# Presentation: 777522

## FFELP UPDATE FOR SCHOOLS

- Mark Putman
- NCHELP

***Session 8***

## FFELP UPDATE FOR SCHOOLS

**Collaborative Efforts**
- Common Record: Commonline
- Meteor
- Meteor and Mapping Your Future
- TERP
- School Advisory Group
- What’s on the Horizon...

## FFELP UPDATE FOR SCHOOLS

**Collaborative Efforts**
- Common Record: CommonLine
- Background
- Goal
- Technology
- Progress

## FFELP UPDATE FOR SCHOOLS

**Collaborative Efforts**
- Meteor
- What is Meteor
- Version 3.0
- Student Access
- Comprehensive Report Screen
- Customer Service Comprehensive Screen

## FFELP UPDATE FOR SCHOOLS

**Collaborative Efforts**
- Meteor & Mapping-Your-Future
- Disaster Recovery & Business Resumption
- Collaborative exploration for better service to students
- Visit us at NASFAA

## FFELP UPDATE FOR SCHOOLS

**Collaborative Efforts**
-  TERP – Total Enrollment Reporting Process
- Offered by the National Student Clearinghouse (NSC)
- NSC would be a servicer for Guaranty Agencies to fullfill the GA responsibility of providing enrollment data to lenders and lender servicers

## FFELP UPDATE FOR SCHOOLS

**Collaborative Efforts**
- NCHELP Electronic Standards Committee
- School Advisory Group
- Provides school counsel and experience on electronic initiatives and planning
- School Summit provided explanation of ESC efforts to encourage participation
- See our website
- _[www.](http://www.nchelp.org/committees/e_standards/ESCSchoolAdvisoryGroup/elecstradvgrp.htm)__[nchelp](http://www.nchelp.org/committees/e_standards/ESCSchoolAdvisoryGroup/elecstradvgrp.htm)__[.org/committees/e_standards/](http://www.nchelp.org/committees/e_standards/ESCSchoolAdvisoryGroup/elecstradvgrp.htm)__[ESCSchoolAdvisoryGroup](http://www.nchelp.org/committees/e_standards/ESCSchoolAdvisoryGroup/elecstradvgrp.htm)__[/](http://www.nchelp.org/committees/e_standards/ESCSchoolAdvisoryGroup/elecstradvgrp.htm)__[elecstradvgrp](http://www.nchelp.org/committees/e_standards/ESCSchoolAdvisoryGroup/elecstradvgrp.htm)__[.](http://www.nchelp.org/committees/e_standards/ESCSchoolAdvisoryGroup/elecstradvgrp.htm)__[htm](http://www.nchelp.org/committees/e_standards/ESCSchoolAdvisoryGroup/elecstradvgrp.htm)_

## FFELP UPDATE FOR SCHOOLS

**Collaborative Efforts – What’s on the Horizon...**
- Data Transport Standards
- NCHELP ESC and its Advisory Teams, ED FSA, FAMS Providers, ELM and others
- Identify common, open source tools and protocols to meet community needs for batch file and XML based real-time data flow to set a standard

## FFELP UPDATE FOR SCHOOLS

**Collaborative Efforts - What’s on the Horizon...**
- Document Imaging
- Standardized Format
- Common Transport Method
- E-Signature
- Developing standards for “after” the signature
- Trading Student Data
- Financial Aid, Admissions, Registrar
- Guarantors, Lenders, Servicers

## Technical Assistance

- We appreciate your feedback and comments.  We can be reached at:
- Phone:	202 822-2106
- Fax:	202 822-2142
- Email:	jmartin@nchelp.org
- 			mputman@nchelp.org

## FFELP Update for Schools

- FSA Financial Partner Services

## Organizational StructureFederal Student Aid

## Financial Partner Services

- Partner Services Group
- NSLDS
- Partner Systems Group
- State Agency Liaison

## Financial Partner Services

- Eastern Region
- New York, Boston
- Northern Region
- Chicago
- Southern Region
- Dallas, Atlanta
- Western Region
- San Francisco

## Financial Partner Services Regional Office Responsibilities

- Implementation and oversight of program and financial reviews
- Provide technical assistance
- Identify and analyze major issues
-  Develop national priorities, goals, and guidelines for stability monitoring

## Financial Partner Eligibility

**Form of Oversight**
-  On-Site program compliance reviews of Guaranty
-     Agencies by  Financial Partners (comprehensive or
-     focused)
-  On-Site program compliance reviews of Lenders/
-     Servicers by Guaranty Agencies and/ or Financial
-     Partners (comprehensive or focused)
-  Review of 3rd party Lender/ Servicer audits
-  Review of Guaranty Agencies annual  financial
-     statements
-  Investigations

**Additional Indicators for Intervention**
-  Change in legal requirements
-  FP Data Mart, Scorecards
-  FSA Ombudsman and other complaint resolution
-  Cohort Default Rates
-  OIG investigation or instruction
-  Forms 2000 or LAP/LARS anomalies
-  NSLDS monthly benchmark reporting
-  GAO Studies

**FSA Financial Partners**

**Lenders**

**Guaranty Agencies**

**Servicers**

**Financial Partner Eligibility**
***Oversight and Monitoring***

## Financial Partner EligibilityOverview of Responsibilities

- Compliance Reviews
- Review of Data Anomalies
- Annual Audits and Financial Statements
- Training and Partnership
- Lender Application Changes

## Financial Partner EligibilityOverview and Monitoring

| Financial Partners 
(FY03) |  |
| --- | --- |
| Active Lenders | 3,734 |
| Guaranty Agencies | 36 |
| Secondary Mkt Lenders | 33 |
| Loan Servicers | 41 |
| TOTAL | 3,844 |

## Financial Partner EligibilityOverview and Monitoring

| Activity | FY02 | FY03 |
| --- | --- | --- |
| FP Program Review of GA and Lenders | 387 | 539* |
| Lender Reviews by GA | 225 | 332 |
| Review of GA Financial Statement Audits | 36 | 36 |
| Review of Lender Audits | 329 | 206 |
| Review of Servicer Audits | 34 | 35 |

** **-   498 Lender, 18 GA, 23 Servicers*

## Review FindingsLender/Servicer Findings

- NSLDS Reporting Discrepancies
- Incorrect Interest Calculations
- Inadequate Due Diligence in Collections
- Incorrect Separation Date Information

## Review FindingsGuaranty Agency Findings

- Inadequate Disaster Recovery Plan
- Improper Use of Restricted Funds
- Account Maintenance Fees
- Default Aversion Fees
- Minimum Cash Reserve Ratios
- Incorrect Separation Date Information

## FFELP Update for Schools

- FFELP Value Added Service and Trends

## Technical Assistance

- We appreciate your feedback and comments.  We can be reached at:
- Judy Martin:
- Phone:	202 822-2106
- Fax:	202 822-2142
- Email:	_[jmartin@nchelp.org](mailto:jmartin@nchelp.org)_
- Ann Maria Fusco:
- Phone: (212) 264-8143
- Fax:     (212) 637-0772
- Email:  _[ann.maria.fusco@ed.gov](mailto:ann.maria.fusco@ed.gov)_
- Conwey Casillas:
- Phone: (202) 466-8621
- Fax:     (202) 466-8643
- Email:  _[ConweyC](mailto:ConweyC@EFC.org)__[@EFC.org](mailto:ConweyC@EFC.org)__[ ](mailto:ConweyC@EFC.org)_