1 / 13

To Outsource or Insource your Default Prevention??? That is the question!

To Outsource or Insource your Default Prevention??? That is the question! . Presented by: Denise Ruiz, Nelnet & Eric McCoy, StrataTech Education Gro up. Agenda. US Department of Education CDR facts Current efforts Outsourcing Introduction Default Management Service

ray
Download Presentation

To Outsource or Insource your Default Prevention??? That is the question!

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. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. To Outsource or Insource your Default Prevention??? That is the question! Presented by: Denise Ruiz, Nelnet & Eric McCoy, StrataTech Education Group

  2. Agenda • US Department of Education • CDR facts • Current efforts • Outsourcing • Introduction • Default Management Service • Cost /Benefit Analysis • Insourcing • Introduction • Benefits • How to Developing an In-house plan • Cost/Benefit Analysis • Review and Questions

  3. US Department of Education • The FY 2010 official 3-year cohort default rates were delivered to both domestic and foreign schools on September 23, 2013 • Schools may check their eCDR enrollment online or by calling CPS/SAIG Technical Support at 800-330-5947 • Schools may also obtain an electronic loan record detail report via the National Student Loan Data System (NSLDS) Professional Access website. Assistance in accessing the NSLDS site or with downloading an electronic loan record detail report is available through NSLDS Customer Service at 1-800-999-8219

  4. US Department of Education CDR Facts The FY 2010 3-year national cohort default rate is 14.7 percent • How does your institution compare to the national average? • Above or below the national average? • Do you know the ramifications of a high CDR? • Sanctions • Loss of Direct Loan and Federal Pell Grant program eligibility • School Reputation • Accountability • Alumni Dollars Lost

  5. Current Efforts • The US Department of Education has provided tools and resources for institutions to manage their CDR • Provide Unofficial Draft rates • Challenges , adjustments, and appeals are available to schools after the release of the draft rates • Default Management Guide can be found at ifap.ed.gov • What actions have you taken to manage your institutions Default Rate? • Create a Default Prevention Team and Management Plan • Partner with a Default Management Servicer • Create an In House Default Management Division

  6. Outsourcing Default Prevention Presented by: Denise Ruiz, Territory Manager Responsible Repay - Nelnet

  7. Know your Goals • First, you need to know what your goals are… Do you: • want to reduce delinquencies, and ultimately CDRs? • want to prevent sanctions from ED or loss of Title IV eligibility? • want to educate students on loan repayment and financial wellness? • want to be involved with the prevention efforts? • want to focus your time on other core FA objectives and competencies?

  8. Do your homework • Second, you need to research Default Prevention providers, and ask: • What experience do they have with student loan counseling? • How do they contact students? • How often do they contact students? • What type of counseling do they provide? • What is their priority of solutions? • How accurate is the loan data? • What is their software platform? • What reporting functions are available? • What are the financial wellness initiatives?

  9. Cost Benefit • Lastly, you need to analyze the cost and benefits of the service • Understand the pricing model • Activity Fee • Resolution Fee • Additional fees • Set up • Maintenance • Special Services • Length of contract • How cost effective is the service vs. hiring staff to manage it in house

  10. In-house Default Prevention Presented by: Eric McCoy, Corporate Director of Default Prevention, StrataTech Education Group

  11. In-house Default Prevention • Benefits of an In-House DP Division • Enhanced Student Relationship • Enhanced Entrance & Exit Counseling • Enhanced Financial Literacy • 100% Control of Your Portfolio • Call Volume • Correspondence • Error Corrections • Servicer and Department Relationships • CDR Disputes

  12. In-house Default Prevention • Developing an Effective In House DP Plan • Training Your Staff to Be Effective Advisors • Have the Knowledge Base of a Federal Loan Servicer • Follow Up With Students • Create an Extensive Outreach Campaign • Calls • Letters • Emails • Monitor Your Portfolio Monthly • NSLDS Reports • Servicer Reports • Determine Trends (Outside of Risk Factors) • Team Performance • Servicer Performance

  13. Questions??? Contact Denise Ruiz480-335-5816denise.ruiz@nelnet.net

More Related