1. State Aid Workshop September 26, 2012 and October 4, 2012

2.  Loan Program Highlights ◦ College Access Loan (CAL) ◦ Texas B-On-Time (BOT)  Online Status Messages  Online Allocation Reporting  Online Cancellation and Change Requests

3. Students do not have to demonstrate financial need to receive CAL, which may be used to cover all or part of a student's Expected Family Contribution (EFC). However, the amount of federal aid for which a student is eligible must be deducted from the cost of attendance in determining the CAL loan amount. Students must:  Be a Texas resident; and  Be enrolled at least half-time in: ◦ a course of study leading to an associate's, bachelor’s, graduate, or higher degree; or ◦ an approved alternative educator certification program  Meet the satisfactory academic progress requirements set by the institution;  Receive a favorable credit evaluation or provide a cosigner who has good credit standing and meets other requirements

4. Cosigners must:  Be at least 21 years of age;  Have a regular source of income;  Not be the borrower or the spouse of the borrower;  Receive a favorable credit evaluation;  Be a U.S. citizen, or a permanent U.S. resident and reside in the U.S. or in a U.S. territory 2012-2013 Interest Rate  A fixed annual rate of 5.25% Repayment  Loans have a six-month grace period from the date a borrower ceases to be continuously enrolled as at least a half-time student at an eligible institution;  Principal balances under $30,000 have a ten-year repayment period with minimum monthly payments of $50;  Principal balances of $30,000 or more have a repayment period up to 20 years

5. Provides eligible Texas students no-interest loans to attend colleges and universities in Texas. If the student meets specified goals, the entire loan amount can be forgiven upon graduation. Applicants must:  Be a Texas resident or be entitled to pay resident tuition rates as a dependent child of a member of the U.S. armed forces; and  Meet one of the following academic requirements: ◦ Have graduated in the 2002-2003 academic year or later from a high school operated by the U.S. Department of Defense or from a public or private high school in Texas under the recommended high school program, or its equivalent; or ◦ Have earned an associate’s degree from an eligible institution no earlier than May 1, 2005

6. Applicants must:  Not have been granted a baccalaureate degree;  Be enrolled full time in an undergraduate degree or certificate program at an eligible institution;  Have completed a FAFSA and be eligible to receive federal financial aid Annual Loan Amounts for 2012-2013  4-year public and private institutions: $3,700/semester ($7,400/year)  2-year public and private junior colleges: $1,200/semester ($2,400/year)  Public technical colleges: $2,200/semester ($4,400/year)  A 3% origination fee will be deducted from the loan proceeds REPAYMENT  Loans have a 6-month grace period  Loans have a 15-year repayment period  Loans have a 0% interest rate

7.  Student’s Required Documents  Student’s Credit (CAL)  Cosigner’s Information (CAL)  Processing Status

8. ConditionMessage Both Promissory Note & Self- certification Form Received Promissory note and self-certification form received Promissory Note Received, No Self-certification Form Promissory note received, waiting for self- certification form Self-certification Form Received, No Promissory Note Self-certification form received, waiting for promissory note No Promissory Note or Self- certification Form Waiting for promissory note and self- certification form

9. ConditionMessage Credit Denied or Student Elected to Opt Out Loan requires a cosigner Credit Approved Credit approved, cosigner optional Credit Needs Review Credit requires further review

10. ConditionMessage Credit Approved, Promissory Note Received Cosigner approved and promissory note received Credit Approved, Promissory Note Not Received Cosigner approved but waiting on promissory note Credit Denied Current cosigner not approved, new cosigner required Credit Needs Review Cosigner requires further review Cosigner Provided But Has Not Applied Waiting for cosigner's application and promissory note Cosigner Not Provided No cosigner information on file

11. ConditionMessage Missing or Conflicting Information Errors on application, contact us Waiting for Student or Cosigner Documents, and/or Final Review Application in process Application Pre-Approved (CAL) Waiting on school’s verification of eligibility School Allocation Exhausted Funds currently not available, contact your school for options

18. School Summary Report Links to Details

20. Disbursed Report EFT Initiated

21. Pending Future Disbursements Funding Arrives in 11 Business Days

22. Pending Disbursements – Need Documents Missing Documents

23. Uncertified Pre-Approved Applications All Documents Received and Requirements Met. School Certification Final Step In Approval

24.  Available Pre-disbursal Loan Changes ◦ Disbursements  Full Cancellations  Partial Cancellations ◦ Reductions and Increases Within Approved Amount ◦ Change Disbursement Date Forward ◦ Change Disbursement Date Back  Due to Federal Regs 1 st Disbursements Cannot Be Changed ◦ Loan Cancellations ◦ Loan Period Changes

40.  Use the “Contact Us” link in HHLoans.com  Data is encrypted  Entire Loan Origination staff is notified when received

43.  Questions?

44.  Herbert Mokarzel, Loan Representative III  Herbert.Mokarzel@thecb.state.tx.us Herbert.Mokarzel@thecb.state.tx.us  (512) 427-6379  Albert Contreras, Program Manager  Albert.Contreras@thecb.state.tx.us Albert.Contreras@thecb.state.tx.us  (512) 427-6585  Janie Miramontes, Director of Client Services  Janie.Miramontes@thecb.state.tx.us Janie.Miramontes@thecb.state.tx.us  (512) 427-6352