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Student Access Loan Program FY 2016
Pennie StrongVice President
Student Aid Services
May 21, 2015
Agenda
• Regulations• Budget• Program Requirements• Repayment Options• Application, Selection and Certification• Surfer Reports• Year End Reconciliation
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
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
FY 2015 & FY 2016 SAL Budget
Appropriated
Available From
Prior Year
Total Budget
FY2015$19,000,000
+ $10,000,000
$2,936,966 $31,936,966
FY2016 $27,000,000 $27,000,000
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
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 [email protected] within five business days
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, email notification to borrower• Students in Repayment must make a minimum $50 monthly
payment• Methods to submit payments:
- Online via www.pathways2gsfa.org- Preauthorized draft payment- Online personal banking account- By phone or mail
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
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
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
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
SAL Repayment Options
SAL Communications
SAL• [email protected]
g student/borrower email
• Emails continue to be main communication unless student opts out
• After 60 days late on any payment, letter mailed
SAL – TCSG• [email protected]
student/borrower email
• Emails continue to be main communication unless student opts out
• After 60 days late on any
payment, letter mailed
[email protected] Aid Professionals’ email to go directly to
all the Origination & Disbursement SAL Specialists
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
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
SAL Application Process
Online Application submitted through website System checks
• 2015-16 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
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 email communications and link to documents
▫ If opt out, applicant will receive paper communications and mailed documents
FAFSA Check Select School 10 Loan Definitions 11 True/False
Statements Application Disclosure Statement
Applications Online
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
SAL Selection Process
Selection cycle 1• 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
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
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
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 email 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
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 email request
− Approval on a case by case basis and funds available
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
SURFER SAL Reports
New - Delinquency and Default SAL borrowers reports • Delinquent on annual interest (FY 2012-2014 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
SURFER - SAL Year-End Reconciliation Screen
SAL FY 2016 Year -End Reconciliation
due July 15
Total Disbursements
Amount Refunded for the current year
Email for students/borrowersSAL: [email protected]: [email protected]
Email for Financial Aid Professionals [email protected]
Gary Mann [email protected] 770-724-9039
Contact Us
“Q&A”
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