GHEAC Mardi Gras: Parade of Service 2003 GHEAC Annual Conference March 4 5, 2003 - PowerPoint PPT Presentation

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GHEAC Mardi Gras: Parade of Service 2003 GHEAC Annual Conference March 4 5, 2003

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GHEAC SERVICE OPTIONS for 2003/2004. Mike Behler, Field ... Cindy Abbott, Assistant Director for Program ... ONE SINGLE SOURCE from application to refund ... – PowerPoint PPT presentation

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Title: GHEAC Mardi Gras: Parade of Service 2003 GHEAC Annual Conference March 4 5, 2003


1
GHEAC 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
2
GHEAC Service Options2003/2004
  • SSP
  • SSP
  • Guaranty Only
  • Blanket Certificate of Guaranty (BCG)
  • New Lender Partners

2003 GHEAC Annual Conference
3
Single 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
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. 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
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
SSPGHEAC 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
SSPOperational 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
SSPGHEAC 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
12
SSPGHEAC 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
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
  • 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
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 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
19
Blanket 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
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
Implementation Update
  • Contact GHEAC for information
  • Options implementation
  • Questions regarding options
  • Suggestions for successful implementation
  • Lender participation questions

2003 GHEAC Annual Conference
22
New 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
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
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