Campus Partners

Update Newsletter
May 31, 2004

New Product: eXpressReports

eXpressReports, our new product for on-line reports is available now! With eXpressReports, you have immediate access to your weekly and monthly reports in an easy to use format. All you need to get started is an ID and password. For more information, see our New Products Update included with this issue of Update.

Transition News

On June 1, 2004 our name will change to Campus Partners. With this name change comes a new logo, new Web and e-mail addresses, mission statement, and a renewed commitment to our customers and technology. In conjunction with our new owners, our staff is currently working hard to bring several new products to the market in the next few weeks. eXpressReports is already up and running, and the launch of E-Billing is just days away. (Read more about these exciting products in our New Product Update.)

In case you missed last month’s article about the name change, please see your April Update for more information. The issue details information about changes that you need to be aware of, such as Web and e-mail address changes. As always, if you have any questions, please call your Customer Service Representative.

We are all very excited about becoming Campus Partners. To learn more about what went on behind the scenes as we made the transition to Campus Partners, please see this month’s “Inside AMS Servicing” feature on Pat Shepherd, our Director of Human Resources.

Introducing: Student Trust

Campus Partners, by virtue of its shared ownership, has a new and exciting relationship with Student Trust, Inc. based in Rockville, Maryland. Student Trust provides today’s college and university students and graduates with premier products and services that support their financial obligations to achieve higher education. The company was founded in 2001 by a management team with over 80 years of combined student loan operations, sales and marketing experience.

Student Trust’s current product offerings include a federal student loan consolidation program that organizations private label and offer to their respective constituents. The consolidation loan product allows recent college graduates to roll up their multiple federal student loans into a single fixed rate loan and lower their payments by extending the repayment term. With today’s interest rates at historically low levels, the average consolidation borrower can lock in a fixed interest rate under 4% with Student Trust. The affinity program is targeted primarily at college alumni organizations and professional trade associations (i.e. lawyers, doctors, etc). Student Trust provides a complete turnkey operation on behalf of the association or alumni group, including a private labeled Web site, product literature, direct mailings to membership lists, call center services, loan financing, origination, and life-of-loan servicing.

Student Trust also offers a student loan consolidation product directly to consumers. Using direct mail and Web based campaigns, Student Trust offers, through its Web site www.ConsolidateYourLoans.com and its 24 x 7 call center, the same fixed rate, no-cost consolidation loan it offers to its affinity customers. Working with its various business partners, Student Trust provides consumers an aggressively priced consolidation loan that is simple to apply for and originate. Complete online application processing is provided along with a full service call center to support questions and paper applications.

A primary strategy of Student Trust is to bring together the best solution providers in the industry in a virtual business partnership, thereby providing best-of-breed products and customer services to colleges and universities, and directly to the student consumer. Following this strategy, the Student Trust has established the following business partnerships.

• AES is a subsidiary of the Pennsylvania Higher Education Assistance Agency (PHEAA), provides all call center, customer service, origination and loan servicing in support of Student Trust’s consolidation loan program.

• PNC Bank is the Company’s primary lender partner for consolidation loans. Since 1965, PNC Bank has been an active lender in the student loan market having provided over one million students with access to higher education financing. They are ranked in the top ten of lenders in the federal student loan program.

• Brazos Group is the fifth largest holder of federal student loans with loan assets in excess of $5 billion, and provides lender and secondary market services for Student Trust.

• PHEAA provides guarantee services for all loans originated under the Student Trust programs.

• Mattis Direct Marketing Inc. is a full service marketing support company. It provides new business strategies, brand building, product development, lead generation, customer retention and loyalty based programs. Mattis has supported numerous financial institutions in marketing activities including Sallie Mae in a national campaign for PLUS and Fleet Bank for credit cards.

Next month: The value of federal student loan consolidation in today’s low interest rate environment. Stayed tuned for more information about the new partnership between Student Trust and Campus Partners.

COHEAO Announces: House Republicans Propose Changes to Perkins Loan Program in HEA Reauthorization

An article published by COHEAO (Coalition of Higher Education Assistance Organizations), provides the following update on the HEA Reauthorization: “House Committee on Education and the Workforce Chairman John Boehner (R-OH) and Subcommittee on 21st Century Competitiveness Chairman Howard “Buck” McKeon (R-CA) introduced the “College Access & Opportunity Act,” H.R. 4283, on Wednesday, May 6th. The introduction of the bill ended months of speculation about what the Republican leadership would propose on key issues such as borrowing limits, origination fees, and loan consolidations. Speculation about whether a bill will be passed this year remains unchecked.”

A summary of the Perkins-related provisions of this bill is included as an attachment in this Update. You also may view the full text of the 203-page bill at
http://edworkforce.house.gov/heafinal5-5-04.pdf.

Attachment:

Summary of Perkins-Related Provisions of Reauthorization Bill

top of page ^

Perkins Service Cancellation Reimbursement and Payment Letter

The Department of Education (ED) has published a Question & Answer guide in Dear Colleague Letter CB-04-07 to aid in understanding the Payment Letter and Reimbursement Worksheet related to reimbursement to participating schools for service cancellations in the Perkins Loan Program. You may view this Q & A at
http://www.ifap.ed.gov/dpcletters/CB0407.html.

top of page ^

Reminder - Federal Poverty Guidelines for 2004

The Department of Health and Human Services (HHS) has published the Poverty Guidelines for 2004. The poverty levels listed below must be used in determining a borrower’s eligibility for economic hardship under regulation 674.34(e)(3), which measures the borrower’s income against the poverty line for a family of two.

Continental US and District of Columbia $12,490
Alaska $15,610
Hawaii $14,360

You may view the Poverty Guidelines for this and previous years on the HHS Web site at http://aspe.hhs.gov/poverty/poverty.shtml.

top of page ^

Title IV Funds Not Allowed to Escheat to Third Parties


ED indicated at its Spring Conference Session 10, that schools are prohibited from allowing Title IV funds to revert (or “escheat”) to third party, state, or institutional coffers. This prohibition is particularly relevant to schools when attempting to deliver Title IV credit balances and post-withdrawal disbursements to eligible students and parent PLUS borrowers. To view this presentation along with other Spring Conference presentations, go to www.ifap.ed.gov and click on Conference Presentations.

top of page ^

Deduction for Interest on Qualified Education Loans

The Treasury Department and the Internal Revenue Service has issued final regulations relating to the deduction for interest paid on qualified education loans.

“The final regulations issued today clarify which amounts qualify for the student loan interest deduction to ensure that students obtain the maximum deduction permitted under the law,” said Acting Assistant Secretary for Tax Policy Greg Jenner. “These regulations also provide guidance to help lenders meet their reporting obligations.” The effective date for these new regulations is May 7, 2004. You may view this article at http://www.treas.gov/press/releases/js1512.htm.

top of page ^

Updated Sources of Assistance for Schools Posted


ED posted the on-line Sources of Assistance for Schools, a single source of communication references that includes a comprehensive listing of FSA references (e.g., phone numbers, e-mail addresses, Web site addresses, etc.). To view this updated reference tool, go to http://www.fsadownload.ed.gov/SASTechRef.htm.

top of page ^

Want to Make Loan Assignments? We Can Help!


ED is paying close attention to defaulted loans, and is encouraging schools to assign these loans to ED. If schools do not respond by increasing their assignment activity, it is possible that ED will make loan assignments of defaulted loans mandatory.

You may submit a defaulted loan to ED for assignment if you have been unable to collect on the loan despite complying with diligence procedures and collection efforts, and litigation if required. The assigned account should have a $25 or greater outstanding balance - including principal, interest, collection costs, and late charges. If the borrower has multiple loans, the sum total can be used to meet the $25 minimum requirement.

We can assist you in the assignment process with our Assignment Package. This package includes the following:

• Pre-Assignment Report
• Assignment Check List
• Federal Perkins Assignment Form (formerly known as ED553) and   Manifest
• Assignment Transmittal
• History Print

To learn more, or to get started with the assignment process, contact your Customer Service Representative today.

top of page ^

Third-Party Compliance Audit in Process

Our third-party compliance audit, conducted by PricewaterhouseCoopers, LLP, for the fiscal year ending June 30, 2004 is currently underway. We expect their audit report to be published and available to you in early August. Please stay tuned to the Update for more information. Audit request forms for 2004 are currently available by clicking here.

top of page ^

Get Ready for Year-End Processing

June 30 will be here before you know it so put these dates on your calendar if you have not already done so. Deadlines for receipt of the following requests in our office are:

June 10 Requests for duplicate reports
June 11 Requests for special mailing of year-end reports
June 25 Requests for Change/Adjustment memos
July 2 Year-end post begins

Remember to use eXpressReports to access your fiscal year-end reports immediately following year-end processing.

top of page ^

Student Loans 101 Scheduled for July 8-9

Students Loans 101, our workshop for less experienced student loan administrators or those new to Campus Partners, will be offered for the final time this year on July 8-9, 2004 in Winston-Salem. Last March we had a full class so be sure to register early.

If you are interested in registering for the workshop, please contact Debra Pitts at 1-800-458-4492, ext. 2272 or via e-mail at dpitts@campuspartners.com. Forms and information about the workshop are available online by clicking here.

top of page ^

Teleconference Schedule

Thinking about participating in one of our teleconferences, but don’t know how to sign up? Just e-mail Debra Pitts at dpitts@campuspartners.com at least three days before the scheduled teleconference to register. She will notify you of the telephone number that you need to call in a return e-mail. It’s free and is well worth your time to learn moreabout different aspects of servicing student loans.

Offering this training gives us the opportunity to reach student loan administrators who cannot attend a Student Loans 101 or 202 session in Winston-Salem. Each teleconference is geared towards understanding a particular topic and is an opportunity to gain new insights, ask questions of Campus Partners staff, and hear helpful suggestions from other schools.

We look forward to continuing this service for all our customers.

2004 Teleconference Training Schedule

Regional Meetings

Join us at one of our Regional Meetings this year held at campuses across the country. You’ll have a chance to find out the latest information from your School Relations Coordinator and share insights with other student loan administrators in your area. If you are interested in hosting a meeting on your campus, please contact your School Relations Coordinator.

top of page ^

Conference Schedule

Representatives from Campus Partners will attend the conference listed below.

The Colorado Association of Administrators of Student Loan AccountsReceiveable (CAASLAR) Conference will be held on April 22-23 at the AntlersAdam’s Mark Colorado Springs. Please visit www.caaslar.org for more information.

Second Alliance Collections is presenting the Cruisin’ to Collections Conference on July 9-12 . More information is available at http://www.secondalliance.com/index.htm.

The University of Washington is hosting the PAC-10 Conference on July 18-21 at the Shilo Inn, Ocean Shores, WA.  The number for the hotel is 360-289-4600.

top of page ^

Cutoff Dates

Cutoff dates for June and July 2004 are presented below:

top of page ^