Title: GHEAC Mardi Gras: Parade of Service 2003 GHEAC Annual Conference March 4 5, 2003
1GHEAC Mardi GrasParade of Service 2003 GHEAC
Annual ConferenceMarch 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
2GHEAC Service Options2003/2004
- SSP
- SSP
- Guaranty Only
- Blanket Certificate of Guaranty (BCG)
- New Lender Partners
2003 GHEAC Annual Conference
3Single Source Partners (SSP)
- GHEACs 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
2003 GHEAC Annual Conference
4SSP
- 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
5Lender 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
6Blanket 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
7New Lender Partners
- To gain consensus for SSP, GHEAC agreed to
protect our SSP Lenders. GHEACs current
agreement requires that a lender must have either
been in GHEACs Loan Program prior to February,
1995 or have a physical presence in Georgia,
other than for the purpose of making student
loans to receive GHEACs guaranty - With the new Agreements, any Department of
Education eligible lender can receive GHEACs
guaranty - Several new lenders have already expressed a
desire to partner with GHEAC and use our services
2003 GHEAC Annual Conference
8Process 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
9SSPGHEAC 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
10SSPOperational 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
11SSPGHEAC Tracks Notes Disburses using the NDN
SSPGHEAC 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
12SSPGHEAC Tracks Notes Disburses using the NDN
- 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
13SSP 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
14Lender 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
15Lender 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
16Lender 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 - Schools 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 Lenders PLUS Credit
Check process
2003 GHEAC Annual Conference
17Blanket 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
18Blanket 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 GHEACs
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
19Blanket Certificate of GuarantyOperational
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
20Implementation 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
21Implementation Update
- Contact GHEAC for information
- Options implementation
- Questions regarding options
- Suggestions for successful implementation
- Lender participation questions
2003 GHEAC Annual Conference
22New Agreements
- 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.
2003 GHEAC Annual Conference
23Lenders 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
24Agreements Returned
- A Funds/Medfunds
- AmSouth
- Chase
- NextStudent
2003 GHEAC Annual Conference
25Questions Or Comments Regarding GHEAC Service
Options or SSP Loan Processing
- Thank You for Supporting
- GHEAC