2011-08-03T14:00:15-07:00 2010-09-30 990 2009-10-01 680396383 EdFund EDFU 9164648135 California Student Aid Commission PO Box 419026 Rancho Cordova CA 957419026 Enrique Murillo 9164646439 2011-08-03 2009 2016-02-24 21:20:13Z X Enrique Murillo PO Box 419026 Rancho Cordova CA 957419026 78671189 0 X X Auxiliary 1997 CA EdFund, an auxiliary organization of the California Student Aid Commission (Commission), administers the services essential to the Commission's participation as a designated guaranty agency in the Federal Family Education (FFEL) Loan Program. 6 6 577 0 0 0 25265 41480 90209207 78159110 261257 22794 293272 434584 90789001 78657968 27900 49000 0 0 51359548 43929670 0 0 0 39452369 35166702 90839817 79145372 -50816 -487404 134006210 133830025 112088336 112381616 21917874 21448409 On behalf of the Commission, EdFund is one of the nation's leading guaranty agency service providers of student loan services under the FFEL Program. These services include student loan guarantee functions, default prevention and aversion efforts, and default management and collection activities. 0 1 13650864 0 16135716 Guarantee Services: Services include providing loan guarantee processing and support services to schools and lenders who participate in the FFEL Program. For the year ending September 30, 2010, EdFund administered the loan guarantee for nearly $4.1 billion in FFEL Program Stafford and PLUS loans, a 60.6 percent decrease from the $10.4 billion loans guaranteed in 2009. This loan volume decrease reflects the mandatory shift from the FFEL Program to Federal Direct lending resulting from passage of the Health Care and Education Affordability Reconciliation Act of 2010 (H.R. 4872) on March 30, 2010. Under H.R. 4872, student loan funding was removed from lending institutions as of July 1, 2010 eliminating the need for guarantee services. 14261196 0 16857144 Default Prevention: EdFund engages in default prevention and aversion programs dedicated to educating and assisting borrowers in successful repayment of their student loan debt through a cooperative effort with schools and lenders. Default prevention counselors work directly with borrowers to increase awareness in a variety of repayment options, as well as the potential consequences of defaulting on a student loan. If a loan becomes seriously delinquent and a lender default claim is pending, the counselor acts as liaison between the borrower and lender in an effort to help the borrower avoid defaulting on their student loan. EdFund also provides early withdrawal counseling to borrowers who have withdrawn from school before guaduating. Borrowers are encouraged to return to school, or helped with planning for repayment to avoid becoming delinquent or defaulting on their student loans. In 2010, EdFund's default aversion efforts helped over 495,000 delinquent borrowers resolve payment difficulties which prevented nearly $5.8 billion in student loan defaults. Many borrowers resolve their delinquency at this stage by returning their loans to good standing. 37457818 0 44276220 Default Management: Despite various efforts counseling borrowers to stay current on their student loans, a number of loans enter default after 270 days of delinquency. In 2010, a total of $1.4 billion in claims were paid to lenders on defaulted loans. After a claim is paid, EdFund works with the defaulted borrowers to help establish a voluntary loan repayment agreement based on their financial situation. Borrowers that participate in the loan rehabilitation program receive the benefit of an improved credit history and restored eligibility for financial aid. EdFund currently manages a defaulted loan portfolio of approximately $3.2 billion. In 2010 EdFund successfully collected $670.8 million of defaulted loans including $335 million in rehabilitation loans. 752969 0 890030 Borrower Counseling Services. In February 2010, EdFund entered into a contract with a post-secondary educational institution to provide borrower counseling (delinquency prevention and default aversion) services to its students for loans not covered by the traditional FFEL guarantor model. This fee for service pilot program worked delinquent loans that were less than 60 days in arrears in an attempt to improve the return-to-school rate for students who withdrew before completing their program of study; reduce student loan delinquency rates for all borrowers in repayment; and lower loan defaults. The contract terminated effective November 2010. 752969 0 890030 66122847 1 1 0 1 0 0 0 1 0 1 1 0 0 0 0 0 0 0 1 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 48345 0 1 577 1 0 0 0 0 0 1 1 0 0 0 0 0 6 6 0 0 0 0 0 0 1 1 1 0 0 1 1 1 1 1 1 1 1 0 CA IL OR X X California Student Aid Commission 9164648040 10834 International Drive Rancho Cordova CA 95670 Sally Furay 8 X X 1830 0 0 C Michael Cooney 8 X X 1503 0 0 Frederick M Weis 8 X X 1000 0 0 Carlene Moore Ellis 8 X X 0 0 0 Conny Jamison 5 X 1441 0 0 Dale Rogers Marshall 5 X 1100 0 0 Diana Fuentes-Michel 0 X 0 0 0 Sam M Kipp III 40 X X X 334636 0 31748 Molly A Greek 40 X X 142683 0 18950 Martin A Scanlon 40 X X 218265 0 37624 Therese B Bickler 40 X 183824 0 34410 Len B Hyde 40 X 176107 0 33523 Patrick C Pendleton 40 X X 175204 0 33007 Diane E Manning 40 X 176003 0 30361 David E Reid 40 X 210171 0 39588 John R Hancock 40 X 164750 0 27722 Teresa R Freedman 40 X 139074 0 33355 Rhonda J Mohr 40 X 144659 0 22485 Margit K Miller 40 X 143452 0 18913 Sean A Cordero 40 X 152940 0 34316 Tina L Kilgore-Goodwin 40 X 137400 0 28451 2506042 0 424453 92 1 1 0 Premiere Credit of North America LLC 2002 Wellesley Blvd Indianapolis IN 46219 Collection Agency 1108473 Randstad 8430 West Brynmawr Chicago IL 60631 Temporary Staffing 517168 GC Services LP 6330 Gulfton St Houston TX 77081 Collection Agency 433271 Dell Marketing LP One Dell Way Round Rock TX 78682 Computer Sales & Service 307780 Perry-Smith LLP 400 Capitol Mall Ste 1200 Sacramento CA 95814 Accounting Firm 271980 8 0 0 29760 0 0 11720 3700 41480 Guarantee Services 900099 16135716 16135716 0 0 Default Prevention 900099 16857144 16857144 0 0 Default Management 900099 44276220 44276220 0 0 Borrower Counseling 900099 890030 890030 0 0 0 0 0 0 78159110 19182 0 0 19182 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3612 0 0 0 3612 3612 3612 0 0 7635 29760 9463 -1828 0 0 -1828 6887 3758 3129 0 0 3129 0 0 0 0 0 0 Grant adminstrative fees 900099 433283 433283 0 0 0 0 0 0 433283 78657968 78596005 0 20483 44000 44000 5000 5000 0 0 0 0 1593930 421429 1172501 0 0 0 0 0 29752026 24991702 4760324 0 3439358 2870150 569208 0 6578473 5671672 906801 0 2565883 2167089 398794 0 0 0 0 0 90585 54665 35920 0 255844 7999 247845 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 52432 49219 3213 0 4482575 3691592 790983 0 3312507 2552921 759586 0 0 0 0 0 5841915 3632709 2209206 0 464362 383471 80891 0 0 0 0 0 27523 23674 3849 0 0 0 0 0 0 0 0 0 2203848 1692521 511327 0 421675 221380 200295 0 Collection agency fees 15360442 15360442 0 0 Consulting and professional fees 2563993 2244814 319179 0 Other operating expenses 89001 36398 52603 0 79145372 66122847 13022525 0 0 0 112015464 122075546 0 0 15437779 7415024 1260140 1042084 16373855 13076484 5292827 3297371 0 0 134006210 133830025 86524106 86418404 25564230 25963212 112088336 112381616 X 0 0 5292827 3297371 16625047 18151038 21917874 21448409 134006210 133830025 X 0 1 1 X 1 1 X X X 0 0 0 California Student Aid Commission 680317676 Line 6 1 1 1 0 1 0 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 222299 222299 78923073 79145372 1000000 250000 0 0 1000000 1000000 1000000 1000000 4000000 6000000 0 0 174260 222299 396559 250000 250000 250000 250000 1000000 1500000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 452518 0 130358 322160 15921337 0 12946126 2975211 0 0 0 0 3297371 0 Advance from California Student Aid Commission 20000000 Post-retirement Benefits 5549484 Deferred Compensation Obligation (457 Plan) 413728 25963212 78657968 79145372 -487404 0 0 0 0 0 0 -487404 78626907 0 0 0 0 0 78626907 0 31061 31061 78657968 79096372 0 0 0 0 0 79096372 0 49000 49000 79145372 SchD_P10_S00_L00 Schedule D, Part X Tax-exempt status: EdFund qualifies as a tax-exempt organization under section 501(c)(3) of the United States Internal Revenue Code and corresponding provisions of California law and, accordingly, is not subject to federal or state income taxes. SchD_P12_S00_L04b Schedule D, Part XII, Line 4b Golf tournament $31,061 SchD_P13_S00_L04b Schedule D, Part XIII, Line 4b Golf tournament grants and other recipients $49,000 Golf tournament 37395 0 37395 0 0 4320 0 0 5143 0 0 37395 0 37395 0 0 4320 0 0 5143 9463 27932 1 Orphan Foundation of America 12020 D North Shore Drive Reston VA 201904977 521238437 501(c)(3) 44000 0 Proceeds benefit the Orphan Foundation of America, a nationwide program that provides assistance to orphan and foster youth as they transition from foster care to young adulthood, helping them attend college and vocational school. During fiscal year ending September 30, 2010, EdFund contributed $44,000 to support the college aspirations of 12 foster youth. 1 0 SchI_P01_S00_L02 Schedule I, Part I, Line 2 EdFund Charities contributed $44,000 in grant funds for education scholarships for twelve orphan and foster youth. EdFund monitors the use of the funds disbursed by being actively involved in the selection process of each scholarship recipient. EdFund selects from a group of eligible students affiliated with the receiving organization based on a series of criteria. Once the scholarship winners are selected, in addition to receiving acknowledgment/acceptance letters from each of the students, EdFund continues to receive the scholarship winners' academic and other information to confirm continued eligibility. X 1 0 0 0 0 0 1 0 0 Sam M Kipp III 330905 0 0 0 3731 0 0 0 31748 0 366384 0 0 0 Molly A Greek 115021 0 17928 0 9734 0 0 0 18950 0 161633 0 0 0 Martin A Scanlon 218265 0 0 0 0 0 0 0 37624 0 255889 0 0 0 Therese B Bickler 183824 0 0 0 0 0 0 0 34410 0 218234 0 0 0 Len B Hyde 176107 0 0 0 0 0 0 0 33523 0 209630 0 0 0 Patrick C Pendleton 135998 0 0 0 39206 0 0 0 33007 0 208211 0 0 0 Diane E Manning 153616 0 22387 0 0 0 0 0 30361 0 206364 0 0 0 David E Reid 210171 0 0 0 0 0 0 0 39588 0 249759 0 0 0 John R Hancock 144275 0 20435 0 40 0 0 0 27722 0 192472 0 0 0 Teresa R Freedman 115619 0 17875 0 5580 0 0 0 33355 0 172429 0 0 0 Rhonda J Mohr 123155 0 19027 0 2477 0 0 0 22485 0 167144 0 0 0 Margit K Miller 124715 0 18737 0 0 0 0 0 18913 0 162365 0 0 0 Sean A Cordero 132933 0 20007 0 0 0 0 0 34316 0 187256 0 0 0 Tina L Kilgore-Goodwin 118665 0 18735 0 0 0 0 0 28451 0 165851 0 0 0 SchJ_P01_S00_L04 Schedule J, Part I, Line 4 a. Patrick C Pendleton received $27,668 separation payment. SchJ_P01_S00_L06 Schedule J, Part I, Line 6 EdFund employees, including members of the Executive Mangement Team, are eligible for an incentive compensation program that is contingent on numerous factors including individual performance, FFEL Program net earnings, other performance as measured by high-level organizational metrics and Commission approval. F990_P03_S00_L03 Form 990, Part III, Line 3 H.R. 4872 The Health Care & Education Affordablity Reconciliation Act of 2010, Title II A-Education, Part II-Student Loan Reform, terminates the Federal Family Loan Program appropriation after June 30, 2010. This change eliminates the Guarantee Services segment of EdFund's business. F990_P06_S0A_L07b Form 990, Part VI, Section A, Line 7b EdFund is an auxiliary organization of the California Student Aid Commission (Commission) pursuant to Section 69522(a) of the California Education Code. Additionally, EdFund is a component unit of the Commission and EdFund operates under the terms and conditions set forth in an annual operating agreement between the Commission and EdFund. F990_P06_S0B_L11 Form 990, Part VI, Section B, Line 11 A copy of the Form 990 was issued to each EdFund Board Member for review prior to its presentation by the external accounting firm at the EdFund Board meeting held June 16, 2011. The Form 990 was reviewed by EdFund's external accounting firm. F990_P06_S0B_L12c Form 990, Part VI, Section B, Line 12c Annually, EdFund's Executive Management Team and other key personnel are required to disclose all conflict of interest(s) to the state of California. This information is used by EdFund's legal department and reviewed periodically throughout the year prior to entering into contracts with new vendors to ensure there are no conflicts of interest. F990_P06_S0B_L15 Form 990, Part VI, Section B, Line 15 The process for determining compensation of EdFund's Executive Management Team (EMT) is performed by the Human Resources Department. Compensation for each EMT position is based on numerous factors including, but not limited to, market information utilizing internal and external equity measures, geographic location, positions with similiar roles and responsibilities, comparable company size, not-for-profit structure and similiar lines of business. Based on these factors each position is assigned a pay grade. Finally, based on each EMT member's level of experience and expertise, each position is assigned a compensation figure within the applicable pay grade range. F990_P06_S0C_L19 Form 990, Part VI, Section C, Line 19 EdFund's governing documents, conflict of interest policy, and audited financial statements are available for public inspection upon request. Additionally, the IRS Form 990 is published and available to the public on the Guidestar website and on the State of California, Department of Justice on-line charity research tool. California Student Aid Commission PO Box 419026 Rancho Cordova CA 957419026 680317676 Guaranty agency and grant administrator CA Governmental N/A 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 1 0 0 California Student Aid Commission k 6960351 California Student Aid Commission p 78170830 California Student Aid Commission e 20000000