1. RFI/RFP Guidelines Provided by CLFE CASFAA 2008, December 8, 2008
Anaheim , CA
Presented by,
Thalassa Naylor, Sallie Mae

2. Why have a lender list? For your students
Competition encourages quality improvements and good service
Choice – ability to pick the best lender for them
Protection from predatory lenders
For your financial aid office
Lenders that use your preferred process
Lenders that you have pre-screened for service and other important factors
Control your office time investment

3. RFI or RFP?
Request for Information (RFI) Request made during the project planning phase where a buyer still may need to identify product requirements, specifications, and purchase options. RFIs typically indicate that award of a contract will not automatically follow. Often followed by RFP.
Request for Proposal (RFP) An invitation for providers of a product or service to bid on the right to supply that product or service to the individual or entity that issued the RFP.

4. Why do an RFP?
To ensure fairness in lender selection and create an audit trail for federal compliance
To find lenders that use your school’s preferred process
To find lenders that offer the best quality products and services for your students
To ensure that you are providing your students with a list of committed and reputable lenders

5. The RFP Process Planning Survey Development Solication
Scoring/Selection
Notification

6. Planning
Planning is bringing the future into the present so that you can do something about it now. - Alan Lakein, time management expert Begin with the end in mind. - Stephen Covey

7. Planning RFP Committee
Draw from more than just the financial aid office – others with a vested interest in the end results.
FA Office
Business Office/Bursar
Student Representative

8. Planning DefineTimeline When do you need to have your lender list?
How much time to do you need to prepare?
How much time do you need to review?
Build in a recommended 6 weeks for lenders to respond (less than 4 is challenging for lenders if you want quality responses)

9. Planning 1/1 – 1/15 1/16 – 2/28 3/1 – 3/14 3/15 Plan List Respond Eval
1/1 – 1/15 1/16 – 2/ /1 – 3/ /15
Plan
List
Respond
Eval
Planning &
Development
Lender Response Time
Evaluation
Decision

10. Planning Selection Criteria
What factors will you use to select your lenders?
What is most important to the institution?
What is most important to the your students
More on this later…

11. Planning Develop a scoring methodology
Creating a way to score the responses is important:
a numeric way to compare lender responses that is less likely to be subjective.
You can weight more heavily things that are of more importance

12. Planning RFI Structure
Clearly numbered response questions will ensure every response can be compared
Organization of questions by topic ensures focused responses and makes review easier
Online/electronic response vs. paper
Supplemental requested materials

13. Survey Development
Define how you want to base your decision and build survey around these criteria. For example:
Lender stability and commitment
Customer Service
Process Flow
Specific Products Need
Debt Management/Default Prevention
Other criteria

14. Survey Development General Lender Information
Stability and financial strength
how will they fund the loans
short and long term financial positioning
Experience in Student Lending
Commitment (what do they do beyond just the loan?)
Financial literacy
Outreach
Scholarships
Philanthropy and CommunityService

15. Survey Development Customer Service Borrower service experience
School service & support
Online options
Collateral and information
Financial Literacy and Education
Debt Management
Default Prevention

16. Survey Development Platform & Processing Define your preferences
Can lenders use your preferred process?
If not, what is their process?
Guarantor choice
Borrower application process
Loan delivery
Servicing

17. Survey Development Possible FFEL Topics Funding stability
Guarantor partners
Borrower benefits*
Debt management & default prevention
Other value added services
PLUS
Servicing *
Loan Sales *
*may be irrelevant in current market

18. Survey Development Possible Private Loan Topics Eligibility Criteria
Pricing
Borrower benefits
Customer service
Repayment options
Cosigners
Program specific loans
Debt management & default prevention

19. Solicitation Invitation to Respond/Communication
Provide complete information on when, how, to whom, supplemental materials required.
What’s in it for the lenders?
total volume for each loan product
# of lenders to be selected
Length of placement

20. Solicitation Getting invitations out to lenders: ListServ (ie. CASFAA)
Personal invitations to lenders – hard copy or electronic (preferred)
CLFE

21. Scoring, Review and Selection
Each response received should be run though your scoring and review model developed during planning.
Any follow up or clarification requests should be determined quickly so lenders can respond.
Select your final list of lenders!

22. Notification
Notify all selected lenders promptly in writing ( is fine).
Notify all non-selected lenders promptly in writing ( is fine).
If possible, provide those not selected with reasons for non-selection. Assists them in understanding where they are not competitive, where they didn’t meet your processing criteria, or where they can improve.

23. Remember
Include at least three unaffiliated lenders (not same ownership).
Disclose that borrowers have the right to choose any lender, including lenders that are not on the lender list.
disclosing the criteria used to select the lenders on the lender list (this can be generically stated ie. Best customer service, met our institutions processing flow standards).
reviewing the lender list frequently

24. The following CLFE members indicate they provide support, tools or resources for developing an effective lender RFP.
Great Lakes
Sallie Mae
TGSLC List Assist
or contact TG’s Lender Consultant team at
Total Higher Education (T.H.E.)
or contact Lacey Carter at
USA Funds
contact your USA Funds representative or Brent Dove at

25. CLFE Resources
For the latest updated information, please go to our website at Thank you!

26. Acknowledgements
This presentation and information compiled by the CLFE RFP Committee:
Thalassa Naylor, Sallie Mae
Lacey Carter, Total Higher Education
Kim Thomas, National Student Loan Program
For more info and a more detailed document containing this information, please visit our website at