Understanding FFELP Process Flows - PowerPoint PPT Presentation

Loading...

PPT – Understanding FFELP Process Flows PowerPoint presentation | free to download - id: 20befd-ZDc1Z



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Understanding FFELP Process Flows

Description:

... Promissory ... Promissory Note (MPN) and repayment information with the first disbursement ... The Master Promissory Note. The school needs to know the ... – PowerPoint PPT presentation

Number of Views:27
Avg rating:3.0/5.0
Slides: 12
Provided by: cap92
Learn more at: http://www.masfaaweb.org
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Understanding FFELP Process Flows


1
Understanding FFELP Process Flows
Will Shaffner Keith Broadus Director-Business
Development Technical Consultant MOHELA USA
Funds Services
2
The Master Promissory Note
The school, the lender, or ED must provide the
borrower a copy of the completed Master
Promissory Note (MPN) and repayment information
with the first disbursement of loan funds. Other
notifications such as notification of
disbursement of funds and the right to
cancel. The MPN is a contract for a student loan
between a borrower (a student or a parent) and a
lender (the federal government for Direct Loans,
or participating lenders for FFELs). It can serve
as a multi-year note at all domestic schools,
unless notified otherwise.
3
The Master Promissory Note
  • The school needs to know the following
    information
  • which lender the student has chosen
  • whether the lender participates in electronic
    processing or uses paper processing
  • For electronic processing, the school must know
    where to transmit the loan eligibility
    certification to the lender or to a guaranty
    agency that will process the loan on behalf of
    the lender.
  • For paper processing, the school must know where
    to mail the Federal Stafford Loan School
    Certification.
  • Central Disbursing Agent (CDA) or lender must
    have a signed MPN and a notice of guarantee prior
    to disbursement

4
CommonLine
  • The language/backbone of FFELP processing
  • Implemented in 1995 by the NCHELP Electronic
    Standards Committee as a way to promote common
    file layouts for FFELP processing throughout the
    industry
  • CommonLine 4 is most used file type
  • CommonLine 5 and CommonRecordCommonLine (XML)
  • Most commonly-used CommonLine file layouts
  • Application Send
  • Application Receive
  • Disbursement Roster
  • Change Send/Response
  • CommonLine M (Modification) Record-sometimes used
    in lieu of change files
  • Certification Request (used by lenders)
  • Can also support electronic Alternative Loan
    processing

5
Process Evaluation Whats best for my school?
  • What is your schools overall student service
    philosophy?
  • High-touch, personalized service
  • Student-enabled allow students to serve
    themselves via web and VPN-like applications
  • Does my loan process emulate my schools overall
    student service philosophy?
  • If not, where do we miss the mark?
  • How efficient is my loan process?
  • Is it as streamlined as I think it is?
  • How do I look for inefficiencies?
  • How do I remedy those inefficiencies?
  • Where/how does default prevention and financial
    literacy fit in to our process?

6
Process Evaluation Whats best for my school?
  • Staffing
  • Will staffing needs change as a result of this
    evaluation?
  • How do I manage these changes?
  • Technical Support
  • How much support will I have from my IT/Web
    Master/FAMS vendor if system and web-based
    changes need to be made?
  • Where does my office fit in the campus pecking
    order for IT resources?
  • Whats my timeframe for getting these changes
    implemented?
  • FFELP partners
  • How accommodating will they be to my changes?
  • Am I evaluating my process due to changes
    mandated by them?
  • Other evaluation criteria?

7
School-Initiated Process
4. Notification sent to borrower to complete MPN
via Internet.
1. Notify student of eligibility.
2. Certify loan on FAM system
3. Loan certification sent to guarantor
Guarantor
School
Response file
Response file
5. EFT and disbursement information sent to
school.
Lender
8
Borrower-Initiated Process
1. Notify student of eligibility.
2. Student completes MPN via Internet or paper.
3. Notification of signed MPN sent to school.
4. Loan certification information sent to
Guarantor.
Guarantor
School
5. Response file sent to school and lender.
6. EFT and disbursement information sent to
school.
Lender
9
Guarantor Flow Process
4. Notification sent to borrower to complete MPN
via Internet or paper.
1. Notify student of eligibility.
2. Loan certification information sent to
Guarantor.
Guarantor
School
3. Response file sent to school and lender.
5. EFT and disbursement information sent to
school.
Lender
10
Lender Flow Process
2. Student completes MPN via Internet or paper.
1. Notify student of eligibility.
3. Notification of signed MPN sent to school.
4. Loan certification information sent to Lender.
School
6. EFT and disbursement information sent to
school.
Lender
5. Loan certification information sent to
Guarantor for guarantee. Response file sent to
Lender and school.
Response file
Guarantor
11
Midwest Association of Student Financial Aid
Administrators
Questions?
About PowerShow.com