Session C-04 TEACH Operational and Processing Information: Part Two (Servicing) Lisa DiCarlo Cynthia Battle U.S. Department of Education

2 TEACH Servicing Calendar Exit Counseling Website Implemented Winter 2008 Spring 2009 Notice of Disbursement Reporting Booking Quarterly Statements Converting Teach Grant into Direct Unsubsidized Loan (TEACH) Discharging TEACH Grant Service obligations Program Overawards

3 Conversion to Loan In School Separation/ Tracking Reporting Financials (Program Overaward) Exit Counseling Maintaining Grant Conversion Triggers Servicing TEACH Grants

4 In School (Communication) Disclosure statement Notice of disbursement (Welcome Letter) Quarterly statements

5 Disclosure Statement Upon acceptance of an origination record the COD system generates a TEACH Grant disclosure statement for the student

6 Notice of Disbursement Once the COD system has an accepted ATS, origination record, actual disbursement record for initial disbursement, the TEACH Grant award is sent to DLSS Student receives TEACH Grant Notice of Disbursement generated by DLSS

7 Quarterly Statements On a quarterly basis, DLSS generates a statement notifying recipients of awarded grant amounts and interest accrual if converted to a Direct Unsubsidized Loan (TEACH)

8 Conversion to Loan In School Separation/ Tracking Reporting Financials (Program Overaward) Exit Counseling Maintaining Grant Conversion Triggers Servicing TEACH Grants

9 Separation/Tracking Grant-to-Loan start date will be set as the separation date plus one (1) day Grant-to-Loan end date will be set as eight (8) years from the Grant-to-Loan start date

10 Will the recipient have to certify annually while in-school? If…Then… A new grant is received No need for certification No grant is receivedA certification will be sent to the recipient

11 Upon Graduation The recipient must self-certify annually, committing to continue participation within the TEACH Grant Program

12 Once employed as a teacher Servicing will collect evidence of employment (Documentation of Service) each academic year of service that the TEACH Grant recipient fulfills

13 Documentation of Service Upon completion of each academic year of service, recipient must submit documentation of the service in the form of a certification by chief administrative officer of the school using a form approved by the Department of education If the certification form is not received…

14 Convert into a Direct Unsubsidized Loan (TEACH) Follow Up Request Final Request and Warning

15 Tracking Servicing will track academic year, subject, and school that a TEACH Grant recipient fulfills toward his/her obligation

16 Conversion to Loan In School Separation/ Tracking Reporting Financials (Program Overaward) Exit Counseling Maintaining Grant Conversion Triggers Servicing TEACH Grants

17 Reporting - NSLDS

18 Reporting – Credit Bureaus If recipient has a… Then… TEACH GrantIt is not reported to the credit bureaus Converted Direct Unsubsidized Loan (TEACH) It will be reported to the credit bureaus

19 Conversion to Loan In School Separation/ Tracking Reporting Financials (Program Overaward) Exit Counseling Maintaining Grant Conversion Triggers Servicing TEACH Grants

20 Financials Program Overaward (POVR) Schools will follow the same process in place for Pell Grant Overawards CSB DMCS will accept and store with unique identifiers for TEACH Grant POVRs

21 Financials Servicing will receive notification from CSB DMCS when a TEACH Grant POVR is received along with the amount of the overpayments Updated reporting of the TEACH Grant amount will be provided to NSLDS

22 Conversion to Loan In School Separation/ Tracking Reporting Financials (Program Overaward) Exit Counseling Maintaining Grant Conversion Triggers Servicing TEACH Grants

23 Exit Counseling Spring 2009 completion (online) Will include information regarding the terms and conditions of the TEACH Grant service agreement Counseling must occur within 30 days of separation

24 Exit Counseling Will describe the circumstances under which a TEACH Grant can be converted into a Direct Unsubsidized Loan (TEACH) -How it cannot be converted back into a grant -The consequences of loan default -Repayment options -Review the conditions for which deferments and forbearances can be granted

25 Conversion to Loan In School Separation/ Tracking Reporting Financials (Program Overaward) Exit Counseling Maintaining Grant Conversion Triggers Servicing TEACH Grants

26 Maintaining Grant Life circumstances Meeting service obligations Payments while in grant status

27 Life Circumstances Enrollment in another TEACH Grant- eligible program (example: Graduate program) Call or order to active duty status for more than 30 days in connection with a war, military operation, or national emergency

28 Life Circumstances Birth of a son or daughter A serious health condition that makes the recipient unable to perform the functions of the position One of the following conditions covered by the Family and Medical Leave Act of 1993

29 Life Circumstances Tracking of the obligation period will be granted in one-year increments, but cannot exceed three years or in the case of military suspension, will end upon completion of the military service

30 Life Circumstance Recipient must apply to Life Circumstance tracking suspension within six months of completing or ceasing the TEACH Grant- eligible program or if they have started teaching, within six months of the date that they have stopped teaching Servicing will report the application of life circumstance tracking suspensions to NSLDS

31 Meeting Service Obligations Grant recipient must serve as a full-time teacher for a total of 4 academic years within 8 years of completing school Grant recipient must teach in a federally designated low- income school

32 Designated teaching fields Grant recipient will teach in one of the following fields: –Math –Science –A foreign language –Bilingual education –Special education –Reading specialist –Another field documented as high need

33 Payments while in Grant Status Servicing will NOT apply payments for TEACH Grants while in grant status If a payment is received specifically directed to a TEACH Grant, CSB Servicing will: –NOT apply the payment to any other loans that the recipient might have –Send a notification to the grant recipient informing him/her that payments cannot be applied to TEACH Grants while in grant status

34 Payments while in grant status If grant recipient makes payments within 120 days of the disbursement of a TEACH Grant –the payment will be processed as a cash cancellation –COD will be notified of the adjustment and increase their eligibility by the same amount

35 Conversion to Loan In School Separation/ Tracking Reporting Financials (Program Overaward) Exit Counseling Maintaining Grant Conversion Triggers Servicing TEACH Grants

36 Conversion Triggers Requests conversion Fails to certify within 120 days of ceasing enrollment prior to completing program. Fails to certify annually his/her intention to satisfy service agreement Fails to begin or maintain qualified employment When the TEACH Grant recipient…

37 Conversion to Loan In School Separation/ Tracking Reporting Financials (Program Overaward) Exit Counseling Maintaining Grant Conversion Triggers Servicing TEACH Grants

38 Conversion to Loan A TEACH Grant will convert into a Direct Unsubsidized Loan (TEACH) when a recipient fails or refuses to carry out their service obligation –Recipient will enter repayment upon conversion of the grant to a Direct Unsubsidized Loan (TEACH)

39 When Converted Capitalization of unpaid interest will occur on the date entering repayment PLUS 6 months (to provide the recipient an opportunity to pay the interest prior to capitalization)

40 Questions? Conversion to Loan In School Separation/ Tracking Reporting Financials (Program Overaward) Exit Counseling Conversion Triggers Maintaining Grant Servicing TEACH Grants

41 Thank You! We appreciate your feedback and comments. Lisa DiCarlo Director, Direct Loan Operations (202) Cynthia Battle (202) Contact Information