SulSULLIVAN UNIVERSITY SYSTEM. SUS private loan option Last resort to cover a gap in aid Co-signer required Full time students only WHAT IS THE CEF LOAN?

Slides:



Advertisements
Similar presentations
APPLIED TECH AUDITORIUM Monday, October 4, :00 PM Loan Workshop Please be seated. This session will begin shortly.
Advertisements

1 Financing Options Financial Aid 101 Mary Dyer, Default Prevention Specialist October 10, 2008.
Tuition Bill and How Best to Pay Things to be Aware of Questions Presented by Student Fiscal Services 2014 UW Tacoma Parent Orientation.
A Closer Look Open House Financing Your WPI Education April 2009.
University of Wyoming – Delta Alpha Chapter Financial Literacy Student Loan Information.
Understanding Award Letters and Net Cost Anne Reed, New England School of Communications.
Welcome to Make Neumann Your Choice….  Visit the website Not Not
Tuition Billing & Financing Your Education Presented by: Marc Maniatis Director of Student Accounts & Risk Manager SOAR
Financial Aid University of Akron Wayne College. What is financial aid? Any assistance used to reduce the amount you must pay Grants Loans Work-Study.
Three Important Tips Be Aware of Deadlines File the Free Application for Federal Student Aid (FAFSA) Apply for Scholarships.
Helping Financial Aid Professionals and Students Navigate the Alternative Loan Dilemma Brian Cox, First Marblehead/TERI Melissa Kunes, Penn State Session.
Finance and Administration Cashier’s Office Questions Presented by Finance and Administration UW Tacoma H.O.W.
Soar Weekend Office of Student Financial Services Kenneth Nieman Director.
Financial Aid 101. Step 1: Apply Apply for Financial Aid by completing a Free Application for Federal Student Aid (FAFSA) Make sure to include the Title.
N EXT S TEPS TO C OMPLETE THE F INANCIAL A ID P ROCESS 2012 Parent Programs.
Financing Your Wellesley Education Spring Open Campus 2013 Wellesley College Student Financial Services.
Financial Aid: How we do what we do! Welcome to UWM !
 Funded by the US government  Apply by completing the Free Application For Federal Student Aid {FAFSA} online at  Complete the application.
Financial Aid Discussion December 13, Discussion Topics Forms and Deadlines Net Price Calculator IRS Data Retrieval Expected Family Contribution.
2014 Open House Financial Aid. Overview LMU at a glance Types of available aid The aid application process Connecting with the Financial Aid Office Additional.
Financing Education Beyond High School Division of Student Financial Aid Located in Keeny Hall Room
1 What College Bound Students Need to Know After They File the FAFSA 2013.
 How much will your education cost?  What financial aid resources are available?  What is the financial aid process?  How much should you borrow?
CBS Financial Aid Orientation Staff Roshanna Hardison, Director of Financial Aid
Inspire a world of good MONEY MATTERS: Understanding Your Bill, Financial Aid, & Developing Financial Literacy Academic Year Michael Discolo.
School of Medicine O rientation August 12, 2015 Presented by: Kevin Ryan and Nicole Griffo.
Financial Aid Flow Chart Information is sent to the Office of Student Financial Aid Federal Processor Calculates EFC (Expected Family Contribution) Student.
P1 Orientation Financial Aid. Financial Aid Budgets.
Making College Possible:
Illinois State University Financial Aid Office Campus Box 2320 Normal, IL (309) FAX (309) Eureka College Financial Aid Office.
PORTLAND HIGH SCHOOL Wednesday, December 8,
Paula Catanzaro EDU 653  You’ve made the decision to further your education. How are you going to pay for it? If you’re like 86% of other college students,
Presented by the Student Service Center.  Awards and manages internal and external funds including:  Grants  Loans  Scholarships  Work Study 
Georgia Student Finance Commission
UNDERSTANDING AND EXPLAINING FINANCIAL AID PACKAGES Karly Aparicio and Katy Murphy WACAC SLC March 2013.
Understanding Financial Aid Grafton High School Margaret Zitzer Monday, January 13, 2014.
1 Finding Out What You Owe MyUW Changes in the Bill Paying Tuition & Fees Deadlines Payment Options Financial Aid Disbursement Sign Your Promissory Note.
OU-HCOM FINANCIAL AID Info about Loans OU-HCOM FINANCIAL AID Info about Loans Marie Barone Michelle Kittle.
Financial Aid Profile Day 
Money Matters: You’ve Got Questions, We’ve Got Answers.
Springboard To Success. 2 Not Financially Cleared? Food Card won’t work The only thing you can do in the library Can’t use any facilities Can’t.
Harrison College Institutional Loan Program. Began utilizing an Institutional Loan Program for all campuses within past six months, ran pilot at one campus.
Financial Aid Profile Day Spring 
Visit Your School’s Financial Aid Website! Contact the Financial Aid Office if You Need Additional Information! Complete ALL Paperwork Carefully. Read.
Financial Aid Presentation. FSA ID Sign FAFSA electronically Only the owner should create a FSA ID Cannot use the same e- mail address.
Financing Your Medical Education April 11, Federal School G41672 TCMC Need-based grants; must provide parental data on FAFSA Federal.
College Board TRENDS IN STUDENT AID Total Aid Awarded $134.8 Billion Graduate & Undergraduate 51% or 69 Billion in Loans (FFELP and Direct) –Undergrad.
FINANCIAL AID 3 EASY STEPS Amy Gooden- Muskingum University.
Financial Aid Information Award Year Admitted Student Day 1.
Hands on Banking ® Financial Education Paying for College © 2016 Wells Fargo Bank, N.A. All rights reserved.
State Aid Workshop September 26, 2012 and October 4, 2012.
Money Matters: You’ve Got Questions, We’ve Got Answers.
DOLLARS & $ENSE Financial Aid. FORMS TO COMPLETE Free Application for Federal Student Aid (FAFSA) Completed online at Based upon 2012.
Welcome to.  Visit the website Not Not
CBS Financial Aid Orientation Staff ShaToi Newell, Financial Aid Advisor Services Financial aid awarding Federal.
STUDENT FINANCIAL SERVICES Graduate Financial Aid Information Session Debbie Davis, Assistant Director of Graduate Financial Aid.
Taking Care of Business Financial Aid & Student Accounts.
Student Fiscal Services Contact us at or call us at Visit our website at Student Fiscal.
University of the Pacific
Money Matters: Understanding Your Bill, Financial Aid, & Developing Financial Literacy Academic Year Michael Discolo Manager of Student Accounts.
TO ADD NEW SLIDE LAYOUTS: Make sure you have the ‘Home’ tab selected at the top of the PowerPoint screen and click the down facing arrow to the right on.
Let's Talk About Finances
The Billing Process.
Graduate Financial Aid Information Session Jennifer Baughn Associate Director - Graduate and Professional Programs
Charles E. Schmidt College of Medicine Medical Student Financial Aid
Student Aid Report (SAR)
Understanding your Award Spring Open Campus April 8-9, 2019
The Billing Process.
Charles E. Schmidt College of Medicine Medical Student Financial Aid
Financial Aid 101 Fall 2019.
Presentation transcript:

SulSULLIVAN UNIVERSITY SYSTEM

SUS private loan option Last resort to cover a gap in aid Co-signer required Full time students only WHAT IS THE CEF LOAN?

$1000 minimum loan amount in academic year $8000 maximum loan amount in academic year $16,000 total loan amount for program Minimum loan term is as short as 12 months Maximum loan term is as long as 60 months Regular payment of principal and interest begins the 1 st day of the 2 nd month once studies cease Gap - cash payments= loan amount LOAN AMOUNTS AND REPAYMENT

Identified via the packaging screen in Campus Vue Remaining balance to schedule must be a positive amount Used to determine the required monthly cash payment plan Gap= cash payment plan + loan amount WHAT IS A GAP?

Includes institutional charges only Cost of attendance minus all other aid Tuition Fees First quarter books On campus housing Meal plan BUDGETInstitutional Charges WHAT DOES THE LOAN COVER?

Student must attempt all other aid eligibility first Ineligible for stipends Loan cannot create a credit balance Co-signer required on every loan and expected to pay if student defaults on payments Equal monthly cash payments due while in school Employees are not eligible Cannot be in default FPD and Chancellor approval for extenuating circumstances beyond $8000 cap STUDENT REQUIREMENTS

Payments must be current in order to receive disbursements Must apply for credit based loan and be declined with co- signer In the event a credit occurs, this will reduce the loan amount not the cash payment plan Required to notify Financial Planning if additional aid is awarded after being packaged with the loan $15 late fee $25 NSF fee Note- payments carry over into next academic year even if another CEF loan is not needed STUDENT REQUIREMENTS

Allows the student to attend when all other options have been exhausted No interest accrual while in school Debt forgiveness upon graduation 8% simple interest No origination fees No prepayment penalty INCENTIVES

Offer only as a last resort Explain the stipulations and expectations in detail Reduce the loan by what they can afford verses automatically providing minimum payment 100% complete documents Route paperwork properly and efficiently Seeking additional approval is rare, not the norm Pros and cons Think outside the box Discuss future planning and budgeting Provide ideas to reduce expenses in order to reduce the amount of the loan (ex: does it benefit to move from 6Q to 8Q? We should converse w/customer & ADM and if changed we must ensure new enrollment is received) Live with family or roommates Ask fact finding questions EXPECTATIONS OF FPC

Do not offer the minimum monthly payment simply because it reduces the out of pocket cash payments We need to reduce their need on the loan as much as possible The question should be “What can you afford?” Have the student and parent/cosigner complete a budget using an online tool such as spending/home-budget-plan-calculator.aspxhttp:// spending/home-budget-plan-calculator.aspx This lists their total expenses and total income The difference will reflect what they can and can’t afford Print this out and attach this to the CEF packet for the FP file HOW MUCH CAN YOU AFFORD?

CEF Truth In Lending Borrower application Co-signer application Promissory note (requires notary if signature cannot be witnessed by FPC) Private loan self-certification (non expired) Cash payment plan schedule ACH form REQUIRED CEF PAPERWORK

CEF TRUTH IN LENDING

CEF BORROWER APPLICATION

CEF CO-SIGNER APPLICATION

CEF PROMISSORY NOTE

PRIVATE LOAN SELF- CERTIFICATION

CASH PAYMENT SCHEDULE

ACH FORM

Copy of ACH form no later than 3 business days before first payment Notify the office if loan approval is within 3 business days of first draft and direct students to make their first payment to the Business Office If using a card as method of payment, this information should be sent to the Business Office, not with Accounting or in the FP file Copy of cash payment schedule All original documents (except card information) A copy of the CEF packet should be provided to the borrower and cosigner. A full copy is retained in the FP file Credit Card information should never be stored outside of the Business Office Business OfficeAccounting ROUTING OF DOCUMENTS

INTERNAL FORMS TO CALCULATE PAYMENTS

TOOL FOR TIL AMORTIZATION Box A= APR (8%) Box B= Loan term (determined by total gap) Box C= Total interest paid during full loan term Box D= Loan amount being financed Box E= Amount totals loan + total finance

List each estimated disbursement amount List each estimated disbursement date (generally week 9 each quarter) Do not forget to sign/date the notary box if borrower and co-signer are physically present and signing the application in your presence If all parties are not present, notary is required LOAN PROMISSORY NOTE

Section 2: Cost of attendance and estimated financial assistance A= total cost of attendance B= all other estimated financial aid assistance (minus CEF and cash payment plan) C= difference between A & B (shows need) Be sure to also include the back side of the form which lists sections 5 & 6 which provides definitions and the paperwork reduction notice for informational purposes Reminder- These forms do expire. This date is located in the top right corner PRIVATE LOAN SELF- CERTIFICATION

FIRST ACADEMIC YEAR BORROWER Student is left with a $2500 gap for their packaging How much would the monthly cash payments be for this student? $130 while in school How much in total cash payments? $1170 ($130 * 9 months) How much would the loan amount be for this student? $1330 ($2500 – $1170) How would you list these in the packaging and on the award letter? CEF fund source and cash payments are broken out per quarter in Campus Vue and on the award letter EXAMPLE 1

SECOND ACADEMIC YEAR BORROWER There was a $2500 gap in the first academic year There is a $7000 gap in the second academic year How much is the total gap? $9500 How much is the new monthly payment? $205 per month (Total gap of both is used to calculate payment) How much are the total payments in the second academic year? $1845 ($205 * 9) How much is the loan for the second academic year? $5155 (2 nd acyr gap – 2 nd acyr total payments) The 1 st year gap is taken out when figuring the 2 nd acyr loan- it is only used to determine the new payments EXAMPLE 2

You determine that the student needs a CEF loan of $8500. What should you do in this case? Since the loan must be <$8000 to not require Chancellor approval, we should include the difference in the student’s payment plan You determine that the student needs a CEF loan of $9000 but the student absolutely cannot afford the $1001 difference on top of their payment plan. What should you do in this case? Since the loan amount is over the $8000 academic year limit we should attempt to request the additional approval. WHAT WOULD YOU DO?

Interoffice Memo including the latest “clean” ISIR transaction ALL CEF documents Award letter PLUS loan showing denial and if flagged for reconsideration the COD notice showing the parent attempted to be reconsidered but was denied (if applicable) Alternative loan denial with co-signer Budget calculation as proof that they can make the payment Applicable Admissions paperwork and recommendation letter (ex: HS or college transcripts for grade review) REQUIRED FOR EXCEPTIONS

Did they link their taxes? Confirm the EFC. A high EFC will get push back We have the authority to self select them for FAFSA verification and obtain tax information (link or transcripts) Include the budget they completed and use this to justify that they can make the payment they are telling you they can afford Provide this information with the CEF packet to your Director of Financial Planning Director reviews the request and sends to Chancellor/President/VP of Enrollment for approval Result is sent to FPC Have the student sign their award letter PROVE THE STUDENT IS A GOOD RISK

INTEROFFICE MEMO