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					                              BURSAR’S DIVISION
                      STUDENT ACCOUNTS DEPARTMENT

The Student Accounts Department disburses loans, grants and scholarship payments to
students and accounts for related balances and expenses. The department also collects
promissory note payments from students; provides entrance and exit counseling to
borrowers; administers and collects student single-semester, short-term loan funds; and
authorizes deferments of student account charges. The department provides loan
collection and servicing on federal Perkins loans and University loan funds. Each year the
department prepares and distributes 1098-E (Student Loan Interest) statements to
borrowers.

Summary of Major Accomplishments

Graduate Plus Entrance Counseling
Graduate or professional students in a graduate program may receive a Direct PLUS
Loan. To ensure that borrowers understand the responsibility and the obligation they are
assuming, the federal government now requires them to participate in loan counseling
prior to receiving a Direct Graduate Plus loans, effective July 2008. When the first-time
student borrower is awarded a loan, entrance counseling must be completed before the
aid is disbursed to the student. The Student Accounts Department has worked with the
application development and data management programmers to implement the processing
changes needed to ensure that entrance counseling requirements are met prior to
disbursing the Graduate Plus loan funds.

Teach Grant Program
The Teach Grant Program is a new federal grant program authorized under Title IV of the
Higher Education Act to encourage highly qualified teachers to serve low-income schools
in high-need fields. The Teach Grants became available July 1, 2008. Participation in the
Teach Grant program is optional. Initial concerns are that 80% of students will not
qualify to maintain the grant and will have it convert to a Federal Direct Unsubsidized
loan. The Student Accounts department has two staff members on a review committee to
make a recommendation concerning the University of Georgia’s participation in this
program.

Loan Collection

Student Loan Collection
UGA has experienced low cohort default rates in the past due to successful in-house
collections and the utilization of leading student loan collection agencies. The department
continues working with the collection agencies to help lower cohort default rates. The
agencies offer many online services which provide “real time” information on the
accounts placed with them. This greatly assists the department in gathering information
and administrating delinquent accounts in a timely matter. However, the department did




                                           F-32
experience an overall decrease in collections primarily due to the state of the economy
and the decrease in loan consolidations.

Imaging and Document Retention/Destruction
During FY 2008, the department started and completed imaging of prior year loan
documentation, paid out letters, promissory notes and collection agency statements. The
only files remaining to image are loan write-offs and assignments to the Department of
Education. This task should be completed by the end of Fiscal Year 2009. The
department continues to verify the information in the imaging software and then destroys
paper copies by shredding. This process has proven to be a very secure and efficient way
of storing and retrieving borrowers’ information and loan documents. Since no paper
copies are kept in the office, this reduces time required to file paperwork and helps with
the security of loan documents.

Information Stored in Loan Collections Software
In FY 2008, the department completed entering the entrance/exit/annual questionnaire
information into the loan collection software. The department can now enter the
information, image the documents and then destroy them by shredding. This electronic
process helps ensure the security of borrowers’ personal information because there are no
longer any paper documents kept in the office.

Loan Collections Software Upgrades
The department upgraded the loan collection software (SCT-Sunguard Campus Loan
Manager). In this upgrade, several enhancements were provided, including National
Student Loan Data System and Credit Bureau reports, improvements to aid in account
reconciliations and overall management of the loan collection processes.

Securing Borrowers’ Personal Information
In an effort to further secure borrowers’ personal information, the department
implemented the use of the last four numbers of the borrower’s social security number
versus the use of the entire number. Departmental forms were revised to accomplish this
task. This helps ensure the security of a borrower’s personal information.

Summary of FY 2009 Goals

MPN/Entrance Counseling Notification Consolidation
The Student Accounts Department distributes separate notices concerning first-time
student borrower requirements for entrance counseling and the need to sign a Master
Promissory Note (MPN). The department is in the process of consolidating this
information into one pressure-sealed letter, which will be sent to first-time borrowers
when they are awarded William D. Ford Federal Loans.




                                           F-33
Teach Grant Program Recommendation
The Teach Grant Program Review Committee will meet periodically to review Teach
Grant information as it becomes available. Some of the proposed rules for the Teach
Grant are still under consideration. Once the final rules are reviewed and discussed, the
review committee will make a recommendation concerning the University of Georgia
awarding the Teach Grant to students.

Automated Clearing House (ACH) Payment Method for Loan Collections
The department will work to implement a process to accept ACH payments from
borrowers. This will aid in the timely manner of receiving payments and will make
payment posting more efficient.

Loan Servicing Web Site
The department will begin the process of reconstructing the loan servicing portion of the
Web site. The intent of the reconstruction is to provide student borrowers with data in a
format that is more informational and beneficial.

Statistical Information

Growth in Amount of Financial Aid Disbursements
The department disburses federal and state-funded loans, grants and scholarships as well
as University and privately funded scholarships and loans. During FY 2008, $46,542,286
of loans, grants and scholarships were applied to student account balances and disbursed
either via check or direct deposits to students as the remainder of financial aid proceeds.
The department continues to see an increase in the number of students selecting direct
deposit over a check to receive the remainder of payments.




                                           F-34
The following graph illustrates the growth in financial aid disbursement from 2004-2008.

Growth in Financial Aid Disbursement 2004-2008


         Growth in Amount of Financial Aid Disbursements

  250,000,000

  200,000,000

  150,000,000

  100,000,000

   50,000,000

              0
                     2004         2005         2006         2007         2008


The following graphs illustrate activity on loan funds advanced and collected by the
University for the period 2004-2008:

UGA Federal Perkins Loans, University Trust Funds and Emergency Loans
Advanced


         Student Loan Advances for the Federal Perkins, University
                      and Emergency Loan Funds

  $4,000,000
  $3,500,000
  $3,000,000
  $2,500,000
  $2,000,000
  $1,500,000
  $1,000,000
   $500,000
            $0
                    2004         2005         2006         2007         2008




                                          F-35
UGA Federal Perkins Loans, University Trust Funds and Emergency Loan Funds
Student Loan Collections (Principal and Interest)


         Student Loan Collections (Principal and Interest) for the
         Federal Perkins, University and Emergency Loan Funds

  $4,000,000
  $3,500,000
  $3,000,000
  $2,500,000
  $2,000,000
  $1,500,000
  $1,000,000
    $500,000
           $-
                  2004       2005          2006   2007        2008




UGA Federal Perkins Loans, University Trust Funds and Emergency Loan Funds
Student Loans Outstanding


           Student Loan Outstanding for the Federal
        Perkins, University and Emergency Loan Funds

  $12,000,000
  $10,000,000

   $8,000,000
   $6,000,000
   $4,000,000

   $2,000,000
            $-
                   2004      2005          2006    2007       2008




                                    F-36
                                                               STUDENT ACCOUNTS
                                                              ORGANIZATION CHART




                                                                                Manager
                                                                              Shannon Lay




                     Assistant Manager                                                    Loan Collection
                       Deidra Jones                                                       and Accounting                                        Reception


                                                                                                                                           Sr. Operations Manager
                                                                                                                                               Marcie Berrong
F-37




       Accountant                         Accountant                    Sr. Accountant                Loan Collection Officer II
       Kim Ingram                        Kristie Harwell                Michele Sellers                     Mike Tiller
                                                                                                                                                   Customer Service Rep.
                                                                                                                                                      Brandi Aycock
        Sr. Accounting Technician           Sr. Accounting Technician        Accounting Technician             Loan Collection Officer I
               Aimee Ginn                         Mary Burger                   Tracy McNabb                         Gail Sloan
                                                                                                                                                   Customer Service Rep.
                                                                                                                                                       Christy Angel
        Sr. Accounting Technician           Sr. Accounting Technician
             Jennifer Mathews                      Lena Anglin                                                                                     Customer Service Rep.
                                                                                                                                                       Donna Dorsey
        Sr. Accounting Technician           Sr. Accounting Technician
              Melanie Jones                       Kenzie Bates

				
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