How Direct Loan Servicing is Improving the Financial Aid Experience For You and Your Students

1
Session 49

• How Direct Loan Servicing is Improving the
  Financial Aid Experience For You and Your
  Students
• Presenter Cindy Battle

2
Agenda

• Direct Loan Update
• Facts and Figures
• HERA Update
• Outreach Activities
• Customer Surveys
• Borrower Web Site
• School Web Site
• Direct Loan Servicing Tomorrow

3
Direct Loan Borrower Portfolio
Borrowers Students Alumni Parents As of
August 2006
Total Direct Loan Borrowers
6.4 Million Active Borrowers
4
Call Center Stats

• In 2005, the Direct Loan Servicing Center
  Representatives received almost 6 million
  calls.
• In comparison, from January 2006 through end of
  August 2006, the Direct Loan Servicing Center
  Representatives received a little more than 4
  million calls.

5
HERA Update

• Teacher Loan Forgiveness
• Military Deferment
• False Certification (Identity Theft)
• Rehabilitation of defaulted loans

6
Web Site Benefits
Website Statistics (January August
2006) 14,363,618 - Web Visits 7,563,027 Unique
Web Visits 475,098 - Average Visits Per
Day 49,870 - Pay Plan Changes 33,388 Pay Date
Changes 92,966 General Forbearance
Submitted 17,210 Unemployment Deferment
Submitted 315,222 Entrance Counseling
Sessions 375,180 Entrance Counseling
Schools 90,278 Exit Counseling Sessions 91,115
Exit Counseling Schools
Tangible Benefits Improved customer
satisfaction Online resource referrals Consistency
of information Better educated informed
customer Reduction in turnaround times
7
Borrower Outreach - EDA

• Electronic Debit Account Campaign (EDA)
• Executed an email campaign in Spring 2006 to all
  online borrowers with active e-mails.
• Campaign doubled our EDA enrollments in the month
  the campaign was executed.
• Future plans include an ongoing monthly
  in-grace campaign to those borrowers entering
  repayment.

8
Electronic Services
The Direct Loan Servicing program just celebrated
over 2 billion dollars processed through the web
site since online payments were made available,
not including third party payments.
9
Borrower Outreach - Loan Consolidation

• Loan Consolidation
• Executed an email campaign in Spring 2006 to all
  online borrowers with active e-mails.
• Designed and mailed comprehensive school kit to
  all Direct Loan schools with materials on Loan
  Consolidation.
• Used On-Line Advisor scripts to customize
  messages to borrowers by status.
• Used Web banners and news articles to educate
  borrowers on the benefits of Loan Consolidation.

10
Loan Consolidation Peak Update

• Loan Consolidation
• LC Bookings have increased by more than 85 in
  the two-month period of June/July 2006 compared
  to the same period last year.
• The total June/July 2006 bookings of 298,532
  exceeded the 2005 volume by over 137,000 for the
  same two-month period.

11
Measuring Customer Satisfaction
12
Customer Satisfaction Surveys

• survey is customizable to address key issues
• allows performance to be tracked over time
• allows performance to be benchmarked
• helps identify actions necessary to correct
  performance issues can prioritize improvement
  initiatives

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What Are Our Customers Saying??
I am a little upset that I need to upgrade to a
computer for it to be easier to deal with the
loan repayment process.
I would like to have an electronic message sent
to me if I forget my online password, because I
don't really like to wait for it in the mail
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2006 Borrower Satisfaction Results
Electronic Debit
0.0
Statements
Complaints
1.8
-0.8
Customer Satisfaction
Website
0.2
Confidence
Voice ResponseUnit
3.7
0.7
Score
Call CenterRepresentative
Impact
2.3
15
Satisfaction BenchmarksFederal Government
DL Servicing among the best in the Federal
Government!
16
2006 School Satisfaction Survey
School surveys were conducted this year to
evaluate satisfaction through phone, email and
web sites.

• 5 point scale
• 5 Extremely Satisfied
• 4 Very Satisfied
• 3 Satisfied
• 2 Neither Satisfied nor Dissatisfied
• 1 Dissatisfied
• NA Not Applicable

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School Survey Highlights

• 59.9 of Schools said they were Extremely
  Satisfied or Very Satisfied with the service
  they received
• 33.5 of Schools said they were Satisfied with
  the service they received
• Only 6.6 said they were Neither Satisfied nor
  Dissatisfied or Dissatisfied with the service
  they received
• More than 93 of the schools were satisfied, very
  satisfied or extremely satisfied with the service
  they received

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Questions with Highest Responses

• Website - 3.94
• How satisfied/dissatisfied were you with the
  availability of the Website?
• Phone - 3.86
• How satisfied/dissatisfied were you with the
  timeliness of responses to your call?
• Overall Experience - 3.80
• How satisfied/dissatisfied were you with the
  overall performance of the Direct Loan Servicing
  Center, School Services Group?
• Phone - 3.78
• How satisfied/dissatisfied were you with your
  overall experience calling the Schools Servicing
  Center?

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Questions with Lowest Responses

• Students Experience (Servicing Center) 3.35
• How satisfied/dissatisfied were your students
  that the CSR handled the issue in one call?
• Students Experience (Servicing Center) 3.36
• How satisfied/dissatisfied were your students
  with the knowledge of the CSR?
• Students Experience (Servicing Center) 3.37
• How satisfied/dissatisfied were your students
  with the follow-up promised during their call?
• Website 3.37
• How satisfied/dissatisfied were you with the
  Help function of the Website?

20
Direct Loan Servicing Web Site

• For Borrowers - http//www.dl.ed.gov
• Real Time Account Information
• Online Transaction Processing - Borrower
  Self-Service
• Online Counseling and Rules Based Messaging
• Interactive Pre-qualifier for Deferment and
  Forbearance Requests including online submission
  with eSignatures
• Online payments
• Electronic Mail Services
• EDA Enrollment
• Online Calculators
• Online Surveys
• For Schools - http//www.dl.ed.gov/schools
• Student Account Lookup
• Online Reports Portfolio, Delinquency and
  Counseling
• Complete Question Center

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Borrower Web SiteHomepage

• Key Features
• Highly Secure
• PIN protected
• Data encryption
• Section 508 Compliant for borrowers with
  disabilities
• English/Spanish option for entire site
• Winner of multiple prestigious awards
• Online Tour tutorial to aid borrowers in using
  site
• Search Feature Site Map help borrowers find
  what they need quickly

22
Borrower Web SitePersonalized Online Messages

• Key Features
• Personalized messages are displayed to borrowers
  based on their account status and other
  information.
• Messages include information about last and next
  payment, options for delinquent borrowers, and
  special information as the need arises.

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Borrower Web SiteReal Time Account Information-
Account Summary

• Key Features
• Account Balances - Borrowers can see their total
  student loan indebtedness in one place.
• Direct Loan Balances
• Total Indebtedness (FFEL and Perkins loans from
  NSLDS)
• Last Loan Payment Borrowers can confirm the
  date and amount of their last payment on the
  Account Summary page.

24
Borrower Web SiteReal Time Account Information
Payment History

• Key Features
• Payment History -Complete Record of all payments
  ever made by the borrower
• Payment Type Online, Main, EDA, etc.
• Breakdown of Payment into Principal, Interest or
  Fees

25
Borrower Web SiteReal Time Account Information
Document Retrieval

• Key Features
• Electronic Promissory Note Retrieval
• Borrowers who use eSignatures for promissory
  notes can retrieve a copy of their promissory
  note online at any time.

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Borrower Web SiteCustomer Self Service Change
Repayment Plans

• Key Features
• Borrowers can change their Repayment Plans online
  as their circumstances change.
• Borrowers can view amortization plans for the
  different repayment plans before they make
  changes.

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Borrower Web SiteCustomer Self Service Change
Payment Due Dates

• Key Features
• Borrowers can change their Payment Due Dates
  online as their circumstances change.
• This can help reduce delinquency by customizing
  payment options for the borrower.

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Borrower Web SiteOnline Form Submission

• Key Features
• Forms that a borrower may need are available for
  downloading from the DLS Web site.
• Borrowers can determine immediately if they
  qualify for deferment or forbearance of their
  payments through online interactive sessions.
• Borrowers can submit Unemployment Deferment and
  General Forbearance applications online using
  eSignatures.

29
Borrower Web SiteOnline Payments

• Key Features
• Borrowers can schedule payments for up to six
  months in advance, schedule recurring payments,
  store multiple bank accounts, and receive email
  reminders.
• This saves time and money in postage for the
  borrower.

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Borrower Web SiteElectronic Mail Services

• Key Features
• Borrowers can choose to receive their bills and
  correspondence online instead of in paper through
  the mail.
• Benefits for borrowers who receive their
  information electronically, include security,
  speed, and convenience.
• Electronic billing and correspondence help the
  environment by reducing the volume of paper we
  mail out each year.

31
Borrower Web SiteInterest Capitalization
Estimator

• Key Features
• The Interest Capitalization Estimator helps
  borrowers understand the effects and consequences
  of capitalized interest on their loans as a
  result of deferred payment either during school
  or in repayment.
• After choosing the reason for deferring payment
  and the end date, borrowers are provided with the
  amount of interest that will accrue and the total
  increase in the amount they will repay over the
  life of loan.

32
Borrower Web SiteOnline Entrance Counseling

• Key Features
• Borrowers are explained their rights and
  responsibilities as a Direct Loan borrower
  through online counseling.
• In order to successfully complete a session,
  borrowers must pass a quiz.
• Before their loans are disbursed students take
  Entrance Counseling.

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Borrower Web SiteOnline Exit Counseling

• Key Features
• Borrowers are explained their rights and
  responsibilities as Direct Loan borrowers through
  online counseling.
• In order to successfully complete a session,
  borrowers must pass a quiz.
• Borrower can change their repayment plan, due
  date, enroll in EDA, and update address
  information.
• After borrowers separate from school, they take
  Exit Counseling online before they go into
  repayment.

34
School Services Support

• School Report Statistics
• 208 schools subscribe to Exit Counseling Reports
• 313 schools subscribe to a Entrance Counseling
  Reports
• 194 schools subscribe to a monthly Delinquency
  Summary Report
• School Services Call Center Statistics
• Roughly 75 of all Direct Loan School Services
  calls are request for student account
  information
• The remainder of calls are questions regarding
  web site information, school reports or general
  program questions.

35
School Web SiteHomepage
36
School Web SiteReport Subscription

• Key Features
• Direct Loan Schools may subscribe to have reports
  on their student activity sent to them regularly.
• Reports with personal borrower information are
  sent via secure connections to ensure privacy of
  borrower information.

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• Key Features
• Direct Loan Schools may look up borrower
  information in the Direct Loan Servicing System.
• School financial aid officers can view repayment
  estimates for students.
• These tools provide schools with the ability to
  better counsel their students about their Direct
  Loans.

School Web SiteStudent Account Lookup
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School Web SiteReporting
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School Web SiteEntrance and Exit Counseling

• Real time access to results
• Electronic Report Delivery with frequency
  determined by school daily, weekly
  or monthly
• Ability to export data into format of school
  choice

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School Web SiteDelinquency Reports

• Key Features
• Online Delinquency Reports allow Direct Loan
  Schools to track their delinquency rates and
  identify borrowers who are delinquent in making
  payments.
• FSA is working with schools to utilize online
  delinquency reporting to lower their cohort
  default rates.

41
Direct Loan Servicing Tomorrow

• Students
• Borrower Web Chat Allows borrowers to securely
  chat with CSRs during normal business hours
  though the web site.
• eMinders Ability for a borrower to subscribe to
  email alerts when certain events happen on their
  account. Payment posted, forbearance or deferment
  form received.

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Borrower Web SiteNew Look n- Feel
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Questions Contact Us
Cindy Battle [phone] Email
Cynthia.Battle_at_ed.gov School Services (888)
877-7658 Direct Loan Servicing Center (800)
848-0979