Alternative Loans – Processing Delivery SystemsPresented byCarla Strawn – PNC Bank

I. Some common termsII. Overview of Alt. loan delivery optionsIII. Meeting some of the playersIV. Things to consider when choosing a

SBSV. Exploring a process without SBSVI. Exploring a process with SBSVII. Overview of the PlayersVIII. Questions / Comments

SBS – School Based Software FAMS – Financial Aid Management

System SCR – School Certification Request NDN – National Disbursement Network CDS – Common Disbursement System CDA – Common Disbursement

Agreement

Paper - Fax Certification FAMS – send common-line file directly to

lender - may not be an option with all lenders.

Individual Lender’s websites – Logon certify, download reports, download disbursement roster.

SBS - Use of Alternative Loan Processing Delivery System – on place for most lenders

Elm OpenNet ScholarNet

What’s the minimum functionality that we could work with? What would we like to have at best (our ideal process)?

What lenders participate? For ease of processing, can SCR’s be exported

into excel? Can they be imported directly into your FAMS?

Is the SCR List a diminishing list or must that be managed by the school? (i.e. deleting duplicate requests when your FAMS produces its own unique loan IDs)

How would conversion take place? (drop dead date or checking two systems at same time)

What is the timing for the technical update to go out regarding your change?

Do you want to just do certification through this SBS or disbursement also? (NDN, CDS)

Does the SBS have a FAMS expert on staff that you can contact directly?

How often do they sweep their system for new certifications? (i.e. every hour, every 20 mins, daily?)

Do they offer any training sessions that you can utilize for your staff?

What’s the format of the SCR’s when you export them (if you can export)?

What other reporting capabilities are available?

Pros Cons

May provide more detailed information about application / borrower

May allow for more detail on where borrower falls in Title X process.

Schools must check multiple sites for cert. requests

School MUST manage how requests are received and processed

School staff must learn multiple sites and process

Pros Cons

Manipulate data from all lenders into excel if desired.

Staff only need to learn one process

Maintenance reporting for all lenders in one place.

All lenders may not participate with your SBS of choice

Does require IT support for initial setup with FAMS.

May not give as detailed information as individual lenders site.

System Elm OpenNet ScholarNet

Ind. Lender Sites

Available Disburs. Methods

-Paper Check from lender or originator

-EFT from Lender or originator

-Elm NDN

-Paper Check from lender or originator

-EFT from Lender or originator

-Sallie Mae CDA

-Paper Check from lender or originator

-EFT from Lender or originator

-Great Lakes CDS

-Paper Check from lender or originator

-EFT from Lender or originator

webinars conference calls meeting with representatives talking to your lender representatives talking with other schools

ELM Processing Flow - Overview

School certifies loan (or makes changes to existing loan).

ELM does edit checks.

Loan fails edit checks, posted to ELM Reject File.

School corrects reject.

Certification Request is received by ELM. Report or file is provided to

the school.

Loan posted to ELM.

Lender sends disbursement and update to ELM.

ELM sends loan to lender.

School exports file or certifies/makes changes on ELM.

ELM sends school disbursement and update file for school’s FAM system.

Student applies for private loan on ELMSelect

TRANSACTION MANAGER OVERVIEW (OPENNET)

► Transaction Manager is a web-based product accessed through the FMS log-in process.

► TranMan provides a web interface – allowing schools to create loans, process certification requests and make updates on non-Sallie Mae volume.

► TranMan sends change transactions immediately to lenders according to profiles.

► Utilizes key features of OpenNet FMS such as error checking, destination management and file reconciliation.

► File Types Supported: CommonLine 4 & 5.

Confidential and proprietary information © 2010 Sallie Mae, Inc. All rights reserved.

ScholarNet® Is Great Lakes open, online tool to manage

and exchange private loan data. Benefits for Schools

Easy transition and flexible processing options Provides single entry point into application process Integrated with mygreatlakes.org and related private loan support

tools

Benefits for Borrowers Schools are able to process loans electronically for a wide range of

lenders Maximizes choice and minimizes complexity; faster processing Schools have more time to counsel borrowers

Benefits for Lenders Electronic processing with all ScholarNet schools Supports full electronic loan processing, saving time and improving

customer service Access to ScholarNet information to assist schools and borrowers

SBS – to ensure all setup forms are complete for both certification and disbursement / return funds.

Bursar – to ensure they are ready for fund transactions

Prior provider - if any to ensure they know they should no longer receive file transactions

Lenders – to ensure they work with SBS chosen or to complete an additional setup forms

QUESTIONS?

Education Lending