1. Student Access Loan Program FY 2016
Pennie Strong
Vice President
Student Aid Services
May 21, 2015

2. Agenda Regulations Budget Program Requirements Repayment Options
Application, Selection and Certification
Surfer Reports
Year End Reconciliation

3. FY 2016 Regulations Effective FY 2016 – one SAL Program
No separate SALT
SAL at eligible USG and private postsecondary institutions
SAL at eligible TCSG institutions
Selection of applications
Priority consideration given to HOPE and Zell Miller (ZM) Scholarship recipients
First selection
Students with a FY 2015 HOPE or ZM Scholarship invoice
2015 HOPE or ZM GPA from high school
Following selections
Remaining pool of eligible applications, based on funds available

4. FY 2016 SAL Program Regulations
New loan amounts implemented
SAL at eligible USG and private postsecondary institutions
Maximum annual award $8,000, not to exceed $4,000 per term
SAL at eligible TCSG institutions
Maximum annual award $3,000, not to exceed $1,500 per term
Repayment period
Increased to 15 years (beginning with FY 2016 loans)
Service cancellation
Georgia Public Service cancellation increased to one year’s loan amount for one of full-time service

5. FY 2015 & FY 2016 SAL Budget Appropriated Available From Prior Year
Total Budget
FY2015
$19,000, $10,000,000
$2,936,966
$31,936,966
FY2016
$27,000,000

6. SAL Default Considerations
Reviewing overall and institutional default rates
Options being considered
Higher Cohort Default Rates could result in ineligibility to participate in the program
Require a financial literacy or entrance/exit counseling component
Require credit worthiness or a credit worthy cosigner

7. 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 loan
If partial refund is made, the origination fee remains $50.00
Postsecondary institutions must provide a notice for any disbursement adjustments or requests for reissue to SAL Specialists at within five business days

8. 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. Repayment Options
Service Cancellation - Previous years of SAL and FY 2016 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

10. Repayment Options
Service Cancellation – Previous years and FY 2016 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 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

11. SAL 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

12. SAL Repayment Options
Loan discharge – FY 2015 and 2016 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

13. 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

14. FY 2016 SAL - USG and Private PSIs
New loan amounts
$8,000 annual maximum
$4,000 per term limit
$36,000 aggregate limit
$500 annual minimum (no change)
Eligible programs - certificate, associate, baccalaureate (including a second bachelor) or a first professional degree program at an eligible USG or Private institutions
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

15. FY 2016 SAL - TCSG Institutions
Loan amounts
$3,000 Annual Maximum, $300 Mininum and $12,000 Aggregate limit
New $1,500 per term limit
Eligible programs - certificate, diploma, and associate degree at an eligible TCSG postsecondary institution
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

16. SAL Application Process
Online Application submitted through website
System checks
FAFSA in GSFC system
Cannot proceed without a FAFSA on file
SAL Borrowers that have reached the aggregate loan limit
No longer eligible message provided

17. SAL Application Process
Applicant selects the postsecondary institution attending
System directs to the appropriate application
Each application looks very similar to include:
10 SAL definitions and 11 SAL true/false statements
Sample Disclosure
Application
Primary and secondary phone numbers
Permission to text
New - 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

18. Applications Online FAFSA Check Select School 10 Loan Definitions
11 True/False Statements
Application
Disclosure Statement

19. SAL 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

20. SAL Selection Process Selection cycle 1 Selection Cycle 2
HOPE and Zell Miller Scholarship recipients
Received HOPE or ZM Scholarship FY 2015 (invoice record)
Determined eligible for HOPE or ZM Scholarship based on 2015 high school HOPE record
Selection Cycle 2
Random selection
Any HOPE or ZM Scholarship applicants not in Selection 1
Remaining pool of applicants
A second selection cycle will be based on funds available

21. FY 2016 Application and Selection Cycle
Application Cycle 1: Early June to July 30, 2015
Will be open every day during Cycle 1
An additional application cycle would be determined based on funds
Selection Cycle
Priority Given
Selection Dates
Application Deadline Dates 1
Hope and Zell Miller Scholarship Recipients
July 7
11:59 PM, July 1 2
Open
August 4
11:59 PM, July 30

22. 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
Loan start and end date is prefilled
Loan Period – July 15, 2015 to June 22, 2016

23. FY 2016 SAL Processing Deadlines and Timeframes
Sept 30 - deadline to certify or decline loan application
Oct 2 - applications not certified or declined will be administratively canceled
Applicants have 14 days from receipt of prom note or mail to submit the prom note packet
Oct 15 - all prom note packets should be received
Oct 20 - certified loan applications with no prom note packet received will be administratively canceled
November - determine if additional funds are available for another selection

24. 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

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

26. SURFER SAL Reports New - Delinquency and Default SAL borrowers reports
Delinquent on annual interest (FY borrowers)
Delinquent on KIT payments (FY 2015 and 2016 borrowers)
Defaulted any year
Reports will be available to run in SURFER
Reports are based on statuses as of approximately the 15th of each month

27. SURFER - SAL Year-End Reconciliation Screen
SAL FY 2016 Year -End Reconciliation due July 15
Total Disbursements
Amount Refunded for the current year

28. Email for students/borrowers Email for Financial Aid Professionals
Contact Us
for students/borrowers
SAL:
SAL-TCSG:
for Financial Aid Professionals
Gary Mann

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