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Assigning Rehabilitation Loans to the U.S. Department of Education

Assigning Rehabilitation Loans to the U.S. Department of Education. Hope Merry Great Lakes Higher Education Sr. Manager –GA Accounting/Federal Reporting. 2016 Knowledge Symposium November 7 – 9, Sheraton Downtown, Nashville, TN. GA Rehab Program. FSA Perspective: Overview of Process

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Assigning Rehabilitation Loans to the U.S. Department of Education

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  1. Assigning Rehabilitation Loans to the U.S. Department of Education Hope Merry Great Lakes Higher Education Sr. Manager –GA Accounting/Federal Reporting 2016 Knowledge Symposium November 7 – 9, Sheraton Downtown, Nashville, TN

  2. GA Rehab Program FSA Perspective: • Overview of Process • Overview of GA Participation • Process Tips • Post Rehab Activities GA Perspective: • Programing Phase • Testing Phase • Program Challenges 2016 Knowledge Symposium November 7 – 9, Sheraton Downtown, Nashville, TN

  3. Assignment of Rehabs to ED

  4. FSA Perspective Overview of Participation • 5 GA’s Currently Participating • 4,043 borrowers/ 12,638 loans/ 16.2 million in collection cost • 0 GA’s Approved not executed • 2 additional GA’s indicated interested in program but have not tested 2016 Knowledge Symposium November 7 – 9, Sheraton Downtown, Nashville, TN

  5. FSA Perspective • Process Tips: • Send email to Great Lakes (GARehabProgram@glhec.org) when you are ready to begin testing or have questions. • Testing set-up process takes at least 2 weeks. • Follow file layouts and specification guides • Most Common Error: • Sending incorrect image types in EA80 file (i.e. XLSX docs which are not permitted) 2016 Knowledge Symposium November 7 – 9, Sheraton Downtown, Nashville, TN

  6. FSA Perspective • NSLDS Technical Update • https://ifap.ed.gov/nsldsmaterials/attachments/GA201602TechUpdate.pdf • “Once the loan has been successfully received and reported on by Great Lakes, Great Lakes will ensure that the appropriate repurchase details and change in loan status are updated in NSLDS.” • Great Lakes updates NSLDS with the repurchase information and loan status, the GA’s do not need to report those when reporting the transfer to Great Lakes 581.. 2016 Knowledge Symposium November 7 – 9, Sheraton Downtown, Nashville, TN

  7. FSA Perspective – Post Rehab Borrower Experience Borrower Outreach: • Welcome Letter sent to borrower upon receipt of loan(s) • Courtesy Call to borrower informing them Great Lakes is now their servicer • Monthly Billing Statements sent 2016 Knowledge Symposium November 7 – 9, Sheraton Downtown, Nashville, TN

  8. FSA Perspective – Post Rehab Borrower Experience Borrower Loan Status: • Borrower placed in forbearance for 3 months to allow them time to chose new repayment plan such as Income Driven Repayment Plan. • $5.00 monthly payment while in forbearance status • If no repayment plan selected, placed in Standard Repayment after 3 months with increased payment amount. Goal: • Place borrowers in a repayment plan they can afford 2016 Knowledge Symposium November 7 – 9, Sheraton Downtown, Nashville, TN

  9. GA Perspective • Programing Phase • Ease of Commercial Servicer to EA27 • Interest Rates • Military Benefits • EA80 • Testing Phase • Expectations • Time 2016 Knowledge Symposium November 7 – 9, Sheraton Downtown, Nashville, TN

  10. GA Perspective Program Challenges: • Limbo borrowers • Continuation of payment requirements • 14 day waiting period • Potential for Direct Loan Consolidation • Ending of Payment Arrangements 2016 Knowledge Symposium November 7 – 9, Sheraton Downtown, Nashville, TN

  11. GA Perspective Program Differences: • Rounding in calculation of rehab fees • Payment forwarding • Potential Offset Challenges 2016 Knowledge Symposium November 7 – 9, Sheraton Downtown, Nashville, TN

  12. Questions? 2016 Knowledge Symposium November 7 – 9, Sheraton Downtown, Nashville, TN

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