HESC Update SUNYFAP 2011

HESC Update v State Budget Highlights

Tuition Assistance Program v Eliminates the $75 across-the-board reduction to student TAP awards. v Eliminates the two percent reduction to scholarship awards. v Continues the maximum TAP award for students matriculated in certain two-year degree programs at up to $4,000.

Tuition Assistance Program v Authorizes TAP awards for students who attend institutions that are not currently under the supervision of the State Education Department. v Amends the New York State District Attorney and Indigent Legal Services Attorney Loan Forgiveness Program to require New York State residency and to clarify the calculation of applicable eligibility timeframes.

Satisfactory Academic Progress (SAP) Maintains the requirement that minimum academic standards for non-remedial students be increased for continued TAP eligibility, but modifies the standards to be more attainable for students first receiving State aid in and thereafter.

Scholarships v Extends the statutory authorization for the Regents Physician Loan Forgiveness Program until , and authorizes awards for prior obligations retroactively to v Extends the statutory authorization for: –New York State Licensed Social Worker Loan Forgiveness Program, –Senator Patricia K. McGee Nursing Faculty Scholarship and the –Nursing Faculty Loan Forgiveness Incentive Program until 2016, and retroactively for prior obligations for the academic year.

NYHELPs New York Higher Education Loan Program

Facts and Stats v $6 million originated through 3/20/2011 v 677 loans fully approved v $8,863 = average loan amount v Repayment breakdown: –Fully deferred-45% –Interest only-22% –Immediate payment-33%

College Participation v 86 colleges currently participate state wide v SUNY Participation –15 SUNYs –3 Community Colleges

Program Highlights v 1% college fee covered for v Fixed rate v Covers back balances v FICO score requirement starts at 660 v Financial literacy requirement v Allows for a sponsor to borrow on behalf of the student v Servicer covers all HEOA disclosures and notices v Early outreach – 200 borrowers in repayment – 0% delinquency rate

Getting Ready for v Simplified application process v Reduced documentation v Enhanced functionality for colleges –Online processing –Disbursement methods v Continue to sign on new colleges

Contact Information Thank you! Lisa Simpson

HESC Update v Student Financial Aid Awareness v FAFSA Completion v Thank You for Your Help

HESC Update v Student Empowerment Grant v Information will be focused on the student –Net Price Calculator –Financial Literacy Driven –Free Money First –Student Loan Analytics Rating

HESC Update  Default Prevention  1.2 million calls  The 500,000 borrowers that did not default  400,000 loans that were “PUT” last year  Financial Literacy

HESC Update v The Transition of Guarantors v Guarantor Services

Questions?