sallie mae servicing of department of education loans – opennet

SALLIE MAE SERVICING OF
DEPARTMENT OF EDUCATION
LOANS – OPENNET ENHANCEMENTS
TRAINING
October 2009
AGENDA
►
ED Servicing Program Overview
 Program Information
 Sallie Mae ED Servicing Status
►
OpenNet Enhancements
 Identify and view ED Serviced loans
 Return, Refund and Reallocation process
 Reports
►
Consumer Changes
• Contact Information
1
©2009 Sallie Mae, Inc. All rights reserved.
ED SERVICING PROGRAM OVERVIEW
►
Program Information
 In June , 2009 The Department of Education (ED) announced the
award of four additional servicer contracts to service loans
purchased by the Department. Sallie Mae is one of the servicers.
 Loans purchased by the Department, the Department becomes
the owner of the loan and assumes all servicing responsibilities.
 Upon purchase, both the prior FFEL loan holder and the
Department correspond with the borrower about the purchase
and servicing of his or her loan
 In early September, Department started assigning FFEL
purchased loans to four new servicers.
 FFEL Purchased Loan will be identified in the NSLDS and both
borrower and his or her school will be able to view servicer code
and name associated with each loan.
 Department is developing a new NSLDS report that will list and
provide pertinent information for all loans that have been
assigned to servicers.
2
©2009 Sallie Mae, Inc. All rights reserved.
ED SERVICING PROGRAM OVERVIEW
►
Loans Eligible to be Purchased by the Department:
 The loans have a loan period that includes or begins on or after
July 1, 2008
 The loans were first disbursed between May 1, 2008, and June
30, 2009
 The loans are fully disbursed by September 30th
 The loans have borrower benefits no greater than a 0.25
percentage point interest rate reduction for auto-debit
►
Sallie Mae ED Servicing Status
 On September 10th, Sallie Mae began selling loans to the
Department
 On September 14th, Sallie Mae sold approximately 200,000 loans
 On October 14th , Sallie Mae will sell approximately 4.1 million
loans to the Department.
3
©2009 Sallie Mae, Inc. All rights reserved.
ED SERVICING PROGRAM OVERVIEW
►
Loan Sale Timeline
 9 days before actual loan sale date – the loan will be locked by
the lender, meaning no additional processing can occur.
 Approximately 3-4 days before actual loan sale date – Welcome
packets, which include loan processing instructions, will be sent
to schools with loans serviced by Sallie Mae.
 Upon the sale - The borrowers will be sent a “Welcome” letter
advising that their loan is now being serviced by Sallie Mae on
behalf of the Department of Education. The letter will also
provide the new contact information (phone number and
payment address).
 Once a loan is sold, schools can no longer request changes that
increase the balance of ED loans (reissues, reinstates, adding
disbursements).
4
©2009 Sallie Mae, Inc. All rights reserved.
OPENNET ENHANCEMENTS
►
Identify and view ED Serviced loans
• Access to view ED Serviced Loans
• Query and view ED Serviced Loans
• View on NSLDS
►
Return, Refund and Reallocation process
• Methods of Returning Funds
• Process Examples
• Process Matrix
►
Reports
• Custom Loan Sold Report
• Document Direct Report
5
©2009 Sallie Mae, Inc. All rights reserved.
OPENNET – ADMIN ACCESS
OpenNet Administrators
will need to give access
rights to the ED Servicing
screens in OpenNet WLD
6
©2009 Sallie Mae, Inc. All rights reserved.
OPENNET – ADMIN ACCESS
OpenNet Administrators
can give access rights to
each of the ED Servicing
screens in OpenNet WLD
7
©2009 Sallie Mae, Inc. All rights reserved.
OPENNET – INQUIRY
School can look up
loans sold to ED on
the “View/Change
Loan Data” screen
Loans will be labeled “Sold to
the Department of Education”
8
©2009 Sallie Mae, Inc. All rights reserved.
OPENNET – VIEW ED SERVICED LOANS
9
©2009 Sallie Mae, Inc. All rights reserved.
OPENNET – ED SERVICED LOAN DISPLAY
The Servicing Page include:
•
•
•
•
•
•
•
•
•
•
10
View Status history
View Details
Payment History
Forbearance Information
Deferment Information
View Borrower
Demographics
Balance Details
View Payment Address
View Meteor Data (if
profiled)
Loan Statuses
©2009 Sallie Mae, Inc. All rights reserved.
NSLDS
Schools can also look up
loans sold to ED on the
NSLDS database
Servicer codes are:
ACS
577
Sallie Mae
578
AES/PHEAA 579
NelNet
580
Great Lakes 581
https://www.nslds.ed.gov/nslds_FAP/secure/logon.jsp
11
©2009 Sallie Mae, Inc. All rights reserved.
Return, Refund and Reallocation Process
Once a loan
has been
the school may still need to
return or refund money on the loan
based on the student’s request
or changes to the student’s eligibility
12
©2009 Sallie Mae, Inc. All rights reserved.
RETURN, REFUND AND REALLOCATION PROCESS
Methods of returning funds on loans
sold to ED
CommonLine
OpenNet WLD
Paper Manifest w/Paper Check
(Individual or Master Check)
13
©2009 Sallie Mae, Inc. All rights reserved.
SCHOOL PROCESS USING COMMONLINE - ACH
If a refund or return of funds needs to be processed on loans sold to
ED:
1.
2.
3.
4.
School will generate a change transaction send file from Financial
Aid Management System
School will send file to Sallie Mae for processing
Sallie Mae will process the transaction
School will need to send the funds via ACH to the Department of
treasury
NOTE: If your school is subscribed to auto-debit, the Department of
Education will auto-debit the funds from the school’s account
14
©2009 Sallie Mae, Inc. All rights reserved.
SCHOOL USING OPENNET
15
©2009 Sallie Mae, Inc. All rights reserved.
SCHOOL USING OPENNET
For refunds or returns on
a larger amount of loans,
school will download the
ED Return Manifest and
then enter data on all
refunds and returns
requested
16
©2009 Sallie Mae, Inc. All rights reserved.
SCHOOL USING OPENNET
School will then use the
“Browse” feature to find
the completed ED
Manifest and then use
the “Import” function to
send the manifest to
Sallie Mae
17
©2009 Sallie Mae, Inc. All rights reserved.
SCHOOL USING OPENNET
1
If the school needs to
process refunds or
returns on a small
amount of loans, they
can enter the data here,
then save the record,
validate it and then
submit it
2
18
©2009 Sallie Mae, Inc. All rights reserved.
SCHOOL USING CHECK TO RETURN FUNDS
19
©2009 Sallie Mae, Inc. All rights reserved.
SCHOOL USING CHECK TO RETURN FUNDS
School will download the
ED Return Manifest and
then enter data on all
refunds and returns
requested
Once completed, the ED
Return Manifest should
be printed, then mailed to
the ED along with the
check for the returned
funds
20
©2009 Sallie Mae, Inc. All rights reserved.
Return/Refund Matrix
21
21
©2009 Sallie Mae, Inc. All rights reserved.
REALLOCATION PROCESS
•
A reallocation is requested when subsidized and unsubsidized Federal Stafford
loan amounts are adjusted per the school’s request, due to a change in the
borrower’s eligibility .
•
Reallocations to Department of Education owned loans cannot increase
the total loan amount
•
The ED Reallocation Manifest is downloadable from the Loan Delivery
Training Resources page at the bottom of the OpenNet Main Menu page
•
Send the completed manifest to SallieMae-ED-Email@salliemae.com.
•
Insert “ED-Reallocation Request” in the subject line of the e-mail.
•
Schools can also send reallocation requests via a CommonLine Change
Transaction Send File
•
Schools can call CollegeServ at 1-888-2School for assistance in
completing the form
22
©2009 Sallie Mae, Inc. All rights reserved.
23
23
©2009 Sallie Mae, Inc. All rights reserved.
REPORTS ON ED SERVICED LOANS
Select “Loans Sold to the
Department of Education”
and then select “Run”
Schools can run a custom
report to find loans sold to
The Department of Education
by selecting “Create FFELP
Custom Reports”
24
©2009 Sallie Mae, Inc. All rights reserved.
REPORTS ON ED SERVICED LOANS
Schools will automatically be given access to 3 new reports under a new folder labeled
“ED-Reporting” under the “Servicing” folder in Document Direct for Internet (DDI)
New ED Report ID: EFLM018101
Report on borrowers whose loans are delinquent greater than one day.
Printable format
New ED Report ID: EFLM018102
Report on borrowers whose loans are delinquent greater than one day.
Downloadable into a spreadsheet
New ED Report ID: EDFSCDLQ01
Report on borrowers whose loans are delinquent 60 Days or more
25
©2009 Sallie Mae, Inc. All rights reserved.
MANAGE YOUR LOANS
www.salliemae.com
Borrowers may have to
manage loans that are owned
by Sallie Mae and loans that
are owned by the Department
of Education
26
©2009 Sallie Mae, Inc. All rights reserved.
CONTACT INFORMATION
Phone Numbers
► New ED Borrower Phone Number: 1-800-722-1300
27
►
New ED Correspondence Address:
Sallie Mae – Department of Education Loan Services
P.O. Box 9635
Wilkes- Barre, PA 18773-9635
►
ED Monthly bills:
Sallie Mae - Department of Education Loan Services
P.O. Box 740351
Atlanta, GA 30374-0351
►
Checks should be made payable to:
Sallie Mae – Department of Education Loan Services
©2009 Sallie Mae, Inc. All rights reserved.