Using Free Resources to work with DL Borrowers How GTCC is managing its default by using a comprehensive, cost effective approach Ryan James Bonner

How are CDR’s calculated?

Background and Basics Start by creating a plan for how your school is going to address default management. Gather Information A great starting point is the “Default Prevention & Management: A Plan for Student & School Success” from IFAP.Default Prevention & Management: A Plan for Student & School Success

IFAP

Campus Committee Default Management is a CAMPUS-WIDE concern Schools should immediately create a committee on campus that looks at the school’s current policies and determines what measures can be taken to address the main concerns and eliminate the obstacles to education, employment, and repayment. Creation of the “Default Aversion Plan”

Committee Continued By bringing together faculty, staff, and employees across campus disciplines, you can create a committee that is best prepared to handle / address all of the default related concerns. Have Institutional Research determine who is defaulting. Look for any patterns (class start time, # of developmental classes needed, age / race / gender, # of hours worked, SAP status, Full or part time…

Default Aversion Proposal This proposal will eventually become your school’s Default Aversion Plan. Possible Topics / Sections: Default Prevention Team responsibilities Who is Defaulting and Why Delinquency Outreach Implementation of Targeted Interventions Employment Outcomes

CDR Thresholds

Privileges vs Sanctions

Do our students feel like this?? (Do we?)

So….Now what?? We know some default basics… We know who our defaulters are…. We have a Default Committee and Plan… So how can we take this information and start a comprehensive default management program??

If only… There was some way, to navigate your school’s ENTIRE portfolio….

Portfolio Navigator: A New Default Management Tool

What is Portfolio Navigator? Portfolio Navigator: What, When, How, and Why Walk through Portfolio Navigator—and learn how to use it How to fit Portfolio Navigator into your default prevention initiatives

“ WHAT” - Portfolio Navigator Portfolio management tool with prioritized outreach plans and tracking – Select the outreach plan based on your available time and goals Enables you to help all borrowers, regardless of servicer, to get or stay on track for successful student loan repayment Free and simple to use

“When” - Portfolio Navigator Launched – October 2013 Enhancements – February 2015 Recent Enhancements – October 2015

“How” – Portfolio Navigator Financial Aid Professional page at schools.mygreatlakes.orgmygreatlakes.org Access using your Great Lakes user ID and password If you do not have a user ID and password for mygreatlakes.org mygreatlakes.org – Contact Great Lakes Client Services (888) or

“WHY” - Portfolio Navigator Many students are more willing to respond to their former school than their servicer Your communication may be the one opportunity they have to get on track

A Walk Through Portfolio Navigator Manage Data Portfolio Summary Action Center Portfolio and Cohort Summary

Manage Data Securely upload Great Lakes data Securely upload and easily filter NSLDS data for all of your students’ federal loans

Portfolio Summary Filter and view your school’s federal loan data in numerous ways for easy reporting and outreach

Action Center Use securely uploaded NLSDS data or Great Lakes data for recommend targeted outreach efforts

Action Center Action Center dashboard You can determine two borrower segments for outreach Helping borrowers in repayment Helping borrowers to prepare for repayment NEW

Servicer Awareness Campaign Help educate current students about the role of a servicer, how to find out who their servicer is, and why connecting with the servicer is important NEW

Great Lakes Account Access Campaign Encourage borrowers with Great Lakes-serviced loans to create an online account NEW

Default Prevention Action Tracks Help borrowers get back on track with outreach that informs them about their repayment options and other methods to resolve their delinquency

Default Prevention Tracks Helps you identify and reach out to borrowers that need additional support Offers three Action Tracks so you can choose the outreach efforts that best fits your schedule Provides messaging to send to target groups of delinquent borrowers

Target Groups Enables you to tailor your message to key groups of delinquent borrowers High Priority Delinquency ( days delinquent who have never made a payment) Late Delinquency ( Students 240 or more days delinquent) Mid Delinquency ( Students days delinquent) Early Delinquency (Students days delinquent)

Three Action Tracks Fundamental For quick and efficient outreach to your most at-risk borrowers High-Priority Delinquency Late Delinquency

Three Action Tracks Comprehensive Includes outreach to borrowers most at-risk and mid delinquent borrowers High-Priority Delinquency Late Delinquency Mid Delinquency

Three Action Tracks All-Inclusive Enables you to proactively reach out to all delinquent borrowers High-Priority Delinquency Late Delinquency Mid Delinquency Early Delinquency

Customizable Outreach Messaging Messaging to each of the four target groups – Letters – Phone – s

Letter Outreach Customize letters or use PDF letters and pre-formatted labels

Letter Outreach Each letter details how the borrower can resolve their delinquency

Phone Outreach Prepare for your phone outreach by receiving the borrower name, phone number, servicer’s name, along with a guide to help assist with the calls

Portfolio and Cohort Summary Use the Portfolio and Cohort Summary to see how your default rate is trending

Let’s take a walk through Portfolio Navigator as you would use it in your office…

One Option: Portfolio Navigator from Great Lakes

Portfolio Navigator To Manage Data: School Data (SCHPR1) downloads as: SCHRPFOP Delinquency Data (DELQ001) downloads as: DELQFFOP

Uploading reports for Portfolio Navigator On a monthly basis, you could order those two reports in a fixed format… OR

47 Using NSLDS Reports

NSLDS Reports…Continued

Once your files have been saved

File Upload Data

Action Center

Help Borrowers in Repayment

Help Borrowers prepare from Repayment

Servicer Awareness Campaign

Great Lakes Account Access

Reports and the Action Center

Accessing Reports from Action Center

Reports

Support Central

How to fit Portfolio Navigator into Your Default Prevention Activities Prioritizing Your Default Prevention Efforts Determine how much time you have each month to allocate to default prevention Identify the best communication method to reach your borrowers Add your initiatives to your overall default prevention plan 1 2 3

Prioritizing Your Default Prevention Efforts Begin your outreach efforts with your late and high-priority delinquency borrowers Most have never responded to their servicer Time is running out Many are avoiding other creditors Have gone 75+ days without a payment Early intervention by the servicer hasn’t worked Many are on a fast-track to default

Prioritizing Your Default Prevention Efforts 1 Hour 2 Hours High-Priority Delinquency Late Delinquency Mid Delinquency 4+ Hours

Resources & Conclusions

Is Portfolio Navigator for You? Create a delinquency and default management strategy and outreach program at no cost Requirements: – Great Lakes online account –Willingness to spend at least one hour each month

Resources Mygreatlakes.org Cohort Default Rate Guide –ifap.ed.gov/DefaultManagement/ CDRGuideMaster.htmlifap.ed.gov/DefaultManagement/ CDRGuideMaster.html FSA Default Prevention Resource Information –ifap.ed.gov/DefaultPreventionResourceInfo/ index.htmlifap.ed.gov/DefaultPreventionResourceInfo/ index.html

Helpful Resources NorthStar Ready-To-Use Resources

71 Nationally the overall default rate has decreased, from 13.7% in 2011 to 11.8% in 2012… From 4.7m to 5.1m borrowers in repayment, yet the absolute number of borrowers who defaulted decreased - Nasfaa.org Income-Based Repayment Outlook

Conclusions / Questions

NCASFAA would like to thank our Professional Affiliates! NCASFAA Fall Conference – November 1-4,