The Coming REVOLUTION (??)in Student Aid Delivery

November 2, 1998Sponsored by NASFAA, AACRAO, HEWIWashington, D.C.

“Modernization of Student Loans”

Dr. Keith Jepsen(www.nyu.edu/classes/jepsen)Director of Financial AidNew York University

Project EASI Core Team

Evolution not Revolution, but . . . Let’s keep going

• “Revolution”---just a trick to get you here

• Change (modernization) is usually incremental

• Carly wasn’t yet 1 year old when Secretary Riley charged us to: “design, integrate, and develop a world-class comprehensive student financial aid delivery system using state-of-the-art information technology” (Project EASI).

• Last week we celebrated Carly’s 4th birthday.

• Per current ED discussions, Carly will be 9 years old when EASI/ED is “implemented.”

• There’s lots for all of us, not just ED, to do to implement Project EASI (more later).

Past, Present, and Future of Loans, etc. (using NYU for example)

Two Reauthorizations ago:

# Lenders serving NYU clients: 200 +

$ Borrowed: $30 million FFELP

$5 Private

Delivery: Many forms

No standards

“Stovepipe” systems

Past, Present, and Future of Loans, etc. (using NYU for example)

Now:

# Lenders serving NYU clients: 95% in 4

$ Borrowed: $300 mil Federal (DL?) $50 mil Private (incl. International loans)

Delivery: Project EASI -- including EASI/ED -- including SSGSFAFSA on the Web (no other forms)Standards Council -- with ANSIFastWEB.comMulti-Year NoteAccess America for StudentsNY Mentor“NYU On-line, Inc.” (See Chronicle 10/8/98)Clearinghouse

* * * Schools “connected” by 2000 * * *

Performance-Based Organization

Past, Present, and Future of Loans, etc. (using NYU for example)

# Lenders serving NYU clients:

The Future (before the next Reauthorization):

3 (maybe NYU as lender FFELP) [caution re: DL]

$ Borrowed: ? Most students --- private loans too

--- especially international

Delivery:

(“point and click” generation)

Access America = student account

Line of credit

“Web-centric” student services 24 x 7

Open, common, integrated (per Carly)

All providers delivering and being “graded” (SSGS)

Electronic signatures

Personal assistance/assistants

Simulations by clients before “purchase”

NY Mentor--- “choose lender” from the School’s preferred lender list

One-stop shopping

More distance learning

(Stock in “NYU On-line, Inc.”)

What should we do to prepare?How will we get there?

• Support ED to deliver EASI/ED “on time” or sooner

• Schools plan systems with software vendors to do non-ED portion of Project EASI vision

• Get web-enabled

• Think from client’s (Carly’s) perspective

• Think global

• Support the Clearinghouse -- for all students’ enrollment verification

• Support Standards Council

• Support ELM

• Support Access America for Students -- expand pilots

• Work with your state to bring Mentor to your state

• Push for distance learning financial aid

• EASI Corp.??