NYSFAAA 43 Annual Conference “Helping Students Catch Their Dreams” October 20, 2011 Christopher Alonzo- MCC Jan Scheutzow- Nazareth College Dorcia Ulysses-Diallo- SUNY Geneseo

 Direct Loan Entrance Counseling ◦ Delivery Options ◦ Counseling Requirements ◦ Best Practices  Direct Loan Exit Counseling ◦ Delivery Options ◦ Counseling Requirements ◦ Best Practices

 Perkins Entrance Counseling ◦ Delivery Options ◦ Counseling Requirements ◦ Best Practices  Perkins Exit Counseling ◦ Delivery Options ◦ Counseling Requirements ◦ Best Practices  TEACH Grant Exit Counseling

D irect Loan Entrance Counseling D irect Loan Entrance Counseling

◦ Must be completed prior to first disbursement of Stafford loans to first-time loan borrowers ◦ May be conducted in person, by audio visual presentation, or by interactive electronic means.    Direct Loan Entrance Counseling brochure ( ◦ School must document completion of counseling

 Comprehensive loan information ◦ Terms and conditions  Current interest rate, grace period, first payment due date ◦ Rights and Responsibilities  Explain the use of the Master Promissory Note ◦ Multi--year feature  Explain interest and capitalization ◦ How interest accrues and is capitalized ◦ Option to pay unsubsidized interest while in school

 Review repayment options ◦ Standard, Extended, Graduated, Income-Based Repayment, Consolidation  Provide sample monthly repayment amounts ◦ Based on average Stafford indebtedness of students at the same school  Stress importance of repayment  Stress repayment is required regardless of educational outcome or employability  Review deferments and forbearance

 Describe consequences of default ◦ Adverse credit, collection costs, ineligible for deferments, seizure of state or federal tax refund, ineligibility of FSA funds  Provide NSLDS information  Provide school contact for questions  Stress importance of keeping the school/servicer informed of name, address, enrollment changes

 Stress importance of good record keeping  Discuss budgeting  Remind borrower of Exit Counseling

 Panel discussion of SUNY, Private and Community Colleges

Direct Loan Exit Counseling Direct Loan Exit Counseling

◦ Must be completed before Stafford and Grad PLUS borrowers graduate, withdraw or drop below ½-time status  Upon withdrawal, must be sent within 30 days ◦ May be conducted in person, by audio visual presentation, or by interactive electronic means    Direct Loan Exit Counseling brochure ( ) ◦ School must document completion of counseling

 Review information from entrance counseling ◦ Consequences of default  Adverse credit, collection expenses, litigation ◦ Importance of repayment obligation  Regardless of dropping out, ability to find a job, or satisfaction with program ◦ Use of Master Promissory Note  Review repayment options ◦ Standard, Extended, Graduated, Income-Based, etc  Review plan features, sample payments, interest charges, total payments  Review option to prepay without penalty and change repayment plans

 Provide an average anticipated repayment amount on: ◦ His/her indebtedness ◦ The average indebtedness of other student borrowers at the same school or in the same program If the student has taken out..Average should be based on students who have borrowed DL Sub/Unsub onlyDL Sub, Unsub only DL Sub, Unsub and Grad PLUS

 Provide loan consolidation information ◦ Effects of consolidation on total interest to be paid, option or prepay the loan or change repayment plans.  Discuss debt management strategies and tax benefits  Review forbearance and cancellation options  Inform student of NSLDS loan information  Inform student of FSA Ombudsman Office

 Ensure borrower understands their rights and responsibilities  Collect and update personal and contact information ◦ Must send to DL Servicing within 60 days of exit  School must document compliance of exit counseling

 Panel discussion of SUNY, Private and Community Colleges

Perkins Entrance Counseling Perkins Entrance Counseling

◦ Must be completed prior to first disbursement of Perkins loans for the award year ◦ May be conducted in person, by audio visual presentation, by interactive electronic means, or by a third party provider   Campus Partners ◦ School must document completion of counseling

 Rights & Responsibilities under Perkins Loan Program  Loan is for educational purposes only  Loan must be repaid and the school holds the MPN ◦ Must notify student the amount of each Perkins disbursement made under the MPN, option to cancel disbursement or the loan  Name & address of school to which debt is owed  Name & address of servicing agent

 Maximum annual and aggregate loan amounts  Effect of accepting Perkins loan on other types of student aid  Total Perkins indebtedness and estimated monthly payment  Perkins consolidation and refinance options

 Notice of Dept. of Defense program for repayment based on certain military service  Complete list of Perkins charges – deducted or paid separately  School will report balance of loan to national credit bureau annually  Collect updated borrower information ◦ Name, address, phone, spouse, employer, references

 Panel discussion of SUNY, Private and Community Colleges

Perkins Exit Counseling Perkins Exit Counseling

 Completed prior to student graduating or drops below ½- time status  May be done in person, in groups, by audiovisual presentation, by interactive electronic means, or by third parties  Upon withdrawal- exit material must be mailed within 30 days of notice of withdrawal

 Disclose pertinent repayment information  Contact information to request a copy of MPN  Contact information for school  Contact information for servicer

 Name and address to whom payments should be sent  Estimated amount owed and repayment begin date  Total interest charges paid per repayment schedule  School must document Perkins exit completion

 Panel discussion of SUNY, Private and Community Colleges

Questions/Comments

 Federal Handbook ◦ Volume 2; 2-80 to 2-84 ◦ Volume 6; 6-62 to 6-63; to 6-113