# Presentation: 415127

## Session 22

- Peeling the Onion
-  On Complex Federal Student Aid Questions and Complaints
- Debra Wiley
- C. Michael Turpenoff

## Peeling the Onion on Complex Federal Student Aid Questions and Complaints

- A Review of ...
- The Federal Student Aid Customer Experience
- and
- How the Federal Student Aid Ombudsman Resolves Inquiries

## Peeling the Onion – First Peel

**1-800-4FEDAID**
**Tens of Millions of Contacts Each Year**

## Peeling the Onion – Second Peel

**Specialty Call Centers**
*** Default Resolution Group**
*** Federal Direct Loan Servicing Center**
*** Federal Direct Loan Consolidation Center**
*** Conditional Disability Discharge Unit (CDDU)**
*** ****National Student Loan Data System**
**Millions of Contacts Each Year**

## Peeling the Onion – Third Peel

**Escalated Contacts**
**Tens of Thousands of Contacts Each Year**

**Congress**

**White **
**House**

**Secretary**

**FOIA/**
** ****Privacy**
** ****Act**

**Chief**
** ****Operating**
** ****Officer**

**Policy**
** ****Liaison &**
** ****Implementation**

## Peeling the Onion – Fourth Peel

**Federal Student Aid Ombudsman**
**(created by Higher Education Act Amendments of 1998)**
**Thousands of Contacts**
**Each Year**

## Ombudsman Operating Principles

- An impartial, confidential resource
- Available after other customer service avenues have been unsuccessful
- Does not force solutions, mandate actions, or reverse decisions
- Works cooperatively with others to resolve problems

## Ombudsman Process

- Listen – to both sides of the story
- Research – find factual information
- Document – contacts, activities, & findings
- Develop – options for resolution
- Report – problems, trends, and recommend change

## The Common Case Themes?

- Procedural:
- Informational:
- Interpretive:
- Exploratory:
- Exception:

- How do I...?
- Where do I...?
- Does this mean...?
- What can I do...?
- What can you do...?

## Customer Profiles

**Unknowing**

**Unable**

**Unwilling**

## The Federal Student Aid Ombudsman Approach

**Customer description of the problem & what will resolve it**

**Facts-gathering conversations with the customer, school,       loan holder, guaranty agency, referring office**

**Need full history of all aspects of the problem (enrollment verification, loan servicing history, and correspondence)**

**Within law and regulation  (What can happen vs. what can’t)**

**Summarize outcome so that all involved understand what will happen, when, and why**

## Case Sample #1 – Initial Intake

- On July 17, I received an e-mail from my lender stating that my loan is in forbearance.  I did not request a loan forbearance.
- 	The e-mail did not list contact information; I could not even readily find contact information on the lender’s website.  I finally found a number I could call, and I get a different answer from each person that I talk with.
- 					(continued)

## Case Sample #1 (continued)

- On July 18, I mailed a check to pay off my loan principal.  On July 27, the lender still had not received my check.  On July 28, I wrote a letter to my lender for help.  Now, I find out that I had interest accrue during the forbearance.  As of today (August 29), I have not received a response.  I plan to resume classes in the Fall.  I am worried about my credit rating.  I want my loans reclassified.  Help!

## Next Process Steps?

You be the Ombudsman

**You be the Ombudsman**

## Case Sample #2 – Initial Intake

- I was going to nursing school at the time I broke my neck in February 1997.  I also have many other medical conditions.
- 	My guaranty agency (GA) told me to file a Total and Permanent Disability Loan Discharge.  My doctor completed the form in 2001.  After waiting months, the GA told me that they did not get this form, so I had my doctor complete another form in 2002.  			(continued)

## Case Sample #2 (continued)

- In 2003, my GA sent a letter to the doctor requesting verification of my disabilities.
- 	My doctor then indicated my disabilities as partial.  I am currently taking 15 medications, and can only be up 6 hours a day.  I changed doctors due to long office waits and office location.  I need help.  The system was designed so someone in my condition could get relief, but I cannot if nobody approves the request.

## Next Process Steps?

You be the Ombudsman

**You be the Ombudsman**

## Case Sample #3 – Initial Intake

- During my last semester of high school, I also went to night school at a career college.  The college told me I needed to get better English and computer skills for an internship so I could graduate.  When I went back to the college, it was closed.  I am on disability income, but I think I can work in the future.  I get some help from the state but I need to get a grant.  What can I do?

## Next Process Steps?

You be the Ombudsman

**You be the Ombudsman**

## Case Sample #4 – Initial Intake

- 	I requested that my lender consolidate my loans in mid-June.  The loans were consolidated after July 1.  I called the loan servicer, and they told me to continue to make payments as usual.  I just received a letter showing an increased interest rate, increased payment amount, and my account is past due.  Therefore, I called the loan servicer to complain, and they pretty much told me “too bad”.
- 					(continued)

## Case Sample #4 (continued)

-  	I was told that if I did not pay the higher amounts, I would be reported to collections and have a negative credit report.  They did offer to suspend all of my payments, but that seemed ridiculous since I do want to pay my initial obligation.  I believe I was poorly treated.  What are my options?  Why was my interest rate higher?  Can my late fees be removed?

## Next Process Steps?

You be the Ombudsman

**You be the Ombudsman**

## Washington D.C. Contact Information

- Debra Wiley, Ombudsman
- Richard Kurtz, Case Management Reporting Officer
- C. Michael Turpenoff, Operations Officer
**Telephone:  (202) 377-3800**
**Facsimile:  (202) 275-0549**
**Website:  www.ombudsman.ed.gov**
**E-mail:**  debra.wiley@ed.gov    richard.kurtz@ed.gov    mike.turpenoff@ed.gov

## Washington D.C. Ombudsman Specialists

- Thad Bartkowiak
- Connie Jesse
- John McDade** **
- Pamela Scott

- Lynel McFadden
- Melissa Lewis
- Russell Trujillo

- Contact Information
**Telephone:  (202) 377-3800**
**Facsimile:  (202) 275-0549**
**E-mail:  fsaombudsmanoffice@ed.gov**