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.