On July 1, 2010, the U.S. Department of Education took over 100 percent of the federally guaranteed student loan market. Private sector lenders of student loans could continue to service and collect existing loans, but could not issue any new, federally guaranteed student loans. USA Funds, one of the largest private-sector lenders of student loans, had more than $1 billion in loans and a business model that was now regulated out of existence. The company had to redesign its business model and redeploy more than $1 billion in funds into a new business model.
My area of focus within DXC's Consulting Services Group was to develop the overall strategy for a new business model and then work with the client’s team to create a tactical roadmap. I worked closely with the client to have them identify core competencies and areas of expertise other than lending. Then, by leading the client through a series of strategic workshops, I had them create the change they would live in with their new business model. By utilizing Lean Six Sigma Black Belt skills, I was able to help the client create practical tactics that utilized best practices during implementation and would allow for scalable growth.
Between 2010 and 2016, USA Funds was able to convert cash from maturing loans into newly acquired online college prep sites. The organization had over 100 acquisitions of varying sizes and strategically aligned these sites to allow them to become the preeminent provider of college and college prep advice. They were able to utilize their extensive network and connections with five thousand colleges in the U.S. to further strengthen their online platform. In addition, they developed a strategy for monetizing the acquired properties.
Overall, the strategies and tactics we created and deployed for the new business model worked very well to position USA Funds to both uphold their mission statement of assisting students while maintaining sustainable profitability.