Loan Servicing and Collections Process Redesign

Problem: A student loan servicer was having a problem with ineffective collections and claims filing of guaranteed student loans, which had resulted in several million dollars in loan losses. 

Solution: We helped the client reduce and control ongoing losses by refocusing the client’s efforts, designing more effective processes, and implementing a continual monitoring, measurement, and improvement program.  We:

  • Re-focused the organization’s attention on preventing delinquencies as a way of decreasing the number of claims and helped them understand the financial benefits of preventative action.
  • Designed more efficient and effective collections and claims processes that achieved the desired result.
  • Developed procedural documentation to ensure consistent execution throughout the organization.
  • Developed and instituted an ongoing operational risk management methodology including risk indicators, a quality control program, and management reports.

 

Note: Actual client names have been removed due to confidentiality issues.