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Session 49
How Direct Loan Servicing is Improving the Financial Aid Experience For You
and Your Students
Presenter: Cindy Battle
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Agenda
• Direct Loan Update- Facts and Figures
- HERA Update
- Outreach Activities
- Customer Surveys
• Borrower Web Site
• School Web Site
• Direct Loan Servicing Tomorrow
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6.4 Million Active Borrowers
Borrowers = Students + Alumni + ParentsAs of August 2006
Total Direct Loan Borrowers
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
2000 2001 2002 2003 2004 2005 2006
Direct Loan Borrower Portfolio
PopulationStatus
In School
In Grace
In Repayment
1,673,815
355,504
3,327,424
In Deferment 672,515
In Forbearance 410,357
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Call Center Stats
• In 2005, the Direct Loan Servicing Center Representatives received almost 6 million calls.
• In comparison, from January 2006 through end of August 2006, the Direct Loan Servicing Center Representatives received a little more than 4 million calls.
767,881
1,258,035
5,889,998
597,752
967,678
4,068,195
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
2005 2006
Call Center Representative Call Totals
Debt Collections Loan Consolidation Direct Loan Servicing
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HERA Update
• Teacher Loan Forgiveness
• Military Deferment
• False Certification (Identity Theft)
• Rehabilitation of defaulted loans
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Website Statistics (January – August 2006)
14,363,618 - Web Visits
7,563,027 – Unique Web Visits
475,098 - Average Visits Per Day
49,870 - Pay Plan Changes
33,388 – Pay Date Changes
92,966 – General Forbearance Submitted
17,210 – Unemployment Deferment Submitted
315,222 – Entrance Counseling Sessions
375,180 – Entrance Counseling Schools
90,278 – Exit Counseling Sessions
91,115 – Exit Counseling Schools
Website Statistics (January – August 2006)
14,363,618 - Web Visits
7,563,027 – Unique Web Visits
475,098 - Average Visits Per Day
49,870 - Pay Plan Changes
33,388 – Pay Date Changes
92,966 – General Forbearance Submitted
17,210 – Unemployment Deferment Submitted
315,222 – Entrance Counseling Sessions
375,180 – Entrance Counseling Schools
90,278 – Exit Counseling Sessions
91,115 – Exit Counseling Schools
Tangible Benefits
Improved customer satisfaction
Online resource referrals
Consistency of information
Better educated & informed customer
Reduction in turnaround times
Tangible Benefits
Improved customer satisfaction
Online resource referrals
Consistency of information
Better educated & informed customer
Reduction in turnaround times
Web Site Benefits
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Borrower Outreach - EDA
• Electronic Debit Account Campaign (EDA)
– Executed an email campaign in Spring 2006 to all online borrowers with active e-mails.
– Campaign doubled our EDA enrollments in the month the campaign was executed.
– Future plans include an ongoing monthly “in-grace” campaign to those borrowers entering repayment.
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18,093
101,316
32,635
120,579
686,314
22,682
117,804
38,732
149,732
722,703
0
100000
200000
300000
400000
500000
600000
700000
800000
2005 2006
Electronic Service Programs
Electronic Services
Electronic Bill Presentment
Only
Electronic Bill Presentment + Correspondence
Electronic Correspondence Only
Electronic Correspondence + Electronic Debit Account
Electronic Debit Account Only
The Direct Loan Servicing program just celebrated over 2 billion dollars processed through the web site
since online payments were made available, not including third party payments.
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Borrower Outreach - Loan Consolidation
• Loan Consolidation
– Executed an email campaign in Spring 2006 to all online borrowers with active e-mails.
– Designed and mailed comprehensive school kit to all Direct Loan schools with materials on Loan Consolidation.
– Used “On-Line Advisor” scripts to customize messages to borrowers by status.
– Used Web banners and news articles to educate borrowers on the benefits of Loan Consolidation.
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Loan Consolidation Peak Update
• Loan Consolidation
– LC Bookings have increased by more than 85% in the two-month period of June/July 2006 compared to the same period last year.
– The total June/July 2006 bookings of 298,532 exceeded the 2005 volume by over 137,000 for the same two-month period.
61,112
99,987 99,671
198,861
0
50,000
100,000
150,000
200,000
2005 2006
Loan Consolidation Booked Comparison
June July
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Measuring Customer Satisfaction
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Customer Satisfaction Surveys
survey is customizable to address key issues
allows performance to be tracked over time
allows performance to be benchmarked
helps identify actions necessary to correct performance issues – can prioritize improvement initiatives
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What Are Our Customer’s Saying??
“I would like to have an electronic message sent to me if
I forget my online password, because I don't really like to
wait for it in the mail”
“I am a little upset that I need to upgrade to a computer for it to be easier to deal with the loan repayment process.”
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2006 Borrower Satisfaction Results
Confidence
Customer Satisfaction
Complaints
Statements
Website
Voice ResponseUnit
Call CenterRepresentative
86
4%
90
81
78
83
1.8
0.2
0.7
2.3
79-0.8
3.7
Electronic Debit
92
0.0
Score
Impact
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Satisfaction BenchmarksFederal Government
50
73
71
77
80
79
40 50 60 70 80 90
IRS Tax filers Paper
IRS Tax filers Electronic
DL Servicing
FAFSA on the Web
Federal Government E-Gov
Federal Government(Aggregate)
ACSI Score
DL Servicing among the best in the Federal Government!
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2006 School Satisfaction SurveySchool surveys were conducted this year to evaluate satisfaction through phone, email and web sites.
5 point scale5 point scale
5 = Extremely Satisfied
4 = Very Satisfied
3 = Satisfied
2 = Neither Satisfied nor Dissatisfied
1 = Dissatisfied
NA = Not Applicable
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School Survey Highlights
• 59.9% of Schools said they were “Extremely Satisfied” or
“Very Satisfied” with the service they received
• 33.5% of Schools said they were “Satisfied” with the
service they received
• Only 6.6% said they were “Neither Satisfied nor
Dissatisfied” or “Dissatisfied” with the service they
received
• More than 93% of the schools were satisfied, very satisfied
or extremely satisfied with the service they received
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Questions with Highest Responses• Website - 3.94
– How satisfied/dissatisfied were you with the availability of the Website?
• Phone - 3.86
– How satisfied/dissatisfied were you with the timeliness of responses to your call?
• Overall Experience - 3.80
– How satisfied/dissatisfied were you with the overall performance of the Direct Loan Servicing Center, School Services Group?
• Phone - 3.78
– How satisfied/dissatisfied were you with your overall experience calling the School’s Servicing Center?
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Questions with Lowest Responses• Students Experience (Servicing Center) – 3.35
– How satisfied/dissatisfied were your students that the CSR handled the issue in one call?
• Students Experience (Servicing Center) – 3.36
– How satisfied/dissatisfied were your students with the knowledge of the CSR?
• Students Experience (Servicing Center) – 3.37
– How satisfied/dissatisfied were your students with the follow-up promised during their call?
• Website – 3.37
– How satisfied/dissatisfied were you with the “Help” function of the Website?
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Direct Loan Servicing Web Site
For Borrowers - http://www.dl.ed.gov• Real Time Account Information• Online Transaction Processing - Borrower Self-Service• Online Counseling and Rules Based Messaging• Interactive Pre-qualifier for Deferment and Forbearance
Requests including online submission with eSignatures• Online payments• Electronic Mail Services• EDA Enrollment• Online Calculators• Online Surveys
For Schools - http://www.dl.ed.gov/schools• Student Account Lookup• Online Reports – Portfolio, Delinquency and Counseling• Complete Question Center
For Borrowers - http://www.dl.ed.gov• Real Time Account Information• Online Transaction Processing - Borrower Self-Service• Online Counseling and Rules Based Messaging• Interactive Pre-qualifier for Deferment and Forbearance
Requests including online submission with eSignatures• Online payments• Electronic Mail Services• EDA Enrollment• Online Calculators• Online Surveys
For Schools - http://www.dl.ed.gov/schools• Student Account Lookup• Online Reports – Portfolio, Delinquency and Counseling• Complete Question Center
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Key Features
•Highly Secure PIN protected Data encryption
•Section 508 Compliant for borrowers with disabilities
•English/Spanish option for entire site
•Winner of multiple prestigious awards
•Online Tour – tutorial to aid borrowers in using site
•Search Feature & Site Map help borrowers find what they need quickly
Borrower Web SiteHomepage
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Borrower Web SitePersonalized Online Messages Key Features
•Personalized messages are displayed to borrowers based on their account status and other information.
• Messages include information about last and next payment, options for delinquent borrowers, and special information as the need arises.
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Borrower Web SiteReal Time Account Information- Account Summary
Key Features•Account Balances - Borrowers can see their total student loan indebtedness in one place.Direct Loan
Balances Total
Indebtedness (FFEL and Perkins loans from NSLDS)
•Last Loan Payment – Borrowers can confirm the date and amount of their last payment on the Account Summary page.
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Key Features
•Payment History -Complete Record of all payments ever made by the borrower
•Payment Type – Online, Main, EDA, etc.
•Breakdown of Payment into Principal, Interest or Fees
Borrower Web SiteReal Time Account Information – Payment History
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Key Features
•Electronic Promissory Note Retrieval
Borrowers who use eSignatures for promissory notes can retrieve a copy of their promissory note online at any time.
Borrower Web SiteReal Time Account Information – Document Retrieval
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Key Features
•Borrowers can change their Repayment Plans online as their circumstances change.
•Borrowers can view amortization plans for the different repayment plans before they make changes.
Borrower Web SiteCustomer Self Service – Change Repayment Plans
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Key Features•Borrowers can change their Payment Due Dates online as their circumstances change.
•This can help reduce delinquency by customizing payment options for the borrower.
Borrower Web SiteCustomer Self Service – Change Payment Due Dates
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Key Features
•Forms that a borrower may need are available for downloading from the DLS Web site.
•Borrowers can determine immediately if they qualify for deferment or forbearance of their payments through online interactive sessions.
•Borrowers can submit Unemployment Deferment and General Forbearance applications online using eSignatures.
Borrower Web SiteOnline Form Submission
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Key Features
•Borrowers can schedule payments for up to six months in advance, schedule recurring payments, store multiple bank accounts, and receive email reminders.
•This saves time and money in postage for the borrower.
Borrower Web SiteOnline Payments
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Key Features
•Borrowers can choose to receive their bills and correspondence online instead of in paper through the mail.
•Benefits for borrowers who receive their information electronically, include security, speed, and convenience.
•Electronic billing and correspondence help the environment by reducing the volume of paper we mail out each year.
Borrower Web SiteElectronic Mail Services
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Key Features
•The Interest Capitalization Estimator helps borrowers understand the effects and consequences of capitalized interest on their loans as a result of deferred payment either during school or in repayment.
•After choosing the reason for deferring payment and the end date, borrowers are provided with the amount of interest that will accrue and the total increase in the amount they will repay over the life of loan.
Borrower Web SiteInterest Capitalization Estimator
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Key Features
•Borrowers are explained their rights and responsibilities as a Direct Loan borrower through online counseling.
•In order to successfully complete a session, borrowers must pass a quiz.
•Before their loans are disbursed students take Entrance Counseling.
Borrower Web SiteOnline Entrance Counseling
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Key Features
•Borrowers are explained their rights and responsibilities as Direct Loan borrowers through online counseling.
•In order to successfully complete a session, borrowers must pass a quiz.
•Borrower can change their repayment plan, due date, enroll in EDA, and update address information.
•After borrowers separate from school, they take Exit Counseling online before they go into repayment.
Borrower Web SiteOnline Exit Counseling
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School Services Support
• School Report Statistics
– 208 schools subscribe to Exit Counseling Reports
– 313 schools subscribe to a Entrance Counseling Reports
– 194 schools subscribe to a monthly Delinquency Summary Report
• School Services Call Center Statistics
– Roughly 75% of all Direct Loan School Services calls are request for student account information
– The remainder of calls are questions regarding web site information, school reports or general program questions.
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Reporting ToolsExit & Entrance Counseling ReportsIdentify students who have completed Counseling OnlineDelinquency ReportsDetail, Summary, Late Stage Delinquency and Borrower History
Email SubscriptionReceive email notifications when reports are available online
Account LookupView live account data for students Including, balances, account status, separation dates, and more.
DL Servicing ResourcesWeb Site HelpGeneral InformationContact Us
Spanish Version
Highly SecureLogin through
COD
School Web SiteHomepage
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Key Features
•Direct Loan Schools may subscribe to have reports on their student activity sent to them regularly.
•Reports with personal borrower information are sent via secure connections to ensure privacy of borrower information.
School Web SiteReport Subscription
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Key Features
•Direct Loan Schools may look up borrower information in the Direct Loan Servicing System.
•School financial aid officers can view repayment estimates for students.
•These tools provide schools with the ability to better counsel their students about their Direct Loans.
School Web SiteStudent Account Lookup
Click here to see Repayment Estimates
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School Web SiteReporting
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• Real time access to results
• Electronic Report Delivery with frequency determined by school – daily, weekly or monthly
• Ability to export data into format of school choice
School Web SiteEntrance and Exit Counseling
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Key Features
•Online Delinquency Reports allow Direct Loan Schools to track their delinquency rates and identify borrowers who are delinquent in making payments.
•FSA is working with schools to utilize online delinquency reporting to lower their cohort default rates.
School Web SiteDelinquency Reports
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Students Borrower Web Chat – Allows
borrowers to securely chat with CSRs during normal business hours though the web site.
eMinders – Ability for a borrower to subscribe to email alerts when certain events happen on their account. Payment posted, forbearance or deferment form received.
Direct Loan Servicing Tomorrow
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Borrower Web SiteNew Look –n- Feel
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Cindy Battle
(202) 377-3261
Email: [email protected]
School Services
(888) 877-7658
Direct Loan Servicing Center
(800) 848-0979
Questions… Contact Us…
