1. Student Loan Advocacy at the State Level
2019 NCHER Legilsative Conference
2/6.2019
Student Loan Advocacy at the State Level
Office of the Qualified Education Loan Ombudsman

2. 2019 NCHER Legilsative Conference
2/6.2019
Student Loan Advocate
2018 General Assembly Session
Created to be the borrower’s voice in the student loan process.
Mission:
Provide timely assistance to any qualified education loan borrower of any qualified education loan in the Commonwealth.
Office of the Qualified Education Loan Ombudsman

3. Why was the position created?
2019 NCHER Legilsative Conference
2/6.2019
Why was the position created?
Office of the Qualified Education Loan Ombudsman

4. FY 2015 Three-Year Default Rates
2019 NCHER Legilsative Conference
2/6.2019
FY 2015 Three-Year Default Rates
# of Schools
Borrower Default Rate (%)
# of Borrowers Defaulted
# of Borrowers Entered Repayment
Public
1,660
10.3%
269,876
2,616,327
Private
1,726
7.1%
78,706
1,106,590
Proprietary
2,364
15.6%
182,686
1,167,289
TOTAL-USA
6,155
10.8%
531,653
4,900,932
Virginia
123
9.4%
12,201
128,684
Office of the Qualified Education Loan Ombudsman

5. Virginia’s Federal Loan Portfolio
2019 NCHER Legilsative Conference
2/6.2019
Virginia’s Federal Loan Portfolio
1,014,500 - Borrowers
$36,800,000,000 – Debt
$36,274 – Per borrower
Standard Repayment: $420/month
Principal & Interest: $50,000
2018 Federal Student Aid
Office of the Qualified Education Loan Ombudsman

6. Why was the position created?
2019 NCHER Legilsative Conference
2/6.2019
Why was the position created?
Secretary DeVos
Since 2007, the amount of student loan debt held by the federal government has tripled, from about $500 billion to an estimated $1.5 trillion
43 percent of student loans are considered in “distress,” meaning they’re delinquent, at risk of default or students aren’t paying enough on their loans
2018 Federal Student Aid Conference
Office of the Qualified Education Loan Ombudsman

7. 2019 NCHER Legilsative Conference
2/6.2019
Student Loan Advocate
Receive, review and attempt to resolve any complaints from Qualified Education Loan Borrowers
Establish and maintain a qualified education loan borrower education course
Collect data and make policy recommendations for resolving problems and concerns
Office of the Qualified Education Loan Ombudsman

8. 2019 NCHER Legilsative Conference
2/6.2019
@SCHEVloanhelp

9. 2019 NCHER Legilsative Conference
2/6.2019
Office of the Qualified Education Loan Ombudsman

10. Student Complaint Form
2019 NCHER Legilsative Conference
2/6.2019
Student Complaint Form
Office of the Qualified Education Loan Ombudsman

11. QELO Case Load (October-January)
New Cases 39
Closed Cases 6
Active Cases 33
Website: December 1
Press Release: January 22
Closed Cases
Information Provided
Non-Virginia Resident Referral
Referral to other Department/Agency
Office of the Qualified Education Loan Ombudsman

12. QELO Case Load (October-January)
College Type
Public
23%
Private
31%
Proprietary
Unspecified
15%
Loan Type
Federal Only
46%
Private Only
10%
Federal and Private
School Loan 3%
Unspecified
31%
Degree
Diploma 7%
Associate
30%
Bachelor
43%
Masters
20%
Doctorate 0%
Completion
Current Student 3%
Graduated
49%
Terminated/Withdrawn
21%
Unspecified
28%
Office of the Qualified Education Loan Ombudsman

13. QELO Case Load (October-January)
Assistance Requested %
Loan Forgiveness / Discharge
23%
Loan Servicer Complaint
13%
School Closure
12%
College/ university loan situation
11%
Collection Agency 8%
Delinquency 7%
Default
Deferrment 6%
Military, Veteran, Dependent Loan Issue 1%
Other
Office of the Qualified Education Loan Ombudsman

14. 2019 NCHER Legilsative Conference
2/6.2019
COMING SOON!!
QUALIFIED EDUCATION LOAN BORROWER COURSE
Online modules that can be completed independently.
Lesson plans provided for inclusion in the financial literacy course required for high school graduation and for use in entrance and exit counseling as required of all student loan borrowers.
Office of the Qualified Education Loan Ombudsman

15. 2019 NCHER Legilsative Conference
2/6.2019
Education Course
DRAFT
DRAFT
Office of the Qualified Education Loan Ombudsman

16. Other States
DC; Georgia; Kentucky; Maryland; Missouri; New Jersey; New York; Oklahoma; Utah; Virginia; Washington
Office of the Qualified Education Loan Ombudsman

17. 2019 General Assembly Loan Servicer Bill HB1760
Voted Down in Committee
SB1112
Started in Education & Health
Referred to Finance
Senate version crosses over today
Office of the Qualified Education Loan Ombudsman

18. How Can You Help Us Out? Legislative Priorities - HEA
Smart postsecondary education decisions
Access to loan rehabilitation for struggling borrowers
Combatting debt relief scams
Rehabilitation for private education loans
Better loan servicing for student and parent borrowers
Eliminate barriers to assist federal student loan borrowers
Office of the Qualified Education Loan Ombudsman

19. How Can You Help Us Out? Member Organizations
Private Loan Rehabilitation
Options for Borrowers Already in Collections
Clearer Path to Qualification for Loan Forgiveness Programs
Educational Course – Content Delivery Platforms
Office of the Qualified Education Loan Ombudsman

20. 2019 NCHER Legilsative Conference
2/6.2019
Questions?
Scott W. Kemp
Office of the Qualified Education Loan Ombudsman