicing Center in
  a three-way call.

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DLSS Access and Reports

• Login
• Reports
• LSDA Reports

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Login Start at the Direct Loan Servicing Web site
for Schools and select Login.
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You will transfer to the COD Web site. Login in
with your COD login.
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Select the Services menu option from the top
navigation bar.
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Select the Direct Loan Servicing link from the
left to display the available resources.
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Select the DLSS Website link to be securely
logged into the Direct Loan Servicing Web site
for schools.
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From the School Reports menu, select Delinquency
reports to get to the LSDA Report.
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Tools Summary Report
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Tools LSDA Report
NEW!
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Choose the campus for which you want to run the
report on, if applicable, select Execute Report.
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The LSDA Report provides the most recent report
of borrowers from your institution between 241
and 360 days delinquent. These borrowers affect
your cohort default rate.
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Use the sort icons in each column heading.
Selecting the icon will sort the report in
Ascending or Descending order based on that
single column.
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To perform more complex sorts using multiple
columns, use the Sort options on the Data menu.
This will activate a sort windows so you can
define the sort parameters.
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Drop down boxes replace report tabs. New Menu
Options allow you to Print or Export your
students data. Export options include HTML,
Excel, and Text, to name a few.
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New Menu Option allows you to sort and display
the report to your individual preference.
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New Menu Option allows for instant refreshing or
resorting of the data
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New Menu Option allows for different, customized
views of the data.
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Direct Loan LSDANow its Your Turn
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Effective Implementation

• Plan
• Schedule
• Tips from others
• Make it someone's responsibility

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Questions and Comments

• Contact Us
• john.pierson_at_ed.gov
• cynthia.battle_at_ed.gov
• mark.walsh_at_ed.gov