1. Borrower Outreach and Communications
Mark C. Walsh | Dec U.S. Department of Education Student Loan Servicing Summit

2. Communications Volume
Telephone Calls
265 Million Placed
21 Million Received
286 Million

3. Communications Volume
s/Letters
753 Million Sent
1 Million Received
754 Million

4. Outreach Timeline Milestone Communication Focus Examples of Outreach
In School
Get acquainted with your servicer
Create an online account
Maintain valid contact information
Financial Literacy
Keep track of your loans
Make smart decisions
- Welcome Packets
- Welcome s and Introductory Materials
Quarterly Interest Notices
Loan Summary Details
Periodic and Consistent Financial Literacy Info
In Grace
Preparing for repayment
Understanding your options
Repayment Option Details
Early Awareness Reminders
In Repayment
Repayment options and flexibility
Work with your servicer (establish trust)
Borrower benefit details & making repayment simple and convenient
Monthly and annual statements / Notices
Segmented or targeted scenario based communications (such as prompting for Direct Debit or tailored Public Service Loan Forgiveness info)
In Delinquency
Income-Driven Repayment
Repayment & Postponement options
Consolidation or Extended Term
Targeted delinquency and other campaigns
Delinquency Notices
Successful Repayment
- Closure of the loan debt
Paid in Full or Consolidation Notices
Discharge or Forgiveness Confirmation

5. Critical Communication Stages
In School
In Grace
In Repayment
In Delinquency
In Default

6. Critical Communication Stages
In School
Communications
Entrance and Exit Counseling
FSA new borrower letter introduces servicer
Servicer welcome letter and packet
Additional communications include self-service features, balance, interest, entering grace
Financial literacy
Saving for college
Creating a budget
Managing personal finances
Establishing good credit
Servicer/FSA financial literacy site links
Avoiding over-borrowing
Identity theft
Wise use of credit cards
Career search tips
Repayment calculator tools

7. FSA Campaign – Financial Literacy
FSA launched a three week joint mini-campaign with the loan servicers to address predatory practices of third-party debt relief companies. This campaign began on Sept. 24.
Combat These Ads

8. Critical Communication Stages
In Grace
Preparing for Repayment
Maintain the relationship with the borrower
Ensure correct repayment status
Update and enhance contact information
Promote self-service through the web
Financial literacy continues
Correspondence: Countdown to repayment
FSA Campaigns
In-Grace borrowers were the most responsive to FSA’s 2014 campaign. Two s per year will go out containing information about repayment options
Borrowers That Have Withdrawn/Left School – Focus on IBR options that can provide a lower monthly payment with a goal of allowing this group to begin or re-enter a repayment status

9. Critical Communication Stages
In Repayment
Payment Vehicles
Online
Regular telephone
Smart phone
Mail
Auto-pay
Communication Methods
Inbound/Outbound calls
Servicer and FSA websites
Text messaging
Bills
Delinquency letters/ s
Mail inserts
Responding to written communications
Social media
Income-Driven Repayment
Proactive campaigns
Re-disclosure statements and regular correspondence
FSA IDR campaigns

10. FSA Campaign - Repayment
Marketing Objective: Increase awareness of repayment options
Key Messages:
Find the best repayment plan for you
Estimate your monthly payments
You may qualify to make payments based on your income
If you’re having trouble making payments, we can help
You don’t need to pay for services related to your student loans
Target Audience: Recent College Graduates and Borrowers
Timing:
Spring: 5/1/2014–6/30/2014
Fall: 10/15/14–12/15/14

11. FSA Campaign - Repayment
October 15 – December 15, 2014 Sample posts from Halloween
Don’t be scared of your student loans. If you have questions or need help, we’re here for you:

12. 12

13. Critical Communication Stages
In Delinquency
FSA Campaigns
“Getting Back on Track” s
60 and 240 day delinquency letters
Social Media campaigns
Borrowers who missed their first payment
Servicer Outreach Activities
Creative correspondence s
Website banners
Working with schools
Personal visits to borrowers
Text messages
Calling campaigns
Skip-trace activity
Assigning borrowers to individual staff members

14. Critical Communication Stages
In Default
Facts and activities
Final Demand Letter sent at 241 days
Default occurs at 270 days
All servicers continue attempts to reach the borrower up to 360 days of delinquency
Notice of Default sent by FSA’s Default Resolution Group
FSA Campaign
Defaulted Borrowers with Low Balances <$4,000
Communication will focus on the small amount of money per month it will take to rehabilitate their loans, re-enter a repayment status, and start to repair their credit

15. FSA Campaign – Borrowers At-Risk
s sent to 3.34 million borrowers (3.15 million successful)
CALL TO ACTION
COHORT
Apply for an income-driven repayment (IDR) plan
days delinquent
Apply for an IDR plan
days delinquent
Visit the repayment estimator
Owe more than $50K and entered repayment in the last year
In deferment or forbearance for reasons of financial hardship or unemployment
In grace period and owe more than $25K
Contact their servicer to apply for an IDR plan
Greater than 270 days delinquent

16. FSA Campaign Results 30% 17% 10% 7% Opened e-mail
Logged in to studentloans.gov
Accessed the repayment estimator or IDR application
Applied for IDR
30%
17%
10% 7%

17. Improving Borrower Communications
Servicers utilize the following:
FSA Quarterly Surveys
Servicer’s own survey process
Social media comments
Open rates
Success rates (response to calls for action)
Feedback from schools
Focus groups (internal/borrowers)

18. Improving Borrower Communications
Servicer Quality Control
Initial and update training
Scripts or talking points provided
Repository of information maintained
Supervisory review and coaching
Regular call monitoring
FSA Quality Control
Call monitoring
Call Center statistics and analysis
Account monitoring and review
Weekly Servicer Liaison touchpoint meetings
On-site reviews

19. Communications Enhancements
Website redesigns
Adding new links
Text messaging
Payment plan comparisons
Web chat
Personalized s
Billing reminders
Unique delinquency campaigns
Special features for the military
Enhanced communications while in school and during grace
IDR hotline and webpages
Pre-filled forms for convenience
Borrower newsletters
New website videos
Special phone lines for delinquent borrowers
New voice messaging to make deferment requests easier
In-house borrower surveys
Ability for borrowers to manage their accounts online 24/7

20. Plans for the Future Servicer initiatives
Easy navigation from mobile devices (phone, tablet, laptop)
Web redesign
Increased “self-service” opportunities
Promoting social media to schools
Enhanced financial literacy materials for borrowers
Staff dedicated to service member counseling
Unique new ideas to reach delinquent borrowers
Online scheduling of a call with a counselor 24/7
Post-call borrower customer service surveys

21. QUESTIONS?