Ombudsmen panel
Download
1 / 15

Ombudsmen Panel: - PowerPoint PPT Presentation


  • 73 Views
  • Uploaded on
  • Presentation posted in: General

Ombudsmen Panel:. Student/Borrower Advocate – The Role of the Ombudsman. FSA Ombudsman FY2012 Update. 34,909 contacts received Increase over FY2011 Increase in Research cases Economic issues Loan transfers System conversions Collaboration with CFPB

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha

Download Presentation

Ombudsmen Panel:

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Ombudsmen Panel:

Student/Borrower Advocate – The Role of the Ombudsman


FSA Ombudsman FY2012 Update

Navigating the Sea of Change 2012 NCHER Knowledge Symposium

  • 34,909 contacts received

    • Increase over FY2011

  • Increase in Research cases

    • Economic issues

    • Loan transfers

    • System conversions

  • Collaboration with CFPB

    • Link from CFPB.gov to FSA Ombudsman site


Caucus Background

Navigating the Sea of Change 2012 NCHER Knowledge Symposium

Vision:

The vision of the Caucus of Student Loan Ombudsmen (the Caucus) is to: provide a resource for the creation and support of highly effective student aid problem resolution methodologies, techniques and processes that promote equitable services for all federal student aid participants.

Mission:

The mission of the Caucus is to: provide training and mentoring; identify and report on trends to support positive change through industry best practices and legislation; and serve as a voice of fair process throughout the student loan life cycle.


Trends Committee

Navigating the Sea of Change 2012 NCHER Knowledge Symposium

Analyzes Data from FSA Ombudsman’s Office(Inquiries/escalation from customers throughout the industry)

Adds in data from all participating Servicers and Guarantors for non FSA volume – full picture


What are our Industry Top 5 Trends?

Navigating the Sea of Change 2012 NCHER Knowledge Symposium

Account Balance

Loan Cancellation/Discharge

Repayment Plans/Amounts (excluding IBR)

Default (excluding rehabilitation issues)

Service Quality (excluding split-servicing)


Top Issue – Account Balance

Navigating the Sea of Change 2012 NCHER Knowledge Symposium

Averages 26-28.5% of overall volume over last 11 years;

Questions/issues differ from non-defaulted compared to defaulted borrowers;

Questions/issues cover a broad range of sub-topics

What types of questions/complaints does your organization receive regarding account balances on loan accounts?


The Caucus Hears…

Navigating the Sea of Change 2012 NCHER Knowledge Symposium

  • From non-defaulted borrowers:

  • - Disbursement amounts

  • - Payment application

    • Pre-Payment

    • Interest capitalization (the effect of deferments and forbearances)

    • Subsidized vs Unsubsidized loans

    • Change in Payment Plan (example ICR to standard)

    • Simple daily interest accrual

    • Interest rate changes

    • Fees assessed


Case Study #1:Non-defaulted Customer

Navigating the Sea of Change 2012 NCHER Knowledge Symposium


The Caucus Hears…

Navigating the Sea of Change 2012 NCHER Knowledge Symposium

  • From defaulted borrowers:

    • Payment application – collection costs

    • Interest capitalization before default and after rehabilitation;

    • Subsidized vs. Unsubsidized loans

    • Simple Daily interest accrual

    • Interest Rate changes

    • Collection Costs – how much is charged

      • Effect on rehabilitation and consolidation

    • Offset payment application


Case Study #2:Defaulted Customer

Navigating the Sea of Change 2012 NCHER Knowledge Symposium


Framing Recommendations

Navigating the Sea of Change 2012 NCHER Knowledge Symposium

List is long; must be prioritized

No single problem or solution

Use data to prioritize and provide a place to start

Review contacts received about Account Balance from 28 Caucus members during FY2012


What the Data Reveals

Navigating the Sea of Change 2012 NCHER Knowledge Symposium

  • Account Balance represents nearly 67% of all contacts received by Caucus members, including FSA, from non-defaulted borrowers through 3rd quarter of FY2012

  • FSA identifies more specific issues from non-defaulted borrowers:

    • loan disbursement timing and accuracy;

    • Interest accrual

    • Payment posting


What the Data Reveals

Navigating the Sea of Change 2012 NCHER Knowledge Symposium

  • Account Balance represents roughly 33% of all contacts received by Caucus members, including FSA, from defaulted borrowers through 3rd quarter of FY2012

  • FSA identifies more specific issues from defaulted borrowers:

    • Challenges to the validity of debt

    • Late charge disputes (including collection costs)

    • General questions about balance calculation


Next Steps:

Navigating the Sea of Change 2012 NCHER Knowledge Symposium

Work to create simple explanations for each steps

Create a consistent message for customers

Additional Communication Opportunities

Share trend data with the Caucus and participate

- Calls take place 3rd Tuesday of the month at 3pm eastern

- Contact Vicki Shipley at vshipley@ncher.us to be added to the List Serv


Contact Information

Navigating the Sea of Change 2012 NCHER Knowledge Symposium

Joyce DeMoss Joyce.DeMoss@ed.gov

April Petroski April.M.Petroski@salliemae.com

Tracy Stine Tracy.A.Stine@salliemae.com

Diane Ziturdzitur@ecmc.org


ad
  • Login