1. Student Access Loan (SAL)
Pennie Strong, Vice President, Student Aid Services
October 5, 2017

2. FY 2018 SAL Budget
2017 GASFAA Fall Workshop

3. SAL Eligibility
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
Cannot be in default on a federal loan or previous SAL
Cannot be delinquent on a previous SAL
2017 GASFAA Fall Workshop

4. SAL Interest Rates and Fee
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
2017 GASFAA Fall Workshop

5. SAL Amounts Loan Amounts
Borrowers attending USG & Private Institutions
$4,000 Per Term Maximum
$8,000 Annual Maximum and $500 Annual Minimum
$36,000 Aggregate limit
Borrowers attending TCSG Institutions
$1,500 Per Term Maximum
$3,000 Annual Maximum, $300 Annual Minimum
$12,000 Aggregate limit
2017 GASFAA Fall Workshop

6. SAL Amounts
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
SAL funds cannot be used to offset a student’s EFC
Less the student’s Expected Family Contribution (EFC)
Less the student’s Expected Financial Aid (EFA) for the award period
2017 GASFAA Fall Workshop

7. SAL Certification
Institutional Authority Regulations FY 2018 Section 5107.
In addition to the eligibility criteria of the SAL Program, Eligible Postsecondary Institutions have the authority to implement institutional policies to decline eligibility of a student for a SAL, or reduce the requested loan amount, for one of the following, but not limited to:
Previous academic history including poor academic performance;
Unusual enrollment history (UEH);
Total amount of previous loan debt;
Direct costs such as tuition, fees, books, etc.
2017 GASFAA Fall Workshop

8. 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
2017 GASFAA Fall Workshop

9. SAL Application Application electronic – on GAfutures
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
2017 GASFAA Fall Workshop

10. 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 2012, 2013, 2014 = annual interest payment
FY present - monthly KIT payment
Applicants who were 60+ days delinquent and make the required payment can be considered in the selection while funds are available
2017 GASFAA Fall Workshop

11. 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 Reports section of SURFER
Once approved the total loan amount cannot be changed (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
FAO can return/refund a full disbursement and request reissue for exact same dollar amount for a later term in same year
2017 GASFAA Fall Workshop

12. SAL Certification Select student name to begin SAL certification
2017 GASFAA Fall Workshop

13. SAL Certification Fields prefilled from SAL applicant responses
2017 GASFAA Fall Workshop

14. SAL Certification COA – EFC – other aid = SAL eligibility amount
Certified amount can be less based on Institutional Authorization and Policy
2017 GASFAA Fall Workshop

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
2017 GASFAA Fall Workshop

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
Delinquency Reports
Borrowers 60+ days delinquent on KIT Payments and Annual Interest Payments
SAL Borrower Reports
SAL Status Report and SAL Contact Report
2017 GASFAA Fall Workshop

17. SAL Borrower Reports
Provides each borrower that has entered Grace or a Repayment status.
Available for future Cohort Years (year borrower entered Repayment).
2017 GASFAA Fall Workshop

18. SAL Borrower Status Report
2017 GASFAA Fall Workshop

19. SAL Borrower Contact Report
2017 GASFAA Fall Workshop

20. SAL Year-End Reconciliation
No Term Reconciliation required for SAL
2017 GASFAA Fall Workshop

21. 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
2017 GASFAA Fall Workshop

22. 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
2017 GASFAA Fall Workshop

23. SAL Delinquent Borrowers and Disbursements
Scheduled Disbursements to be suspended when current year SAL borrowers become delinquent on KIT payments (current or previous year)
PSIs Institutional Administrator will receive a daily of suspended disbursements
If the borrower pays and regains good standing, scheduled disbursements may be released if funds are available
Borrowers must send an to for possible reinstatement after gaining good standing
PSI must send an to to request rescheduling of disbursement
2017 GASFAA Fall Workshop

24. Service Cancellation and Discharge Options
USG and Private Institution borrowers Service Cancellation Options
STEM public school teachers
Public Service in Georgia (state, city, county)
One year full-time service for one year of loan
2013 and 2014 SAL Borrowers still have the option of interest rate reduction through Graduate on Time
1% - completed program of study within required time
6% - completed program of study beyond required time
8% - program of study not completed; no longer enrolled or in default
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 Pathways2gsfa.org
Loan account information
2017 GASFAA Fall Workshop

25. State Loan Programs Cohort Default Rates
Tracking Three Year Cohort Default Rates (CDR) for the State Loan Programs
Student Access Loan, Georgia National Guard (GNG), Scholarship for Engineering Education (SEE), Scholarship for Engineering Education for Minorities (MSEE), Georgia Military College State Service Scholarship and University of North Georgia Military Scholarship
First year release in Fall 2016 was for informational purposes only
Dear Colleague Letter (DCL) released August 31, 2017
Announced the release of this year’s preliminary CDRs
GSFA State Loan Cohort Default Rate Guide
Guide explains SAL requirement
2017 GASFAA Fall Workshop

26. State Loan Programs Cohort Default Rates
Tracking Three Year Cohort Default Rates (CDR) for the State Loan Programs
Annual Process
Sept: Preliminary Cohort Default Rate Report
Sept – Nov: Requests for Status Corrections
By Dec 15: Official Cohort Default Rate Report
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
2017 GASFAA Fall Workshop

27. State Loan Programs Cohort Default Rate Guide
Three Year Cohort Default Rate Formula
See: State Loan Cohort Default Rate Guide
2017 GASFAA Fall Workshop

28. State Loan Programs Cohort Default Rate Guide
Three Year Cohort Default Rate Chart
See: State Loan Cohort Default Rate Guide
2017 GASFAA Fall Workshop

29. State Loan Programs CDR Files
Preliminary and Final File Names
See: State Loan Cohort Default Rate Guide
2017 GASFAA Fall Workshop

30. SAL Cohort Default Rate Requirement
FY 2017 Implementation of SAL CDR Requirements
See: State Loan Cohort Default Rate Guide
2017 GASFAA Fall Workshop

31. Contact GSFC
Pennie Strong 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
2017 GASFAA Fall Workshop