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RFI /RFP Guidelines. Provided by CLFE CASFAA 2008, December 8, 2008 Anaheim , CA. Presented by, Thalassa Naylor, Sallie Mae. Why have a lender list? . For your students Competition encourages quality improvements and good service Choice – ability to pick the best lender for them - PowerPoint PPT Presentation
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RFI/RFP Guidelines
Provided by CLFECASFAA 2008, December 8, 2008Anaheim , CA
Presented by,Thalassa Naylor, Sallie Mae
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Why have a lender list?
For your students Competition encourages quality improvements
and good service Choice – ability to pick the best lender for them Protection from predatory lenders
For your financial aid office Lenders that use your preferred process Lenders that you have pre-screened for service
and other important factors Control your office time investment
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RFI or RFP?
Request for Information (RFI) Request made during the project planning phase where a buyer still may need to identify product requirements, specifications, and purchase options. RFIs typically indicate that award of a contract will not automatically follow. Often followed by RFP.
Request for Proposal (RFP) An invitation for providers of a product or service to bid on the right to supply that product or service to the individual or entity that issued the RFP.
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Why do an RFP?
To ensure fairness in lender selection and create an audit trail for federal compliance
To find lenders that use your school’s preferred process
To find lenders that offer the best quality products and services for your students
To ensure that you are providing your students with a list of committed and reputable lenders
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The RFP Process
1. Planning2. Survey Development3. Solication4. Scoring/Selection 5. Notification
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Planning
Planning is bringing the future into the present so that you can do something about
it now. - Alan Lakein, time management
expert
Begin with the end in mind.- Stephen Covey
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Planning
RFP CommitteeDraw from more than just the
financial aid office – others with a vested interest in the end results. FA Office Business Office/Bursar Student Representative
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Planning
DefineTimeline When do you need to have your lender
list? How much time to do you need to
prepare? How much time do you need to review? Build in a recommended 6 weeks for
lenders to respond (less than 4 is challenging for lenders if you want quality responses)
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Planning
Planning &Development Lender Response Time Evaluation Decision
1/1 – 1/15 1/16 – 2/28 3/1 – 3/14 3/15
Plan Respond Eval List
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Planning
Selection CriteriaWhat factors will you use to select your
lenders?What is most important to the institution?What is most important to the your students
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Planning
Develop a scoring methodologyCreating a way to score the responses is
important:a numeric way to compare lender responses
that is less likely to be subjective.You can weight more heavily things that are
of more importance
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Planning
RFI StructureClearly numbered response questions will
ensure every response can be comparedOrganization of questions by topic ensures
focused responses and makes review easierOnline/electronic response vs. paperSupplemental requested materials
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Survey Development
Define how you want to base your decision and build survey around these criteria. For example: Lender stability and commitment Customer Service Process Flow Specific Products Need Debt Management/Default Prevention Other criteria
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Survey Development
General Lender InformationStability and financial strength
how will they fund the loans short and long term financial positioning
Experience in Student LendingCommitment (what do they do beyond just the
loan?) Financial literacy Outreach Scholarships Philanthropy and CommunityService
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Survey Development
Customer ServiceBorrower service experienceSchool service & supportOnline optionsCollateral and information Financial Literacy and EducationDebt ManagementDefault Prevention
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Survey Development
Platform & ProcessingDefine your preferences
Can lenders use your preferred process? If not, what is their process?
Guarantor choiceBorrower application processLoan deliveryServicing
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Survey Development
Possible FFEL TopicsFunding stabilityGuarantor partnersBorrower benefits*Debt management & default preventionOther value added servicesPLUSServicing * Loan Sales **may be irrelevant in current market
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Survey Development
Possible Private Loan TopicsEligibility CriteriaPricingBorrower benefitsCustomer serviceRepayment optionsCosignersProgram specific loansDebt management & default prevention
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Solicitation
Invitation to Respond/CommunicationProvide complete information on
when, how, to whom, supplemental materials required.
What’s in it for the lenders? total volume for each loan product # of lenders to be selected Length of placement
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Solicitation
Getting invitations out to lenders:ListServ (ie. CASFAA)Personal invitations to lenders – hard
copy or electronic (preferred)CLFE
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Scoring, Review and Selection
Each response received should be run though your scoring and review model developed during planning.
Any follow up or clarification requests should be determined quickly so lenders can respond.
Select your final list of lenders!
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Notification
Notify all selected lenders promptly in writing (email is fine).
Notify all non-selected lenders promptly in writing (email is fine). If possible, provide those not selected with
reasons for non-selection. Assists them in understanding where they are not competitive, where they didn’t meet your processing criteria, or where they can improve.
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Remember
Include at least three unaffiliated lenders (not same ownership).
Disclose that borrowers have the right to choose any lender, including lenders that are not on the lender list.
disclosing the criteria used to select the lenders on the lender list (this can be generically stated ie. Best customer service, met our institutions processing flow standards).
reviewing the lender list frequently
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The following CLFE members indicate they provide support, tools or resources for developing an effective lender RFP.
Great Lakes [email protected] Mae http://www.salliemae.com/schools/financial_aid/straight-talk/seven-steps.htm TGSLC List Assist
http://www.tgslc.org/products/listassist/ or contact TG’s Lender Consultant team at [email protected]
Total Higher Education (T.H.E.)http://www.theloanprogram.org/FAO/lenderpartners.aspx
or contact Lacey Carter at [email protected] Funds
contact your USA Funds representative or Brent Dove at [email protected]
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CLFE Resources
For the latest updated information, please go to our website at
www.CLFE.org
Thank you!
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Acknowledgements
This presentation and information compiled by the CLFE RFP Committee: Thalassa Naylor, Sallie Mae Lacey Carter, Total Higher Education Kim Thomas, National Student Loan Program
For more info and a more detailed document containing this information, please visit our website at www.CLFE.org