A Primer on Administering Canadian Government Student Aid. Presented by Cara Piperni

Transcription

1 A Primer on Administering Canadian Government Student Aid Presented by Cara Piperni IEC Conference Washington, D.C. June 2015

2 Agenda Canadian context Key references and resources Your interactions with governments and students Services and support to students Regulatory highlights by jurisdiction

3 A FEW FACTS ABOUT CANADA Federation of 10 provinces and 3 territories Multicultural society with population of over 34 million Two major linguistic groups and two official languages: English (57%) and French (22%) One of the highest rates of PSE completion in the world Provincial governments have exclusive responsibility of all levels of education

4 FINANCIAL AID: A PROVINCIAL JURISDICTION Great variability in the type, quantity and availability of resources for students = inequities based on province of residence Evolution of programs due to individual (and independent) provincial priorities Combined with federal portion, and varying degrees of integration with provincial programs, makes it very complex

5 Key Terms Federal Level HRSDC Human Resources & Social (Skills) Development Canada NSLSC National Student Loan Service Center Administers CSL, contracted by HRSDC CanLearn Website with interactive tools MSFAA Master Student Financial Assistance Agreement (MSFAA) Signed by student only once as a student unless they have a break for more than 2 years. RAP Repayment Assistance Program

6 How CDN differs from USDL: What s good for students Accommodation for disabilities (reduced course load and grants) and special circumstances (dependence on parents) Mobility (out of province or out of country) There are loans for part times tudies No interest on loans during full time studies; no loan fees Mandatory consolidation simplifies repayment process, one servicer for all loans Choose from fixed or floating interest rates Repayment assistance

7 How CDN differs from USDL: Not so good for Students Can be difficult to determine province of residency Don t know if eligible, aid assessment or loan debt in advance of application processed Limits on aid may not reflect actual costs/need Higher income families have no options Some grants restricted to studies in home province Multiple points of contact (sometimes school, sometimes government) to get answers

8 How CDN differs from USDL: What s good for schools Not performing aid assessment nor disbursing monies on behalf government Simpler repayment processes to explain Compliance audits not common for schools outside of province

9 How CDN differs from USDL: The not so good for schools Students need help deciphering residency COA set by government is a double edged sword (actual tuition with limits on living expenses); no PJ See inequities with varying degrees of generosity across jurisdictions Each province has different processes and systems to manage

10 Key References Provided as handouts: From the Canadian Association of Student Financial Aid Administrators (CASFAA): Out of Province Student Aid Summary From McGill s analysis for IEC, as requested by senior Education Policy Advisor on Hill Comparison of US and Cdn Financial Aid from both School and Student/Parent perspective From Canadian Centre for Policy Alternatives: It s Complicated: An Interprovincial Comparison of Student Financial Aid by Jordan MacLaren (July 2014) complicated

11 YOUR KEY INTERACTIONS WITH PROVINCIAL GOVERNMENTS OR STUDENTS

12 Determining Residency A student may need help figuring out which province/territory to apply through In general A Canadian citizen, a permanent resident of Canada or designated as a protected person The province/territory where they are considered a permanent resident/canadian citizen Rule of Thumb: Where a student most recently lived for 12 consecutive months while not a full time postsecondary student

13 Being a Designated School

14 Program Recognition Program of Study Start and End Date for academic year Number of Years for on time completion Costs (tuition, fees, books, equipment only)

15 Need Assessment Determination of a students need Allowable Cost Resources = Assessed Need Direct students to Estimators/Calculators Calculation of federal and provincial portions, as applicable Student may need assistance understanding methods of appeal / recognition of Special Circumstances, e.g. dependent independent

16 Confirmation of Enrolment For a particular student, who is receiving aid Year of study Course Load Changes in Cost Continuation of interest free status for a particular student With previous loans but no new aid

17 After the fact verification Report any changes for a particular student Typically following add/drop registration period Necessitates knowledge of how was originally reported on COA/COR Very important: dropping under jurisdiction s definition of full time course load Any concern about a student

18 Satisfactory Academic Progress Based on year of study reported by student If not SAP, may need an academic plan submitted

19 SERVICES TO STUDENTS & FINANCIAL LITERACY

20 Reporting Resources Student errors or misrepresentation can have a devastating impact Also, urge student to be informed about how/if to report any scholarship and needbased aid received by institution

21 Tools and Services Estimators/calculators NSLSC On Line Services (integrated loans) From CanLearn website Status and balance of loans, transaction history Customize repayment, get repayment assistance Includes a secure online mailbox to reduce paper mailing and/or attachments to unsecure addresses Big push for student adoption Repayment webinars

22 Why use Government Sponsored Loans? Not charged interest while in school Do not have to repay grants Do not have to make payments for 6 months after leaving school Can may payments without penalty There are programs designed to assist with repayment Interest on government loans is tax deductible

23 Loan Repayment Loan consolidation Consolidation letter, options Loan Repayment Estimator (CanLearn) How to save money Serious consequences of missing a loan repayment Avoiding repayment difficulties

24 Best option: Repayment Assistance If qualify, affordable payment is calculated based on income and family size Payment could be lowered or put on hold Must apply every 6 months thru NSLSC Also: Revision of Terms (all borrowers) Interest only payments, or adjusting term up to max 174 months (14.5 years)

25 Common Debt Regrets Not applying for government aid on time Not maintaining a full course load Paying off government loans before credit card/line of credit Consolidating government loans with consumer debt Taking time off school to work/save Not filing income tax returns Defaulting on government loans

26 2015/16 HIGHLIGHTS BY JURISDICTION

27 THANK YOU! Cara Piperni Director, Scholarships & Student Aid McGill University