Press Release
Clearinghouse Reduces Fee By 22% for Guarantors That Participate in TERP
'Total Enrollment Reporting' Automates Reporting on Student Loan
Borrowers' Enrollment Status
HERNDON, VA, June 16, 2004 - The
National Student Clearinghouse today announced that, effective July 1, 2004,
it is reducing the fee it charges guarantors by 22% if they also participate
in its Total Enrollment Reporting Process (TERP). All of the nation's
guarantee agencies belong to the Clearinghouse, which provides them with
reports on the enrollment and deferment status of financial aid recipients.
Guarantors pay a monthly fee based on the number of their borrowers who
are in attendance at participating Clearinghouse colleges and universities.
Currently, all guarantors pay 4.5¢ per student record match. Beginning July
1, TERP guarantors will pay the reduced rate of 3.5¢ per student record
match, resulting in a 22% savings. Participation in TERP is free.
TERP centralizes enrollment reporting, creating a single and reliable
source of enrollment data for loan guarantors and servicers. Participants
designate the Clearinghouse as their sole agent for all enrollment reporting
activities, including collecting enrollment information from NSLDS, the
Department of Education's national student aid database, and distributing
enrollment information to applicable lenders and servicers. Conflicting and
redundant data are eliminated, making loan processing simpler and more
accurate.
The Illinois Student Assistance Commission (ISAC) was the first guaranty
agency to participate in TERP. "TERP has proven to be a win-win
solution for ISAC and the lenders and servicers with whom we work,"
said Larry Matejka, Executive Director of ISAC, "It has eliminated
duplicate records and data conflicts from the enrollment reports that we
provide, resulting in a more efficient process all around and, ultimately,
better service for schools and borrowers. The time- and cost-saving benefits
of TERP are numerous; the reduction in fees is just the icing on the cake. I
encourage other guarantors to take advantage of TERP."
"When the guarantee agencies helped establish the Clearinghouse,
they charged us with becoming the nation's single point of contact for the
collection and distribution of all enrollment data," said Clearinghouse
Chairman Nancy J. Wiederspan, "Today, with the support of the FFEL
community, more than 2,800 colleges and universities provide us with data on
91% of the nation's enrollment. By participating in TERP, guarantors can
help the Clearinghouse secure the remaining 9%, allowing us to fulfill our
original mission of collecting and distributing 100% of all enrollment data.
For more information on TERP, visit www.studentclearinghouse.org/gls/terp.htm.
The list of guarantors that participate in the Clearinghouse is available at
www.studentclearinghouse.org/gls/guarantors.htm.
About The National Student Clearinghouse
The National Student Clearinghouse is the largest enrollment and degree
verification service in the US. A non-profit organization established by the
higher education community in 1993, the Clearinghouse serves as a central
repository and single point of contact for the collection and timely
exchange of accurate, comprehensive enrollment, degree and certificate
records on behalf of participating institutions.
More than 2,800 colleges, representing 91% of the nation's enrollment,
participate in the Clearinghouse. Student loan providers, employers, student
credit issuers, student health insurance providers, the federal government
and others access the Clearinghouse's registry over 100 million times
annually to conduct electronic student record verifications.
For more information, visit www.studentclearinghouse.org.
National Student Clearinghouse Contact:
Kathleen Dugan
Marketing Director
703-742-4208
dugan@studentclearinghouse.org
