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Postsecondary Electronic Standards Council
May 7, 2003
ELM Resources, ELMNet, and Standards
Bill Connor
Director ELMNet Services
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What is ELM Resources?
• Mutual Benefit Corporation – Alliance of lenders, guarantors, and servicers
– Cooperative venture, open to all
• Non-Profit company
• Free services to schools
• Single Point of Data Exchange
• Provider Neutral
• Technology Bridge
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ELM is Open
• ELM members represent over 90% of FFEL volume
• All guarantors interfaced
• Provider neutral
• 700 schools using ELM– Choice of lenders, guarantors, & servicers
– Choice of providers based on service
– Control over loan process
• Supports all standard application flows
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What does ELM do
• Loan delivery– Batch processing– Real-time processing
• Central database• Reports• Inquiries
– Central Database– Remote Databases
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ELM in 2002
• 2002 was a successful year for ELM, despite hitches:– In 2002, volume grew to 2,100,330 loan records, a
42% increase over the previous year
– The National Disbursement Network delivered $5.6 billion in disbursement, a 42% increase over 2001.
– There are over 796 schools using the ELM service bureau, and,
– 748 schools using the NDN
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ELM Loan Volume
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
1998 1999 2000 2001 2002
Years
Loans
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ELMNet and Real-Time Inquiry
• ELMNet real-time inquiry in production since Oct. 1999
• Real-time access to remote production systems• Inquiry index has 12 million borrowers• Approx 85-90% of all loans available
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ELMNet and Real-Time Transactions
• ELMNet loan transactions since May 2002
• Current Real-Time Transactions participants– Citibank
– Educaid
– Wells Fargo
• In development/testing– Sallie Mae - Bank of America
– Southwest Student Series - Nelnet
• XML Messages using CommonLine 4
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ELMNet as a data switch
• Transactions• Multiple formats
– CL 95– CL4– CL5– Proprietary
• Batch & RT• FTP & POP3• FTP Push• FTP Pul
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Why does ELM want standards
• 700 school interfaces• 1000 lender IDs• 70 loan origination platforms
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School
School
School
School
Lndr/GA/Svcr
Lndr/GA/Svcr
Lndr/GA/Svcr
Lndr/GA/Svcr
ELMNet
RT
ELMNet Technology Buffer
Batch CL4
Batch CL5
Prop Fmt
CR
RT
RT
CL4
CL5
RT
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ELM and Standards
• ELM supports standards• ELM does not impose standards• Standards are embraced, not merely declared• Marketplace determines standards
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Schools and Standards
• Schools are the drivers• Schools are the focal point of ELM and the
ELM Members• Schools are not all the same
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Schools and Technology
• Dichotomy– Tradition v technological advancements
• Competing internal demands• Resource limits
– People– Equipment– Money
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Schools and Systems
• Internal v commercial/vendors• Open Source v Proprietary• Standards
– Primarily external interfaces– USDE– Financial aid
• ELM– State entities
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ELM and Schools
• ELM does not impose standards upon schools• ELM suggests standards• ELM suggests best practices• ELM is a technology buffer between schools
and lenders/guarantors
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ELM and Members
• ELM does not impose standards on Members• Mutual benefit organization• Board of Directors• Members committees within ELM
– Operations– Technology
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ELM and Members
• Like schools, not all Members are the same
• ELM is a technology buffer
• ELM Members are often competitors
• Standards help but do not eliminate competitive issues or capability issues
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ELM and the student loan industry
• Progression– ELM Universal Format (EUF)– CommonLine– Common Record
• ELM participates• ELM as a delivery standard?
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Standards – Some Suggestions
1. Understand who the customer is
2. Focus on need
3. Focus on external actions – points of data exchange
4. Recognize business realities
5. Don’t reinvent
6. Implementing standards, even good ones, can take time and money
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Additional Suggestions
1. Participate in national efforts• PESC • NCHELP ESC
2. Recognize the bias of certain efforts3. Focus on achievable objectives4. Understand external factors
• USDE/FSA modernization• XML• Internet