entrance exit counseling regulations updates and best practices casfaa 2009 san jose n.
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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.

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Presentation Transcript
we will discuss
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
Entrance & Exit CounselingBefore 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
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
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
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
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
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
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
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 cont1
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
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
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 borrowers1
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 borrowers2
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
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
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
When Conducting ALoan Counseling SessionEnsure 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
mapping your future
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
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
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
Recommendations
  • Counseling for each new loan
  • Include money management information
counseling options
Counseling options
  • Health Professions entrance
  • Health Professions exit
  • Grad PLUS entrance
  • Grad PLUS exit
  • Stafford and Grad PLUS combined entrance
  • Stafford and Grad PLUS combined exit
  • TEACH Grant exit
  • Financial literacy
  • Stafford entrance (English and Spanish)
  • Stafford exit (English and Spanish)
  • Perkins entrance
  • Perkins exit
  • Stafford and Perkins combined entrance
  • Stafford and Perkins combined exit
  • Nursing entrance
  • Nursing exit
sample repayment entrance
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
sample repayment exit
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
archive policy
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
new school
New school

MYF staff

School

customized questions
Customized questions
  • Default questions
  • Select questions
  • Minimum number
  • Can submit new questions
counseling start page
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
displaying school logo
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
Student form
  • Regulatory fields vs. all fields
  • Require borrowers to complete all fields
    • References during entrance
    • Great if high drop-out rates
resources
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
Future of OSLC
  • New counseling sessions
  • Future releases of OSLC
  • PESC Online Loan Counseling standard
early awareness and outreach
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
Social networking tools
  • Facebook fan pagefacebook.com/pages/Mapping-Your-Future/64772249281?ref=share
  • LinkedIn www.linkedin.com (Mapping Your Future group)
  • MySpace pagewww.myspace.com/myfmanageyourmoney
  • Twitter@MYFinc