Report from KHEAA

FY 2004 was a tremendous year in our efforts to make higher education more accessible for Kentucky students. Thanks to the assistance and support of our school and lender partners, KHEAA disbursed $148 million in need-based grants, scholarships, and work-study wages (more than double the amount disbursed in FY 2001) and guaranteed $951 million in Federal Family Education Loans. The Student Loan People contributed $3 million for additional state student aid awards and saved borrowers $14.7 million through its BestStart, Best in Class, and Best in Care benefits programs. Updates on 2005 activities follow.

• 2005 CAP and KTG Offers
  KHEAA made College Access Program (CAP) Grant offers to 58,216 financially needy applicants for the 2004-2005 academic year before funds were depleted in July. The maximum CAP Grant award is $1,400 for 2004-2005. KHEAA made 21,739 Kentucky Tuition Grant (KTG) offers through August 19. The maximum KTG award is $2,600 for 2004-2005. An additional $2 million from The Student Loan People made it possible for KHEAA to make awards for one week longer than in 2003-2004.
  
  
• Kentucky’s Affordable Prepaid Tuition (KAPT)
  KAPT governance reverted from KHEAA to the KAPT Board of Directors on July 1, 2004; however, KHEAA will continue daily administration of the program.
  
  The KAPT Board of Directors met on July 12 and voted to reopen KAPT for enrollment from August 23 through December 13, 2004, and include a 7.5% actuarial premium in contract prices.
  
  KAPT’s first class of beneficiaries entered college during the fall term. KAPT expects approximately 150 students to use KAPT benefits during the 2004-2005 academic year.
  
  
• Kentucky Education Savings Plan Trust (KESPT)
  The Board recently approved continuation of the KESPT management agreement with TIAA-CREF Tuition Financing, Inc. based on its scandal-free reputation as a program manager and administrative costs that are among the lowest in the nation. KESPT has year-round enrollment. Disbursements for academic year 2004-2005 are expected to total $1.7 million for 500 students.
  
  
• New Borrower Benefits
  The Student Loan People are offering two new borrower benefits for Consolidation Loans effective for the 2004-2005 academic year—a 1% interest rate reduction after 30 consecutive, on-time payments and a .25 interest rate reduction for borrowers who use ACH payments.
  
  
• Regional Outreach
  The number of outreach staff increased to 9 and significantly expanded outreach compared to FY 2003. Student/parent contacts increased 45%, media interviews increased 60%, presentations increased 26%, exhibits increased 72%, and on-site visits increased 81%.
  
  
• Go Higher Web Portal
  GoHigherKY.org, a central point of contact for all information about postsecondary education in Kentucky, is now operational. This online resource will serve students from middle school through college, parents, adults who want to return to school, middle and high school counselors, and college admissions and financial aid officers.
  
  

  Students can compile an academic portfolio to track their achievements and progress and use that information to meet college entrance requirements. GoHigherKY will guide students through the entire college preparation experience, from early planning and choosing a school to the application process. GoHigherKY will allow students to apply to colleges electronically and pay the required fees by check, credit card, or fee waiver. Students and parents can get an EFC estimation of their FAFSA results. Students can also autopopulate the FAFSA on the Web with their profile data, cutting down on data entry errors, and search the scholarship database with more than $4 billion in awards. All services are free.

  GoHigherKY also offers many benefits to schools?free online application, increased visibility, and cost savings on applications and transcripts.

  Electronic transcripts and Individual Graduation Plans (IGPs) will be part of the second phase of implementation targeted for spring 2005.