Financial Partners

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Session 61

• Financial Partners Journey Through NSLDS
• Pam Eliadis
• and
• Valerie Sherrer

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Objectives

• Identify how loan level data affects student
  eligibility
• Specify how the flow of enrollment data impacts
  timely conversion to repayment
• Examine ways financial partners can improve NSLDS
  Data Quality
• Recognize what data reported to NSLDS impacts the
  Cohort Default Rate
• Define NSLDS Security rules and user
  responsibilities
• Re-engineering NSLDS to Enhance Student Aid
  History Management

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(No Transcript)
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Student Eligibility
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Student Eligibility

• Loan level data that affect Student Eligibility
• Loan Statuses
• Originations
• Disbursements
• Cancellations/Refunds
• Outstanding Balances

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Student Eligibility

• Schools see eligibility information
• ISIR
• NSLDS FAP Website

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Student Eligibility

• Loan Status

• Default Status is based on Lender Claim Payment
• Rehabilitated Loans should be reported timely

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Student Eligibility - Aggregates
Aggregate Loan Limits are calculated for each
student on NSLDS to assist the FAA in determining
student eligibility.

• Three Major Variables
• Net Loan Amounts (Guaranty minus Cancellations)
• Disbursements
• Outstanding Principal Balance

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Student Eligibility Loan Status

• Identification of Consolidations Underlying
  Loans
• Loan Status Code PN, DN, PC, DP or PF
• Loan Status Date within 210 days (before or
  after) of the Consolidation Loan Date

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Student Eligibility

• Originations

• Report Originations as they happen
• Helps Schools see pending aid for Transfer
  Students

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Student Eligibility

• Cancellations/Refunds

Factor in determining the Net Loan Amount for
aggregate calculation
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Student Eligibility

• Disbursements

Factor in aggregate calculation
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Student Eligibility

• Outstanding Principal and Interest Balance Amounts

OPB factored in aggregate calculations, OIB and
Other Fees are not
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Enrollment Reporting
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Enrollment Reporting

• Impacts of Enrollment Reporting on Financial
  Partners
• Enrollment Reporting Flow
• Changes to the Loan Status
• Impact on the Date Entered Repayment
• Effects of Non-Reported Enrollment Changes

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Enrollment Reporting

• How do students get on a schools roster?
• Reporting of a loan
• School adds them to a roster
• Reporting of an ACG or SMART Grant
• (as of Jan. 2007)

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Enrollment Reporting Flow
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Enrollment Reporting

• When student drops below half-time attendance
• Loan Status IA to IG

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Enrollment Reporting

• When student re-enters school
• Loan Status RP to DA

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Enrollment Reporting

• Impact on Date Entered Repayment (DER)
• Enrollment Effective Date used to drive DER
• DER is loan based, not student based
• GA Data Provider Instructions
• Grace Separation 6 months
• DER Separation 6 months 1 day
• After entering repayment, DER does not change

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Enrollment Reporting

• Possible Effects of Non-Reported
  Enrollment Changes
• Loan converted to repayment early
• Loan entering repayment delayed
• Borrower enters grace period without knowledge

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Enrollment Reporting
 2006 IA/ID DA
Jan 260,389 65,378
Feb 282,469 82,381
Mar 294,921 91,004
Apr 290,532 87,451
May 297,569 87,417
Jun 281,140 73,435
Jul 265,881 64,955
Aug 261,977 60,826

• Data Quality Monitoring

Inconsistencies between enrollment and loan
statuses
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Enrollment Reporting

• Effective Enrollment Reporting and usage
• Reduces risk of default
• Minimizes technical defaults
• NSLDS
• Maintains the official enrollment data
• Provides GAs enrollment data weekly
• Instructs GAs to inform Lender/Lender Servicers
  timely

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NSLDS Data Quality
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NSLDS Data Quality

• Examine how Financial Partners can improve NSLDS
  Data Quality
• Timely reporting to GAs by lenders
• Accurate Contact information
• Accurate information

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NSLDS Data Quality

• Benefits of Timely Reporting
• Timely reporting of information affecting student
  eligibility
• New data reported quickly for decision making
• Effective program management and oversight

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NSLDS Data Quality

• Accurate Contact Information

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NSLDS Data Quality Accurate Contact Information

• Contact information displayed on NSLDS web sites
• Contact Information used for the Interactive
  Voice Response Unit for 1-800-4FEDAID

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NSLDS Data Quality Accurate Information

• Resolve reporting errors
• Close unconsummated loans
• Report loan transfers

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NSLDS Data Quality Accurate Information

• Resolve reporting errors
• Actively work reporting errors
• Analyze loan errors holistically
• Resolve for next submission

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NSLDS Data Quality Accurate Information

• Non-Closure of Unconsummated Loans
• May cause GAs to assume the loan status
• Creates conflicting information

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NSLDS Data Quality

• Accurate Information
• Unconsummated Loan Aging

Assumed by the GA
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NSLDS Data Quality

• GA Data Quality Measures
• Review Benchmark reports
• Data Integrity Improvement Plans
• Reconcile Fee Payment Backup Data
• Annual Reconciliation with NSLDS
• Research Reasonability Report variances

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NSLDS Data Quality

• Accurate Information

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NSLDS Data Quality Accurate Information
Jan 2006 12,708
Feb 2006 12,691
Mar 2006 12,714
Apr 2006 12,623
May 2006 12,464
Jun 2006 12,601
Jul 2006 12,835
Aug 2006 13,208
Number of Identifier Conflicts by Month
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Cohort Default Rates
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Cohort Default Rates

• Recognize what data reported to NSLDS impacts the
  Cohort Default Rate (CDR)
• Formula
• Fields
• Rates
• Frequency
• Adjustments

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Cohort Default Rates

• Borrowers who entered repayment in FY04 and
  defaulted in FY04 05
• divided by
• Borrowers who entered repayment in FY04

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Cohort Default Rates

• What NSLDS fields affect the CDR calculation?
• Date Entered Repayment (DER)
• Loan Type
• Date Claim Paid
• Claim Reason Code
• Loan Status Codes
• Student Identifiers

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Cohort Default Rates

• Two Lender Calculations
• Originating Lender Rate
• Current Holder Rate
• One GA Calculation

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Cohort Default Rates

• How often are the CDRs Calculated?
• Draft Cohort Default Rate (CDR)
• Calculate January
• Publish February
• Official Cohort Default Rate (CDR)
• Calculate August
• Publish September

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Cohort Default Rates

• CDR on the Web

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Cohort Default Rates

• CDR on the Web

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Cohort Default Rates

• How do Financial Partners request an adjustment
  to their CDR?
• Lenders
• Data Correction to GA within 30 days of
  publication
• The GA has 15 days to respond
• GA
• GA has 45 days to submit data corrections

CDR Guide for GAs and Lenders http//www.ifap.ed.
gov/drmaterials/FY04Cohortguide.html
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NSLDS Security
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NSLDS Security

• Define NSLDS Security rules and user
  responsibilities
• DCL Gen 05-06
• Audit Reports
• Data Mining
• User IDs

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NSLDS Security

• Dear Colleague Letter GEN 05-06
• NSLDS may not be used for marketing purposes
• Student/Borrowers permission is required
• Reminds users of Federal Student Aids
  enforcement obligation

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NSLDS Security

• Audit Reports
• Every student look-up is tracked by User ID
• Lender Audit Security Reports
• Requested by Destination Point Administrator
• Number of look-ups by user id
• Past 90 days

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NSLDS Security

• No Data Mining
• Completely Automated Public Turing Test to Tell
  Computers and Humans Apart (CAPTCHA) tool
• Monitoring top 20 users and organizations

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NSLDS Security

• User IDs
• Will be disabled after 12 months of inactivity
• Cannot be shared with colleagues
• Obtain through FSAwebenroll.ed.gov

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NSLDS Re-engineering
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NSLDS Re-Engineering

• NSLDS Functionality
• Monitor aid eligibility through applicant
  pre-screening, post-screening, and transfer
  monitoring processes
• Receive student enrollment updates from schools
  and their servicers, process and store this
  information in the Operational Data Store (ODS),
  and then distribute relevant enrollment updates
  to interested trading partners (i.e. lenders,
  lender/servicers, guaranty agencies).

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NSLDS Re-Engineering

• NSLDS Functionality
• Manage the default rate processes including
  calculation, distribution, and publishing of
  default rates
• Provide aid-level calculation services and
  provide SAHM operational reports and metrics 
• Manage receipt of student, aid, and organization
  data to provide an integrated student view of
  financial aid history

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NSLDS Re-engineering

• Goals for Re-Engineering
• Align with Federal Student Aid Data Strategy
  Efforts
• Implement FFEL data flow changes to facilitate
  design and implementation of Information
  Framework(IF)/ Student Aid History Management
  (SAHM)

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NSLDS Re-engineering

• Goals for Re-Engineering
• Improve Data Usefulness
• Data Timeliness
• Data Quality
• Program Monitoring and Oversight

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NSLDS Re-engineering

• FFELP Community Benefits
• Data source becomes responsible for reporting
• Using current industry data exchange formats and
  methods (i.e. XML Schemas)
• Standardized reporting for all life-cycle stages
  (i.e CommonLine)
• Reduced duplicative reporting among FFEL
  participants
• Interface Consistency

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NSLDS Re-engineering

• Students, Parents, and Schools Benefits
• Timely information for making eligibility
  decisions
• Enhanced data integrity
• Program Information Parity

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NSLDS Re-engineering

• Federal Student Aid Benefits
• Improved Customer Service to all constituents
• Facilitates better decision making
• Enhanced data integrity
• Improved oversight of FFEL Program
• Meets Target State Vision for the Enterprise

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NSLDS Re-engineering

• Next Steps
• Collaboration with community stakeholders
• Focus Groups being held in conjunction with both
  Federal Student Aid conferences
• Definition of requirements

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Thank you!

• We appreciate your feedback and comments.
• We can be reached at
• Phone Valerie Sherrer 202-377-3554
• Pam Eliadis at 202-377-3554
• Fax [phone]
• Email valerie.sherrer_at_ed.gov
• pam.eliadis_at_ed.gov