ISAC Perf Rpt by sanmelody


									                                              Attachment I

                                              SECTION I:

Mission Statement

           To Benefit Society by Enabling Individuals to Develop to Their Fullest Potential
                                Through Access to Quality Education

Environmental Analysis

The following factors influence the Illinois Student Assistance Commission’s ability to provide sufficient
grants to make college affordable - forwarding Goals 3 and 4 of The Illinois Commitment.

State Budget Problems
§   State budget problems negatively impact ISAC’s ability to address Goals 3 and 4 of The Illinois
    Commitment. Several years of reduced or level funding to ISAC has caused award levels to fall, and
    low-income students, often minority, are being financially squeezed out of four-year schools.

Rising College Costs
§   Rising college costs exacerbate the problems described above by increasing the affordability gap for
    students and families. The gap between the maximum MAP award and average public university
    tuition and fees is now over $2,000.

Increasing Size of Population Served by ISAC
§   The population served by ISAC is increasing due to the lack of job opportunities that is driving older
    students back to college, an increase in the high school graduating class and an increase in the college
    participation rate. Furthermore, stagnant family incomes are reducing the ability of parents to help
    pay for college.

                                                   Attachment I
                              SECTION II:

Goal 1: Higher education will help Illinois business and industry sustain strong economic

Fiscal Year 2004 Accomplishments

§   Made Programmatic Changes to MAP in Response to Application Volume Increases and Restored Partial
    Award Eligibility for Students in Their Fifth-Year of MAP Eligibility: For the 2003-04 academic year, MAP
    received an additional $6 million to help restore MAP eligibility beyond four years of full-time attendance, for a
    total appropriation of $338 million. Consequently, the eligibility unit cap was increased from 48 to 54 units,
    giving MAP recipients eligibility for the equivalent of half of a one-term award for fifth-year students. Demand
    for financial aid was up sharply in FY2004, with the number of eligible students significantly higher than the
    number last year. Further, the level of need demonstrated by those eligible applicants increased as well, as
    college cost increases continued to outpace both inflation and family income. In order to maximize the number
    of students helped, without diminishing each award amount to an insufficient level, every MAP grant was
    reduced by ten percent of the full award amount. The ten percent cut allowed nearly 10,000 more students to
    receive awards over last year. By imposing this across-the-board award reduction, ISAC was able to help the
    thousands of financially needy students, especially adult learners and very-low-income students who apply
    during the summer. ISAC provided awards to nearly 141,000 financially needy Illinois students in FY2004.

§   Continued Providing Specialized Scholarships and Grants: In FY2004, ISAC provided more than $45 million
    in targeted scholarships and grants. These financial assistance programs helped veterans and National Guard
    members, rewarded outstanding high school performance with aid based on merit, encouraged students to select
    a career in teaching, and offered incentives to save for college and for students to attend college in Illinois. This
    targeted aid provided more than 40,000 awards to Illinois citizens to help improve their workforce skills
    through higher education.

§   Helped Future Teachers Receive Their Degrees and Enter Illinois Classrooms: ISAC administered several
    teacher incentive programs, all of which are to aid in recruiting and retaining quality teachers for Illinois
    classrooms, especially in subject matter shortage areas and “hard-to-staff” areas. ISAC awarded teacher
    incentive scholarships or tuition waivers to approximately 1,800 qualified students in FY2004 through the
    Illinois Future Teacher Corps (IFTC) Program, the Minority Teachers of Illinois (MTI) Scholarship, and the
    Special Education Teacher Tuition Waiver (SETTW). The IFTC scholarship provided scholarships to
    postsecondary students enrolled at the junior level or above, who upon graduation, agree to teach in a non-profit
    Illinois public, private or parochial preschool, or an Illinois public elementary or secondary school. Recipients
    are obligated to sign a contract agreeing to teach for five years in Illinois. Priority consideration is provided for
    students who pledge to teach in either a hard-to-staff school and/or a teacher shortage discipline including Early
    Childhood Education. The MTI program targets minority students studying to become teachers, with the goal of
    increasing the number of qualified minority teachers in Illinois elementary and secondary schools; and, the
    SETTW program offers tuition waivers at public universities to 250 students studying to become teachers in a
    special education field.

§   Administered a Matching Grant Program for Illinois Teachers: ISAC administered a program to help teachers
    who have served in low-income schools repay their student loans. Through the new Illinois Teacher and Child
    Care Provider Loan Repayment Program, teachers who qualify for the federal Stafford Loan Cancellation for
    Teachers Program by teaching in an Illinois low-income school can receive an additional matching grant up to
    $5,000. Childcare providers can also qualify for these federal and state programs by working full-time in a
    childcare facility that serves a low-income community in Illinois for at least two consecutive years. In FY2004,
    29 students took advantage of the Illinois Teacher and Child Care Provider Loan Repayment Program
    representing approximately $150,000.

                                                    Attachment I
§   Aided in the Administration of the Illinois Scholars Program: ISAC helped in the administration of the Golden
    Apple Scholars of Illinois Program beginning in FY2004. This state funded program, created in 1988 by the
    award-winning teachers of the Golden Apple Foundation, recruits and prepares bright and talented high school
    graduates who represent a rich ethnic diversity for successful teaching careers in high need schools throughout
    Illinois. As many as 100 high school and college graduates are selected each year from public and nonpublic
    schools and universities throughout Illinois to receive a maximum of $28,000 – a $5,000 scholarship per year
    for four years, and an additional $2,000 stipend per year for four years to participate in activities of the six-week
    Golden Apple Summer Institute - for agreeing to teach for five years within eight years of graduation in “high-
    need” Illinois schools. The program includes mentoring and professional support to the scholars through the
    Golden Apple network at each university campus.

§   New Brochures Made Available to Students: Two new brochures were made available to students in FY2004 to
    use as a resource in planning their college finances, and both were made available for online order to ISAC’s
    partners via College Zone: Financing College – a compact overview of programs administered by ISAC, and
    Financing Teacher Education – an overview of programs designed for students who plan to teach in Illinois,
    that includes a removable side-by-side comparison of the various programs. In addition, a new Default
    Prevention Outreach brochure entitled “Graduate School Financing,” a joint venture between ISAC and IDAPP
    in conjunction with the Illinois Graduate School Organization, was designed to target debt management
    strategies to graduate and professional students.

§   Expanded Outreach to Adult Learners: ISAC continued to work with social service groups in FY2004 to
    promote financial aid awareness, specifically to adults, and garner support for funding for need-based aid, as
    well as distribute brochures and publications targeted to assist adult learners. In addition, starting in July, 2003
    ISAC began participating in a college and financial aid awareness fair every other month in the James R.
    Thompson Center with the purpose of informing adult learners about their options.

Fiscal Year 2005 Plans

§   Proposed MAP Formula Changes for FY2005 to Direct Aid Toward Low Income Students, Increase the Number
    of Students Receiving Aid, and Increase Award Amounts for All Students: For the 2004-2005 academic year,
    level funding was provided for MAP, totaling $338 million. The past several years, however, have presented
    challenging allocation decisions for the Commission, including the elimination of $20 million in FY2003 for
    awards to students who had already used the equivalent of 8 semesters or 12 quarters of MAP payments for full-
    time enrollment, i.e., fifth-year students. In addition, since FY2002, application volume has increased over 20
    percent and funding levels have decreased by almost 10 percent. The Commission, concerned about college
    access and affordability, made specific changes at FY2005 start-up to address these issues. Changes included
    elimination of the Expected Family Contribution (EFC) cap to address an equity problem that occurred with
    arbitrary cut-off points; lowering the reduction factor from 10 to 7 percent; and implementing a Tuition
    Equalization Factor (TEF) in the award eligibility calculation consistent with recommendations from the
    IBHE/ISAC Committee on Affordability that would redirect funds from higher income families that chose to
    attend higher-cost private institutions to lower income families. While many institutions supported the FY2005
    start-up formula adopted by the Commission, as did the Governor’s office, support was not unanimous. As part
    of the budget negotiations among legislative leaders and the Governor it was recommended that ISAC return to
    a variation of the FY2004 formula. In FY2004, over 50,000 eligible students did not receive awards due to lack
    of funding. ISAC estimates a similar level of suspended students for FY2005. ISAC expects to provide awards
    to more than 145,000 financially needy Illinois students in FY2005.

§   Expand Outreach to Adult Learners: ISAC will continue to maintain and expand relationships with community-
    based organizations, social service groups, and business partners that have been built over the years to promote
    financial aid awareness, specifically to adults, and garner support for funding for need-based aid, as well as
    distribute brochures and publications targeted to assist adult learners. In addition, staff will continue its outreach
    and awareness campaign promoting College Zone information to students and parents via public service
    announcements, transit ads and a grass roots mailing campaign to community organizations, libraries, churches,

                                                         Attachment I
    college representatives and local leaders. The FY2005 campaign will again focus on reaching at-risk, Latino,
    and minority students and their parents, and adult learners.

Fiscal Year 2005 Challenges

FY2005 plans to address Goal 1 will continue to be challenged by reduced and/or stagnant funding of the programs
that ISAC administers.

                                        MISSION-SPECIFIC INDICATORS

Performance  Relation to ISAC                     Performance
  Indicator  Mission/Objectives                       Goal              Data Source       FY2002    FY2003    FY2004
Economic Growth

National          Relates to strategic                                National
ranking of        objective to ensure that                            Association of
need-based        student aid programs            3rd or better       State Scholarship     5th       8th      Not yet
student aid as    address special                                     and Grant                               available.
a percentage      interests of the State                              Agencies
of the higher     and promote an                                      (NASSGAP)
education         educated workforce.                                 Annual Report
                  Relates to mission to
                  benefit society by
Number of         enabling individuals to         140,000 in          ISAC MAP
MAP               develop to their fullest        FY2002              database            140,744   132,025   140,907*
recipients        potential through
                  access to quality

Number of         Relates to program
students          intent to increase the          2,000 per           ISAC Data Book      2,076     2,621      2,001*
receiving         educational level of the        year
National          Illinois National
Guard grants      Guard.
*Numbers not yet final; represents an estimate.

    The shift in the ranking of need-based student aid as a percentage of the higher education budget from 5th to 8th
    is primarily due to state budget problems, however, this shift represents a small percentage point difference -
    14.1% in FY2002 compared to 13.5% in FY2003. The FY2004 ranking is not yet available. Relative stability or
    decreases in the number of recipients in MAP are also tied to state budget problems. The number of MAP
    recipients in FY2003, however, did increase due to the addition of $6 million to the FY2003 appropriation to
    help restore MAP eligibility beyond four years.

Goal 2: Higher education will join elementary and secondary education to improve
        teaching and learning at all levels

                                        MISSION-SPECIFIC INDICATORS

Performance         Relation to ISAC              Performance
  Indicator         Mission/Objectives                Goal              Data Source       FY2002    FY2003    FY2004

                                                        Attachment I
Teaching and Learning

Number of         Relates to strategic
students          objective to ensure that
participating     student aid programs            800 per year       ISAC Data Book   2,251     1,072       1,670*
in teacher and    address special
worker            interests of the State
shortage          and promote an
programs          educated workforce.
*Numbers not yet final; represents an estimate.

Goal 3: No Illinois citizen will be denied an opportunity for a college education because of
        financial need

Fiscal Year 2004 Accomplishments

§   Coordinated Statewide Activities for Financial Aid/Admission Awareness Month (FAAM) with high school
    counselors, financial aid administrators, lenders and community representatives and expanded promotion of the
    FAAM regional presentations and workshops. The 15th annual FAAM - taking place in February of 2004 - set a
    new record by holding a total of 112 Financial Aid Workshops, surpassing the original goal of reaching 100
    sites (25 percent more than last year), and assisting approximately 4,900 parents and students throughout the
    state with completion of the Free Application for Federal Student Aid (FAFSA) and promotion of the college
    admission and financial aid processes. In addition, a new College Goal Sunday initiative was added in Illinois in
    FY2004 to complement existing FAAM activities and focused on targeting high-need at-risk communities at
    several individual sites on one Sunday in February 2004.

§   College Zone Outreach Centers Opened Statewide: ISAC, in partnership with the Illinois Community College
    Board, opened student resource centers at every Illinois community college campus during FY2004. College
    Zone Outreach Centers provide students and families with on-site computer access to the Web
    site for planning information, year-round assistance for FAFSA (financial aid application) completion, and
    financial aid counselors available to answer questions and provide information on planning and paying for

§   Increased Student Outreach Efforts: ISAC conducted more than 280 outreach events intended to deliver
    information about the importance of postsecondary education and training. ISAC’s Client Information Services
    (CIS) staff maintains partnerships with 39 community organizations or business partners throughout the state of
    Illinois and in FY2004 developed an additional 30 new partnerships. Of these community and business partners,
    the majority of these organizations are focused on assisting low-income and minority students and 23 are
    specifically focused on helping Latino students and their parents. In FY2004, more than 120,000 parents and
    students attended an ISAC outreach event.

§   Continued to Promote the Importance of Higher Education at the Illinois State Fair: ISAC staff continued to
    promote the importance of higher education by showcasing the College Zone Web site in Tech Town at the
    2003 Illinois State Fair and providing ISAC information to state fair attendees inside the Governors’ Tent.

§   Provided Awards to more than 17,300 Financially Needy Freshmen Through the Illinois Incentive for Access
    Program: ISAC paid about $6.8 million to needy freshmen who attended college during the academic year
    2003-2004. IIA grants target the most needy students a help increase the diversity of institutional student
    bodies. Due to an increase in the number of eligible applicants, awards were suspended for those students
    whose FAFSA’s were received on or after August 2, 2003.

§   Provided Essential Funds for College Access through the Federal Family Education Loan Program (FFELP):
    The number of students with loans, and the average loan size, are both increasing in Illinois. ISAC guaranteed

                                                  Attachment I
    nearly $1.1 billion in educational loans for more than 140,000 students and families in FY2004, and IDAPP
    loan programs provided even more much-needed help to students still working to meet the rising cost of
    education. About 43 percent of students attending public universities and 66 percent of students attending
    private universities now borrow.

§   Continued to Help Students Meet College Costs through IDAPP’s IDEAL Alternative Loan Program: In
    FY2004, IDAPP helped students meet the cost of college through their Educational Alternative Loan, the
    IDEAL Program. The IDEAL Program provides funds to help meet additional costs of college that the Federal
    Stafford and Plus Loan Programs sometimes don’t cover. Special programs exist for graduate, medical,
    professional, and law students that provide higher loan maximums. The IDEAL Program also offers a number
    of repayment plans, including the option to extend the repayment period to 20 years.

§   Helped Students Manage Loan Debt through IDAPP’s Consolidation Loan Program: In FY2004, IDAPP
    continued to help borrowers consolidate their student loans through their unILoan program, a Federal Loan
    Consolidation Program, into one manageable, simple interest loan. Although consolidation means borrowers
    will pay more interest over the life of the loan, the option allows those with a heavy debt burden to extend their
    repayment period, and thus lower their monthly payments. In addition to the benefit of extending the repayment
    period, IDAPP provided two repayment incentives in FY2004 that equated to a 2.25 percent reduction in the
    interest rate for enrolling in the automatic payment feature and making a specified number of consecutive on-
    time payments.

§   Continued to Reduce Loan Costs for Students: The Commission continued to reduce the cost of borrowing for
    students and parents through the elimination of the one percent guarantee fee for ISAC-guaranteed Federal
    Family Education Loan Program (FFELP) loans disbursed during FY2004. The elimination of the fee reduced
    the cost of borrowing for students and resulted in a greater percentage of loan proceeds becoming available to
    apply toward educational expenses. In addition, the Commission took action in June 2004 to continue the
    elimination of the one percent guarantee fee for ISAC-guaranteed loans through December 31, 2004.

§   Offered New Borrower Benefit to Students and Families Borrowing through IDAPP: IDAPP’s Low Cost
    Borrower Benefits Program saved students and families even more money beginning in FY2004. In addition to
    existing benefits that reduce the interest rate on Federal Stafford and Plus loans by 2.25 percent for enrolling in
    the automatic payment feature and making a specified number of consecutive on-time payments, borrowers,
    beginning July 1, 2003, enjoyed a 1 percent reduction to their origination fee in the form of a rebate credited to
    their account at the time of repayment.

§   Completed the Sixth Enrollment Period of the College Illinois! Prepaid Tuition Program: Approximately 5,900
    contracts were purchased during the sixth enrollment period, representing a commitment of $126 million. The
    combined total for the program’s six enrollment periods is more than 42,000 contracts purchased by more than
    23,000 Illinois families, with a commitment of $675 million once all currently active accounts are paid in full.
    To date, contract benefits have been paid out to 1,100 students at nearly 200 colleges and universities in Illinois
    and across the nation.

§   Began a Longitudinal Study to Help Explain the Impact of MAP on Retention: A longitudinal study of low-
    income, beginning postsecondary Illinois students began fall 2003. A group of MAP recipients as well as a
    control group will be surveyed over a five-year period to gather various information on college preparation,
    academic success and persistence. Of specific interest are the non-cost barriers that are keeping lower-income
    students from completing their programs and perhaps completing them at a different rate from other students.
    ISAC has developed the surveys, drawn the sample, initiated three survey mailings, and evaluated the
    respondents based on variables in the database from which the sample was drawn. The respondents represented
    the MAP recipient population very well, with little response bias. Data entry and an analysis of the survey data
    are expected to be completed early in FY2005.

§   MAP Affordability Study Updated: An update of the study - Changes In Affordability Of A College Education
    For Dependent Students In Illinois - that evaluates the impact of MAP and Pell Grants on affordability across
    institution types and income quintiles was updated in FY2004. The unfortunate consequence of increasing

                                                  Attachment I
    college costs, stagnant incomes, and lower grant aid is that remaining need increased dramatically for students
    at all school types except for third income quintile (family income of approximately $58,782) community
    college students. As bleak as the affordability trends appear, the situation was even worse for eligible students
    who received no MAP grant at all.

§   Finalized Recommendations of the Joint IBHE/ISAC Committee to Study Affordability. A Committee on
    Affordability, the first of its kind since 1994, was established in FY2003 to conduct a comprehensive study of
    related cost and access issues. The Board took action on the report and finalized the recommendations at its
    August 12, 2003 meeting. The 20 recommendations detailed in this report build on the three broad goals
    suggested by the 1994 Committee to Study Affordability: (1) enhancing academic preparation and performance,
    (2) assisting needy students, and (3) keeping college costs affordable. The committee's recommendations
    include putting a priority on funding for the Monetary Award Program (MAP) as well as on maintaining a
    stable base of funding for public colleges and universities, expanding the Illinois Incentive for Access program
    to serve more low-income students, making a four-year graduation guarantee universal among public
    universities and initiating a two-year version for community colleges, strengthening high school graduation
    standards so students enter college ready for the academic rigors they encounter, increasing awareness of
    college costs for families and students, and creating a biennial "state-of-affordability report" to monitor
    financial needs.

Fiscal Year 2005 Plans

§   Maintain and Expand ISAC Outreach Activities: In FY2005, ISAC staff plans to c        ontinue to participate in
    and/or conduct the various outreach events, training seminars, FAAM activities, etc. that are part of its annual
    outreach calendar, reaching thousands of students each year. Staff will also continue to work closely with the
    extensive network of community-based organizations and business partners that has been built over the years
    and develop new ones where appropriate. In addition, staff will continue its outreach and awareness campaign
    promoting College Zone information to students and parents via public service announcements, transit ads and a
    grass roots mailing campaign to community organizations, libraries, churches, college representatives and local
    leaders. The FY2005 campaign will again focus on reaching at-risk, Latino, and minority students and their
    parents, and adult learners.

§   Market the Seventh Enrollment Period for College Illinois!: It is expected that a similar degree of success can
    be secured during the upcoming FY2005 program enrollment with an anticipated 6,000 contracts purchased.
    Plans include maintaining and enhancing the College Illinois! Web site, recognizing that it is the program’s
    most cost effective means of communication with current and potential program participants, through an
    agency-wide e-messaging initiative, expansion of the program’s Internet permission-marketing effort, and
    further refinements to the online application and informational content of the site. Plans also include expansion
    of successful public relations initiatives, and continued development of the most effective ways to communicate
    with target markets.

§   Complete First-Year Report on MAP Longitudinal Study Survey Findings and Begin Second Year of Study: A
    longitudinal study of low-income, beginning, postsecondary Illinois students began fall 2003 to gather various
    information on college preparation, academic success and persistence over a five-year period. The first survey
    of 8,000 students was completed in FY2004, and a report on survey findings from the first year is expected to
    be completed early in FY2005. Of specific interest are the non-cost barriers that are keeping lower-income
    students from completing their programs and perhaps completing them at a different rate from other students. In
    the fall of 2004 the second year of the study will begin with a survey to all respondents as they progress to the
    next step in their postsecondary education.

§   Review Grant Programs to Determine Congruence with Affordability Committee Recommendations: The joint
    IBHE/ISAC Committee on Affordability, established in FY2003 to conduct a comprehensive study of related
    cost and access issues, finalized its report and recommendations early in FY2004. The 20 recommendations
    detailed in this report build on the three broad goals suggested by the 1994 Committee to Study Affordability:
    (1) enhancing academic preparation and performance, (2) assisting needy students, and (3) keeping college

                                                                Attachment I
                 costs affordable. ISAC plans to continue reviewing its programs to determine congruence with the
                 recommendations outlined in the report, and to propose changes that will aid in meeting these goals.

             §   Continued Importance of MAP in Maintaining Affordability: In addition to updating the information included in
                 Changes In Affordability Of A College Education For Dependent Students In Illinois - which evaluates the
                 impact of MAP and Pell Grants on affordability across institution types and income quintiles - FY2005 plans
                 include developing a methodology to determine affordability for independent students and assessing the impact
                 of MAP and Pell Grants for these students.

             Fiscal Year 2005 Challenges

             FY2005 plans to address Goal 3 may be challenged by stagnant funding for the programs that ISAC administers as
             well as by some proposed changes to the Higher Education Act during the next reauthorization.

                                                 MISSION-SPECIFIC INDICATORS

Performance       Relation to ISAC         Performance
  Indicator       Mission/Objectives           Goal              Data              FY2002           FY2003                 FY2004
                                                                             By Quintile      By Quintile            By Quintile

                                                               ISAC          Comm. Col        Comm. Col              Comm. Col
                                                                             1st 14.7%        1st 15.3%              1st 20.1%
                  Relates to strategic                         MAP
                                                                             2nd 32.2%        2nd 33.6%              2nd 36.7%
Unmet need        objective to ensure                          Budget        3rd (15.4%)      3rd (4.8%)             3rd (13.2%)
as a              that students have     Equal to or less      File;
percentage of     sufficient financial   than FY2002           MAP and       Pub.Univ         Pub.Univ               Pub.Univ
college costs     resources to enroll    Baseline by           Pell          1st 23.4%        1st 29.1%              1st 34.8%
by sector         and persist in         income quintile       Grant         2nd 34.0%        2nd 38.4%              2nd 43.5%
                  postsecondary          (negatives indicate   eligibility   3rd 33.5%        3rd 42.0%              3rd 60.4%
                  education.             no unmet need)        from
                                                               ISAC          Private          Private                Private
                                                                             1st 64.3%        1st 66.1%              1st 68.5%
                                                                             2nd 64.3%        2nd 66.1%              2nd 68.7%
                                                                             3rd 49.4%        3rd 54.4%              3rd 55.2%
                                                               Census        By Quintile      By Quintile            By Quintile
                                                               data;         Comm. Col        Comm. Col              Comm. Col
                                                                             1st 6.7%         1st 6.4%               1st 8.9%
                  Relates to strategic                         ISAC
                                                                             2nd 5.9%         2nd 6.2%               2nd 6.5%
Unmet need        objective to ensure                          MAP           3rd (1.7%)       3rd (0.6%)             3rd (1.5%)
as a              that students have     Equal to or less      Budget
percentage of     sufficient financial   than FY2002           File;         Pub.Univ         Pub.Univ               Pub.Univ
family            resources to enroll    Baseline by           MAP and       1st 18.5%        1st 22.1%              1st 29.4%
income by         and persist in         income quintile       Pell          2nd 10.9%        2nd 12.9%              2nd 14.6%
sector            postsecondary          (negatives indicate   Grant         3rd 6.5%         3rd (0.6%)             3rd 8.7%
                  education.             no unmet need)        eligibility
                                                               from          Private          Private                Private
                                                                             1st 111.2%       1st 107.3%             1st 122.1%
                                                                             2nd 45.1%        2nd 47.3%              2nd 48.6%
                                                               database      3rd 21.1%        3rd 24.6%              3rd 25.1%

Percent of
students          Relates to strategic
attending         objective to ensure                                                             55.3% for the         77.8% for the

                                                               Attachment I
public           that students have                           ISAC                                  $4,968 max and          $4,968 max and
universities     sufficient financial    No more than         MAP                 30.7%              80.5% for the           83.9% for the
whose tuition    resources to enroll     33%                  database                            $4,720 max (includes    $4,471 max (includes
and fees         and persist in                                                                        5% reduction)         10% reduction)
exceed the       postsecondary
MAP              education.
                 Relates to strategic
Mean             objective to ensure                          ISAC
Announced        that students have      Comm.Col.=90%;       MAP          Comm.Col.=96.2%;       Comm.Col.=86.3%;       Comm.Col.=72.1%;
MAP award        sufficient financial    Pub.Univ=80%;        database;    Pub.Univ= 79.6%;       Pub.Univ=67.9%;        Pub.Univ=60.2%;
as a % of        resources to enroll     Private=30%          ISAC         Private= 28.7%         Private= 25.9%         Private= 23.5%
Mean Tuition     and persist in                               MAP
and Fees by      postsecondary                                Budget
Sector           education.                                   File

Average loan     Relates to strategic                         ISAC
amount           objective to ensure                          loan
borrowed per     that the grant/loan     No increase          database;    Pub.Univ= 37.2%;       Pub.Univ=35.1%         Pub.Univ=38.2%;
year as a %      balance is                                   MAP          Private= 28.5%         Private= 27.2%         Private= 28.3%
of college       appropriate and                              Budget
costs by         encourages access                            file
sector           and retention.

Borrower         Relates to strategic                         ISAC
indebtedness     objective to ensure                          loan
and borrower     that the grant/loan     Less than 8          database;
                                                                                   6.9%                   6.3%                   6.5%
payments as      balance is              percent              borrower
a percentage     appropriate and                              survey;
of entry-level   encourages access                            IDES
income           and retention.                               data
                 Relates to mission
                 to benefit society
Number of        by enabling                                  College                                                       Approximately
College          individuals to          6,000 per year       Illinois!           6,159                   7,019            5,900 (enrollment
Illinois!        develop to their                             database                                                    open through August
contracts sold   fullest potential                                                                                           for newborns)
per year         through access to
                 quality education.

                 Increasing college costs, stagnant incomes, and lower grant aid resulted in a dramatic increase in remaining
                 need for students at all school types except for third income quintile (family income of approximately $58,782)
                 community college students. The MAP maximum award continued to lose purchasing power as the program
                 received no additional funding to help students pay for substantial increases in tuition and fees that occurred in
                 FY2003 and FY2004, or to address increases in application volume.

                                                  Attachment I
Goal 4: Illinois will increase the number and diversity of citizens completing training and
        education programs

                                    MISSION-SPECIFIC INDICATORS

Performance    Relation to ISAC            Performance
  Indicator   Mission/Objectives               Goal             Data Source    FY2002      FY2003      FY2004
Access and Diversity

Delivery of      Relates to strategic      By April 1
MAP              objective that the        preceding the    ISAC MAP          March 12,   March 22,   March 26,
Program          student aid delivery      start of the     startup date      2001        2002        2003
Funds            process will promote      academic
                 student access.           year
                 Relates to strategic
MAP award        objective that the
announcement     student aid delivery      After            ISAC database     December    August      August 2,
suspension       process will promote      September 15                       7, 2001     13, 2002    2003
date             student access.
                 Relates to strategic
                 objective to ensure
Average          that students have
income of        sufficient financial      Baseline plus    ISAC database      $21,397     $21,955     $21,738
families         resources to enroll and   inflation
eligible for     persist in
MAP grants       postsecondary
                 Relates to strategic
                 objective to ensure
Minority         that students have        Equal to or      Student
students as a    sufficient financial      greater than     Financial Aid        46%        47%         45%
proportion of    resources to enroll and   college-going    Survey/ISAC
MAP              persist in                percentage       Surveys
recipients       postsecondary
                 Relates to strategic
                 objective to ensure
Number of        that students have
IIA recipients   sufficient financial      18,000 per       ISAC IIA            21,426     18,463      17,356
                 resources to enroll and   year             database
                 persist in

in outreach      Relates to strategic
activities       objective to ensure
which focus      that students receive                      ISAC Client          172         250         289
on minority      the information and       Baseline plus    Relations Staff
and at-risk      support services they     3%               Reports
students         need to plan for their
(financial       postsecondary
aid/early        education.

                                                  Attachment I
    For the second year in a row, the MAP award announcement suspension date occurred in August, well before
    the performance goal of September 15th , due to level funding and increased early application volume.
    Participation in outreach activities continued to increase primarily due to a more than 25% increase in the
    number Financial Aid Workshops held during Financial Aid/Admission Awareness Month (FAAM) in FY2004.

Goal 5: Illinois colleges and universities will hold students to even higher expectations for
        learning and will be accountable for the quality of academic programs and the
        assessment of learning

                                    MISSION-SPECIFIC INDICATORS

    Because this goal is assigned to colleges and universities, ISAC is not providing a response at this
    time. ISAC is ready, however, to cooperate in any way to help move this goal forward.

Goal 6: Illinois colleges and universities will continually improve productivity, cost-
        effectiveness, and accountability

Fiscal Year 2004 Accomplishments

§   College Zone Outreach Approach Unveiled: ISAC unveiled a new resource for Illinois students and families in
    FY2004. College Zone – powered by the Illinois Student Assistance Commission, was introduced as an
    expanded comprehensive approach to outreach and information; a one-stop source for college information in
    Illinois created to promote the extensive services offered by ISAC to help Illinois students and families plan for
    college. College Zone offers a comprehensive array of planning and assistance programs through:

    •   A new, user-friendly Web site –;
    •   College Zone Outreach Centers – located on community college campuses;
    •   One-on-one counseling via 800-899-ISAC (4722); and,
    •   Brochures that provide information throughout the college experience.

    College Zone is designed to provide Illinois families with information that pertains to them specifically at their
    current stage of planning for college. And to reach out to the growing Hispanic population in Illinois, College
    Zone also provides information in Spanish, both on the Web site and brochures. Spanish-speaking counselors
    are also available via the toll-free number.

§   College Zone Web Site Launched: The College Zone Web presence,, was launched in FY2004
    with separate zones for students, parents, and each partner type (FAA’s, Counselors, and Lenders) designed to
    be the complete college planning resource. Accessible any time of the year, anywhere there’s a PC, students and
    their parents can rely on College Zone to research what they need to know to plan, find and apply, and finance
    college whenever and wherever it’s convenient for them. The site includes numerous useful features including a
    college planning checklist, financial aid estimator, early planning and saving for college information, college
    financing information, link to FAFSA/apply online, Spanish version of the Web site, e-Messaging service, e-
    library, online materials request, etc. A recent study assessing school satisfaction with ISAC’s products and
    services indicated the value and usefulness of the College Zone Web site - 100 percent of respondents would
    return to the College Zone Web site, and 100 percent would recommend College Zone to a colleague and/or
    student/parent. The College Zone Web site has had over 50,000 unique visitors and over 205,600 total visitors
    since its launch in late August 2003.

§   Secured Funding for IllinoisMentor System and Finalized Plans for its Implementation: ISAC secured funding
    and finalized an implementation schedule in FY2004 to have the IllinoisMentor System implemented by
    December 2005. Mentor will enhance existing online services and information provided through College Zone
    to students, counselors, and colleges through a product set that provides career planning information, campus
    tours and comparison information, online college application completion, recording and tracking of high school
                                                  Attachment I
    classes and test scores, and ability to electronically transmit transcripts between high schools and colleges. In
    addition, Mentor will serve as a resource for adult learners and students who have limited access to other
    sources of college planning information and will provide a unique opportunity for collaboration at the
    elementary, secondary, and postsecondary levels .

§   Participated in Sponsoring “Mapping Your Future”: As a guaranty agency, ISAC cosponsors “Mapping Your
    Future,” a Web site which provides educational, career, and financial planning information to Illinois citizens.
    The number of Illinois institutions utilizing the loan counseling services available from "Mapping Your Future"
    continues to increase, bringing information about responsible debt management to a larger number and wider
    variety of students. Two new features were added to the site in FY2004, a “Saving for College” page to help
    students and families learn how to begin saving for college, and a “Military Careers and Educational Benefits”
    page to help students determine whether a military career or term of service is right for them.

§   College Zone Services Marketed to Illinois Public Libraries: A packet including information about the
    availability of various products/services through the College Zone Web site, information on how to link to the
    site, as well as various College Zone publications was dis tributed to 783 public libraries across Illinois in
    FY2004 in continued efforts to provide the college planning and financial information students need to make
    informed decisions about their postsecondary education plans.

§   New College Zone Resources Replaced Higher EdNet Scholarship Search Service: ISAC’s scholarship search
    engine – Higher EdNet – was retired in FY2004 and replaced with access to five, free online scholarship search
    services available through College Zone. Along with links to the five free search services, the “Scholarship
    Searches” page also includes links to the Federal Trade Commission (FTC) Scholarship Scams Web site and the
    U.S. Department of Education’s Looking for Student Aid Web page.

§   ISAC Updates Retired and e-Messaging Introduced: One of the means by which ISAC has communicated with
    its partners/clients over the years has been through the paper ISAC Update. As ISAC continues to move toward
    an electronic environment that provides timely and pertinent information to its partners, a periodic paper
    bulletin became outdated. The e-Messaging service of College Zone was introduced in FY2004 in order to
    provide the most current information more frequently. Based on subscription options selected, the e-Messaging
    service notifies those enrolled when new information and/or announcements are added to College Zone and
    provides summaries of new information along with links to additional information in College Zone, all sent
    directly to the e  -mail address provided. To date, all of ISAC’s MAP schools, many of its top lenders, and
    several other cohorts including financial aid directors and administrators, high school counselors and teachers,
    principals, business officers, and students and parents have signed up for the e      -Messaging service, with
    additional subscriptions each week.

§   Implemented a New Approach for ISAC Training Seminars: ISAC’s FY2004 seminar series was designed for all
    ISAC’s partners - high school counselors, financial aid administrators, college admission staff, lenders,
    servicers, community agencies, and Bursars – and included general sessions with information common to all
    partners as well as separate sessions for each partner group to cover specific topics, all revolving around ISAC’s
    newly introduced Web presence – College Zone. This new approach to seminars demonstrated how participants
    could utilize the numerous products and services on the College Zone site to receive more timely information
    that they need to assist students through the financial aid process and also gave them the opportunity to network
    with their colleagues from other partner groups. Seminars were conducted at 19 sites throughout Illinois during
    September and October of 2003, reaching approximately 1,393 of ISAC’s partners.

§   Provided Conference Call Training Sessions: In order to provide pertinent and timely training to schools during
    these times of rising travel costs and restricted budgets, ISAC provided a series of training sessions via
    conference call in FY2004. Each training session was limited to one hour, and examples of topics covered
    included 2004-05 FAFSA Completion, MAP, IVG and ING Grant Budget Reporting, and MAP Operational and
    Policy Changes.

§   College Illinois! Web Site Enhanced: During FY2004 further refinements were made to the online application
    which was utilized by 65 percent of contract purchasers during the most recent enrollment period. Online

                                                  Attachment I
    account access to contract holders was added to the customer care section of the Web site to allow program
    participants to check current account status, view financial transactions and track tuition payments made to
    schools. By the end of FY2004 online account access was being utilized by over 3,000 (13%) of program
    participants. In addition, in an effort to take College Illinois! information right to the h omes of potential
    purchasers, staff provided a live educational presentation online. Several hundred participants were recorded
    and many more have continued to access the presentation, which is now permanently available on the College
    Illinois! Web site.

§   MAP Eligibility Tracking System Converted to a Credit Hour Basis: During FY2004 ISAC made appropriate
    statutory changes, amended agency rules, and developed operational plans with schools to convert the Monetary
    Award Program (MAP) eligibility tracking system to a MAP paid credit hour basis and redefine enrollment
    status for MAP payment for the 2004-05 academic year to make hours actually paid by MAP consistent with
    MAP eligibility used. The basic framework for the changes instituted was 135 hours of eligibility with a 75-
    hour cap on MAP eligibility to underclassmen, allowing most students sufficient MAP coverage to complete a
    baccalaureate degree. The catalysts for this change came in the forms of recent budget cuts and a
    recommendation from the Committee on Affordability.

§   Continued to Improve IDAPP Servicing Operations: Through a quarterly series of surveys with student
    borrowers, lenders, and schools regarding client satisfaction with IDAPP services, operational changes have
    been made to improve productivity, reduce operating costs, and increase customer satisfaction. At least 87
    percent of each client group surveyed indicated they were either very satisfied or satisfied with IDAPP’s
    customer service.

§   Introduced IDAPP e-Newsletter: The first edition of IDAPP’s quarterly e-newsletter – IDAPP Counselor – was
    unveiled in June 2004 to deliver timely and useful information about the student loan industry to students,
    parents, and student loan officers at schools and financial institutions. The June edition included useful articles
    and program information, current interest rate information, interesting facts related to the student loan industry,
    and valuable links to the Free Application for Federal Student Aid and to ISAC’s College Zone Web site.
    Subscriptions to IDAPP Counselor are expected to continue increasing as the e-newsletter is publicized
    throughout FY2005.

§   Automated the 2003-04 Handbook of Postsecondary Institutions: The Handbook of Postsecondary Institutions,
    which contains up-to-date admission and financial aid information about the Illinois institutions which
    participate in ISAC’s scholarship and grant and/or loan programs, can now be easily accessed via College Zone.
    The Handbook has been an invaluable source of information for students and their parents as they plan for
    college. In addition, the online version of the Handbook also contains links to the Web site of each school
    included, providing even more comprehensive information about the schools.

§   Teacher Program Application Automated for Easy A    ccess: The 2004-05 Illinois Special Education Teacher
    Tuition Waiver (SETTW) Application was made available within College Zone for students to download in
    FY2004 in continued efforts to provide easy access to the resources students need to access a postsecondary

§   Illinois Enrollment Management Organization Established: ISAC reached out to enrollment management
    administrators across the state in FY2004 by establishing an Illinois Enrollment Management Organization
    (IEMO) in order to facilitate communication and sharing of information between campus administrators who
    have the specific overall responsibility for enrollment management as well as to improve joint efforts in
    outreach and awareness activities for potential college applicants statewide. During FY2004 ISAC initiated
    meetings with enrollment management at institutions in Illinois to discuss topics such as College Zone outreach
    and information services, as well as planned enhancements to the College Zone Web site, the role of college
    admission counselors in providing access to College Zone services as part of recruitment/outreach, and Truth in
    Tuition implementation at public universities.

§   Began Receiving Loan Exit Interview Data through ExitExpress: ISAC began receiving loan exit interview data
    electronically through Mapping Your Future’s ExitExpress process, an automated method of retrieving student

                                                  Attachment I
    loan exit counseling data, in FY2004. This eliminates the need for schools whose student loan borrowers use
    Mapping Your Future’s Online Student Loan Exit Counseling to forward paper confirmation to ISAC when exit
    counseling requirements have been fulfilled, thus improving efficiency. Via ExitExpress, ISAC automatically
    receives these confirmations electronically from Mapping Your Future for ISAC-guaranteed loans.

§   Introduced INFOnet – the Gateway to the Meteor Network: Meteor is a collaborative effort to provide a
    standard for the aggregation of financial aid data, taking information from many sources and providing it in one
    view, with the advantage of “real-time” data allowing immediate access to up-to-date information. In FY2004
    ISAC introduced a new service for financial aid administrators that provided Meteor’s real-time borrower-
    specific loan data in a consolidated online view via the College Zone Web site. INFOnet provides a gateway to
    NCHELP’s Meteor network through College Zone. This is only the first step in an effort that will eventually
    allow access to all forms of a student’s financial aid data, including state and federal grant and scholarship
    information, in a real-time environment. ISAC is committed to Meteor as its Internet information data source
    for the future, with additional projects and plans underway to provide a full range of loan data. When in full
    operation, Meteor will serve as the means by which schools, students, parents, lenders, and others gain a
    comprehensive, customized view of all loans, grants, scholarships, financial aid, etc. for a student.

§   Continued Refining Functions Around a Customer Centric Organizational Structure: ISAC continued to
    integrate ISAC’s program functions according to how they interact with customers and/or clients in order to
    identify areas and functions to meet ISAC’s goals of maximizing resources, reducing (if not eliminating)
    redundancies and best aligning functions to meet business needs. During FY2004 several customer centric
    transitions were made and/or developed in order to maximize resources and better serve ISAC clients and
    partners. Specifically, a project was launched to centralize the way ISAC communicates with its lender partners
    through development of a Lender Communication Center, similar to the successful School Services
    Communication Center launched in FY2003, that will provide lenders with one telephone number to call that
    will route their inquiries to the appropriate functional area, and plans were made to move all student and parent
    inquiries, including those pertaining to default prevention, to one toll-free number.

§   Began Using New Procedure for ISAC’s School Audit Methodology and Implemented New Audit Software:
    During FY2004, ISAC began using a new audit sampling procedure that reduced the workload to schools and to
    ISAC without compromising the accuracy or integrity of findings, thereby ensuring that MAP payments go only
    to eligible recipients. The new sampling procedure reduced the number of records that needed to be checked at
    each audit site, shortened the audit time frame and saved staff time, client time and travel money. This new
    methodology also enables ISAC to maintain a three-year audit cycle with reduced available staff even with an
    increase in the number of participating schools. At the same time, ISAC implemented new audit software in
    FY2004 that supports the new audit sampling procedures. Further saving staff time and scarce resources, the
    new software is a more user friendly, windows-based application, provides summary statistics, and aids in more
    accurately identifying specific problems at individual school sites.

§   Collaborated with Guaranty Community to Launch the Common Review Initiative: During FY2004,
    representatives from several guaranty agencies, including ISAC, collaborated to create a means to eliminate
    program review redundancy and incorporate consistent and best practices to conduct more comprehensive
    reviews. With the Common Review Initiative (CRI), teams made up of staff from several guaranty agencies and
    the U.S. Department of Education (ED) will conduct only one review during the required two-year period (as
    opposed to multiple program reviews conducted each year at the same institution), using a standardized review
    process. The results of CRI are expected to be improved quality and efficiency of the reviews, elimination of the
    disruption caused to lenders by multiple on-site reviews each year, and significant reductions in the costs
    associated with the review process for all involved – lenders and servicers, ED, and guarantors.

§   Defaulted Loan Payments Accepted Electronically: ISAC established a program which allows defaulted student
    loan borrowers to ma ke their payments electronically through an Automated Clearinghouse (ACH) network
    (automated debit transactions from borrowers’ accounts). Providing an easier and quicker method for borrowers
    to make their payments is expected to improve payment consistency, which can lead to reinstatement of
    eligibility for federal financial aid. Additionally, consecutive on-time payments can establish a borrower’s
    ability to participate in the federal Loan Rehabilitation Program and to apply for federal Consolidation Loans.

                                                 Attachment I
§   Participated in National Credit Education Week: For the third consecutive year, ISAC Default Prevention
    Outreach Services, in conjunction with ACA International, participated in National Credit Education Week.
    This year’s theme “. . . The Most Important Piece of the Puzzle,” was designed to help raise students’ awareness
    on using credit responsibly. The observance was held April 19-24, and was marked in Illinois with a
    Gubernatorial Proclamation, press release in English and Spanish, and a poster mailing to all Illinois
    postsecondary institutions.

§   Expanded On-Site Personal Finance and Student Loan Repayment Seminars - ISAC increased the number of
    on-site Personal Finance and Student Loan Repayment seminars in FY04, from 16 to 96. The seminars are
    designed to introduce students to such concepts as: banking, budgeting, credit cards and reports, and identity
    theft. More than 5,000 at-risk students were reached at their respective schools as a part of this program.
    Student feedback from these seminars has been extremely positive. Some of the comments ISAC regularly
    receives from students are: “This is something everyone should know. Why didn’t you come sooner? And, can
    you come back again.”

§   Continued Distributing Default Prevention Outreach Materials - In FY04, ISAC once again continued to
    distribute materials to high-risk borrowers including publications designed to accompany a school’s entrance
    and exit counseling. Materials include an “All My Student Loan Stuff” portfolio for students to store their loan
    documents that includes a repayment map, a “stay-in-touch” postcard, and a wallet-size plastic contact card
    with the ISAC phone number. In FY04, another 20,000 portfolios were distributed by schools and lenders to
    loan recipients. In addition, a new Graduate/Professional School piece entitled, “Graduate School for
    Professional Students. Big Opportunity. Big Bucks. Master the Science of Funding” was introduced. All the
    Default Prevention Outreach materials and publications are available to view and order, at no charge to Illinois
    schools, at

§   Provided High-Risk Illinois Schools with Customized Default Management Plan – ISAC met with 38 separate
    Illinois schools to provide an on-site assessment, present a Default Prevention Outreach program demonstration,
    and to develop and implement a customized default management plan for their institution. Since all schools
    have similar but not identical student populations, the challenge for ISAC has been to come up with
    recommendations that are right for each school.

§   Incorporated Default Prevention Outreach Early Intervention Project into Regular Operations – In FY04, after
    a successful pilot to expand its early intervention project, ISAC released a Request for Proposal to continue
    expansion to provide grace period counseling to many college freshman and sophomores who have been
    identified as having withdrawn early from their program.

§   Began Pilot Program to Supplement Skip Tracing and Default Prevention Counseling Efforts on Delinquent
    Borrowers - In FY04, ISAC began a pilot to utilize a professional collection agency to supplement its regular
    activities associated with locating and counseling delinquent borrowers. With the pilot nearing its conclusion,
    the vendor has been successful in contacting and averting almost fifty percent of the assigned delinquent cases,
    which were believed to have “skipped-out” on their loan obligations.

§   Working on Revising DAAR School Report – ISAC continues to work with its school partners to find new ways
    to help prevent student loan defaults. In FY04, ISAC conducted a survey of its school partners to gain valuable
    feedback on the Default Aversion Assistance Request (DAAR) Report. Recommended changes, including the
    ability to receive the report electronically, are scheduled to be placed into production in FY2005.

§   Continued to Realize Benefits from a New Information System To Support FFEL Program Management. ISAC
    successfully transitioned to the use of a new information system supporting claims, collections, accounting and
    federal reporting activities on October 1, 2002. One of the few guaranty agencies to have made such a change,
    the new Odyssey system has provided ISAC with an even greater capacity to serve customers. Benefits of the
    Odyssey system which have already been realized can be grouped into three categories. First, the time required
    to process claims has been reduced substantially with submissions from lenders now being handled on a same
    day basis. Second, despite a relatively reduced defaulted loan portfolio, ISAC is on track for an impressive

                                                 Attachment I
    recovery rate for collections on such loans. In combination with initiatives which strengthen performance
    measurement as well as training and implementation of a set of programs designed to encourage borrowers to
    rehabilitate their loans, Odyssey supports ISAC's goal to increase collection revenues at a rate exceeding 3
    percent annually.

§   Became the First Guarantor to Participate in National Student Clearinghouse’s Total Enrollment Reporting
    Process: As a member of the National Student Clearinghouse, ISAC and IDAPP, and the students they serve,
    continued to benefit from timely and accurate information about student statuses. Clearinghouse data help
    students by virtually eliminating situations where they are placed n defaulted status due to incomplete
    enrollment information. During FY2004, ISAC became the first guaranty agency to participate with the
    National Student Clearinghouse in an enhanced Student Status Confirmation Reporting process called the Total
    Enrollment Reporting Process (TERP). Through this process the Clearinghouse, in partnership with ISAC,
    receives student enrollment data submitted to NSLDS for students with ISAC guarantees and reconciles the
    information on a weekly basis with the enrollment data reported directly by the institutions participating with
    the Clearinghouse. The reconciliation process eliminates redundant enrollment records for lenders and servicers,
    thereby providing them with the most updated data more frequently so proactive measures can be taken with
    students’ accounts (e.g. extend in-school deferments to eligible students) in order to reduce possible
    delinquencies. This reduction in delinquencies can then have a positive impact on the annual Cohort Default
    Rate for institutions, lenders and ISAC. Because ISAC is the first to implement this process, staff has been
    asked to share the benefits of TERP with the FFELP community and to do presentations in an effort to expand
    this process within the community.

§   Began Processing and Accepting PLUS MPN Records: ISAC began accepting and processing for guarantee
    Federal PLUS Loan Application and Master Promissory Note (PLUS MPN) records at the beginning of the one-
    year transition period, early in FY2004. The PLUS MPN is a common form and can be a              ccepted by any
    guaranty agency, regardless of the guarantor that may be identified on the form. The PLUS MPN is designed for
    a parent borrower to use a multi-year (serial) note for one dependent student, allowing the borrower to sign the
    MPN once, at the t ime he or she borrows, and receive additional loans for that one dependent student during the
    same year or subsequent years without signing a new promissory note. This means less paperwork for all
    participants and more timely delivery of loan proceeds when students enroll.

§   Ensured Timeliness of Policy and Program Changes to MAP-ADP/MAPnet Processes: The MAP-Automated
    Delivery Process (MAP-ADP) allows schools to manage MAP and IIA information through an electronic
    process. MAPnet is the Internet application used for electronically processing MAP information. During
    FY2004 ISAC ensured that all automated processes were updated in a timely fashion with regard to late
    breaking policy and program changes. The MAP Integrated Project Team contributed greatly to the success of
    this initiative, evidenced by MAP Start-up for 2004-05 awards happening the earliest ever and the process of
    recomputing MAP awards implemented within a week of the Commission’s decision.

§   Supported Student Loan Industry Initiatives Related to Improved Program Performance: At the federal level
    ISAC participates with other partners in the FFELP delivery process to improve program delivery. As a result of
    work completed this year, parents are now able to utilize a master promissory note for the PLUS loan program,
    including e-sign, in early FY2004. Additional results were evident in standardization efforts through the
    Common Account Maintenance (CAM) initiative, which allows lenders to refer accounts electronically to ISAC
    counselors for default aversion. ISAC implemented two-way electronic exchange of certain data elements for
    loan maintenance in FY2004 allowing lenders to communicate changes in loan information with ISAC much
    more efficiently, providing improved service to students and schools. ISAC also continued to support the
    Common Manual industry initiative in FY2004 through participation on the Policy Committee, charged with
    keeping the manual updated, and contributions made to teams asked to review proposed changes and provide

Fiscal Year 2005 Plans

                                                  Attachment I
§   Maintain and Enhance ISAC’s College Zone Web Site: ISAC will continue to update the information in the
    various zones of the College Zone Web site and gather feedback on the site’s products and services in order to
    provide all its partners with useful, accurate and timely information. Several enhancements are planned for the
    College Zone Web site in FY2005-FY2006, including the addition of client confirmation functionality that will
    acknowledge orders, registrations, receipt of forms, etc., the addition of a feedback/survey section to gather
    ideas for site improvement and change, a military personnel section that will be added to the Student and Parent
    Zones, and expansion of the Spanish microsite within College Zone. Finally, there are the enhancements and
    value-added services to the site that will result with the inclusion of the IllinoisMentor System and further
    developments in Meteor services offered through College Zone’s INFOnet planned for FY2005-2006.

§   Implement and Integrate IllinoisMentor within College Zone and Secure “Buy-in” Participation: ISAC will
    complete several implementation milestones in FY2005 and plans to implement IllinoisMentor in FY2006,
    integrating the system within the College Zone umbrella of services. Additional plans for FY2005 include
    securing “buy-in” participation from middle schools and high schools to promote utilization of College Zone
    and IllinoisMentor services for their students and parents, development of strong strategic partnerships with the
    Illinois State Board of Education, Career Resource Network, Chicago Public Schools and others to promote use
    of IllinoisMentor at high schools and middle schools, and greater visibility to both high schools, colleges and
    public libraries for College Zone and IllinoisMentor services.

§   Continue Sponsorship of the “Mapping Your Future” Web Site: In FY2005, ISAC plans to continue
    sponsorship of this industry Web site that provides college and financial planning information for prospective
    and current students of all ages.

§   Utilize New Technologies for Training of ISAC’s Partners: As resources allow, ISAC plans to utilize new
    technologies for online training such as Webconferencing that can provide up-to-date information on a more
    timely basis directly to the desktop of ISAC’s partners. Data from the recent School Satisfaction Survey Report
    that indicated the percentage of schools that are currently using this form of training with the Department of
    Education, the reasons for not participating in online training, and topics they would most be interested in
    receiving training on will be used in plans for these services.

§   Provide Online Interactive Applications for Teacher Education Scholarship Programs: Plans are underway to
    provide applicants for the 2004-2005 teacher education scholarship programs the ability to complete an online
    interactive application, electronically sign the application, and submit it through the College Zone Web site.

§   Introduce Online Bill Payment Feature to IDAPP Borrowers: The IDAPP Web site will introduce a new feature
    in FY2005 for IDAPP borrowers – Loan Pay, an online bill payment presentment that will allow borrowers to
    make one-time loan payments as well as recurrent payments, and enable borrowers to set up authorized loan
    payment to specified individuals.

§   Continue All Existing Default Prevention Outreach Programs – In FY2005, ISAC plans to continue the existing
    Default Prevention Outreach programs and services, including: Participation in National Credit Education
    Week, delivering Personal Finance and Student Loan Repayment seminars, working with schools on their
    Default Management Plans, and operating the Early Intervention Program providing grace period counseling.

§   Evaluate Supplemental Skip Tracing and Default Prevention Counseling Pilot Program – One of the activities
    essential to lowering ISAC’s cohort default rate is locating borrowers who are delinquent on their student loans.
    In order to accomplish this in an efficient manner, and to learn more about industry “Best Practices,” ISAC will
    evaluate the success of the pilot program and may issue an RFP to gain the added resources needed to locate
    and contact borrowers in order to provide them with loan repayment and default prevention strategies such as
    deferment, forbearance, and loan consolidation where appropriate.

§   Enhance Data Accessibility for Schools to More Effectively Assist with Default Prevention Efforts – In FY2005,
    ISAC plans to implement many of the school recommendations for enhancement of the Default Aversion
    Assistance Request (DAAR) Report and make the report available in a new format accessible to schools
    through a secure connection via our website at Plans also include the addition of ISAC-

                                                  Attachment I
    guaranteed FFELP loan data to INFOnet - Gateway to Meteor which will allow institutions ready access to
    specific borrower’s loan data and statuses.

§   Continue Partnering with Mapping Your Future Website on Default Prevention Initiatives – ISAC will continue
    to partner with Mapping Your Future (a non-for-profit public address Web site), in conjunction with other
    guaranty agencies, in support of default prevention initiatives such as: “Show Me the Future,” “Meteor”
    partnership, On-Line Exit and Entrance Counseling, chat events, e-newsletter, and a new default prevention
    tracking software product designed to help schools to better manage their cohort default rate.

§   Continue the Reassignment of Functions Around a Customer Centric Organizational Structure: FY2005 plans
    include implementation of the Lender Communication Center that will centralize the way ISAC communicates
    with its lender partners through providing a single telephone number and e         -mail address for lenders and
    servciers to call for customer service needs that will route their inquiries to the appropriate functional area. In
    addition, all student inquires, including those pertaining to default prevention, will be moved to one toll-free
    number. Service objectives for FY2005 continue to include: reliable delivery of financial aid programs and data;
    data and information are available when needed by the client and/or partner; satisfied clients; program and data
    integrity are maintained; and programs are administered within allocated dollars.

§   Implement New MAP Paid Credit Hour Eligibility System: During FY2004 ISAC made appropriate statutory
    changes, amended agency rules, and developed operational plans with schools to convert the Monetary Award
    Program (MAP) eligibility tracking system to a MAP paid credit hour basis to make hours actually paid by
    MAP consistent with MAP eligibility used. The new tracking system will be implemented beginning in

§   Continue Participation with FFELP Industry Initiatives: ISAC will continue to work with additional FFELP
    partners during FY2005 to implement the Common Claims Initiative (CCI), a standardized format and process
    that allows lenders to electronically submit claims for defaulted student loans. In addition to reducing
    paperwork and manual data entry time, this process should help ensure timely filing of claims for Illinois
    lenders. Data elements exchanged through Common Account Maintenance (CAM) will be expanded so that
    lenders can electronically communicate even more loan information/data to ISAC, and participation on the
    Common Manual industry initiative will continue through involvement in committee and teamwork.

§   Create BUDGETnet, a Database and Online Data Collection Tool for School Budget Information: Create a
    database and online data collection-gathering tool in FY2005 for all school budget information for all ISAC
    programs in one place and provide schools with the ability to update their budget data online. The BUDGETnet
    database would include MAP, IVG and ING budget packet information, Postsecondary Handbook information
    and information that will be needed for IllinoisMentor.

§   Continue the Move Towards Common Origination and Disbursement of all ISAC’s Programs: During FY2005
    ISAC will continue reengineering toward the goal of common origination and disbursement for all ISAC’s
    programs contingent on available resources. This will provide postsecondary institutions with the ability to
    certify eligibility and request payment for all ISAC-administered scholarship and grant programs similar to the
    MAPnet process that allows schools to manage MAP and IIA information through an electronic process.

§   Provide Electronic Illinois National Guard Grant Program Announcement Rosters: Provide to Illinois National
    Guard (ING) Grant Program school participants electronic access to view and print the ING School
    Announcement Rosters via the College Zone Web site for the 2004-05 academic year.

§   Expand Meteor Services through INFOnet: Meteor’s real-time borrower-specific loan data in a consolidated
    online view became available to schools through INFOnet on the College Zone Web site in FY2004. Plans are
    currently underway to become a Meteor guaranty data provider, to provide Meteor access to students for MAP,
    IIA, and teacher education scholarship programs data, and to provide data for all programs to internal staff to
    view for customer service inquires.

                                                     Attachment I
§   Upgrade the Student Loan Delivery System: The purpose of systems changes will be to offer real-time
    processing of student loan guarantees in order to expedite loan delivery on campus. Further, this initiative will
    offer direct access to loan program data that schools and lenders can use to assist them with packaging and
    business decisions. Plans include a multi-year, phased-in approach utilizing several industry initiatives currently
    underway including the standardization efforts of the Common Account Maintenance (CAM) initiative and the
    Meteor project aimed at providing users with access to “real-time” financial aid data.

Fiscal Year 2005 Challenges

FY2005 plans to address Goal 6 will continue to be challenged by funding issues as well as by staff shortages in key
positions that aid in furthering projects that improve productivity, cost-effectiveness, and accountability.

                                      MISSION-SPECIFIC INDICATORS

 Performance     Relation to ISAC              Performance
   Indicator    Mission/Objectives                 Goal          Data Source      FY2002        FY2003       FY2004
Productivity and Accountability
                                               On average,
                                               of clients
                     Relates to strategic      surveyed in a
                     objective to ensure       given fiscal
Customer             that our customers'       year, 85% or     Annual market
service ratings      receive reliable, high-   higher will      research           85.6%         93.2%        88.9%
(Schools,            quality, accurate         report they      surveys
Borrowers,           information and           are very
Lenders/Servicers)   products that meet or     satisfied or
                     exceed their              satisfied with
                     expectations.             Overall

                     Relates to strategic
                     objective to ensure
Percent of           that our customers'
clients rating       receive reliable, high-                    Annual market      Not
electronic           quality, accurate         85%              research         measured.       90.2%        91.6%
services as          information and                            surveys
"good" or better.    products that meet or
                     exceed their

                     Relates to strategic
                     objective to maintain     Within 0.2%
State                adequate program          of average of    Annual budget
administrative       funding and               other state      and                 1.6%          1.5%         1.4%
funding as a         organization              agencies and     expenditure
proportion of        capability to             higher           figures
program funding      appropriately             education
                     administer scholarship    entities
                     and grant programs.

                     Relates to strategic
Percent of           objective to ensure

                                                  Attachment I
institutions in     that ISAC will           Baseline plus    ISAC
compliance with     manage its programs      1%               compliance        *             *             *
state and federal   in such a way as to                       reports
program             ensure financial
regulations         integrity and

    In connection with the implementation of new audit software and the availability of automated summary
    statistics in FY2004, staff will begin exploring indicators that will aid in tracking institutions compliance with
    state and federal program regulations.


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