Funding Crisis Update – Capitol Hill Visits

Representatives from Campus Partners will attend the 2005 COHEAO Annual Conference beginning January 30. As part of the Annual Conference, COHEAO will sponsor a breakfast on Capitol Hill. Several members of Congress and their staff have been invited to attend. This gives the conference attendees an opportunity to share how important the Federal Perkins Loan Program is in ensuring that all students have the opportunity to attend college. Each year after the breakfast, many of the attendees visit the offices of their Representatives and Senators. Campus Partners has already made appointments with representatives to discuss how destructive the zeroing out of the Federal Contribution is. If you would like to become a member of COHEAO and join in the fight to save the Federal Perkins program, go to www.coheao.org and register to become a member.

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Campus Partners Assists in Servicing the Nurse Faculty Loan Program

The Department of Health and Human Services, Health Resources and Services Administration (HRSA) authorized the Nurse Faculty Loan Program (NFLP) under the Nurse Reinvestment Act of 2002. Campus Partners has been working very closely with HHS and several of our customers to understand the unique parameters of this program and develop procedures and system processes in order to service this loan program. In 2005, $4.7 million will be available for qualified students. The deadline to apply for funds is April 25, 2005, and the maximum loan limit per student is $30,000 for an academic year. Customers interested in applying for funds for this program should go to http://www.hrsa.gov/grants/preview/individuals.htm#nflp.

Schools of nursing may enter into an agreement with HHS and establish a Nurse Faculty Loan Program to make loans to students enrolled full time in an eligible advanced degree program in nursing. Loan recipients must agree to complete the education program and may cancel up to 85% of the NFLP loan while serving as full-time nurse faculty at a school of nursing after their graduation.

The loan program has an interest rate of 3%, beginning three months following graduation. Borrowers must be employed as a full time nurse faculty member at a school of nursing for a consecutive four-year period. The loan will bear the 3% interest rate during the four-year period and the remaining six years of repayment. However, if the borrower fails to complete their course of study or establish full-time employment as a nurse faculty member, the loan will bear interest at the prevailing market rate. Also, if their employment period is not consecutive, the loan will immediately begin repayment and interest will accrue at the prevailing market rate.

Campus Partners publishes many of the forms (including the promissory note) for the program on our Web sites. Customers may view the forms here, and borrowers should go to www.mycampusloan.com. If you have questions or need additional information, feel free to contact Sharon Cameron, our Audit and Compliance Specialist. You may also visit http://bhpr.hrsa.gov/nursing. The NFLP contact person at HHS is Denise Thompson, who can be reached at (301) 443-1399.

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FACT Act Ramifications

The Fair and Accurate Credit Transactions (FACT) Act was signed into law by President Bush last year. One of the major provisions, a free annual credit report for consumers, became effective on December 1, 2004. Consumers in Western states can order a free credit report beginning December 1, 2004. Free reports will be phased in over the next nine months. The final phase, mandating a free credit report to residents of the Eastern States and the U.S. Territories, will be implemented on September 1, 2005. Consumers can order the free copy of their credit report at www.annualcreditreport.com. For implementation dates in all areas, go to http://www.ftc.gov and select “Information on Free Credit Reports.”

Another requirement of the FACT Act requires furnishers of credit information to provide “clear and conspicuous notice” in writing to their customers regarding the reporting of negative information. Although submission of negative information has been included in our standard past due notices, Campus Partners has enhanced our 45-day past due notice to ensure that your borrowers understand the consequences of late payments. If you have not contracted with us to report your loans to the three major credit bureaus, contact your Customer Service Representative for additional information. Federal regulations require that you or your servicer report your Federal Perkins loans to the credit bureau when the loan is disbursed.

 

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Revision to Fiscal Operations Report For 2004-2005, FISAP

The Department of Education is seeking comments by March 7, 2005 on the Fiscal Operations Report for 2004-2005 and Application to Participate for 2006-2007 (FISAP) and Reallocation Form E40-4P. The application data collected by the FISAP will be used to compute the amount of funds needed by each school for the 2006-2007 award year. The Fiscal Operations Report data will be used to assess program effectiveness and account for funds expended during the 2003-2004 award year as part of the school funding process. The Reallocation form is part of the FISAP on the Web and will be used by schools in the summer to return unexpended funds for 2003-2004 and request supplemental FWS funds for 2004-2005. For viewing details on changes and copies of the forms, go to http://edicsweb.ed.gov/browse/downldatt.cfm?pkg_serial_num=2658.

 

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Annual Contacts and 1098-E Reminder

As we published in last month’s Update, we are in the process of communicating information about interest paid amounts in 2004 to your borrowers. We began providing this information through our borrower Web site and via our toll free IVR during the first week in January. Interest paid amounts will also be reported on borrower statements generated in January, February, March, and April. Borrowers who use AutoDraft or Coupon Book billing were sent an Annual Statement indicating interest paid in 2004.

Borrowers who paid more than $600 in interest during 2004 to a single institution received Federal Tax Form 1098-E. Per IRS requirements, borrowers who paid interest greater than $600 will be reported to the IRS by February month end. You can obtain interest paid information for your borrowers using either System 3i, WebConnect, eXpressReports, or your monthly Masterfile.

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myReports-A Product You Can Call Your Own

myReports, our reports on demand product, is now available to all customers. An important addition to our product line, myReports is the perfect solution for customers who need to create customized reports at a specific time. Drawing on our experience and customer feedback, we developed a suite of standard reports available through the Public Library tab, that can be created within seconds. For customers who need to truly customize their reports on an as needed basis, we have created special field and parameter selection tools accessed through the Ad Hoc Report tab. Using this tool, customers can quickly choose sort options and filters to produce the reports that they need. Reports can be stored in the My Personal Library area or scheduled to run on a reoccurring basis.

Best of all, the product is easy to use, supported by user documentation and Campus Partners staff, and free of charge. This month’s “How To” provides directions for getting started using myReports, and a manual is available on-line. If you already have an ID and password for our online systems, just download a myReports Authorization Form from our Web site and mail it back to us. If you need an ID and password, download a System 3i Authorization form along with the myReports form and return both to us. For more information about the product or to obtain the link to the manual, please contact your Customer Service Representative.

 

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eXpressReports Enhanced

In response to your suggestions, we have further enhanced eXpressReports to make it even easier to use. We have added a simple application to print batch reports as well as adding TRA reports and customer billing invoices to the site. Simple directions for printing batch reports are available as an attachment to this issue of the newsletter. You will not want to miss this opportunity to learn how to make eXpressReports work more efficiently for you.

             Attachment: Batch Printing Directions for eXpressReports

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DocumentDirect to be Retired

As previously announced, access to DocumentDirect will end soon. Although we originally planned to curtail access last year, we wanted to wait until our remaining DocumentDirect customers felt comfortable with the transition. The retirement will take place during the first quarter. Almost all our customers now use eXpressReports, our new report tool, which is very easy to use. With the launch of myReports, customers have an additional report tool.

If you already have a DocumentDirect ID and password, you can get started using eXpressReports today. Just click on the eXpressReports icon on the home page of campuspartners.com, and you are ready to go. A link to eXpressReports documentation also is available on the eXpressReports log in page. If you have questions about eXpressReports, please contact your Customer Service

Representative.

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E-Bill Use Continues to Grow

Since E-Bill was introduced last summer, more and more borrowers are signing up for the electronic bill presentment product. When coupled with E-Pay, E-Bill is an especially powerful tool for ensuring borrower repayment. We will be promoting E-Bill on our mycampusloan. com Web site soon, and can provide promotional materials for you to distribute to your students, at your request.

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Masterfile Enhancement

If you currently receive a Masterfile, please note that a new data field will be added effective January month end. The Cohort Year Indicator will be added to the end of the Masterfile in the space that was previously reserved for filler. The valid codes for the Cohort Year Indicator field are C = Current Cohort Year, P = Projected Cohort Year, and N = Not Current or Projected Cohort Year.Please contact your Customer Service Representative if you need a new masterfile layout.

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Data Center Move in March

In March, Campus Partners will move its data center operations from Health Axis in Dallas, Texas to an Infocrossing data center in Norcross, Georgia. We are making the transition to enhance the management of our mainframe system. Infocrossing, a major IT outsourcing company, offers a state of the art data center, high speed, high performance connections, expert operations support on a 24/7 basis, and a custom approach to mainframe management.

We are planning for a smooth transition with minimal impact to you and your borrowers. In order to faciliate the move, our Systems will be unavailable during the weekends of March 18 and March 25. If you are interested in learning more about Infocrossing, please visit their Web site at www.infocrossing.com.

 

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Campus Partners - 40 and Loving It

Campus Partners is turning one—going on 40 this month. We are celebrating our first anniversary because JPT, Partners LLC purchased our company on January 26, 2004. We are celebrating our 40TH anniversary because our company first began servicing student loans in 1965. Building on our strengths, our managing partners, Mike Carey, Paul Carey, and Tom Green, were careful to preserve our company’s rich tradition of premier customer service and leadership in the industry while incorporating their new ideas and energy. You have already seen the results of this fusion of the old with the new--a renewed commitment to listen to your needs and develop new products to help you perform your job more efficiently and effectively. As our company enters our fifth decade, we are well prepared to provide you with the tools you need, the customer service you expect, and the benefit of our accumulated knowledge of the student loan industry.

We salute the customers who have been with us since the beginning. On July 23, 1965, Belmont Abbey College, Bennett College, Catawba College, Elon University, High Point University, Mars Hill College, Pfeiffer University, and Salem College signed contracts with us to service their student loans. Meredith College signed on in August, and Lenoir Rhyne College signed a contract in November. Because we were the first company in the country to service student loans, those early customers were truly visionary in selecting what we would now call an outsourced solution. Throughout the year, we will list other customers who will celebrate anniversaries of 35 or more years with us during 2005. Stayed tune to the Update for further details of our anniversary celebrations in 2005.

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More Long-Term Customers

Speaking of anniversaries, we are celebrating our partnership with quite a few long -term customers this quarter. Campus Partners salutes customers reaching long-term anniversaries with us during January, February, and March. Special recognition goes to Arcadia University, Community College of Philadelphia, County College of Morris, Fairview General Hospital School of Nursing, Lynn University, Montreat College, Ocean County College, Philander Smith College, St. Bonaventure University, and Talledega College, which have been our customers of 35 years. We also want to thank Daytona Beach Community College, Franklin and Marshall College, Miami Valley Hospital School of Nursing, and Universidad Central de Bayamon for allowing us to service their loans for the past 30 years.

Names of all customers attaining 10, 15, 20, 25, 30, and 35-year anniversaries with us during this quarter are attached. Customers reaching anniversaries with us during the second quarter of 2005 will be listed in the April Update.

       Attachment: Long-Term Customer Anniversaries

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Holiday Schedule for 2005

Campus Partners will observe the following holidays for the remainder of 2005. Our on-line systems will be available during normally scheduled hours.

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