RI Student Loan Authority

Transcription

1 RI Student Lan Authrity Executive Summary f Strategic Plan Apprved by RISLA Bard f Directrs Octber 17, 2014 Missin Statement: Cnsistent with the authrity granted by the General Assembly f the State f Rhde Island, it is the missin f the Rhde Island Student Lan Authrity t prvide a system f financial aid and cunseling t help make pst secndary educatin mre accessible and affrdable fr Rhde Island state residents and students attending schls based in Rhde Island. Just prviding lans is nt fulfilling RISLA s missin statement r even its enabling legislatin: The purpse f this chapter is t authrize a system f financial assistance, cnsisting f grants, lans, and ther aids, fr qualified inhabitants f the state t enable them t btain a pstsecndary educatin by attending public r private educatinal institutins bth within and withut the state. T fulfill ur missin RISLA must fcus n student success. RISLA will cntinue t prvide and enhance the fllwing intercnnected and cmplementary services all f which are fcused n helping students succeed. Career explratin Cllege lan debt cunseling t prevent ver brrwing Cllege selectin Cllege Applicatin Financial aid Schlarship searches Online calculatr fr career salaries and suggested maximum debt levels Safe, fixed rate lans Exit cunseling at clleges helping graduates understand repayment ptins, budgeting, credit, etc. Default preventin Refinancing f educatin lans pst graduatin

2 Lng Term Initiatives Cntinue t ffer traditinal RISLA brrwers lw cst financing ptins fr higher educatin Respnd t changing student demgraphics Design prgrams that are apprpriate t the anticipated changes in higher educatin Develp a faster and mre flexible lan applicatin and disbursement prcess Research additinal nline resurces fr the Cllege Planning web site. Cllege Planning Center: Shrt Term Objectives Research additinal resurces that can prvide early career explratin and aptitude insight t high schl and cllege students. Develp strategic relatinships thrugh jint ventures r ther types f agency/rganizatinal agreements t help enhance RISLA's missin Expand RISLA services that fcus n the underserved and first generatin higher educatin aspirants Cmments frm a number f the Educatin Summit participants suggested that the Cllege Planning Center prvide financial planning, infrmatin n saving fr cllege and financial literacy. Persnnel: Encurage emplyee educatin and prfessinal develpment. Encurage each emplyee t expand their hrizns by attending at least ne utside event r taking ne curse f interest t emplyee that is pertinent t their jb respnsibilities r t what RISLA des. Design and have available a dashbard fr every emplyee that prvides them with real time infrmatin regarding the bjectives their department is respnsible fr. Financial: Fr 14/15 increase public awareness f RISLA s lwer cst prgrams s that students and families d nt take ut as many higher cst private lans. This effrt will be cnsidered a success if the number f individuals utilizing ur lan prgrams increases by at least 10% Research career training/cntinuing educatin prgrams t determine if there is a need fr RISLA financing prgrams Evaluate ther revenue surces such as fee incme frm prviding services t ther agencies r institutins f higher educatin

3 Marketing: Custmer testimnials help reinfrce ur visin and successes. We hear every day frm peple wh benefit frm ur services. Determine hw t reach ut t custmers and cnvince them t allw RISLA t use their testimnials. Build n custmer relatinships by fllwing up with current lan brrwers in Octber/Nvember. Begin repeat brrwer calls in July. Prper training needs t be prvided Explre the market need fr an alternative lan utside f ur traditinal fur year institutins. This will require explratin f market segments and legality f ffering prgrams at select institutins. Metrics f success Lan prgrams: Lwer interest rates and fees than federal parent PLUS lans and ther private lan prgrams Cumulative default rates f less than 5% fr fixed rate lans Increase the number f individuals wh use ur lan prgrams by 10%. Baseline is 2,000 fr 14/15 Obtain funding t refinance at least $10,000,000 in educatin lans per year A stable nn federal lan prtfli Cllege Planning Center: At least maintain the same prprtin f high schl and cllege students that we nw serve, which is currently 13,000. That number may increase r decrease based n changes in the student ppulatin.

4 RISLA STRATEGIC ADVANTAGES Structural Advantages Quasi State Agency 1) As a quasi state agency brrwers understand that RISLA shuld be a surce f trusted infrmatin because ur gals are nt mtivated by prfits, but what is best fr students and families. 2) RISLA des nt have high return n investment (ROI) hurdle rates that banks r fr prfit grups must meet t satisfy their investrs r stckhlders. 3) Ability t issue tax exempt bnds 4) As a quasi state agency, RISLA is classified as bankruptcy remte which aids in issuing structured financial securities at the lwest interest rates pssible, which then allws RISLA t ffer lwer rates and fees t students and families. 5) RISLA benefits frm strng and vibrant pst secndary educatin institutins lcated in RI that attract students frm arund the cuntry. There is als a strng public elementary and secndary educatin system in Rhde Island that values an educated ppulatin. Operatinal Advantages 1) RISLA develped and wns the riginatin and disbursement sftware that is mre efficient and flexible than anything cmmercially available. 2) Many well trained lng term emplyees that are very gd at their prfessin. 3) Lw verhead csts cmpared t similar rganizatins 4) Twenty tw years f experience riginating and servicing nn federal lans Financial Advantages 1) Bnd issues are strng and very highly rated 2) Lw brrwer default rates 3) Excellent relatinships with the rating agencies 4) Open indentures that make subsequent bnd issues very efficient

5 RISLA DISADVANTAGES Financial 1) With n state funding r utside revenues, RISLA is ttally dependent n net revenues frm its lan prgrams. Regulatry 1) Current US Department f Educatin regulatins effectively discurage clleges and universities frm making students and families aware f special lw cst prgrams like RISLA s. 2) Data security and cmpliance csts are taking increasing amunts f persnnel and financial resurces.