Interactive ED Update

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Interactive ED Update - Part 1
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A Look at ASAs Ombudsman

• Presented by Grace Bartini
• Ombudsman
• American Student Assistance

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INTRODUCTION

• ASA appoints Ombudsman in October 1999.
• Ombudsman is envisioned as an independent agent
  advocating for the borrower.
• Ombudsmans role is to work with individuals to
  resolve problems and to analyze cases and make
  recommendations for improvements to operations,
  processes and policies.

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INTRODUCTION

• Ombudsmans mission and vision supplements the
  Voluntary Flexible Agreements (VFA) emphasis on
  FFELP wellness.
• Concomitant with creation of Ombudsman Unit, ASA
  redesigns Post Default Services (PDS) into
  Payment Advisory Services (PAS) and creates a
  Dispute Resolution Unit (DRU) in the Operations
  (OPS) area.

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TRENDS

• Communication
• What is communicated?
• Payment History
• How is it communicated?
• Clarity
• Tone

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TRENDS

• Complexity of Student Loans
• Voluntary Flexible Agreement(VFA)
• Developing relationship with borrowers
  throughout the life of the loan
• Promoting FFELP Wellness
• Ombuds Network
• Mining resources to encircle the issue

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TRENDS

• Commitment
• On the part of all parties to come to a fair
  resolution.

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SYNERGIES

• Within ASA
• Payment Advisory Services (PAS)
• Dispute Resolution Unit (DRU)
• Corporate Litigation
• Ombudsman Unit
• Goal To develop problem resolution as a core
  competency at ASA.

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SYNERGIES

• Within the Student Loan Community
• OSFA Ombuds
• Other Agencies
• Sallie Mae
• Direct Loan Consolidation
• ECMC

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SYNERGIES

• Outside the Student Loan Community
• Educational Opportunity Centers
  (EOCs)
• Rehabilitation Agencies
• Community Agencies

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OUTREACH

• Early Awareness
• Be A Wise Borrower
• Life of the Loan

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Office of the Ombudsman Debra Wiley
NCHELP DEBT MANAGEMENT CONFERENCE Savannah,
GA February 2001
We Help Put America Through School
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SFAs Ombudsman An Opportunity to--

• Open communication
• channels
• Offer other
• perspectives
• Organize details
• Outline options
• Overtly collaborate
• Optimize outcomes

We Help Put America Through School
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Office of the Ombudsman

• Is impartial, confidential
• Is available after other avenues utilized
• Works cooperatively with partners
• Looks for informal resolutions
• Analyzes for potential of systemic change

We Help Put America Through School
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Case Types
General Assistance Need information or need
guidance on other channels for resolution same
day open and close
Problem Assistance Are more complex and require
extensive research 1 to 30 days to close
We Help Put America Through School
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Case Type Distribution FY 2000
(9/30/99-09/30/00)
7,833 cases
We Help Put America Through School
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Case Type Distribution (10/01/00-12/31/00)
2,353 cases
We Help Put America Through School
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The Cumulative Totals
We Help Put America Through School
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Customers Call About.

We Help Put America Through School
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Customers Call About.

• Default (15.28)
• Service Quality (15.56)
• Debt Discharge Provisions (14.97)
• Account Balances (12.5)
• Repayment Terms (6.13)
• Tax Offset (6.92)
• and more...

We Help Put America Through School
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Open Cases Issues..
We Help Put America Through School
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Case samples

• No contact on loan since 1988

• 4 times sending same disability
• discharge information

• Cant afford the minimum
• ISR amount

• Enrollment status reported
• wrong grace period lost

• Cant get payment
• history

• Interest accumulation
• during bankruptcy

We Help Put America Through School
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Customers Expect...
We Help Put America Through School
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Ombudsman Case Management
Problem Assistance Cases
We Help Put America Through School
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Delivering Service..

• Small core team in DC
• Teams within SFA
• Rotating employee details
• Networks with partners
• Resolving each case and tracking results

We Help Put America Through School
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Partnering with you
Improving services to our students
We Help Put America Through School
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Thank you!
We Help Put America Through School
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U.S. Department of EducationInteractive Ed Update

• Presented by
• Pamela Moran
• Chief, Loans Branch
• Program Development Division of Analysis, SFA
• U.S. Department of Education

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FFEL-Related Regulations

• Total and Permanent Disability
• Effective July 1, 2002, except selected
  provisions effective July 1, 2001
• Guaranty Agency Due Diligence and other FFEL and
  Direct Loan Provisions
• Effective July 1, 2001, except 682.410 (b) (6)
• Teacher Loan Forgiveness
• Effective July 1, 2001

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GA Due Diligence and other FFEL and DL Provisions

• 682.207
• - Authorizes lender to disburse according to a
  school supplied modified schedule for hold and
  release and low default schools
• 682.210
• - Eliminates 6-month backdating of deferments.
  
• Exception Unemployment deferment

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GA Due Diligence and Other FFEL and DL Provisions

• 682.210 (continued)
• Elimination of 6-month limitation applies to any
  deferment period that includes July 1, 2001
  (effective date) or later
• Documentation for deferment more than 6 months
  prior to application must relate to begin date of
  eligibility

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GA Due Diligence and Other FFEL and DL Provisions

• 682.410 (b)(6)
• Overhaul of postdefault due diligence
• 682.604
• 682.604 (b)(2)(i) changed to provide for hold
  and release
• Clarification of terms that are substantially
  equal in length for second disbursement

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Total and Permanent Disability Discharges
682.200 and 682.402 (Nonconsensus NPRM)

• Applies to Perkins, FFEL, and Direct Loan
• Modifies definition to exclude reference to
  attending school as disqualifying
• Creates a conditional discharge period of up to
  3 years from date of disabling condition to
  determine final eligibility
• Provides no payments need be made during
  conditional discharge period

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Total and Permanent Disability Discharges

• Effective July, 2001
• Changed definition
• For discharges granted on or after July 1, 2001,
  and before July 1, 2002, reaffirmation of loan
  within 3 years of date certified as beginning of
  total and permanent disability (New promissory
  note or signed repayment agreement)
• Effective July 1, 2002 - All other

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Death Discharge682.402

• Is effective July 1, 2001
• Requires original or certified copy of death
  certificate for discharge
• Provides exceptional circumstances discharge
  without death certificate upon approval by GA
  chief executive officer
• Requires reliable documentation maintained
  separately and available upon request

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Teacher Loan Forgiveness

• Reflects 428J of HEA after 1998 Amendments
• Applies to FFEL and Direct Loan Borrowers
• Must be new borrower
• No outstanding balance on October 1, 1998, or on
  date loan is obtained after October 1, 1998
• 5,000 in combined forgiveness after 5 years of
  full-time teaching

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Teacher Loan Forgiveness

• Claim Process through GAs as other cancellations
• 45 days to approve and pay to holder
• Application to holder after completion of 5 -
  year service period
• Holder notification to borrower of GA
  determination within 30 days

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Teacher Loan Forgiveness

• Mandatory Forbearance
• Annual increments for low balance borrowers
• 60 days awaiting application and through approval
  or denial

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OTHER ACTIVITIES

• Child Care Provider Loan Forgiveness
  Demonstration Program
• E-Sign Standards Document
• For electronic signatures and electronic student
  loan transactions

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OTHER ACTIVITIES

• Forms Development
• Revised Deferment Forms
• Unpaid Refund Discharge Form
• Revised Mandatory Forbearance Form
• Plus MPN
• Total Permanent Disability Discharge Form
• Teacher and Child Care Forgiveness Application
  and Forbearance Forms

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OTHER ACTIVITIES

• Dear Partner Letters
• Prohibited Inducement
• GA Usage Fees
• Interim year guidance (July 1, 2001-June 30,
  2002) for Total and Permanent Disability

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