WASFAA Annual Meeting Anchorage, Alaska April 2009

2 Today’s Presenters  Stephanie Butler - Director of Program Operations  Sheryl Hales – Asst. Director of Program Operations, Loan Servicing Officer  Fred Tolbert – Loan Servicing Supervisor  Kris Cole – Customer Service Officer  Joann Rieselbach – Program Coordinator, School Liaison

3 Agenda  ACPE and ASLC  Challenges and Options  Solutions: Financing and Program Changes  ASEL – Changes for PY 2010  The NEW ASLNet  Customer Service Call Center  School Liaison & Grant Program

4 ACPE/ASLC Mission Promote, support, & provide access to and success in postsecondary education for Alaskans, through: Outreach and early awareness programs Financial aid for postsecondary education & training Advocacy for postsecondary participation in Alaska Education consumer protection through Institutional Authorization To meet this mission, ACPE and ASLC offer AlaskAdvantage Programs, providing programs and services without cost to the State.

5 ASLC and ACPE Alaska Student Loan Corporation – Lender Finance loans through tax-exempt bonds and loan repayment Set interest rates & borrower benefits based on program costs Manage assets and resources to ensure long-term program sustainability in a business environment Alaska Commission on Postsecondary Education Advise on and establish policies for state financial aid programs Approve postsecondary education institutions operating in Alaska Deliver programs and services to Alaskans Represent stakeholder interests

6 Partnership Goals & Challenges  Offer ongoing value-added programs and services for Alaska students, present and future, to increase their access to the benefits of higher education  Be self-sustaining for the long-term by deploying a business model for operations while meeting public policy goals

7 Solutions: Financing & Program Changes 1. Secure alternative source of financing until asset- backed securities markets recover, without General Fund draw or high cost to students Loan from state (secured & repaid with interest) Prioritize programs for internal funding 2. Structure programs to be marketable securities in the new economic climate and still keep costs low Credit assessment changes O-fee changes

8 ASEL Changes for PY 2010  680 credit score requirement for ASEL borrowers and cosigners  5% origination fee  OFAC/Red Flag Identity Theft checks to be conducted in accordance w/ ACPE’s Identity Theft Prevention Program

9 ASEL MPN Modifications  Borrowers required to complete new ASEL MPN for PY 2010  All ASEL MPN’s will be inactivated  Letter sent to PY 2009 ASEL borrowers advising of requirement to complete new MPN  Cosigner application modification  Important to note that Stafford MPN process remains the same * New ASEL MPN’s available in early May, 2009.

10 New ASLNet Process for Applicants  Applicant completes ASEL app on ASLNet – ETA for “new” ASLNet is 6/20/09  E-signs app - 2 options to authenticate identity (STAN or public record database)  “Real-time” credit check on e-signed apps  Certification requests to school will not generate until credit approval  Loan awarded and disbursements scheduled upon return of school cert (if no cert w/in 90 days, credit rechecked)  In cases of denial, applicant has option to request a prompt be sent via to potential cosigner

11  Automated cosigner process created to accommodate anticipated increase  Cosigner receives prompt  Cosigner has same e-sign authentication options  “Real-time” credit check performed  Notarization not required on e-signed apps  Cosigner can track loan status on ASLNet through life of loan New ASLNet Process for Cosigners

12 Customer Service Call Center  Focus is to provide a positive experience for our customers  Repayment Options available for customers that are experiencing financial difficulties  Recognition for military personnel that provide service to our country through interest subsidies during certain military deployment situations

13 Customer Service Call Center  Call Center structure  Proactively provide staff with information, tools and training to ensure quality service  Work with School Liaison

14 School Liaison Goals  Offer single point-of-contact for Financial Aid staff  Provide support throughout entire loan process  Keep FA staff up-to-date with agency planning and policy changes  Work with schools so students make sound and informed financial aid decisions

15 Liaison Works For and With FAO’s  Sets up School Processing profiles  Able to expedite processing, in certain areas (H/R)  Will provide customized training upon school’s request  No question too small!

16 School Liaison Contact Information In Alaska: (Anchorage) or (Direct) Lower 48: (Toll-Free)

17 AlaskAdvantage TM Education Grant Program  Need-based (not first-come, first-served)  No separate application – FAFSA only  Allows Alaska to participate in federal LEAP program  Recognition of needy students most likely to succeed  Recognition of state workforce development goals

18 AEG Program (cont.) Student Eligibility Requirements:  Alaska resident attending eligible Alaskan institution  High school grad (or GED)  Admitted into a first undergrad degree or certificate program (no prior Bachelor’s Degree)  Enrolled at least half time  Financial need of $500 or more  Title IV eligible (FAFSA, SAP, etc.)  Has not received cumulative AEG in excess of $8,000 (lifetime max)

19 AEG Program (cont.) 08/09 Program Year Summary:  Total Dollars Disbursed = $1,974,778  Total # Students Awarded = 2,113  Average Award Amount = $935  Average Unmet Need = $11,525 * 09/10 Funding Approved by ASLC *

20 Contact Information Stephanie Butler… Sheryl Hales……… Fred Tolbert……… Kris Cole………… Joann Rieselbach

21 Questions?

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