Confessions of Rogue Student Loan Collector - Student Loan Blueprint
Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl...
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Transcript of Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl...
![Page 1: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/1.jpg)
Session 14
Student LoanDelinquency Management
Mark Walsh
U.S. Department
of Education
Bill Kohl
National Student
Loan Program
![Page 2: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/2.jpg)
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What We’ll Talk About:• The Big Picture• Reducing delinquent loans
– Why should I get involved?– What should I do?
• Manage Delinquency and Mitigate Default – Examples of guarantor and school activity
![Page 3: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/3.jpg)
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Source: National Student Loan Data System (NSLDS),CSB Data Mart (July 31, 2005)
Student Loan Basics• Approximately $400 billion in
outstanding federal student loans• Nearly 30 million borrowers• More than 50% of the outstanding FFEL
and DL balance is in consolidation• The average outstanding loan balance in
consolidation is $18,240
![Page 4: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/4.jpg)
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Type of Loans Number of loans
% to
Total
Total Principal &
Interest
% to
Total
Stafford Sub. 39,048,155 49.1% $107,325,080,770 26.7%
Stafford Unsub. 22,036,060 27.7% $75,908,037,857 18.9%
Consolidation 10,432,719 13.1% $190,301,070,660 47.4%
PLUS 2,978,623 3.7% $16,245,320,583 4.0%
SLS 803,898 1.0% $3,321,484,742 0.8%
Refinanced 56 0.0% $205,809 0.0%
FISL 324,974 0.4% $274,390,715 0.1%
Perkins 3,867,933 4.9% $8,461,713,993 2.1%
Total 79,492,418 100.0% $401,837,305,129 100.0%
Average per Consolidated Loan 18,241$
Average per Non-Consolidated Loan 3,063$
Combined Title IV Loans
Source: NSLDS and Common Services for Borrowers (CSB) Data Mart (July 31, 2005)
Composition of the OutstandingLoan Portfolio
![Page 5: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/5.jpg)
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Type of Loans Number of loans% to Total
Total Principal & Interest
% to Total
Stafford Sub. 24,953,347 50.2% 65,789,040,209$ 24.1%Stafford Unsub. 15,405,457 31.0% 53,731,132,895$ 19.7%Consolidation 7,123,780 14.3% 141,896,541,085$ 52.0%PLUS 1,984,025 4.0% 10,605,833,577$ 3.9%SLS 203,078 0.4% 624,594,911$ 0.2%Refinanced 20 0.0% 60,842$ 0.0%Total 49,669,707 100.0% 272,647,203,519$ 100.0%
Average per Consolidated Loan 19,919$ Average per Non-Consolidated Loan 3,073$
FFELP LoansNon-defaulted
Source: NSLDS (July 31, 2005)
Composition of the OutstandingLoan Portfolio
![Page 6: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/6.jpg)
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Type of Loans
Number of
loans
% to
Total
Total Principal &
Interest
% to
Total
Stafford Sub. 8,367,739 48.8% 24,198,134,843$ 28.0%
Stafford Unsub. 5,265,757 30.7% 17,742,313,004$ 20.5%
Plus 803,704 4.7% 4,663,194,125$ 5.4%
Consolidation 2,719,901 15.9% 39,930,285,841$ 46.1%
Total 17,157,101 100.0% 86,533,927,813$ 100.00%
Average per Consolidated Loan 14,681$
Average per Non-Consolidated Loan 3,228$
Direct LoansNon-defaulted
Source: CSB Data Mart (July 31, 2005)
Composition of the OutstandingLoan Portfolio
![Page 7: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/7.jpg)
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The Primary Players in Repayment
• Borrower
• School
• Lender/Servicer
• Department of ED
• Guaranty Agency
![Page 8: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/8.jpg)
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Things Happen During Repayment• Borrower pays off loan in 10 years or less
with no “hiccups”• Borrower has a few “hiccups” and uses
forbearance or deferment entitlements• Borrower has more “hiccups,” becomes
delinquent and eventually defaults• Borrower never intended to repay and
defaults
![Page 9: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/9.jpg)
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Example: Payoff In 10 Years Or Less• Student borrowed $18,000 while in
school
• Selected standard repayment option
• Monthly payments are X $$$ for 120 months
• Total paid by borrower is $19,450
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Negative Impact
• Borrower – None
• School – None
• Lender/Servicer – None
• Department of ED – None
• Guaranty Agency - None
![Page 11: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/11.jpg)
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Example: Borrower Has a Few “Hiccups”• Borrower is laid off from his/her job and
receives a 24-month deferment• Borrower receives
discretionary/administrative forbearance for 12 months to prevent default
• Borrower finally pays off loan in 13 years and pays X $$$, including capitalized interest, for a total payoff of $23,750
![Page 12: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/12.jpg)
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Negative Impact• Borrower
– Increased cost due to capitalized interest on forbearance (ED pays on deferment)
– Longer obligation
• School– None
• Lender/Servicer– Additional servicing costs
![Page 13: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/13.jpg)
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Negative Impact (continued)
• Department of ED– Additional interest paid during
deferment on FFEL loan– Periods of non-earning asset if a
Direct Loan
• Guaranty Agency– None
![Page 14: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/14.jpg)
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Example: More “Hiccups” Becomes Delinquent And Eventually Defaults• Borrower is laid off his/her job, receives a
deferment for 24 months• Borrower receives
discretionary/administrative forbearance for 12 months to prevent default
• Borrower becomes a “rolling” delinquent payer
• Borrower eventually defaults
![Page 15: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/15.jpg)
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Negative Impact
• Borrower– Increased cost due to capitalized
interest on forbearance (ED pays on deferment)
– Adversely impacts credit
• School– None
![Page 16: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/16.jpg)
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Negative Impact (continued)
• Lender/Servicer– Additional servicing costs due to extended period of loan and
due diligence activity– Loss of “risk share” (FFEL)
• Department of ED– Increased costs: payment of claim (FFEL)– Loss of interest income (Direct Loan)– Collections costs
• Guaranty Agency– Increased costs due to collection activity– Loss of “risk share”
![Page 17: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/17.jpg)
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Example: Borrower Never Makes Payment and Defaults• Borrower becomes a “rolling”
delinquent payer
• Borrower eventually defaults
![Page 18: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/18.jpg)
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Negative Impact
• Borrower– Increased cost due to capitalized
interest
– Adversely impacts credit
• School– Increases CDR
![Page 19: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/19.jpg)
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Negative Impact (continued)
• Lender/Servicer– Due diligence servicing costs– Loss of “risk share” (FFEL)
• Department of ED– Increased costs: payment of claim (FFEL)– Loss of interest income (Direct Loans)– Collection costs
• Guaranty Agency– Increased servicing and collection costs– Loss of “risk share”
![Page 20: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/20.jpg)
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Comparisons
• 1989-1990: 21% of undergraduates received Title IV financial aid
• 2003-2004: 46% of undergraduates received Title IV financial aid
![Page 21: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/21.jpg)
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Comparisons
Average Defaulted Loan as of 9/30/03:
$3,830
Average Defaulted Loan as of 9/30/04:
$3,940
Average Defaulted Loan as of 9/12/05:
$4,130
![Page 22: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/22.jpg)
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0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1997 1998 1999 2000 2001 2002 2003
4 Year Private
4 Year Public
2 Year Public
2 Year Private
CareerRepresents Direct Loan & FFEL Portfolio
Cohort Default Contribution by School Type
![Page 23: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/23.jpg)
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Represents Direct Loan Portfolio Only
Defaulter Characteristics• 84% did not receive their full 6 month grace
period due to late enrollment notification• 71% withdrew without completing studies• 56% had bad phone numbers• 83% were not successfully contacted by
phone during the 360-day collection effort during delinquency
![Page 24: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/24.jpg)
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Delinquency Management: Should I Be Concerned?• All schools contribute to the problem
– It’s not just about CDR– Dollars and Accounts
• Unnecessary costs to:– Borrowers– Schools– Servicers– Department of ED– Guaranty Agency
![Page 25: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/25.jpg)
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Step #1 Determine borrowers at risk to default
Step #2 Choose a strategy
Step #3 Implement it
I’d Like To Help
![Page 26: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/26.jpg)
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Take advantage of the opportunities to minimize delinquent borrowers at three stages:
#1 While borrower is enrolled #2 Before borrower leaves school #3 After borrower is gone
What Schools Can Do
![Page 27: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/27.jpg)
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1st Opportunity: While Borrower Is Enrolled• Entrance Counseling
• Borrower Education
• Financial Literacy
• Rights and Responsibilities
![Page 28: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/28.jpg)
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1st Opportunity: While Borrower Is Enrolled• Can you identify your potential
defaulters?• Is the student in the right program?• Does your program support student
success?• Where can you provide a helping hand?• Identify your student success allies
![Page 29: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/29.jpg)
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2nd Opportunity: Before Borrower Leaves School• Exit Counseling• For those who leave early
– Find out why they left and use this information!
– Collect updated contact numbers and addresses so you can reach them later
![Page 30: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/30.jpg)
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2nd Opportunity: Before Borrower Leaves School (continued) • Promptly update the enrollment change
Important Note: • Most defaulters do not receive their
full grace period– Why not?– Why is this important?– What is the solution?
![Page 31: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/31.jpg)
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3rd Opportunity: After The Borrower Is Gone• Borrowers in Late Stage
Delinquency– Who are these borrowers?– My lender was unsuccessful – How
can I make a difference?– Late Stage Delinquency Assistance
(LSDA) Why and how does it work?
![Page 32: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/32.jpg)
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Student Perspective: Repayment/Recovery Cycle
In School
Grace Repayment Technical Default
Default
30 Day
60 Day
90 Day
120 Day
150 Day
180 Day
210 Day
6 months grace
270 Days
240 Day
360 Days
300 Days
330 Days
Options: Make Payment to Bring the Loan Current, Rehabilitate Loan (12 on-time payments) Obtain Deferment or Forbearance to Temporarily Suspend Repayment (but Capitalize Interest), Consolidate
Loans to Lower Total Payments Including ICR/Income Sensitive Loans, Default
If We Can Contact the Borrower, We Will Have a Solution for Their Problem.
Problems: Ruined Credit, Collection Agencies, Wage Garnishment, Treasury Offset, Bankruptcy, Possible Impact on Employment/Licensing, etc.
Solutions: Win a Lottery and Pay Off Loan, Arrange Compromise Payoff, Make Satisfactory Repayment Arrangementsr, Rehabilitate Loans through 12 On-time Payments, Consolidate Loans
Source: Borrower Services/Portfolio Risk Management
![Page 33: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/33.jpg)
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Stafford Borrower Delinquency Pattern
12 Month Average
0%
5%
10%
15%
20%
25%
30%
35%
31-60 61-90 91-120 121-150 151-180 181-210 211-240 241-270 271-300 301-330 331-360
Days Past Due
Per
cen
tag
e o
f T
ota
l D
elin
qu
ency
Borrower Delinquency Pattern
Represents Direct Loan Portfolio Only
![Page 34: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/34.jpg)
Manage Delinquency and Mitigate Default
Bill Kohl
Vice President, Operations
National Student Loan Program
With resources and online tools from your partners
![Page 35: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/35.jpg)
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Today’s Topics
• Borrower Education
• Delinquency and Default Tools
• Additional Tools
• How Can Schools Help?
• Guarantor Partner Assistance
![Page 36: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/36.jpg)
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Borrower Education
• The work begins here…
• Help students manage their money and control debt with personal finance
• Interactive tools students can use to manage money
• Guarantor’s resources
![Page 37: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/37.jpg)
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Borrower Education (continued)Online student-friendly information…
• Budgeting– CNN Money, Mapping Your Future
• Career Planning– Job Gusher, Monster Trak
• Credit Bureau information– Experian, Trans Union, Equifax
• Money management– Bankrate, Federal Reserve
• Borrower Education Online Tools (see handout)
![Page 38: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/38.jpg)
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Interactive Courses• Credit and Debt
– Provides information on budgeting, credit, and student loans
• At the Bank– Helps students understand how banks and bank
accounts work
• Home Finance– Teaches fundamentals of finding, renting, and
owning a home
![Page 39: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/39.jpg)
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Online tools help borrowers manage loans and understand options
Delinquency and Default Tools
• Cancellations, Deferments, Forbearances, Forgiveness, and Consolidation– Dept of ED, Guarantor’s websites
• Knowing where your loans are– NSLDS, Clearinghouse
• Understanding repayment plans and options– Mapping Your Future, Dept of ED, GA’s
• Delinquency/Default Online Tools (see handout)
![Page 40: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/40.jpg)
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Additional Tools
• Loan summary
• Exit loan counseling
• Grace programs
![Page 41: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/41.jpg)
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How Can Schools Help?
• Default Aversion Assistance Report– Identifies delinquent borrowers
– Letter generation
– Updated frequently
– Work borrowers you choose
– Phone calling tips
![Page 42: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/42.jpg)
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Guarantor Partner Assistance
• Default Aversion Assistance– Request filed between 60 – 120 days
• Continue to work until resolved or default claim filed
• Default prevention activities include– Phone attempts– Letters
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NSLP Phone Attempts
• Current phone attempts– 3 attempts = 2 – week average– 5 attempts = 3 – week average– 30 attempts = 25 week average
• Borrower with good phone number– Averages 1.75 attempts per week
• Spanish-speaking representatives
![Page 44: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/44.jpg)
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Skip Tracing
• Directory assistance
• Internet services
• School inquiries
• References and contacts
![Page 45: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/45.jpg)
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Special Phone Campaigns
• Large balance loans
• Cohort default borrowers
• Late-stage delinquency
![Page 46: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/46.jpg)
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Letters
• One every month for seven months
• More assertive and stress urgency of their actions
• Letters in English and Spanish
![Page 47: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/47.jpg)
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Default Rescue Program
• Focus on borrowers who have a default claim filed
• “Last chance” to avoid the consequences of default
• Partner with lenders to help with last minute processing
![Page 48: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/48.jpg)
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Successes
• 53% of borrowers contacted are resolved• School’s cohort default rate positively
affected• Saves ED and taxpayers $$$• Borrowers kept out of default• Lenders, GAs, avoid loss• Win, Win!
![Page 49: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/49.jpg)
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Summary
• Education
• Retention
• Communication
• Restoration
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Questions?
![Page 51: Session 14 Student Loan Delinquency Management Mark Walsh U.S. Department of Education Bill Kohl National Student Loan Program.](https://reader035.fdocuments.us/reader035/viewer/2022062517/56649e7e5503460f94b812ff/html5/thumbnails/51.jpg)
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Thank you!
We appreciate your feedback and comments.
We can be reached at:
Mark Walsh FSA Default Prevention U.S. Department of Education (816) [email protected]
Bill Kohl Vice President - OperationsNational Student Loan Program (402) [email protected]