[Lender] Upate on OU's 2002-2003 loan process, Disb Date Charts, etc.

Tue Mar 5 17:42:32 CST 2002

	Lenders, Guarantors, Servicers, lend me your ears!

> 	Wanted to update everyone on our plans for the new aid year, which
> is fast approaching:
> 
> 	1.  OU will begin using NetWizard's on-line loan application (school
> initiated only) for Stafford and PLUS Loans beginning with the Fall 2002
> loan period.  
> 
		We will continue to transmit Stafford Loans for guarantee &
print but with a "prom note delivery code" of "web".    Borrowers will
receive information with their award letters advising them to retrieve their
MPNs & certified PLUS applications from NetWizard.    After a specified
number of days, any notes/applications still sitting on the NetWizard system
will automatically be printed & mailed to the borrower.  

> 	Note:  Students & parents will not be allowed to "request" loans via
> NetWizard (called "borrower initiated" loans).  Students & parents will be
> directed to the NetWizard site to retrieve their MPN/PLUS promissory note
> AFTER OU has packaged their aid and certified their loans.   
> 
> 	2.  OU has been selected to participate in the development of the
> new Sallie Mae product as a pilot school.   Phase 1, the new Open Net
> transmission vehicle, begins in early April.   
> 
> 	We will continue to use WhizKid as our loan processing software, but
> the Open Net component will allow us to transmit loan records to
> guarantors who do not utilize the Eagle system at SLMA/USAG if we need to.
> (Note:  we are still strongly encouraging students to utilize lenders on
> our lender list with an OGSLP guarantee to enable them to access their
> loan notes via NetWizard.)  
> 	 
> 	3.  We expect to begin certifying loans for the 2002-2003 school
> year the week of March 11.   
> 
> 	I've attached our new chart for the upcoming loan periods so you can
> plan for our disbursements.  Please note there are 2 pages to the chart;
> I've created a separate chart on the second page for loans that are
> disbursed via checks (primarily PLUS Loans).    
> 
> 	All of our Stafford Loans will be certified with the disbursement
> dates shown on the first page, which are scheduled to comply with the cash
> management regulations for EFT.  Although we could legally have requested
> the Spring 2003 Stafford disbursement as early as 12/31, I know that
> scheduling disbursements on 12/31 or 01/01 often causes systems problems,
> so we pushed it to 01/02/2003.  
> 
> 	 <<2002-2003 Dates for Lenders.doc>> 
> 	I also have a more comprehensive document that contains all the
> regulatory citations and explanations for our disbursement process.  If
> you or any of your client schools have any need or desire to see the extra
> 5 pages of babbling, feel free to ask me for it and I'll share.  
> 
> 	4.  The 2002-2003 OU Lender List is attached.  We require all
> applicants to select a lender before their aid will be processed.  This
> form is available for them to submit even before they submit their 02-03
> FAFSA.  If the student has NOT selected a lender when the FAFSA record
> arrives, we send him another Lender Selection Form---with more forceful
> language.  If he hasn't responded in 30 days, we assign him to a lender.
> Note:  we DO carry over the lender code from one year to the next, so
> students only have to submit this form once---unless they decide to change
> lenders.  
> 
> 	You'll note that I've changed the listing on the back to give
> students more information about the origination & servicing connection of
> these lenders.   Although I did not have room to do that for the lenders
> on the front of the list,  our staff does have the info about the
> origination & servicing connections of all the lenders on both sides so
> they can accurately advise students about who originates their loan, where
> it is serviced, etc.    
> 
> 	5.  Students with prior loan balances whose guarantors or lenders
> are not accessible via Eagle/NetWizard:  In 2001-2002, we attempted to
> certify new loans for students with their original guarantor & lender,
> even if that guarantor wasn't within the Eagle system.   "One lender, one
> guarantor IF PRACTICAL" is the regulatory wording----well,  it is NOT
> practical and our loan processing staff has the scars to prove it.  After
> this experience, we've come to the conclusion that this also negatively
> impacts our service level to these students and other students too.  These
> students miss out on on-line loan application, EFT and our automatic
> deposit service, as well as slowing down our process for themselves and
> all our other students.  
> 
> 	So, for 2002-2003, we will be asking these students to select a new
> lender----one of you.   And, if they don't respond to our request, we will
> assign them to you (we rotate lenders so everybody gets a fair share).
> These students will receive new MPNs if necessary.  We are confident that
> you can help us help our students understand our reason for doing this.  
> 
		(Note:  if you had loan volume through a non-Eagle guarantor
in 2001-2002, we are changing the guarantor to OGSLP or USAF and keeping you
as their lender.  So, if you had "outside" volume, don't worry, they still
belong to you, but they will move to our preferred guarantor and within our
preferred process.) 

> 	But, didn't I just say that we were going to transmit to guarantors
> outside the Eagle/NetWizard world using OpenNet? Then why switch these
> students to our preferred lenders? Just because we'll be able to transmit
> outside the Eagle/NetWizard world still doesn't mean we think it's a good
> idea, but we'll be able to use the Open Net function if someone insists on
> not taking our advice.  
> 	 <<Lender Selection Form-FAFSA2.doc>> 
> 
> 	Pam McConahay
> 	Asst Dir., Compliance & Support Svcs
> 	University of Oklahoma Financial Aid Services
> 	731 Elm, Rm 125, Norman OK 73019-2111
> 	(405) 325-4617, fax (405) 325-7608
> 	pmcconahay at ou.edu 
> 
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