1. Default Management New Challenges in Changing Times

2. To Be Covered v What’s Happening v New CDR Formula v Where did the PUTS put my loans v What can be done v Current Tools v Best Strategies

3. What’s Happening v Default rates are climbing across all sectors

4. What's Happening v “Informational” 3 year rates are being published For public institutions in New York State the 2008 cohort two and three year cumulative rates : Two year rate: 5522 Defaults/90780 in repayment CDR=6% Three year rate: 10033 Defaults/90618 in repayment CDR=11%

5. What’s Happening v Students are struggling with multiple servicers v Colleges are finding that default management efforts need to be modified

6. New CDR Formula Old Calculation: Borrowers who entered repayment and defaulted during a two year period Borrowers who entered repayment during the cohort year For example:Two year 2010 CDR10/1/09 – 9/30/11 10/1/09 – 9/30/10 New Calculation: Borrowers who entered repayment and defaulted during a three year period Borrowers who entered repayment during the cohort year For example:Three year 2010 CDR10/1/09 – 9/30/12 10/1/09 – 9/30/10 It is important to remember that the date a student enters repayment is generally six months after they leave school. Students who leave school in April 2009 will impact your 2010 CDR that will be published in 2012 and 2013.

7. New CDR Formula v Sanctions and benefits have changed as well v Raised the threshold percentage that triggers sanctions from 25% to 30%, effective in the 2012 FY v Single disbursement benefit threshold raised to 15 percent for three years

8. Where Have My Loans Been PUT? v PUT Loan program was authorized in ECASLA in 2008 v Allowed for the purchase of eligible FFEL loans by the Department v HESC had over 400,000 loan transferred under the PUT program

9. Where Have My Loans Been PUT? v PUT loans create numerous problems for students and schools v Students may have several servicers because of PUT v Schools can no longer rely on GA for default management assistance on PUT loans v Also creates delinquency notification issues for schools

10. What can be done v New avenues of information gathering need to be developed v Student borrowers need to be made MORE aware of DM efforts v Need buy in from leadership (defaults are an institutional issue) v What about retention???

11. Current Tools

12. NSLDS Date Entered Repayment Report

13. Current Tools v Default Manager

14. Strategies v Realize that Default Management is a “contact” sport v Get as much upfront contact information as possible v Concentrate on withdrawals v Use electronic communication whenever possible

15. Strategies v Facebook page for former students with repayment questions v Palm Cards v Electronic copies of deferment / forbearance forms/IBR v Work with your Alumni Association

16. Questions?