NSLDS an ocean of information'but no pfishing

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NSLDS an ocean of information.but no pfishing!!

• Presented by
• Teresa Carrillo
• NMSL Director/Customer Service

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Navigating through dangerous waters..

• Important Screens
• Security/Changes
• Data sources and integrity
• Data Uses
• Case Studies

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Screens of importancein light of upcoming
legislation

• Not that all screens are not important..but these
  may become key
• Contacts
• Who can answer your questions?
• Cohort Default Rate
• Helpful when researching lenders who
• want to be added to your lender list.
• Submission Schedule
• Trying to figure out if a new submission
• is eminent.

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Cohort Default Rate History List

• OL VS CL
• OL Originating Lender
• Reflects the loans that the lender funded at the
  time it disbursed.
• CL Current lender
• Reflects the loans that the lender holds
  currently.
• Reading that information
• OL and CL are very similar
• Lender disburses and holds onto their loans.
• CL is higher that OL
• Lender purchases loans for other agencies.
• OL is higher than CL
• Lender sells their loans to another entity.

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Cohort Default Rate History List

• Reflects Default Rate at the code level for a
  lender, guarantor, or school.
• Guarantor code is impacted by the CDR for each of
  the lenders it partners with.
• If a lender uses one code across the nation or a
  particular region, that id will include all
  schools in all states or in that region in that
  CDR.

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Submission Schedule

• Helpful in determining
• When more current information will load to NSLDS.
• When the most recent information was loaded for
  that agency to NSLDS.
• Determine the frequency of submission
• Lender Quarterly/Monthly
• School 2 6 times a year
• Guarantor - Monthly

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Security/Changes to NSLDS
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What were they looking for???

• April 17, 2007 Surprise! ED issues letter
  stating that no one but students, borrowers, and
  schools can access NSLDS for an undesignated
  period of time.
• How did we come to this?
• Unauthorized access/use
• Consolidation frenzy
• Majority of users were not abusing
• their access to NSLDS.
• May 30, 2007 NMSLGC/NMEAF
• staff members began getting
• their accesses reactivated.

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New Features for security

• Requires first name, ssn, and date of birth to
  access a student
• To prevent data mining CAPTCHA (Completely
  Automated Public Turing Test to Tell Computers
  and Humans Apart) no ones, zeros, lower case l
  and o

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Rules to keep in mind..

• SSN conflicts (138) process now requires DOB,
  first name, SSN not just SSN.
• NSLDS Customer Service 1-800-999-8219, 8 a.m. to
  9 p.m. (EST)
• Do not share NSLDS access ids.
• Do not request access for individuals at other
  institutions.
• Access will be disabled after 12 months of
  inactivity.
• Prohibited Guarantor/Lender/Servicer activities
• Use of NSLDS information in marketing of student
  loans or other products.
• Use of automated tools to access NSLDS
  information using screen scraping technology!
• Accessing borrower NSLDS information on a student
  that does not have an established relationship
  with the agency, or who has not explicitly
  authorized access!

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Tracking at NSLDS they are watching

• Auditing
• Every student look-up is tracked by User ID
• External Audit Security Reports
• By Destination Point Administrator
• Number of look-ups by User ID
• Past 90 days
• Internal Audit Security Reports

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Two infractions can result in an agency losing
NSLDS accesspermanently.
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Data sources and integrity

• Whats out on NSLDS, where does it come from, and
  what is it used for??

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Data Elements - Time for numbersas of 6/2007

• Total number of rows 10,369,876,763
• Students 60,486,450
• Loans 230,651,154
• Grants 62,173,603
• Schools 18,775
• School Branches 39,698
• Lenders 31,610

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Results of lender/guarantor data comparisons

• Level 1
• Data does not match required
• format
• Level 2
• Internal edits to NSLDS
• Level 3
• Loans match, data does not
• Unmatched loans report
• Loan is missing from one entities file

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Top Financial Partner Errors

• Issues with date or amount associated to
• Principal balance
• Accrued interest
• Student/Borrower Social Security Number
• Date Entered Repayment
• Date of Loan Status

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Data Quality

• Impacts of bad data
• Increased error rates requiring additional staff
  time to resolve.
• High error rate? Guess whos coming to dinner!!!
• Borrower repayment can be delayed or too early.
• Grace period activated without borrowers
  knowledge.
• NSLDS reflects data that is incorrect and will
  cause errors.

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Data reporting Schools

• Enrollment
• Borrower drops below halftime, graduates, or
  withdraws from school.
• 6 month grace period begins.
• Repayment starts at expiration of grace.
• Impacts of timely/accurate reporting
• Ensures borrower is moved through statuses
  accurately/timely.
• Reduces risk of default.
• Assures accurate Cohort Default Rate.

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Example 2006 Cohort Default Rate

• Borrower entering repayment 10/1/2005 to
  9/30/2006 and defaulted between
  10/1/2005-9/30/2007
• Divided by
• Borrowers entering repayment between 10/1/2005
  9/30/2006
• Cohort year is 2 years behind. For 2006 CDR
• Draft CDR will be published February 2008
• Final CDR will be published September 2008

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Data Reporting Financial Partners

• Efficiencies gained through
• Timely reporting by lenders to guarantors
• Accurate contact information
• Accurate data

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Data Reporting Financial Partners/ Impacts

• Positive impact to student eligibility
• New data available for timely/accurate decision
  making
• Fewer errors created less staff time needed to
  correct errors
• NSLDS users have an accurate picture of a loan
  and where loans reside

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Tools

• Benchmark reports/top errors
• Identify data quality issues
• Track Error Trends
• Put plans in place to resolve identified data
  errors
• Define methods to correct data
• Develop ways to prevent data errors

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Data Uses

• What is it all there for?

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Schools

• Borrower/Student Eligibility
• Aggregates
• Annual
• Lifetime
• Default
• Overpayment
• Conditional or Permanent Discharge
• Bankruptcy
• Death

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Financial Partners

• Data repository to evaluate how
  effectively/accurately the program is being
  administered.
• Reasonability edits between guarantor Forms 2000
  and NSLDS.
• Payment of guarantor LPIF (Loan Processing and
  Issuance Fee) and AMF (Account Maintenance Fee).
• Identification of data integrity issuesetc

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Case studieshow do we use all this??
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Case 1 - Question

• Katie Crustacean shows on NSLDS as being in a
  Conditional Period for Disability Discharge.
• What do you do?

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Case 1

• Transmit the loan.
• If NSLDS doesnt show existing loans with the
  lender/guarantor that you are working with,
  contact the guarantor/lender to ensure that the
  needed documentation is gathered.
• Loans in a conditional status are held by ED.
• In this case the borrower must do all the
  following
• Obtain a physicians statement certifying that
  the borrower may engage in substantial gainful
  activity.
• Acknowledge that the previous loans nor the new
  loan can be discharged again for the same
  condition unless the condition substantially
  deteriorates.
• Sign a statement acknowledging that the previous
  loans are no longer in a conditional discharge
  status and collection activity will resume on any
  loans in a conditional discharge period.
• Receipt of a new loan terminates the borrowers
  conditional discharge.
• Collection activity is restarted on loans
  involved in the Conditional Discharge.

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Example of Students Certification

• I, _______ certify that neither the previous
  conditionally discharged loan nor the new loan
  can be discharged in the future on the basis of
  any injury or illness present when I applied for
  the Total Permanent Disability discharge or at
  the time the new loan is made, unless my
  condition substantially deteriorates so that I am
  again totally and permanently disabled. My
  signature below signifies that I understand the
  conditionally discharged loans will be removed
  from this status and my debt is reaffirmed.
  Further, I understand that the Dept. of Education
  will remove the conditionally discharged loan(s)
  from the conditional status.
• ________________________ _____________
• Signature Date

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Case 2

• Timothy Tuna has loans discharged due to Total
  and Permanent Disability prior to 7/1/2002what
  now?

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Case 2

• If a borrower was discharged BEFORE 7/1/2002
  he/she needs to do the following
• Obtain a physicians statement certifying that
  the borrower may now pursue substantial gainful
  activity (ability to work and earn money).
• Sign a statement acknowledging that any new loan
  may not be discharged due to the same or any
  disability existing at the time of the new loan,
  UNLESS the condition becomes substantially worse.
• If the borrowers loans were discharged 7/1/2002
  or after (and not in a conditional status) the
  borrower must comply with the 2 bullets above
  and
• Reaffirm any loan discharged for Total and
  Permanent Disability

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Disability Statuses on NSLDS

• DI Disability
• DS Defaulted, then Disabled
• This borrower will NOT be eligible for any Title
  IV funding because the borrower defaulted first
  before becoming disabled

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Case 3

• You have several students who are showing on
  NSLDS as close to or above aggregate limits.
• Determine eligibility for each of the following
  borrowers.

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Case 3a Wally Walrus 2nd year
Undergraduateand has no loans for thecurrent
year. What canhe borrow?
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Case 3a -

• Wally Walrus
• As long as Wally is eligible under all other
  regulations, Wally still has eligibility as
  follows
• Subsidized
• 6,062.00 aggregate
• 4,500.00 annual
• Unsubsidized
• 13,089.00 aggregate
• 4,000.00 annual

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Case 3b

• Saffron Seagull, an undergraduate borrower, wants
  to borrow an additional 1,000.00 in subsidized,
  but doesnt want any more unsubsidized.
• She consolidated in the past and
• has new loans, too.
• Can you give her what she wants?

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Case 3b
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Saffron Seagull Case 3b

• Saffron only has subsidized eligibility left in
  the amount of 776.00.
• Saffron has outstanding loans of 550.00 which is
  included in the total of 22,224.00.
• You can only approve 776.00 for Saffron if she
  is eligible under other rules.

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Gemma Jellyfish 3c

• Gemma is a graduate student.
• She crashed her Jet Ski and used
• up all the money she had to fix it.
• Now she is asking for 6,000.00
• in FFELP to cover tuition,
• books, and her dorm room.
• What can you do for Gemma??

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Gemma Jellyfish 3c

• Sorry, Gemma!
• Gemmas aggregates are within graduate limits,
  however she already has loans scheduled for her
  annual maximums as a graduate student.
• Gemma may also want to study her financial future
  and sell that Jet Ski!!

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Sufferin Sam Seahorse-3d

• Sam is a graduate student and already
• has a Fall loan in place for 4,250.00.
• Sam wants another
• 4,250.00 for spring, but
• was told by someone that
• because there is an unallocated
• amount on NSLDS he couldnt
• borrow the full 4,250.00. Sam is
• sufferin because he wants to water ski
• over the holidays - not work to pay for
• tuition!!!!
• What can you do for Sam?

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Sufferin Sam Seahorse 3d

• Sam is under aggregate limits for a graduate
  student.
• Sams fall loan is on NSLDS for the 4,250.00.
• The FAA is NOT required to investigate the impact
  of an unallocated amount on the students
  eligibility. UNLESS it has information that
  conflicts with the data reported in NSLDS.
• Then the school must resolve the error before
  certifying a new loan.
• If information is received after certification,
  the school must resolve the discrepancy before
  they deliver the funds to the borrower.
• Also, Sam may need a little information about
  what his repayment is going to look like! That
  ski trip may cost him more than he realizes!!!

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How does NSLDS calculate aggregates after a
Consolidation Loan??

• NSLDS identifies the underlying loans associated
  to the Consolidation loan.
• It uses those loan amounts to allocate current
  outstanding principal balance from the
  Consolidation loan to the subsidized an
  unsubsidized loans.
• The total of the calculated subsidized and
  unsubsidized outstanding balance amounts are
  subtracted from the outstanding principal on the
  Consolidation Loan.
• If there is a difference, it is considered to be
  unallocated.

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What could make up the unallocated amounts?

• Capitalized interest that is included in the
  Consolidation Loan. Capitalized interest does
  not count toward a borrowers aggregate limits.
• An underlying HHS loan (Health and Human
  Services) that was included in the Consolidation
  loan. (HSS loans are not reported to NSLDS.)
• An underlying loan that was part of a spousal
  consolidation (Spousal consolidations can no
  longer occur.)
• An underlying loan that has not yet been added to
  NSLDS due to error conditions (remember those
  pesky Unmatched Loan Report errors??).

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Department training specific to dealing with
aggregates!

• http//www.ed.gov/offices/OSFAP/training/index.htm
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• Bi-monthly through December 2007
• 1.5 hours long
• Led by 2 Federal trainers
• Through FAS Distance Education
• Publication Date June 8, 2007
• DCL ID ANN-07-13
• Summary This letter announces Federal Student
  Aid's online, instructor-led training sessions on
  National Student Loan Data System (NSLDS)
  Aggregate Loan Calculation. Topics covered
  include calculating Aggregate Loan limits using
  the NSLDS methodology and applying that
  information to student eligibility decisions.
  This session will also discuss loan types that
  impact aggregate limit calculations.

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Questions????
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