# Presentation: 161823

## Boston Summit Borrower Services – Collections Update

- Gary Hopkins
- Director
- Collections Group
- U.S. Education Department

- Boston Summit  August 31, 2004

## Default Portfolio Sizes

**	****	****Combined****	****	****	****GA’s****	****	****FSA**
**FY99 - $27.6 Billion****	****	****$17.3 B****	****$10.3 B**
**FY00 - $28.6 Billion****	****	****$17.0 B****	****$11.6 B**
**FY01 - $28.8 Billion****	****	****$16.9 B****	****$11.9 B**
**FY02 - $29.1 Billion****	****	****$16.4 B****	****$12.7 B**
**FY03 - $29.1 Billion****	****	****$15.1 B****	****$14.0 B**
**FY04 - $30.2 Billion****	****	****$14.3 B****	****$15.9 B****	**
***	***
***	***

- Boston Summit  August 31, 2004

## Default Recoveries

**	****	****Combined****	****	****	****GA’s****	****	****FSA**
**FY99 - $3.7 Billion****	****	****$2.5 B****	****$1.2 B**
**FY00 - $4.6 Billion****	****	****$3.3 B****	****$1.3 B**
**FY01 - $5.1 Billion****	****	****$3.7 B****	****$1.4 B**
**FY02 - $5.1 Billion****	****	****$3.8 B****	****$1.3 B**
**FY03 - $5.4 Billion****	****	****$3.8 B****	****$1.6 B**
**FY05 - $5.6 Billion*****	****	****$3.9 B****	****$1.7 B****	**
***	***
***	*******Projected***

- Boston Summit  August 31, 2004

## Default Recoveries

**FY 04 Totals **(as of July 31)
**GA - $3.12 Billion ****(-3.06%)**
**ED - $1.53 Billion ****(+13.5%)**
**Combined - $4.65 Billion ****(1.83%)**
**	**

- Boston Summit  August 31, 2004

## Default Collections

**Projected Totals for FY04**
**GA - $3.85 Billion**
**ED - $1.75 Billion**
**Combined - $5.55 Billion**
**	**

- Boston Summit  August 31, 2004

## Combined Collection Tool Utilization

- FY2003  Balance of Tools	GA		ED	Combined
- Direct Loan Consolidation	47%		16%	     38%
- Regular Collections		15%		25%	     18%
- Rehabilitation			16%		23%	     18%
- Treasury Offset		10%		25%	     14%
- Wage Garnishment		  8%		  9%	       9%
- FFEL Consolidation		  4%		  2%	       3%

- Boston Summit  August 31, 2004

## Combined Collection Tool Utilization

- FY2004  Balance of Tools	GA		ED	Combined
- Direct Loan Consolidation	44%		10%	     33%
- Regular Collections		14%		24%	     17%
- Rehabilitation			20%		30%	     23%
- Treasury Offset		  9%		25%	     14%
- Wage Garnishment		  9%		10%	       9%
- FFEL Consolidation		  4%		  2%	       3%

- Boston Summit  August 31, 2004

## Conditional Total and Permanent Disability (TPD)

- Common Reject Reasons for GA’s:
- Tape Errors that can’t be corrected
- Assignment Documentation Missing:
- Missing or Unreadable Discharge Application
- Missing Promissory Note
- Missing or Incomplete Condition “begin date”
- Incorrectly Completed fields in assignment form
- Date Changes on Disability Application Form

- Boston Summit  August 31, 2004

## Conditional Total and Permanent Disability (TPD)

- Sample Concerns Received:
- Batch Rejects Appear Arbitrary
- Duplicate Borrower Notification of eligibility or ineligibility
- Request for Information Included in Folder
- Unacceptable Payment Histories
- Documents Misplaced & then Requested
- Assignments on Loans with Co-Makers

- Boston Summit  August 31, 2004

## Summary\Questions

- Gary Hopkins			Sue Szabo
- 202-377-3208			202-377-3437
- Gary.Hopkins@ed.gov	Sue.Szabo@ed.gov
- 	http://www.fsacollections.ed.gov/contractors/

- Boston Summit  August 31, 2004