Student lending & higher ed

    Student lending in the United States has topped $1.3 trillion. Average indebtedness per borrower for the class of 2015 is approximately $35,000*. The cost of education continues to outpace inflation and federal default rates are in double digits. These market dynamics coupled with the passing of comprehensive education finance reforms and the increased scrutiny from the Consumer Financial Protection Bureau (CFPB), have forced each member of the student loan value chain to rethink many aspects of their existing operating models.

    PwC’s student lending and higher education specialists work with clients throughout the student lending value chain, assisting stakeholders with solutions to their complex business challenges.

    Our work with colleges and universities is focused on helping boards, presidents and senior administration with sustainability, operational efficiencies and strategic focus to remain competitive in the unstable higher education market. With lender clients, we help craft and develop business and risk models to succeed in the highly competitive environment and help provide guidance on legacy portfolio management. Our work with Title IV Servicers (TIVAS) is unparalleled in the industry, creating effective operational models, compliance monitoring systems, and assessing risk.

    *http://blogs.wsj.com/economics/2015/05/08/congratulations-class-of-2015-youre-the-most-indebted-ever-for-now/ 

     

    Our insight and approach to strategy and growth identifies how your core capabilities stack up to opportunities for growth. Our practice specializes in strategy for student loan providers, including lenders, TIVA and non-profit servicers. In addition, we specialize in working with boards and college presidents on institutional positioning and enrollment strategies.

    The following examples demonstrate how PwC assists our clients:

    • Enrollment management and institutional positioning: Assisting with the development, validation, and analysis around forward looking strategic vision documents, growth objectives, and plans
    • Channel strategy and optimization: Developing and reviewing strategies that launch efficiently and yield effective results, launch implementation and management
    • Development and growth of student loan portfolios:  Assisting with development strategies on gaining market share through originations and loan acquisition
    • Target operating model: Assessment, design, and governance of organizational operating models and analytical tools

    Third-party risk management: Program diagnostics to identify gaps against leading practices, transformational roadmaps in line with regulatory standards, TPRM office design and execution, technology enablement, and third-party assessments.

    The following examples demonstrate how PwC assists our clients:

    • Risk assessments: Risk analyses on specific functional areas throughout higher education and student loan organization
    • Third-party risk management: Program diagnostics to identify gaps against leading practices, transformational roadmaps, TPRM office design and execution, technology enablement, and third-party assessments.
    • Governance frameworks: Design, establish, and review risk governance structures and organizations
    • Controls: Designing and implementing internal controls frameworks, performing process reviews, and measuring effectiveness.
    • Regulatory examinations: Conduct pre-regulatory examination readiness assessments and post examination remediation
    • Regulatory compliance reviews: Analyze compliance program against leading practices for TILA, HEOA, FDCPA, ECOA, GLBA, UDAAP, and others

    In our practice we assist clients with creating a customer centric organization, improving the customer experience, and complying with regulatory requirements. Our multidisciplinary approach to customer experience innovation gives you a 360-degree view of how to better create and deliver the right differentiating experiences at the right time. Our Service Positioning workshops help our clients align their service offering around what their customers perceive as valuable.

    The following examples demonstrate how PwC assists our clients:

    • Student and borrower experience strategy: Student and borrower journey mapping, Voice of the Customer strategy development, Customer experience strategic assessments
    • Service positioning and value proposition: Customer-Centric program evaluation: Program metrics, performance scorecards and management dashboard development
    • Student and borrower analytics: Enterprise wide process to perform root-cause analysis and identify trends
    • Default management strategy and business model implementation: Review of default management strategy and operational procedures

    Our “manage to growth” strategy aligns priorities to fuel performance in a focused, accelerated way. As part of our work, we provide organizations with PwC’s perspective on the keys to managing the organization more effectively and a comprehensive view of all cost opportunities across the organization.

    The following examples demonstrate how PwC assists our clients:

    • Operational cost and strategic sourcing:  Identifying opportunities to improve processes based on leading practices
    • Academic resource and operational benchmarking: Cost studies and benchmarking performed on key performance indicators
    • Operational excellence:  Business process optimization and propensity modeling
    • Policies and Procedures: Assisting clients with establishing and enhancing policies and procedures across the functional spectrum
    consumer finance student loans