Entrance-Exit Counseling - casfaa - PowerPoint by xiangpeng

VIEWS: 0 PAGES: 63

									Entrance / Exit
Counseling:
Regulations, Updates
and Best Practices

CASFAA 2009,
San Jose
We Will Discuss
   FFEL Loan Counseling Requirements and
    Technical Corrections.


   Delivery Tools and Resources
     Mapping Your Future® resources to
      meet regulatory requirements and
      assist students
Entrance & Exit Counseling
Before HEOA
  Requirements discussed only in the regs
   (§682.604(f))
  Requirement for one set of information for
   Grad PLUS borrowers with Stafford Loans
  Different set of information for Grad PLUS
   borrowers without Stafford Loans
  No requirement for Grad PLUS borrowers
Post HEOA (effective 8/14/08)
   Entrance Counseling
     Adds entrance counseling to statute
     Spells out method options
      in-person
      written form, borrower must sign & return
      online, borrower must acknowledge
     Interactive counseling with tests/quizzes
      encouraged
     Much more extensive list of requirements
FFEL Loan Counseling
Requirements
   Lenders and guaranty agencies were once prohibited from
    presenting required entrance counseling sessions in
    person as of July 1, 2008.
   HEOA provisions allow for lenders and guaranty agency
    staff to conduct both entrance and exit. The institution
    must remain “in control” of session.
   Detailed guidance is available in the 2008-09 Federal
    Student Aid Handbook, Chapter 2, pages 2–78 to 2–84 at
    ifap.ed.gov
Stafford Entrance Counseling:
Requirements
   Must be completed before initial
    disbursement of loan
   Required elements of counseling include
       Reinforce importance of repayment
       Describe consequences of default
       Explain use of Master Promissory Note
       Stress that repayment is required regardless
       Provide sample monthly repayment amounts
Stafford Entrance Counseling:
Good Practices
   Review terms and conditions of loan
   Review repayment options
   Discuss how to manage expenses
   Communicate changes to lender
   Review deferments, forbearance, etc.
   Review borrowers’ rights and responsibilities
Stafford Entrance Counseling:
Good Practices (cont.)
   Remind borrowers of the refund and
    other policies affecting withdrawals
   Reinforce the importance of keeping loan
    records
   Remind borrowers about exit counseling
Stafford Exit Counseling:
Requirements*
   Review required information provided at
    the entrance counseling session
   Provide an average anticipated monthly
    repayment amount
   Review repayment options
   Discuss debt management strategies


*   These requirements will apply to Grad/Professional PLUS
    borrowers as of 7/1/08 if they have a Stafford loan.
Stafford Exit Counseling:
Requirements* (cont.)
   Review forbearance, deferment, and
    cancellation options
   Discuss NSLDS and FSA Ombudsman
   Ensure that borrowers understand their
    rights and responsibilities
   Collect and update personal and contact
    information

*   These requirements will apply to Grad/Professional PLUS
    borrowers as of 7/1/08 if they have a Stafford loan.
Stafford Exit Counseling:
Requirements* (cont.)
   Personal and contact information
    collected at exit must be provided to
    guaranty agency within 60 days
   If borrower withdraws without notifying
    school, then the school must
      Be confident borrower has opportunity to complete on-
       line counseling, or
      Mail exit counseling material to borrower at last known
       address within 30 days of determining borrower
       withdrew
*   These requirements will apply to Grad/Professional PLUS
    borrowers as of 7/1/08 if they have a Stafford loan.
Stafford Exit Counseling:
Good Practices
   Provide name and address of borrower’s
    lender(s)
   Explain how to complete deferment
    request
   Suggest keeping copies of all
    correspondence
   Discuss pros and cons of consolidation
   PUT Servicing information
Entrance Counseling Requirements:
Grad/Professional PLUS Borrowers
    Required if no Grad/Professional PLUS
     disbursement in the past (before 7/1/08)
    Required before first disbursement
    Provide sample monthly repayment
     amounts based on:
      Range of student loan indebtedness, or
      Average indebtedness* of borrowers at same
       school or in same program at school

     *Based on those who received Grad/Prof PLUS
Entrance Counseling Requirements:
Grad/Professional PLUS Borrowers
    If borrower has a prior Stafford loan, then
     provide comparison of:
      Maximum interest rate of PLUS versus
       Stafford
      Periods when interest accrues of PLUS versus
       Stafford, and
      Start of repayment of PLUS versus Stafford

     Average Indebtedness Examples.ppt
Entrance Counseling Requirements:
Grad/Professional PLUS Borrowers
    If borrower has not received a prior
     Stafford loan, school must
      Explain the use of the Master Promissory
       Note
      Emphasize the importance of repayment
      Describe the consequences of default
      Emphasize that repayment is required even if
       program is not completed or employment in
       field of study is not obtained
Why In-Person Loan Counseling
   Meets one of the Department of Ed’s
    required methods
   Can accommodate large groups of
    students
   Default management/prevention tool
     Target high risk populations

   Studies prove the best learning occurs in
    instructor lead sessions*

   *Source: Garman/Gappinger
Strategies For A Successful
Loan Counseling Event

   Select a target audience, if necessary
     Consider common predictors of default
       –   GPA
       –   Major
       –   Graduation
       –   Continuous enrollment
       –   Income of borrower
       –   Indebtedness
When Conducting A
Loan Counseling Session
Ensure students know what to expect

   Ensure students know what to expect
       How long the session will take
       Describe handout materials
       Documentation to be collected
       Q and A
   Use examples relevant to your audience
   Check for understanding
Delivery Tools
and Resources
Mapping Your Future®
   Provides services to schools for the ultimate
    benefit of students
   Provides variety of resources (career
    exploration, college preparation, paying for
    college, money management)
   Provides neutral content, encouraging
    students to look at all sources of free funding
Entrance counseling
Conducted in person, by audiovisual
presentation, or by interactive electronic means
before disbursement
 Stafford
 Perkins
 Nursing
 Health Professions
 Grad PLUS
 TEACH Grant (DE)
Exit counseling
Conducted in person, by audiovisual
presentation, or by interactive electronic means
shortly before student ceases at least half-time
study at school
 Stafford
 Perkins
 Nursing
 Health Professions
 Grad PLUS
 TEACH Grant
Recommendations
   Counseling for each new loan
   Include money management information
Online Student Loan Counseling
Counseling options
   Stafford entrance (English      Health Professions entrance
    and Spanish)                    Health Professions exit
   Stafford exit (English and      Grad PLUS entrance
    Spanish)                        Grad PLUS exit
   Perkins entrance                Stafford and Grad PLUS
   Perkins exit                     combined entrance
   Stafford and Perkins            Stafford and Grad PLUS
    combined entrance                combined exit
   Stafford and Perkins            TEACH Grant exit
    combined exit                   Financial literacy
   Nursing entrance
   Nursing exit
Demo session
Demo session
Regulatory
requirements
Sample repayment: entrance
   Range of indebtedness (break out graduate
    borrowers) or average indebtedness of
    borrowers in the same program of study at the
    same institution
   Range of indebtedness chart in counseling
    sessions
   Can still provide school-specific information
Range of indebtedness chart
Sample repayment: exit
   Information on repayment plans with
    description of features of plans and samples
    showing average monthly payments with
    difference in interest paid and total payments
    shown for each
   Sample payment scenario in counseling
    sessions
   Can still provide average indebtedness for your
    school
Exit repayment plan chart
Indebtedness customization
Student questions
    Full
                     Note
  questions
    Individual e-
        mail         Batch e-mails
    notifications


      Individual
                       Printable
     confirmation
                        reports
    records online
Maintain documentation

 Paper    One day     Date range   Ad hoc
                                            Individual
records                                       Search


 Export   Delimited      CSV       XML
records

School        Automate export
Express          to FAMS
SchoolExpress
                    CSV


      Variety of
                    TXT
       formats


      Requires
                    XML
    programming


       Request
    documentation
 Archive policy
Mapping Your Future is not a record keeper.
 Six months of data online
 Two and ½ years prior years available upon
  customer service request
 Older data unavailable
ExitExpress
 Clearinghouse     School ensures
    provides         guarantor
   guarantor          retrieves
     name              record



  Mapping Your
                     Guarantor
 Future provides
                     retrieves
    record to
                      record
    guarantor
FAO Access
Area
New school




             MYF staff
    School
Current schools

      Counseling
                        Staff access
        types




    Retrieve records    Customize



                       Mapping Your
    Correspondence
                       Future Higher
       and links
                         Ed News
 User access levels
   Super user     Additional users

• Grant access   • Account
• Inactivate       • Customize
  access           • Retrieve
• Customize          records
• Retrieve       • Retrieval
  records        • SchoolExpress
  User access levels
   Super user and       Mapping Your Future
   account access              staff
• Change notification   •   Inactivate super user
  options               •   Change school name
• Customize account     •   Change OPE-ID
                        •   Add counseling
                            types
Customization
   Test         Expanded     Indebtedness
 questions       content      information


  Budget        Counseling
                             Student form
 calculator     start page



          End URL     School logo
Customized questions
   Default questions
   Select questions
   Minimum number
   Can submit new questions
Expanded counseling
Building good credit

Budgeting

Saving

Credit card use

Credit reports
Indebtedness levels
Indebtedness display
Budget calculator


Excluded from entrance

Included in exit
Counseling start page
   Should include school-specific
    information
       Sample repayment information (entrance)
       Contact information for questions
       Half-time definition
       Appropriate offices to contact if withdraw
   Other ideas
     Important dates/deadlines
     Disbursement procedures
   Refund policies
Creating start page
          •   Use Wizard to create
          •   Edit
          •   Preview
          •   Submit for approval
Process   •   Add new link to your page


          •   Type text directly on page
          •   For charts – use an image
          •   Make links open in new window
  Tips    •   Save changes every 15 minutes
End URL



                                Click
Follow link to    Complete
                              “Exit” to
 counseling      counseling
                              end URL
Displaying school logo
   Customized start page
   Cobranding document provides information to
    display logo on all pages
     Programming needed
     Also includes renaming “exit” button and end URL
     Request documentation
Student form
   Regulatory fields vs. all fields
   Require borrowers to complete all
    fields
     References during entrance
     Great if high drop-out rates
Summary
Current school checklist

                                 Retrieve
Counseling
               Staff access     counseling
  types
                                  records


        Customize         Review
         sessions     correspondence
Resources
   Mapping Your Future Higher Ed News
   OSLC User’s Guide
   SchoolExpress documentation
   Cobranding documentation
   Customized page e-mail
   Printable borrower instructions
   Conduct sample counseling session
Future of OSLC
   New counseling sessions
   Future releases of OSLC
   PESC Online Loan Counseling standard
Early Awareness and Outreach
•   Explore careers
     • CareerShip
•   Prepare for college
     • Make High School Count
•   Pay for college
•   Default Prevention
•   Success in College Guide
•   Money Management
     • Calculators
     • Financial Literacy Counseling
•   Show Me the Future®
Social networking tools
   Facebook fan page
    facebook.com/pages/Mapping-Your-
    Future/64772249281?ref=share
   LinkedIn
    www.linkedin.com (Mapping Your Future
    group)
   MySpace page
    www.myspace.com/myfmanageyourmoney
   Twitter
    @MYFinc
Contact information
             Beth Ziehmer
                OSLC
    feedback@mappingyourfuture.org
            (573) 796-3730

             CariAnne Behr
       Counseling powered by MYF
    carianne@mappingyourfuture.org
            (573) 634-8461

         Catherine Mueller
        Mapping Your Future
    cathy@mappingyourfuture.org
          (940) 497-0741

								
To top