5 th Annual Conference on Technology & Standards April 28 – 30, 2008 Hyatt Regency Washington on Capitol Hill

5 th Annual Conference on Technology & Standards Presenters David Bailey –Manager, Loan Program Administration, Kentucky Higher Education Assistance Authority (KHEAA) Jennifer M. Hulvey –Student Systems Lead Functional Analyst, Student Financial Services, University of Virginia Rhonda Kilgore –Product Strategy Manager, Oracle Corporation

5 th Annual Conference on Technology & Standards Description This session will provide a brief overview of the CommonRecord: CommonLine (CRC) format; its benefits for college/university financial aid offices, lenders, servicers and other organizations; and ensure that attendees have a basic understanding of the functionality within CRC. A discussion with the NCHELP Electronic Standards Committee and organizations that are utilizing CRC in production will focus on successes in the implementation process, the importance of its implementation, and the challenges and lessons learned by analysts and developers during their implementation and testing of CRC.

5 th Annual Conference on Technology & Standards Agenda Overview Benefits Things to Consider Implementation Q&A

5 th Annual Conference on Technology & Standards Common Record Background Information COD was an existing process that we were asked to mimic. However, there are processes that are unique to FFELP Consequently, COD was the base, but CRC was born out of the differences

5 th Annual Conference on Technology & Standards Common Record Philosophy Single standard Common Record Support all aspects of higher-ed electronic communications –Pell, Direct Loans, FFELP, Transcripts, Campus-Based, Loan Counseling, etc. Eliminate multiple flat file formats

5 th Annual Conference on Technology & Standards Common Record Philosophy continued Simplified process for submission of higher-ed related data Maintenance and enhancements managed by the Postsecondary Electronic Standards Council (PESC)

5 th Annual Conference on Technology & Standards The Common Record Common Record: –Common Origination and Disbursement -COD (Direct Lending) –CommonLine (FFELP and Alternative Loans) –Transcripts (XML Transcript) –XML ISIR (future release) –Loan Counseling (in development)

5 th Annual Conference on Technology & Standards Common Record Terminology Registry and Repository (Core Components Dictionary) –Standard structure –Naming conventions –Change control oversight Schema: Defines structure and content for XML Documents

5 th Annual Conference on Technology & Standards CommonLine Overview What is CommonLine? –Standard protocol for the exchange of loan processing data for FFELP and Alternative loans among schools and service providers. –Standards are defined by NCHELP Electronic Standards Committee. NCHELP website:

5 th Annual Conference on Technology & Standards Benefits XML Technology –eXtensible Markup Language provides greater flexibility in record processing and is MUCH easier to read then fixed format files. –Fixed Format Sample: JIMMYPAGEY STAIRWAYDRIVEALEXANDR IAVA –XML Sample PAGE

5 th Annual Conference on Technology & Standards School Benefits Borrower initiated processing –preferred flow at many institutions Cut down on redundant data entry Use of XML –human readability Closer to a virtual office –Enables move to real time processing in the future There are times this is needed on every campus!

5 th Annual Conference on Technology & Standards CRC Benefits continued (example) Fewer File Transmissions –Using CRC, Loan Requests and Changes are combined into one Request transmission. Previous CL versions required two separate file transmissions.

5 th Annual Conference on Technology & Standards CRC Benefits continued School Certification Requests These are initiated when a borrower submits a loan request directly to the service provider. The service provider collects the data submitted by the borrower and transmits a certification request to school. These requests are available in CL4 but much of the processing was manual in most ERP systems. With CRC, many of the steps have been automated. Here’s an example:

5 th Annual Conference on Technology & Standards CRC Benefits continued (example)

5 th Annual Conference on Technology & Standards FAMS Vendors Things to Consider With so many changes in legislation, CommonLine Version 4/5 will mandate drastic changes –Consider moving before it is necessary –Will allow flexibility without a lot of programming changes

5 th Annual Conference on Technology & Standards Schools Things to Consider … In Planning to Implement CRC –To be considered Common Record CommonLine compliant, the current version must be supported as well as CommonLine Release 4. This applies only to participants who previously adopted Release 4 and are now implementing CRC. –Talk with your loan service providers to understand their options to support CRC processing.

5 th Annual Conference on Technology & Standards Things to Consider example

5 th Annual Conference on Technology & Standards Things to Consider example

5 th Annual Conference on Technology & Standards The University of Virginia Founded in 1819 Thomas Jefferson Enrollment, –13,636 Undergraduate –4,830 Graduate –1,724 Law & Med –644 On-Grounds CE 20,834 Total Students come from 48 states and 109 foreign countries.

5 th Annual Conference on Technology & Standards The University of Virginia Made up of 10 schools in Charlottesville, VA plus the College at Wise in SW Virginia 51 bachelor's degrees in 47 fields 83 master's degrees in 66 fields 6 educational specialist degrees Law, Med, Darden (Grad Business) 59 doctoral degrees in 58 fields

5 th Annual Conference on Technology & Standards The University of Virginia 69% Virginia residents 46% Living in University housing 19.7 years = Avg UG student age 55 percent women; 45 percent men

5 th Annual Conference on Technology & Standards The University of Virginia Combined FA and SF operations 84.2% 4-Year graduation rate (entering class of 2003) 47% UG receive aid 07-08: 6,435 UG received aid from all sources totaling $88.6 million. 43% or $38.5 million, comes from University funds, including $8.8 million from athletics grants-in-aid and $29.6 million from other University sources

5 th Annual Conference on Technology & Standards The University of Virginia Use ELM Resources for loan processing Lender Request For Proposal Average indebtedness of graduate who borrowed to finance education (excludes parents' loans) –$16,727 In-state –$21,320 Out-of-state Percentage of undergraduate students in class of 2007 receiving loans (excludes parents' loans) –33% In-state –30% Out-of-state

5 th Annual Conference on Technology & Standards Tuition and Fees

5 th Annual Conference on Technology & Standards Implementation Going live for CRC on Oracle’s PeopleSoft Campus Solutions Release careers – 5 aid eligible Admissions – Live with prospects NOW Financial Aid – Live with university app in November 2008 Oracle’s PeopleSoft Campus Solutions fully live for

5 th Annual Conference on Technology & Standards Why CRC? Borrower initiated processing

5 th Annual Conference on Technology & Standards Loan Processing Flow

5 th Annual Conference on Technology & Standards Borrower-Initiated Flow Student or parent links to lender web-site via jump page from UVA web-site Student or parent applies for PLUS or alternative loan –Lender approves or denies loan –Student/Parent signs MPN Lender sends approvals (with borrower request amount) AND denials to ELM (separate files) UVA loads approved loans for school certification and references report on denied PLUS loans

5 th Annual Conference on Technology & Standards Vendor Support System is fully capable of processing Direct Loan and FFELP simultaneously … thank you to our friends in Oracle development! Sallie Mae – ready now; has tested with PeopleSoft ELM plans to have CRC available with its ELMNet4 release later this year. Current schedule: –Beta Testing - summer 2008 –CRC Live – 4th Quarter 2008

5 th Annual Conference on Technology & Standards Implemented Providers –Kentucky Higher Education Assistance Authority –Pennsylvania Higher Education Assistance Authority/AES –Sallie Mae including its serviced guarantors (Arkansas, Iowa, Maine, Michigan, NELA, Oklahoma, Rhode Island, USA Funds) –ELM (in process) Wells Fargo (in process) F.A.M.S. –Oracle’s PeopleSoft –Sigma Systems –Wolffpack –Datatel (in process)

5 th Annual Conference on Technology & Standards Q&As