1. Student Access Loan (SAL)
Pennie Strong
Vice President, Student Aid Services
GASFAA Fall Workshop 2016
Fall 2016

2. Agenda SAL Eligibility Application Certification Disbursements
Repayment Options
Cohort Default Rate
Today I will be providing information on the different programs that are a part of HOPE, the Student Access Loan Program and some other state financial aid programs that are available and administered by GSFC.

3. Georgia Student Finance Authority
FY 2017 SAL Budget
Georgia Student Finance Authority
FY 2017 Budget
Student Access Loan (SAL)
$34,000,000

4. FY 2017 Student Access Loan
Interest Rate: 1% fixed rate for the life of the loan
Default interest rate 5%
Origination fee: 5% of the total loan amount up to $50
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
Loan Amounts
Borrowers attending USG & Private Institutions
$4,000 Per Term Max., $500 Annual Min., $36,000 Aggregate limit
Borrowers attending TCSG Institutions
$1,500 Per Term Max., $300 Annual Min., $12,000 Aggregate limit
Cannot be in default on a federal loan or previous SAL
Cannot be delinquent on a previous SAL

5. FY 2017 Student Access Loan
Eligible Programs: certificate, diploma, bachelor (including a second bachelor) and first professional degree programs at an eligible institution
Students pursuing Graduate coursework are ineligible to receive SAL funds
Must meet Satisfactory Academic Progress and residency requirements
Must exhaust other state and federal aid: scholarships, grants and federal sub & unsub loans at USG & Private Institutions or scholarships and grants at TCSG Institutions
May decline federal and institutional work study

6. SAL Application Annually opens early summer - June
Application selection process first priority consideration
Current HOPE and Zell Miller Scholars and recipients
Prior year SAL recipients, in good standing
Remaining applicants selected on a first-come, first-served basis based on funds available
System checks for FASFA on file with GSFC; if not, cannot proceed
Applicant selects the PSI attending
System directs application based on PSI selected

7. GAfutures SAL Application
Applicant Provides
Initial amount thinking of borrowing
Program of study/major and degree level
Applicant Reviews Loan Counseling Information
Debt, Borrowing, Interest Rate, Default, Repayment Options
Applicant Completes Application
Amount requesting
Demographic information
Applicant receives of instructions and next steps

8. SAL Selection Preliminary eligibility checks Default on federal loans
Default or delinquent on any previous SALs
Citizenship
Selective service
Applicants 60+ days delinquent excluded from selection process
FY present = monthly KIT payment
FY 2012, 2013, 2014 = annual interest payment
Applicants who were 60+ days delinquent and make the required payment can be considered in the selection while funds are available

9. SAL Certification
Selected Applicants ready for certification are reported to selected postsecondary institutions over night if preliminary checks are clear
Applicant List placed in the PSI’s SURFER inbox
Applicant List is in the SAL Information section of SURFER

10. SAL Certification

11. SAL Certification

12. SAL Certification Revision coming soon Note the prefilled items
Note the revised fields to clarify the calculation of need for SAL

13. SAL Certification
SAL funds may be used to cover any part of the student’s Cost of Attendance (COA) for the academic period for which the loan was requested
SAL funds cannot be used for costs over and above the student’s actual COA for the award period
The annual amount that an Applicant may be awarded under the SAL Program at an Eligible USG or Private Postsecondary Institution is the lesser of $8,000 or at an Eligible TCSG Postsecondary Institution is the lesser of $3,000 or the student’s COA for the award period
Less the student’s Expected Family Contribution (EFC)
Less the student’s Expected Financial Aid (EFA) for the award period
A SAL cannot be used to offset a student’s EFC

14. COA EFC All Other Aid SAL Certification SAL Eligibility
(include sub/unsub)
SAL Eligibility
Up to SAL maximum Amount
COA
EFC

15. SAL Certification
Upon completion of the postsecondary certification, borrower receives an containing a link to access important documents
Promissory Note
Self Certification
Loan Disclosure
instructions
Print forms
Notarize 1st page of Prom Note & initial each following page
Complete self-certification form
Forward all pages to GSFA

16. SURFER SAL Reports Status Report Scheduled Disbursements Report
Fields: Certified or Declined Date, Pnote received and approved dates
Scheduled Disbursements Report
Fields: LN, FN, SSN, Certified Date, Guaranty Date, Disbursement Date and Disbursement Amount
Disbursement/Detail Report
Fields: Disbursement Date and Num., Check Num., Gross and Net amounts
Refunds Report
Includes refunded disbursements and canceled disbursements
Delinquency Reports
Borrowers 60+ days delinquent on KIT Payments and Annual Interest Payments
6. Updating reports and coming soon: In Repayment Report

17. SAL Year-end Reconciliation
No Term Reconciliation required for SAL

18. SAL Disbursements Things to Know
Student cannot request a loan amount change
Cannot add on (summer) to an Approved Loan
If FAO has certified and a change is needed, FAO requested change, not student
Approval on a case-by-case basis
The total loan amount cannot be changed on an Approved Loan (Pnote and Disclosure Documents have been received and loan is processed for disbursement)
Disbursement Dates set by the FAO; however, if applicant submits required Pnote and Disclosure Documents late, the first Disbursement Date will be adjusted based on receipt and processing of documents and the required three-day option to change mind
For any disbursement adjustments, FAO provide a notice, to SAL Specialists at allow at least five business days
FAO can return/refund a full disbursement and request reissue for a later term in same year
Consider unmet need

19. SAL Disbursements Coming Soon
Scheduled Disbursements to be held when current year SAL borrowers become delinquent on KIT payments
If the borrower pays and regains good standing, scheduled disbursements may be released if funds are available

20. Borrower Payment Requirements
KIT payment of $10 per month (per loan) 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, notification to borrower
Borrowers Repayment must make a monthly payment (minimum $50)
Methods to submit payments
Online:
Preauthorized draft payment
Online personal banking account
By phone or mail

21. Service Cancellation and Discharge Options
USG and Private Institution borrowers Service Cancellation Options
STEM public school teachers
Public Service in Georgia (state, city, county)
2013 and 2014 SAL Borrowers still have the option of interest rate reduction through Graduate on Time
TCSG Institution borrowers Loan Discharge Option
Graduate from the program of study for which SAL was received with a minimum cumulative 3.50 or higher GPA
Request forms available online
Loan Servicing Dept:

22. State Loan Programs Cohort Default Rates
New
Tracking Three Year Cohort Default Rates for the State Loan Programs
Dear Colleague Letter (DCL) released September 26, 2016 included GSFA State Loan Cohort Default Rate Guide
Release in Fall of 2016 is for information only; Guide explains SAL requirement
Annual Process
Sept: Preliminary Cohort Default Rate Report
Sept – Nov: Requests for Status Corrections
By Dec 15: Official Cohort Default Rate Report

23. State Loan Cohort Default Rate Guide
Mergers of Postsecondary Institutions
When two or more existing PSIs merge, loans made under the surviving institution’s code are the loans for which the institution is held accountable
The loans made under the institutional code no longer surviving will not be included in the surviving institution’s CDR

24. State Loan Cohort Default Rate Guide
Three Year Cohort Default Rate Formula

25. State Loan Cohort Default Rate Guide
Three Year Cohort Default Rate Chart

26. State Loan Cohort Default Rate Guide
Cohort Default Rate Reports provided in SURFER

27. SAL Cohort Default Rate Requirement
FY 2017 Implementation of SAL CDR Requirements

28. Contact Us Pennie Strong pennies@gsfc.org 770.724.9014
Gary Mann
SAL for SAL applicants and borrowers:
SAL for Financial Aid Professionals:
CDR Requests for Status Corrections:
Loan Servicing Dept:
Borrower account & payment website: pathways2gsfa.org
You can also call our 800 number or our Outreach Services with any questions you may have.

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