Functional Statements > Federal Student Aid

B. Business Operations

The Business Operations office is responsible for best in business service to aid recipients and schools and notifying aid recipients of repayment options, controlling delinquent/defaulted accounts, assessing portfolio risk, recommending proactive strategies and consolidating aid recipient loans. To accomplish this mission the Business Operations office is comprised of the following:

• Portfolio Performance Management Staff
• Application Operations & Delivery Services
• Financial Partners Services
• Borrower Services

Portfolio Performance Management Staff

The Portfolio Performance Management Staff is responsible for supporting the management and performance evaluation of Federal Student Aid's Title IV programs. The Portfolio Performance Management Staff examines and evaluates the performance, identifies risk exposure, and identifies and recommends actions to reduce fraud, waste, and abuse and ensure a performing earning portfolio for the Department of Education/Federal Student Aid and its partners. To accomplish this mission, the Portfolio Performance Management Staff:

• Develops and analyzes portfolio performance data for Title IV programs to ensure that management has the correct information to make informed decisions.
• Analyzes business strategies and results achieved, related to mitigating risk of loss to ensure opportunities are maximized to greatest benefit to taxpayers and aid recipients.
• Analyzes the increase of the degree of risk and significant changes as portfolio composition, risk levels, and external conditions change.
• Identifies and evaluates concentration of risk of loss in Title IV programs and recommends approaches to reduce and/or mitigate risk of loss to the taxpayer.
• Perform delinquency/default forecasts to assist in planning default prevention activities.
• Develops and coordinates implementation of default prevention strategies for the Borrower Services portfolio.
• Monitors and reports actions taken to reduce/mitigate risk for Title IV programs. Conducts regular internal analyses and evaluations of projects and success in meeting short and long-term objectives.
• Review recovery of default dollars and rate to ensure reporting reflects complete potential loss exposure to the government/taxpayer.

TOP

Application Operations & Delivery Services

Application Operations & Delivery Services is responsible for providing best in business services to schools and for managing the operations and information technology systems that deliver Title IV aid to students and schools. To accomplish this mission, Application Operations & Delivery Services is divided into two Divisions:

• School Services & Training Channel
• Program Operations Channel

School Services and Training Channel

The School Services and Training Channel have primary responsibility for providing best in business services to schools. To ensure best in business service is provided to schools, the Channel will leverage the data collected from its interactions with schools to participate in and support the requirements definition for the integration, implementation or enhancement of systems that are used by schools. To accomplish this mission, the School Services and Training Channel is divided into the following divisions:

• Training and Information Services Division
• School Outreach Division

In addition, the School Services and Training Channel proactively identifies the unique service needs of Historically Black Colleges and Universities, Hispanic Speaking Institutions, and Tribally Controlled Colleges and Universities and provides the assistance required to ensure their continued participation in any Title IV programs.

TOP

Training and Information Services Division

Within the School Services and Training Channel, the Training and Information Services Division is responsible for designing, developing, and delivering high quality learning products, publications and web products targeted to Federal Student Aid's school partners, and, as appropriate, Department of Education and operating staff. The Division also is responsible for interfacing with school partners to respond to inquiries and requests for information. To accomplish this mission, the Training and Information Services Division provides the following services:

• Develops training priorities that reflect Federal Student Aid's strategic goals and ensures that training products and services are aligned with these goals.
• Gathers and analyzes feedback from customers regarding satisfaction with learning products delivered.
• Ensures alignment of AODS presentation topics at state and regional conferences to the training goals.
• Manages requests and recommends AODS staff to present at state and regional conferences.
• Works with Federal Student Aid components and school partners to identify and analyze partner-learning needs and to develop and deliver training to meet these needs.
• Provides Federal Student Aid with standardized processes and tools for the effective design and development of training.
• Designs, develops, and delivers Title IV program training to school partners for national training programs and to internal Federal Student Aid staff.
• Coordinates the design, and development of learning products for school partners.
• Ensures Title IV program training opportunities are available to internal staff.
• Manages school partner training logistics; including registration system management, certificate preparation, training supplies, and securing training spaces.
• Manages the review, edit, and approval process for all paper-based and electronic school publications.
• Manages systems development and maintenance of various Federal Student Aid websites and services.
• Manages the development, review, edit, approval, and posting process of all content for standalone websites for schools.
• Partners with Customer Service Call Center to respond to questions from website users.
• Ensures a consistent look and feel across the websites for schools; gathers, analyzes, and recommends changes and enhancements to the website functionality based on customer feedback.
• Operates a toll-free technical inquiry line for financial aid professionals.

TOP

School Outreach Division

Within the School Services and Training Channel, the School Outreach Division is responsible for providing best in business service and product support to schools and partners. The Division also supports special initiatives with school partners, develops and manages the Quality Assurance Program and the Experimental Sites Program, and coordinates default management and prevention activities. To accomplish its mission, the School Outreach Division:

• Develops tools and guidelines to assist schools and Federal Student Aid staff to assess, attain, or improve compliance with Title IV Program requirements.
• Develops, implements, and monitors innovative performance-based approaches in student aid delivery, such as the Quality Assurance Program and the Experimental Sites initiatives.
• Collects and shares effective practices to help schools benefit from the success of others.
• Creates, and aligns community and enterprise-wide, default prevention strategies to meet the Department of Education performance goals.
• Provides assistance to schools in developing a plan to improve default management, including site visits, development of tools, and outreach activities.
• Develops and presents guidance to the community on cohort default rates and appeals.
• Calculates and publishes annual cohort default rates, processes appeals and challenges, and initiates administrative actions as required.
• Serves as a liaison between Federal Student Aid and stakeholders of proprietary postsecondary education (including members of the financial aid community).
• Provides technical assistance and resource management support for proprietary schools to ensure compliance with Title IV programs.
• Conducts or manages complex studies of new proposed legislation and regulations to determine impact on the proprietary school program.
• Orients and monitors the status of new schools to the Direct Loan (DL) Program.
• Improves operational and technical interfaces between Direct Loan schools and Federal Student Aid.
• Serves as a liaison between Federal Student Aid and the current Direct Loan Coalition or any other school organization that focuses on the DL Program.

TOP

Program Operations Channel

The Program Operations Channel is responsible for managing the operations and information technology systems that deliver Title IV aid to students and schools. To accomplish this, the Program Operations Channel includes the following Divisions:

• Campus-Based Systems and Operations Division
• Direct Loan Program Operations Division
• Pell Program Operations Division
• Application Processing Division
• Common Origination and Disbursement (COD) Division

In addition to the above Divisions, the Program Operations Channel provides program analysis and coordination, including the following:

• Measures, analyzes, and validates system metrics.
• Serves as a cross-program interface with Federal Student Aid Chief Financial Officer for financial reconciliation and annual audit requirements.
• Develops common reports and evaluations to be shared at an enterprise level.
• Monitors school compliance with reconciling unprocessed deobligations related to their Pell Grant and Campus Based Accounts in the Grant and Administrative Payment System (GAPS).
• Serves as Federal Student Aid business liaison with third-party software developers.
• Provides business direction for Common Record and Extensible Markup Language (XML) Repository in conjunction with Postsecondary Education Standards Committee.
• Manages Federal Student Aid trading partner access and data services enrollment functions. Campus-Based Systems and Operations Division.

The Campus-Based Systems and Operations Division is responsible for managing and accounting for Campus-Based program funds (Perkins Loans, Federal Work-Study, and Supplemental Educational Opportunity Grants) within Federal accounting standards, as well as program regulation/laws, with accurate and timely delivery of Campus-Based funds to institutions. Under the Campus-Based programs, schools annually submit a FISAP (fiscal operations report for the previous year and application for the coming year). To accomplish its mission, the Campus Based Systems and Operations Division:

• Manages, allocates, and accurately delivers Campus-Based program funds (Perkins Loans, Federal Work-Study, and Supplemental Educational Opportunity Grants) to institutions in a timely manner within federal accounting standards and program regulation laws and regulations.
• Manages the FISAP (fiscal operations report for the previous year and application for the coming year) software and processing of FISAP data.
• Places final Campus-Based award funds in the Grant Administration and Payment System (GAPs), and closes out awards in GAPs.
• Acts on requests for waivers from program requirements.
• Coordinates the Default Reduction Assistance Program.
• Manages a skip-tracing program for Perkins Loans.
• Manages liquidation of Perkins Loan Fund.
• Manages the eCampus –Based system and call center.

TOP

Direct Loan Program Operations Division

The Direct Loan Program Operations Division is responsible for providing program management oversight and performing Direct Loan Program coordination functions. To accomplish this mission, Direct Loan Program Operations Division:

• Ensures schools in the Direct Loan Program receive the appropriate amount of funding in a timely manner.
• Monitors Direct Loan schools' compliance with student-level reporting requirements, cash management principles, school reconciliation and closeout.
• Works with Grant Administration and Payment System (GAPs) and FSA Financial Management Service (FMS) staff to implement correct interface processes and procedures, to support reconciliation of Direct Loan program funds among financial management systems and at schools, and to collect Direct Loan funds from schools from prior years.
• Develops business rules and procedures for the administration of the Direct Loan Program at Federal Student Aid.
• Develops system requirements for the Common Origination and Disbursement (COD) system.
• Analyzes proposed and pending policies and regulations for systems and operational impacts, and assists in identifying systems requirements.
• Develops communications to schools about operational matters.
• Resolves Grants Administration and Payment System (GAPS) feeder system error file. Pell Grant Program Operations Division.

The Pell Grant Program Operations Division provides leadership to the financial aid community concerning Pell Grant Financial operations. To accomplish this mission, the Pell Grant Program Operations Division:

• Approves Pell Grant Funding adjustments for current year and prior years.
• Maintains the Pell Grants funds control and monitors the status of funds in the Department of Education Central Automated Processing System (EDCAPS) general ledger and the Pell Grant system.
• Coordinates with Department of Education Budget Services for budget execution activities including new award year set-up and initial authorization of funding to schools; requesting allotments; maintaining funds control; end of year closeout.
• Monitors schools' compliance with student-level reporting requirements for Pell Grants and cash management principles.
• Leads school reconciliation of Pell program funds among financial management systems, assists ED and Federal Student Aid CFOs in collecting Pell Grant funds from schools, and resolves issues from prior years.
• Grants administrative relief to schools for processing increases in Pell Grant awards after the September 30 deadline.
• Develops business rules and procedures for the administration of the Pell program at Federal Student Aid.
• Analyzes proposed and pending policies and regulations for systems and operational impacts, and assists in identifying systems requirements.
• Develops communications to schools about operational matters.
• Resolves Grants Administration and Payment System (GAPS) feeder system error file.
• Develops system requirements to the Common Origination and Disbursement system.

TOP

Common Origination and Disbursement (COD) Systems Division

The mission of the COD Systems Division is to design, implement, and operate an integrated system and customer service to support the origination, disbursement and reconciliation of Direct Loans and Pell Grants with eligible institutions. To support this mission, the COD Systems Division is organized in the following Branches:

• COD Systems Development Branch
• COD Systems Operations Branch

COD Systems Development Branch:

• Develops system and operations support requirements.
• Validates systems design.
• Resolves data discrepancies with interfacing systems (e.g., Central Processing System (CPS), Direct Loan Servicing System (DLSS), Financial Management System (FMS), and the EDExpress application that is used to submit data to CPS.)
• Tests system output and procedures for correctness and adherence to requirements.
• Develops and issues technical references to reflect proposed or pending policies and regulations to ensure consistency and clarity.
• Works with software developers, vendors, and schools to develop software products that are compatible with COD.
• Maintains system functionality to support program reconciliation and closeout.
• Oversees COD Help Desk.

COD Systems Operation Branch:

• Oversees system production processing.
• Oversees system communication, training and outreach.
• Manages system security requirements.
• Performs contract and interagency agreement administration and monitoring.
• Conducts user feedback sessions with institutions and internal users to determine areas for improvement.
• Oversees COD Help Desk.

TOP

Application Processing Division

The Application Processing Division is responsible for collecting and managing aid application information, verifying this information, and creating aid reports and packages for schools and students. To accomplish this mission, the Application Processing Division:

• Manages the implementation of application processing system product lifecycles, such as the Free Application for Federal Student Aid (FAFSA) on the Web, paper FAFSA, School Interface software (including all modules of EDExpress), Personal Identification Number (PIN) Site, FSA Download, Data Mart, and video conferencing.
• Manages system security requirements and processes (including disaster recovery and configuration management) to protect system assets and resources.
• Performs data management and data quality assurance.
• Performs reconciliation activities, and operational matches including matches with external agencies.
• Performs acceptance testing on all products.
• Manages imaging and data capture processes.
• Provides short term and long-term support and leadership for the development and maintenance of Internet, mainframe, and PC platforms.
• Receives and tracks customer requirements from other functional areas related to application processing.
• Manages external access to system.
• Develops and executes technical training and internal communications programs.
• Develops and disseminates information for public distribution, including Federal Registers and System of Record Notices.
• Performs archive and record retrieval.
• Reviews and analyzes customer feedback to ensure technical inquiries and requests for information are met appropriately for all Application Processing supported systems.
• Processes reports for internal and external customers at an aggregate level on system data.
• Performs analysis and generation of Management Information System (MIS) reports.

TOP

Financial Partners Services

The Financial Partners Services has primary responsibility for providing best in business service to lenders and guaranty. In addition, Financial Partners Services maintains a network of effective and satisfied customers and guarantee agencies. Financial Partners Services is divided into the following groups:

Partner Services Group
Partner Systems Division
National Student Loan Data System (NSLDS) Group

In addition, the immediate office of Financial Partners Services has the following two functional areas:

Financial Analysis
State Agency Liaison

Financial Analysis

Financial Analysis is responsible for ensuring that lender' and guaranty agencies payments are timely and accurate and for developing and implementing policies and procedures for the delivery of student loan program, namely the Federal Family Education Loan Program (FFELP). To accomplish this mission, Financial Analysis in coordination with Federal Student Aid/CFO:

• Receives and processes financial transaction data from lenders;
• Makes interest and special allowance payments to lenders;
• Tracks timely processing of all such transactions to avoid penalty interest liabilities;
• Receives financial transaction data from guaranty agencies;
• Processes information necessary to make payments to GAs;
• Prepares and compile financial transaction reports;
• Processes system 'Year-end closing';
• Produces financial reports and records that initiate external financial payments;
• Identifies business requirements to develop new system modifications needed to implement legislative/regulatory changes;
• Initiates and maintains program and systems changes to the electronic, Financial Management System, FMS (ORACLE) as it relates to Forms 2000 and LAP/LARS;
• Monitors and audits changes related to Forms 2000 and LAP/LARS via FMS configuration management system;
• Communicates with guaranty agencies to process newly-admitted lenders and to maintain current vendor profile data within FMS;
• Incorporates performance data as indicators of program success in meeting legislative and regulatory requirements after consulting with Enterprise Performance Management Services
• Conducts Tax Exempt Monitoring
• Exception Performance Design and Annual Re-designations
• Technical Assistance
• Provides program analysis assistance to region and headquarter staff, as well as members of the student aid community, by interpreting legislative and regulatory changes that effect program operations;
• Writes instructions for electronic 'data collection' mechanisms and disseminate to GAs and lenders;
• Monitors funds availability data within FMS for GA and lender payments, such as fund obligation, disbursement, and receipt data;
• Communicates proposed and existing FM initiatives with internal and external customers via the FP intranet and internet websites;
• Writes FMS queries to prepare and compile financial transaction data and analyzes the results;
• Evaluates trends and prepare reports to advise senior management;
• Participate in systems testing to ensure modification compliance with FM business processes;
• Reconcile FFEL funding/transactions with related systems; and
• Train internal and external users in new system development.
• Responsible for Management Plans
• Handles Improper Payments

TOP

State Agency Liaison

State Agency Liaison is responsible for providing support and communications to state agencies to ensure a network of effective and satisfied state agency partners. To accomplish this mission, State Agency Liaison:

• Works with state guaranty and non-guaranty agencies to ensure appropriate levels of communication between Federal Student Aid and the agencies.
• Provides state agencies with a liaison and advocacy function within Education and Federal Student Aid.
• Coordinates communications and interaction among state agencies, the schools, the financial aid community, and Federal Student Aid.
• Provides technical assistance and support to state agencies.
• Works with guaranty agencies to implement pilot programs (such as VFAS, Blanket Certification as required by regulations or any other initiatives.

Partner Services Group

The Partner Services Group is responsible for identifying and analyzing major issues affecting lender and guarantor financial stability, and for the implementation of program and financial reviews of guarantor agencies and lenders on the proper administration and management of Title IV programs. Ensures compliant administration and management of FFEL programs through partnership with guaranty agencies, services, trustees, secondary markets, and financial institutions by providing support to, and participating with the Financial Partners regional offices in oversight functions, technical assistance, customer service and program evaluation. To accomplish this mission, the Partner Services Group:

• Provides general participation support to financial institutions, e.g., policy interpretation, technical assistance.
• Interfaces with financial trade organizations as partners.
• Manages and analyzes risk.
• Maintains risk models to assess the need for program reviews and/or technical assistance.
• Conducts joint program reviews and training (Department of Education, lenders, and guaranty agencies).
• Monitors lender and guarantee agency compliance with eligibility guidelines and procedures.
• Provides technical assistance.
• Compiles and analyzes partner contact data (complaint information and inquiry trend data).
• Identifies and communicates service improvement opportunities including quickly responding to partners.
• Oversees trending and program data review.
• Manages the Electronic Records Management project.
• Issues and maintains cohort default rates for guaranty agencies and lenders.
• Completes Freedom of Information Act and Privacy Act Requests.
• Monitors and reviews external and internal audit activities including OIG, GAS, A-233 (single an statewide reports.

TOP

Partner Systems Group

The Partner Systems Group is responsible for providing contract management-related activities to support the ongoing maintenance and operations of the Federal Family Education Loan System (FFEL). To accomplish this mission, Partner Systems Group:

• Works with vendors to lower the costs associated with FFEL processing.
• Keeps informed of emerging technologies and business process innovations and analyzes their potential for streamlining Financial Partners operations.
• Continually evaluates business processes for service improvement and cost reduction opportunities.
• Analyzes and develops best in practice methods for data exchange and access with Financial Partners.
• Manages the design, development and maintenance of a web-based portal through which eligible Federal Student Aid financial partners can access information and data systems that serve the student lending community.

National Student Loan Data Systems (NSLDS) Group

The NSLDS Group is responsible for designing, implementing and operating the National Student Loan Data System on behalf of Federal Student Aid. In addition, this group is responsible for performance engineering of NSLDS to provide the best service at the least cost accompanied with customer satisfaction in the products and services NSLDS delivers. The NSLDS Group is divided into two teams: Legacy Team and Re-engineering Team. To accomplish this mission, the NSLDS Group:

• Formulates new program management standards and analytical approaches.
• Plans and directs the architecture for evaluation and measurement efforts.
• Plans and directs requirements analysis.
• Develops and maintains program plans.
• Represents Financial Partners and NSLDS at seminars, symposia and conferences.
• Maintains the currency of NSLDS to Federal Student Aid's IT standards and policy with regular updates based on changing business requirements, technology evolution and new/emerging standards.
• Establish re-engineering architecture in accordance with business requirements.
• Align NSLDS re-engineering in accordance with enterprise data strategy and emerging technology standards.
• Provides state agencies with a liaison and advocacy function within Education and Federal Student Aid.
• Coordinates communications and interaction among state agencies, the schools, the financial aid community, and Federal Student Aid.
• Provides technical assistance and support to state agencies.
• Works with guaranty agencies to implement pilot programs (such as VFAS, Blanket Certification) as required by regulations or any other initiatives.

TOP

Borrower Services

Borrower Services is responsible for providing best in business service to aid recipients by notifying them of repayment options, controlling delinquent/defaulted accounts, assesses portfolio risk, recommending proactive portfolio strategies, consolidating aid recipient loans, ensuring quality customer service, and designing cost-effective operational alternatives. To accomplish this mission, Borrower Services consists of the following groups:

• Non-Default Group
• Default Resolution Group
• Customer Care Group
• Processing Group
• Information Systems Coordination Group
• Contract Performance Analysis & Oversight Group

Non-Default Group

The Non-Default Group is responsible for the oversight of the Non-Defaulted loan portfolios held by Federal Student Aid to include the evaluation of servicing tools, portfolio analysis, program support services and partner relations. To accomplish its mission the group is responsible to:

• Provide expert guidance to assist in formulation of operational policy and procedures related to repayment activities for the non-defaulted loan portfolios held by Federal Student Aid.
• Develop innovative ideas, perform analyses, and provide recommendations for operational improvements and/or enhancements for the non-defaulted loan portfolios.
• Design and produce management information and other special reports on non-default repayment activities.
• Review acceptance test results on all initiatives for Federal Student Aid held non-defaulted portfolios.
• Review delinquency management trends and look for improvements in delinquency processing and recovery rates in all delinquency categories. Works with servicing contractor and partners to strategize default prevention activities.
• Analyzes delinquency/default forecasts of servicing contractor/subcontractors and partners with them to strategize default prevention activities.
• Coordinate program activities within the non-defaulted loan portfolios held by Federal Student Aid.
• Review and take action on all quality control and quality assurance reviews.
• Work with the school relations' team on outreach for current and new schools.
• Provide technical assistance to the lending community and institutions of higher education, borrowers, and other interested parties regarding the regulatory requirements for the exercise of due diligence in the repayment of Direct Loans and Perkins Loans assigned to the Department.

TOP

Default Resolution Group

The Default Resolution Group is responsible for the oversight of collection agencies, management of the default collection tools, and partner relations. The Group is responsible for providing the Department of Education a means of controlling and resolving defaulted accounts. The Default Resolution Group is comprised of two major components --- Collections Management and Collections Contract Oversight. Collections Management focuses on default collection management and Collections Contract Oversight focuses on Contract Monitoring, Contract Analysis and Administrative Wage Garnishment Compliance.

Collections Management

• Provides oversight of all collection-related activities and handles national issues relating to Congress, OMB and other federal agencies
• Ensures compliance with Federal credit policy including OMB circulars and bulletins as well as Department of Treasury guidelines.
• Manages Treasury Offset and Federal Employee Salary Offset Programs.
• Develops policies, procedures, and objectives for collection of debts by Administrative Wage Garnishment, Loan Rehabilitation, Loan Consolidation, Treasury Offset and other advanced collection tool techniques.
• Develops and analyzes statistics for student loan collection operations; designs and produces management information and other special reports on collection activities.
• Provides expert technical assistance to guarantors, lenders, institutions of higher education, borrowers, and others regarding the regulatory requirements for the exercise of due diligence in the collection and assignment of outstanding accounts to the Department.
• Coordinates efforts with external associations (NCHELP, COHEAO, etc.) to keep community updated on industry best practices and the impact of new operational procedures.
• Formulates policies and procedures relating to the final resolution of defaulted accounts including compromise and write-off.

TOP

Collections Contract Oversight

Provides oversight and management of Contract Compliance, Contract Analysis and Administrative Wage Garnishment Compliance activities involving the administration of multiple private collection agency contracts in order to accomplish its' mission.

Administrative Wage Garnishment (AWG) Compliance

• Monitors private collection agencies' use of Administrative Wage Garnishment.
• Ensures proper and effective use of garnishment option.
• Provides consultative assistance to employers required by law to comply with ED garnishment orders.
• Develops and implements detailed systems and procedures for accurate and timely referral of cases of employer non-compliance to the Department of Justice (DOJ) for litigation.
• Tracks the progress of DOJ in litigation efforts, including the assurance of proper accounting for federal dollars collected through this effort.
• Works with U.S. Attorneys to effect payment of litigation fines and penalties against employers including cases where the Federal Government has brought suit. Assists DOJ in the preparation of lawsuits against employers when customer payments are not forthcoming. Provides documents and testimony upon request.
• Participates in private collection agency reviews, technical assistance and training.

TOP

Collections Contract Analysis & Compliance (A & B)

• Conducts data analysis and queries to perform audits on private collection agency contracts.
• Maintains and updates private collection agency website.
• Processes monthly private collection agency invoices.
• Approves commission adjustments and process refunds.
• Analyzes monthly private collection agency quality control reports—to identify trends and forecast needs—including borrower complaints, etc.
• Analyzes & tracks onsite review reports and ensure corrective action is taken.
• Coordinates input with other areas regarding recommended and/or proposed contract modifications.
• Coordinates all start-up activities for new contracts and closeout activities for old contracts.
• Participates in private collection agency reviews, technical assistance, and training.
• Reviews, approves, and processes IMF, weekly disability files and transfers to CDDTS.
• Conducts onsite private collection agency audits and program reviews.
• Responds to and tracks borrower complaints related to private collection agency activities.
• Provides technical assistance & training to staff and private collection agencies.
• Reviews and approves Administrative Resolutions to be returned from Private Collection Agencies via Electronic Funds Transfer for entitlements.
• Reviews, approves, and closes accounts returned by private collection agencies for cost-exceeds recovery, payment-in-full, compromises, etc.
• Performs commission adjustments on private collection agency invoices.
• Serves as point-of-contact for meetings, briefings with private collection agencies.

TOP

Customer Care Group

The Customer Care Group is responsible for ensuring the customer is provided quality service and due diligence by answering inquiries, resolving disputes and protecting the customer's rights and entitlements under the law and advising them of their options. In order to accomplish this mission, the Customer Care Group is comprised of the following functional components: Call Center Management, Treasury Offset Hearings & Interagency Appeals, Administrative Wage Garnishment Hearings and Escalated Issues Oversight.

Call Center Management

• Oversees the Call Center operations of the prime and sub-contractors (servicer), who provide telephone services to customers and sends written replies to inquiries, including congressional
• Establishes and monitors quality control of the servicer to ensure required documentation (deferments, postponements, forbearances, cancellations) are requested, notated, and appropriate follow-up procedures are in place to avoid delinquency and default.
• Monitors activities and conducts audits of work processes related to servicing of accounts.
• Ensures timely and in depth analysis and research to resolve borrower inquiries regarding their federally funded indebtedness.
• Ensures responses accurately reflect proper loan status, meet program requirements, payment options, account discrepancies and dispute resolution (e.g., dispute between borrowers and collection agencies and challenges to credit bureau reporting).
• Self-Service – Services and monitors activities related to system-generated, technology driven borrower inquiries and inquiries from schools through the Internet.
• Ensures borrowers are serviced timely and ensures all documentation is requested, completed accurately and actions taken recorded appropriately in order to avoid delinquency or default.
• Provides expert recommendations to improve service area and contractor's work product. This includes borrowers who debts are currently in repayment, delinquent or in default status.
• Reviews, monitors and audits responses to inquiries and data input for incoming and outgoing calls processed by the telephone universal agents.
• Ensures servicer thoroughly explains the government's collection program to customers and suggests a variety of solutions to resolve indebtedness.
• Monitors efforts related to Customer Service Satisfaction Surveys. Analyzes results and makes recommendations for improvements (training program, IVR scripts, or web).
• Identifies, analyzes and implements continuous improvements to customers Monitor and evaluate the use of eGain and Web Chat communications.

Treasury Offset Hearings & Interagency Appeals

• Coordinates and provides oversight of all activities relative to the Treasury Offset process and other Federal default program hearings and appeals where other governmental agencies or servicers provide the primary hearing.
• Conducts in-person, oral and written hearings prior to certification of debts to Treasury, and/or national credit reporting agencies.
• Ensures due diligence is afforded borrowers prior to involuntary administrative collection action.
• Provides oversight of contractors performing research, analysis and preliminary written response of hearing as well as ensuring the gathering of all pertinent documentation in order for hearing official to make sound judgment and provide hearing based on all testimony.
• Develops policies and processes to conduct hearings.
• Provides leadership in establishing agreements with other federal agencies to provide hearing services for pre-Federal employee salary offset hearings.
• Treasury Offset & Interagency Appeals - Determines whether to pursue collection of debt through offset of federal monies that may otherwise be owed a borrower.
• Federal Employee Salary Offset Program- resolves disputes and ensures borrower comprehends hearings process. Gathers documentation and forwards to governmental agency performing hearing, ensuring borrower granted all due diligence prior to hearing.
• ECMC - Adjudicates hearings on accounts held by ECMC (servicer) where administrative wage garnishment has been implemented.
• Guaranty Agency Appeals - Adjudicates hearings on accounts held by Guaranty Agencies where administrative wage garnishment or treasury offset has been accomplished and the borrower is appealing those decisions.

Administrative Wage Garnishment Hearings

• Conducts in-person, oral and written hearings prior to administrative wage garnishment.
• Ensures due diligence is afforded borrowers prior to involuntary administrative collection action.
• Develops policies and processes to conduct hearings.
• Provides leadership in working with the Default Resolution Group in establishing agreements, procedures and policy relative to the Administrative Wage Garnishment hearings by determining whether to pursue collection of the debt through administrative garnishment of wages.
• Provides oversight of contractors performing research, analysis and preliminary written response of hearing as well as ensuring the gathering of all pertinent documentation in order for hearing official to make sound judgment and provide hearing based on all testimony.

Escalated Issues

The Escalated Issues area is responsible for the coordinated responses to Congressional offices, Ombudsman, Office of the Secretary, White House, etc. in order to properly service loans; investigates, researches and conducts analysis of concerns and negotiates resolution of borrowers concerns. Requests can originate from any of the offices listed above or other external entities.

• Ensures timely and accurate responses to issues relative to the servicing and collection of debts to the Ombudsman's office.
• Ensures timely and accurate responses to controlled correspondence (e.g., White House, Congressional and Office of the Secretary, etc.).
• Coordinates and reports any issues/concerns/findings to Call Center Management.
• Establishes, implements and monitors Call Escalation Procedures at Call Centers to ensure sensitive telephone inquiries are handled providing effective customer service.

Processing Group

The Processing Group is responsible for the central management of litigation support, processing financial transactions and entitlements, making Direct Loan Consolidations, overseeing loan assignments made to Borrower Services from Guaranty Agencies, and making entitlement decisions. To accomplish this mission, the Processing Group is comprised of the following functional components Financial Operations, Litigation Support, Student Aid Entitlements and Loan Repurchase. The Processing Regional Office oversees Litigation Support, Student Aid Entitlements and Loan Repurchase.

Financial Operations

• Manages payment and refund operations within the Processing Group.
• Provides oversight of and support of reconciliation on all student loans and grant overpayments held by Federal Student Aid and financial transactions associated with rehabilitated loan sales to lenders.
• Support Chief Financial Officer's (CFO) response to audit requests and provides documentation to support audit activity.
• Provides oversight of Lockbox operation. Oversees payment operations including credit card payments, on-line payments, cash, non-cash, Loan Consolidation (LC) over and underpayment activity and other payment types for timely posting and other issues.
• Monitors and reviews processes and ensures proper disposition of actions:
  • Suspense accounts to assure payments are applied, misdirected payments are forwarded, and funds are escheated.
  • Loan write-off processes for uncollectible loans and reinstates previous write-offs.
  • Discharge of balances and the generation of refunds to borrowers.
  • Reconcile TOP, AWG, and offsets to assure funds received are applied/returned/documented
  • Provides process improvement recommendations.

Processing Regional Office

The Processing Regional Office provides oversight of the Litigation Support, Student Aid Entitlements and Loan Repurchase functions.

TOP

Litigation Support

• Coordinates with the Department of Justice (DOJ) to collect debts through litigation, including adversary actions filed in bankruptcies.
• Initiates litigation (generates Claims Collection Litigation Report and files it with the DOJ) and manages the Department of Education's (ED) treatment of debts in litigation.
• Manages the Department of Education's response to Bankruptcy petitions filed by borrowers seeking protection and relief from their debts under federal bankruptcy law.
• Oversees work of contractors performing these processes to assure quality, accuracy and compliance.
• Assists ED's Office of the Inspector General in identifying and investigating student loan fraud committed by lenders, schools and borrowers.
• Assist Office of General Counsel prepare interrogatory responses and court cases.

TOP

Loan Exchange

• Manages loan assignment processes for defaulted loans and Conditional Disability Discharged Loans.
• Responsible for activities related to receiving loan assignments, assuring Guarantors are providing proper documentation with assignments and determining whether accounts have been properly classified as in default or eligible for Conditional Disability Discharge.
• Responsible for making Direct Consolidation Loans through the purchase of FFEL, HEAL, Perkins or Direct Loans.
• Receives and processes assignments made from Guaranty Agencies for defaulted and Conditional Disability Discharged Loans.
• Provides technical assistance to guarantors, lenders, institutions of higher education, borrowers, and other interested parties regarding regulatory requirements for exercise of due diligence in the collection and assignment of outstanding accounts to the Department of Education.
• Makes determination whether accounts have been declared in default in error. Affects the repurchase of accounts by guarantors and/or lenders when the legal determination has been made that the lender or guarantor declared the loan to be a default in error.
• Assures loan collateral is properly stored and secured and warehousing activities support document retention, retrieval, and disposal requirements.
• Oversee mailroom-handling operations.
• Works with lenders, Guaranty Agencies and Financial Partners to assure responsiveness to requests for Loan Verification Certification information.
• Coordinates sales of rehabilitated FFEL loans back to FFEL lenders from the Borrower Services default loan portfolio.

TOP

Student Aid Entitlements

• Oversees the discharge of borrower loan/grant balances when entitled.
• Evaluates requests for and discharge of loans and associated refunds.
• Manages activities related to entitlements involving student loans and grants.
• Oversees aid status reporting for aid eligibility purposes and credit bureau reporting.
• Oversees the Income Contingent Repayment and deferment and forbearance processes to assure requests are properly applied, and processing issues are addressed and resolved.
• Provides technical assistance to guarantors, lenders, institutions of higher education, accrediting associations, borrowers, and others regarding regulatory requirements for cancellation, discharge, deferment or forbearance of student loan repayment obligations.
• Monitors SSCR and NSLDS exception analysis assuring exceptions are reviewed and accurately resolved in a timely manner.

TOP

Information Systems Coordination Group

The Information Systems Coordination Group is responsible for performing, overseeing and/or monitoring all computing system development, testing, security, operations and telecommunications necessary to process Borrower Services' information, and provide appropriate reporting on those activities. This group performs the following major functions:

• Requirements Definition - guides the efforts of Borrower Services Business Owners and contract developers to define detailed requirements, procedures and business rules.
• Security - responsible for all data, system and access security for automated systems in Borrower Services.
• Production Oversight - responsible for oversight of the computer operating environment and network.
• Development - responsible for oversight and participation in system development, enhancement, maintenance and testing efforts.

TOP

Contracts Performance Analysis and Oversight Group

The Contracts Performance Analysis and Oversight Group is responsible for administering Borrower Services assigned contracts and agreements and related financial responsibilities. The Contracts Performance Analysis and Oversight Group performs the following functions:

Develop contract cost projections throughout the life of the contract, and monitors actual costs to ensure contract costs remain within the annual budgetary constraints. Monitor contracts in coordination with other Borrower Services Groups with particular focus on Deliverables, Incentives (Cohort Default & Survey results), and disincentives (Performance Metrics).

• Oversees the Independent Verification and Validation (IV&V) function in coordination with business owners.
• Coordinates activities related to development & maintenance of Interagency Agreements.
• Reviews, validates, and approves invoices and other contractual obligations in coordination with Business Owners.
• Negotiates, evaluates and executes proposals received under Small Procurements, Requests for Proposal and Interagency Agreements in coordination with appropriate Groups and monitors progress.
• Prepares cost analysis on new task order requests & coordinates technical reviews with Business Owners.

TOP