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Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved. 1 July 17, 2012 DEPARTMENT OF EDUCATION LOAN SERVICES WFAA Summer.

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Presentation on theme: "Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved. 1 July 17, 2012 DEPARTMENT OF EDUCATION LOAN SERVICES WFAA Summer."— Presentation transcript:

1 Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved. 1 July 17, 2012 DEPARTMENT OF EDUCATION LOAN SERVICES WFAA Summer Workshop Anthony Lombardi

2 Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved. 2 2 Sallie Mae Does Everything To Help Students Succeed and Effectively Pay Back and Manage Their Loans Department of Education Loan Services

3 Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved. 3 ► Contacting Us & Resources for Schools ► Resources for Borrowers ► Loan Servicing Overview ► Default Prevention ► Current Hot Topics ► Questions & Next Steps Today’s Agenda- Department of Education Loan Services

4 Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved. 4 4 Contacting Us and Resources for Schools Department of Education Loan Services

5 Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved. 5 Contacting Us Department of Education Loan Services CollegeServ ► Answers questions, provides assistance & reports ► Answers cohort agency status questions ► Provides training and support for OpenNet Sallie Mae keeps schools informed through: , CollegeServ call center representatives, Our “Servicing” Website, Sales and ED Contract Management Meetings, Training Webinars, OpenNet, and as part of our participation at over 40 financial aid conferences each year. CollegeServ

6 Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved. 6 Contacting Us Department of Education Loan Services Sallie Mae-Dept of ED Loan Services NSLDS Servicer Code: Student and Parent Phone ED: Student and Parent Line Commercial: 888-2SALLIE ( ) Hours: M-TH 8:00am – 9:00pm F 8:00AM – 8:00PM (EST) Web: CollegeServ: Dedicated group of representatives specifically trained to support Sallie Mae's school customers for all ED and non-ED related inquiries School Phone: 888-2SCHOOL ( ) Hours: M-F 8:00am – 8:00pm (Eastern Time) Web: and

7 Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved. 7 Resources for Schools - OpenNet Department of Education Loan Services OpenNet – school portal for borrower and loan inquiries ► See our OpenNet training page as it has a mix of videos and documents covering topics like Adding/Updating a school user, the servicing guide, Granting access to users (under servicing), Contact Information, and the FAQ. We also have user guides and info on DDI Reports. ► ED-only: https://www1.salliemae.com/content/doe/docs.html https://www1.salliemae.com/content/doe/docs.html

8 Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved. 8 8 Resources for Borrowers Department of Education Loan Services

9 Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved. 9 Customer Communication: Early Outreach  We provide helpful, relevant and easy to understand Information on how to:  Manage their loan account on-line, via the IVR or by a Service Representative  Take advantage of Electronic Servicing (monthly billing, auto debit, ) options that can save money (ACH benefit on all ED-owned loans)  Change to one of many repayment options that best suit their situation  Receive payment relief  Maintain the benefits of good credit  Our Interactive Web Portal “SallieMae.com/BeDebtSavvy” helps students:SallieMae.com/BeDebtSavvy  Budget for college and repayment  Understand what credit scores and FICO are  Become more aware of issues with credit card debt  Understand the flexibility and benefits of the many loan repayment options 9

10 Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved. 10 Customer Communication: Quarterly Interest Statement 10 Confidential and proprietary information © 2010 Sallie Mae, Inc. All rights reserved.  Sent to customers until their accounts enter Repayment  Includes interest information, loan balance, and anticipated repayment begin date  Includes remit slip for customer convenience in case they choose to pay interest early to avoid capitalization  Includes information on benefit of paying interest:

11 Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved. 11 Customer Communication: Exiting School 11 Confidential and proprietary information © 2010 Sallie Mae, Inc. All rights reserved.  Key messages – Automatic debit – Update address and phone – How to make payments

12 Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved. 12 Customer Communication: Early Repayment Sample 12 Confidential and proprietary information © 2010 Sallie Mae, Inc. All rights reserved.  Key messages – Where to get answers – Planning for successful repayment – Online account access – How much do I owe

13 Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved. 13 Customer Communication: Monthly Billing Statement 13 Confidential and proprietary information © 2010 Sallie Mae, Inc. All rights reserved. Provides critical account details Links to online account features Provides relevant messages to help borrowers at critical times in the loan life-cycle to better manage their account Provides slip to return with payment

14 Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved. 14 Customer Relationships: On-Line Tools  Login easily accessible L OG ON VIA WWW. SALLIEMAE. COM WWW. SALLIEMAE. COM 14

15 Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved. 15 Account Summary & Transaction Overview  Account Summary provides: – Loan Balance – Interest (capitalized and accrued) – Total amount owed – Past due amount – Late fee(s) N/A for ED – Payment Amount – Due Date – Loan Advisor/Messages – Navigation to view correspondence, last three payments, on-demand printing, and any borrower benefits – Other Transactions 15

16 Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved. 16 Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved. 16 Loan Servicing Overview Department of Education Loan Services

17 Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved. 17 Loan Servicing Department of Education Loan Services Loan Booking In SchoolIn GraceRepayment Delinquency and Default

18 Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved. 18 Loan Booking  Assignment Department of Education Loan Services When and how is the servicer assigned? ► FSA designates the servicer upon the booking of the loan. Booking occurs when COD accepts an origination record, links to the prom note and accepts actual disbursement. ► New borrowers are assigned to Sallie Mae, Great Lakes, FedLoan, or Nelnet based upon percentages assigned by FSA. ► Borrower Mailed a Welcome Letter within 24 hours of Loan Conversion to our System

19 Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved. 19 Loan Booking  Borrower Notices Department of Education Loan Services How do I know which servicer is servicing my loans? ► When a Direct Loan is assigned to a federal loan servicer, the servicer corresponds with the borrower. ► The welcome correspondence notifies the borrower of the servicer, toll-free phone number, and website information. ► Borrower may visit NSLDS.ed.gov to identify their federal loan servicer(s). ► Forgot the PIN? Visit PIN.ed.gov

20 Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved. 20 In School  Interest Payments Department of Education Loan Services How do I make interest payments on my unsubsidized loans while I’m in school? ► Stafford borrowers can securely access their account and make a payment on at any time. ► Sallie Mae sends quarterly interest statements* while in school or grace. * is the only option for these notices.

21 Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved. 21 Grace Period  Deferred Repayment (PLUS) Department of Education Loan Services When must I begin repayment on my loan? Do I get a grace period? ► Stafford Loans: 6-month grace period begins the day after they graduate, leave school, or drop below half-time status. Payments are due after the grace period ends. ► Grad PLUS: Borrowers can postpone payments while enrolled at least half time. May also postpone payments for the 6 months after they graduate, leave school or drop below half time (for loans first disbursed on or after July 1, 2008). ► Parent PLUS: Can request to postpone payments while the student for whom they obtained the PLUS Loan is enrolled at least half time. May also request to postpone payments for the 6 months after the student is no longer enrolled at least half time (for loans disbursed on or after July 1, 2008).

22 Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved. 22 Grace Period  Entering Repayment Department of Education Loan Services What are the most important things a student should know as he/she prepares for loan repayment? Important messages for borrowers as they are leaving school and entering repayment: ► Check NSLDS to identify all federal loans ► Provide servicers with updated contact information ► Sign up for online account access ► Sign up for automatic debit to ensure timely payments and receive a 0.25% interest rate reduction ► Call the servicer or visit servicer’s website to obtain information on repayment options that best meet the borrower’s financial situation. Sallie Mae offers robust payment plan modeling tools and easy on- line sign-up for repayment plan options. ► Understand that servicers are there to help!

23 Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved. 23 Repayment  Deferment Department of Education Loan Services Can I provide my servicer one deferment form for my ED held FFEL and DL loans? ► As a general rule, the FFEL or Direct Loan Program deferment form is acceptable for all deferment requests for federally-owned loans. ► In some cases, a FFEL form must be used for FFEL program loans and a DL form for Direct Loans.

24 Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved. 24 Repayment  Billing Department of Education Loan Services Payment Fees? Late Fees? ► No fees on payment methods ► No late fees ► No fees on any other activities associated with the servicing of federally-owned loans

25 Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved. 25 Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved. 25 Default Prevention Department of Education Loan Services

26 Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved. 26 Graduation Lessens the Chance of Default Source: Education Sector, Degreeless in Debt

27 Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved. 27 Focus on The Customer Experience Customer Resolution Services ► Our Collections Staff encourages and supports staff with coaching and development based on the following key components: –Delinquency Resolution –Counseling –Customer Experience –Compliance ► Quality directly impacts our staff providing a vested interest to consistently provide our customers with world class service. ► Management completes a minimum of 4 random monitors per month for each agent. ► Collection’s senior management conducts frequent group listening sessions each month to ensure consistency and gain a clear understanding of the impacts to our customer base.

28 Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved. 28 Technology Used in the Our Business Customer Resolution Services ► Sallie Mae Servicing Systems –CARES – Graphical user interface presents account information to agents in an easy to use format –CLASS Servicing System - All account activity is documented in this Sallie Mae system of record System logic ensures all due diligence activity is completed as required ► Auto-Dialer –Blended auto-dialer environment with capability for high volume calls ► Collection Strategy –Strategy team provides ongoing analysis and modeling for all stages of delinquency –Strata decision engine used to assign delinquent accounts to strategic dialing campaigns –Targeted letter, , and text message campaigns ► Vendor Activities –The skip tracing division’s process is enhanced with the use of CLASS automation that enables import transactions with commercial vendor batch data ► Quality Monitoring –NICE – Call monitoring system used to record calls for training and quality feedback purposes

29 Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved. 29 Contacting the Borrower Customer Resolution Services ► Sallie Mae’s collection practices are designed to maintain and exceed, at all times, the student loan collection standards set forth by the U.S. Department of Education. ► Upon reaching the 15 th day of delinquency, intensive default prevention campaigns are executed by Customer Resolution Services. ► Collection activities are performed at the borrower level. For borrowers who have a combination of loan types or guarantee agencies, collection activities are no less rigorous than the most stringent guarantee agency’s requirements.

30 Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved. 30 Collections Due Diligence and Calling Strategy (Collection Strategies and Activities are Subject to Change) Customer Resolution Services ED Owned 360 Tel = 2-3 days UPS 330 ~ 330 Dedicated Collector assigned ED Owned 360 Tel = 2-3 days UPS 330 ~ 330 Dedicated Collector assigned

31 Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved. 31 Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved. 31 Hot Topics Department of Education Loan Services

32 Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved. 32 ► Income Based Repayment Options ► Serial Transfers ► Special Direct Consolidation Loan Opportunity ► Interest Capitalization ► Forbearance – 36 month continuous cap ► Cohort Default Rates ► CDR Appeals Hot Topics

33 Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved. 33 Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved. 33 Questions? Customer Resolution Services

34 Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved. 34 CollegeServ Anthony Lombardi Contacts


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