1. GHEAC Mardi Gras: Parade of Service 2003 GHEAC Annual Conference March 4 - 5, 2003 GHEAC SERVICE OPTIONS for 2003/2004 Mike Behler, Field Representative Tracy Ireland, SSP Senior Manager Cindy Abbott, Assistant Director for Program Administration Sarah Ergle, Lender Client Relations & Compliance Specialist

2. GHEAC Service Options 2003/2004 SSP SSP+ Guaranty Only Blanket Certificate of Guaranty (BCG) New Lender Partners 2003 GHEAC Annual Conference

3. GHEAC’s signature service –ONE SINGLE SOURCE from application to refund processing School, Lender, and GHEAC consensus beginning 1995 All current GHEAC guaranteed loans must be processed through SSP $250 million per year disbursed Single Source Partners (SSP) 2003 GHEAC Annual Conference

4. SSP+ Same note tracking and origination services as SSP but…. –SSP directs funds to National Disbursement Network (NDN) –NDN combines SSP funds with all other NDN disbursed funds. Schools receive single roster and single ACH credit for all disbursements. –Refunds routed back through the NDN to SSP for processing 2003 GHEAC Annual Conference

5. Lender Flow/Guaranty Only Lender responsible for all note tracking, disbursements, and refunds School routes MPN, PLUS Applications and electronic certifications to each lender Lender resolves edit errors & rejects GHEAC works with lender to resolve GHEAC edits such as Defaults, Delinquencies, & Loan Limits Change Transactions take place between the school and each lender School routes refunds to each lender Lender sends record of disbursement and changes to GHEAC 2003 GHEAC Annual Conference

6. Blanket Certificate of Guaranty (BCG) Similar to Guaranty Only but… Lender disburses funds before transmitting loan data to GHEAC Once data is submitted to GHEAC, if prior Default, first disbursement is loaded but subsequent disbursements are canceled Lender must agree to provide data for analysis and monitoring of BCG program to determine program efficiency and integrity 2003 GHEAC Annual Conference

7. New Lender Partners To gain consensus for SSP, GHEAC agreed to protect our SSP Lenders. GHEAC’s current agreement requires that a lender must have either been in GHEAC’s Loan Program prior to February, 1995 or have a physical presence in Georgia, other than for the purpose of making student loans to receive GHEAC’s guaranty With the new Agreements, any Department of Education eligible lender can receive GHEAC’s guaranty Several new lenders have already expressed a desire to partner with GHEAC and use our services 2003 GHEAC Annual Conference

8. Process Flows for School SSP: GHEAC Tracks Notes & Disburses SSP+: GHEAC Tracks Notes & Disburses via the NDN Lender Flow/Guaranty Only: Lender Tracks Notes & Disburses Blanket Certificate of Guaranty: Lender Tracks Notes and Disburses Prior to Guaranty 2003 GHEAC Annual Conference

9. SSP GHEAC Tracks Notes & Disburses Guarantor Flow –School sends Loan Certifications to GHEAC for all SSP lenders’ loans SSP determines Promissory Note needs SSP works with School to resolve errors & rejects Borrowers call SSP for information or use Internet Borrower Inquiry Service (IBIS) SSP makes one disbursement for all SSP loans –SSP works with Schools to resolve disbursement issues for all SSP loans –School sends refunds to SSP 2003 GHEAC Annual Conference

10. SSP Operational Considerations SSP determines Promissory Note needs Schools current processes and literature remain the same SSP is single point of contact for originations and disbursement issues Disbursement timing enhanced for 03-04 –Funds arrive at school on disbursement day –Loans locked 24 hours prior to disbursement 2003 GHEAC Annual Conference

11. SSP+ GHEAC Tracks Notes & Disburses using the NDN Note tracking and processing is the same as SSP is today Daily Disbursement Processing Flow –System picks up disbursements 24 hours before disbursement date –SSP invoices lenders for disbursements –SSP sends a CommonLine Disbursement Roster for all SSP+ loans scheduled to be disbursed to the NDN locking the loans until the NDN disburses funds –NDN debits the SSP for all SSP+ disbursements. –NDN combines all disbursements and submits combined roster to school –Funds settle at the school on disbursement day 2003 GHEAC Annual Conference SSP+ GHEAC Tracks Notes & Disburses using the NDN

12. SSP works with the Schools and NDN to resolve disbursement issues School sends changes to SSP via ELM ® Service Bureau or other SBS, SSP performs all updates and creates CommonLine Change Transaction Responses Refunds flow from the school to NDN to SSP to lender 2003 GHEAC Annual Conference

13. SSP + Operational Considerations Just like regular SSP: SSP determines Promissory Note needs SSP is single point of contact for originations and disbursement issues Disbursement, refunds and voids flow through the NDN but school retains local control with SSP Disbursement timing enhanced for 03/04 –Funds arrive at school on disbursement day –Loans locked 24 hours prior to disbursement 2003 GHEAC Annual Conference

14. Lender Flow/Guaranty Only Lender Tracks Notes & Disburses Lender Flow –School sends Loan Certification to the Lender Lender determines Promissory Note needs –Lender uses its processing procedures to print and mail promissory note to the borrower –Signed promissory notes are sent to the Lender Lender works with School to resolve Lender edit errors & rejects 2003 GHEAC Annual Conference

15. Lender Flow/Guaranty Only Lender Tracks Notes & Disburses Lender sends loan data to GHEAC for guaranty via CommonLine App Send file –Lender works with GHEAC to resolve guarantor edits –GHEAC responds the Lender using CommonLine App Response file Borrower contact applicable Lender for information Lender makes the disbursements Lender works with the School to resolve disbursement and refund issues –School sends changes and refunds to the Lender –Lenders must report all disbursement, refunds, and changes to GHEAC via CAM 2003 GHEAC Annual Conference

16. Lender Flow/Guaranty Only Operational Considerations Lender prints and mails Promissory Notes School will communicate with the Lender to resolve errors, rejects, and transmission failures for loan processing and disbursements School’s literature should be updated to inform students to mail promissory notes to and contact the Lender for information Since a new Lender Code will be assigned for Lender Flow processes, BANNER ®, PowerFAIDS ®, PeopleSoft ® or other FAMS will need to be updated with each new Lender Code ELM ®, ScholarNet ® or other SBS routing will need to be updated with each new Lender Code and IP address School will need to use Lender’s PLUS Credit Check process 2003 GHEAC Annual Conference

17. Blanket Certificate of Guaranty Lender Flow – Similar to Guaranty Only –School sends Loan Certification to BCG lender Lenders determine Promissory Note needs Lender resolves normal Lender edit errors, rejects, as well as ALL other errors and rejects detected by GHEAC edits Lender issues disclosure Lender makes disbursements 2003 GHEAC Annual Conference

18. Blanket Certificate of Guaranty Lender sends BCG CommonLine records to GHEAC within 10 days of the first disbursement –GHEAC loads loan data, perform edits and responds to the Lender using CommonLine App Response –If the borrower has a previous Default on GHEAC’s system all subsequent disbursements are canceled and GHEAC works with the Lender to determine if borrower has satisfied the Default School sends changes and refunds to the Lender Lender must report all disbursement, refunds, and changes to GHEAC via CAM 2003 GHEAC Annual Conference

19. Blanket Certificate of Guaranty Operational Considerations Same as Guaranty Only with the inclusion of: –Lender must execute a BCG agreement and be able to support BCG processing –Lender must provide GHEAC with BCG program analysis and monitoring data –Default rate for participation must be 10% or less 2003 GHEAC Annual Conference

20. Implementation Update GHEAC Service Options Task Force Lender Flow – Internal Testing BCG – Internal Testing Programming SSP+ and Testing with NDN Contacting Lender Partners Lender Agreements 2003 GHEAC Annual Conference

21. Contact GHEAC for information: –Options implementation –Questions regarding options –Suggestions for successful implementation –Lender participation questions Implementation Update 2003 GHEAC Annual Conference

22. New guaranty agreements were distributed to all lenders on February 7, 2003. These agreements included the options of Guaranty Only/Lender Flow, SSP, SPP+, and Blanket Certificate of Guaranty. New Agreements 2003 GHEAC Annual Conference

23. Lenders Requesting Agreements A+ Funds/Medfunds AmSouth Academic Management Services (AMS) Bank of America Bank One Chase Citibank Student Loans College Credit Edsouth Educaid/Wachovia Georgia Student Finance Authority Independence Federal Savings Bank Key Bank USA National Education Nellie Mae NextStudent PNC Bank Student Loan Xpress, Inc. SunTrust Bank Wells Fargo EFS U.S. Education Finance Corporation 2003 GHEAC Annual Conference

24. Agreements Returned A+ Funds/Medfunds AmSouth Chase NextStudent 2003 GHEAC Annual Conference

25. Questions Or Comments Regarding GHEAC Service Options or SSP Loan Processing Thank You for Supporting GHEAC