# Presentation: 679902

## <date/time>

## 			Session 15

**Direct Loan **
**Servicing Site Tool**

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## Goal

**Introduce The Direct  Loan**
**	****	****Late Stage Delinquency Assistance Initiative**

***     ******It’s New!      It Works!***

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## Agenda

- Direct Loan Statistics
- Delinquency Pattern
- Defaulter Characteristics
- How Schools Can Help
- What Tools Can Make it Easy

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## Direct Loan Statistics

**As of January 2002 we had:**
- 39,651,143 Direct Loans disbursements to date
- 5.7 million “active” borrowers
- An active portfolio valued at $72 billion
- 75 million payments collected to date
- Payments valued at $15.9 billion to date
- 471,091 borrowers actively using EDA

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## Default Rate Trend

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## Borrower Delinquency Pattern

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## Makeup of Cohort Rate

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## Defaulter Characteristics

- 82% do not get the advantage of “aging through” their full 6 month grace as the result of late enrollment notification
- 67% have withdrawn from school and did not complete their studies
- 40% have bad telephone numbers
- 71% have not been successfully contacted by telephone during the 12 months of collection effort

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## Schools Can Help

- Assist the Service Center in finding and counseling severely delinquent students
- Contact the student and counsel them on their rights, benefits, and responsibilities
- Contact the student and transfer to Servicer or have a three way conference*Talking to the student borrower makes all the difference*

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## The Tools

- Direct Loan Web Site gives you the flexibility to identify the student borrower population you want to work
- School Services is your point of contact to provide assistance to the borrowers’ needs call 1-888-877-7658

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## With the Web Site you can see as little or as much as you want

- The Web Site offers you summary and detail information about delinquent borrowers

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## Summary Information

- You can see the delinquency status of your student borrowers

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## Detail Information

- You can elect to see detail of all borrowers in the 271-360 days delinquent category

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## Cohort Year Delinquency

- You can elect to see severely delinquent borrowers for a selected cohort year

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## Cohort Year Delinquency Detail

- You can work as little or as much as you want

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## School Services offers assistance options

- Can provide you with scripts on how we counsel your student borrower
- Will assist you while on a call with a delinquent borrower 1-888-877-7658
- Will ensure the student is given assistance after you contact them

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## Why Does This Work?

-  **It’s easy to see**  the need to assist with late stage
-      delinquency
-   Schools don’t need to wade through every delinquent
-      student
-   Use the web tools to identify the accounts you are
-      able to help collect
-   Minimal effort, maximum results
-   Service Center is available to assist
- 1-888-877-7658
-   No financial or contractual commitment

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##   Contact information:

**John Pierson****SFA School Relations****Telephone: 404-562-6269****Email: John.Pierson@ed.gov**
**or**
**Ben Leborys**
**Direct Loan Repayment**
**Telephone: 202-377-3271**
**Ben.Leborys@ed.gov**

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## QUESTIONS ?
Who is willing to start ?

*Who is willing to start ?*

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