Conversion Loan Programs: KHEAA Teacher Scholarship & Minority Educator Recruitment and Retention Scholarship (MERRS) KASFAA Spring Conference April 12, 2007 Jennifer Toth, KHEAA Natasha Murray, KY Department of Education

Program Description Program Description The KHEAA Teacher & MERR Scholarships provide financial assistance in the form of a scholarship/conversion loan to Kentucky students who are pursuing initial teaching certification.

Eligibility Requirements U.S. citizen Kentucky resident Seeking initial teacher certification Full-time student (unless final term) Unmet need Available funding Good standing on all student loans, including conversion loans Additional MERRS requirements Minority 2.5 GPA Only available at public institutions

Scholarship or Loan? Recipients are required to provide teaching service in Kentucky for each semester the scholarship is received. Otherwise, the scholarship converts to a loan.

Loan Interest Rate Conversion loan interest accrues from the date of disbursement. The interest rate is currently 6%. –Prior to April 2005, the interest rate was 12%.

KHEAA Teacher Scholarship Award Amounts Juniors, seniors, post-baccalaureates, & graduates Up to $2,500 per semester for fall and spring Up to $1,250 for summer term if funding is available

Freshmen & sophomores Up to $625 per semester for fall and spring Up to $325 for summer term if funding is available KHEAA Teacher Scholarship Award Amounts

KHEAA Teacher Scholarship Aggregate Amounts Undergraduate $12,500 Graduate (including post-baccalaureate) $7,500 Students can receive scholarships at both the undergraduate and graduate levels provided they do not exceed their aggregate.

MERRS Amounts Four-year institutions $2,500 per semester KCTCS institutions $1,000 per semester Students may receive MERRS at both the undergraduate and graduate levels. $20,000 lifetime aggregate

Program Administration KHEAA Teacher Scholarship KHEAA makes awards and disburses funds.

Application Process Students apply via Zip Access at Application deadline is May 1

Types of Applicants New Applicants Students who have never received a KHEAA Teacher Scholarship Renewal Applicants Students who received a KHEAA Teacher Scholarship disbursement during a prior semester/academic year

New Applicants New applicants must log into Zip Access and click the “Apply Online for Scholarship” link to begin their application process.

Renewal Applicants Renewal applicants must log into Zip Access and go to their “ Teacher Scholarship” link. They do not complete a new application.

Application Process The FAFSA is also required because the KHEAA Teacher Scholarship is need-based. Students should have their ISIR information to their participating college by May 1, 2007.

Certification Process Once initial applications are received, teacher certifiers at each institution verify the following applicant information: Admission into the institution Admission into the teacher education program, if applicable U.S. citizenship; and Kentucky residency.

Awarding KHEAA Teacher Scholarships Based upon available funding, awards are made in the following order to qualifying applicants as ranked by EFC: 1.Renewal applicants 2.Initial applicants admitted to a teacher education program 3.Initial applicants who meet the requirements for admission but have not been admitted to a teacher education program

Disbursement Process KHEAA sends a promissory note to each recipient for each semester the scholarship is awarded. Once the promissory note is returned to KHEAA, the student is placed on the institution’s roster in Zip Access under the Student Aid “Verify Eligibility” section.

Disbursement Process Funds are disbursed once enrollment verification is received by KHEAA. Institutions typically receive an EFT notification via within 3-5 business days.

Refunds Refunds should be submitted through Zip Access using the “Make a Refund” process.

Program Administration MERR. Education institutions make awards and disburse funds in accordance with KDE regulations.

MERR Application Process 1.Students contact their campus MERR coordinator for an appointment to fill out an application. 2.The promissory note is signed.

MERR Application Process 3.All promissory notes and invoices are sent to KDE for verification of student status, disbursement of funds, and data collection. 4.Promissory notes are sent to KHEAA for tracking purposes.

Program Administration Teacher and MERR Scholarships KHEAA tracks statuses of recipients until obligations are fulfilled.

Promissory Notes IMPORTANT: The promissory note gives KHEAA the authority to collect if the scholarship converts to a loan. If assisting students with promissory notes, they should be: Completed in their entirety Signed and dated by the student Corrections should be initialed by the student

Satisfying the Obligation

Two Ways to Satisfy Payment by qualified teaching service OR Payment by money

Recipients who complete a teacher education program receive a six-month grace period after teacher certification program is complete. Grace Period

Provides time to prepare for service: Pass PRAXIS Obtain a Certificate of Eligibility Obtain a position working on a one-year Kentucky Teacher Internship Program (KTIP)

Status Tracking After graduation, KHEAA sends each recipient a status form and letter explaining the qualified teaching service requirements. The status form must be completed and returned to KHEAA by the end of the grace period. If it is not returned, or the recipient does not qualify for deferment, the scholarship converts to a loan.

It is the recipient’s responsibility to notify KHEAA of the following: Change of address Change of telephone number Leaving school or attending less than half-time for any period of time Changing schools Graduation date change When and where qualified teaching service is being provided Status Tracking

Payment by Service

Cancellation of scholarship Recipients can receive service cancellation if they provide qualified teaching service at a school certified by the Kentucky Department of Education.

Cancellation Requirements Must be the teacher of record Provide service the majority of the day* Teach at least 70 days per semester Be in good standing on any KHEAA loans If qualifications are met, service cancellation begins during the KTIP year.

Cancellation Requirements *Teaching the majority of the day is required unless an individual has a disability defined by Title II of the Americans with Disabilities Act, whose disability, certified by a licensed physician, prevents that individual from teaching a major portion of each day. The recipient shall be deemed to perform qualified teaching service by teaching the maximum time permitted by the attending physician.

Cancellation Terms Cancellation of one semester per semester taught OR Cancellation of two semesters per semester taught in a critical shortage subject area

No cancellation allowed for the following: Emergency Certification Substituting Cancellation Terms

Payment by money

Payment by Money The following applies to students who stop pursuit of initial teacher certification: No grace period allowed Scholarship converts to a loan Students who are enrolled in an eligible institution at least half-time may receive in-school deferments.

Payment by Money KHEAA will attempt to make satisfactory payment arrangements with recipient

Failure to repay Account can default Reported to credit bureaus May be assigned to the KY Department of Revenue for further collection activity including garnishment of wages & tax refunds

Important Disclosure Please be sure to explain to students that this scholarship requires a qualified teaching service requirement in Kentucky for each semester received. Otherwise, it must be repaid.

Questions? Jennifer Toth KHEAA Scholarship/Conversion Loan Coordinator Natasha Murray KDE Program Consultant/KY Educator Placement Service Coordinator & Educator/Recruitment Specialist