Live Green CAFAA 2012 Incorporating NSLDS Reports into Default Management Presenters: Nick Burrell and Lou Melucci

University Statistics University of Colorado-Boulder Financial Figures: –$1.17 Billion Annual Budget –$380 Million in Sponsored Research –$590 Million Endowment Enrollment : –25,000 Undergraduate –5,000 Graduate

Office of Financial Aid Statistics Office Structure: –36 Full-Time Staff –4 Administrative Staff –7 Scholarship & Student Employment Staff –12 Client Services Staff –13 Operation Staff Financial Aid Disbursed 11-12: $328 Million Cohort Default Rate: –2 year: 3.5% –3 year: 3.6%

Agenda Types of NSLDS Reports: –Delinquent Borrower Report –Loan Record Detail Report (LRDR) How we Review these Reports Student Communications Brainstorming FSA Assessments Resources

Overview of Default Management Early Stages of Enrollment Late Stages of Enrollment Enhanced Entrance and Exit Counseling After Students Leave

Cohort Default Rate A school’s cohort default rate is the percentage of a school’s federal student loan borrowers who enter repayment within the cohort fiscal year (denominator) and default (numerator) within the cohort default period.

Delinquent A student becomes delinquent after failing to make a required payment by the due date and will remain delinquent until the account is made current.

Default If you fail to meet the terms of your loan and make your scheduled payments, your loan will eventually go into default. After you are 270 days delinquent, your lender can file a claim with the guarantor of your student loan(s). This means that the guarantor will pay the money you owe to your lender. The guarantor will then be responsible for collecting your loan on behalf of the federal government through a variety of options.

Delinquent Borrower Report Options Fed Loan Servicer Cohort Year Days Delinquent Extract Type Sort By Message Class: AHSLDSOP

NSLDS Report Screen

CU-Boulder Report Choices ID: DELQ1 Type: Report Cohort Year: Blank Returned Population: –31 – 89 Days Delinquent –210 – 269 Days Delinquent Extract Type: Comma Delimited Sort By: SSN

Results of the Report Name, SSN, Address, Type of Loan, Servicer, Servicer phone number Total balance, Estimated monthly payment Number of Delinquent borrowers between days: 181 Number of Delinquent borrowers between days: 0

How to Review the Report Determine how often to run the report Compare addresses on report Reach out to servicer on record Communicate to anyone on the list

Student Communications Department of Education Text Forbearance and Deferment versus Default Department of Education Default Resolution Group or Paper

Brainstorming Does your school currently use the delinquent borrower report? What populations does your school look at? How does your school review the report? How does your school reach out to students?

Loan Record Detail Report (LRDR) ID: DRC035 Delivered to institutions twice a year –Draft Cohort Default Rate –Official Cohort Default Rate 3 Message Class Types: –SHDRLROP – Cover Letter –SHCDRROP – Reader-Friendly LRDR –SHCDREOP – Extract-Type LRDR

Loan Record Detail Report (LRDR)

Results of the Report Cohort Year 2010 In Default: $2,133,977 In Repayment: $54,479,822 # of Students in Default: 150 # of Students in Repayment: 4,158

Reviewing the LRDR LRDR shows: –# of borrowers who entered repayment in a certain fiscal year and their loan status Check accuracy of data on report –SSN,DOB, Last Date Attended, Grade Level, etc. –Compare info to your own SIS –Compare loan amounts with NSLDS Draw additional information from our SIS to determine patterns for default –i.e. SAP, degree program, grade level, etc.

Brainstorming How does your school currently use the loan record detail report? What populations does your school look at? How does your school review the report? Does your school reach out to students from reviewing this report?

FSA Assessments Activity #1: Early/Late Stage Delinquency Assistance Activity #2: Default Management Plan Activity #3: Default Borrower Profile Templates

Communication to Students Identified Population –Graduate Students over 100,000 –Undergraduate Students over 20,000 –Undergraduate Students with Alternative Private Student Loans Communicated to 1,735 students

Brainstorming What population does your school discuss financial literacy with? How does your school identify populations to communicate with? What type of information does your school offer to students?

Resources Department of Education Default Prevention and Management PlanDepartment of Education Default Prevention and Management Plan Department of Education Default Resolution Group Loan Record Detail Report Guide Bursar.colorado.edu/moneysense FSA Assessment Financial Awareness Training NASFAA’s Default Prevention Webinar