Peeling the Onion

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Session 22

• Peeling the Onion
• On Complex Federal Student Aid Questions and
  Complaints
• Debra Wiley
• C. Michael Turpenoff

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Peeling the Onion on Complex Federal Student Aid
Questions and Complaints

• A Review of
• The Federal Student Aid Customer Experience
• and
• How the Federal Student Aid Ombudsman Resolves
  Inquiries

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Peeling the Onion First Peel
1-800-4FEDAID Tens of Millions of Contacts Each
Year
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Peeling the Onion Second Peel
Specialty Call Centers Default Resolution
Group Federal Direct Loan Servicing Center
Federal Direct Loan Consolidation Center
Conditional Disability Discharge Unit (CDDU)
National Student Loan Data System Millions of
Contacts Each Year
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Peeling the Onion Third Peel
Escalated Contacts Tens of Thousands of
Contacts Each Year
White House
Secretary
Congress
Chief Operating Officer
Policy Liaison Implementation
FOIA/ Privacy Act
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Peeling the Onion Fourth Peel
Federal Student Aid Ombudsman (created by Higher
Education Act Amendments of 1998) Thousands of
Contacts Each Year
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Ombudsman Operating Principles

• An impartial, confidential resource
• Available after other customer service avenues
  have been unsuccessful
• Does not force solutions, mandate actions, or
  reverse decisions
• Works cooperatively with others to resolve
  problems

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Ombudsman Process

• Listen to both sides of the story
• Research find factual information
• Document contacts, activities, findings
• Develop options for resolution
• Report problems, trends, and recommend change

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The Common Case Themes?

• Procedural
• Informational
• Interpretive
• Exploratory
• Exception

• How do I?
• Where do I?
• Does this mean?
• What can I do?
• What can you do?

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Customer Profiles
Unknowing
Unable
Unwilling
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The Federal Student Aid Ombudsman Approach

Within law and regulation (What can happen vs.
what cant)
Summarize outcome so that all involved understand
what will happen, when, and why
Customer description of the problem what will
resolve it
Need full history of all aspects of the problem
(enrollment verification, loan servicing history,
and correspondence)
Facts-gathering conversations with the customer,
school, loan holder, guaranty agency,
referring office
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Case Sample 1 Initial Intake

• On July 17, I received an e-mail from my lender
  stating that my loan is in forbearance. I did
  not request a loan forbearance.
• The e-mail did not list contact information I
  could not even readily find contact information
  on the lenders website. I finally found a
  number I could call, and I get a different answer
  from each person that I talk with.
• (continued)

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Case Sample 1 (continued)

• On July 18, I mailed a check to pay off my loan
  principal. On July 27, the lender still had not
  received my check. On July 28, I wrote a letter
  to my lender for help. Now, I find out that I
  had interest accrue during the forbearance. As
  of today (August 29), I have not received a
  response. I plan to resume classes in the Fall.
  I am worried about my credit rating. I want my
  loans reclassified. Help!

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• Next Process Steps?
• You be the Ombudsman

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Case Sample 2 Initial Intake

• I was going to nursing school at the time I broke
  my neck in February 1997. I also have many other
  medical conditions.
• My guaranty agency (GA) told me to file a Total
  and Permanent Disability Loan Discharge. My
  doctor completed the form in 2001. After waiting
  months, the GA told me that they did not get this
  form, so I had my doctor complete another form in
  2002. (continued)

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Case Sample 2 (continued)

• In 2003, my GA sent a letter to the doctor
  requesting verification of my disabilities.
• My doctor then indicated my disabilities as
  partial. I am currently taking 15 medications,
  and can only be up 6 hours a day. I changed
  doctors due to long office waits and office
  location. I need help. The system was designed
  so someone in my condition could get relief, but
  I cannot if nobody approves the request.

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• Next Process Steps?
• You be the Ombudsman

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Case Sample 3 Initial Intake

• During my last semester of high school, I also
  went to night school at a career college. The
  college told me I needed to get better English
  and computer skills for an internship so I could
  graduate. When I went back to the college, it
  was closed. I am on disability income, but I
  think I can work in the future. I get some help
  from the state but I need to get a grant. What
  can I do?

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• Next Process Steps?
• You be the Ombudsman

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Case Sample 4 Initial Intake

• I requested that my lender consolidate my loans
  in mid-June. The loans were consolidated after
  July 1. I called the loan servicer, and they
  told me to continue to make payments as usual. I
  just received a letter showing an increased
  interest rate, increased payment amount, and my
  account is past due. Therefore, I called the
  loan servicer to complain, and they pretty much
  told me too bad.
• (continued)

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Case Sample 4 (continued)

• I was told that if I did not pay the higher
  amounts, I would be reported to collections and
  have a negative credit report. They did offer to
  suspend all of my payments, but that seemed
  ridiculous since I do want to pay my initial
  obligation. I believe I was poorly treated.
  What are my options? Why was my interest rate
  higher? Can my late fees be removed?

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• Next Process Steps?
• You be the Ombudsman

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Washington D.C. Contact Information

• Debra Wiley, Ombudsman
• Richard Kurtz, Case Management Reporting Officer
• C. Michael Turpenoff, Operations Officer
• Telephone [phone]
• Facsimile [phone]
• Website www.ombudsman.ed.gov
• E-mail debra.wiley_at_ed.gov richard.kurtz_at_ed.go
  v mike.turpenoff_at_ed.gov

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Washington D.C. Ombudsman Specialists

• Thad Bartkowiak
• Connie Jesse
• John McDade
• Pamela Scott

• Lynel McFadden
• Melissa Lewis
• Russell Trujillo

Contact Information Telephone (202)
377-3800 Facsimile [phone] E-mail
fsaombudsmanoffice_at_ed.gov