1. Assigning Rehabilitation Loans to the U.S. Department of Education
Hope Merry
Great Lakes Higher Education
Sr. Manager –GA Accounting/Federal Reporting
2016 Knowledge Symposium
November 7 – 9, Sheraton Downtown, Nashville, TN

2. November 7 – 9, Sheraton Downtown, Nashville, TN
GA Rehab Program
FSA Perspective:
Overview of Process
Overview of GA Participation
Process Tips
Post Rehab Activities
GA Perspective:
Programing Phase
Testing Phase
Program Challenges
2016 Knowledge Symposium
November 7 – 9, Sheraton Downtown, Nashville, TN

3. Assignment of Rehabs to ED

4. November 7 – 9, Sheraton Downtown, Nashville, TN
FSA Perspective
Overview of Participation
5 GA’s Currently Participating
4,043 borrowers/ 12,638 loans/ 16.2 million in collection cost
0 GA’s Approved not executed
2 additional GA’s indicated interested in program but have not tested
2016 Knowledge Symposium
November 7 – 9, Sheraton Downtown, Nashville, TN

5. November 7 – 9, Sheraton Downtown, Nashville, TN
FSA Perspective
Process Tips:
Send to Great Lakes when you are ready to begin testing or have questions.
Testing set-up process takes at least 2 weeks.
Follow file layouts and specification guides
Most Common Error:
Sending incorrect image types in EA80 file (i.e. XLSX docs which are not permitted)
2016 Knowledge Symposium
November 7 – 9, Sheraton Downtown, Nashville, TN

6. November 7 – 9, Sheraton Downtown, Nashville, TN
FSA Perspective
NSLDS Technical Update
te.pdf
“Once the loan has been successfully received and reported on by Great Lakes, Great Lakes will ensure that the appropriate repurchase details and change in loan status are updated in NSLDS.”
Great Lakes updates NSLDS with the repurchase information and loan status, the GA’s do not need to report those when reporting the transfer to Great Lakes 581..
2016 Knowledge Symposium
November 7 – 9, Sheraton Downtown, Nashville, TN

7. FSA Perspective – Post Rehab Borrower Experience
Borrower Outreach:
Welcome Letter sent to borrower upon receipt of loan(s)
Courtesy Call to borrower informing them Great Lakes is now their servicer
Monthly Billing Statements sent
2016 Knowledge Symposium
November 7 – 9, Sheraton Downtown, Nashville, TN

8. FSA Perspective – Post Rehab Borrower Experience
Borrower Loan Status:
Borrower placed in forbearance for 3 months to allow them time to chose new repayment plan such as Income Driven Repayment Plan.
$5.00 monthly payment while in forbearance status
If no repayment plan selected, placed in Standard Repayment after 3 months with increased payment amount.
Goal:
Place borrowers in a repayment plan they can afford
2016 Knowledge Symposium
November 7 – 9, Sheraton Downtown, Nashville, TN

9. November 7 – 9, Sheraton Downtown, Nashville, TN
GA Perspective
Programing Phase
Ease of Commercial Servicer to EA27
Interest Rates
Military Benefits
EA80
Testing Phase
Expectations
Time
2016 Knowledge Symposium
November 7 – 9, Sheraton Downtown, Nashville, TN

10. November 7 – 9, Sheraton Downtown, Nashville, TN
GA Perspective
Program Challenges:
Limbo borrowers
Continuation of payment requirements
14 day waiting period
Potential for Direct Loan Consolidation
Ending of Payment Arrangements
2016 Knowledge Symposium
November 7 – 9, Sheraton Downtown, Nashville, TN

11. November 7 – 9, Sheraton Downtown, Nashville, TN
GA Perspective
Program Differences:
Rounding in calculation of rehab fees
Payment forwarding
Potential Offset Challenges
2016 Knowledge Symposium
November 7 – 9, Sheraton Downtown, Nashville, TN

12. November 7 – 9, Sheraton Downtown, Nashville, TN
Questions?
2016 Knowledge Symposium
November 7 – 9, Sheraton Downtown, Nashville, TN