# Presentation: 699825

## Slide 1

## Session 1

***Late Stage Delinquency Assistance (LSDA)***

## Agenda

- Delinquency Pattern
- How Schools Can Help
- What Tools Can Make it Easy

**Ben LeBorys and John Pierson**
**U.S. DEPARTMENT OF EDUCATION**

## Official Cohort Default Rates

## Makeup of Cohort Rate

## Borrower Delinquency Pattern

## Defaulter Characteristics

- 76% do not get the advantage of their full 6 month grace as the result of late enrollment notification
- 73% have withdrawn from school and did not completed their studies
- 43% have had bad telephone number at the time of default
- 66% have not been successfully contacted by telephone during the 12 months of collection effort

*Data compiled as of 12/31/02*

## Sample Distribution of Potential 2002 Defaulters

## How It Can Work

- Identify the Borrower via the web site
- Contact the Student and contact Servicer for three way calling to resolve the delinquency
- Schools have additional tools to locate Borrowers, i.e. Alumni Association directories
- Servicer will ensure Student is provided assistance
- Phone script available to help provide a guide on how to counsel the Borrower/Student

## Log In Screen

- You can visit either the DLS site at _[www.dl.ed.](http://www.dl.ed.gov/)__[gov](http://www.dl.ed.gov/)_ or the LO site at _[http://lo-online.ed.](http://lo-online.ed.gov/)__[gov](http://lo-online.ed.gov/)_ to login.
- Login access is controlled by the LO Web site.
- After Sept. 2003, login will move to the COD Web site.

## Log In Screen

- Once you have logged in at LO, you will return to the Direct Loan Web site for schools. From here, you will select school reports to access the delinquency reports.

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

## LSDA is for all schools

- In this presentation:
- Direct Loan Schools
- will see actual web-tools
- and
- FFELP Schools
- will see concepts and tools to discuss
-  with lenders and servicers

## Summary Information

- You can see the delinquency status of your student borrowers

## All Detail Information

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

- 99

## Cohort Year Delinquency

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

## 2002 Cohort Year Delinquency Detail

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

## Schools can Help

- Assist the Servicing Center in finding and counseling severely delinquent borrowers
- Schools have options
- Contact the borrower and counsel
- Contact the borrower and transfer to Servicer
- Talking to the borrower makes all the difference

## The Tools

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

## School Services offers assistance options

- Can provide you with scripts on how to counsel the borrower
- Will assist you while on a call with a delinquent borrower
- Will ensure the borrower is assisted after you contact them

## Why Do It ?

- Minimal effort, maximum results	-Helps the Borrower/Student	-Helps the school
- Schools can identify & focus on the most severe delinquencies
- Use the web tools to identify the borrowers you are able to”rescue”
- The Direct Loan Servicing Center is available to assist - School Services: 1-888-877-7658,
-      M-F 8:00 a.m. - 8:30 p.m. EST.
- 	- Loan Counseling: 1-800-848-0981,  available for “off hours”,               M-F 8:30 p.m. - 10:00 p.m. &  Sat. 8:00 a.m. - 5:30 p.m. EST.
- No major investment in time, staff or money
- LSDA really works!!

## Other Resources

- We can email to you:
- A copy of the draft LSDA User Guide for Direct Loan schools
- Software which (using your School Cohort Default Rate History Report) will assist to:
- identify your defaulting borrowers
- identify patterns of default at your institution which is the first step in creating a default prevention plan

## Getting started

- You will need to:
- Get your current pre-claims or delinquency report broken down by delinquency ‘buckets’
- Identify your ‘late stage borrowers’
- Work out a cooperative arrangement with your lender or servicer 	Establish contact information (How they will support your effort?)
- Complete phone calls with borrowers using best servicer or school contact information
-  What’s the best time to call?
- Support borrower to make appropriate arrangements with your servicer
- Remember that you are not a collector
- You are simply trying to help borrowers avoid default

## LSDA Software Demonstration

- Visit our PC Lab for a demonstration on
- the new software tool to effectively manage	your delinquent borrowers
-       By reviewing your delinquency report...

## Questions and Answers

## Contact information

- Ben LeBorys
- Ben.Leborys@ed.gov
- or
- John Pierson
- John.Pierson@ed.gov
- or
- Gil Flores
- Gil.Flores@acs-inc.com