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Financial Partners Journey Through NSLDS

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Loan Status. Default Status is based on Lender Claim Payment ... Factor in determining the Net Loan Amount for aggregate calculation. 12. Student Eligibility ... – PowerPoint PPT presentation

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Title: Financial Partners Journey Through NSLDS


1
Session 61
  • Financial Partners Journey Through NSLDS
  • Pam Eliadis
  • and
  • Valerie Sherrer

2
Objectives
  • 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)
4
Student Eligibility
1
5
Student Eligibility
  • Loan level data that affect Student Eligibility
  • Loan Statuses
  • Originations
  • Disbursements
  • Cancellations/Refunds
  • Outstanding Balances

6
Student Eligibility
  • Schools see eligibility information
  • ISIR
  • NSLDS FAP Website

7
Student Eligibility
  • Loan Status
  • Default Status is based on Lender Claim Payment
  • Rehabilitated Loans should be reported timely

8
Student 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

9
Student 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

10
Student Eligibility
  • Originations
  • Report Originations as they happen
  • Helps Schools see pending aid for Transfer
    Students

11
Student Eligibility
  • Cancellations/Refunds

Factor in determining the Net Loan Amount for
aggregate calculation
12
Student Eligibility
  • Disbursements

Factor in aggregate calculation
13
Student Eligibility
  • Outstanding Principal and Interest Balance Amounts

OPB factored in aggregate calculations, OIB and
Other Fees are not
14
Enrollment Reporting
2
15
Enrollment 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

16
Enrollment 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)

17
Enrollment Reporting Flow
18
Enrollment Reporting
  • When student drops below half-time attendance
  • Loan Status IA to IG

19
Enrollment Reporting
  • When student re-enters school
  • Loan Status RP to DA

20
Enrollment 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

21
Enrollment Reporting
  • Possible Effects of Non-Reported
    Enrollment Changes
  • Loan converted to repayment early
  • Loan entering repayment delayed
  • Borrower enters grace period without knowledge

22
Enrollment Reporting
  • Data Quality Monitoring

Inconsistencies between enrollment and loan
statuses
23
Enrollment 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

24
NSLDS Data Quality
3
25
NSLDS Data Quality
  • Examine how Financial Partners can improve NSLDS
    Data Quality
  • Timely reporting to GAs by lenders
  • Accurate Contact information
  • Accurate information

26
NSLDS 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

27
NSLDS Data Quality
  • Accurate Contact Information

28
NSLDS 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

29
NSLDS Data Quality Accurate Information
  • Resolve reporting errors
  • Close unconsummated loans
  • Report loan transfers

30
NSLDS Data Quality Accurate Information
  • Resolve reporting errors
  • Actively work reporting errors
  • Analyze loan errors holistically
  • Resolve for next submission

31
NSLDS Data Quality Accurate Information
  • Non-Closure of Unconsummated Loans
  • May cause GAs to assume the loan status
  • Creates conflicting information

32
NSLDS Data Quality
  • Accurate Information
  • Unconsummated Loan Aging

Assumed by the GA
33
NSLDS 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

34
NSLDS Data Quality
  • Accurate Information

35
NSLDS Data Quality Accurate Information
Number of Identifier Conflicts by Month
36
Cohort Default Rates
4
37
Cohort Default Rates
  • Recognize what data reported to NSLDS impacts the
    Cohort Default Rate (CDR)
  • Formula
  • Fields
  • Rates
  • Frequency
  • Adjustments

38
Cohort Default Rates
  • Borrowers who entered repayment in FY04 and
    defaulted in FY04 05
  • divided by
  • Borrowers who entered repayment in FY04

39
Cohort 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

40
Cohort Default Rates
  • Two Lender Calculations
  • Originating Lender Rate
  • Current Holder Rate
  • One GA Calculation

41
Cohort 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

42
Cohort Default Rates
  • CDR on the Web

43
Cohort Default Rates
  • CDR on the Web

44
Cohort 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
45
NSLDS Security
5
46
NSLDS Security
  • Define NSLDS Security rules and user
    responsibilities
  • DCL Gen 05-06
  • Audit Reports
  • Data Mining
  • User IDs

47
NSLDS 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

48
NSLDS 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

49
NSLDS Security
  • No Data Mining
  • Completely Automated Public Turing Test to Tell
    Computers and Humans Apart (CAPTCHA) tool
  • Monitoring top 20 users and organizations

50
NSLDS Security
  • User IDs
  • Will be disabled after 12 months of inactivity
  • Cannot be shared with colleagues
  • Obtain through FSAwebenroll.ed.gov

51
NSLDS Re-engineering
6
52
NSLDS 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).

53
NSLDS 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

54
NSLDS 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)

55
NSLDS Re-engineering
  • Goals for Re-Engineering
  • Improve Data Usefulness
  • Data Timeliness
  • Data Quality
  • Program Monitoring and Oversight

56
NSLDS 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

57
NSLDS Re-engineering
  • Students, Parents, and Schools Benefits
  • Timely information for making eligibility
    decisions
  • Enhanced data integrity
  • Program Information Parity

58
NSLDS 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

59
NSLDS Re-engineering
  • Next Steps
  • Collaboration with community stakeholders
  • Focus Groups being held in conjunction with both
    Federal Student Aid conferences
  • Definition of requirements

60
Thank 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
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