2006 NCHELP DEBT MANAGEMENT CONFERENCE

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2006 NCHELP DEBT MANAGEMENT CONFERENCE
Federal Collections Update
Gary Hopkins Director Default Resolution
Group FSA Borrower Services
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2006 NCHELP DEBT MANAGEMENT CONFERENCE
Discussion Items

• Review of FY05 Performance
• Developing Initiatives
• Compromise Repayment
• Common Posting Errors
• Borrower Services Realignment

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2006 NCHELP DEBT MANAGEMENT CONFERENCE
NDNH Update

• FY05 NDNH Matching Results
• FSA Recovered 475 Million on NDNH-matched
  accounts
• Guarantors Reported 1.187 Billion on
  NDNH-matched accounts
• FY06 ED Totals 260.53 Million

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2006 NCHELP DEBT MANAGEMENT CONFERENCE
NDNH Totals
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2006 NCHELP DEBT MANAGEMENT CONFERENCE
Treasury Offset Participation
FY2004 Processing Year of Accounts
Certified Total Guaranty Agencies
959,705 2,573,452 ED\FSA 1,613,747 20.1
Billion FY2005 Processing Year of Account
Certified Total Guaranty Agencies
879,967 2,581,013 ED\FSA 1,701,046 21.6
Billion FY2006 Processing Year of Account
Certified Total Guaranty Agencies
784,817 2,429,350 ED\FSA 1,644,533 21.4
Billion
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2006 NCHELP DEBT MANAGEMENT CONFERENCE
Mandatory Assignment Totals
FY02 278,847 1,153,347,840 FY03 211,331
855,202,008 FY04 175,089
753,864,906 FY05 175,305
757,431,933 PHEAA - 48,938 205,708,302 USAF
- 40,594 209,474,409
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2006 NCHELP DEBT MANAGEMENT CONFERENCE
EFT _at_ ED

• The Department is pursuing secure EFT with our
  Trading Partners.
• Our intent is to use the Sterling Commerce
  Product Suite (ConnectDirect).
• Changes will consist mainly of JCL modifications.
• File locations
• Naming conventions
• ED will be looking for volunteers from the
  guaranty agencies to participate in a pilot.

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2006 NCHELP DEBT MANAGEMENT CONFERENCE
EFT _at_ ED

• Please expect a brief questionnaire requesting
  information on your capabilities.
• Do you already have ConnectDirect
• Base level product
• Secure Option
• Size/capacity of Internet connection
• TCP/IP enabled

• Anita Deadwyler Collections Group
• Anita.Deadwyler_at_Ed.gov
• 202-377-3255
• Gregory Plenty IT Group
• Gregory.Plenty_at_Ed.gov
• 202-377-3253

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2006 NCHELP DEBT MANAGEMENT CONFERENCE
Cost Fee Structure

• For FY06 ED Collection Costs Do Not Exceed 25.
• Regular 20/18 (Direct\Non-Direct)
• Loan Rehabilitations 15/13.5
• Loan Consolidations 7.5
• Administrative Resolutions - 100

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2006 NCHELP DEBT MANAGEMENT CONFERENCE
Common Cost Errors

• Annual cost calculation
• Payoff Calculations
• Charges on Individual payments
• Charges on zero (or small) principle and
  interest balances.

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2006 NCHELP DEBT MANAGEMENT CONFERENCE
Guarantor Compromises

• Authority Limits
• Costs\Interest Costs\Int.\Princ.
• Borrower Income Potential
• Borrower ability to pay\condition
• Borrower physical condition\age
• Best Federal Fiscal Interests

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2006 NCHELP DEBT MANAGEMENT CONFERENCE
Default Recoveries

• FY01 - 5.1 Billion (2.67 Billion)
• FY02 - 5.2 Billion (2.55 Billion)
• FY03 - 5.4 Billion (2.22 Billion)
• FY04 - 5.6 Billion (2.12 Billion)
• FY05 - 5.8 Billion (1.97 Billion)
• FY06 - 6.4 Billion (1.94 Billion)

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2006 NCHELP DEBT MANAGEMENT CONFERENCE
FY05 ED GA Totals

• GA 3,726,035,889 13,493,000,000 (27.61)
• ED 2,082,909,679 17,481,000,000 (11.92)
• Total 5,808,945,568 30,974,000,000 (18.75)

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2006 NCHELP DEBT MANAGEMENT CONFERENCE
FY05 Non-Consolidations

• GA 1,951,846,689 13,493,000,000 (14.47)
• ED 1,886,148,982 17,481,000,000 (10.79)
• Total 3,837,995,671 30,974,000,000 (12.39)

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2006 NCHELP DEBT MANAGEMENT CONFERENCE
Loan Consolidation\Rehabilitation

• Results being Monitored
• 45 Limit Not a coincidence
• 5 - 25 Range for Consols
• 9-Month Rehab makes transition much less painful
• Balanced Approach Easily attainable

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2006 NCHELP DEBT MANAGEMENT CONFERENCE
45 Consolidation Limit

• FY05 GAs Combined _at_ 45
• 15 Agencies Exceeded the limit
• 6 Agencies Exceeded the limit by more than 10
  points.
• FY06 GAs Combined _at_ 46
• 17 Agencies Exceed the limit
• 7 Agencies Exceed the limit by more than 10
  points..

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2006 NCHELP DEBT MANAGEMENT CONFERENCE
FY06 ED FSA Projections

• GA 4,220,000,000 13,960,000,000 (30.23)
• ED 2,200,000,000 18,940,000,000 (11.62)
• Total 6,420,000,000 32,900,000,000 (19.50)

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2006 NCHELP DEBT MANAGEMENT CONFERENCE
FY06 Non-Consolidations Projections

• GA 2,425,000,000 13,960,000,000 (17.37)
• ED 2,050,000,000 18,940,000,000 (10.82)
• Total 4,475,000,000 32,900,000,000 (13.60)

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2006 NCHELP DEBT MANAGEMENT CONFERENCE
FY06 Recoveries

• FY06 FY05
• GA 1,483,789,299 1,407,157,358 (5.45)
• ED 1,048,299,794 1,032,669,399 (1.59)

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Post RealignmentFunctional Groups
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Borrower Services Pre-Realignment
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Borrower Services Post-Realignment
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2006 NCHELP DEBT MANAGEMENT CONFERENCE
THANK YOU!Please be sure to complete your
conference evaluation forms after the conference!
Gary L. Hopkins gary.hopkins_at_ed.gov 202-377-3208 f
sacollections.ed.gov
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