efg technologies happy new year! - campus partners 3 12-01 efg technologies update continued on...

INSIDE THIS ISSUE:

uEducation Department UpdateuSAIG Enrollment FormsuInterest ReportinguAMS Consolidation LoanuPAYO ScreenuCohort Default RateuADD CampaignuAnnual StatementsuEnhanced ServicinguHELP Desk

INSIDE EFG Technologies:Pattie Mastin, School Relations Coordinator

Visit our Web site at www.efg.net/efgtechnologiesfor up-to-the minute publications, forms, and information.

New Promissory Notes RevisedThe Department of Education (ED) has revised the newly issued promissory notes forthe Federal Perkins Loan and National Direct Student Loan (NDSL) programs. Linksto the corrected notes are provided in Dear Partner Letter CB-01-15 and implemen-tation instructions are offered in an earlier letter, Dear Partner Letter CB-01-13.

Colleges and universities may begin using the revised notes immediately. However, theprior promissory notes may be used until May 1, 2002. You can download the newpromissory note at http://www.ifap.ed.gov/dpcletters/CB0115.html ).

ED Reduces Schools’ 2002-2003 Paper FAFSA Orders by 33%ED has announced that institutions will only receive two-thirds of the number ofFAFSAs they ordered for 2002-03. ED has instituted this reduction because manypaper FAFSAs were not used last year due to increased use of electronic filingmethods. If you request the same number of FAFSAs this year as you did last year,your order will automatically be reduced 33%. If you order fewer FAFSAs, you willreceive the amount you indicate. If you need more FAFSAs than you are allotted, youcan request the number you need via ED’s web ordering system.

HOLIDAY SCHEDULE:January 1,New Year’s Day

January 21,Martin Luther King Jr’sBirthday

(System IIISM will beavailable duringnormally scheduledhours.)

EDUCATIONDEPARTMENT

UPDATE

EFG Technologies

Winston-Salem, NC Happy New Year! December 31, 2001

u2002 Training ScheduleuRegional MeetinguConferencesuHolidays for 2002uCutoff DatesuFun FactuNew Product UpdateuSystem III ConnectionuHow to Change Report Options

12-01 EFG Technologies Update Continued on next page

E-mail Directory

Debra Adams, Call Center Specialist.: [email protected] Anderson, Conversion Supervisor: [email protected] Balsamo, Production Control Supervisor: [email protected] Bass, Customer Service Assoc. Director: [email protected] Bealle, Product Development Director: [email protected] Beam, Training and Development Coord.: [email protected] Bondurant, Private Loan Servicing Mgr: [email protected] Burton, Market Development Director: [email protected] Cameron, School Relations Coord.: [email protected] Christian, Human Resources Mgr.: [email protected] Cofer, Customer Service Rep.: [email protected] Cornelius, Default Prevention Svr.: [email protected] Cortez-Gann, Private Loan Servicing Svr.: [email protected] Cox, Customer Service Rep.: [email protected] Duncan, Customer Service Rep.: [email protected] Gaither, Customer Service Rep. Team Leader: [email protected] Grooms, Private Loan Servicing Svr.: [email protected] Elliott, Info. Technology Infrastructure Dir.: [email protected]

LaShonda Fields, School Relations Coord.: [email protected] Fulp, Facilities/Distribution Manager: [email protected] Hall, Payment Processing Svr.: [email protected] Joyce, Accounts Rec. Supervisor: [email protected] Koniuto, Contracts and Proposals Mgr.: [email protected] Little, Customer Service Assoc. Director: [email protected] Mastin, School Relations Coord.: [email protected] Morgan, Call Center Supervisor: [email protected] Parker, Customer Support Director: [email protected] Riddle,Transaction Processing Mgr.: [email protected] Smejkal, Operations Research Manager: [email protected] Smith, Information Technologies Mgr: [email protected] Spencer, Account Executive: [email protected] Thompson, Customer Service Rep.: [email protected] Williams, Documentation Supervisor: [email protected] Williams, Audit and Compliance Dir.: [email protected] Wilson, School Relations Coord.: [email protected] Wright, Information Technology Dir.: [email protected] Wide Web Site: http://www.efg.net/efgtechnologies

According to ED, Student Guide and Funding Your Education orders placed bypostsecondary schools will be fulfilled at 100%, but schools are encouraged to use theelectronic form of the document.

2002-03 EDE Technical Reference Now PostedThe 2002-2003 EDE Technical Reference was posted to the www.ifap.ed.gov. Website in November. This document provides record layouts for schools or other organi-zations that need to design software systems to interface with ED’s software in orderto process applications and package student financial aid awards. The document isposted in both PDF and Word formats and is available at the following address:http://sfadownload.ed.gov/DLTechRef0203.htm.

Availability of CPS Test System for 2002-2003The CPS Test System for 2002-2003 is available until January 31, 2002. It is de-signed to allow institutions to test electronic application and/or correction data fromtheir systems with the CPS, outside the normal CPS production environment.

Fed.Up Initiative Issues ChartThe House Committee on Education and the Workforce has published a Fed.UpInitiative Regulatory Relief Proposals chart in draft form on its Web site. The chartis available in PDF and HTML formats. The draft chart helps provide a review of themany issues that were submitted as part of the Fed.Up project. This is still a work inprogress and will be updated periodically. The link to view this document is: http://edworkforce.house.gov/issues/107th/education/fedup/regschart.htm.

First Annual Spring Update ConferenceED will hold its new Spring Update Conference March 6 - 8, 2002, in Baltimore,MD. The Spring Conference is being expanded beyond Direct Loan issues to includesessions on common origination and disbursement, verification, quality assurance, andpolicy and program updates, among other topics. The Spring Update Conference willfeature a related meeting, the Software Developers Conference, which is designed asa technical track to include institution Chief Information Officers.

EDUCATIONDEPARTMENTUPDATE(Continued)

12-01 EFG Technologies Update Continued on other side

SAIG Enrollment Form ClarificationBecause of inquiries that we have received, it appears that some customers are gettingconflicting information from Title IV WAN Customer Service about how to re-submitenrollment documents to meet the requirements of the Privacy Act.

Because we do not have all the necessary client specific information for customersthat received notification that they must re-enroll, affected customers will need to fillout the portion of the enrollment document that applies to them. If you are one ofthese customers, you should fill out your portion of the form and forward it to us forhandling of the remaining enrollment requirements.

The form is available from the IFAP site at www.ifap.gov. Follow these steps tolocate the document:

• Click under action letters in the “Most Frequently Visited Publications”section.

• Select “All 2001-2002 Action Letters.”• Select “Action Letter #5 (Gen 1-01).”• Click on the link at the bottom of that action letter (Student Aid Internet

Gateway (SAIG) Enrollment Form) and the form will be downloaded to yourworkstation for printing. Note: The revision date on this form is September2000.

Complete the following items ONLY:

• On page 11, item 13A - This section should be completed providing theschool name, OPE-ID, business address, phone and fax numbers.

• On page 13, item 13B - The Effective Date of Action of “batch Perkins Loandata” (the third box down on the page) should be 12/01/01.

• On page 19, the School President/CEO/Chancellor must sign in the boxprovided.

The entire package should be forwarded to EFG Technologies for completion. Wewill fill out the rest of the form and sign it before mailing it back to Title IV WAN. Ifyou have any questions, please contact your Customer Service Representative.

Form 1098-Es to be Mailed in JanuaryIf you contract with us for TRA student loan interest reporting, we will mail Form1098-E to borrowers who may be eligible for a federal income tax deduction forinterest paid in 2001. Forms will be mailed by mid-January to borrowers who paideligible interest of $5.00 or more during the 2001 tax year. Borrowers may accesstheir interest paid information from our Interactive Voice Response (IVR) Systemeffective January 1.

For your borrowers who paid interest totaling $600 or more, we will report informa-tion to the IRS in February, as required by regulations.

Included with this issue of Update is a sample of Form 1098-E. If you have alreadysigned a contract for this service, you do not need to complete any other forms.

SAIGENROLLMENT

FORMS

INTERESTREPORTING


INTERESTREPORTING(Continued)

Ø ATTACHMENT: Sample Form 1098-E

A FAQs document for borrowers is located on our Web site at http://www.efg.net/efgtechnologies/pdf_download/TRA_Bulletins/FAQ%202000%20TRA.pdf. TheFAQs address some standard questions and answers regarding the student loaninterest deduction.

When you access DocumentDirect, you will see the category NPSLS0971F-TRACustomer Report. Click on this button to review your report. If you are not set up toreview your reports through the Internet, please contact your School RelationsCoordinator.

Consolidation Loan Available Thru AMSOur affiliate company, Academic Management Services (AMS) offers a Consolida-tion Loan for borrowers who wish to consolidate their federal educational loans. Formany borrowers, consolidating student loan obligations into a single loan is an excel-lent way to manage their debt.

If you receive Exit Interview packages from EFG Technologies, we are includinginformational brochures about the AMS Consolidation Loan program. We encourageyou to use this material during your exit counseling sessions. You may also be inter-ested in a direct counseling program. AMS loan counselors will speak with yourborrowers to determine if loan consolidation is a good option for them. If you wouldlike to find out more about how EFG Technologies and AMS can assist your borrow-ers with loan consolidation, please contact Betsy Burton, Marketing Director, at 1-800-458-4492, ext. 2009; or by e-mail to [email protected].

Introducing the New Payoff ScreenThe next time you need to accurately project a payoff balance for a student, you willnot have to perform any manual calculations thanks to the PAYO screen. This newscreen calculates a borrower’s payoff amount by projecting the current balance,including interest amounts due, up to 90 days into the future. Only a few loans incertain statuses will still require manual calculations to project payoff amounts. Formore information and tips for users, please see this quarter’s System III Connection,included with this issue of the Update.

Cohort Default Rate Added to ReportsYou can now find your cohort default rate on the following reports: Loans to Reviewfor Cohort Default Rate, FISCOP Report, and Status Summary Report. Thisinformation will be complete for institutions with greater than or less than 30 borrow-ers who entered repayment in the current cohort year. The calculation of your cohortdefault rate has been changed to include default repayment flags of “IE” (Ineligible tore-instate Title IV eligibility ) in the total number of borrowers with loans in default.

COHORT DEFAULTRATE

AMSCONSOLIDATIONLOAN

PAYO SCREEN

The mission of EFG Technologies is to provide high quality, accurate, and effective pro-cessing services in response to the needs of our customers. We strive to consistentlyprovide superior service and innovative solutions at a competitive price.


Campaign Underway to Encourage ADDIn December we initiated a campaign to encourage borrowers to use our AutomaticDirect Draft (ADD) program to make their student loan payment(s). ADD simplifiesthe payment process with a routine draft of the borrower’s bank account. Our cam-paign includes inserting ADD applications and special messages with borrower billingstatements and providing specialized ADD information via our Interactive VoiceResponse System and our Web site. We plan to continue the ADD campaign throughthe first Quarter of 2002. We encourage you to speak with your borrowers aboutADD as well. Visit our Web site at www.efg.net/efgtechnologies for more information.

Annual Statements to be Mailed in FebruaryBy the first week in February we will send Annual Statements to your borrowers whoare making payments by Automatic Direct Draft (ADD) or Coupon Books. Thesestatements provide borrowers with up-to-date information on the status and balance oftheir loan(s).

Announcing a New Product - Enhanced Service!EFG Technologies is pleased to introduce Enhanced Service – a new level in loanservicing. Enhanced Service goes beyond the standard full service benefits such asforms processing and borrower correspondence. With Enhanced Service, EFGTechnologies removes more of the administrative burden from you and your staff bystoring your borrowers’ original file folder documents and providing additional pro-cessing services. Please refer to our New Product Update included with this publica-tion for more information.

Ø Attachment: New Product Update--Enhanced Service

HELP Desk Transfers to Customer Service DepartmentWe are pleased to announce that the EFG Technologies HELP Desk is now part of ourCustomer Service Department, reporting directly to Associate Director Daisy Bass.The HELP Desk team provides customers with technical assistance related to our on-line products and services such as DataLink WebConnect, DocumentDirect on-linereports, and DataDirect FTP. You may continue to contact the HELP Desk directly,via our toll-free telephone number 1-800-458-4492, ext. 2111. Representatives areavailable to assist you.

2002 Training Programs AnnouncedThe School Relations Team is developing new training programs for 2002. Our goal isto create interesting and challenging programs that allow schools to use a combinationof federal regulations knowledge, System III know-how and DocumentDirect skills intheir day-to-day work. The training sessions will initially be limited to groups of 10people. We anticipate our first training program will be at the end of March. Moreinformation will be provided in future issues of the Update.

Several of our customers have asked for DocumentDirect training. DocumentDirectis a Web- based service that allows customers to download and print reports on aweekly and monthly basis. Instead of waiting for your reports to be sent through theU.S. Postal Service, you can access them directly from your computer. In addition toaccessing your report information quickly, you can retrieve the last four years of

ENHANCEDSERVICING

ANNUALSTATEMENTS

ADD CAMPAIGN

2002 TRAININGSCHEDULE

HELP DESK


reports as well.

Since many customers have not yet mastered DocumentDirect, we will be providingregional training sessions. Because people tend to learn better hands-on, we will beusing our customers’ computer labs to access DocumentDirect. How does thiswork? Colleges and Universities have computer labs on campus. During an off-peaktime (such as during spring break), we will “rent” the computer lab and invite a fewlocal schools to come over for a half-day training session. We will use the Internet toprovide DocumentDirect training, and our customers will receive a solid understand-ing of how DocumentDirect works. We will limit the first few sessions to 10 people.We will be testing this new concept in January at a school in upstate New York, andwill report back on our success.

We plan to host five Regional Meetings in 2002. Regional Meetings are a great wayto share information with your colleagues and learn some new tricks of the trade.Meetings are scheduled for the following locations, with dates to be announced soon:

Columbia, SCBoston, MARichmond, VASeattle, WAFlorida

If you are interested in holding one of these meetings at your institution, please contactyour school relations coordinator.

Regional Luncheon Held in TexasBetsy Burton, Director of Marketing, and Pattie Mastin, School Relations Coordina-tor for the Southeastern Region, visited with several customers during the Arlington,Texas Regional Luncheon on December 5. A special thank you goes to Terry Spoonat the University of Texas-Arlingon for her assistance in making this event happen. Themeeting was informative for those who were in attendance.

Conferences ScheduledThe Coalition of Higher Education Assistance Organization’s (COHEAO) AnnualMeeting and Student Loan Seminar will be held on January 27 to 31, 2002 at theRitz-Carlton Hotel in Arlington, VA. The event will include discussions on the BushAdministration’s agenda for Reauthorization, emerging technologies to aid in thedelivery of student financial aid (especially the Perkins Loan Program), and loanbenefits for teachers. EFG Technologies has consistently taken an active role withinCOHEAO and recommends that all our clients investigate the benefits availablethrough this organization. For more information and to register, visit the COHEAOWeb site at www.coheao.com.

EFG Technologies staff also will attend the 11th Annual EARMA CollectionsConference, which will be held on April 9-10, 2002 at the National ConferenceCenter in East Windsor, New Jersey. For more information, call 723-235-9184.

REGIONALMEETING

CONFERENCES

2002 TRAININGSCHEDULE(Continued)

CUTOFF DATES

Transaction January 2002 February 2002

Last day to receivecollection payments

01/28/02 02/25/02

Last day to receiveregular payments

01/29/02 02/26/02

Last day for onlinepayments

02/01/02 03/01/02

Date final post begins 02/01/02 03/01/02

Report date used forfinal post

01/31/02 02/28/02

Last day depositscreated for deposit tobank account

01/31/02 02/28/02

Holiday Schedule for 2002EFG Technologies will be closed on the following holidays in 2002.

New Year’s Day Tuesday, January 1Martin Luther King Jr’s Birthday Monday, January 21President’s Day Monday, February 18Memorial Day Monday, May 27Independence Day Thursday, July 4Labor Day Monday, September 2Columbus Day Monday, October 14Veteran’s Day Monday, November 11Thanksgiving Day Thursday, November 28Day After Thanksgiving Friday, November 29Christmas Day Wednesday, December 25

Cutoff DatesThe cutoff dates for January and February 2002 are listed in the table below. A tablelisting cutoff dates for 2002 follows.

EFG Technologies UPDATE, a newsletter for our customers, is published monthly by EFG Technologies in Winston-Salem, NC.Editor: Carolyn Williams and Legislative and Regulatory Editor: Jim Williams. Contributors this issue: Beth Bealle, BetsyBurton, Sharon Cameron, LaShonda Fields, Tammy Gupton, Lisa Koniuto, Pattie Mastin, Charles Parker, Debra Pitts, SherylShoaf, Sharon Swaim, and Kim Wilson. NOTE: This publication contains material related to the interpretation of federal rulesand regulations of the Title IV Program of the Higher Education Act. While EFG Technologies believes the informationcontained herein is accurate and factual, this publication has not been reviewed or approved by the US Department of Educa-tion. Please consult the Department of Education or your legal counsel with questions or concerns. Please send any corre-spondence to Documentation Department, EFG Technologies, PO Box 3176, Winston-Salem, NC 27102-3176 or directly toCarolyn Williams, Editor, at [email protected].

HOLIDAYS 2002


Month Last day toreceivecollectionpayments

Last Day toreceiveregularpayments

Last day foron-linepayments

Date finalpost begins

Report dateused forfinal post

Last daydepositscreated fordeposit tobankaccount

January2002 01/28/02 01/29/02 02/01/02 02/01/02 01/31/02 01/31/02

February2002

02/25/02 02/26/02 03/01/02 03/01/02 02/28/02 02/28/02

March2002 03/26/02 03/27/02 03/29/02 03/29/02 03/31/02 03/29/02

April 2002 04/23/02 04/24/02 04/26/02 04/26/02 04/30/02 04/26/02

May 2002 05/28/02 05/29/02 05/31/02 05/31/02 05/31/02 05/31/02

June 2002 06/25/02 06/26/02 06/28/02 06/28/02 06/30/02 06/28/02

July 2002 07/26/02 07/29/02 08/02/02 08/02/02 07/31/02 07/31/02

August2002 08/27/02 08/28/02 08/30/02 08/30/02 08/31/02 08/30/02

September2002

09/24/02 09/25/02 09/27/02 09/27/02 09/30/02 09/27/02

October2002 10/28/02 10/29/02 11/01/02 11/01/02 10/31/02 10/31/02

November2002 11/22/02 11/25/02 11/27/02 11/29/02 11/30/02 11/27/02

December2002 12/23/02 12/24/02 12/27/02 12/27/02 12/31/02 12/27/02

January2003 1/28/03 1/29/03 01/31/03 01/31/03 01/31/03 01/31/03

FUN FACT

Did you know that EFG Technologiesproduces over 60 different reports? That’s alot to choose from. You can receive thesereports via the Internet, CD-ROM, and paper!

Visit www.efg.net/efgtechnologies to find out how to win afree gift from our Marketing Department.

CUTOFFDATES(Continued)

FUN FACT

12-01 EFG Technologies Update


RECIPIENT’S/LENDER’S name, address, and telephone number OMB No. 1545-1576

2001

Form 1098-E

StudentLoan Interest

Statement

RECIPIENT’S Federal identification no.

043405187BORROWER’S social security number

1234567891 Student loan interest received

$125.00Account number (optional)

BORROWER’S name, Street address (including apt. no.), City, State, and ZIP code

Joe Borrower123 Main StreetAnytown, NC 12345

LenderSample University00001-000000001-01

2 Box 1 includes loan origination fees and/or

capitalized interest (if checked) . . . .

Copy BFor Borrower

This is important taxinformation and is beingfurnished to the InternalRevenue Service. If you

are required to file areturn, a negligence

penalty or other sanctionmay be imposed on you if

the IRS determines thatan underpayment of tax

results because youoverstated a deduction for

student loan interest.

Form 1098-E (Keep for your records.) Department of the Treasury – Internal Revenue Service

Instructions for Borrower

A person (including a financial institution, agovernmental unit, and an educationalinstitution) that is engaged in a trade orbusiness and, in the course of such trade orbusiness, received interest of $600 or moreduring the year on a student loan used solelyto pay for qualified higher education expensesmust furnish this statement to you.

You may be able to deduct student loaninterest on your income tax return if theinterest payments were made during the first60 months the interest payments wererequired. However, the interest reported on

this statement may be different from theinterest you may deduct. See the “StudentLoan Interest Deduction Worksheet” in yourForm 1040 or 1040A instructions. Also, seePub. 970, Tax Benefits for Higher Education,for more information.

Box 1. Shows the interest received by thelender during the year on this student loan.

Box 2. Shows if loan origination fees and/orcapitalized interest are included in box 1. Ifbox 2 is not checked, you may contact yourlender about this information.

EFG TechnologiesP.O. Box 3176Winston-Salem, NC 27102Phone: 1-800-334-8609www.efg.net/efgtechnologies

CORRECTED (if checked)

(Front)

(Back)

ATTACHMENT

12-01 EFG Technologies

A publication of EFG Technologies December 2001

Introducing…Enhanced Service – a new level in loan servicing

Are you a one-person shop or a Perkins Loan Manager with limited resources?Let EFG Technologies provide you with the Enhanced Service you need!

What is Enhanced Service?

Enhanced Service is a level of service above andbeyond that of a standard full service agreement. Inaddition to the benefits of Full Service that EFG Tech-nologies provides, such as borrower and customerservice and forms processing, EFG is responsible formanaging your portfolio from the time a new loan isadded to the system, forward. In addition to the stan-dard Full Service, Enhanced Service provides thefollowing:

• Storing your borrowers’ original file folders includ-ing the promissory notes, deferment/cancellationforms, borrower correspondence, and otherdocumentation. All transactions processed on aborrower account will be noted in the permanenton-line history of the account. Documents thatrequire permanent retention will be filmed and thenfiled in the borrower files retained in the EFG vault.

• Counseling borrowers who are having problemsmaking payments on their accounts. This mayinclude special payments arrangements for past dueborrowers, counseling borrowers on forbearance,reviewing loan consolidation options and evencreating loan rehabilitation programs.

• Managing the NSLDS Load Error Reports byupdating all fields for which we have the necessaryinformation.

New Product Update Enhanced Service

• Automatic first placement with your designated collec-tion agencies at a specified number of days past due.After the loan has been placed with a collectionagency for one year with no activity, EFG staff willreview the account, and when appropriate, place thedelinquent account with a second agency.

• Assigning loans with the Department of Education ifsecond placement is unsuccessful. This includes 100%completion of computer generated ED553 packagesas well as historical and entitlement information (Note:there is an extra fee for this service).

• Reviewing borrower credit balances and issuing refundchecks after 60 days.

• Returning Paid-In-Full promissory notes after the loanappears on the Paid-Out/Credit Balance/Write-OffReport.

• Skip tracing borrower addresses when an address iscoded “BAD.”

• Processing credit verification requests when receivedin our office.

• Reviewing loan consolidation verifications and com-pleting the necessary paperwork.

12-01 EFG Technologies

Here’s what our current Enhanced Servicecustomers are saying:

Visit us at www.efg.net/efgtechnologies.

“We have appreciated the responsivenessof EFG to our needs regarding Perkinsloan collections. As a very small institu-tion, the Enhanced Service option pro-vides WSCC with access to a level ofexpertise that we cannot afford to trainstaff for and keep them up-to-date sincewe are not a large institution.

EFG’s involvement gives us this expertiseand the continuity when staff changes atthe College. And I should not forget tomention the space created by giving upall those files!!!!”

Linda HendyChief Financial OfficerWestern States Chiropractic CollegePortland, OR

Enhanced Service removes much of theadministrative burden from you and yourstaff. For more information, contact yourSchool Relations Coordinator or call1-800-458-4492, ext. 2272.

“Converting to EFG in November of1999 was one of the best decisionsBentley College ever made. Paying aservicer to perform all our Perkins andinstitutional loan servicing has proven tobe very beneficial. It has given me theopportunity to take on other responsibili-ties within the College and not spend mytime performing such tasks as mailingdue diligence and paid in full letters.EFG has the trained staff and technol-ogy to handle loan servicing the way itshould be done. In addition to providingexcellent customer service to the Collegethey also provide great service to ourborrowers. I firmly believe that ‘En-hanced Service’ is the best way to go forPerkins loan servicing, especially in lightof how fast the federal regulationschange.”

AnnMarie PennachioAssistant Director of StudentFinancial ServicesBentley CollegeWalthram, MA

NEW PAYO SCREEN

SM

A publication by EFG Technologies December 2001

Introducing the New Payoff Projection Screen (PAYO)We are pleased to introduce the new Payoff Projection Screen (PAYO) whichprovides projected payoff amounts for borrowers who want to make a final payment ontheir loan or loans. Using PAYO eliminates the need to perform any manual calcula-tions to provide the borrower with an accurate payoff amount projected into the future.

To use this new screen, first access a borrower’s account information. Then enterPAYO in the Option field. Press Enter. The following screen appears:

PAYOFF PROJECTION OPTION

ACCOUNT 123 456 789 01 SSN 123 45 6789 EFG TECHNOLOGIESPROGRAM 00001 LOAN 123 45 6789 01 STUDENT IDNAME SHOAF, SHERYL

CURRENT POST DATE 10 03 01PROJECTED DATE OF PAYOFF 10 18 01 SPECIAL MESSAGE AREAPROJECTED DAYS TO PAYOFF 15

LOAN INFORMATION INT RATE CURRENT PROJECTED PROJECTEDEXL PROG LOAN/SEQ STAT END DATE PAYOFF INTEREST PAYOFF _ 00001 123 45 6789 01 40 00 00 00 6,275.50 12.58 6,288.08

TOTAL 6,288.08

PAYO Screen Fields and Functions

1. Borrower Information. System III automatically fills these fields when aborrower’s loan(s) information is accessed.A. ACCOUNT - Borrower’s account number.B . SSN - Borrower’s social security number.C. PROGRAM - Program number. If the screen is accessed at the account

level, then System III does not populate the program number.D. LOAN - Loan number. If the screen is accessed at the account level, then

System III will not populate the loan number.E. NAME - Borrower’s name.

PAYO FIELDS ANDFUNCTIONS

12-01 System IIISM Connection Continued on next page

PAYO FIELDS ANDFUNCTIONS(Continued)

Page 2

2. Information Required to Calculate a Payoff.A. CURRENT POST DATE. System III uses the current post date.B. PROJECTED DATE OF PAYOFF. System III automatically sets this date

15 days ahead. However, you may key over this date and enter a date that is upto 90 days in the future. When the enter key is pressed, System III re-calcu-lates the payoff amount based on the new information.

C. PROJECTED DAYS TO PAYOFF. System III automatically sets the numberof days to 15, but you may key over the number of days with any numberbetween 1 and 90. After the enter key is pressed, System III re-calculates thepayoff based on the new information.

3. Loan Information.A. EXL – This is the exclude field. If you want to exclude a loan from the payoff

calculation, place an “X” next to that loan. System III will automatically ex-clude a loan that does not qualify for the payoff calculation (such as a loan in aclosed status).

B. PROG LOAN/SEQ – This field displays the program loan and sequencenumbers for all of the loans in the account consolidation number as indicated.

C. STAT – This field indicates the status of all loans listed. If the loan has beenplaced with a collection agency, a “C” appears beside the status code.

D. INT RATE END DATE – This field is used for loans with a variable interestrate that changes on a specific schedule. This field indicates the date that thecurrent rate is effective through.

E. CURRENT PAYOFF – This field displays the payoff amount as of the currentpost date.

F. PROJECTED INTEREST – This field displays the amount of interest thatSystem III has calculated through the projected date of payoff.

G. PROJECTED PAYOFF – This field displays the CURRENT PAYOFFamount plus the PROJECTED INTEREST.

H. TOTAL – This field displays the total of the PROJECTED PAYOFF amountscalculated for consolidated accounts.

Helpful Hints Regarding the PAYO Screen

1. When the PAYO screen is accessed, the cursor automatically appears at thePROJECTED DATE OF PAYOFF field. Either tab or use your mouse to changethe cursor position.

2. The following special messages indicate conditions that may affect the payoffcalculation. Please take note of any of the following messages displayed in theSPECIAL MESSAGE AREA.

A. E0001 PAYOFF DATE MUST BE WITHIN 90 DAYS – If this messageappears, the projected payoff date is more than 90 days into the future. SystemIII does not calculate a payoff more than 90 days ahead.

B. DATE EXCEEDS INT RATE END DATE(S) – This message indicates thecurrent interest rate on the loan is scheduled to change before the projectedpayoff date. Please advise the borrower of this change. This is relevant forinstitutional loan types.

C. LOAN(S) IN GRACE – PROJ INT ZERO – This message displays whenthe loan is in a grace status, and System III did not calculate projected interest.

HELPFUL HINTSWHEN USING PAYO

12-01 System IIISM Connection Continued on other side

HELPFUL HINTSWHEN USING PAYO

(Continued)

Page 3

In this situation, check the grace expiration date. If the grace expiration date isbefore the projected payoff date, then you must manually calculate the projectedinterest for the loan or loans in question . This message applies to loans that donot accrue interest during the grace period.

D. LOAN(S) ENROLLED – PROJ INT ZERO – This message appears whenthe loan is currently in an enrolled status, and System III did not calculate pro-jected interest. In this case, check the loan to ensure that no interest will accruebefore the projected payoff date. If some interest is scheduled to accrue beforethe projected payoff date, you must manually calculate the projected interest.This message applies to loans that do not accrue interest during the enrollmentperiod.

E. LOAN(S) IN 5X STATUS EXCLUDED – When a loan is currently in adeferred status, and System III did not calculate a projected payoff, this messageappears. In this case, you must review the loan and calculate the payoffamount.

F. LOAN(S) IN 6X STATUS EXCLUDED – This message appears when theloan is currently in a postponed or to-be-cancelled status, and System III did notcalculate a projected payoff. You must manually review the loan and calculatethe payoff in this instance.

G. POSSIBLE UNASSESSED FEES – This message means that the projectedpayoff date exceeds 30 days, and fees possibly could be accessed on the loan.The PAYO screen does not project fees.

H. LOAN(S) IN COLLECTION EXCLUDED – If this message appears, thenone (or all of the loans) has been placed with an external collection agency, orthe loan has been placed with an internal agency and the borrower-paid collec-tion cost percentage is greater than .00000. In these situations, System III doesnot calculate a payoff amount and automatically codes these loans as “ex-cluded.”

I. LOAN(S) IN 8X/9X STATUS EXCLUDED – This message displays if one orall of the loans is in a closed or to-be-closed status. System III does not calcu-late a payoff for these loans and automatically codes them as being excluded.Excluded statuses are listed below.• Status 80 – To be paid out.• Status 81 – Loans referred to the Department of Education (NDSL loans

only).• Status 82 – Assigned to the Department of Education (NDSL loans only).• Status 83 – Loans in Litigation.• Status 85 – Loan was written off.• Status 90 – Loan is paid out.• Status 91 – Loan cancelled due to disability.• Status 92 – Loan cancelled due to bankruptcy.• Status 93 – Loan Accepted by the Department of Education (NDSL loans

only).• Status 94 – Loan was automatically written off.• Status 95 – Loan was manually written off.• Status 96 – Loan was cancelled due to death.

System IIISM Connection is a quarterly publication withnews for EFG Technologies’ DataLink system users.

System III Availability

The graph below displays the percentage of time that System III has been available, asscheduled, for customers. System III is available Monday - Friday from 6:00 a.m. -10:00 p.m. EST and Saturday (excluding month-end cutoff weekends) from 7:00 a.m. -3:00 p.m. EST.

SYSTEM IIIAVAILABILITY

Questions?Call your Customer Service Representative.

EFG Technologies HelpDesk may be reached at (800) 458-4492, ext.2111 or [email protected].

Visit our web site at www.efg.net/efgtechnologies/.

12-01 System IIISM Connection

Page 4

3. When changing the PROJECTED DATE OF PAYOFF or the PROJECTEDDAYS TO PAYOFF fields, remember to enter a value in only one of the fields, orSystem III will give you an error message and not re-calculate the PROJECTEDPAYOFF.

4. The PAYO screen does not calculate future events such as fee assessment orinterest capitalization transactions.

HELPFUL HINTSWHEN USING PAYO(Continued)

2001 System III Availability

99.2 98.7 99.4 98.9100 99.6 99.8 99.6 99.1 99.5 99.7

50

55

60

65

70

75

80

85

90

95

100

Jan-01 Feb-01 Mar-01 Apr-01 May-01 Jun-01 Jul-01 Aug-01 Sep-01 Oct-01 Nov-01 Dec-01

% of Availability 99.2 98.7 99.4 98.9 100 99.6 99.8 99.6 99.1 99.5 99.7

Jan-01 Feb-01 Mar-01 Apr-01 May-01 Jun-01 Jul-01 Aug-01 Sep-01 Oct-01 Nov-01 Dec-01

Continued on other side12-01 EFG Technologies Update

Change YourReporting Options

System III offers flexibility in report-ing options. A customer may chooseto reduce their paper reporting,change their sorting options, andadd optional reports.

WOULD YOU LIKE TO REDUCE THE AMOUNT OFPAPER IN YOUR OFFICE?

Here are some options:

All of your monthly reports can be accessed and/or printed usingDocumentDirect via the Internet on the Monday morning imme-diately following month-end processing. You can print only thereports you need.

Are you currently a DataLink customer? If you have access toour on-line system, you might want to eliminate your monthlyStudent Loan Journal (SLJ) and Transactions and Adjust-ments Journal (T & A). Your SLJ and T & A will be includedon the CD-ROM with your other reports in case you need it for your auditors. You can also access yourSLJ on DocumentDirect. Send your requests to reduce and/or eliminate paper reporting to your CustomerService Representative.

Most customers receive a large number of reports during the month of June. You may want to review yourJune month-end Control List of Reports. This report provides you with a list of the reports you are receiv-ing. If you find there are reports that you no longer need printed, you may indicate “DocumentDirect only”on the report and send it to your School Relations Coordinators. They will discuss your choices with you,and will eliminate printing of those reports for you.

If you have not registered yet for DocumentDirect, you can register at http://www.efg.net/efgtechnologies.Best of all there are no additional fees associated with DocumentDirect.


If you have any questions, please contact your Customer Service Representativeor School Relations Coordinator.

WOULD YOU LIKE TO CHANGE THE SORT-ING OPTIONS OF A REPORT?Many reports are available with loans sorted by either numerical order or by alphabeti-cal order. If you would like to change the way loans are sorted, please contact yourCustomer Service Representative.

WOULD YOU LIKE TO RECEIVE OPTIONALREPORTS?

EFG offers several optional reports:

Loans Without a Good AddressThis report is a cumulative listing of all loans without a goodaddress.

Cumulative Credit Balance ReportThis report is a cumulative listing of all loans with a creditbalance.

Credit Bureau ReportThis report lists all loans reported to the credit bureaus as ofthe current month end.

New Delinquents ReportThis report lists loans that became a pre-specified number of days past due during the reporting period.

Funds Advanced Year-To-Date ReportThis report lists all loans that have received advances during the current fiscal year.

To Order Additional Reports

1. Simply send a request to your Customer Service Representative.2. Please specify whether you want the report to output to Document Direct/CD-ROM only (no charge) or to paper.

Visit us at www.efg.net/efgtechnologies.

Pattie Mastin

Pattie Mastin, School Relations Coordinator (SRC)for the Southeast, and EFG Technologies seem to bemade for each other. Pattie describes herself as a people-person who loves to travel and likes working in a collegeenvironment. Her job as an SRC calls for her to haveextensive contact with customers, travel at least half thetime, and visit college campuses throughout the South-east. Given this situation, it is no wonder that Pattie lovesto go to work everyday. Pattie started at EFG Technologies on July 1, 2001,and immediately began learning the nuts and bolts of thejob. With the help of her more experienced colleagues,Kim Wilson and Sharon Cameron, and her manager,Betsy Burton, Pattie quickly gained the knowledge andconfidence she needed to put her show on the road. “Thisis a great company,” Pattie states with enthusiasm.“People here are very friendly and supportive. Everyonehere offers assistance when I need it.” Pattie may have required training in student loanservicing, but she is no stranger to college campuses.Pattie joined the company after working in student devel-opment at several colleges. She most recently worked atWake Forest University, which is about a mile from EFGTechnologies’ offices in Winston-Salem. As a student,Pattie attended SUNY-Oswego in upstate New York andearned her Master’s degree in counseling psychology atSt. Bonaventure University. As a former college employee, Pattie feels an instantbond with her customers. She knows what the ebb andflow of college life is like and wants to help make hercustomers’ jobs easier. She believes she can help byunderstanding their needs and by introducing new prod-ucts and services to them. For the past several months, Pattie has beenpromoting the Early Intervention Program (EIP) to hercustomers. When colleges contract for EIP, EFG loancounselors contact borrowers early in their delinquency toexplain options that can help them repay their loans.Pattie will also be talking to colleges soon about theEnhanced Service option, which EFG Technologies hasjust begun offering to all our customers. With EnhancedService, the customer can contract with EFG Technolo-gies to provide all servicing for the loan, including storingthe original loan documents in our secured vault. (Formore information about Enhanced Service, see our NewProduct Update in this month’s Update newsletter.)


InsideEFG Technologies

Pattie Mastin:

“This is a greatcompany,” Pattiestates withenthusiasm.“People here arevery friendly andsupportive. Every-one here offersassistance when Ineed it.”

Pattie hopes to soon be able to put faces with allthe customers she talks with on the phone. Naturallyan outgoing person, Pattie is driven to build relation-ships with her customers so they know they can counton her. She wants to see the big picture at everycollege in her territory so she can make meaningfulsuggestions. Getting to know her customers means travel, andtravel these days is uncertain. However, Pattie isunfazed by tightened travel security. To Pattie, one ofthe most attractive parts of her job is travel, and thatperspective has not changed. She is thrilled withhaving the chance to visit Savannah and Dallas for thefirst time recently and looks forward to her othercustomer visits. Not being afraid of flying may have some geneticroots, because one of her brothers is a member of theUS Air Force Thunderbirds. Pattie also has three othersiblings who live throughout the country. She isoriginally from Danville, New York, where her parentsstill live. In her spare time Pattie likes doing crafts andmaking projects for her family and friends around theholidays. Since her goal is to form relationships withall her customers, she may have to start her craftprojects a little early next year to accommodate all ofher customers.

Pattie MastinStill in College after all these Years