Introducing the Student Loan Ombudsman Caucus:

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Session 16

• Introducing the Student Loan Ombudsman Caucus
• Facilitating Creative Solutions for Student Loan
  Problems and Issues
• Grace Bartini, American Student Assistance
  Corporation
• Debra Wiley, Federal Student Aid, U.S. Department
  of Education

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Background

• Federal Student Aid Ombudsman
• 1998 - Federal Student Aid Ombudsman established
  by HEA Amendments
• 1999 First case accepted (erroneous default)
• 2007 More than 17,000 cases

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1999 - 2006

• Federal Student Aid Ombudsman and Agency Contacts
• 1999 - Designated High Level Contacts at
  Guarantor and Lender Agencies Assist With Case
  Resolution
• 2001 First Annual Meeting of Ombudsman Contacts
  
• 2006 Student Loan Ombudsman Caucus Charter
• 2007 Caucus Operational

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A Student Loan Ombudsman Caucus Emerges



Agency

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Agency
Federal

Contact


Student Aid

Ombudsman



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1999
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2006


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A Student Loan Ombudsman Caucus In Action


Agency

Contact




Agency


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Student Loan


Ombudsman Caucus









Agency
FSA Ombudsman


Contact

Agency

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Student Aid Industry

Trends, Issues, Training, Outreach, and
Communication

2007
Multi Directional Exchanges

à
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Why a Caucus?

• Enhanced Student Aid Problem Resolution Network
• Promotes Consistent Use of Ombudsman Best
  Practices
• Targeted Training and Mentoring
• Improved Trends Identification, Analysis and
  Reporting

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How Does The Caucus Operate?

• Conference Calls
• Quarterly Meetings
• Committee Structure
• Members ListServe

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How Does the Caucus Operate?

• Caucus Members
• Use all available information to recommend and
  promote areas of research
• Advise membership on areas of mutual interest
• Utilize individual and collective reports to
  analyze potential for improvement

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How Does the Caucus Operate?

• Each agency ombudsman works to resolve problems
  identified through the Federal Student Aid
  Ombudsman or from within the agency
• As a Caucus member, the agency ombudsman
  participates in the discussion of student loan
  issues, feedback on student aid legislation, case
  trend analysis and recommendations for change

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How Do Students Benefit?

• Caucus Members Commit To
• Serving as a voice for fair process
• Coordinating with student loan stakeholders and
  the government to promote positive change in the
  student loan industry
• Learning from complaints and problems that impact
  student loan borrowers, and prevent them when
  possible

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.How do Students Benefit?

• Caucus members provide an in-agency escalation
  process for problems
• If problems remain, students call Federal Student
  Aid Ombudsman at 1-[phone]
• Federal Student Aid Ombudsman will work with the
  student and the agency
• Federal Student Aid Ombudsman and Caucus member
  will use the situation to inform change

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How do Schools Benefit?

• Additional resources to assist borrowers during
  enrollment, or after they leave your campus
• You, student, agency and Federal Student Aid
  Ombudsman work together to research and resolve
  an individual question
• Outcome on the individual situation informs the
  whole. For example

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Case Analysis and Reporting

• Trends Identification and Reporting
  Collaborative Resolution Change
• Federal Student Aid Ombudsman groups cases in 16
  basic issue categories
• Cumulative and Individual Agency Reports Are
  Produced Annually
• Student Loan Ombudsman Caucus can concentrate on
  select issue categories, and compare agency
  experiences to Federal Student Aid Ombudsman data

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For Example..The Basic Categories Help Define
Where Difficulties Arise

• Account Balance
• Bankruptcy
• Closed School
• Collection Practices
• Consolidation
• Credit Reporting
• Default
• Deferment/Forbearance

FSA Assistance Loan Cancellation NSLDS Repayment
Plans/Amounts Service Quality Student
Eligibility Tax Refund/Offset Wage Garnishment
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Top 5 Research Issues

• Initially, the top 5 issues accounted for about
  60 of the Federal Student Ombudsman research
  cases.
• Now, the top 5 issues account for about 70 of
  research cases.
• Consolidation
• Loan Cancellation/Discharge
• Account Balance
• Repayment Plans/Amounts
• Default

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(No Transcript)
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The Caucus Can Concentrate An Issue
Review.For Example

• Consolidation Is The Number One Issue for Federal
  Student Aid Ombudsman Cases in 2007
• Caucus Members Assist in Resolving Questions
  About Consolidation at Their Agency
• Collective Information Promotes Compliance and
  Corrective Action
• Caucus Members and Federal Student Aid Ombudsman
  Use Case Questions To Inform Student Consumer
  Information
• http//www.ombudsman.ed.gov/consolidation.html

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The Caucus Can Commit to Effective Problem
Resolution

• Caucus commitment promotes.
• accurate, and consistent customer service
• common-sense approaches
• creative solutions
• collective review of outcomes

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For Example.Reminders From a Caucus Member

• Let the customer tell the full story
• Try to understand the customers point
• Give the customer your undivided attention
• Explain circumstances in context of the
  customers specific needs
• Give realistic time frames for action
• Use the information to check internal systems and
  escalation processes

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Shall We Try It?Group Resolution of case
samples
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Whats Next..
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A Student Loan Ombudsman Caucus In Action


Agency

Contact




Agency


Contact

Student Loan


Ombudsman Caucus









Agency
FSA Ombudsman


Contact

Agency

Contact





Student Aid Industry

Trends, Issues, Training, Outreach, and
Communication

2007
Multi Directional Exchanges

à
23
Benefits Predicted from Caucus Activities..

• Multi-prong problem identification, resolution,
  and change recommendation
• Will help encourage and promote
• Resolution versus reaction
• Prevention instead of correction
• Systemic change

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Contact Information

• We appreciate your feedback and comments. Contact
  us
• Grace Bartini, Ombudsman
• American Student Assistance Corporation
• Telephone [phone] , ext 4512
• E-mail bartini_at_amsa.com
• Debra Wiley, Ombudsman, Federal Student Aid, U.S.
  Department of Education
• Telephone [phone]
• Facsimile [phone]
• Website www.ombudsman.ed.gov
• E-mail debra.wiley_at_ed.gov