NYSFAAA 43 Annual Conference “Helping Students Catch Their Dreams” October 20, 2011 Christopher Alonzo- MCC Jan Scheutzow- Nazareth College Dorcia Ulysses-Diallo- SUNY Geneseo

 Direct Loan Entrance Counseling ◦ Delivery Options ◦ Counseling Requirements ◦ Best Practices  Direct Loan Exit Counseling ◦ Delivery Options ◦ Counseling Requirements ◦ Best Practices

 Perkins Entrance Counseling ◦ Delivery Options ◦ Counseling Requirements ◦ Best Practices  Perkins Exit Counseling ◦ Delivery Options ◦ Counseling Requirements ◦ Best Practices  TEACH Grant Entrance/Exit Counseling

D irect Loan Entrance Counseling D irect Loan Entrance Counseling

◦ Must be completed prior to first disbursement of Stafford loans to first-time loan borrowers ◦ May be conducted in person, by audio visual presentation, or by interactive electronic means.    Direct Loan Entrance Counseling brochure ( ◦ School must document completion of counseling

 Comprehensive loan information ◦ Terms and conditions  Current interest rate, grace period, first payment due date ◦ Rights and Responsibilities  Explain the use of the Master Promissory Note ◦ Multi--year feature  Explain interest and capitalization ◦ How interest accrues and is capitalized ◦ Option to pay unsubsidized interest while in school

 Review repayment options ◦ Standard, Extended, Graduated, Income-Based Repayment, Consolidation  Provide sample monthly repayment amounts ◦ Based on a range of student indebtedness or based upon average Stafford indebtedness of students at the same school or in the same program of study  Stress importance of repayment  Stress repayment is required regardless of educational outcome or employability  Review deferments and forbearance

 Describe consequences of default ◦ Adverse credit, collection costs, ineligible for deferments, seizure of state or federal tax refund, ineligibility of FSA funds  Provide NSLDS information (purpose and how to access)  Provide school contact for questions  Stress importance of keeping the school/servicer informed of name, address, enrollment changes

 Stress importance of good record keeping  Discuss budgeting  Remind borrower of Exit Counseling

 Panel discussion of SUNY, Private and Community Colleges

Direct Loan Exit Counseling Direct Loan Exit Counseling

◦ Must be completed before Stafford and Grad PLUS borrowers graduate or within 30 days of notification of withdrawal or drop below ½-time status ◦ May be conducted in person, by audio visual presentation, or by interactive electronic means    Direct Loan Exit Counseling brochure ( ) ◦ School must document completion of counseling

 Review information from entrance counseling ◦ Consequences of default  Adverse credit, collection expenses, litigation ◦ Importance of repayment obligation  Regardless of dropping out, ability to find a job, or satisfaction with program ◦ Use of Master Promissory Note  Review repayment options ◦ Standard, Extended, Graduated, Income-Based, etc  Review plan features, sample payments, interest charges, total payments  Review option to prepay without penalty and change repayment plans

 Provide an average anticipated repayment amount on: ◦ His/her indebtedness ◦ Based upon a range of average student indebtedness

 Provide loan consolidation information ◦ Effects of consolidation on total interest to be paid, option or prepay the loan or change repayment plans. ◦ Can be accessed at  Discuss debt management strategies and tax benefits  Review forbearance and discharge/cancellation options  Inform student of NSLDS loan information  Inform student of FSA Ombudsman Office

 Ensure borrower understands their rights and responsibilities  Collect and update personal and contact information ◦ Must send to DL Servicing within 60 days of exit  School must document compliance of exit counseling

 Panel discussion of SUNY, Private and Community Colleges

Perkins Entrance Counseling Perkins Entrance Counseling

◦ Must be completed prior to first disbursement of Perkins loans for the award year ◦ May be conducted in person, by audio visual presentation, by interactive electronic means, or by a third party provider   Third-party providers such as Campus Partners  SUNY schools – Student Loan Service Center ◦ School must document completion of counseling

 Rights & Responsibilities under Perkins Loan Program  Loan is for educational purposes only  Loan must be repaid and the school holds the MPN ◦ Must notify student the amount of each Perkins disbursement made under the MPN, option to cancel disbursement or the loan  Name & address of school to which debt is owed  Name & address of servicing agent

 Maximum annual and aggregate loan amounts  Effect of accepting Perkins loan on other types of student aid  Total Perkins indebtedness and estimated monthly payment  Perkins consolidation and refinance options

 Notice of Dept. of Defense program for repayment based on certain military service  Complete list of Perkins charges – deducted or paid separately  School will report balance of loan to national credit bureau annually  Collect updated borrower information ◦ Name, address, phone, spouse, employer, references

 Panel discussion of SUNY, Private and Community Colleges

Perkins Exit Counseling Perkins Exit Counseling

 Upon withdrawal or drop below ½ time status - exit material must be mailed within 30 days of notice of withdrawal  Completed prior to student graduating  May be done in person, in groups, by audiovisual presentation, by interactive electronic means, or by third parties

 Disclose pertinent repayment information  Contact information to request a copy of MPN  Contact information for school  Contact information for servicer (which may be the same as the school)

 Name and address to whom payments should be sent  Estimated amount owed and repayment begin date  Total interest charges paid per repayment schedule  School must document Perkins exit completion

 Panel discussion of SUNY, Private and Community Colleges

 Entrance  Exit via

Questions/Comments

 Federal Handbook ◦ Volume 2; 2-80 to 2-84 ◦ Volume 6; 6-62 to 6-63; to 6-113