OCTOBER
2006 |
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| Agency Liaison Report Summary of Activities Code Number PP 6.174 - Request up-to-date information from each agency and prepare a report for the SASFAA Board. The liaison is responsible for maintaining a list of agency contacts and addresses and for passing the information to the liaison's successor. Activity: Made initial e-mail request to state agency contacts on June 29; Sent reminder e-mail on July 26; Updated contact list by adding Ed Cunningham, new KHEAA Executive Director. Code Number GAP80 - Continue use of NCHELP and NASSGAP reports to be included in committee reports and ask State Presidents for help in obtaining state agency reports for board meetings so that every state can be guaranteed to be represented. Activity: Requested reports from NCHELP and NASSGAP; Copied State Presidents on e-mails to agency contacts Discussion The following reports were submitted: Agency Liaison While all program participants have been focusing on implementation of the Higher Education Reconciliation Act of 2005, reauthorization of the Higher Education Act is still an outstanding issue. On June 30, President Bush signed H.R. 5603 which extended the Higher Education Act through September 30, 2006. The House of Representatives has already passed its version of reauthorization in the form of H.R. 609, the College Access and Opportunity Act of 2006. However, the Senate has not taken action on a reauthorization bill and is not expected to do so until September. Given the limited number of legislative days left on the calendar before mid-term elections, it is far from certain that the Senate will deal with reauthorization at all. With all the attention on HERA, the provisions of H.R. 609 have not received a great deal of attention. However, there are several loan provisions in this bill that would affect program participants including:
Several other provisions would have a major effect on schools in particular, including:
The Common Manual, typically published each July, will instead be printed in September to accommodate new policies relating to HERA. Development is continuing on a Common Manual web site with the launch date is targeted for September-October. National Association of State Student Grant and Aid Programs (NASSGAP) No report submitted. National Council of Higher Education Loan
Programs (NCHELP) Included in the Deficit Reduction Act of 2005 was a commitment by Congress to increase access to higher education. The College Access Initiative formalizes a traditional role of guaranty agencies in promoting access to higher education and requires that they make available to the public a comprehensive listing of the postsecondary education opportunities, programs, publications and services available in their designated states. A work group of representatives from the nation's 36 guaranty agencies has been developing an implementation plan to fulfill these requirements. The group, chaired by Steven Brooks, Executive Director of the North Carolina State Education Assistance Authority, is working with organizations including the National College Access Network (NCAN), Pathways to College Network and NASFAA to develop guidelines and resources that can be used by agencies interested in expanding their outreach activities and reaching a broader number of students, families and organizations. These efforts also tie in with a broader NCHELP access effort to involve the entire membership in sharing information about best practices and working together with partners such as SASFAA. As part of their public service mission, guaranty agencies provide an extensive range of services and programs to increase awareness of the importance of higher education, the opportunities available and the financial support offered. They make efforts to reach students and families at every stage of their education life-cycle - from programs designed for elementary school students to tools aimed at workers seeking new skills. Two key areas where guaranty agencies contribute to raising awareness and increasing access to higher education are in the resources and training they provide, and the targeted services and funding they offer to underserved students. Resources and Training to Increase Awareness Several agencies have regional offices and staff that engage in outreach initiatives to schools and community agencies across the state. They work with elementary, middle and high school students, parents, teachers and counselors to promote early awareness of college opportunities, financial aid support and financial literacy. They participate in career fairs and FAFSA completion events and place special emphasis on working with schools that serve low-income families. One guaranty agency reported providing 2,800 low-income first-generation students with monthly counseling and presentations last year. Another agency conducted 75 college enrollment workshops, serving 140,000 students and 30,000 parents. Many agencies operate and fund college resource centers that provide students and families with hands-on assistance in navigating all of the hoops required to pursue a college education. To introduce students to what college life has to offer and inspire them to pursue their educational goals, several agencies host day-long workshops on a local college campus. Targeting Services to Students Most in Need College Access Initiative – Plans for Implementation The second requirement of the Initiative is that each guaranty agency provides a listing of all the college access and awareness resources available in its designated state. To help states compile and display a listing of these resources, the group has been working with Mapping Your Future, a comprehensive career and college planning Web site sponsored by guaranty agencies, to create a state college access Web page that each agency will develop. This will allow students and families to visit a central location to learn everything about available postsecondary opportunities in their state. We encourage SASFAA members who provide college outreach services and programs to contact their state's designated guaranty agency or NCHELP to ensure they are included in the state access Web page. We plan to launch the state access Web pages in September. As the College Access Initiative moves forward, we hope to bring more research into practice and to replicate the best programs and services that currently exist so that more students can benefit. Alabama Alabama Commission on Higher Education No report submitted. Kentucky Higher Education Assistance Authority,
designated guarantor for Alabama New Alabama College Loan Program Offered Across State Staff Welcomes Gary Montgomery to Customer Relations Staff Service on SASFAA Committees Florida Florida Office of Student Financial Assistance,
State Scholarship and Grant Programs
Florida Office of Student Financial Assistance,
Federal Family Education Loan Programs OSFA Moves to TERP Web Enhancements
Default Prevention News
Federal Default Fee Contribution to Need-based Aid Georgia Georgia Student Finance Commission GAcollege411 40th Anniversary
Joining us for the June 30 celebration were financial aid directors and other colleagues from Georgia's financial aid and higher education communities, representing GSFC's many partners through the years who have contributed to and shared in the agency's many successes. The Fred Factor Kentucky New Executive Director Appointed Mr. Cunningham brings a level of experience and management expertise that complements the dedicated and loyal staff already at KHEAA and The Student Loan People. Most recently he has been employed at AES-PHEAA, which is one of the nation’s largest administrators of grant, scholarship, and loan programs and a respected guarantor, lender, and servicer. During his tenure at AES-PHEAA, he held various positions including Senior Executive; First Vice President, Education Services Group; and Vice President, Loan Division. He also held positions with KMPG Peat Marwick Consulting as a Manager, Education Finance Services Group, and with the Iowa Student Loan Liquidity Corporation as Executive Director. He is a retired Command Re-enlistment Sergeant Major for the U.S. Army Reserves, where he served as an instructor for interpersonal communications and human relations. Borrower Benefits For new PLUS Loans disbursed after June 30, 2006, The Student Loan People will:
The maximum principal cancellation benefit in all Student Loan People specialty programs (Best in Class, Best in Care, and Best in Law) will be limited to $10,000 annually. Loan Operations Graduate and professional students who wish to electronically apply for a Federal PLUS Loan may now do so through KHEAA's website www.kheaa.com. Since PLUS Loans require a credit check, students may obtain PLUS Loan preapproval by clicking on the Zip Decision logo. To electronically sign a Master Promissory Note for a Federal PLUS Loan, students may click on “eSign Your MPN.” Federal PLUS Loans for graduate and professional students cannot be guaranteed until July 1, 2006; however, schools may direct students to “Zip Decision” and “eSign Your MPN” to ensure the proper verification and documentation are in place to allow the PLUS Loan to be instantly guaranteed. For more information, contact KHEAA 800-617-2699. Student Aid College Access Program (CAP) Grant maximum award amounts for the 2006-2007 academic year will increase from $1,700 to $1,900. The KTG maximum awards will increase from $2,800 to $2,900 based on new data KHEAA received regarding the full-time-equivalent calculation. Two changes to the Early Childhood Development Scholarship (ECDS) regulations beginning with the 2006-07 academic year will:
Franklin Circuit Court Judge Roger Crittenden issued a ruling in the KAPT lawsuit on April 14. The ruling stated (1) the transfer of $13.7 million from the KAPT Program Fund to the state’s General Fund required by the 2005 state budget bill was unconstitutional and (2) the repeal of KRS 393.015, which provided the backing of the Unclaimed Property Fund for KAPT tuition contract obligations, could not apply to current KAPT contract holders, and the Commonwealth must fulfill the tuition payment obligation of all current KAPT contract holders. KAPT purchasers were sent a letter from KAPT Board Chair Jim Jackson advising them of the ruling. KAPT recently implemented a new ACH option for benefit payments to schools and account owners. For FY 2006, KAPT has disbursed $1.5 million in benefits on behalf of 325 students. The Kentucky Education Savings Plan Trust (KESPT) launched the KESPT Futuretrust® cash rebate program on April 17. KESPT account owners may now:
When rebates total $25, the money will be automatically swept into an investment in the KESPT account. Survey Shows Kentucky Doing Good Job with Student Aid NASSGAP looked at need-based grants, merit-based KEES, and other state aid administered by KHEAA. Kentucky ranked:
The entire report is available at www.nassgap.org. Electronic Award Notice and Payment Planner GoHigherKY The Kentucky Department of Education (KDE) has issued a contract and work has begun on the Individual Learning Plan (ILP) component of GHK. KDE anticipates an August 2006 go-live date. All students in Kentucky will be required to set up a GHK account in middle school beginning next year. Xap Corporation, which designed and operates GHK, is working with a third party to set up the electronic transcript process with school districts and STI, a company that manages Kentucky’s K-12 school data software, to develop a process to load and transmit data to colleges. Staff hopes to have some pilot schools using the process by this fall. Staff is scheduling a third series of hands-on training workshops in computer labs across Kentucky to teach middle and high school counselors and GEAR UP and TRIO personnel about GoHigher modules. Mississippi USA Funds, designated guarantor for Mississippi USA Funds awards Mississippi residents $505,500 in scholarships USA Funds awarded $210,000 in scholarships to 140 first-time recipients of USA Funds Access to Education Scholarships® in Mississippi for the 2006-2007 academic year. In addition, USA Funds awarded $295,500 in renewal scholarships to 200 Mississippi students who previously had received awards under the program. Awards to Mississippi students through the program total more than $2.2 million in the last five years alone. Because USA Funds serves as Mississippi’s designated guarantor of federal education loans, Mississippi residents receive priority consideration for the awards. To qualify for the scholarships, students must come from households with annual incomes of $35,000 or less. Full-time and half-time undergraduate students, as well as full-time graduate and professional students are eligible for $1,500 scholarships. If a scholarship recipient maintains a grade-point average of at least 2.5, the scholarship may be renewed annually until the student receives a degree or certificate, or the total amount awarded reaches $6,000, whichever comes first. A list of first-time USA Funds Access to Education Scholarship recipients for 2006-2007 is available at www.usafunds.org/planning/access_to_education_scholarship/index.html. Information about USA Funds’ 2007-2008 scholarship program will be posted beginning Oct. 2 on USA Funds’ Web site, www.usafunds.org. North Carolina North Carolina State Education Assistance
Authority NC Legislative Action
Rules were approved by the NCSEAA Board of Directors on July 25, 2006. While $42.5m funding was provided in the 06-07 state budget, we are uncertain whether we will actually be able to implement the program for the current year or wait until 2007-08. In either case, we anticipate the electronic certification process on CFNC will be operational in December. Academic Competitiveness Grant National Presence Increasing Steve is also serving on a College Board three-year think-tank project called "Rethinking Student Aid," chaired by Mike McPherson and Sandy Baum. Involvement in these two new initiatives is in addition to his role as chair of the NCHELP task force on college access (implementing HERA) and the on-going CB Task Force on Access for Students from Low Income Backgrounds. FAFSA Day South Carolina South Carolina Tuition Grants Commission The SC Tuition Grants Program was enacted in 1970 by the SC General
Assembly as a “need-based” program for South Carolina
residents attending in-state, independent colleges on a full-time
basis. In the current 2005-2006 school year, approximately $29.6
million was awarded to 11,940 students attending the 20 eligible
SC independent colleges. The maximum award for 2005-2006 was $2,600
and the average award was approximately $2,400. The SCTG Commission implemented electronic award notifications last year in cooperation with the SC Student Loan Corporation. The experience has been very successful with faster notification to the students and dollar savings from postage and labor. The 2007-2008 state budget request was recently approved by the SC Tuition Grants Commission for submission to the State Budget Division. Sufficient funds to increase the $3,100 maximum grant by the 2005 HEPI percentage (3.5% increase to $3,200) were requested by the commission. South Carolina Student Loan Corporation, designated
guarantor for South Carolina Loan Volume Customer Service Financial Aid Outreach Tennessee Tennessee Student Assistance Corporation Tennessee Education Lottery Scholarship Program As the new academic year approaches, new education lottery scholarship legislation helps to expand the program. Of the significant changes, scholarships will be processed to fund the Tennessee HOPE Teacher's Loan Forgiveness program. Its purpose is to provide financial assistance to Tennessee tenured public school teachers seeking an advanced degree in math or science, or a certification to teach math or science in a Tennessee public school system. Tennessee Student Assistance Award Program Loan Division Compliance Division Meanwhile, the legal affairs staff has been focused on the development of TSAC rules implementing changes to various Tennessee laws regarding state financial aid programs made by the legislature this past spring. Communication Services Division We are also in the midst of updating all publications, promotional materials and our Web site to reflect the new legislative changes affecting financial aid in preparation for a very busy fall travel schedule. Additionally, the Communication Services Division has some new talent in the ranks. We have promoted from within to create a Director of Outreach while adding an Outreach Specialist for Web, Publications and Graphic Design and two new Telephone Counselors to our call center. As you can see, it’s only the beginning of a very busy new school year for us -- with new initiatives, new employees and a revitalized image, TSAC hopes to improve current services and create new invigorating and innovative ways to serve our clients! Virginia State Council of Higher Education for Virginia
(SCHEV) Virginia’s financial aid programs received a substantial increase for FY07. Undergraduate need based awards increased by $10.9 million or 12.9 percent; graduate awards increased by $4.9 million, a 40 percent increase; and grants to private colleges by $4.4 million, 9.8 percent increase. Altogether, financial aid received over $20 million in annual increases. Virginia adopted a policy that will ease the ability for military family members to obtain the in-state tuition rate. This change will put Virginia in line with 45 other states in providing this benefit. Virginia adopted a policy whereby students who exceed 125% of degree requirements would be assessed a tuition surcharge on top of their in-state tuition rate. This additional charge would bring total charges to equivalent to full cost of education. Certain course exclusions are provided as well as an appeal policy. Beginning fall 2006, public institutions will submit institutional performance agreements that will address Access, Affordability, Academic Standards, Student Retention, six-year financial plans, etc. Educational Credit Management Corporation
(ECMC), designated guarantor for Virginia ECMC is embarking on development of a new financial literacy program. Paula Craw, formerly with Eastern Virginia Medical School and the Association of American Medical Colleges, has been hired as National Director, Financial Literacy Training. Jeff Southard, previously a Financial Literacy Specialist for NELA, has also joined ECMC as Financial Literacy Training Specialist. ECMC’s “Opportunities” booklet, a guide to education after high school, has been redesigned for 2006-2007. Information that applies regardless of state of residence will be contained in a “national” booklet, with supplements for Virginia and Oregon containing state-specific information. ECMC is pleased that its support has helped the Commonwealth College Access Network to be incorporated as a non-profit corporation. CCAN was incorporated on July 20, and the initial Board of Directors is meeting in Charlottesville on August 7-8 to plan CCAN’s initial activities. CCAN is an outgrowth of a partnership between ECMC, SCHEV and VASFAA, with ECMC providing the start-up funding for CCAN . |
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