SAN DIEGO, June 5, 2012 /PRNewswire/ -- First Associates Loan Servicing, one of the country's fastest growing consumer loan servicers, will service the PEAKS Private Student Loan Program.
Launched in 2010, the program provides financing for tens of thousands of students who attend the more than 100 ITT Technical Institutes in 37 states.
"The PEAKS trust was designed to provide $300 million in private student loans when it was created. It targets individuals who have demonstrated a commitment to complete their education but lack the resources. PEAKS helps students pay for the reminder of the educational costs that federal and state financial aid or the students' own resources won't cover," remarked Kevin Moehn, Program Administrator for the PEAKS program. "We recognize these students as people dedicated to realizing their dreams, paying off their obligations and working towards a responsible and enhanced financial future. We needed a state of the art loan servicing firm to help them reach their goals. First Associates has been a great partner for us."
First Associates operates under a different philosophy than legacy loan servicing firms, making it ideal for a wide range of markets, including student loans and other consumer assets classes. The four pillars of its approach are:
- Manage information accurately. Use of a state of the art, communication platform that ensures the data on loan types and borrowers are correct from the start.
- Use of multi-communication channels. Leverage nontraditional channels such as email and text messages in addition to more traditional voice mails to remind consumers of upcoming payments and other essential information. Customers can respond in the manner that's convenient for them, while still having the option of talking to a live person.
- Start early. Traditional service firms wait until the borrower is delinquent to start contacting customers, putting the loans on the fast track to 180-day delinquency. First Associates implements customized marketing campaigns during the grace periods to significantly reduce this trend.
- Be nice. The firm's expert customer service staff prides itself on courtesy and support for the borrower. In doing so, First Associates solves late payment problems before they cascade to default.
"The recent economic challenges put a giant spotlight on the inefficiencies of legacy servicing firms, most notably their reliance on outdated systems and processes under a highly bureaucratic mindset. This fosters a nice recipe for poor service and significantly higher delinquency rates," said David Johnson, CEO of First Associates. "We feel that there's a far better solution, one that recognizes the fact that loan servicing companies are – first and foremost – in the people business where they help individuals finance their education, successfully pay off their obligations and assist them in beginning a responsible financial future. We're privileged to be servicing the PEAKS Private Student Loan Program under this mantra."
About First Associates Loan Servicing
First Associates is one of the nation's premier consumer loan servicing firms and comprised of a team of professionals with a world class experience, first-rate knowledge and exceptional technology. . First Associates provides best-in-class servicing for titled assets and unsecured loan portfolios with a staff that is committed to providing the highest level of service to borrowers while maximizing lender and investor returns. More information is available at www.1stassociates.com.
© 2012 by First Associates Loan Servicing, LLC. All rights reserved.
Contact: David Oates
SOURCE First Associates Loan Servicing