Federal Student Aid Federal Family Education Loan (FFEL)

Data Flow Reengineering Focus Group

Orlando, FL

Sunday, October 29, 2006

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Agenda

• Introductions

• Schedule

• Objectives

• Background

• Current Improvement Ideas

• Breakout Session

• Closeout

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Introductions

Provide::• Name• Organization• Stage of the FFEL lifecycle you

predominately work with

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Schedule

Time Agenda Topic Description

1:00pm to 1:45pmBackground and Focus Group Vision

Purpose of this session is to present opening remarks, set focus group objectives and expectations, provide background, and introduce current improvement ideas

1:45pm to 3:15pmBreakout Sessions

(with breaks as needed)

Attendees will break out into four facilitated discussion groups covering different stages of the FFEL lifecycle

3:15pm to 3:40pm Break

3:40pm to 4:50pmBreakout Session Presentations

Attendees will reconvene into one group; Federal Student Aid facilitators will present ideas generated during breakout sessions and open the floor for further discussion

4:50pm to 5:00pm CloseoutFederal Student Aid will provide closing remarks and discuss next steps

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Ground Rules

• Feel Free to Express All Ideas• Silence cell phones, blackberries, etc.• Contractual implications/questions are

off limits for discussion• Respect everyone’s opportunity to

participate, provide input, and feedback

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Background

• Federal Student Aid's core strategic objectives include:

• Integrate systems and provide new technology solutions

• Improve program integrity

• Improve products and services to provide better customer service

• To achieve these strategic objectives, several key initiatives were introduced:

• Borrower Services

• ADvance

• Integrated Partner Management (IPM) System

• Information Framework

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Background

• Borrower Services Initiative: Started in FY 2004 to integrate Federal Student Aid's disparate back-office legacy student financial

• ADvance Initiative: Started in FY 2005 to modernize Federal Student Aid's core front office business functions

• IPM system Initiative: Started FY 2006, will integrate the eligibility, certification, demographic, financial, audit and default rate information received from schools, lenders, guaranty agencies and servicers

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Background

Information Framework (IF) Initiative

• Started in FY 2003, the goal of the IF is to ensure that accurate and consistent data is exchanged among:

• Federal Student Aid systems and employees

• Customers

• Partners

• Will improve business operations and data management functions by centralizing data transformation services

• The IF will replace existing functionality including the National Student Loan Data System (NSLDS)

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Background

Information Framework (IF) Initiative (continued)

• Will facilitate the flow of business data across the enterprise

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Background

• Federal Student Aid data strategy efforts:

• Documented as-is business processes

• Developed Target State Vision (TSV)

• Analyzed and documented gaps in current understanding

• Conducted an internal analysis of as-is FFEL data flows

• Developed internal ideas on ways to improvement the FFEL program

• The purpose of today's focus group is to:

• Generate ideas for improving the FFEL program's data flow

• Document your feedback on current Federal Student Aid ideas

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Current Improvement Ideas

• Federal Student Aid's goal is to streamline the FFEL reporting process and make it easier for our partners to conduct business with us

• Our current improvement goals are grouped into three areas:

Data CollectionCapturing the data needed to meet business and reporting requirements; eliminating unnecessary and duplicative data collection requirements

Data Process FlowsGetting the right data, to the right place, at the right time

Data IntegrityPreserving the reliability and condition of FFEL data so that it is consistently defined and maintained during the lifecycle of a FFEL loan

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Current Improvement Ideas

• Based on our improvement goals, we have identified the following initial high-level improvement ideas

Data Collection

Data Process Flows

Data Integrity

• Data Integrity Standards

• Common Identifier Methodologies

• Link Data Collection to Business Requirements

• Timeliness of Data Consistent with Business Requirements

• Loan Holder Responsible for Reporting

• Single Federal Student Aid Gateway

• Reporting Standards

• Consolidation Standards

GOALS

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Current Improvement Ideas

• Develop and implement standard data definitions, consistent edits, and collection methods

• Standard data definitions and processes

• Adoption of standards

Data Integrity Standards

Data Integrity Standards

Common Identifier Methodologies

Link Data Collection to Business Requirements

Timeliness of Data Consistent with Business Requirements

Loan Holder Responsible for Reporting

Single Federal Student Aid Gateway

Reporting Standards

Consolidation Standards

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Current Improvement Ideas

• Adopt unique and immutable identifiers

• Specific identifiers include:• Enterprise Aid Identifier (Aid ID)• System ID (SID) • Routing ID (RID)• Transaction ID (TID)

Common Identifier Methodologies

Data Integrity Standards

Common Identifier Methodologies

Link Data Collection to Business Requirements

Timeliness of Data Consistent with Business Requirements

Loan Holder Responsible for Reporting

Single Federal Student Aid Gateway

Reporting Standards

Consolidation Standards

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Current Improvement Ideas

• Enterprise Aid Identifier (Aid ID): A consistent methodology for defining and maintaining the uniqueness of an aid instance (i.e., a specific loan)

• System ID (SID): A consistent methodology for defining a student, parent, or borrower

• Routing ID (RID): A consistent methodology for defining partners such as schools, lenders, servicers, and guaranty agencies

• Transaction ID (TID): Use Institutional Student Information Record (ISIR) transaction identifiers to ensure awards are based on documented eligibility

Common Identifier Methodologies (continued)

Data Integrity Standards

Common Identifier Methodologies

Link Data Collection to Business Requirements

Timeliness of Data Consistent with Business Requirements

Loan Holder Responsible for Reporting

Single Federal Student Aid Gateway

Reporting Standards

Consolidation Standards

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Current Improvement Ideas

• Collect the data needed to meet business requirements

• Eliminate unnecessary and redundant data collection

• Integrate data usage

Link Data Collection to Business Requirements

Data Integrity Standards

Common Identifier Methodologies

Link Data Collection to Business Requirements

Timeliness of Data Consistent with Business Requirements

Loan Holder Responsible for Reporting

Single Federal Student Aid Gateway

Reporting Standards

Consolidation Standards

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Current Improvement Ideas

• Timeliness of data consistent with business requirements

• Loan holder responsible for reporting

• Single Federal Student Aid Gateway

Data Integrity Standards

Common Identifier Methodologies

Link Data Collection to Business Requirements

Timeliness of Data Consistent with Business Requirements

Loan Holder Responsible for Reporting

Single Federal Student Aid Gateway

Reporting Standards

Consolidation Standards

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Current Improvement Ideas

Adopt industry standards across the FFEL program• Use and or modify existing standards as appropriate

• Create new standards where needed

Reporting areas that could benefit from standardization include:• Student/borrower and aid identification

• Servicing activities

• Claims

• Consolidations (loan verification certificates)

Automation tools• XML Registry and Repository

• XML schemas

• Digital imaging

Reporting Standards

Data Integrity Standards

Common Identifier Methodologies

Link Data Collection to Business Requirements

Timeliness of Data Consistent with Business Requirements

Loan Holder Responsible for Reporting

Single Federal Student Aid Gateway

Reporting Standards

Consolidation Standards

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Current Improvement Ideas

• Definitively link consolidation loans to their underlying loans through the use of standard loan identifiers (i.e., the Aid ID

• Standardize loan verification and payoff processes

• Use date certain payoff totals during consolidations

Consolidation Standards

Data Integrity Standards

Common Identifier Methodologies

Link Data Collection to Business Requirements

Timeliness of Data Consistent with Business Requirements

Loan Holder Responsible for Reporting

Single Federal Student Aid Gateway

Reporting Standards

Consolidation Standards

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Breakout Session

• We are now going to break out into four individual groups where we will lead facilitated discussions on the FFEL lifecycle

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Breakout Session Topics

Certification through Entering Repayment

Repayment through Closure (non-claims)

Claim Filing through Closure

Consolidations

• Establish the person record (FAFSA/ISIR process)• Determine aid eligibility• Receive student and school aid award records• Process promissory notes• Distribute funds for aid awards

• Initiate the borrower repayment process • Perform exit counseling• Conduct servicing activities• Includes delinquency status; does not include default status

• File for default • File for discharge (disability, death, bankruptcy, etc.)• File for loan assignment• Determine claim eligibility• Conduct default servicing activities • Request reinsurance

• Initiate a consolidation request• Verify consolidation eligibility •Send/receive Loan Verification Certificates (LVC)• Payoff underlying loans• Communicate with borrower

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Closeout

• Thank you for participating in our first FFEL Data Flow Reengineering Focus Group

• Document feedback and new ideas discussed today

• Incorporate feedback into FFEL data flow reengineering efforts

• Continue community dialogue

• Work in partnership to improve FFEL data flow