Canadian Government Student Aid Best Practices Presented by Cara Piperni ANZFAA Melbourne, Vic. October, 2014

Agenda Streamlined processes & systems Your key interactions Services and financial literacy

YOUR KEY INTERACTIONS WITH GOVERNMENT OR STUDENTS

Being a Designated School

Program Recognition Program of Study – Start and End Date for academic year – Number of Years for on-time completion – Costs

Determining Residency A student may need help determining which province to apply through In general – A Canadian citizen, a permanent resident of Canada or designated as a protected person – The province/territory where they are considered a permanent resident

Need assessment: If you think it’s complicated, it’s utterly baffling to students! Ref: It’s Complicated: An Interprovincial Comparison of Student Financial Aid by Jordon MacLaren, July 2014

Need Assessment Determination of a students need Allowable Cost – Resources = Assessed Need Direct students to Estimators/Calculators Calculation of federal and provincial portions, as applicable Student may need assistance understanding methods of appeal / recognition of Special Circumstances

Confirmation of Enrolment For a particular student, who is receiving aid – Year of study – Course Load – Changes in Cost Continuation of interest-free status for a particular student – With previous loans but no new aid

After-the-fact verification Report any changes for a particular student – Typically following add/drop registration period – Necessitates knowledge of how was originally reported on COA/COR Very important: – dropping under 60% course load – Any concern about a student

Satisfactory Academic Program Based on year of study reported by student If not SAP, may need an academic plan submitted

SERVICES TO STUDENTS & FINANCIAL LITERACY

Reporting Resources Student errors or misrepresentation can have a devastating impact Also, urge student to be informed about how/if to report any scholarship and need-based aid received by institution

Tools and Services Estimators/calculators NSLSC On-Line Services (integrated loans) – From CanLearn website – Status and balance of loans, transaction history – Customize repayment, get repayment assistance – Includes a secure online mailbox to reduce paper mailing and/or attachments to unsecure addresses – Big push for student adoption

Why use Government Sponsored Loans? Not charged interest while in school Do not have to repay grants Do not have to make payments for 6 months after leaving school Can may payments without penalty There are programs designed to assist with repayment Interest on government loans is tax deductible

Loan Repayment Loan consolidation Consolidation letter, options Loan Repayment Estimator (CanLearn) How to save money Serious consequences of missing a loan repayment Avoiding repayment difficulties

Best option: Repayment Assistance If qualify, affordable payment is calculated based on income and family size Payment could be lowered or put on hold Must apply every 6 months thru NSLSC Also: Revision of Terms (all borrowers) Interest-only payments, or adjusting term up to max 174 months (14.5 years)

Common Debt Regrets Not applying for government aid on time Not maintaining a full course load Paying off government loans before credit card/line of credit Consolidating government loans with consumer debt Taking time off school to work/save Not filing income tax returns Defaulting on government loans

Financial Wellness One-on-one Counseling – Budget management – Debt management Financial Literacy – Frugal Scholar Toolkit – Student Ambassadors – Workshop series

THANK YOU! Cara Piperni Director, Scholarships & Student Aid McGill University