Student Access Loan Program FY 2016 Pennie Strong Vice President Student Aid Services May 21, 2015

Agenda Regulations Budget Program Requirements Repayment Options Application, Selection and Certification Surfer Reports Year End Reconciliation

FY 2016 Regulations Effective FY 2016 – one SAL Program No separate SALT SAL at eligible USG and private postsecondary institutions SAL at eligible TCSG institutions Selection of applications Priority consideration given to HOPE and Zell Miller (ZM) Scholarship recipients First selection Students with a FY 2015 HOPE or ZM Scholarship invoice 2015 HOPE or ZM GPA from high school Following selections Remaining pool of eligible applications, based on funds available

FY 2016 SAL Program Regulations New loan amounts implemented SAL at eligible USG and private postsecondary institutions Maximum annual award $8,000, not to exceed $4,000 per term SAL at eligible TCSG institutions Maximum annual award $3,000, not to exceed $1,500 per term Repayment period Increased to 15 years (beginning with FY 2016 loans) Service cancellation Georgia Public Service cancellation increased to one year’s loan amount for one of full-time service

FY 2015 & FY 2016 SAL Budget Appropriated Available From Prior Year Total Budget FY2015 $19,000,000 + $10,000,000 $2,936,966 $31,936,966 FY2016 $27,000,000

SAL Default Considerations Reviewing overall and institutional default rates Options being considered Higher Cohort Default Rates could result in ineligibility to participate in the program Require a financial literacy or entrance/exit counseling component Require credit worthiness or a credit worthy cosigner

Loan Requirements Interest rate: 1% fixed for the life of the loan (default interest rate 5%) Origination fee: 5% of the total loan amount up to $50.00 Origination fee deducted from the first disbursement and nonrefundable except in cases of cancellations of the loan If partial refund is made, the origination fee remains $50.00 Postsecondary institutions must provide a notice for any disbursement adjustments or requests for reissue to SAL Specialists at salsfap@gsfc.org within five business days

Loan Requirements Keep In Touch (KIT) payments KIT payment of $10 per month while student is enrolled at least half time (6 or more hours) and in grace period First KIT payment is due approximately 60 days after first disbursement date, email notification to borrower Students in Repayment must make a minimum $50 monthly payment Methods to submit payments: Online via www.pathways2gsfa.org Preauthorized draft payment Online personal banking account By phone or mail

Repayment Options Service Cancellation - Previous years of SAL and FY 2016 at USG and Private Service credit for STEM teachers in the Georgia Public School System Based on each academic year worked Service cancellation may equal up to one year of service credit Not to exceed the original principal amount Must request service cancellation within 12 months of completing the service time Request form is available on website

Repayment Options Service Cancellation – Previous years and FY 2016 at USG and Private Service credit for full time Public Service employees in Georgia Must be a full-time employee at least 275 days during the state fiscal year Not to exceed the original principal amount Request within 12 months of completing the qualifying term of service Service cancellation FY 2016 may equal up to one year of service credit Service cancellation prior to FY 2016 may equal up to $750 Request form is available on website

SAL Repayment Options 2013 and 2014 SAL borrowers - Graduate On Time interest rate reduction still available 1% fixed interest rate if graduate within the designed length of program 6% fixed interest rate if graduate within one year beyond the designed length of program 8% fixed interest rate if graduate beyond one year (or a non-graduate) after the designed length of program Request form with official transcript to be submitted within 6 months of graduation Request form is available on website

SAL Repayment Options Loan discharge – FY 2015 and 2016 at TCSG institutions Graduate from the program of study for which SAL-TCSG (FY 2016) and SALT (FY 2015) was received with a minimum cumulative 3.5 or higher GPA Request form with official transcript to be submitted within 6 months of graduation Request form is available on website

SAL Communications SAL Salprogram@gsfc.org student/borrower email Emails continue to be main communication unless student opts out After 60 days late on any payment, letter mailed SAL – TCSG Salt@gsfc.org student/borrower email Emails continue to be main communication unless student opts out After 60 days late on any payment, letter mailed salsfap@gsfc.org Financial Aid Professionals’ email to go directly to all the Origination & Disbursement SAL Specialists

FY 2016 SAL - USG and Private PSIs New loan amounts $8,000 annual maximum $4,000 per term limit $36,000 aggregate limit $500 annual minimum (no change) Eligible programs - certificate, associate, baccalaureate (including a second bachelor) or a first professional degree program at an eligible USG or Private institutions Must meet satisfactory academic progress and residency requirements Must exhaust other state and federal scholarships, grants and loans May decline federal and institutional work study

FY 2016 SAL - TCSG Institutions Loan amounts $3,000 Annual Maximum, $300 Mininum and $12,000 Aggregate limit New $1,500 per term limit Eligible programs - certificate, diploma, and associate degree at an eligible TCSG postsecondary institution Must meet satisfactory academic progress and residency requirements Must exhaust all other state and federal scholarships and grants May decline federal loans or federal and institutional work study

SAL Application Process Online Application submitted through website System checks 2015-16 FAFSA in GSFC system Cannot proceed without a FAFSA on file SAL Borrowers that have reached the aggregate loan limit No longer eligible message provided

SAL Application Process Applicant selects the postsecondary institution attending System directs to the appropriate application Each application looks very similar to include: 10 SAL definitions and 11 SAL true/false statements Sample Disclosure Application Primary and secondary phone numbers Permission to text New - opt out option (of electronic communications) If does not opt out, applicant will receive email communications and link to documents If opt out, applicant will receive paper communications and mailed documents

Applications Online FAFSA Check Select School 10 Loan Definitions 11 True/False Statements Application Disclosure Statement

SAL Selection Process Application preliminary eligibility process Default or delinquent status on any loans including previous SALs Delinquent on KIT payments Delinquent or in default on annual interest payments Delinquent or default on repayment excluded from selection consideration, if make payments to be in good standing can be considered in future selection Errors with name, SSN, selective service, default on federal loans per FAFSA information

SAL Selection Process Selection cycle 1 Selection Cycle 2 HOPE and Zell Miller Scholarship recipients Received HOPE or ZM Scholarship FY 2015 (invoice record) Determined eligible for HOPE or ZM Scholarship based on 2015 high school HOPE record Selection Cycle 2 Random selection Any HOPE or ZM Scholarship applicants not in Selection 1 Remaining pool of applicants A second selection cycle will be based on funds available

FY 2016 Application and Selection Cycle Application Cycle 1: Early June to July 30, 2015 Will be open every day during Cycle 1 An additional application cycle would be determined based on funds Selection Cycle Priority Given Selection Dates Application Deadline Dates 1 Hope and Zell Miller Scholarship Recipients July 7 11:59 PM, July 1 2 Open August 4 11:59 PM, July 30

SAL Selection Process Selected Applications ready for certification are reported to selected institutions in SURFER Applicant file is placed in the SURFER inboxes Applicant list is placed in the SAL reports section of SURFER Loan start and end date is prefilled Loan Period – July 15, 2015 to June 22, 2016

FY 2016 SAL Processing Deadlines and Timeframes Sept 30 - deadline to certify or decline loan application Oct 2 - applications not certified or declined will be administratively canceled Applicants have 14 days from receipt of prom note email or mail to submit the prom note packet Oct 15 - all prom note packets should be received Oct 20 - certified loan applications with no prom note packet received will be administratively canceled November - determine if additional funds are available for another selection

SAL Program Items Things to Know Student cannot request a loan amount change Cannot add on (summer) to an approved loan If the FAO needs a change to the certified loan, the FAO must contact GSFC, not the student Approval on a case by case basis and funds available Total loan amount cannot be changed on an approved loan Promissory Note and Disclosure Documents have been received and loan is processed for disbursement Disbursement dates set by the FAO First disbursement date will be adjusted if applicant submits required Promissory Note and Disclosure Documents late, based on receipt and processing of documents and the required 3 day option to change mind FAO can return a full disbursement and request reissue for a later term in same year by sending an email request

SURFER SAL Reports Applicant status report List each applicant selected for your school Fields: Certified or declined date, Promissory Note received and approved dates Scheduled disbursements report Fields: Last name, first name, SSN, certified date, guaranty date, disbursement date and disbursement amount Disbursement/reconcile report Fields: Disbursement date and number, check number, gross and net amounts Refunds report Includes refunded and canceled disbursements

SURFER SAL Reports New - Delinquency and Default SAL borrowers reports Delinquent on annual interest (FY 2012-2014 borrowers) Delinquent on KIT payments (FY 2015 and 2016 borrowers) Defaulted any year Reports will be available to run in SURFER Reports are based on statuses as of approximately the 15th of each month

SURFER - SAL Year-End Reconciliation Screen SAL FY 2016 Year -End Reconciliation due July 15 Total Disbursements Amount Refunded for the current year

Email for students/borrowers Email for Financial Aid Professionals Contact Us Email for students/borrowers SAL: salprogram@gsfc.org SAL-TCSG: salt@gsfc.org Email for Financial Aid Professionals salsfap@gsfc.org Gary Mann garym@gsfc.org 770-724-9039

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