System and method for managing educational institution borrower debt

Abstract

A system is disclosed that makes it easy for educational institutions to contact and counsel student loan borrowers to promote successful loan repayment. The system is a web-based tool that automates borrower communication through telephone, letter and email campaigns, using loan information that is obtained through third-party loan servicers by the educational institution and then uploaded into the system. The self-service default prevention tool aggregates loan data form multiple sources in one place to perform borrower outreach, offers targeted communication campaigns to address borrowers in repayment, displays real-time estimated default rate trends, and provides on-demand reports. A dashboard is generated that provides a snapshot of the educational institution's entire portfolio, projected cohort default rates, trending analysis charts, important messages and a history of file imports.

Description

CROSS-REFERENCE TO RELATED APPLICATION[0001]The present application claim priority to and the benefit of U.S. Provisional Application No. 61 / 789,904, filed Mar. 15, 2013, entitled System and Method for Managing Educational Institution Borrower Debt.BACKGROUND[0002]Educational institutions must consistently monitor student loan data to determine how many of the school's borrowers who enter repayment on school loans during a fiscal year default prior to the end of the next two to three fiscal years. The cohort default rate (“CDR”) is what educational institutions use to define this statistic and it is based on the percentage of borrowers who are in default. Currently, the Department of Education (“DOE”) monitors the CDR by looking at the first two years of repayment. Recently, congress passed the Higher Education Opportunity Act (“HEOA”) to change this to a three-year CDR. As of fiscal year 2014, the DOE will only determine the CDR based on the percentage of borrowers who enter defaul...

AI Technical Summary

Benefits of technology

The present patent application claims priority to a provisional application filed in March 2013 and is about a system and method for managing educational institution borrower debt. The technical effect of the patent is to provide a system and method for monitoring and tracking the projected CDR (cohort default rate) of a school's student borrowers, keeping borrower data current, and creating campaigns specifically targeted to borrower groups at risk of defaulting or entering repayment. The system can also help schools keep track of which entities are servicing their student loans and provide assistance to prevent defaulting.

Problems solved by technology

In some instances, this could mean the loss of the educational institution's ability to make federal student loans available to students, which could have a major impact on the ongoing viability of the educational institution.

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