1. Student Access Loan Program FY 2017
Pennie Strong
Vice President
Student Aid Services
GASFAA Conference
June 2, 2016
9/16/2018
2016 GASFAA Conference

2. Agenda Budget Regulations Application and Selection Process
Loan Requirements
Repayment Options
SURFER Reports
Year End Reconciliation
9/16/2018
2016 GASFAA Conference

3. FY 2016 & FY 2017 SAL Budget FY Appropriated Available From Prior Year
Total Budget
FY2016
$27,000,000
$1,553,000
$28,553,000
FY2017
$7,000,000 Approximately
$34,000,000
9/16/2018
2016 GASFAA Conference

4. FY 2017 SAL Regulations Selection of applications
Priority consideration given to applicants:
HOPE and Zell Miller Scholarship recipients
New: FY 2016 SAL recipients in good standing
First selection is the Priority Group
Selection First Come, First Served
Clarified Post Baccalaureate coursework other than for a First Professional Degree program is not allowed
9/16/2018
2016 GASFAA Conference

5. FY 2017 SAL Regulations
Revised “Defaulted Loan or Refund Due” section of each regulation to distinguish between the resolution of default status for federal loans and Georgia loans
Federal default status may be cleared in five ways:
New: satisfactory repayment plan as resolution for a federal defaulted loan
Completing an acceptable rehabilitation plan
Having the loan repurchased by the original lender and the default status reversed
Consolidating the loan out of a default status
Receiving an approved Title IV debt settlement, to include a compromised settlement
State default status may be cleared:
Paid in Full
9/16/2018
2016 GASFAA Conference

6. SAL Application Process
Online Application submitted through website
System checks
Name, SSN, DOB
FAFSA is completed & GSFC has an ISIR
Cannot proceed without a FAFSA on file
SAL Borrowers that have reached the aggregate loan limit
9/16/2018
2016 GASFAA Conference

7. SAL Application Process
Applicant selects the postsecondary institution attending
System directs to the appropriate application
Each application looks very similar to include:
New - Entrance Counseling Information to be confirmed it was read
Sample Disclosure
Application
Primary and secondary phone numbers
Permission to text
Opt out option (of electronic communications)
If does not opt out, applicant will receive communications and link to documents
If opt out, applicant will receive paper communications and mailed documents
9/16/2018
2016 GASFAA Conference

8. SAL Application Online
FAFSA Check
Select PSI
Entrance Counseling
Request Amount to Borrow
Application
Disclosure Statement
9/16/2018
2016 GASFAA Conference

9. FY 2017 SAL - USG and Private PSIs
Loan amounts
$8,000 annual maximum
$4,000 per term limit
$36,000 aggregate limit
$500 annual minimum
Eligible programs
Certificate, associate, baccalaureate (including a second bachelor) or a first professional degree program
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
9/16/2018
2016 GASFAA Conference

10. FY 2017 SAL - TCSG Institutions
Loan amounts
$3,000 annual maximum
$1,500 per term limit
$12,000 aggregate limit
$300 annual minimum
Eligible programs
Certificate, diploma, and associate degree
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
9/16/2018
2016 GASFAA Conference

11. FY 2017 SAL Application and Selection Process
Application Cycle remains open based on funds available
New: Selections are not done on a given date(s)
Selection on First Come, First Served Basis
Selection will be preformed daily
Basic Steps
Student applies and receives an as receipt of the application
Application goes through preliminary eligibility check
Application is selected and pushed to SURFER
PSI certifies or denies the loan application
Student is ed link to Promissory Note & Self Certification or ed of denial
Student submits the Promissory Note & Self Certification
GSFA approves the loan
Funds are disbursed to the PSI
9/16/2018
2016 GASFAA Conference

12. FY 2017 SAL Application and 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
Selection processing overnight
Applications with no errors and in good standing are selected and pushed to SURFER overnight
Application with errors are processed by staff, if cleared, selected and pushed the SURFER the next night
9/16/2018
2016 GASFAA Conference

13. FY 2017 SAL Application and Selection Process
FY 2017 first three weeks selection for Priority Group
HOPE and Zell Miller Scholarship recipients
Received HOPE or ZM Scholarship FY 2016 (invoice record)
Determined eligible for HOPE or ZM Scholarship based on 2016 high school HOPE record
FY 2016 SAL Borrowers in good standing
After the first three weeks
Remaining applications processed on a first come, first served basis
Selection processing preformed overnight
9/16/2018
2016 GASFAA Conference

14. FY 2017 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
New: Certify or Deny the loan application within 40 days or it is Administratively Canceled
The 40 day deadline will be posted next to the applicant’s name
Loan start and end date is prefilled
Loan Period – July 15, 2016 to June 22, 2017
9/16/2018
2016 GASFAA Conference

15. FY 2017 SAL Selection Process
Applicants have 14 days from receipt of promissory note or mail to submit the promissory note packet
GSFA will administratively canceled an application
After 40 days if the application is not certified or denied by the PSI
After 14 days if the applicant has not submitted the promissory note packet
9/16/2018
2016 GASFAA Conference

16. 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 full loan
If partial refund is made, the origination fee remains $50.00
Postsecondary institutions must give at least a five business day notice to SAL Specialists at for any disbursement adjustments or requests for reissue
9/16/2018
2016 GASFAA Conference

17. 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, notification to borrower
Students in Repayment must make a minimum $50 monthly payment
Methods to submit payments:
Online via
Preauthorized draft payment
Online personal banking account
By phone or mail
9/16/2018
2016 GASFAA Conference

18. Repayment Options
Service Cancellation - Previous years of SAL and FY 2017 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
9/16/2018
2016 GASFAA Conference

19. Repayment Options
Service Cancellation – Previous years and FY 2017 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 and 2017 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
9/16/2018
2016 GASFAA Conference

20. 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
9/16/2018
2016 GASFAA Conference

21. Repayment Options
Loan discharge – FY 2015 and after 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
9/16/2018
2016 GASFAA Conference

22. SAL Communications SAL Salprogram@gsfc.org student/borrower email
s continue to be main communication unless student opts out
After 60 days late on any payment, letter mailed
SAL – TCSG
student/borrower
s continue to be main communication unless student opts out
After 60 days late on any payment, letter mailed
Financial Aid Professionals’ to go directly to
all the Origination & Disbursement SAL Specialists
9/16/2018
2016 GASFAA Conference

23. 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 request
9/16/2018
2016 GASFAA Conference

24. SAL Default Considerations
Reviewing overall and institutional cohort default rates
Plan to provide institutional rates during FY 2017
Options being considered
Higher Cohort Default Rates could result in ineligibility to participate in the program
Require a default management plan, financial literacy or entrance/exit counseling component
9/16/2018
2016 GASFAA Conference

25. 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
9/16/2018
2016 GASFAA Conference

26. SURFER SAL Reports Delinquency and Default SAL borrowers reports
SAL Default Report
SAL Delinquency Report
SAL KIT Delinquent Report payments (began FY 2015)
Reports are based on statuses as of approximately the 15th of each month
Borrowers should check status of previous loans: pathways2gsfa.org
Loan Servicing:
Mailed a loan packet while in grace period
Mailed a notice when 60 days late
9/16/2018
2016 GASFAA Conference

27. SURFER - SAL Year-End Reconciliation Screen
Year-End Reconciliation due July 15
Total Disbursements
Amount Refunded for the current year
9/16/2018
2016 GASFAA Conference

28. Email for students/borrowers Email for Financial Aid Professionals
Contact Us
for students/borrowers
SAL:
SAL-Technical:
for Financial Aid Professionals
Gary Mann
Pennie Strong
9/16/2018
2016 GASFAA Conference