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Federal Loan Servicing
MSFAA Summer Conference 2010
Presenters:
Jennifer ChandlerSenior Account ExecutiveSallie Mae
Roger EldridgeVice President, Marketing-MidwestGreat Lakes Educational Loan Services
June 28, 2010
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Agenda
Historical Perspective Federal Loan Servicing Announcements and Resources Borrower Advocacy
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Historical Prospective
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Elimination of FFELP
1993: Direct Lending created to replace FFELP by 1998
2005: Higher Education Reconciliation Act (HERA)
2007: College Cost Reduction and Access Act (CCRAA)
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Elimination of FFELP
2008: Ensuring Continued Access to Student Loans Act (ECASLA)
2009: Student Aid and Fiscal Responsibility Act (SAFRA)
2010: Health Care and Education
Reconciliation Act
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Federal Loan Servicing
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Federal Loan Servicing
Federally held FFELP Loans (PUT Loans)
Federal Direct Loans
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Becoming a Federal Loan Servicer Great Lakes, Sallie Mae, NelNet and PHEAA
selected as a federal loan servicers on June 17, 2009
Servicers given final approval to service Federal put loans on August 28, 2009
Servicers must be ready to begin Direct Loan Servicing by August 31, 2010
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Defining Loan Servicing
Helping borrowers manage their loans Explain tools and options available Repayment counseling
Perform due diligence activities Assist schools with default prevention efforts How services are provided
Telephone center support Online resources
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Defining Loan Servicing
Difference between federally held FFELP and Direct Loans Terms & conditions Reporting requirements Origination point
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Servicing Guidelines
Approach Servicers must comply with all legislative and regulatory
requirements unique best in business services.
System / Process Modifications Allocation Process
Borrower Centric Approach Customer Satisfaction Surveys
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Customer Surveys
Customer Services Survey Results 1st Quarter results released March 10, 2010 2nd Quarter results complied, not yet released Explanation of Results Customer Service Performance Scores Allocation Metric Calculation
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School Support
New reports New guides Training events The New School Initiative
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Commonly Asked Questions
How will loans be allocated between the servicers?
Will schools or students be able to choose which servicer they work with?
How will split servicing situations be handled?
How will customer satisfaction be measured? Additional questions…
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Announcements and Resources
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DOE Electronic Announcements Distributed via IFAP
August 28, 2009: Transition to Additional Servicer Support
September 16, 2009: Customer Service and NSLDS Information for Federally Held Student Loans
March 26, 2010: Q&A About Servicing federally Held Loans
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Additional Resources
Additional resources / websites NASFAA, MASFAA, & MSFAA
NASFAA Conference July 18-21, Denver Colorado
2010 FSA Conference November 30 - December 3, Orlando, Florida
Extensive Direct Loan transition training and support developed
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Borrower Advocacy
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Borrower Advocacy
Financial aid guidance for students and families
Training for college and university financial aid officers
Programs and resources to increase college access
Support for persistence and completion programs
Relevant entrance and exit student loan counseling for borrowers
Financial literacy education for all students
Counseling to help borrowers select the right repayment options
Counselors to help borrowers avoid delinquency and default
Support to help defaulted borrowers rehabilitate their loans
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Thank you!
Jennifer Chandler
(765) 473-5761
Roger Eldridge
(608) 770-5954
