Where Did My Loan Go? Presenters: Amy Kerwin Great Lakes Higher Education Guaranty Corporation Tim Cameron National Council of Higher Education Loan Programs

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.

California Lenders for Education (CLFE) CLFE Values Statement DEDICATED to promoting access to Postsecondary Education for California students, parents and schools DEDICATED to promoting access to Postsecondary Education for California students, parents and schools PARTNERS in the delivery and administration of education loans. PARTNERS in the delivery and administration of education loans. Promote financial literacy, RESPONSIBLE borrowing and effective debt management practices. 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. 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. ENCOURAGE and PARTICIPATE in the open exchange of ideas and information to maximize the synergy of our efforts. Support COMMUNITY outreach. Support COMMUNITY outreach. DEVELOP and articulate legislative and regulatory positions. DEVELOP and articulate legislative and regulatory positions.

We’ll Cover Why “split servicing” is on the increase Why “split servicing” is on the increase How split servicing impacts students How split servicing impacts students Tools students can use to locate and track their loans Tools students can use to locate and track their loans How you can help your students locate and track their student loans How you can help your students locate and track their student loans

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

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

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

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

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.

So….WHERE is my loan?

Tools for Schools and Students Meteor Meteor NSLDS NSLDS Mapping Your Future Mapping Your Future Expanding Web Services – using school issued credentials to access services Expanding Web Services – using school issued credentials to access services

The Meteor Project

In the beginning…. Pre-Meteor Environment Pre-Meteor Environment Lenders, Guarantors, Servicers, Schools and others all offer independent, proprietary web services Lenders, Guarantors, Servicers, Schools and others all offer independent, proprietary web services Access requires multiple logins Access requires multiple logins FFELP Providers Solution 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. 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.

In the beginning…. Foundation Principles Foundation Principles Open Source Open Source Open Collaboration Open Collaboration Freely Available Freely Available Controlled Participation Network Controlled Participation Network Not tied to a specific website, school product, or organization Not tied to a specific website, school product, or organization Policy and Technology Decisions Policy and Technology Decisions The technical solutions were easy The technical solutions were easy The policy decisions required collaboration and teamwork…“co-opetition” The policy decisions required collaboration and teamwork…“co-opetition” similar to CommonLine and CR:C similar to CommonLine and CR:C

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

FSA approval for use of real time data 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 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 Allows schools to resolve discrepancies by using real time data that comes directly from the loan holders databases U.S. Department of Education Approval

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

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

How Meteor Works

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

The Meteor Process One Two Access Provider Data Providers Student/Borrower or Financial Aid Professional or Access Provider Representative or Lender Three Index Provider Users Authentication (by AP or AA)

Data Available Through the Meteor Network

NSLDS

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

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

NSLDS – Where does the data come from? Guaranty Agencies Guaranty Agencies Postsecondary Institutions Postsecondary Institutions Central Processing System Central Processing System Direct Loan Servicers Direct Loan Servicers

Meteor and Mapping Your Future

Meteor Customization Integration of data into other online services Integration of data into other online services Great tool for debt management and default aversion 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. 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. Student sees THEIR actual outstanding loan debt in the counseling session.

Mapping Your Future’s Online Student Loan Counseling Integration of real-time data Integration of real-time data Advice on borrowing conservatively Advice on borrowing conservatively Debt/salary wizard Debt/salary wizard Optional budget calculator Optional budget calculator School customization options School customization options

Meteor and the National Student Clearinghouse: Campus Based Authentication

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

The National Student Clearinghouse Student Self-Service Meteor is integrated into the Clearinghouse’s Student Self-Service Application Meteor is integrated into the Clearinghouse’s Student Self-Service Application For schools that wish to provide students with Meteor access, Meteor loan detail is incorporated into the LoanLocator display For schools that wish to provide students with Meteor access, Meteor loan detail is incorporated into the LoanLocator display

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

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

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

For More Information…. Interactive Web Site Launched Interactive Web Site Launched Audio presentation Audio presentation Interactive demonstration version of the software Interactive demonstration version of the software Link to the Meteor project site Link to the Meteor project site Project Documentation Project Documentation Implementation Information Implementation Information Current Provider List Current Provider List User Guide and other documentation User Guide and other documentation

Tim Cameron NCHELP Meteor Project Manager Tim Cameron NCHELP Meteor Project Manager Amy Kerwin Great Lakes Higher Education Guaranty Corporation Amy Kerwin Great Lakes Higher Education Guaranty Corporation Contact Information