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Transcript of Slide 1© Student Lending Analytics, LLC Navigating the Way Through: Preferred Lender Lists in a...
Slide 1© Student Lending Analytics, LLC
Navigating the Way Through: Preferred Lender Lists in a Time of Change
Slide 2© Student Lending Analytics, LLC
Agenda
Introduction
Recent Dept. of Education Regulations on Preferred Lender Lists
Development of Preferred Lender Lists– The Process – Selection Criteria– Disclosure of Lending Programs
Trends in Preferred Lender Lists– Stafford and Alternative Lender Lists– Lender Penetration by Loan Program– Geographical Nature of Lender Relationships
Feedback from Lender Community
Slide 3© Student Lending Analytics, LLC
Dept. of Education RegulationsImpact on Preferred Lender Lists
School may, at its option, make available a list of recommended or suggested lenders provided that the list:
– Not used to deny a borrower’s choice– Does not contain fewer than three lenders that are not affiliated with each other– Does not include lenders that have offered or have been solicited by the school to offer financial or
other benefits or any promise of a certain number of loan applications
School that provides such a list must:– Disclose the method and criteria used to select any lender– Provide comparative information about interest rates and other benefits offered by the
lenders– Include prominent statement that not required to use one of the lenders on the preferred list– For first-time borrowers, not assign borrower’s loan to a particular lender– Not cause unnecessary certification delays for borrowers who use lenders not on the list
Final regulations had two changes to earlier proposal– School must update its preferred lender list and the accompanying information at least
annually– Dropped clause requiring that benefits offered to borrowers by the lender had to be the same for all
borrowers at the school
Regulation and disclosure requirements of preferred lender lists will increase burden of schools by 141,625 hours (roughly 30 hours per FFEL school)
Slide 4© Student Lending Analytics, LLC
Dept. of Education RegulationsFollow-up
Guidelines on method and criteria are not meant to be prescriptive but rather act as guidelines– Expect that explanation of how the lender list was created as well as the
criteria will be disclosed with the preferred lender list
Have thought a lot about the form that will collect information on comparative loan terms – Will be presenting to OMB shortly with two separate comment periods (30
and 60 days) to follow thereafter– Mulling the use of APR as a way to create “apples to apples” comparison
and to standardize loan costs
Hoping that schools will abide by the spirit of the regulations prior to July 1, 2008 adoption date
Slide 5© Student Lending Analytics, LLC
Agenda
Introduction
Recent Dept. of Education Regulations on Preferred Lender Lists
Development of Preferred Lender Lists– The Process – Selection Criteria– Disclosure of Lending Programs
Trends in Preferred Lender Lists– Stafford and Alternative Lender Lists– Lender Penetration by Loan Program– Geographical Nature of Lender Relationships
Feedback from Lender Community
Slide 6© Student Lending Analytics, LLC
Why Preferred Lender Lists?
Schools have leverage with lenders to negotiate favorable terms for their students– Opportunity for concentrated and large volume of loans through one
distribution point
Help students and parents who otherwise have innumerable number of lenders and loan products to choose from
Assist Financial Aid professionals with high volume of requests regarding lenders while also allowing for streamlined operations
Provides opportunity to educate students and parents rather than leave them at the whim of the marketplace
Slide 7© Student Lending Analytics, LLC
Top 10 Questions in the Lender Selection Process
Who needs to be involved in decision making process?
RFI vs. RFP vs. less formal process?
Which loan programs should be included in this process?
What are key criteria in evaluating lenders?
What is the relative value/importance of each criterion?
What questions will assist you in differentiating lenders and measure them against the criteria?
How will proposals be evaluated?
How many/which lenders should be invited to participate in the process?
How many lenders to select as preferred lenders?
How should information about process and preferred lenders be disclosed?
Slide 8© Student Lending Analytics, LLC
Case StudyCarleton College
Utilized case studies as means to ascertain full cost of loan– “…we developed a number of case studies and asked lenders specific questions
to ascertain the full cost of a loan and the benefits.”
Understand probability of given benefit being received– “We were also careful to ask about the proportion of borrowers who receive
certain benefits to test assertion against reality.”
Cast wide net to collect information from as many lenders as possible – “We received 20 proposals from lenders across the country.”
Utilize two step process to select lenders– “Determined six finalists based on the clarity of the proposal, benefits available
to our students, and cost of the loans over time.”– “We then invited all finalists to campus for a face-to-face meeting…eliminated
two lenders from consideration.”
Collect supplemental information on customer service in creative way– “The final four lenders were re-reviewed and we also made cold calls to their toll-
free phone numbers to determine the quality of their customer service.”
Slide 9© Student Lending Analytics, LLC
Case StudyUniversity of Connecticut
Issued Request for Proposal for Student Loan Services on July 3, 2007
Provided detailed criteria to evaluate Stafford Loan Proposals– Thirteen criteria listed including:
• Front-end fees and borrower benefits• Back-end borrower benefits• Telephone customer service• Technical support • Ease of loan processing for school• Customer service for school
– Assign maximum points available for each criterion from 5 to 25 points
Relative importance of criteria out of 215 points total– Back and front-end fees and borrower benefits 50 points– Loan Processing (school and borrower) 40 points– Customer service (school and borrower) 40 points
Slide 10© Student Lending Analytics, LLC
Insights from SLA’s Lender Selection Study
Successful processes require an investment of time and resources; there are no shortcuts
– Face to face meetings– Student surveys– Invite large group of lenders into the process
Maintain an attitude of continuous improvement– Tweak their proposals every year; adding and deleting items– Constantly rating their incumbent lenders – If you don’t measure it, you cannot control it
Set expectations for the relationship in the proposal itself– Many set minimum requirements about service levels, problem resolution turnaround
and other issues
Once lenders are selected, they see this as the beginning rather than the end of the process
– Constantly monitoring the program; many rate their lenders on ongoing basis and share the information with them
Slide 11© Student Lending Analytics, LLC
Polling Question #1
Please indicate the method you used to select lenders for the 2007-08 processing year:
• Request for Proposal (RFP)
• Request for Information (RFI)
• Asked existing lenders for their new terms and borrower benefits
• Less formal approach
• None of the above
Slide 12© Student Lending Analytics, LLC
Polling Question #2
Please indicate the method you intend to use to select lenders for the 2008-09 processing year:
• Request for Proposal (RFP)
• Request for Information (RFI)
• Asked existing lenders for their new terms and borrower benefits
• Less formal approach
• None of the above
Slide 13© Student Lending Analytics, LLC
Agenda
Introduction
Recent Dept. of Education Regulations on Preferred Lender Lists
Development of Preferred Lender Lists– The Process – Selection Criteria– Disclosure of Lending Programs
Trends in Preferred Lender Lists– Stafford and Alternative Lender Lists– Lender Penetration by Loan Program– Geographical Nature of Lender Relationships
Feedback from Lender Community
Slide 14© Student Lending Analytics, LLC
Lender Selection Criteria
Reviewed the websites of a sample of 30 schools which had disclosure around the criteria used in lender selection process
Specific criteria: 46.7% of the schools had specific disclosure rather than vague language on the criteria considered– Most common practice shared by the schools with specific disclosure is to
separate the criteria into different categories (borrower benefits, customer service, etc.)
Lender selection process: only 13.3% of schools provide some level of detail around the process; however more schools disclosed at least how often they go through the process– 46.7% review the process annually– 6.7% review the process every two years– 46.7% did not disclose timing
Following page shows the prevalence of some of the more common, interesting criteria disclosed by the schools
Slide 15© Student Lending Analytics, LLC
General criteria such as borrower benefits and customer service were disclosed in 100% of those schools analyzed.
More specific disclosure is provided in the charts below:
Lender Selection Criteria
56.7%
36.7%23.3% 20.0%
10.0%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
Origination Fees
Default Rates Principal reductions
Interest Reduction for Auto-
Debits
Likilhood of Attaining Benefits
Lender Selection Criteria Prevalence
Borrower Benefits
73.3%
53.3%
30.0%23.3% 20.0%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
Ease of Application
Customer Service -
Timing
Lender Reputation
Input from students and
parents
Default Education / Prevention
Lender Selection Criteria Prevalence
Other
Slide 16© Student Lending Analytics, LLC
Disclosure Examples
Quinnipiac University despite not going through an RFI process, provides detailed disclosure on their process and criteria considered
– http://www.quinnipiac.edu/x3343.xml
Carleton College goes through a very specific description of their process
– http://apps.carleton.edu/campus/sfs/Useful_links/lender_statement/
Stanford University provides a solid model of disclosure amongst the schools that have specific criteria disclosure
– http://www.stanford.edu/dept/finaid/loanprocessing/lenderselection.html
SUNY – Maritime College also provides detailed, categorized criteria
– http://www.sunymaritime.edu/Business%20and%20Enrollment%20Services/Financial%20Aid/PreferredLenderChoosing.aspx
Slide 17© Student Lending Analytics, LLC
Polling Question #3
For those with a preferred lender list, what is the SINGLE most important criterion in your selection process:
• Automatic borrower benefits
• Customer service
• Repayment benefits
• Loan servicing
• Web-based services
Slide 18© Student Lending Analytics, LLC
Agenda
Introduction
Recent Dept. of Education Regulations on Preferred Lender Lists
Development of Preferred Lender Lists– The Process – Selection Criteria– Disclosure of Lending Programs
Trends in Preferred Lender Lists– Stafford and Alternative Lender Lists– Lender Penetration by Loan Program– Geographical Nature of Lender Relationships
Feedback from Lender Community
Slide 19© Student Lending Analytics, LLC
Disclosure of Stafford Loan Information Varies Widely
Analyzed 991 schools websites for Stafford Loan Information
Measured disclosure using seven distinct categories
While 38% provided information on lender and benefits, 30% provided no information on lenders.
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
Lend
ers +
Bene
fits
+ Loa
n Cos
t
Lend
er + B
enefits
Specif
ic Lin
ks
Gen
eral L
inks
Lend
er
No In
form
atio
n
No M
entio
n of L
oan
No Pre
ferre
d Lend
er
Level of Disclosure (Most to Least)
Pe
rce
nt o
f T
ota
l Sc
ho
ol W
ebs
ite
s
Slide 20© Student Lending Analytics, LLC
Disclosure Varies Between 2 and 4 Year Programs
Four year programs disclose lender and benefit information more frequently than two year programs
– 41.3% of 4 year schools vs. 29.9% of 2 year schools disclose such information
Over 40% of two year schools provide no information on Stafford Loan program
One possible explanation would be lower loan volumes at two year programs.
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
Pe
rce
nt
of
To
tal
Sc
ho
ol
We
bs
ites
Associates
Bachelors
Slide 21© Student Lending Analytics, LLC
Higher Volume FFELP Schools Provide Greater Disclosure
45.2% of schools with over $100MM in Stafford and Plus Loans disclosed Lender + Benefit information….
While only 26.0% of schools with less than $5MM in loan volume provided a similar level of disclosure 0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
Under $5MM Between $5-$9MM
Between$10-$24MM
Between$25-$49MM
Between$50-$99MM
Over$100MM
FFELP Loan Volumes
Perc
enta
ge o
f Sch
ools
Dis
clos
ing
Lend
er a
nd B
enef
its
Info
rmat
ion
Slide 22© Student Lending Analytics, LLC
Low Default Schools Provide More Disclosure
Over 45% of schools with default rates less than 2.5% disclose lender and benefit information
27.1% of schools with a default rate greater than 10% provided similar level of disclosure
0.0%
5.0%
10.0%15.0%
20.0%
25.0%
30.0%
35.0%40.0%
45.0%
50.0%
Less than1%
Between 1and 2.49%
Between2.5% and
4.99%
Between5.0 and7.49%
Between7.5 and9.9%
Over 10%
Range of Cohort Default Values (2005)
Per
cent
age
of S
choo
ls D
iscl
osin
g Le
nder
and
B
enef
its In
form
atio
n
Slide 23© Student Lending Analytics, LLC
Maintenance of Preferred Lender Lists
0%
10%
20%
30%
40%
50%
60%
70%
School Site Third Party
Perc
ent of Schools
wit
h Lender and B
enefi
t In
form
ati
on
0%
10%
20%
30%
40%
Perc
enta
ge o
f Th
ird P
art
y Sit
es
Source: SLA analysis of 390 school websites with data on lenders and benefits.
Slide 24© Student Lending Analytics, LLC
Youngstown State – Lender Comparison Tool
Legend
- Zero fee lender
- Front end benefits
- Back end benefits
- Auto debit reduction
Tip: Look for lenders that offer zero fees and front end repayment benefits. Statistics show a lower probability of borrowers achieving benefits contingent on a high number of on-time payments. Back end benefits are also usually lost if a borrower chooses to consolidate.
Click the "View" button to learn more about the requirements that must be met, if any, to receive the savings listed. Detailed information about the lender and a repayment schedule are also provided. Calculations are based on benefit information reported to YSU by its lenders for the academic year 2007-2008. It is the lender's responsibility to notify YSU when their program changes. Sorted by Savings. This sort highlights potential savings. Loan savings assume all of the lender's criteria are met.
Lender
Type
of Benefit
Fees
Interest
Principal
Total Paid
Benefits
No Fee
Savings
Details
Base Stafford Loan
$450.00 $5,714.46 $15,000.00 $20,714.46 $0.00 $0.00 $0.00
Fifth Third Bank
$0.00 $4,849.22 $14,100.00 $18,949.22 $1,765.24 $450.00 $2,215.24
View
Student Loan Funding
$0.00 $4,308.28 $14,662.50 $18,970.78 $1,743.68 $450.00 $2,193.68
View
Slide 25© Student Lending Analytics, LLC
Polling Question #4
How many lenders do you intend to include on your preferred lender list?• 3-4
• 5-7
• 8-10
• 11-20
• Over 20
Slide 26© Student Lending Analytics, LLC
Agenda
Introduction
Recent Dept. of Education Regulations on Preferred Lender Lists
Development of Preferred Lender Lists– The Process – Selection Criteria– Disclosure of Lending Programs
Trends in Preferred Lender Lists– Stafford and Alternative Lender Lists– Lender Penetration by Loan Program– Geographical Nature of Lender Relationships
Feedback from Lender Community
Slide 27© Student Lending Analytics, LLC
Preferred Lenders for Stafford Loansby Loan Volume
Median Number of Preferred Lenders
6.0 6.0 6.0 6.0
0
24
68
10
Under $5MM $5MM to
$24.9MM
$25MM to
$99.9MM
Over $100MM
Loan Volume
Num
ber o
f Pre
ferr
ed Le
nder
s
25th Percentile
4.0 4.0 4.0 4.0
0
24
68
10
Under $5MM $5MM to
$24.9MM
$25MM to
$99.9MM
Over $100MM
Loan Volume
Num
ber o
f Pre
ferr
ed Le
nder
s
Average Number of Preferred Lenders
6.6 6.58.2
6.9
0
24
68
10
Under $5MM $5MM to
$24.9MM
$25MM to
$99.9MM
Over $100MM
Loan Volume
Num
ber o
f Pre
ferr
ed Le
nder
s
75th Percentile
9.08.0 8.0
9.0
0
24
68
10
Under $5MM $5MM to
$24.9MM
$25MM to
$99.9MM
Over $100MM
Loan Volume
Num
ber o
f Pre
ferr
ed Le
nder
s
Source: SLA Analysis of 540 FFELP Schools that disclose preferred lender list information for their undergraduate Stafford Loan Program.
Slide 28© Student Lending Analytics, LLC
Number of Stafford Preferred Lenders
0
20
40
60
80
100
120
1 2 3 4 5 6 7 8 9 10 Over10
Source: SLA Analysis of 540 FFELP Schools that disclose preferred lender list information for their undergraduate Stafford Loan Program.
Slide 29© Student Lending Analytics, LLC
Preferred Lenders for Alternative Loans by Loan Volume
Median Number of Preferred Lenders
5.04.0
5.0 5.0
0
24
68
10
Under $5MM $5MM to
$24.9MM
$25MM to
$99.9MM
Over $100MM
Loan Volume
Num
ber o
f Pre
ferr
ed Le
nder
s
25th Percentile
3.0 3.04.0 4.0
0
24
68
10
Under $5MM $5MM to
$24.9MM
$25MM to
$99.9MM
Over $100MM
Loan Volume
Num
ber o
f Pre
ferr
ed Le
nder
s
Average Number of Preferred Lenders
5.4 4.65.8 6.4
0
24
68
10
Under $5MM $5MM to
$24.9MM
$25MM to
$99.9MM
Over $100MM
Loan Volume
Num
ber o
f Pre
ferr
ed Le
nder
s
75th Percentile
7.06.0
7.09.0
0
24
68
10
Under $5MM $5MM to
$24.9MM
$25MM to
$99.9MM
Over $100MM
Loan Volume
Num
ber o
f Pre
ferr
ed Le
nder
s
Source: SLA Analysis of 501 FFELP and Direct Schools that disclose preferred lender list information for their undergraduate Alternative Loan Program.
Slide 30© Student Lending Analytics, LLC
Number of Alternative Preferred Lenders
0
10
20
30
4050
60
70
80
90
100
1 2 3 4 5 6 7 8 9 10 Over10
Source: SLA Analysis of 501 FFELP and Direct Schools that disclose preferred lender list information for their undergraduate Alternative Loan Program.
Slide 31© Student Lending Analytics, LLC
Preferred Lender List Disclosure
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
ALL Stafford + Plus Stafford Only Other
Perc
ent o
f Tot
al S
choo
ls
Source: SLA Analysis of 558 FFELP Schools that disclose preferred lender list information for their undergraduate Stafford, Plus or Alternative Loan Programs.
Slide 32© Student Lending Analytics, LLC
Similarity of Lenders Across Loan Programs
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
Stafford + Plus + Alternative Stafford + PlusFreq
uen
cy th
at S
am
e Nu
mber
of L
end
ers
Occu
rred
at
Giv
en
Scho
ol fo
r Diff
ere
nt Loan
Pro
gram
s
Source: SLA Analysis of 558 FFELP Schools that disclose preferred lender list information for their undergraduate Stafford, Plus and/or Alternative Loan Programs.
Slide 33© Student Lending Analytics, LLC
Agenda
Introduction
Recent Dept. of Education Regulations on Preferred Lender Lists
Development of Preferred Lender Lists– The Process – Selection Criteria– Disclosure of Lending Programs
Trends in Preferred Lender Lists– Stafford and Alternative Lender Lists– Lender Penetration by Loan Program– Geographical Nature of Lender Relationships
Feedback from Lender Community
Slide 34© Student Lending Analytics, LLC
Stafford Loan Lender List Penetration (by Loan Volume)
Source: SLA Analysis of 540 FFELP schools with preferred list of Stafford Lenders.
Note: Sallie Mae including Academic Management Services, Nellie Mae, Sallie Mae Education Trust, Southwest Student Services Corporation, Student Loan Finance Association and Student Loan Funding would be 40% overall and 30%, 37%, 46% and 43% respectively for each of the other columns.
Overall Under $5MM $5-$24.9MM $25-$99.9MM Over $100MM
Citibank 63% 66% 60% 65% 68%
Bank of America 39% 45% 34% 44% 35%
Wachovia Bank 37% 39% 32% 43% 46%
Chase 36% 22% 33% 42% 43%
Wells Fargo Bank 34% 34% 31% 36% 38%
EdAmerica 29% 31% 27% 34% 22%
US Bank 25% 24% 30% 24% 8%
Student Loan Xpress 22% 25% 20% 25% 16%
College Loan Corporation 21% 10% 21% 22% 41%
SunTrust Bank 19% 24% 19% 17% 19%Sample size 540 67 241 195 37
Slide 35© Student Lending Analytics, LLC
Stafford Loan Lender List Penetration (by Geography)
Source: SLA Analysis of 656 FFELP schools with preferred list of Stafford Lenders.
Overall West East Midwest South
Citibank 62% 76% 51% 60% 64%
Wachovia Bank 38% 42% 26% 30% 49%
Bank of America 36% 50% 22% 20% 48%
Chase 33% 32% 15% 34% 43%
Wells Fargo Bank 33% 73% 0% 44% 21%
EdAmerica 28% 7% 19% 27% 45%
US Bank 24% 42% 1% 50% 5%
College Loan Corp. 22% 29% 23% 21% 19%
Student Loan Xpress 21% 16% 13% 38% 14%
Sallie Mae 20% 29% 17% 16% 19%Sample size 656 125 130 179 222
Slide 36© Student Lending Analytics, LLC
Private Loan Lender List PenetrationBy FFELP Loan Volume
Source: SLA Analysis of 501 FFELP and DIRECT schools with preferred list of Alternative Lenders.
Note: Sallie Mae figures including Academic Management Services, Nellie Mae, Sallie Mae Education Trust, Southwest Student Services Corporation, Student Loan Finance Association and Student Loan Funding would be 58% Overall and 48%, 53%, 61% and 70% respectively if all brands were included.
Overall Under $5MM $5-$24.9MM $25-$99.9MM Over $100MM
Citibank 79% 55% 72% 84% 90%
Sallie Mae 46% 38% 41% 49% 56%
Wells Fargo 40% 41% 32% 44% 49%
Key Bank 39% 41% 37% 39% 41%
Wachovia Bank 32% 38% 27% 34% 35%
Bank of America 31% 45% 24% 34% 33%
Chase 28% 28% 27% 28% 30%
Nellie Mae 21% 28% 16% 23% 29%
US Bank 21% 7% 22% 21% 29%
Campus Door 21% 17% 18% 20% 32%Sample size 501 29 186 223 63
Slide 37© Student Lending Analytics, LLC
Private Loan Lender List PenetrationGeographical Analysis
Source: SLA Analysis of 683 FFELP and DIRECT schools with preferred list of Alternative Lenders.
Note: Sallie Mae includes Academic Management Services, Nellie Mae, Sallie Mae Education Trust, Southwest Student Services Corporation, Student Loan Finance Association and Student Loan Funding
TOTAL West East Midwest South
Citibank 74% 85% 73% 72% 71%
Sallie Mae 46% 51% 49% 35% 53%
Wells Fargo Bank 39% 80% 7% 51% 37%
Key Bank 38% 41% 40% 43% 28%
Wachovia Bank 31% 38% 25% 27% 38%
Bank of America 28% 43% 23% 17% 36%
Chase 27% 30% 16% 25% 37%
Nellie Mae 20% 27% 20% 12% 26%
US Bank 20% 34% 0% 46% 2%
Campus Door 19% 23% 14% 20% 23%Sample size 683 106 192 205 180
Slide 38© Student Lending Analytics, LLC
Agenda
Introduction
Recent Dept. of Education Regulations on Preferred Lender Lists
Development of Preferred Lender Lists– The Process – Selection Criteria– Disclosure of Lending Programs
Trends in Preferred Lender Lists– Stafford and Alternative Lender Lists– Lender Penetration by Loan Program– Geographical Nature of Lender Relationships
Feedback from Lender Community
Slide 39© Student Lending Analytics, LLC
Lender Feedback
Broadly speaking, many expect that borrower benefits will be reduced given the reduction in subsidies…however others taking a “wait and see” approach
– Wells Fargo was first major lender to reduce borrower benefits in significant way– FinanSure has stopped accepting applications for federal loans as of 11/1/2007
Volume of RFI/RFPs has increased significantly; receiving calls from schools that they had not heard from before
RFI/RFP questions have become more sophisticated and seem to have gotten much longer
– Lenders prefer proposals that clearly identify key criteria that will be used to judge proposals
University of Phoenix RFP will be early indicator in evaluating future direction of loan terms and borrower benefits
– Largest FFELP borrower at over $2.3BN in loan commitments in 2006-07– Proposals due back on November 15, 2007
Slide 40© Student Lending Analytics, LLC
Free Consultation to All Webinar Participants
Providing 25 hours of pro-bono consulting over the next month
Send email to [email protected]
In subject line, put “Consultation: SLA Webinar”
We will get back immediately to you to schedule a consultation
Thank you for your participation!
Slide 41© Student Lending Analytics, LLC
Student Lending Analytics – Consulting Services
Lender Selection Criteria development
RFI/RFP Proposals– Drafting– Review and consultation
LenderInsight reports– Provides market penetration data to understand regional strengths– Catalog of borrower benefits provided by given lender at comparable schools– Contact information speeds time to market with proposal
Borrower Satisfaction Surveys– Measure performance of existing lenders – Provide data-driven approach to key element of program
Proposal Evaluation– Valuation of lender benefits– Lender Scorecard enables rigorous, objective method to review proposal
Management Presentation
Slide 42© Student Lending Analytics, LLC
Student Lending Analytics – Lender Insight
Captures information on lender relationships with over 2,500 schools– Origination and federal default fees – Valuation of various borrower benefits
Query Page allows for robust benchmarking analysis– Student population– Annual FFELP loan volume– Default rates– Ownership structure
Versatile report structure allows for meaningful comparisons– Lender Report allows you to compare the deals that your lenders are
providing at comparable schools– School Report allows you to see the lending arrangements that comparable
schools have with ALL of their lenders.
Slide 43© Student Lending Analytics, LLC
Student Lending Analytics – Background
Unbiased, objective, independent consultant and research firm serving the financial aid community
Consult with financial aid directors to create an objective, unbiased and effective lender selection process to ensure compliance while maximizing potential loan benefits to students.
Full suite of research and services– Lender Selection Consulting– Borrower Satisfaction Surveys – Inside Student Lending Newsletter (monthly)– Frequent Webinars – In-Depth Reports – LenderInsight Database