1. student Financial aid “A Progress Report” Accomplishments
Regent Education Software Partnership
Student Loan Cohort Default Rates
Dr. Gloria S. McCall , V.P.
September 16, 2016

2. Financial aid accomplishments over the past 10 months
Developed a restructured organization plan to address standardization & centralization of financial aid.
Phased-in approach to staff the Central Processing Center (CPC).
Created new FA training manual for CPC staff
Two-day Dept. of Ed. training for staff
Non-term, non standard terms & modules
Return to Title IV Funds processing
Verification and Gainful Employment
Non-term, Non-standard terms & Modules
12:30 – 4pm: Return to Title IV (R2T4)
Thursday:
9am – Noon: Federal Update & Gainful Employment
1pm-4pm: Verification Training.

3. Financial aid accomplishments over the past 10 months
Created guides to Financial Aid Policy & Procedure Manual.
Federal Pell Grant
Return to Title IV (R2T4) Funds process guidelines
Provided >36,000 early financial aid estimated awards (first ever!)
Secured initial 6 month contract with Regent Education
Discovery, research and planning phase
Entered into a 5-year partnership to deliver:
Backroom processing of FA and
Multiple forms of delivery

4. central processing Center
The development and implementation of the new model
for processing financial aid is significant and complex; and requires a cultural and operational shift, that impacts all 16 colleges.

5. Cultural and operational shift
Compliance - Operational Efficiency – Standardization - Customer Service
Audit Treasury Reconciliation
Data Cleanup
Integrations
Network
Security
Program Applicability
Gainful Employment
Senate Rules
Academic Calendars
Marketing
Public Relations
Social Media
Institutional Research
Reporting
Data Analysis
SEM
Retention
Admission
Academics
Student Services
Technology Solutions
Finance
Central Processing Center

6. Regent Education Software Partnership
Financial aid
Regent Education Software Partnership
September 16, 2016

7. Regent Education-New Software Provider for FA Operations
SEARCH PROCESS AND RESULTS
REGENT 8 - a financial aid management software system designed to manage financial aid across all enrollment models and create efficiencies through standardization and workforce optimizations.
The only software provider to accommodate centralized processing operations and non-standard forms of delivery.

8. Regent education December 2015 initiated a 6-month contract
Discovery phase
Evaluate required software setup
Technical integration and
Customization of unique software assessments
June 2016 – Discovery Results
Determined that Regent Education can provide the necessary functionality to support a centralized financial aid operation and provide multiple forms of delivery.

9. PHASE I SOFTWARE IMPLEMENTATION—REGENT REVIEW
July 2016 signed 5-year software subscription agreement with Regent Education
Phase I Regent Review – Scheduled launch November 2016
Implementation of the FA verification process for more than 40,000 students selected by Department of Education (DOE)*.
Software supports the exchange of data and student records from DOE providing significant efficiencies.
*50% of financial aid recipients are selected for verification

10. PHASE II SOFTWARE IMPLEMENTATION—REGENT 8
Full suite of Regent 8 software will manage the full life cycle of financial aid processing:
Financial aid packaging
Disbursement of funds
Student loan processing
Verification
Export/import of student data records across the various enrollment models
Significant data cleanup, programming and procedural processes must take place prior to full implementation.
Technology Solutions estimates approximately six to eight months of programming work prior to full implementation (phase II).

11. PHASE II Testing Prior to Roll-Out
Financial Aid will run parallel systems in order to provide adequate testing.
(PeopleSoft & Regent 8)
Financial Aid is currently working with Regent 8
to determine phase II go-live date.

12. Student Loan Cohort Default Rates
Financial aid
Student Loan Cohort Default Rates
September 16, 2016

13. Student loan default rates UPDATE
Student loan default rates continue to be a challenge for several KCTCS colleges
Contributing Factors:
Open-access system
Large demographic of students who are underprepared for college
Financial responsibility (financial literacy)

14. Third party loan Default prevention services
All colleges are contracted with third party servicers
to provide default prevention services. (KHEAA, ED Financial and ASA)
15 colleges have been under contract for the last two years.
Impact realized after the third year of a servicing contract.
Final default rates are published in late September nationally. Please add at the bottom of this slide in light blue.
Final default rates published September annually.

15. COLLEGE
Final FY 2012 CDR
Draft 2013 CDR
Estimated Rates After Appeals
Ashland Community & Technical College
27.60%
30.10%
30.00%
Big Sandy Community & Technical College
27.10%
26.9%
N/A
Bluegrass Community & Technical College
24.0%
22.40%
Elizabethtown Community & Technical College
25.80%
25.70%
Gateway Community & Technical College
28.90%
29.40%
29.00%
Hazard Community & Technical College
31.90%
28.60%
Henderson Community College
22.50%
27.50%
Hopkinsville Community College
20.40%
23.20%
Jefferson Community & Technical College
25.00%
Madisonville Community College
18.40%
21.10%
Maysville Community & Technical College
28.80%
30.80%
30.20%
Owensboro Community and Technical College
24.20%
26.30%
Somerset Community College
29.20%
27.30%
26.40%
Southcentral Kentucky Community & Technical College
29.30%
29.10%
28.50%
Southeast Kentucky Community & Technical College
32.30%
32.20%
31.80%
West Kentucky Community & Technical College
22.90%
26.70%
26.60%
KCTCS Average
26.14%
27.09%
Cohort Default
Rates
Ashland: First year above 30%
Maysville: First year above 30%
Southeast: Second year above 30%
Highlights
Red - danger zone
Yellow - caution trending upward
Green - safe zone
Schools with default rates above 30% for three consecutive years may lose eligibility to participate in the federal financial aid programs

16. Two College Presidents updates on:
Student Loan Default Rate
Student Enrollment Growth and Success

17. questions