Where Did My Loan Go?

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Where Did My Loan Go?

• Presenters
• Amy Kerwin
• Great Lakes Higher Education Guaranty Corporation
• Tim Cameron
• National Council of Higher Education Loan Programs

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California Lenders for Education (CLFE)

• CLFE Mission Statement
• As a diverse coalition of industry participants,
  CLFE shall define common goals and engage in
  activities that improve and preserve the quality
  and integrity of education loan products and
  services delivered to students, parents and
  schools in California.

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California Lenders for Education (CLFE)

• CLFE Values Statement
• DEDICATED to promoting access to Postsecondary
  Education for California students, parents and
  schools 
• PARTNERS in the delivery and administration of
  education loans. 
• Promote financial literacy, RESPONSIBLE borrowing
  and effective debt management practices.
• COMMITTED to honest and fair competition to
  ensure integrity and enhance product and service
  quality. 
• ENCOURAGE and PARTICIPATE in the open exchange of
  ideas and information to maximize the synergy of
  our efforts. 
• Support COMMUNITY outreach. 
• DEVELOP and articulate legislative and regulatory
  positions.

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Well Cover

• Why split servicing is on the increase
• How split servicing impacts students
• Tools students can use to locate and track their
  loans
• How you can help your students locate and track
  their student loans

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What Causes Split Servicing?

• Student changed lender/guarantor to take
  advantage of benefits
• Student consolidated while in-school
• Student transferred to a new school
• School switched from FDLP to FFELP or vice versa
• Lender suspended student loan offerings

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Legislative Changes

• Ensuring Continued Access to Student Loans Act
  (ECASLA)
• Loan Participation Purchase Program
• Loan Purchase Commitment Program
• Term Asset-Backed Securities Loan Facility (TALF)

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Impact to Student

• Communication overload!!
• Multiple servicers to single student
• Status change notifications, privacy notice,
  1098-E
• Delinquency letters, phone calls and emails
• Single student to multiple servicers
• Changes in address or phone number
• Payments
• Requests for deferment and forbearance

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Impact to Student

• Payment schedule complications
• Multiple payment due dates
• Multiple payment methods
• Potential loss of extended repayment options
• Deferment and forbearance complications
• Inconsistent deferment documentation standards
• Inconsistent forbearance period maximums

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• Coping with the Impact
• Each of these inconveniences is easily overcome
  so long as the student knows who their
  lenders/servicers are and how to get in touch
  with them.

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So.WHERE is my loan?
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Tools for Schools and Students

• Meteor
• NSLDS
• Mapping Your Future
• Expanding Web Services using school issued
  credentials to access services

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The Meteor Project
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In the beginning.

• Pre-Meteor Environment
• Lenders, Guarantors, Servicers, Schools and
  others all offer independent, proprietary web
  services
• Access requires multiple logins
• FFELP Providers Solution
• Spring 2000 In response to Federal
  Modernization Blueprint, NCHELP members move to
  create a platform and program neutral information
  network to provide aggregated financial aid
  information.

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In the beginning.

• Foundation Principles
• Open Source
• Open Collaboration
• Freely Available
• Controlled Participation Network
• Not tied to a specific website, school product,
  or organization
• Policy and Technology Decisions
• The technical solutions were easy
• The policy decisions required collaboration and
  teamworkco-opetition
• similar to CommonLine and CRC

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The Result.

• Non-proprietary, open source software that brings
  together data from distributed databases across
  the higher education financing community.
• Anyone can participate!
• Lenders
• Guarantors
• Servicers
• Schools
• U.S. Department of Education
• And others!

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U.S. Department of Education Approval

• FSA approval for use of real time data
• Collaborative effort to bring about change to the
  requirements for schools to solely rely on NSLDS
  data
• Allows schools to resolve discrepancies by using
  real time data that comes directly from the loan
  holders databases

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Meteor Features

• Access real-time, student-specific financial aid
  information from multiple sources with an
  intuitive user interface and navigation
• Currently provides information on FFELP and
  alternative loans (capability exists to include
  Direct Loans Perkins Loans)

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Meteor Today

• 14 Independent points of access to the Network
• 20 Data providers
• Several customized implementations
• Provides single sign-on capabilities

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How Meteor Works
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Meteor Participant Types

• Organizations that implement the Meteor software
• Access Providers (AP)
• Authentication Agents (AA)
• Data Providers (DP)
• Index Providers (IP)

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The Meteor Process
Access Provider
Authentication (by AP or AA)
Data Providers
Users
One
Student/Borrower or Financial Aid Professional
orAccess Provider RepresentativeorLender
Two
Index Provider
Three
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Data Available Through the Meteor Network
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NSLDS
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NSLDS

• National database of Title IV recipients
• Demographic and enrollment data
• Loan information
• FFELP
• FDSLP
• Perkins
• Pell Grants

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NSLDS

• Supports ED in operational and research functions
  for Title IV aid programs
• Goals
• Improve the quality and accessibility of student
  aid data
• Reduce the burden of administering Title IV aid
• Provide accurate tracking of funds appropriated

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NSLDS Where does the data come from?

• Guaranty Agencies
• Postsecondary Institutions
• Central Processing System
• Direct Loan Servicers

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Meteor and Mapping Your Future
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Meteor Customization

• Integration of data into other online services
• Great tool for debt management and default
  aversion
• One stop service no need for the student to
  collect their outstanding loan information in
  separate sessions.
• Student sees THEIR actual outstanding loan debt
  in the counseling session.

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Mapping Your Futures Online Student Loan
Counseling

• Integration of real-time data
• Advice on borrowing conservatively
• Debt/salary wizard
• Optional budget calculator
• School customization options

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Meteor and the National Student Clearinghouse
Campus Based Authentication
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Campus Based Authentication

• Schools that have entered into an electronic
  services agreement with the Clearinghouse will
  act as Authentication Agents.
• Students campus issued credentials will be
  utilized to access Meteor and other Clearinghouse
  services via Student Self-Service Web site

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The National Student Clearinghouse Student
Self-Service

• Meteor is integrated into the Clearinghouses
  Student Self-Service Application
• For schools that wish to provide students with
  Meteor access, Meteor loan detail is incorporated
  into the LoanLocator display

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Online Award Letter Pilot

• Will serve as a debt management tool
• Borrowing history presented BEFORE a new award is
  accepted
• Ensures that borrower is aware of the potential
  impact of increasing his aggregate loan(s) amount
• Total current outstanding
• New total outstanding with the addition of the
  new loan
• Repayment scenarios based on aggregates

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How can you help students?

• Add one or more of these tools to your website
• Advise students to look into ways to simplify
  repayment
• Create a budget to determine affordability
• Consider all available repayment plans
• Ask lenders to reset payment due dates
• Take advantage of automatic payment options
• Encourage students to complete a Student Loan
  Tracking Sheet

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How can you help students?

• Assure your students that successful repayment
  can be accomplished by
• Keeping good records
• Staying in touch with their loan holders
• Maintaining a strategy for repayment

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For More Information.

• Interactive Web Site Launched www.MeteorNetwork.or
  g
• Audio presentation
• Interactive demonstration version of the software
• Link to the Meteor project site
• Project Documentationwww.NCHELP.org/Meteor.htm
• Implementation Information
• Current Provider List
• User Guide and other documentation

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Contact Information

• Tim CameronNCHELPMeteor Project Manager
  meteor_at_nchelp.org
• Amy KerwinGreat Lakes Higher Education Guaranty
  Corporation akerwin_at_glhec.org