Claims Processing

1
Claims Processing

• Ron Stroud
• TG
• Bobbi Pulley
• Iowa College Student Aid Commission

2
Default Claims

• Paper claims versus CAM
• Documentation requirements
• HEOA requires two post-default notices
• Simple and understandable
• Available options to remove default
• Applicable fees and conditions
• Common Manual sections 13.1 and 13.6

3
Post-Claim Sampling

• Approved July 15, 2008
• Insures data integrity
• Random sample of 29 claims
• Quarterly during federal fiscal year
• Servicing and payment histories
• Fatal versus non-fatal errors
• Year-end reconciliation

4
Ineligible Borrower

• Claim Form Addendum-Ineligible Borrower/Identity
  Theft
• Ineligible borrower classification
• NSLDS Technical Update GA-2008-04
• Fraud conviction/no fraud conviction
• Declared default if borrower fails to repay
  within 30 days of final demand letter

5
Ineligible Borrower

• Claim must be filed between 30th and 120th day
  after final demand letter
• NSLDS loan status DF or FR
• Common Manual section 13.6.B

6
Identity Theft

• Claim Form Addendum-Ineligible Borrower/Identity
  Theft
• Perpetrator demographics
• Requires documentation of conviction
• Claim must be filed within 60 days of receiving
  complete loan discharge documentation

7
Identity Theft

• NSLDS loan status FR
• Borrower identifiers changed to perpetrator
• Common Manual section 13.8.E

8
Total/Permanent Disability

• Three-year conditional discharge
• Assignment to Education Department
• Partial discharge of consolidation loans
• HEOA allows discharge based on VA determination
  of unemployability due to a service connected
  condition

9
Total/Permanent Disability

• HEOA introduces 60-month definition
• Subject to negotiated rulemaking
• Effective July 1, 2010
• Common Manual section 13.8.G

10
TPD Assignment Process

• Original or certified copy Loan Discharge
  Application Total and Permanent Disability
• Validation of physicians license
• Promissory note(s)
• Location of authoritative copy for e-signed
  promissory notes
• Assigned via SAIG or paper assignment form

11
Death

• Review using CCI
• Documentation of death
• Original death certificate or
• Certified copy or
• Accurate and complete photocopy of original or
  certified copy

12
Death

• NSLDS Statuses
• DD Defaulted, then died
• DE Death
• NEW PZ PLUS child death
• Common Manual section 13.8.C

13
Bankruptcy

• Claim filing
• Chapter 12 or 13
• Chapter 7 or 11 is converted to 12 or 13
• Undue hardship (adversary proceeding)
• Review using CCI
• Documentation of bankruptcy
• Notice of bankruptcy filing
• Proof of claim

14
Bankruptcy

• Lender repurchase if loan is non-dischargeable
  and bankruptcy has concluded
• Common Manual section 13.8.A

15
Teacher Loan Forgiveness

• Teacher Loan Forgiveness application
• 5,000 forgiveness
• 17,500 forgiveness
• Full-time teacher for 5 consecutive, complete
  academic years
• Chief administrative officer certification

16
Teacher Loan Forgiveness

• Low-income school or educational service agency
• https//www.tcli.ed.gov/CBSWebApp/tcli/TCLIPubScho
  olSearch.jsp
• Now Reported on NSLDS Loan History Screen
• Common Manual section 13.9.B

17
Miscellaneous Discharge

• False Certification by the school
• Ability to benefit
• Disqualifying status
• Unauthorized signature/unauthorized payment

18
Miscellaneous Discharge

• Unpaid Refund
• Closed School
• Common Manual sections 13.8.D, 13.8.H, 13.8.B

19
Questions???