Collection Intermediate, Pay to Play

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Collection Intermediate, Pay to Play
2006 NCHELP FALL TRAINING CONFERENCE

• Steven Henriksen
• Director of Business and Financial Services
• Illinois Student Assistance Commission
• Phillip Cervin
• Vice President, Collections
• Texas Guaranteed Student Loan Corporation

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Purpose of the Session

• Current issues and challenges in collections
• Opportunities created by Higher Education
  Reconciliation Act (HERA)
• Operations impacts arising from cell phones
  auto-dialers

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Current Issues Challenges

• Changing retention marks
• Ramping up rehabilitation opportunities
• HERA

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Current Issues Challenges

• Reduction in number of payments to rehabilitate
  (from 12 to 9)
• Increase in percentage permitted for wage
  garnishment
• Decrease in retention for consolidations

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Current Issues and Challenges (Ongoing)

• Mobility of the defaulted borrower population
• Recruitment retention of qualified staff
• Definition of roles for in-house servicing
  operations

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Current Issues and Challenges (Ongoing Continued)

• Unique considerations in collecting on student
  loan versus other forms of debt
• Roles of collectors borrower location
• Measurement of success recovery rates and other
  tools

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Strategy of One Guarantor The Illinois Student
Assistance Commission (ISAC)

• Defaulted student loan portfolio characteristics
• Debt Management Department

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ISAC Strategy

• Wheels of Success
• Portfolio management
• HERA optimization
• Customer service
• Systems and other tools

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Cell Phones
2006 NCHELP FALL TRAINING CONFERENCE

• Regulations-where are they
• Training staff
• Strategies, system tracking
• Exchanges with vendors

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Dialer
2006 NCHELP FALL TRAINING CONFERENCE

• Regulations-where are they
• Training staff
• Downloads
• Strategies

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Borrower Contact
2006 NCHELP FALL TRAINING CONFERENCE

• Instant messaging
• Emails
• Leaving messages recorders,
• people
• Impact of letters

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Internal Considerations
2006 NCHELP FALL TRAINING CONFERENCE

• Philosophy strategies, portfolio
• management
• Who hires collector
• Type of collector
• Salary scale and competition

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Internal Considerations Continued
2006 NCHELP FALL TRAINING CONFERENCE

• Time frame
• Five teams
• Talk offs
• Garnishment notice impact

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Incentive Plans
2006 NCHELP FALL TRAINING CONFERENCE

• Type of behavior
• Individual Team goals
• Incentive plan development

• Teams 1 3
• Team 4 Consolidation
• Team 5 Rehab tracking

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Other Topics
2006 NCHELP FALL TRAINING CONFERENCE

• Contests - games
• Survey cards
• Quality control
• Default Recovery Services role

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Collection Agencies
2006 NCHELP FALL TRAINING CONFERENCE

• RFP process TG team effort
• Recovery and compliance
• contract
• Six agencies

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Key Partners
2006 NCHELP FALL TRAINING CONFERENCE

• Financial Partners - DCS
• Guarantor exchange
• Rehab lenders
• Collection agencies

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2006 NCHELP FALL TRAINING CONFERENCE
THANK YOU!Please be sure to complete your
conference evaluation forms after the conference!
Steven Henriksen Director of Business and
Financial Services Illinois Student Assistance
Commission Phillip Cervin Vice President,
Collections Texas Guaranteed Student Loan
Corporation