All --
Here's a link to an article in washingtonpost.com this morning. The article's pretty long, but the gist is ED concerns over potential illegal data mining and associated privacy intrusions of borrowers' data by individuals/organizations with access (lenders, their contractors, even potentially selling the data to collection agencies). The article states Katherine McLane, an Ed Dept spokeswoman, confirmed the database shutdown is under consideration.
I checked and it's (NSLDS) still up right now, but I plan to print out my loan information this afternoon, just in case. If they do take it down, it's anyone's guess how much advance warning there'd be and how widely that would publicized & disseminated, and how long it would last. Just my opinion....
Here's the link - sorry about the cut & paste; I had a problem with html link function. It's the first article - "Lenders Misusing Student Database".
http://www.washingtonpost.com/wp-dyn/content/education/
CindyT
Full Version: Heads up - NSLDS article link
It went down today.
Students can still use the regular version.
All lenders are temporarily blocked from using advanced version.
Students can still use the regular version.
All lenders are temporarily blocked from using advanced version.
Anyone aware how long the shutdown will last? And if there is fear it will never be allowed to be accessed by lenders. Sounds like big brother wants to make it difficult for student loan companies to operate. Also looks like students will be unable to choose who they want to take out a loan with.
QUOTE(Cynic @ Apr 17 2007, 11:12 PM) 
It went down today.
Students can still use the regular version.
All lenders are temporarily blocked from using advanced version.
Students can still use the regular version.
All lenders are temporarily blocked from using advanced version.
QUOTE(ZDirect @ Apr 19 2007, 11:10 AM)
Anyone aware how long the shutdown will last? And if there is fear it will never be allowed to be accessed by lenders.
It's indefinite. Not afraid.
Sounds like big brother wants to make it difficult for student loan companies to operate.
I can think of a two situations in which a lender absolutely needs that info to service an account: reaffirmation letter, and determining "new borrower" flag.
Also looks like students will be unable to choose who they want to take out a loan with.
There is nothing on NSLDS that will help in choosing a lender. NSLDS helps lenders in consolidating existing loans. If you're doing your job properly you don't need NSLDS... it's your borrowers responsibility to list the loans they want consolidated on the app/p-note. If you're just copying and pasting off NSLDS to give them a pre-filled app/note to sign you're A) babying them, and B ) possibly giving them the impression that they aren't responsible for everything on that form.
It's indefinite. Not afraid.
Sounds like big brother wants to make it difficult for student loan companies to operate.
I can think of a two situations in which a lender absolutely needs that info to service an account: reaffirmation letter, and determining "new borrower" flag.
Also looks like students will be unable to choose who they want to take out a loan with.
There is nothing on NSLDS that will help in choosing a lender. NSLDS helps lenders in consolidating existing loans. If you're doing your job properly you don't need NSLDS... it's your borrowers responsibility to list the loans they want consolidated on the app/p-note. If you're just copying and pasting off NSLDS to give them a pre-filled app/note to sign you're A) babying them, and B ) possibly giving them the impression that they aren't responsible for everything on that form.
QUOTE(Cynic @ Apr 19 2007, 11:52 PM)
QUOTE(ZDirect @ Apr 19 2007, 11:10 AM)
Anyone aware how long the shutdown will last? And if there is fear it will never be allowed to be accessed by lenders.
It's indefinite. Not afraid.
Sounds like big brother wants to make it difficult for student loan companies to operate.
I can think of a two situations in which a lender absolutely needs that info to service an account: reaffirmation letter, and determining "new borrower" flag.
Also looks like students will be unable to choose who they want to take out a loan with.
There is nothing on NSLDS that will help in choosing a lender. NSLDS helps lenders in consolidating existing loans. If you're doing your job properly you don't need NSLDS... it's your borrowers responsibility to list the loans they want consolidated on the app/p-note. If you're just copying and pasting off NSLDS to give them a pre-filled app/note to sign you're A) babying them, and B ) possibly giving them the impression that they aren't responsible for everything on that form.
I completely disagree with that last statement Cynic. When I did fed con work for a bit. (keep in mind, I'm a private loan CSR.) NSLDS was absolutely invaluable to completing applications. 99% of the callers didn't have the slightest clue on what their current loan status was in regards to balances and types of loans they held. NSLDS was crucial to fill out the loan for the loan amounts.
QUOTE
I completely disagree with that last statement Cynic. When I did fed con work for a bit. (keep in mind, I'm a private loan CSR.) NSLDS was absolutely invaluable to completing applications. 99% of the callers didn't have the slightest clue on what their current loan status was in regards to balances and types of loans they held. NSLDS was crucial to fill out the loan for the loan amounts.
I disagree with you. Right now the cohort default rate is probably running at less than 7%,which means the rest of the borrowers are either making pays or defering their loans and know how to contact their lenders for this information. Whatever the case is, all the borrower needs to list is the lenders name and approx balance. When the LVC or lender verification certificate is sent to lender, they give an extended pay off amount and other necessary information.
QUOTE(LynnInMN @ Apr 20 2007, 02:04 PM)
QUOTE
I completely disagree with that last statement Cynic. When I did fed con work for a bit. (keep in mind, I'm a private loan CSR.) NSLDS was absolutely invaluable to completing applications. 99% of the callers didn't have the slightest clue on what their current loan status was in regards to balances and types of loans they held. NSLDS was crucial to fill out the loan for the loan amounts.
I disagree with you. Right now the cohort default rate is probably running at less than 7%,which means the rest of the borrowers are either making pays or defering their loans and know how to contact their lenders for this information. Whatever the case is, all the borrower needs to list is the lenders name and approx balance. When the LVC or lender verification certificate is sent to lender, they give an extended pay off amount and other necessary information.
I can understand your disagreement. I'm only familiar from a pure theoritical standpoint how the back end processing part works. (and that knowledge is fading into the mists of time.) From my limited experience in working fed con, NSLDS was extremely important b/c the student didn't know anything about the holder and different types of loans, and the approximate balances. The majority of people I took applications from, were surprised as the extent of their debt load. It was rare to find some one that knew the particulars of their situation.
Majority of the business we do are new federal student loan consolidations - Recent College Grads or Students who are graduating really soon - May/June. Just a month away. Most don't know who they owe or how much.
They took out their loans at school from their financial aid office and 4 years later they do not remember who they are with. I find that most who think they have a huge debt usually don't and those that don't think it's that much are shocked when they get the figures.
Also the impulse factor. You might get someone who is inquiring which can be turned around into a sale but if we can't provide them with the figures and we are just asking them they get cold feet and want to shop around. Others swear they have never consolidated before but then NSLDS show they consolidated already.
It's not just to calculate the loans and to make it easy. It really is crucial to operate effictively. Can you imagine going into a BMW Dealer with no credit report access and wanting to buy a car but the dealer is unable to determine you are eligible for a loan? Yes, we need NSLDS to determine eligibility.
Wouldn't life be grand if we could just walk in and buy a home or car by just saying I have great credit and go by my word and that's it.
I disagree with you. Right now the cohort default rate is probably running at less than 7%,which means the rest of the borrowers are either making pays or defering their loans and know how to contact their lenders for this information. Whatever the case is, all the borrower needs to list is the lenders name and approx balance. When the LVC or lender verification certificate is sent to lender, they give an extended pay off amount and other necessary information.
I can understand your disagreement. I'm only familiar from a pure theoritical standpoint how the back end processing part works. (and that knowledge is fading into the mists of time.) From my limited experience in working fed con, NSLDS was extremely important b/c the student didn't know anything about the holder and different types of loans, and the approximate balances. The majority of people I took applications from, were surprised as the extent of their debt load. It was rare to find some one that knew the particulars of their situation.
They took out their loans at school from their financial aid office and 4 years later they do not remember who they are with. I find that most who think they have a huge debt usually don't and those that don't think it's that much are shocked when they get the figures.
Also the impulse factor. You might get someone who is inquiring which can be turned around into a sale but if we can't provide them with the figures and we are just asking them they get cold feet and want to shop around. Others swear they have never consolidated before but then NSLDS show they consolidated already.
It's not just to calculate the loans and to make it easy. It really is crucial to operate effictively. Can you imagine going into a BMW Dealer with no credit report access and wanting to buy a car but the dealer is unable to determine you are eligible for a loan? Yes, we need NSLDS to determine eligibility.
Wouldn't life be grand if we could just walk in and buy a home or car by just saying I have great credit and go by my word and that's it.
QUOTE(ignoranceIsn'tBliss @ Apr 20 2007, 04:36 PM)
QUOTE(LynnInMN @ Apr 20 2007, 02:04 PM)
QUOTE
I completely disagree with that last statement Cynic. When I did fed con work for a bit. (keep in mind, I'm a private loan CSR.) NSLDS was absolutely invaluable to completing applications. 99% of the callers didn't have the slightest clue on what their current loan status was in regards to balances and types of loans they held. NSLDS was crucial to fill out the loan for the loan amounts.
I disagree with you. Right now the cohort default rate is probably running at less than 7%,which means the rest of the borrowers are either making pays or defering their loans and know how to contact their lenders for this information. Whatever the case is, all the borrower needs to list is the lenders name and approx balance. When the LVC or lender verification certificate is sent to lender, they give an extended pay off amount and other necessary information.
I can understand your disagreement. I'm only familiar from a pure theoritical standpoint how the back end processing part works. (and that knowledge is fading into the mists of time.) From my limited experience in working fed con, NSLDS was extremely important b/c the student didn't know anything about the holder and different types of loans, and the approximate balances. The majority of people I took applications from, were surprised as the extent of their debt load. It was rare to find some one that knew the particulars of their situation.
QUOTE(ZDirect @ Apr 24 2007, 05:49 PM)
Majority of the business we do are new federal student loan consolidations - Recent College Grads or Students who are graduating really soon - May/June. Just a month away. Most don't know who they owe or how much.
That's why they have exit counseling. NSLDS is part of it. Since they are required to notify their loan holders of changes in enrollment, address, etc they need to know who has their loans.
Companies that do FFELP consolidations as the majority of their business (ie "Educational Direct"/ Affinity, OneSimpleLoan, etc) almost never actually service the loans, and are usually staffed almost entirely by used-car salesman types that are paid commission based on how many app/p-notes they get. These companies are the source of the complaints that lead to lender NSLDS access being disabled. Almost all of the people previously banned from NSLDS for inappropriate use worked for such companies.
They took out their loans at school from their financial aid office and 4 years later they do not remember who they are with. I find that most who think they have a huge debt usually don't and those that don't think it's that much are shocked when they get the figures.
Also the impulse factor. You might get someone who is inquiring which can be turned around into a sale but if we can't provide them with the figures and we are just asking them they get cold feet and want to shop around. Others swear they have never consolidated before but then NSLDS show they consolidated already.
Impulse is not a good reason to consolidate, since they may be repaying the loan for 30 years... what's good for your paycheck may not be what's best for the borrower.
It's not just to calculate the loans and to make it easy. It really is crucial to operate effictively. Can you imagine going into a BMW Dealer with no credit report access and wanting to buy a car but the dealer is unable to determine you are eligible for a loan? Yes, we need NSLDS to determine eligibility.
LVCs determine eligibility, not NSLDS.
Wouldn't life be grand if we could just walk in and buy a home or car by just saying I have great credit and go by my word and that's it.
I'm sorry but I don't agree with your analogy. You don't go to a bank and apply for a car/house loan and not know what you are buying, what it will cost, and who the bank needs to pay. You can't reasonably expect a bank to issue a loan when you can't even fill out the application.
That's why they have exit counseling. NSLDS is part of it. Since they are required to notify their loan holders of changes in enrollment, address, etc they need to know who has their loans.
Companies that do FFELP consolidations as the majority of their business (ie "Educational Direct"/ Affinity, OneSimpleLoan, etc) almost never actually service the loans, and are usually staffed almost entirely by used-car salesman types that are paid commission based on how many app/p-notes they get. These companies are the source of the complaints that lead to lender NSLDS access being disabled. Almost all of the people previously banned from NSLDS for inappropriate use worked for such companies.
They took out their loans at school from their financial aid office and 4 years later they do not remember who they are with. I find that most who think they have a huge debt usually don't and those that don't think it's that much are shocked when they get the figures.
Also the impulse factor. You might get someone who is inquiring which can be turned around into a sale but if we can't provide them with the figures and we are just asking them they get cold feet and want to shop around. Others swear they have never consolidated before but then NSLDS show they consolidated already.
Impulse is not a good reason to consolidate, since they may be repaying the loan for 30 years... what's good for your paycheck may not be what's best for the borrower.
It's not just to calculate the loans and to make it easy. It really is crucial to operate effictively. Can you imagine going into a BMW Dealer with no credit report access and wanting to buy a car but the dealer is unable to determine you are eligible for a loan? Yes, we need NSLDS to determine eligibility.
LVCs determine eligibility, not NSLDS.
Wouldn't life be grand if we could just walk in and buy a home or car by just saying I have great credit and go by my word and that's it.
I'm sorry but I don't agree with your analogy. You don't go to a bank and apply for a car/house loan and not know what you are buying, what it will cost, and who the bank needs to pay. You can't reasonably expect a bank to issue a loan when you can't even fill out the application.
QUOTE(Cynic @ Apr 25 2007, 12:03 AM)
QUOTE(ZDirect @ Apr 24 2007, 05:49 PM)
Majority of the business we do are new federal student loan consolidations - Recent College Grads or Students who are graduating really soon - May/June. Just a month away. Most don't know who they owe or how much.
That's why they have exit counseling. NSLDS is part of it. Since they are required to notify their loan holders of changes in enrollment, address, etc they need to know who has their loans.
Companies that do FFELP consolidations as the majority of their business (ie "Educational Direct"/ Affinity, OneSimpleLoan, etc) almost never actually service the loans, and are usually staffed almost entirely by used-car salesman types that are paid commission based on how many app/p-notes they get. These companies are the source of the complaints that lead to lender NSLDS access being disabled. Almost all of the people previously banned from NSLDS for inappropriate use worked for such companies.
Yes, I agree with you 100% on this. Boiler rooms like Educational Direct/Affinity Direct, LLC have taken the marketing of the product to an extreme. A very negative extreme. I know people that have worked for them and it is a fact that they put so much pressure on a sales rep to get a sign app, they are not even allowed to go out for lunch. They have a family member of an employee who cooks food from home usually sandwich wraps and some other slop. They are to eat their lunch at their desk while being on an auto dialer. I just thought I would share that. It's the weirdest thing I ever heard but was confirmed by quite a few.
Most borrowers took out their loans at school from their financial aid office and 4 years later they do not remember who they are with. I find that most who think they have a huge debt usually don't and those that don't think it's that much are shocked when they get the figures.
Also the impulse factor. You might get someone who is inquiring which can be turned around into a sale but if we can't provide them with the figures and we are just asking them they get cold feet and want to shop around. Others swear they have never consolidated before but then NSLDS show they consolidated already.
Impulse is not a good reason to consolidate, since they may be repaying the loan for 30 years... what's good for your paycheck may not be what's best for the borrower.
So we should not help the borrower with a program that can reduce their interest rate? Or fix their current variable rate. I have to disagree with you on this one, procrastinating does not help a borrower either. Rates jumped in 2005 2 points and another 2 points in 2006. You know it's a standardized industry, the rates can't be bargained with, you can only fix their current rate and apply discounts for auto pay and payments ontime.For example lets say we have a borrower LVC at 7.14. It wil be fixed at that rate regardless who is the lender or servicer the borrower chooses. I know the borrower benefits are the only difference per lender but even those are pretty much the same too. You have your auto pay and ontime payments. And keep in mind you can only have that on time payment reduction after you consolidate. There is no reason not to do it. You do not have to extend your loan, you can keep your same 10 year term if you want. I do not know of any federal student loan consolidation lender that has a prepayment penalty.
It is obvious that the federal government wants to have a monopoly on this 85 billion dollar industry, they want to get rid if the FFEL program and not give the student the choice to have a stafford loan with a lender of their own choosing and not have the choice to consolidate with anyone else other than the William D Ford's Federal Direct Loan Program. And that should be scary for everyone. Choices and competition is what helps bring better services and lower costs to consumers.
It's not just to calculate the loans and to make it easy. It really is crucial to operate effictively. Can you imagine going into a BMW Dealer with no credit report access and wanting to buy a car but the dealer is unable to determine you are eligible for a loan? Yes, we need NSLDS to determine eligibility.
LVCs determine eligibility, not NSLDS.
Wouldn't life be grand if we could just walk in and buy a home or car by just saying I have great credit and go by my word and that's it.
I'm sorry but I don't agree with your analogy. You don't go to a bank and apply for a car/house loan and not know what you are buying, what it will cost, and who the bank needs to pay. You can't reasonably expect a bank to issue a loan when you can't even fill out the application.
That is my point. We have borrowers contacting us knowing they want to consolidate but unable to fill out the application correctly. Borrowers in default are not really being forthcoming about being in default. And once again back to the fact of "yes" they are unsure how much they owe and who they owe. Who are their lenders and servicers? I've been dealing with this directly along with many others in this industry. Why are you so opposed to someone sharing their experience and voicing how difficult it has been to function without NSLDS. Why are you so pro NSLDS being shutdown? Anyone that is abusing the system, I agree should not have access to it. Are you anyway involved with the shutdown? Do you have anything to gain from it? I find it very strange that you are so into defending shutdown. Companies who are aggressively marketing students with mailers are getting the contact information from elsewhere. Credit reports from companies such as Experian who sell list. You can not get an email address from NSLDS, you can not get a phone number from NSLDS and you can not get a home address from NSLDS. NSLDS is used to determine a borrowers eligibilty (In Default? Loans over 10K?, Not consolidated Already), it's used to calculate a borrowers new monthly payment. (They all ask what will their new payment be? If I can't give them an answer then they will not want to do business with me). It is used to process an LVC correctly by sending the LVC request to the right servicer and lender. Enough with this "borrower should know their lenders and servicers already. I really wish that were so.
QUOTE(ignoranceIsn'tBliss @ Apr 20 2007, 04:36 PM)
QUOTE(LynnInMN @ Apr 20 2007, 02:04 PM)
QUOTE
I completely disagree with that last statement Cynic. When I did fed con work for a bit. (keep in mind, I'm a private loan CSR.) NSLDS was absolutely invaluable to completing applications. 99% of the callers didn't have the slightest clue on what their current loan status was in regards to balances and types of loans they held. NSLDS was crucial to fill out the loan for the loan amounts.
I disagree with you. Right now the cohort default rate is probably running at less than 7%,which means the rest of the borrowers are either making pays or defering their loans and know how to contact their lenders for this information. Whatever the case is, all the borrower needs to list is the lenders name and approx balance. When the LVC or lender verification certificate is sent to lender, they give an extended pay off amount and other necessary information.
I can understand your disagreement. I'm only familiar from a pure theoritical standpoint how the back end processing part works. (and that knowledge is fading into the mists of time.) From my limited experience in working fed con, NSLDS was extremely important b/c the student didn't know anything about the holder and different types of loans, and the approximate balances. The majority of people I took applications from, were surprised as the extent of their debt load. It was rare to find some one that knew the particulars of their situation.
You are absolutely correct. Most students don't know who or how much they owe. It's really frustrating not having NSLDS. It feels like I can be wasting alot of time and being inefficient by working on applications that might not be eligible whatsoever
[quote name='ZDirect' date='Apr 25 2007, 11:40 PM' post='2238588']
[quote name='Cynic' post='2235409' date='Apr 25 2007, 12:03 AM']
[quote name='ZDirect' post='2234493' date='Apr 24 2007, 05:49 PM']
Yes, I agree with you 100% on this. Boiler rooms like Educational Direct/Affinity Direct, LLC have taken the marketing of the product to an extreme. A very negative extreme. I know people that have worked for them and it is a fact that they put so much pressure on a sales rep to get a sign app, they are not even allowed to go out for lunch. They have a family member of an employee who cooks food from home usually sandwich wraps and some other slop. They are to eat their lunch at their desk while being on an auto dialer. I just thought I would share that. It's the weirdest thing I ever heard but was confirmed by quite a few.
[/quote]
Oh my god, that is a horrible call center. I've done call center work for close to 9 years, and I've never been in places like that. I've heard rumors of bad places like that. Those type of places need a visit from whomever enforces the labor laws in that area.
I've never heard of someone being forced to eat while they are working. It more smacks of people not being aware of their rights, and not willing to stand up for themselves. I've heard of places that don't allow people to go for a break until they get a sale, but never lunch while working.
as for the pressure, yeah every place has to have goals in order to succeed. unfortunately phone sales work is a numbers game. And sometimes you are just going to have a bad stretch of luck. I've known tons of people who are a top performer one month, then the next month they couldn't get a single sale. any person that works in a sales environment can testify to being pressured to perform. Sometimes, in the more fly by night, minimum wage call centers, employees aren't treated very well and so employers can get away with a lot of crap.
[quote name='Cynic' post='2235409' date='Apr 25 2007, 12:03 AM']
[quote name='ZDirect' post='2234493' date='Apr 24 2007, 05:49 PM']
Yes, I agree with you 100% on this. Boiler rooms like Educational Direct/Affinity Direct, LLC have taken the marketing of the product to an extreme. A very negative extreme. I know people that have worked for them and it is a fact that they put so much pressure on a sales rep to get a sign app, they are not even allowed to go out for lunch. They have a family member of an employee who cooks food from home usually sandwich wraps and some other slop. They are to eat their lunch at their desk while being on an auto dialer. I just thought I would share that. It's the weirdest thing I ever heard but was confirmed by quite a few.
[/quote]
Oh my god, that is a horrible call center. I've done call center work for close to 9 years, and I've never been in places like that. I've heard rumors of bad places like that. Those type of places need a visit from whomever enforces the labor laws in that area.
I've never heard of someone being forced to eat while they are working. It more smacks of people not being aware of their rights, and not willing to stand up for themselves. I've heard of places that don't allow people to go for a break until they get a sale, but never lunch while working.
as for the pressure, yeah every place has to have goals in order to succeed. unfortunately phone sales work is a numbers game. And sometimes you are just going to have a bad stretch of luck. I've known tons of people who are a top performer one month, then the next month they couldn't get a single sale. any person that works in a sales environment can testify to being pressured to perform. Sometimes, in the more fly by night, minimum wage call centers, employees aren't treated very well and so employers can get away with a lot of crap.
QUOTE(ZDirect @ Apr 24 2007, 05:49 PM)
So we should not help the borrower with a program that can reduce their interest rate? Or fix their current variable rate.
I never said you shouldn't do consolidations. My issue is that borrowers need to know what they owe, who they owe, and under what terms, before they can possibly decide whether or not consolidation is best for them.
For example lets say we have a borrower LVC at 7.14. It wil be fixed at that rate regardless who is the lender or servicer the borrower chooses.
Right... you're not necessarily doing them a favor by locking them in at the highest rate in the past 10 years, rounded up to 7.25%
I know the borrower benefits are the only difference per lender but even those are pretty much the same too. You have your auto pay and ontime payments. And keep in mind you can only have that on time payment reduction after you consolidate.
That's not true. Some lenders offer reductions on Stafford and Plus loans, and they do not all require a certain number of on-time payments. If they have them, they are almost always better then the 1.25% tops they're going to get from you. If they have no clue what they have, they can't make an informed decision.
There is no reason not to do it.
That's complete and total bull. Again, all variable-rate loans are currently at the highest rate in 10 years. Perkins loans become unsubsidized and lose many forgiveness and cancellation benefits if consolidated. I can elaborate more, but those 2 examples alone are enough.
You do not have to extend your loan, you can keep your same 10 year term if you want. I do not know of any federal student loan consolidation lender that has a prepayment penalty. FFELP lenders can't charge a prepayment penalty. Used-car guys sometimes represent this as being some benefit they offer, when it's really federal law.
It is obvious that the federal government wants to have a monopoly on this 85 billion dollar industry, they want to get rid if the FFEL program and not give the student the choice to have a stafford loan with a lender of their own choosing and not have the choice to consolidate with anyone else other than the William D Ford's Federal Direct Loan Program. And that should be scary for everyone. Choices and competition is what helps bring better services and lower costs to consumers.
Although some of the creators of the Direct Loan program wanted it to replace the FFELP program, it was actually passed into law with the stipulation that it could never have more then 70% of the market. Initially about 30% of the schools signed up, and that has since gone down. Currently, less then 20% of the schools that participate in Title IV student aid are Direct Loan schools. There is absolutely no evidence that the the majority of congress, or ED, wants to get rid of the FFELP.
I've been dealing with this directly along with many others in this industry.
So have I.
Why are you so opposed to someone sharing their experience and voicing how difficult it has been to function without NSLDS.
Are you trying to imply that I'm opposing your free speech by disagreeing with you? Excuse the hell out of me, but I have free speech too, and expressing my disagreement with your opinion is not an act of censorship.
Why are you so pro NSLDS being shutdown?
I am not in favor of NSLDS being shut down, and never said I was.
Are you anyway involved with the shutdown? NO.
Do you have anything to gain from it? I find it very strange that you are so into defending shutdown.
Again, I never said I was in favor of NSLDS being shut down. I suspect you, on the other hand, may have a financial motive for wanting it back up ASAP. I didn't gain anything from it being shutdown, and will gain nothing when it comes back up.
Companies who are aggressively marketing students with mailers are getting the contact information from elsewhere.
I agree.
Credit reports from companies such as Experian who sell list. You can not get an email address from NSLDS, you can not get a phone number from NSLDS and you can not get a home address from NSLDS.
That's absolutely correct. Furthermore, you can not get a list of people to solicit consolidation to from NSLDS, contrary to what some media reports are implying. It was possible to feed SSNs you already had into NSLDS to see who might meet initial eligibility criteria, and, although illegal, it was possible to do so without the borrowers knowledge or consent. It was also possible to use the loan info on NSLDS to perform fraudulent consolidations.
NSLDS is used to determine a borrowers eligibilty (In Default? Loans over 10K?, Not consolidated Already),
it's used to calculate a borrowers new monthly payment. (They all ask what will their new payment be? If I can't give them an answer then they will not want to do business with me).
Of course they want to know that. When I do consolidation apps, which happens once in a blue moon, I start with a blanket statement that I can give them an estimate based on the info they give me, and that the actual interest rate, payment amount, and balance will be based on the exact figures certified by their lenders on the LVC. The normal response is "of course".
If they understand the better the info they give, the better estimate they get, they will gather the info and call back or go on the web to apply once they have it. Since most of them already have most of their loans with us, it's not that hard.
It is used to process an LVC correctly by sending the LVC request to the right servicer and lender. Enough with this "borrower should know their lenders and servicers already. I really wish that were so.
Unbelievable as it may be to you, the vast majority of borrowers know who their lender servicers are. Most of our consolidation loans came from stafford and plus loans we serviced. We're one of the biggest FFELP lenders in the country, and our default rate is below 5%. If they didn't know we had their loans, they wouldn't have been able to consolidate them with us.
I have no clue what small-time nobody marketer you work for, but FYI over 90% of all the FFELs and FDLs that exist are with 5 entities. Most borrowers do consolidate, and the vast majority do it with the company or organization that gave them their loans in the 1st place.
NSLDS lockdown hurts legitimate lenders in servicing accounts somewhat, and hurts the aggressive used-car salesmen that are out of pillage the portfolios of legitimate lenders before the loans even go into grace a lot more.
What's probably going to happen? They're going to make it a bit harder for lenders to get info for a borrower they don't have an existing relationship with, and hopefully ask schools to make it a bit more clear to students that the loans will be reported to at least one CRA, that CRAs routinely sell lists of student loan borrowers to companies that market FFELP consolidations, and that the students can opt-out of having their information sold and thereby avoid getting bombarded by companies they've never heard of long before they graduate. Problem solved.
I never said you shouldn't do consolidations. My issue is that borrowers need to know what they owe, who they owe, and under what terms, before they can possibly decide whether or not consolidation is best for them.
For example lets say we have a borrower LVC at 7.14. It wil be fixed at that rate regardless who is the lender or servicer the borrower chooses.
Right... you're not necessarily doing them a favor by locking them in at the highest rate in the past 10 years, rounded up to 7.25%
I know the borrower benefits are the only difference per lender but even those are pretty much the same too. You have your auto pay and ontime payments. And keep in mind you can only have that on time payment reduction after you consolidate.
That's not true. Some lenders offer reductions on Stafford and Plus loans, and they do not all require a certain number of on-time payments. If they have them, they are almost always better then the 1.25% tops they're going to get from you. If they have no clue what they have, they can't make an informed decision.
There is no reason not to do it.
That's complete and total bull. Again, all variable-rate loans are currently at the highest rate in 10 years. Perkins loans become unsubsidized and lose many forgiveness and cancellation benefits if consolidated. I can elaborate more, but those 2 examples alone are enough.
You do not have to extend your loan, you can keep your same 10 year term if you want. I do not know of any federal student loan consolidation lender that has a prepayment penalty. FFELP lenders can't charge a prepayment penalty. Used-car guys sometimes represent this as being some benefit they offer, when it's really federal law.
It is obvious that the federal government wants to have a monopoly on this 85 billion dollar industry, they want to get rid if the FFEL program and not give the student the choice to have a stafford loan with a lender of their own choosing and not have the choice to consolidate with anyone else other than the William D Ford's Federal Direct Loan Program. And that should be scary for everyone. Choices and competition is what helps bring better services and lower costs to consumers.
Although some of the creators of the Direct Loan program wanted it to replace the FFELP program, it was actually passed into law with the stipulation that it could never have more then 70% of the market. Initially about 30% of the schools signed up, and that has since gone down. Currently, less then 20% of the schools that participate in Title IV student aid are Direct Loan schools. There is absolutely no evidence that the the majority of congress, or ED, wants to get rid of the FFELP.
I've been dealing with this directly along with many others in this industry.
So have I.
Why are you so opposed to someone sharing their experience and voicing how difficult it has been to function without NSLDS.
Are you trying to imply that I'm opposing your free speech by disagreeing with you? Excuse the hell out of me, but I have free speech too, and expressing my disagreement with your opinion is not an act of censorship.
Why are you so pro NSLDS being shutdown?
I am not in favor of NSLDS being shut down, and never said I was.
Are you anyway involved with the shutdown? NO.
Do you have anything to gain from it? I find it very strange that you are so into defending shutdown.
Again, I never said I was in favor of NSLDS being shut down. I suspect you, on the other hand, may have a financial motive for wanting it back up ASAP. I didn't gain anything from it being shutdown, and will gain nothing when it comes back up.
Companies who are aggressively marketing students with mailers are getting the contact information from elsewhere.
I agree.
Credit reports from companies such as Experian who sell list. You can not get an email address from NSLDS, you can not get a phone number from NSLDS and you can not get a home address from NSLDS.
That's absolutely correct. Furthermore, you can not get a list of people to solicit consolidation to from NSLDS, contrary to what some media reports are implying. It was possible to feed SSNs you already had into NSLDS to see who might meet initial eligibility criteria, and, although illegal, it was possible to do so without the borrowers knowledge or consent. It was also possible to use the loan info on NSLDS to perform fraudulent consolidations.
NSLDS is used to determine a borrowers eligibilty (In Default? Loans over 10K?, Not consolidated Already),
it's used to calculate a borrowers new monthly payment. (They all ask what will their new payment be? If I can't give them an answer then they will not want to do business with me).
Of course they want to know that. When I do consolidation apps, which happens once in a blue moon, I start with a blanket statement that I can give them an estimate based on the info they give me, and that the actual interest rate, payment amount, and balance will be based on the exact figures certified by their lenders on the LVC. The normal response is "of course".
If they understand the better the info they give, the better estimate they get, they will gather the info and call back or go on the web to apply once they have it. Since most of them already have most of their loans with us, it's not that hard.
It is used to process an LVC correctly by sending the LVC request to the right servicer and lender. Enough with this "borrower should know their lenders and servicers already. I really wish that were so.
Unbelievable as it may be to you, the vast majority of borrowers know who their lender servicers are. Most of our consolidation loans came from stafford and plus loans we serviced. We're one of the biggest FFELP lenders in the country, and our default rate is below 5%. If they didn't know we had their loans, they wouldn't have been able to consolidate them with us.
I have no clue what small-time nobody marketer you work for, but FYI over 90% of all the FFELs and FDLs that exist are with 5 entities. Most borrowers do consolidate, and the vast majority do it with the company or organization that gave them their loans in the 1st place.
NSLDS lockdown hurts legitimate lenders in servicing accounts somewhat, and hurts the aggressive used-car salesmen that are out of pillage the portfolios of legitimate lenders before the loans even go into grace a lot more.
What's probably going to happen? They're going to make it a bit harder for lenders to get info for a borrower they don't have an existing relationship with, and hopefully ask schools to make it a bit more clear to students that the loans will be reported to at least one CRA, that CRAs routinely sell lists of student loan borrowers to companies that market FFELP consolidations, and that the students can opt-out of having their information sold and thereby avoid getting bombarded by companies they've never heard of long before they graduate. Problem solved.
It's back:)
QUOTE(Cynic @ Apr 25 2007, 12:03 AM)
QUOTE(ZDirect @ Apr 24 2007, 05:49 PM)
Majority of the business we do are new federal student loan consolidations - Recent College Grads or Students who are graduating really soon - May/June. Just a month away. Most don't know who they owe or how much.
That's why they have exit counseling. NSLDS is part of it. Since they are required to notify their loan holders of changes in enrollment, address, etc they need to know who has their loans.
Companies that do FFELP consolidations as the majority of their business (ie "Educational Direct"/ Affinity, OneSimpleLoan, etc) almost never actually service the loans, and are usually staffed almost entirely by used-car salesman types that are paid commission based on how many app/p-notes they get. These companies are the source of the complaints that lead to lender NSLDS access being disabled. Almost all of the people previously banned from NSLDS for inappropriate use worked for such companies.
They took out their loans at school from their financial aid office and 4 years later they do not remember who they are with. I find that most who think they have a huge debt usually don't and those that don't think it's that much are shocked when they get the figures.
Also the impulse factor. You might get someone who is inquiring which can be turned around into a sale but if we can't provide them with the figures and we are just asking them they get cold feet and want to shop around. Others swear they have never consolidated before but then NSLDS show they consolidated already.
Impulse is not a good reason to consolidate, since they may be repaying the loan for 30 years... what's good for your paycheck may not be what's best for the borrower.
It's not just to calculate the loans and to make it easy. It really is crucial to operate effictively. Can you imagine going into a BMW Dealer with no credit report access and wanting to buy a car but the dealer is unable to determine you are eligible for a loan? Yes, we need NSLDS to determine eligibility.
LVCs determine eligibility, not NSLDS.
Wouldn't life be grand if we could just walk in and buy a home or car by just saying I have great credit and go by my word and that's it.
I'm sorry but I don't agree with your analogy. You don't go to a bank and apply for a car/house loan and not know what you are buying, what it will cost, and who the bank needs to pay. You can't reasonably expect a bank to issue a loan when you can't even fill out the application.
I graduated from college in 2004 and I never had any type of exit counseling regarding my student loans...schools usually do this?
QUOTE(ToniOne @ May 23 2007, 12:23 AM)
I graduated from college in 2004 and I never had any type of exit counseling regarding my student loans...schools usually do this?
All schools must offer it. Unfortunately, there is nothing to make you do it, but people that do tend to default less. The big student loan servicers offer it online. At the 2 links below, you do not even have to have an account to do it:)
Direct Loans Counseling
Nelnet Counseling
QUOTE(Cynic @ May 23 2007, 03:06 AM)
QUOTE(ToniOne @ May 23 2007, 12:23 AM)
I graduated from college in 2004 and I never had any type of exit counseling regarding my student loans...schools usually do this?
All schools must offer it. Unfortunately, there is nothing to make you do it, but people that do tend to default less. The big student loan servicers offer it online. At the 2 links below, you do not even have to have an account to do it:)
Direct Loans Counseling
Nelnet Counseling
wow the things you learn after the fact
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