nysfaaa 43 annual conference “helping students catch their dreams” october 20, 2011 christopher...
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NYSFAAA 43 Annual Conference“Helping Students Catch Their
Dreams”October 20, 2011
Christopher Alonzo- MCCJan Scheutzow- Nazareth College
Dorcia Ulysses-Diallo- SUNY Geneseo
Direct Loan Entrance Counseling◦ Delivery Options◦ Counseling Requirements◦ Best Practices
Direct Loan Exit Counseling◦ Delivery Options◦ Counseling Requirements◦ Best Practices
Perkins Entrance Counseling◦ Delivery Options◦ Counseling Requirements◦ Best Practices
Perkins Exit Counseling◦ Delivery Options◦ Counseling Requirements◦ Best Practices
TEACH Grant Exit Counseling
◦ Must be completed prior to first disbursement of Stafford loans to first-time loan borrowers
◦ May be conducted in person, by audio visual presentation, or by interactive electronic means. www.studentloans.gov www.mappingyourfure.org Direct Loan Entrance Counseling brochure
(http://www.direct.ed.gov/pubs/entrcounselguide.pdf)
◦ School must document completion of counseling
Comprehensive loan information◦ Terms and conditions
Current interest rate, grace period, first payment due date◦ Rights and Responsibilities
Explain the use of the Master Promissory Note◦ Multi--year feature
Explain interest and capitalization◦ How interest accrues and is capitalized◦ Option to pay unsubsidized interest while in school
Review repayment options◦ Standard, Extended, Graduated, Income-Based Repayment,
Consolidation
Provide sample monthly repayment amounts◦ Based on average Stafford indebtedness of students at the same
school
Stress importance of repayment
Stress repayment is required regardless of educational outcome or employability
Review deferments and forbearance
Describe consequences of default◦ Adverse credit, collection costs, ineligible for deferments,
seizure of state or federal tax refund, ineligibility of FSA funds
Provide NSLDS information
Provide school contact for questions
Stress importance of keeping the school/servicer informedof name, address, enrollment changes
◦ Must be completed before Stafford and Grad PLUS borrowers graduate, withdraw or drop below ½-time status Upon withdrawal, must be sent within 30 days
◦ May be conducted in person, by audio visual presentation, or by interactive electronic means www.studentloans.gov www.mappingyourfure.org Direct Loan Exit Counseling brochure
(http://www.direct.ed.gov/pubs/exitcounselguide.pdf)
◦ School must document completion of counseling
Review information from entrance counseling◦ Consequences of default
Adverse credit, collection expenses, litigation◦ Importance of repayment obligation
Regardless of dropping out, ability to find a job, or satisfaction with program
◦ Use of Master Promissory Note
Review repayment options◦ Standard, Extended, Graduated, Income-Based, etc
Review plan features, sample payments, interest charges, total payments
Review option to prepay without penalty and change repayment plans
Provide an average anticipated repayment amount on:◦ His/her indebtedness◦ The average indebtedness of other student borrowers at the same
school or in the same program
If the student has taken out..
Average should be based on students who have borrowed
DL Sub/Unsub only DL Sub , Unsub only
DL Sub, Unsub and Grad PLUS
DL Sub, Unsub and Grad PLUS
Provide loan consolidation information◦ Effects of consolidation on total interest to be paid, option or
prepay the loan or change repayment plans.
Discuss debt management strategies and tax benefits
Review forbearance and cancellation options
Inform student of NSLDS loan information
Inform student of FSA Ombudsman Office
Ensure borrower understands their rights and responsibilities
Collect and update personal and contact information◦ Must send to DL Servicing within 60 days of exit
School must document compliance of exit counseling
◦ Must be completed prior to first disbursement of Perkins loans for the award year
◦ May be conducted in person, by audio visual presentation, by interactive electronic means, or by a third party provider www.mappingyourfure.org Campus Partners
◦ School must document completion of counseling
Rights & Responsibilities under Perkins Loan Program
Loan is for educational purposes only
Loan must be repaid and the school holds the MPN◦ Must notify student the amount of each Perkins disbursement
made under the MPN, option to cancel disbursement or the loan
Name & address of school to which debt is owed
Name & address of servicing agent
Maximum annual and aggregate loan amounts
Effect of accepting Perkins loan on other types of student aid
Total Perkins indebtedness and estimated monthly payment
Perkins consolidation and refinance options
Notice of Dept. of Defense program for repayment based on certain military service
Complete list of Perkins charges – deducted or paid separately
School will report balance of loan to national credit bureau annually
Collect updated borrower information◦ Name, address, phone, spouse, employer, references
Completed prior to student graduating or drops below ½-time status
May be done in person, in groups, by audiovisual presentation, by interactive electronic means, or by third parties
Upon withdrawal- exit material must be mailed within 30 days of notice of withdrawal
Disclose pertinent repayment information
Contact information to request a copy of MPN
Contact information for school
Contact information for servicer
Name and address to whom payments should be sent
Estimated amount owed and repayment begin date
Total interest charges paid per repayment schedule
School must document Perkins exit completion
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