Requirements Before HEOA

Transcription

1 Entrance and Exit Counseling December 8 th 2008 CASFAA Conference Sponsored by California Lenders for Education (CLFE) Presented by: Paula Craw, ECMC Susan Neppl, GLHEC Cathy Mueller, Mapping Your Future Ron James, UCSF Requirements Before HEOA Entrance & Exit Counseling Before HEOA Entrance Counseling Requirements discussed only in the regs ( (f)) Requirement for one set of information for Grad PLUS borrowers with Stafford Loans Different set of information for Grad PLUS borrowers without Stafford Loans Exit Counseling No requirement for Grad PLUS borrowers

2 New Requirements After HEOA Post HEOA (effective 8/14/08) Entrance Counseling Adds entrance counseling to statute Spells out method options In-person Written form, borrower must sign & return Online, borrower must acknowledge Interactive counseling with tests/quizzes encouraged Much more extensive list of requirements (see handout) Post HEOA (effective 8/14/08) Exit Counseling Now required for Grad PLUS borrowers Single standard for Stafford and Grad PLUS More extensive list of requirements (see handout) Lenders/GAs may assist

3 Presenter Information Paula Craw AVP, Financial Awareness and Training ECMC (757) ECMC.org In-Person Student Loan Counseling Why In-Person Loan Counseling Meets one of the Department of Ed s required methods Can accommodate large groups of students Default management/prevention tool Target high risk populations Studies prove the best learning occurs in instructor lead sessions* *Source: Garman/Gappinger

4 Strategies For A Successful Loan Counseling Event Select a target audience, if necessary Consider common predictors of default GPA Major Graduation Continuous enrollment Income of borrower Indebtedness Strategies For A Successful Loan Counseling Event Determine a date and time Offer more than once during the day Offer more than once during the week Create a standard Example: Exit Sessions the last Friday of the month Strategies For A Successful Loan Counseling Event Actively promote the Loan Counseling Session Get personal s, phone calls, texts, invitation Reach larger audiences Flyers, newspapers, radio Include WIIFM s in promotional materials

5 When Conducting A Loan Counseling Session Use a presentation style that works for you PowerPoint/Overheads/No electronics Assemble handouts in advance Handout of PowerPoint Copy of loan indebtedness Brochures List of helpful resources When Conducting A Loan Counseling Session Ensure students know what to expect How long the session will take Describe handout materials Documentation to be collected Q and A Use examples relevant to your audience Check for understanding When Conducting A Loan Counseling Session Be prepared to answer questions What happens next? Will I get a payment book? How can I defer my loans? Should I consolidate? What happens if I move? What if I don t get a bill? What if I don t get a job after the grace period? Set up a follow-up appointment

6 Yes, It s Worth the Effort Who benefits? Students/Parents Financial Aid Office Alumni Office Institution Taxpayers Presenter Information Susan Neppl, Training Consultant Great Lakes Higher Education Guaranty Corporation (877) Mygreatlakes.org Online Student Loan Counseling

7 Features Counseling Sessions Counseling Sessions

8 Meet Regulatory Requirements Requirements Maintain documentation Sample repayment information Respond to questions Stafford exit data to guaranty agency Written repayment information to Perkins borrowers Definition of half-time enrollment Appropriate offices if withdraw Requirements Provide contact information Prevent borrowers from circumventing or exiting counseling before complete OSLC team and staff continue to monitor regulations

9 Documentation Paper records Daily records Reports tab Export Automated method Archive Policy Mapping Your Future isn t record keeper Archive policy One year of data online Two prior years available by customer service request Prior data is unavailable Sample Repayment Stafford entrance Range of indebtedness or Average indebtedness of borrowers who obtained Stafford Loans for attendance at school or in program of study If student borrows Stafford AND Grad PLUS loans, sample repayment amount based on average indebtedness must include both Stafford and Grad PLUS indebtedness

10 Sample Repayment Grad PLUS entrance Range of debt levels or average indebtedness of Grad PLUS borrowers at school or in program of study If student borrows Stafford AND Grad PLUS loans, sample repayment amount based on average indebtedness must include both Stafford and Grad PLUS indebtedness Sample Repayment Stafford exit Borrower's actual indebtedness or Average indebtedness of borrowers who obtained Federal Stafford or SLS loans at school or in program of study If student borrows Stafford AND Grad PLUS loans, sample repayment amount based on average indebtedness must include both Stafford and Grad PLUS indebtedness Sample Repayment Display information with monthly payment amount at maximum interest rate With instructions to borrower On your website On customized counseling start page Use indebtedness customization

11 Example Indebtedness Respond to Questions

12 ExitExpress ExitExpress Individual confirmations: Asterisk and a date indicates when guarantor retrieved report Exit report list: "Status" under GA Guarantor Exception Report: List of records guarantor has not retrieved* Guarantor Rejection Report: List of exit records guarantor rejected (didn t guarantee loan) Other Information Contact information On customized page Possible contact customization later Definition of half-time enrollment and information on offices to notify if withdraw: on customized page

13 Customize Customization Customized Questions Default questions Select questions Minimum number Can submit

14 Expanded Counseling Questions and Expansion Indebtedness

15 Indebtedness Budget Calculator Excluded from entrance Included in exit Counseling Start Page School-specific information Dates Disbursement procedures Refund policies Sample repayment* Contact information* Withdrawal contacts* Half-time definition* Template One per session

16 Counseling Start Page Options Wizard create a new page Edit edit existing page Submit Submit page for approval School logo (insert URL in image box) Type text directly into Pagemaster Save changes every 15 minutes Link to page Counseling Start Page Student Form Default setting: only regulatory required fields Require borrowers to complete all fields References during entrance Great if high drop-out rates

17 Student Form End URL Display School Logo Customized start page At top of all pages Programming Rename Exit button

18 Future of OSLC Reengineering database PESC Online Loan Counseling standard TEACH Grant exit counseling Financial literacy counseling? Future releases Presenter Information Cathy Mueller, Executive Director Mapping Your Future (940) (573) A School s Perspective

19 On behalf of CLFE and our membership organizations, we thank you for the opportunity to present today s session.