Title: Financial Partners Journey Through NSLDS
1Session 61
- Financial Partners Journey Through NSLDS
- Pam Eliadis
- and
- Valerie Sherrer
2Objectives
- Identify how loan level data affects student
eligibility - Specify how the flow of enrollment data impacts
timely conversion to repayment - Examine ways financial partners can improve NSLDS
Data Quality - Recognize what data reported to NSLDS impacts the
Cohort Default Rate - Define NSLDS Security rules and user
responsibilities - Re-engineering NSLDS to Enhance Student Aid
History Management
3(No Transcript)
4Student Eligibility
1
5Student Eligibility
- Loan level data that affect Student Eligibility
- Loan Statuses
- Originations
- Disbursements
- Cancellations/Refunds
- Outstanding Balances
6Student Eligibility
- Schools see eligibility information
- ISIR
- NSLDS FAP Website
7Student Eligibility
- Default Status is based on Lender Claim Payment
- Rehabilitated Loans should be reported timely
8Student Eligibility - Aggregates
Aggregate Loan Limits are calculated for each
student on NSLDS to assist the FAA in determining
student eligibility.
- Three Major Variables
- Net Loan Amounts (Guaranty minus Cancellations)
- Disbursements
- Outstanding Principal Balance
9Student Eligibility Loan Status
- Identification of Consolidations Underlying
Loans - Loan Status Code PN, DN, PC, DP or PF
- Loan Status Date within 210 days (before or
after) of the Consolidation Loan Date
10Student Eligibility
- Report Originations as they happen
- Helps Schools see pending aid for Transfer
Students
11Student Eligibility
Factor in determining the Net Loan Amount for
aggregate calculation
12Student Eligibility
Factor in aggregate calculation
13Student Eligibility
- Outstanding Principal and Interest Balance Amounts
OPB factored in aggregate calculations, OIB and
Other Fees are not
14Enrollment Reporting
2
15Enrollment Reporting
- Impacts of Enrollment Reporting on Financial
Partners - Enrollment Reporting Flow
- Changes to the Loan Status
- Impact on the Date Entered Repayment
- Effects of Non-Reported Enrollment Changes
16Enrollment Reporting
- How do students get on a schools roster?
- Reporting of a loan
- School adds them to a roster
- Reporting of an ACG or SMART Grant
- (as of Jan. 2007)
17Enrollment Reporting Flow
18Enrollment Reporting
- When student drops below half-time attendance
- Loan Status IA to IG
19Enrollment Reporting
- When student re-enters school
- Loan Status RP to DA
20Enrollment Reporting
- Impact on Date Entered Repayment (DER)
- Enrollment Effective Date used to drive DER
- DER is loan based, not student based
- GA Data Provider Instructions
- Grace Separation 6 months
- DER Separation 6 months 1 day
- After entering repayment, DER does not change
21Enrollment Reporting
- Possible Effects of Non-Reported
Enrollment Changes - Loan converted to repayment early
- Loan entering repayment delayed
- Borrower enters grace period without knowledge
22Enrollment Reporting
Inconsistencies between enrollment and loan
statuses
23Enrollment Reporting
- Effective Enrollment Reporting and usage
- Reduces risk of default
- Minimizes technical defaults
- NSLDS
- Maintains the official enrollment data
- Provides GAs enrollment data weekly
- Instructs GAs to inform Lender/Lender Servicers
timely
24NSLDS Data Quality
3
25NSLDS Data Quality
- Examine how Financial Partners can improve NSLDS
Data Quality - Timely reporting to GAs by lenders
- Accurate Contact information
- Accurate information
26NSLDS Data Quality
- Benefits of Timely Reporting
- Timely reporting of information affecting student
eligibility - New data reported quickly for decision making
- Effective program management and oversight
27NSLDS Data Quality
- Accurate Contact Information
28NSLDS Data Quality Accurate Contact Information
- Contact information displayed on NSLDS web sites
- Contact Information used for the Interactive
Voice Response Unit for 1-800-4FEDAID
29NSLDS Data Quality Accurate Information
- Resolve reporting errors
- Close unconsummated loans
- Report loan transfers
30NSLDS Data Quality Accurate Information
- Resolve reporting errors
- Actively work reporting errors
- Analyze loan errors holistically
- Resolve for next submission
31NSLDS Data Quality Accurate Information
- Non-Closure of Unconsummated Loans
- May cause GAs to assume the loan status
- Creates conflicting information
32NSLDS Data Quality
- Accurate Information
- Unconsummated Loan Aging
Assumed by the GA
33NSLDS Data Quality
- GA Data Quality Measures
- Review Benchmark reports
- Data Integrity Improvement Plans
- Reconcile Fee Payment Backup Data
- Annual Reconciliation with NSLDS
- Research Reasonability Report variances
34NSLDS Data Quality
35NSLDS Data Quality Accurate Information
Number of Identifier Conflicts by Month
36Cohort Default Rates
4
37Cohort Default Rates
- Recognize what data reported to NSLDS impacts the
Cohort Default Rate (CDR) - Formula
- Fields
- Rates
- Frequency
- Adjustments
38Cohort Default Rates
- Borrowers who entered repayment in FY04 and
defaulted in FY04 05 - divided by
- Borrowers who entered repayment in FY04
39Cohort Default Rates
- What NSLDS fields affect the CDR calculation?
- Date Entered Repayment (DER)
- Loan Type
- Date Claim Paid
- Claim Reason Code
- Loan Status Codes
- Student Identifiers
40Cohort Default Rates
- Two Lender Calculations
- Originating Lender Rate
- Current Holder Rate
- One GA Calculation
41Cohort Default Rates
- How often are the CDRs Calculated?
- Draft Cohort Default Rate (CDR)
- Calculate January
- Publish February
- Official Cohort Default Rate (CDR)
- Calculate August
- Publish September
42Cohort Default Rates
43Cohort Default Rates
44Cohort Default Rates
- How do Financial Partners request an adjustment
to their CDR? - Lenders
- Data Correction to GA within 30 days of
publication - The GA has 15 days to respond
- GA
- GA has 45 days to submit data corrections
CDR Guide for GAs and Lenders http//www.ifap.ed.
gov/drmaterials/FY04Cohortguide.html
45NSLDS Security
5
46NSLDS Security
- Define NSLDS Security rules and user
responsibilities - DCL Gen 05-06
- Audit Reports
- Data Mining
- User IDs
47NSLDS Security
- Dear Colleague Letter GEN 05-06
- NSLDS may not be used for marketing purposes
- Student/Borrowers permission is required
- Reminds users of Federal Student Aids
enforcement obligation
48NSLDS Security
- Audit Reports
- Every student look-up is tracked by User ID
- Lender Audit Security Reports
- Requested by Destination Point Administrator
- Number of look-ups by user id
- Past 90 days
49NSLDS Security
- No Data Mining
- Completely Automated Public Turing Test to Tell
Computers and Humans Apart (CAPTCHA) tool - Monitoring top 20 users and organizations
50NSLDS Security
- User IDs
- Will be disabled after 12 months of inactivity
- Cannot be shared with colleagues
- Obtain through FSAwebenroll.ed.gov
51NSLDS Re-engineering
6
52NSLDS Re-Engineering
- NSLDS Functionality
- Monitor aid eligibility through applicant
pre-screening, post-screening, and transfer
monitoring processes - Receive student enrollment updates from schools
and their servicers, process and store this
information in the Operational Data Store (ODS),
and then distribute relevant enrollment updates
to interested trading partners (i.e. lenders,
lender/servicers, guaranty agencies).
53NSLDS Re-Engineering
- NSLDS Functionality
- Manage the default rate processes including
calculation, distribution, and publishing of
default rates - Provide aid-level calculation services and
provide SAHM operational reports and metrics - Manage receipt of student, aid, and organization
data to provide an integrated student view of
financial aid history
54NSLDS Re-engineering
- Goals for Re-Engineering
- Align with Federal Student Aid Data Strategy
Efforts - Implement FFEL data flow changes to facilitate
design and implementation of Information
Framework(IF)/ Student Aid History Management
(SAHM)
55NSLDS Re-engineering
- Goals for Re-Engineering
- Improve Data Usefulness
- Data Timeliness
- Data Quality
- Program Monitoring and Oversight
56NSLDS Re-engineering
- FFELP Community Benefits
- Data source becomes responsible for reporting
- Using current industry data exchange formats and
methods (i.e. XML Schemas) - Standardized reporting for all life-cycle stages
(i.e CommonLine) - Reduced duplicative reporting among FFEL
participants - Interface Consistency
57NSLDS Re-engineering
- Students, Parents, and Schools Benefits
- Timely information for making eligibility
decisions - Enhanced data integrity
- Program Information Parity
58NSLDS Re-engineering
- Federal Student Aid Benefits
- Improved Customer Service to all constituents
- Facilitates better decision making
- Enhanced data integrity
- Improved oversight of FFEL Program
- Meets Target State Vision for the Enterprise
59NSLDS Re-engineering
- Next Steps
- Collaboration with community stakeholders
- Focus Groups being held in conjunction with both
Federal Student Aid conferences - Definition of requirements
60Thank you!
- We appreciate your feedback and comments.
- We can be reached at
- Phone Valerie Sherrer 202-377-3554
- Pam Eliadis at 202-377-3554
- Fax 202-275-0913
- Email valerie.sherrer_at_ed.gov
- pam.eliadis_at_ed.gov