FFEL Business Process and Data Standardization April 28, 2008

Agenda Panelist Introductions Purpose Project Mission FFEL Data Standards Phased Approach Phase I – Internal Analysis Phase II – External Analysis Questions

Panelist Introductions Pam Eliadis – Federal Student Aid Kristi Blabaum - GLHEC Justin Draeger - NASFAA Mark Putman - NCHELP

Purpose Provide an overview of the FFEL Data Standardization and Business Process Improvement Project What it is What’s been done Where we are today Next steps

Project Mission Develop FFEL process improvement recommendations and define data standards that will be exchanged between Federal Student Aid and its partners throughout the financial aid lifecycle for FFEL Program loans.

Proposed Business Process Improvements Goals: Streamline FFEL business processes for Federal Student Aid and the FFEL Community Eliminate current process weaknesses across the financial aid lifecycle Incorporate target state initiatives and concepts into FFEL business processes Resolve information/data deficiencies

Proposed Data Standards Goals: Eliminate duplicative reporting through collection of the right data from the right data provider at the right time Collect data based on business needs Establish in the XML Registry and Repository (XML R&R) a common definition for data attributes that Federal Student Aid and the FFEL Community exchange

Benefits to Federal Student Aid and Partners Improved accuracy and consistency of information Reduced redundancy of information and processes Improved timeliness of information Improved completeness and accessibility of information Improved ability to synthesize, report on and analyze information Streamlined data collection and integrated end-to-end processes

Benefits to Students and Parents Single integrated view of student information Improved default prevention by predictive modeling to identify at-risk borrowers and early intervention to assist those borrowers Reduced data entry burden through pre-population of information (e.g., consolidation application) Improved security of individual information through reduced reliance on the Social Security Number Information quality

FFEL Data Standards Phased Approach The FFEL Data Standards project consists of 3 phases: Phase I - Internal Analysis with Federal Student Aid and Department of Education Business Owners Phase II – External Analysis with the FFEL Community of Interest Phase III – Modify/Add Data Standards through Postsecondary Education Standards Council (PESC) Change Control Board Phase 1: Internal Analysis with Business Owners Phase 2: External Analysis with FFEL Community Phase 3: PESC CCB Data Requirements Gathering

Phase I: Internal Analysis Approach Internal Analysis with Business Owners Process Use feedback Meet with from Federal business Student Aid owners to business review owners to baseline data 2 evaluate draft Federal requirements Obtain approval Baseline Data 1 data standards Student Aid from Federal Draft Data Requirements Student Aid Requirements 3 4 Submit updated Develop updated Analyzed Federal Student requirements to Aid Interfaces: requirements and to - business owners for • DMCS be business processes • NSLDS approval of draft • FMS • Consolidation/LVC Phase 1: Internal Analysis with Business Owners Phase 2: External Analysis with FFEL Community Phase 3: PESC CCB Data Requirements Gathering

Phase I: Internal Analysis Outcomes FFEL Data Flows Requirements Document (V2 – Business Unit Lead Validated) Draft “To-be” FFEL lifecycle business process maps Draft FFEL data standard requirements Phase 1: Internal Analysis with Business Owners Phase 2: External Analysis with FFEL Community Phase 3: PESC CCB Data Requirements Gathering

Phase II: External Analysis Approach Internal Analysis with Business Owners Phase 2: External Analysis with FFEL Community Phase 3: PESC CCB Data Requirements Gathering

Phase II: FFEL Community Representatives 6 Federal Student Aid representatives 21 FFEL Community representatives Experience needed for workgroup Loan Assignments NSLDS Reporting CommonLine Common Record GA Financial Reporting Lender Financial Reporting Common Account Maintenance (CAM) Collection Support Processes (i.e., TOP, NDNH, etc) Consolidation LVC Processing Cohort Default Rates Claims Processing Discharge/forgiveness Processing Perkins Direct Loans Federal Grants

Phase II: Federal Student Aid Representatives Areas of the Federal Student Aid business representing Ron Bennett Ron.Bennett@ed.gov NSLDS Financial Partners Systems Financial Partners Services Portfolio Risk Management Program Operations Holly Hyland Holly.Hyland@ed.gov Lisa Elliott Lisa.Elliott@ed.gov Enterprise Data Management CIO XML Registry and Repository Adele Gabrielli Adele.Gabrielli@ed.gov Borrower Services – Default Resolution Borrower Services – Systems Borrower Services – Processing Group Borrower Services – Non-Default Group Angela Roca-Baker Angela.Roca-Baker@ed.gov Federal Student Aid CFO Lender Financial Reporting GA Financial Reporting Budget Service Zachary Vroman Zachary.Vroman@ed.gov Financial Partners Eligibility and Oversight School Eligibility Channel Enterprise Performance Management

Phase II: Meetings Kickoff meeting: November 29, 2007 in San Diego Federal Student Aid Conference Weekly external workgroup meetings In-person external workgroup meeting: March 10, 2008 Phase II results meeting with internal stakeholders

Phase II: External Workgroup Activities The external workgroup reviews data elements previously vetted with internal stakeholders during Phase I to support the FFEL financial aid lifecycle. The external workgroup specifically analyzes: Data element names Data element definitions Data element usage, field length and type The external workgroup members are given a week to accept or reject the proposed data elements. The external workgroup members determine whether some elements are duplicative or unnecessary

Phase II: Subgroups From the external workgroup, 2 subgroups were formed to discuss: Payment/Collection History: the subgroup will discuss the needs of Federal Student Aid to obtain borrower payment history to support loan assignment, financial reporting and program management. Lender financial reporting (ED Form 799): the subgroup will discuss ways to reduce the burden of lender financial reporting through the collection of aid-level data elements.

Phase II: Communications Plan to the FFEL Community A Communication Sub-Committee is responsible for developing and approving a monthly update to the FFEL community. Updates on project progress are provided through a link on the Financial Partners Portal (http://www.fp.ed.gov/PORTALSWebApp/fp/FFELDataStandProj.jsp). NCHELP, NASFAA and COHEAO provide the monthly communication to their respective listservs. A dedicated email address (DataStrategy@ed.gov) has been established for community comments and questions.

Phase II: Communications Plan to the FFEL Community Communication Sub-Committee Members: Ron Bennett (Federal Student Aid) Mike Balogh (NCHELP) Justin Draeger (NASFAA) Mark Putman (NCHELP)

Target State Context of FFEL Data Standards Data standards will lead to schema development for specific Target State Vision (TSV) implementations: Student Aid History Management (SAHM) Information Framework (IF)/Operational Data Store (ODS) Debt Management Collection System (DMCS)/Conditional Disability Discharge Tracking System (CDDTS) reengineering Loan Consolidation enhancements Financial Management System (FMS) enhancements

Federal Student Aid Target State Vision

Target State Architecture

Frequently Asked Questions Question: When does the FFEL Community have to begin reporting the approved data standards?

Frequently Asked Questions Answer: The data standards will be implemented as Federal Student Aid reengineers or enhances its legacy systems (i.e., NSLDS, Debt Management Collection System [DMCS], Financial Management System [FMS]) with planned target state vision solutions. Federal Student Aid will not implement all target state solutions at once. Federal Student Aid will use a phased implementation approach over a multi-year timeframe.

Frequently Asked Questions Question: Why do you have Perkins and Direct Loan representatives on a FFEL Data Standards workgroup?

Frequently Asked Questions Answer: Federal Student Aid wants to ensure that common data reported across aid programs are consistently defined and create information parity for Title IV programs.

Frequently Asked Questions Question: How can non workgroup participants provide feedback and input to the process?

Frequently Asked Questions Answer: An email address has been established to provide feedback and input, DataStrategy@ed.gov.

Frequently Asked Questions Question: Is this effort leveraging work already done for CAM, CommonLine Common Record, etc.?

Frequently Asked Questions Answer: Yes. During Phase 1 of this project Federal Student Aid mapped data that is currently collected with data elements in the XML R&R to see where previous work could be leveraged. Additionally, during workgroup discussions the workgroup references data elements and definitions already defined in CAM and CommonLine. Additionally, there are members of our workgroup with detailed knowledge and experience with previous data standardization efforts.

Frequently Asked Questions Question: How will the implementation of these standards impact schools?

Frequently Asked Questions Answer: FFEL schools will still provide data to lenders and guaranty agencies using the CommonLine standard. Federal Student Aid will conduct a similar project for Perkins schools at a later date.

We appreciate your feedback and comments Community Inquiries: Email: DataStrategy@ed.gov