Transcript Entrance-Exit Counseling

Entrance / Exit
Counseling:
Regulations, Updates
and Best Practices
CASFAA 2009,
San Jose
We Will Discuss


FFEL Loan Counseling Requirements and
Technical Corrections.
Delivery Tools and Resources
 Mapping Your Future® resources to
meet regulatory requirements and
assist students
Entrance & Exit Counseling
Before HEOA
 Requirements discussed only in the regs
(§682.604(f))
 Requirement for one set of information for
Grad PLUS borrowers with Stafford Loans
 Different set of information for Grad PLUS
borrowers without Stafford Loans
 No requirement for Grad PLUS borrowers
Post HEOA (effective 8/14/08)

Entrance Counseling
Adds entrance counseling to statute
Spells out method options
in-person
written form, borrower must sign & return
online, borrower must acknowledge
Interactive counseling with tests/quizzes
encouraged
 Much more extensive list of requirements
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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
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Must be completed before initial
disbursement of loan
Required elements of counseling include
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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
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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.)
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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*
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*
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.)
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*
Review forbearance, deferment, and
cancellation options
Discuss NSLDS and FSA Ombudsman
Ensure that borrowers understand their
rights and responsibilities
Collect and update personal and contact
information
These requirements will apply to Grad/Professional PLUS
borrowers as of 7/1/08 if they have a Stafford loan.
Stafford Exit Counseling:
Requirements* (cont.)
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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 online 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
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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
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Required if no Grad/Professional PLUS
disbursement in the past (before 7/1/08)
Required before first disbursement
Provide sample monthly repayment
amounts based on:
 Range of student loan indebtedness, or
 Average indebtedness* of borrowers at same
school or in same program at school
*Based on those who received Grad/Prof PLUS
Entrance Counseling Requirements:
Grad/Professional PLUS Borrowers

If borrower has a prior Stafford loan, then
provide comparison of:
 Maximum interest rate of PLUS versus
Stafford
 Periods when interest accrues of PLUS versus
Stafford, and
 Start of repayment of PLUS versus Stafford
Average Indebtedness Examples.ppt
Entrance Counseling Requirements:
Grad/Professional PLUS Borrowers

If borrower has not received a prior
Stafford loan, school must
 Explain the use of the Master Promissory
Note
 Emphasize the importance of repayment
 Describe the consequences of default
 Emphasize that repayment is required even if
program is not completed or employment in
field of study is not obtained
Why In-Person Loan Counseling
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Meets one of the Department of Ed’s
required methods
Can accommodate large groups of
students
Default management/prevention tool
 Target high risk populations
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Studies prove the best learning occurs in
instructor lead sessions*
*Source: Garman/Gappinger
Strategies For A Successful
Loan Counseling Event
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Select a target audience, if necessary
 Consider common predictors of default
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GPA
Major
Graduation
Continuous enrollment
Income of borrower
Indebtedness
When Conducting A
Loan Counseling Session
Ensure students know what to expect
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Ensure students know what to expect
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How long the session will take
Describe handout materials
Documentation to be collected
Q and A
Use examples relevant to your audience
Check for understanding
Delivery Tools
and Resources
Mapping Your Future®

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
Provides services to schools for the ultimate
benefit of students
Provides variety of resources (career
exploration, college preparation, paying for
college, money management)
Provides neutral content, encouraging
students to look at all sources of free funding
Entrance counseling
Conducted in person, by audiovisual
presentation, or by interactive electronic means
before disbursement
 Stafford
 Perkins
 Nursing
 Health Professions
 Grad PLUS
 TEACH Grant (DE)
Exit counseling
Conducted in person, by audiovisual
presentation, or by interactive electronic means
shortly before student ceases at least half-time
study at school
 Stafford
 Perkins
 Nursing
 Health Professions
 Grad PLUS
 TEACH Grant
Recommendations
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Counseling for each new loan
Include money management information
Online Student Loan Counseling
Neutral
Instructions
Loan types
Loan limits
Borrow
conservatively
Debt/salary
wizard
Budget
calculator
Customization
Counseling options
Stafford entrance (English

Health Professions entrance
and Spanish)
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Health Professions exit
Stafford exit (English and
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Grad PLUS entrance
Spanish)
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Grad PLUS exit
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Perkins entrance
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Stafford and Grad PLUS
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Perkins exit
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Stafford and Perkins
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combined entrance
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combined entrance
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Stafford and Grad PLUS
combined exit
Stafford and Perkins
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TEACH Grant exit
combined exit
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Financial literacy
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Nursing entrance
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Nursing exit
Demo session
Counseling type
Texas
MYF Demo School
Enter false student information
Demo session
Counseling type
Texas
MYF Demo School
Enter false student information
Regulatory
requirements
Sample repayment: entrance
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Range of indebtedness (break out graduate
borrowers) or average indebtedness of
borrowers in the same program of study at the
same institution
Range of indebtedness chart in counseling
sessions
Can still provide school-specific information
Range of indebtedness chart
Sample repayment: exit
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Information on repayment plans with
description of features of plans and samples
showing average monthly payments with
difference in interest paid and total payments
shown for each
Sample payment scenario in counseling
sessions
Can still provide average indebtedness for your
school
Exit repayment plan chart
Indebtedness customization
Student questions
Full
questions
Note
Individual email
notifications
Batch e-mails
Individual
confirmation
records online
Printable
reports
Maintain documentation
Paper
records
One day
Date range
Ad hoc
Export
records
Delimited
CSV
XML
School
Express
Automate export
to FAMS
Individual
Search
SchoolExpress
CSV
Variety of
formats
TXT
Requires
programming
XML
Request
documentation
Archive policy
Mapping Your Future is not a record keeper.
 Six months of data online
 Two and ½ years prior years available upon
customer service request
 Older data unavailable
ExitExpress
Clearinghouse
provides
guarantor
name
School ensures
guarantor
retrieves
record
Mapping Your
Future provides
record to
guarantor
Guarantor
retrieves
record
FAO Access
Area
New school
School
MYF staff
Current schools
Counseling
types
Staff access
Retrieve records
Customize
Correspondence
and links
Mapping Your
Future Higher
Ed News
User access levels
Super user
• Grant access
• Inactivate
access
• Customize
• Retrieve
records
Additional users
• Account
• Customize
• Retrieve
records
• Retrieval
• SchoolExpress
User access levels
Super user and
account access
• Change notification
options
• Customize account
Mapping Your Future
staff
•
•
•
•
Inactivate super user
Change school name
Change OPE-ID
Add counseling
types
Customization
Test
questions
Expanded
content
Indebtedness
information
Budget
calculator
Counseling
start page
Student form
End URL
School logo
Customized questions
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Default questions
Select questions
Minimum number
Can submit new questions
Expanded counseling
Building good credit
Budgeting
Saving
Credit card use
Credit reports
Indebtedness levels
Indebtedness display
Budget calculator
Excluded from entrance
Included in exit
Counseling start page
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Should include school-specific
information
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Sample repayment information (entrance)
Contact information for questions
Half-time definition
Appropriate offices to contact if withdraw
Other ideas
 Important dates/deadlines
 Disbursement procedures
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Refund policies
Creating start page
Process
Tips
•
•
•
•
•
Use Wizard to create
Edit
Preview
Submit for approval
Add new link to your page
•
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Type text directly on page
For charts – use an image
Make links open in new window
Save changes every 15 minutes
End URL
Follow link to
counseling
Complete
counseling
Click
“Exit” to
end URL
Displaying school logo
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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
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Regulatory fields vs. all fields
Require borrowers to complete all
fields
 References during entrance
 Great if high drop-out rates
Summary
Current school checklist
Counseling
types
Staff access
Customize
sessions
Retrieve
counseling
records
Review
correspondence
Resources
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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
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New counseling sessions
Future releases of OSLC
PESC Online Loan Counseling standard
Early Awareness and Outreach
•
Explore careers
•
• CareerShip
Prepare for college
•
•
• Make High School Count
Pay for college
Default Prevention
•
Success in College Guide
Money Management
•
• Calculators
• Financial Literacy Counseling
Show Me the Future®
•
Social networking tools

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Facebook fan page
facebook.com/pages/Mapping-YourFuture/64772249281?ref=share
LinkedIn
www.linkedin.com (Mapping Your Future
group)
MySpace page
www.myspace.com/myfmanageyourmoney
Twitter
@MYFinc
Contact information
Beth Ziehmer
OSLC
[email protected]
(573) 796-3730
CariAnne Behr
Counseling powered by MYF
[email protected]
(573) 634-8461
Catherine Mueller
Mapping Your Future
[email protected]
(940) 497-0741