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Presented by: Tara Felton Presented to: ANZFAA, Melbourne VIC Date: October, 2014

Introduction to Financial Aid. Presented by: Tara Felton Presented to: ANZFAA, Melbourne VIC Date: October, 2014. Agenda. Terms and Players The Life of a Loan Certification Basics Disbursement Rules Refund Calculations Administrative briefing Resources Questions. Terms.

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Presented by: Tara Felton Presented to: ANZFAA, Melbourne VIC Date: October, 2014

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  1. Introduction to Financial Aid Presented by: Tara FeltonPresented to: ANZFAA, Melbourne VICDate: October, 2014

  2. Agenda • Terms and Players • The Life of a Loan • Certification Basics • Disbursement Rules • Refund Calculations • Administrative briefing • Resources • Questions

  3. Terms • William D Ford Federal Direct Loan Program (DL) • Federal Family Education Loan Program (FFELP) • Stafford • Subsidized (unsubsidized) • PLUS • Consolidation • Dependent • Independent • Master Promissory Note (MPN)

  4. Players • Lender/Servicer • Guarantor • Loan holder • Department of Education (ED) • Institution

  5. Systems • Student Aid Internet Gateway (SAIG) • National Student Loan Data Center (NSLDS) • Central Processing Service (CPS) • Common Origination and Disbursement (COD) • National Student Loan Data System (NSLDS) • Customer Support Branch (CSB) • G5 (Direct Loan Fund Drawdown)

  6. The Life of a Federal Education Loan • Origination • The Interim Period • Repayment

  7. Origination Steps

  8. Interim Period • Stafford loans maintain school status as long as student at least half time • Unsubsidized Stafford loans will accrue interest • Grace period begins 1st time student drops below ½ time • Grace only occurs once per loan for six month • Graduate and Parent PLUS may request in-school deferment while student or borrower in school at least half time • Both types accrue interest • No grace period – may request deferment

  9. Repayment Period • Stafford loans • Begin six months after student initially drops below half time • PLUS loans • In repayment within 60 days of final disbursement • Ten year term initially • Many repayment, deferment, discharge options available • Default at 270 days past due

  10. School Responsibilities • Meeting and maintaining loan-program participation requirements; • Establishing borrower eligibility; • Loan Certification • Loan disbursement/delivery • Student borrower counseling • Notifying the lender, guaranty agency, ED of changes to borrower information; and • Reporting borrower enrollment and other information to NSLDS • Record Retention

  11. Certification

  12. Establish Borrower Eligibility • Is the student enrolled as a “regular” student? • Is the student academically qualified? • Is the student enrolled appropriately? • Is the student making satisfactory academic progress? • Have you received the ISIR or SAR?

  13. Cost of Attendance • COA includes: • Tuition and fees • Living expenses such as room and board • Books and supplies • Personal expenses such as the renting or purchase of a personal computer • Transportation costs

  14. Expected Family Contribution (EFC) • Based on student and (for dependents) parents assets • Estimated by ED and supplied on ISIR and SAR • 9 month EFC given • Can be adjusted by school only • And only by adjusting the factors • For longer or shorter periods, EFC must be prorated

  15. Estimated Financial Aid (EFA) • Amount of aid student will receive for the loan period • Can include • Loans • Grants • Scholarships • Work awarded based on enrollment

  16. Professional Judgement • Schools are allowed by law to, on a case by case basis, adjust the following: • Student’s COA • A data element used to calculate the EFC • Dependency status

  17. Loan Periods and Amounts

  18. Academic Year • Student loans are based on the academic year rather than the calendar year • Two types: • Scheduled academic year (SAY) • Borrower based academic year (BBAY) • Clock hour and non-term credit hour schools must use BBAY

  19. SAY • Fixed period of time • Generally starts and ends at same time each year • Normally corresponds to schools academic year or published calendar • Summer terms are part of the SAY • Trailer • Header • Can be standard or program by program

  20. Loan Limits and Amounts

  21. Dependent Students

  22. Independent Students

  23. Graduate Students

  24. Aggregate Limits

  25. Disbursements

  26. Method • School draws down funds and disburses to students via: • Post to school account • Payment of tuition • EFT to students/parents bank account • Checks/cash to students

  27. Timing for Payments • Stafford and PLUS loans • The 28th day of the first payment period if the student is a first-year undergraduate, first-time borrower • 10 days before the first day of the first payment period for all other borrowers • School can post own funds earlier – not a disbursement until timing listed above • Funds must be posted within 3 business days of drawdown • School must notify when funds credited to account by EFT

  28. Miscellaneous • No disbursements can be made more the 180 days from the loan period or last date of attendance or eligibility without express, written permission from ED • Entrance counseling must be completed prior to 1st year, 1st time borrower disbursements • Exit counseling must be completed when they are less than half time at your institution

  29. Administrative Items

  30. Student Status Confirmation Reports (SSCR) • Generally sent bi-annually by ED • Enrolled or recently enrolled students sent on list with most recent enrollment status • Must be returned within 30 days • Also must report within 30 days if student: • Enrolled at that school but has ceased to be enrolled on at least a half-time basis; • Has been accepted for enrollment at that school but failed to enroll on at least a half-time basis for the period for which the loan was intended; • Has changed his or her permanent address. • Can be removed from Title IV for non-compliance

  31. Entrance and Exit Counseling • First year, first time borrowers must complete entrance counseling • Also first time Graduate PLUS borrowers • Student access at www.studentloans.gov • Info sent to school and COD which can be searched by school • School must provide exit counseling to students before graduation or withdrawal • If student withdraws without school knowledge, school must send access within 30 days • Online counseling can be found at: • http://www.nslds.ed.gov

  32. Staffing / Separation of Duties • Must have adequate staffing • Enough staff to service amount of students • Minimum of two staff • One to certify • One to handle funding • Staff must be “administratively capable”

  33. Written Policies • Refund Policy • Can be different from schools • Satisfactory Academic Progress • Can be different for loan recipients but must be at least as strict as general policy • Minimum standard is 150% of program time • Qualitative and quantitative components

  34. Resources • ISIR Guide • https://www.fsadownload.ed.gov/Repository/ISIRGuide1011Nov/14-15ISIRGuide.pdf • U.S. School SFA Handbook • www.ifap.ed.gov • Foreign School Page • http://www.ifap.ed.gov/ForeignSchoolInfo/ForeignSchoolInfo.html • www.asa.org • bmayotte@asa.org

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