requirements before heoa - cccsfaaa federal stafford or sls loans at ... (573) 796-3730 a school’s...

Entrance and Exit Counseling

December 8th 2008CASFAA Conference

Sponsored by California Lenders for Education (CLFE)

Presented by: Paula Craw, ECMCSusan Neppl, GLHECCathy Mueller, Mapping Your FutureRon James, UCSF

Requirements Before HEOA

Entrance & Exit CounselingBefore HEOA

Entrance CounselingRequirements discussed only in the regs(§682.604(f))Requirement for one set of information for Grad PLUS borrowers with Stafford LoansDifferent set of information for Grad PLUS borrowers without Stafford Loans

Exit CounselingNo requirement for Grad PLUS borrowers

New Requirements After HEOA

Post HEOA (effective 8/14/08)

Entrance CounselingAdds entrance counseling to statuteSpells out method options

In-personWritten form, borrower must sign & returnOnline, borrower must acknowledge

Interactive counseling with tests/quizzes encouragedMuch more extensive list of requirements (see handout)

Post HEOA (effective 8/14/08)

Exit CounselingNow required for Grad PLUS borrowersSingle standard for Stafford and Grad PLUS More extensive list of requirements (see handout)Lenders/GAs may assist

Presenter Information

Paula CrawAVP, Financial Awareness and Training ECMC(757) 374-6771pcraw@ecmc.org

ECMC.org

In-Person Student Loan Counseling

Why In-Person Loan Counseling

Meets one of the Department of Ed’s required methodsCan accommodate large groups of studentsDefault management/prevention tool

Target high risk populations

Studies prove the best learning occurs in instructor lead sessions*

*Source: Garman/Gappinger

Strategies For A Successful Loan Counseling Event

Select a target audience, if necessaryConsider common predictors of default

GPAMajorGraduationContinuous enrollmentIncome of borrowerIndebtedness

Strategies For A Successful Loan Counseling Event

Determine a date and timeOffer more than once during the dayOffer more than once during the week

Create a standardExample: Exit Sessions the last Friday of the month

Strategies For A Successful Loan Counseling Event

Actively promote the Loan Counseling Session

Get personal – Emails, phone calls, texts, invitationReach larger audiences – Flyers, newspapers, radio

Include WIIFM’s in promotional materials

When Conducting A Loan Counseling Session

Use a presentation style that works for you

PowerPoint/Overheads/No electronics

Assemble handouts in advanceHandout of PowerPointCopy of loan indebtednessBrochuresList of helpful resources

When Conducting ALoan Counseling Session

Ensure students know what to expectHow long the session will takeDescribe handout materialsDocumentation to be collectedQ and A

Use examples relevant to your audienceCheck for understanding

When Conducting ALoan Counseling Session

Be prepared to answer questionsWhat 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

Yes, It’s Worth the Effort

Who benefits?Students/ParentsFinancial Aid OfficeAlumni OfficeInstitutionTaxpayers

Presenter Information

Susan Neppl, Training ConsultantGreat Lakes Higher Education Guaranty Corporation(877) 221-0557

Mygreatlakes.org

Online Student Loan Counseling

Features

Counseling Sessions

Counseling Sessions

Meet Regulatory Requirements

Requirements

Maintain documentationSample repayment informationRespond to questionsStafford exit data to guaranty agencyWritten repayment information to Perkins borrowersDefinition of half-time enrollmentAppropriate offices if withdraw

Requirements

Provide contact informationPrevent borrowers from circumventing or exiting counseling before complete OSLC team and staff continue to monitor regulations

Documentation

Paper recordsDaily recordsReports tab

ExportAutomated method

Archive Policy

Mapping Your Future isn’t record keeperArchive policy

One year of data onlineTwo prior years available by customer service requestPrior data is unavailable

Sample Repayment

Stafford entranceRange 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

Sample Repayment

Grad PLUS entranceRange 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 exitBorrower'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 monthlypayment amount at maximum interest rate

With instructions to borrowerOn your websiteOn customized counseling start pageUse indebtedness customization

Example

Indebtedness

Respond to Questions

ExitExpress

ExitExpress

Individual confirmations: Asterisk and a date indicates when guarantor retrieved report Exit report list: "Status" under GAGuarantor 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 informationOn customized pagePossible contact customization later

Definition of half-time enrollment and information on offices to notify if withdraw: on customized page

Customize

Customization

Customized Questions

Default questionsSelect questionsMinimum numberCan submit

Expanded Counseling

Questions and Expansion

Indebtedness

Indebtedness

Budget Calculator

Excluded from entranceIncluded in exit

Counseling Start Page

School-specific informationDatesDisbursement proceduresRefund policiesSample repayment*Contact information*Withdrawal contacts*Half-time definition*

TemplateOne per session

Counseling Start Page

OptionsWizard—create a new pageEdit—edit existing pageSubmit—Submit page for approval

School logo (insert URL in image box)Type text directly into PagemasterSave changes every 15 minutesLink 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

Student Form

End URL

Display School Logo

Customized start pageAt top of all pages

ProgrammingRename Exit button

Future of OSLC

Reengineering databasePESC Online Loan Counseling standardTEACH Grant exit counselingFinancial literacy counseling?Future releases

Presenter Information

Cathy Mueller, Executive DirectorMapping Your Future(940) 497-0741cathy@mappingyourfuture.org

feedback@mappingyourfuture.org(573) 796-3730

A School’s Perspective

On behalf of CLFE and our membership organizations, we thank

you for the opportunity to present today’s session.