New York Statewide Default Prevention Project Graduate Symposium

1
New York Statewide Default Prevention
ProjectGraduate Symposium

• NYSFAA Conference
• November 6, 2006

2
Why We are Here

• Kickoff Event of Project
• NYSFAA and ED Partnership
• Guarantor Support
• Invite Grad School Participation

3
Background of ED Concerns Cohort Default
RatesDollars in DefaultPeople in Default
4
LSDA School Sample A word about the
data you will see on the following slidesTo
derive the dollars in default figures you will
see on the following slides, the loans that
entered into repayment during the FY04 period
(between 10/1/03 and 9/30/04) and met the
criteria for being included in the Cohort Default
Rate were identified. The Outstanding Principal
Balance was totaled to get the total dollars in
repayment.  And, for those loans with a default
claim, the Outstanding Principal Balance was
totaled to get the dollars in default. The
dollars-in default included in this presentation
are based on the Outstanding Principal Balance at
the time the FY04 Cohort Default Rate was
calculated, July 29, 2006.
5
Rates Dollars and People

• 
  
• Change
• National CDR FY03 4.5 FY04
  5.1 13.3
• National Dollars FY03 647.7m FY04
  800m 23.6
• New York CDR FY03 4.2 FY04 4.6
  9.5
• New York Dollars FY03 47.6m(2) FY04
  58.9m(3) 23.7
• New York Defaulters FY03 8,357
  FY04 9,795 17.2
• 
  

6
More Data Estimated

• 
  
• 
  Change
• Total Public (est) FY03 18.1m FY04 20.3m
  12
• Total Private(est) FY03 20m FY04
  24.3m 21.6
• Total Prop. (est) FY03 8.5m FY04
  12.3m 43.5
• FSA Does not publish official data at this
  level of detail. These are estimates (from the
  7/29/06 calculation) created for this
  presentation.
• 
  

7
More Data Estimated-

• 
  
• 
  Change
• Four Yr. Public (est) FY03 12.2m
  FY04 12.7m 4
• Four yr. Private (est) FY03 19.8m
  FY04 23.8m 20.4
• Aggregate Pri/Pub (est) FY03 32.3m FY04
  36.6m 13.4
• State Totals (est) FY03 67.8
  FY04 62.1 - 8.4
• FSA Does not publish official data at
  this level of detail. These are estimates (from
  the 7/29/06 calculation) created for this
  presentation

8
Defaulter Characteristics

• 89 did not receive the advantage of the full 6
  month grace period as a result of late enrollment
  notification (Sample)
• 93 were not successfully contacted by telephone
  during the 360 day collection effort (Sample)
• 98 delinquencies are corrected for borrowers
  your lender and GA contact personally (Sample)
• And.

9
Defaulter Characteristics

• The Crucial Link
• 76 withdrew from school and
• did not complete studies (actual)
• This is more than a financial aid issue.
• The financial aid office cannot solve this.
• Analysis of Federal Direct Loan Portfolio July
  2006

10
Grad School Concerns

• Program Completion
• Private/Alternative Loans
• Grad PLUS
• Others?

11
Two Broad Approaches

• - Financial Aid Solutions
• Enrollment Updating
• LSDA
• - Campus Wide Solutions
• Retention and Student Success
• Core Functions - Admission, Retention,
  Student Support Services, Graduation,
  Placement

12

• Making the Connection
• Increasing student success
• Retention
• Program Completion
• Graduation
• Will reduce default on your campus
• Cohort Default Rate
• Dollars
• Borrowers

13
Default Prevention is a necessary collaboration
between Financial Aid and Enrollment
Management Without this collaboration there is
no solution.
14
How do you want to go forward? Where do the
Grad Schools fit in? Will you choose a financial
aid solution? Will you join hands with campus
wide staff in enrollment management and
retention? Perhaps both solutions will work for
your school or your sector.
15
Questions and Comments

• Contact Information
• John Pierson
• John.pierson_at_ed.gov
• 404-562-6269
• Eileen Marcy
• Eileen.Marcy_at_ed.gov
• 215-656-3249