July 2009 FFEL: In the crosshairs during the “90-Day War” by Ben Brudnock Financial aid administrators are accustomed to keeping their eyes trained on what the federal government is considering in the way of student aid. From proposed regulations on eligibility, to new grant programs and FAFSA simplification efforts, staying afloat with the ebb and tide of congressional intent can sometimes feel like a full-time job in itself. This spring, the financial aid community’s focus on the “Hill” has intensified since President Obama proposed the outright elimination of the Federal Family Education Loan program as part of his fiscal year 2010 budget recommendations. While – historically speaking – the president’s “first pass” budget blueprint rarely resembles the finished product of Congress, this year’s first volley from the oval office has sent shock waves throughout higher education. In terms of both dollars (the Congressional Budget Office estimated $94 billion in “savings” over a 10-year period) and transitional requirements (more than 4,000 schools would need to fully convert their federal loan process to the Direct Loan program beginning July 1, 2010), the president’s proposal, if nothing else, assures that the business of delivering federally backed student loans has changed forever. Since the president unveiled his budget outline in early February, many in the financial aid community have asked “will this actually happen?” and “when will we know for sure?” Both are valid questions. The first requires a crystal ball, but the second is easier to discern. In terms of whether or not the president, with support from the Democratic Congress, will prevail in their efforts to eliminate FFEL, we can say this much for sure: “the 90-day war” has begun. Expect the months of June, July and August to be filled with proposals, counterproposals, speeches and media blitzes as both sides of the debate seek to discredit the other. Regardless of how the debate unfolds, one thing – and only one thing – is relatively clear at this point: in all likelihood, we will know the fate of the federal student loan program by October 1. That date marks the beginning of the new federal fiscal year, and Congress cannot adjourn for their fall recess (when 11th-hour campaigning occurs in their home districts) until the federal budget is actually enacted and the General Accounting Office begins oversight on the spending of funds (usually around October 11). Snapshot of the federal budget timeline February: The president releases a budget proposal by the first Monday of the month. Congressional committees in the House and Senate prepare their own budget proposals using the president’s request as a blueprint. March–April: The House and Senate complete their budget resolutions, including reconciliation directives and changes in budget process rules. Conferees from both chambers are tasked with crafting a single budget legislation that will ultimately be sent back to each floor for vote(s). May–August: Hearings are held, and appropriations committees set amounts for discretionary programs whose funding is set annually. Other committees perform work on reconciliation-required cuts. September–October: Congress completes the appropriations and reconciliation bill and sends it to the president for signature to become law. If the October 1 deadline is missed, Congress must pass a short-term spending bill to keep the federal government operating on an interim basis. In the current proposal, the president has moved Federal Pell Grants from the discretionary programs category to an entitlement budget line item, using estimated (and much-debated) savings from the elimination of FFEL to fund the mandatory spending requirement. College Fairs: A Rite of Spring This spring, account executives exhibited at college fairs throughout Citizens Bank’s footprint states. From Michigan to Massachusetts and several states in between, account executives were on hand at events hosted by the National Association for College Admissions Counseling to speak with students and families about the financial aid process, distribute educational materials and deliver presentations. Leslie Bembridge, account executive for Maine, Massachusetts and New Hampshire, delivered three “Financial Aid 101” workshops at events in Boston. Parents in attendance were very receptive to the information, and several families visited the Citizens Bank booth afterwards for educational tip sheets and to ask questions. Heather Vincent, account executive for Pennsylvania and New Jersey, exhibited at a twoday college fair at the New Jersey Convention and Exposition Center, attended by over 12,000 students and families. Account Executive Brian Maynard, who serves Connecticut, Rhode Island and Vermont schools, spoke with many parents and students who visited the Citizens Bank booth at the Providence college fair. Brian discussed the financial aid application process with several visitors, and was treated to many great reviews of Citizens Bank from current customers. continued on page 2 S chool P rofile continued from page 1 Baker College: Growth in the economic downturn Ambrose Price, account executive for New York, exhibited at five college fairs in Rochester and Buffalo. Ambrose reported that a record number of schools exhibited at the Buffalo location, and that both locations were well attended by students and parents. by Elizabeth Looney Citizens Bank is pleased with the great reception its account executives received from NACAC college fair attendees and organizers. We appreciate the opportunity to educate students and families on the financial aid process, and look forward to serving their college financing and banking needs. “We are seeing growth on all of our campuses,” said Robert Nelson, director of student loans at Baker College System Headquarters. New Position Kelly Morrissey of Fitchburg State College’s financial aid office was just named treasurer-elect of EASFAA. Congratulations, Kelly. Despite the economic downturn, Baker College is growing. True to its mission, Baker is providing quality education and training, enabling graduates to be successful in challenging and rewarding careers. It is the largest private, nonprofit college in Michigan, serving more than 38,000 students on 12 campuses and in four satellite locations. The secret to Baker’s success: anticipating the needs of its students and preparing them for the workforce of today. Even with 38,000 students and a tight labor market, Baker’s Career Services department has achieved–and maintains–a remarkable 98 percent+ employment rate for its graduates. In response to challenging placement conditions, Baker has provided the department with additional resources to support placement efforts. “We are a career college,” Nelson says. “Everything we do is (aimed at) getting our students career-ready in the shortest time possible.” This approach especially resonates with Baker’s students who have lost their jobs and are eager to return to the workforce with new skills and pursue a new career. “We are currently setting aside extra funding and scholarships to help displaced workers,” says Nelson, “and are proud that we are able to maintain low tuition increases.” Supporting a Champion Michigan Account Executive Elizabeth Looney volunteered with one of Citizens Financial Group’s 2009 Champions in Action this past spring: the Midnight Golf Program in Detroit (see the April issue of Education Finance News). Elizabeth and other volunteers distributed donated golf clubs, bags, golf balls, tees, gloves, hats and towels to more than 125 students who participate in the program. There were nine other CFG employees volunteering, in addition to program mentors who work with students on life skills and healthy decision-making. FAFSA Filings Jump in 2009 The number of Free Applications for Federal Student Aid filed during the first quarter of 2009 increased by more than one million over the same period in 2008, reports Student Lending Analytics in its April 13 blog post. This represents an overall increase of 20.8 percent. The number of FAFSAs filed by independent students rose too, suggesting that adults in 2009 are possibly seeking to expand their marketable skills in a highly competitive job market, according to SLA. www.baker.edu With an eye on education and employment trends, Baker College prepares students for The Kenneth C. Rice Memorial Clock Tower at Baker College’s Flint Campus. high-demand fields and industries. As more students seek careers relating to energy and environmental conservation, Baker College is proposing new areas of study that focus on Alternative Energy degrees. Already, its Auto Services tech program uses hybrid vehicles. Baker College’s plans for the future? “Continued growth,” says Nelson, “and maintaining our status as leaders in producing well-qualified graduates in high-demand fields.” on Direct Lending and Default Prevention “We are confident that the president’s goal of eliminating the FFEL program is a well-intended effort to streamline the student loan process at the lowest cost,” says Nelson. “However, the Direct Lending program does not have a very good track record for helping students avoid default, and the overall default rate of students who have Direct Loans is not published. “We make default prevention and financial literacy a high priority, and we have concerns about Direct Lending’s efforts in this area.” continued on page 4 2 st u dent spotlight What began as arts and crafts by Erin Zagaski There was no question that one day Neesha Haughton would excel in art. Fortunately, Neesha found support in her parents, the financial aid staff at SVA, and her professors, all of whom have made Neesha’s dream come true. With financial aid and work study assistance, she has thrived at SVA, currently holding a 3.58 GPA. She has participated in a fashion-based internship, “Design Cares,” with St. Jude’s Children Hospital to raise money for children with cancer, and her new goal is to become an editorial designer for a magazine. “I never thought of getting into any profession other than something that dealt with visual arts,” says Neesha, a senior at the School of Visual Arts in New York City. “Ever since I was young, my mother says that I loved to draw. I would sit in front of the television and draw whatever I saw. While my sister and others around me wanted to be doctors and lawyers, I wanted to be a painter. “Some people thought that was silly, but I knew I had passion and talent.” In elementary school, arts and crafts was her favorite activity. She loved to paint. As she grew older, Neesha’s talent became apparent. Neesha attended the High School of Art & Design in Manhattan and began pursuing graphic design. She frequented the Museum of Modern Art and art exhibitions, and even showcased one of her paintings in a museum for an Advanced Placement art class. “Seeing designers like Neville Brody, David Carson, Milton Glaser and Andy Warhol really piqued my interest in expressing myself more graphically,” she says. Student Snapshot Name: Neesha Haughton School: School of Visual Arts, New York Major: Graphic Design GPA: 3.58 As she considered college, it became clear to Neesha that SVA would best provide her with all the necessary tools to further her career aspirations. The challenge was financing it. Q &A with Work Study: Financial aid office, “working alongside people who help give others an opportunity to receive a higher education.” M ichael In this issue, Michael responds to questions about the deficit and Direct Lending and direct-toconsumer loans. Q How will our national deficit be impacted if all FFEL schools are forced into the Direct Lending program? A Going to a 100 percent direct lending model will definitely add to the country’s already exploding national debt by approximately one trillion dollars over the next 10 years. As you know, the United States is currently running record budget deficits. As the national debt increases, so does the cost to service this debt. These factors are basically ignored by CBO in scoring the president’s proposal to eliminate FFEL in favor of 100 percent direct lending. A Direct to Consumer (DTC) loans, where borrowers can apply and get approved without school certification, has definitely been impacted by the deterioration of the credit market. However, more W here M c F arlane importantly, more lenders are now requiring school certification as a way to prevent losses from fraud as well as prevent over-borrowing. The Higher Education Opportunity Act passed last year requires all private loan borrowers certify their attendance and financial need based on information they receive from their school. Q Has the deterioration of the credit markets made Direct to Consumer loans a thing of the past? Michael McFarlane, national director of sales and marketing and senior vice president of Citizens Bank Neesha believes that with her education, she has the power to conquer any goal she sets for herself. “I know I will be the best at what I do because I have the passion for it,” she says, “and a great education to back it up.” A re T hey N ow ? NEW HAMPSHIRE PENNSYLVANIA Kristen Purrington, formerly assistant director of financial aid at Plymouth State University, has accepted the director of financial aid position at Great Lakes Community College in Laconia. Sarah Brunsell, formerly of Baptist Bible College, is working at Alvernia University as a student financial planning counselor. Francine Jackson is the director of finance at ITT Technical Institute, Harrisburg location. Evan Weiler has been hired as an assistant director of financial aid at Kutztown University. Prior to working at Kutztown, he worked for AES/ PHEAA. NEW YORK Fiona Approo has been appointed acting director of financial aid at the Pratt Institute. Daniel Barkowitz, formerly the director of student financial services at the Massachusetts Institute of Technology, is now the dean of financial aid/associate dean of student affairs at Columbia University. 3 tales from the continued from page 2 Boundaries of the home office Colleague Awards and Distinctions by Michael Jones Tales from the Road highlights the adventures of our Education Finance team members in their travels. This quarter, Michael Jones takes a look at the flip side of life on the road: the home office. Regional Sales Manager Sharon Murray was elected president of the Pennsylvania Lenders Association. Sharon looks forward to guiding the organization and establishing a forum to promote FFEL, the original charter of the PELA organization. Massachusetts Account Executive Jan Marie Combs was honored with MASFAA’s Volunteer of the Year award for her contributions to MASFAA during the 2008-09 academic year. Jan served on the MASFAA Conference Committee that organized the annual November conference and she also co-chaired MASFAA’s charity fundraiser supporting the Massachusetts Society for the Prevention of Cruelty to Children. In addition, Jan served on MASFAA’s Just the Facts Committee. Citizens Bank Launches TruFit Student Loan™ Citizens Bank recently launched the TruFit Student Loan, a schoolcertified private loan featuring three repayment options: immediate, interest-only and deferred. Available to both undergraduate and graduate students attending eligible institutions, the TruFit Student Loan has a variable pricing structure based on repayment type and presence of a qualified co-signer. Visit citizensbank. com/TruFitStudentLoan for details. road When I’m not on the road or meeting with school clients, I’m often catching up on administrative work such as following up with clients, filing expense reports, scheduling school visits and completing sales notes, all from my home office. One challenge of working from home is maintaining a healthy “work/life” balance. Over time, I have managed to find a good balance that allows me to be an effective account executive without neglecting my wife and kids, which is a very good thing. Like the saying goes: if mom is not happy, nobody is Michael Jones, account executive, Ohio happy. The key is setting boundaries for the home office for me, as well as for my kids (i.e., dad’s office is off limits). Account executives that have younger children face some not-so-typical challenges with work/life balance. First, I will introduce you to my oldest child, Ashley. Ashley is eight years of age. She’s a pretty good kid, but she thinks daddy’s office is her own personal art supply store. She doesn’t hesitate to sneak into my office and take supplies that she may need to complete her Picasso-like artwork. She will take copy paper (right from the printer), Scotch tape, pens, pencils, markers, staples and whatever else she may need to complete her masterpiece. Then, before I get a chance to get angry at her for taking things out of my office without asking, she hands me her project with a big smile on her face and says, “Look Daddy what I made for you! I hope you like it.” It gets me every time. Next is my 3-year old son, Christian. Now Christian doesn’t come in and sneak things out of daddy’s office to be creative like his sister. He just enjoys sneaking things out. It is not unusual for me to find office supplies and sometimes office equipment in his toy box. And of course, when I ask him why he took daddy’s calculator, he always gives me this very innocent look and says, “I not take it Daddy.” On one particular day, the kids were playing hide-and-seek in the house. They were playing upstairs, not making too much noise, so my wife and I allowed them to play so we could finish preparing dinner. Once dinner was ready, I called for both kids to come downstairs to eat. My daughter yelled back at me, “Come and find us, Dad!” Then my son yells, “Yeah, come find us Dad!” So I decided to play along with them. I walked upstairs, entered my daughter’s room, and found her in her usual location under the bed. Then I called out, “Christian, where are you?” I heard snickering coming from the next room. The home office. As I entered, I called out, “Christian, are you in here?” Christian suddenly jumped out from under my office desk, followed by a loud crashing sound. Somehow he managed to get tangled up in all the wires under my desk. When he jumped out, he pulled down my modem, router, and just about everything that was on top of my desk. Luckily, he did not get hurt. He looked up at me with his big brown eyes – still tangled up in wires – very embarrassed and obviously amazed at the mess he just created, and says to me, “Time to eat, daddy?” I couldn’t help but laugh. UPCOMING APPEARANCES Conferences Start End Location NASFAA TRIO Programs (COE) HESC Symposium 7/12/09 9/9/09 9/16/09 7/15/09 9/12/09 9/17/09 San Antonio, TX San Antonio, TX Saratoga Springs, NY 4 F inancial L iteracy 1 0 1 Citizens Bank honors National Financial Literacy Month Financial literacy is a top priority at Citizens Bank. Coinciding with National Financial Literacy Month, the Citizens Bank Foundation announced in April that it had provided more than $170,000 in grants to local organizations supporting financial literacy programs during the first quarter of 2009. “As a responsible financial institution committed to its customers and the communities in which it serves, we believe it is important to support financial literacy programs that educate people with the information needed to make sound financial decisions,” said President Robert E. Smyth, Citizens Bank, Massachusetts. “Knowledge is power. Being armed with even the most basic banking skills gives individuals the power to take control and successfully manage their personal finances.” National Financial Literacy Month, established in 2004 by the U.S. Senate, is designed to bring awareness to the importance of developing and maintaining healthy financial habits. As reported in Education Finance News last quarter, Citizens Bank has posted helpful financial tips on its Web site to educate students and parents about budgeting, default prevention, building and maintaining good credit, and other financial literacy topics. Information can be obtained at citizensbank.com/TipsForStudents. “Being armed with even the most basic banking skills gives individuals the power to take control and successfully manage their personal finances.” President Robert E. Smyth, Citizens Bank, Massachusetts C hampions in action Improving your community Citizens Bank is committed to serving the needs of its customers and clients as well as the communities in which they live. In 2002, we launched the Champions in Action® initiative to recognize the special contributions made by locally based nonprofit organizations. Since then, Citizens Bank and Charter One have provided more than 170 organizations with public relations support, media coverage, promotional assistance, volunteers, and financial support totaling over $4 million. We’re proud to announce the following Champions in Action for the third quarter of 2009. Connecticut Pennsylvania Philadelphia Mutual Housing Association of Southwestern Connecticut, Inc.’s comprehensive programs and services focus on affordable housing development, property management and resident services. MHA also supports and promotes sustainable homeownership through homebuyer education, down payment assistance, affordable realty services, and foreclosure counseling. MHA creates housing solutions by building and preserving housing units and assisting families to sustain themselves as homeowners. In 1982, women in North Philadelphia sought a better neighborhood environment for their children and formed the Norris Square Civic Association, dedicated to the revitalization of the neighborhood and the empowerment of its residents. In the past 20 years, the comprehensive work of NSCA has had a major impact in the community, including the development of 83 affordable rental units, 75 homeownership units and a bilingual childcare center. Massachusetts Abby’s House was established in 1976 as an emergency shelter for homeless and battered women and children. The agency has since focused on addressing the root cause of homelessness by providing educational and skill-building programs and services promoting independence and self-sufficiency. These include a service-enriched affordable housing program, emergency shelter, Women’s Center, financial literacy programs, crisis counseling, food services, community education and a thrift store. New Hampshire Laconia Area Community Land Trust empowers residents to stabilize and strengthen their families, maintain their homes and improve their life skills. For their most vulnerable clients, the organization combines transitional shelter with aggressive case management. Through its housing developments, it has invested more than $32 million in the community and has also supported more than 1,200 people who have participated in free financial literacy and first-time homebuyer seminars. Pittsburgh Since 1952, the Light of Life Rescue Mission has been helping the poor and homeless of the Greater Pittsburgh area obtain safe, affordable, decent housing. Its mission is to help the homeless transform their lives and enable them to overcome the grip of addiction, abuse, mental illness and poverty so that they can live at their highest degree of independence and obtain affordable housing. Each year, the mission’s team serves more than 1,000 men, women and children in need by providing housing, food and life-changing programs. Rhode Island Olneyville Housing Corporation has provided more than 100 families with a home, a beautiful neighborhood and connections to others working for a better Olneyville. The successful transformation of a long-abandoned area along the Woonasquatucket River into a park, playground, bike path and 51 units of OHC-developed affordable housing is a prime example of community development and community partnership at their best. 5 T he G reen S cene Earth Day Announcement: the Impact of Green$ense™ In celebration of Earth Day (April 22), Citizens Financial Group announced that its industry-first Green$ense incentive program has not only rewarded Citizens Bank customers with nearly $2 million to date for helping the environment, but, with greater than anticipated enrollment, is also on pace to double its anticipated environmental impact in 2010. impact on the environment. We are pleased to offer this first-of-itskind program to our customers, and proud of the impact it is having on our environment.” Enrollment in Green$ense is free for all Citizens Bank customers with a checking account, including the new free Student Checking. As an added perk, customers who enroll in the program will receive an industry-first Green$ense MasterCard® debit card made from recycled plastic. They can also calculate the individual effect they will have on the environment by reducing their paper-based transactions with a special online calculator. Customers will be enrolled automatically in online banking with free Bill Pay and receive paperless statements. Launched in October 2008, Green$ense rewards customers 10 cents for each electronic payment they make, up to $10 per month and $120 per year. Based on current enrollment, Green$ense will provide significant benefits to the environment in 2009 alone, according to Cooler, Inc., including: • More than 220,000 pounds of paper saved. Customers can begin the enrollment process online at citizensbank.com, by calling the bank’s 24-hour, live customer service line at 1-888-910-4100, or by visiting any Citizens Bank branch. • More than 1,300 trees preserved. • Nearly two million square feet of forest saved, or 42 acres. • More than one million gallons of waste water prevented. • More than 6,300 garbage bags not filled. “Green” Annual Report nets Bronze Award • More than 13 million pounds of CO2 equivalents avoided. The 2007 and 2008, CFG annual reports used Neenah’s Environment® paper, a 100-percent post-consumer fiber paper that saves trees, conserves energy and reduces solid and waterborne waste. Our 2007 Annual Report received the bronze award from Neenah Paper Inc.’s annual Text & Cover Competition for publications that are printed on Neenah papers. “We are committed to helping our Citizens Bank customers save more and earn more through innovative products and services that make a meaningful difference in their everyday lives,” said Theresa McLaughlin, Citizens’ chief marketing officer. “The benefits of this program show how small, everyday activities such as reducing paper-based transactions can have a tremendous colleag u e profile School Services Manager Lisa Flynn by Erin Zagaski In this Colleague Profile, we learn more about Lisa Flynn, the manager of Customer Service and School Services teams for the Education Finance Division. I love my job. Not like. Love. Lisa Flynn, the manager of the Education Finance Division’s Customer Service and School Services teams, delivers superior service to Citizens Bank’s school clients and borrowers. “I love helping a student or parent through the financial aid process,” she says. Lisa is a double threat, a veteran customer service manager with the ability to resolve the issues of Lisa Flynn, manager of Customer Service and School Services both borrowers and financial aid administrators. “Having had a lot of experience working at different financial aid offices, I understand the needs of a school,” she says, “and I enjoy helping a fellow financial aid colleague resolve an issue.” He handed her the Sunday New York Times Help Wanted section. Inside was an ad for a financial aid administrator at Katherine Gibbs College in Montclair. Although Lisa knew nothing about financial aid at the time, she got the job. And so began her 23-year career in financial aid and student lending. “Once I started working in the profession, I realized how much I was helping people get a college education, and how much I enjoyed what I was doing,” Lisa says. “I have been in the profession ever since.” Lisa earned her master’s degree in Higher Education Administration from Northeastern University after moving to New England in 1989. Upon graduating, she accepted a director of financial aid position at Johnson State College in Vermont and from there went to Becker College in Worcester, Massachusetts, where she remained for eight years prior to joining Citizens Financial Group in 2001. With more than 23 years of industry experience, Lisa Flynn is an asset to the Education Finance department and a valued resource to its customers and clients. A dangerous affinity Lisa is an outspoken Yankee fan living among the Red Sox faithful. Her first baseball game was Yankees vs. Red Sox at Yankee Stadium in 1972. “My love for the Yankees was cemented at that early age, and I have always enjoyed that rivalry. Despite residing in Red Sox Nation, I will never change my loyalties.” It all began in New Jersey. Lisa graduated with a degree in Business Administration from Montclair State College (now Montclair State University) in 1986. She recalls sitting at her parent’s kitchen table that summer when her father told her it was time to find a “real job.” 6 T R avels with ed Conferences, clients and bears – oh my Ed made the most of his Green$ense enrollment this quarter, using his debit card to book travel to national conferences, college fairs and client schools. Below are some highlights and photos. Self-portrait at the Northeast Pennsylvania College Fair. Ed joins Debt Management Officer Dexter Armistead and Assistant Director of Financial Aid Pamela West at Cheyney University’s Salute to Seniors event. Ed charms the staff of the Case Western financial aid office: (from left) Accounting Clerks Kelly Kirkpatrick and Kathy Vanleer, and Manager of Student Finance and Loans Kristie Lillibridge. Renee Fluker (center), founder of Detroit’s Midnight Golf Program, and program mentors take some tips from Ed on their short game. “Have you seen my coffee, Heather?” asks Sales Manager Sharon Murray (right) during the 2009 EASFAA conference. Ed picnics with a distant cousin at the National Zoo in Washington, D.C. On his way to EASFAA, Ed unbuckles his safety belt, reclines his seat, and enjoys the latest Britney Spears release. Marketing Vice President Heather Sutcliffe (left) and Account Executive Erin Zagaski compliment Ed on his new Citizens Bank muscle T-shirt. Ed celebrates Associate Director of Financial Aid Melissa Stephen’s birthday at Western Connecticut State University. Miss University of the District of Columbia flirts with Ed at the Citizens Bank tradeshow booth. 7 EDUCATION FINANCE TEAM National Director of Sales and Marketing: Michael McFarlane Department Administrator: Kelly Blair Citizens Bank 725 Canton Street Norwood, MA 02062 PRSrT STD US POSTAGE PAID PERMIT #712 providence, ri Northeast Sales Team Sales Manager: Donna Shelby Account Executives: Leslie Bembridge Jan Marie Combs Brian Maynard Ambrose Price Erin Zagaski Mid-Atlantic Sales Team Sales Manager: Sharon Murray Account Executives: Ben Brudnock Heather Vincent Midwest Sales Team (Marketing as Charter One) Sales Manager: Derrick Williams Account Executives: Shelly Johnson Michael Jones Elizabeth Looney L egendary Marketing & Communications Director: Heather Sutcliffe Managers: Kristen Bolsover Steven B. Young S ervice Helping Borrowers, Past and Present by Lisa Flynn Our Customer Service and School Services teams are committed to providing Citizens Bank borrowers and schools with superior service, as evidenced in this story about a would-be home buyer in desperate need of assistance. School Services Team Manager: Lisa Flynn Specialists: Alicia Peterson Kevin Swaluk In April, Education Finance Specialist Alicia Peterson received a phone call from a former medical student who was trying to buy a house and had discovered a delinquent student loan on her credit report. The borrower was previously unaware of the outstanding loan, taken out during the 2001-02 school year. She wanted to review its status in our system to resolve the issue and pursue her home purchase. Thanks to our contributors Citizens Bank Education Finance News would like to thank these folks for their contributions to this issue: Kelly Blair, Kristen Bolsover, Ben Brudnock, Jan Marie Combs, Lisa Flynn, Neesha Haughton, Michael Jones, Elizabeth Looney, Michael McFarlane, Sharon Murray, Robert Nelson, Alicia Peterson, Heather Sutcliffe, Erin Zagaski, and the entire Education Finance team at Citizens Bank. This issue of Education Finance News was edited by Steven B. Young. She had already contacted the servicer, who in turn directed her to the guarantor. The guarantor directed her to RBS Citizens N.A., since its records indicated RBS Citizens, N.A. was the owner of the loan. By this point, the borrower was anxious and had already placed three phone calls. She had been unable to ascertain the status of her loan, despite her best attempts. The borrower faxed Alicia a copy of her credit report to review. Alicia contacted the servicer, and was told that RBS Citizens N.A. was not the owner of the loan, and therefore couldn’t discuss the loan status with her. RBS Citizens, N.A.’s involvement in the issue could have stopped right there. However, understanding the borrower’s frustration and wanting to resolve her issue, Alicia enlisted the help of Education Finance Vendor Manager Roxanne Sanchez and me. We researched the loan with the servicer and the guarantor. Together we determined: • RBS Citizens, N.A. had sold the loan in 2002. • which company had purchased the loan in 2002 . • that the purchaser had since been acquired by another company. 1-800-708-6684 citizensbank.com/edu Information contained in this newsletter was accurate at the time of printing, July 2009. If you would like additional copies, please feel free to contact us at 1-800-708-6684. Please share or recycle this newsletter after reading. EFNL110071009 Although RBS Citizens N.A. hadn’t owned the loan for seven years, the Citizens Bank team wanted to make sure the borrower was not referred to yet another company and that she received a definitive answer to her question. Alicia contacted the current owner of the loan and asked a representative to contact the borrower directly to assist her. Alicia then contacted the borrower, communicated all her findings, and told her to expect a call from the current owner to resolve the situation. The borrower was relieved to finally know who owned her loan, and with whom she could follow up. She appreciated immensely how Alicia went out of her way to resolve the issue.