Student Loan Advocacy at the State Level 2019 NCHER Legilsative Conference 2/6.2019 Student Loan Advocacy at the State Level Office of the Qualified Education Loan Ombudsman

2019 NCHER Legilsative Conference 2/6.2019 Student Loan Advocate 2018 General Assembly Session Created to be the borrower’s voice in the student loan process. www.schev.edu/studentloan Mission: Provide timely assistance to any qualified education loan borrower of any qualified education loan in the Commonwealth. Office of the Qualified Education Loan Ombudsman

Why was the position created? 2019 NCHER Legilsative Conference 2/6.2019 Why was the position created? Office of the Qualified Education Loan Ombudsman

FY 2015 Three-Year Default Rates 2019 NCHER Legilsative Conference 2/6.2019 FY 2015 Three-Year Default Rates # of Schools Borrower Default Rate (%) # of Borrowers Defaulted # of Borrowers Entered Repayment Public 1,660 10.3% 269,876 2,616,327 Private 1,726 7.1% 78,706 1,106,590 Proprietary 2,364 15.6% 182,686 1,167,289 TOTAL-USA 6,155 10.8% 531,653 4,900,932 Virginia 123 9.4% 12,201 128,684 Office of the Qualified Education Loan Ombudsman

Virginia’s Federal Loan Portfolio 2019 NCHER Legilsative Conference 2/6.2019 Virginia’s Federal Loan Portfolio 1,014,500 - Borrowers $36,800,000,000 – Debt $36,274 – Per borrower Standard Repayment: $420/month Principal & Interest: $50,000 2018 Federal Student Aid Office of the Qualified Education Loan Ombudsman

Why was the position created? 2019 NCHER Legilsative Conference 2/6.2019 Why was the position created? Secretary DeVos Since 2007, the amount of student loan debt held by the federal government has tripled, from about $500 billion to an estimated $1.5 trillion 43 percent of student loans are considered in “distress,” meaning they’re delinquent, at risk of default or students aren’t paying enough on their loans 2018 Federal Student Aid Conference Office of the Qualified Education Loan Ombudsman

2019 NCHER Legilsative Conference 2/6.2019 Student Loan Advocate Receive, review and attempt to resolve any complaints from Qualified Education Loan Borrowers Establish and maintain a qualified education loan borrower education course Collect data and make policy recommendations for resolving problems and concerns Office of the Qualified Education Loan Ombudsman

2019 NCHER Legilsative Conference 2/6.2019 www.schev.edu/studentloan @SCHEVloanhelp

2019 NCHER Legilsative Conference 2/6.2019 Office of the Qualified Education Loan Ombudsman

Student Complaint Form 2019 NCHER Legilsative Conference 2/6.2019 Student Complaint Form Office of the Qualified Education Loan Ombudsman

QELO Case Load (October-January) New Cases 39 Closed Cases 6 Active Cases 33 Website: December 1 Press Release: January 22 Closed Cases Information Provided Non-Virginia Resident Referral Referral to other Department/Agency Office of the Qualified Education Loan Ombudsman

QELO Case Load (October-January) College Type Public 23% Private 31% Proprietary Unspecified 15% Loan Type Federal Only 46% Private Only 10% Federal and Private School Loan 3% Unspecified 31% Degree Diploma 7% Associate 30% Bachelor 43% Masters 20% Doctorate 0% Completion Current Student 3% Graduated 49% Terminated/Withdrawn 21% Unspecified 28% Office of the Qualified Education Loan Ombudsman

QELO Case Load (October-January) Assistance Requested % Loan Forgiveness / Discharge 23% Loan Servicer Complaint 13% School Closure 12% College/ university loan situation 11% Collection Agency 8% Delinquency 7% Default Deferrment 6% Military, Veteran, Dependent Loan Issue 1% Other Office of the Qualified Education Loan Ombudsman

2019 NCHER Legilsative Conference 2/6.2019 COMING SOON!! QUALIFIED EDUCATION LOAN BORROWER COURSE Online modules that can be completed independently. Lesson plans provided for inclusion in the financial literacy course required for high school graduation and for use in entrance and exit counseling as required of all student loan borrowers. Office of the Qualified Education Loan Ombudsman

2019 NCHER Legilsative Conference 2/6.2019 Education Course DRAFT DRAFT Office of the Qualified Education Loan Ombudsman

Other States DC; Georgia; Kentucky; Maryland; Missouri; New Jersey; New York; Oklahoma; Utah; Virginia; Washington Office of the Qualified Education Loan Ombudsman

2019 General Assembly Loan Servicer Bill HB1760 Voted Down in Committee SB1112 Started in Education & Health Referred to Finance Senate version crosses over today Office of the Qualified Education Loan Ombudsman

How Can You Help Us Out? Legislative Priorities - HEA Smart postsecondary education decisions Access to loan rehabilitation for struggling borrowers Combatting debt relief scams Rehabilitation for private education loans Better loan servicing for student and parent borrowers Eliminate barriers to assist federal student loan borrowers Office of the Qualified Education Loan Ombudsman

How Can You Help Us Out? Member Organizations Private Loan Rehabilitation Options for Borrowers Already in Collections Clearer Path to Qualification for Loan Forgiveness Programs Educational Course – Content Delivery Platforms Office of the Qualified Education Loan Ombudsman

2019 NCHER Legilsative Conference 2/6.2019 Questions? Scott W. Kemp scottkemp@schev.edu 804-786-2832 www.schev.edu/studentloan Twitter: @SCHEVloanhelp Office of the Qualified Education Loan Ombudsman