Sector: Solution: Client: Challenge: Results: Higher Education Guaranteed Nationally Recognized Effectively address the sharp 20% reduction in defaults within Loan Servicing – Lender increase in number three months of defaulting loans Default Reduction >> The Bottom Line As a result of a nationwide credit crunch, a nationally recognized financial institution found itself among those facing a dramatic increase in delinquencies and defaults on its student loans. They needed to find a rapid solution to effectively address their rising delinquency and default rates, so they turned to ACS experts to meet this challenge. Using innovative thinking and leveraging the latest technology, ACS collection experts came up with a multifaceted approach to mitigate the lender’s delinquency and default issues. Within the first three months of implementation, the lender’s default rate had gone down 20%, and ACS was pivotal in keeping more than 1,000 loans current on the lender’s books. ACS TUTORING OF A LARGE LENDER PREVENTS STUDENTS FROM FLUNKING LOAN REPAYMENT 101. an ACS >> B O T T O M L I N E CASE STUDY 20% IN 3 MOS. ACS created a multi-pronged approach to help a nationally recognized lender reduce its student loan default rate by 20% in the first three months. T HE CHAL L E N G E In the midst of a nationwide credit crunch, a nationally recognized lender was among those experiencing a significant increase in delinquencies and defaults on its student loan payments. They needed to find a quick solution to mitigate their rising delinquency rates and stem the number of student loans going into default. With ACS as their loan servicing provider, and aware of ACS’ reputation in the student loan industry, the lender turned to ACS to help them effectively address this challenge. T HE RES ULT S In the first three months, the lender realized a 20% reduction in T HE SOL U T ION defaulting loans, and ACS helped the lender keep more than 1,000 Leveraging the latest technology, ACS collection experts came up with a loans current on the books. multifaceted approach to address the lender’s delinquency and default issues. ACS strategies of multiple and ACS strategies included: diverse borrower contacts and availability, leveraging technology, • Expanding and focusing due diligence activities through: and targeted collection efforts - Increased frequency of manual and virtual outbound calls yielded significant results in a short period of time. and message blasts - Enhanced e-mail campaigns Due to the positive outcome - Creative non-traditional mailers to improve opening rates working with ACS, the lender avoided the need to work with a • Establishing toll-free numbers for greater availability on incoming calls third-party collection agency and the associated higher costs. • Implementing early intervention delinquency calling • Extracting key information to apply a targeted approach on high balance accounts • Expanding agent-owned collections activity and incentive plans to increase resolve rates • Applying expertise and best practices from top collection agents • Partnering with guarantee agencies on co-branded correspondence to improve response rates 877-294-9250 www.acs-inc.com This document may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to numerous risks and uncertainties, many of which are outside the Company’s control. As such, no assurance can be given that the actual events and results will not be materially different from the anticipated results described in the forward-looking statements. Factors could cause actual results to differ materially from such forward-looking statements. For a description of these factors, see the Company’s prior filings with the Securities and Exchange Commission, including the most recent Form 10-K. ACS disclaims any intention or obligation to revise any forward-looking statements, whether as a result of new information, future event, or otherwise. ACS and the ACS logo are the property of Affiliated Computer Services, Inc. All other registered and trademarks are the property of their respective owners.