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Postsecondary Electronic Standards Council

May 7, 2003

ELM Resources, ELMNet, and Standards

Bill Connor

Director ELMNet Services

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What is ELM Resources?

• Mutual Benefit Corporation – Alliance of lenders, guarantors, and servicers

– Cooperative venture, open to all

• Non-Profit company

• Free services to schools

• Single Point of Data Exchange

• Provider Neutral

• Technology Bridge

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ELM is Open

• ELM members represent over 90% of FFEL volume

• All guarantors interfaced

• Provider neutral

• 700 schools using ELM– Choice of lenders, guarantors, & servicers

– Choice of providers based on service

– Control over loan process

• Supports all standard application flows

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What does ELM do

• Loan delivery– Batch processing– Real-time processing

• Central database• Reports• Inquiries

– Central Database– Remote Databases

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ELM in 2002

• 2002 was a successful year for ELM, despite hitches:– In 2002, volume grew to 2,100,330 loan records, a

42% increase over the previous year

– The National Disbursement Network delivered $5.6 billion in disbursement, a 42% increase over 2001.

– There are over 796 schools using the ELM service bureau, and,

– 748 schools using the NDN

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ELM Loan Volume

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

1998 1999 2000 2001 2002

Years

Loans

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ELMNet and Real-Time Inquiry

• ELMNet real-time inquiry in production since Oct. 1999

• Real-time access to remote production systems• Inquiry index has 12 million borrowers• Approx 85-90% of all loans available

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ELMNet and Real-Time Transactions

• ELMNet loan transactions since May 2002

• Current Real-Time Transactions participants– Citibank

– Educaid

– Wells Fargo

• In development/testing– Sallie Mae - Bank of America

– Southwest Student Series - Nelnet

• XML Messages using CommonLine 4

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ELMNet as a data switch

• Transactions• Multiple formats

– CL 95– CL4– CL5– Proprietary

• Batch & RT• FTP & POP3• FTP Push• FTP Pul

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Standards

• We love ‘em• But which one(s)

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Why does ELM want standards

• 700 school interfaces• 1000 lender IDs• 70 loan origination platforms

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School

School

School

School

Lndr/GA/Svcr

Lndr/GA/Svcr

Lndr/GA/Svcr

Lndr/GA/Svcr

ELMNet

RT

ELMNet Technology Buffer

Batch CL4

Batch CL5

Prop Fmt

CR

RT

RT

CL4

CL5

RT

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ELM and Standards

• ELM supports standards• ELM does not impose standards• Standards are embraced, not merely declared• Marketplace determines standards

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Schools and Standards

• Schools are the drivers• Schools are the focal point of ELM and the

ELM Members• Schools are not all the same

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Diversity among schools

• Size• Population served• Needs• Capabilities

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Schools and Technology

• Dichotomy– Tradition v technological advancements

• Competing internal demands• Resource limits

– People– Equipment– Money

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Schools and Systems

• Internal v commercial/vendors• Open Source v Proprietary• Standards

– Primarily external interfaces– USDE– Financial aid

• ELM– State entities

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ELM and Schools

• ELM does not impose standards upon schools• ELM suggests standards• ELM suggests best practices• ELM is a technology buffer between schools

and lenders/guarantors

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ELM and Members

• ELM does not impose standards on Members• Mutual benefit organization• Board of Directors• Members committees within ELM

– Operations– Technology

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ELM and Members

• Like schools, not all Members are the same

• ELM is a technology buffer

• ELM Members are often competitors

• Standards help but do not eliminate competitive issues or capability issues

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ELM and the student loan industry

• PESC• NCHELP• EFC• USDE

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ELM and the student loan industry

• Progression– ELM Universal Format (EUF)– CommonLine– Common Record

• ELM participates• ELM as a delivery standard?

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Standards – Some Suggestions

1. Understand who the customer is

2. Focus on need

3. Focus on external actions – points of data exchange

4. Recognize business realities

5. Don’t reinvent

6. Implementing standards, even good ones, can take time and money

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Additional Suggestions

1. Participate in national efforts• PESC • NCHELP ESC

2. Recognize the bias of certain efforts3. Focus on achievable objectives4. Understand external factors

• USDE/FSA modernization• XML• Internet

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Postsecondary Electronic Standards Council

May 7, 2003

ELM Resources, ELMNet, and Standards

Bill Connor

Director ELMNet Services