Alternative Loans – Processing Delivery Systems Presented by Carla Strawn – PNC Bank

I. Some common terms II. Overview of Alt. loan delivery options III. Meeting some of the players IV. Things to consider when choosing a SBS V. Exploring a process without SBS VI. Exploring a process with SBS VII. Overview of the Players VIII. Questions / Comments

 SBS – School Based Software  FAMS – Financial Aid Management System  SCR – School Certification Request  NDN – National Disbursement Network  CDS – Common Disbursement System  CDA – Common Disbursement Agreement

 Paper - Fax Certification  FAMS – send common-line file directly to lender - may not be an option with all lenders.  Individual Lender’s websites – Logon certify, download reports, download disbursement roster.  SBS - Use of Alternative Loan Processing Delivery System – on place for most lenders

 Elm  OpenNet  ScholarNet

 What’s the minimum functionality that we could work with? What would we like to have at best (our ideal process)?  What lenders participate?  For ease of processing, can SCR’s be exported into excel? Can they be imported directly into your FAMS?  Is the SCR List a diminishing list or must that be managed by the school? (i.e. deleting duplicate requests when your FAMS produces its own unique loan IDs)  How would conversion take place? (drop dead date or checking two systems at same time)  What is the timing for the technical update to go out regarding your change?

 Do you want to just do certification through this SBS or disbursement also? (NDN, CDS)  Does the SBS have a FAMS expert on staff that you can contact directly?  How often do they sweep their system for new certifications? (i.e. every hour, every 20 mins, daily?)  Do they offer any training sessions that you can utilize for your staff?  What’s the format of the SCR’s when you export them (if you can export)?  What other reporting capabilities are available?

Students Applies for Loan Lender sends Certification Requests via website / fax / mail Schools Certifies Loan in FAMS Paper ->school returns fax Certify loan again on lender site export to web file or another site Lender Receives Certification Lender may or may not send response file Disbursement EFT Check

ProsCons May provide more detailed information about application / borrower May allow for more detail on where borrower falls in Title X process. Schools must check multiple sites for cert. requests School MUST manage how requests are received and processed School staff must learn multiple sites and process

Student Applies for loan Lender sends cert request to SBS Schools receives all cert request from SBS Batch into custom data field in FAMS Cert. all loans in FAMS Export common-line file from FAMS Upload file to SBS SBS sends cert file to lenders Response Files sent via SBS from lenders Disbursement: NDN, CDS, CDA, EFT, Check

ProsCons Manipulate data from all lenders into excel if desired. Staff only need to learn one process Maintenance reporting for all lenders in one place. All lenders may not participate with your SBS of choice Does require IT support for initial setup with FAMS. May not give as detailed information as individual lenders site.

SystemElmOpenNetScholarNetInd. Lender Sites Available Disburs. Methods -Paper Check from lender or originator -EFT from Lender or originator -Elm NDN -Paper Check from lender or originator -EFT from Lender or originator -Sallie Mae CDA -Paper Check from lender or originator -EFT from Lender or originator -Great Lakes CDS -Paper Check from lender or originator -EFT from Lender or originator

 webinars  conference calls  meeting with representatives  talking to your lender representatives  talking with other schools

ELM Processing Flow - Overview

T RANSACTION M ANAGER O VERVIEW (O PEN N ET ) ► Transaction Manager is a web-based product accessed through the FMS log-in process. ► TranMan provides a web interface – allowing schools to create loans, process certification requests and make updates on non- Sallie Mae volume. ► TranMan sends change transactions immediately to lenders according to profiles. ► Utilizes key features of OpenNet FMS such as error checking, destination management and file reconciliation. ► File Types Supported: CommonLine 4 & 5. Confidential and proprietary information © 2010 Sallie Mae, Inc. All rights reserved.

ScholarNet ®  Is Great Lakes open, online tool to manage and exchange private loan data.  Benefits for Schools  Easy transition and flexible processing options  Provides single entry point into application process  Integrated with mygreatlakes.org and related private loan support tools  Benefits for Borrowers  Schools are able to process loans electronically for a wide range of lenders  Maximizes choice and minimizes complexity; faster processing  Schools have more time to counsel borrowers  Benefits for Lenders  Electronic processing with all ScholarNet schools  Supports full electronic loan processing, saving time and improving customer service  Access to ScholarNet information to assist schools and borrowers

 SBS – to ensure all setup forms are complete for both certification and disbursement / return funds.  Bursar – to ensure they are ready for fund transactions  Prior provider - if any to ensure they know they should no longer receive file transactions  Lenders – to ensure they work with SBS chosen or to complete an additional setup forms

QUESTIONS? Education Lending