Financial aidvantages [Vol. 1, no. 1 (Spring 1998)]

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PI eorgia Student Finance Commission's
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1/1 INANCIAL AIDVANTAGES
A Quarterly Publication for Georgia's Student Financial Aid Community Vol. 1 No. 1/5pring 1998

In this issue .

Federal Update

2

Conversion Update .. 3

Calendar

5

HOPE 2000

6

GASFM Conference 8

It's to Your Advantage:

"Mapping

New Borrower Option Saves Georgia Students Money Your Future?"

Students who had loans disbursed on or after July 1, 1997 will now be able to save money and make easier repayments thanks to a borrower benefit program recently established by the Georgia Student Finance Authority.
The program, entitled "Georgia Advantage," allows students to save money on repayment, which lowers their overall cost of college.
On a typical $10,000 loan, a student can save $865 by meeting three payment criteria:

, Students who agree to automatically deduct their loan repayments from their checking account get their loan interest rate reduced by 0.25 percent.
Savin9s: $241

, If a student borrows more than $8,333 and makes the first 24 scheduled repayments on time, he/she earns a partial credit on the loan origination fee.
Savin9s: $93

, After 48 on-time payments, the student's loan interest rate will decrease by 2 percent for the remaining repayment period.
Savin9s: $531

For more information, call (770) 414-3000 in Metro Atlanta or toll free at (800) 776-6878.

A HOPE Scholarship Highlight:
jOO,OOO and Counting-

Like most college freshmen, Lauren Stripling has experienced some momentous events in the last academic year. But few can say that they were lucky enough to meet Governor Zell Miller and attend his State of the State address in early January. As founder of Georgia's HOPE Scholarship Program, Governor Miller wanted to

recognize Stripling for a very special purpose: She is the 300,000th student in Georgia to receive a HOPE Sch9larship.
Georgia's 300,OOOth HOPE Scholnr, Lauren Stripling, shown here with Governor Zell Miller.
Stripling, 18, attends the University of Georgia.

She graduated from Newnan High School with an impressive 3.8 grade point average while playing varsity soccer and working on the school newspaper. Stripling earned a 4.0 GPA at UGA during the summer and fall quarters and is considering a major in history education. Lauren is the middle child of three of Jim and Debbie Stripling of Newnan.

For lfWre information on the l-IOP[ Scholarship Program, see page 6.

JUDlp On-line for Guidane
"Which college is best for my interests?" "How can Ifind what careers best suit my skills?"
"What loans or scholarships are available to me?"
If these are questions you often hear, you'll be pleased to know that there's a new, one-stop information site for these topics showcasing on a computer near you.
The Georgia Higher Education Assistance Corporation, a division of the Georgia Student Finance Commission, is proud to be one of 20 guaranty agencies participating in the Federal Family Education Loan Program (FFELP) sponsoring the Mappi"9 Your Future Web site (www.mappingyour-future.org). You can also access Mapping Your Future by going to GSFC's Web site at www.gsfc.org and clicking on the Mapping Your Future icon.
MAPPING Continued on page 6
Mapping Your Future
answers questions on everything from how to manage student loan debt to developing a career plan, with tips on repayment and advice on job hunting.

The following information is a summary of recent Dear Colleague Letters (DCLY. To obtain a copy of the Dear Colleague Letters listed, please contact GHEACs compliance staff at (770) 414-3052, 3053 or 3054.

Year 2000: Avoid. Furore Computer Problems: GEN-98-1, January 1998

This DCl advises institutions to begin to take appropriate steps in order to avoid the Year 2000

the proper functioning of the Title IV Student Financial Assistance Programs.

The Department warns that serious processing errors and disruptions to student aid delivery an

ty

may result from the failure of systems to become compliant with the Year 2000 changes.

The Department of Education has created a "Year 2000 Problem" Web page, which offers infor

to expect, what the Department is doing to become compliant and what customers and partners can from postsecondary institutions about the Year 2000 problem can be sent via e-mail to ope_y2k@ed.gov.

Stud.ent JEligibility: GEN-98-2, January 1998

This DCl clarifies the following eligibility issues which have arisen as a result of recently enacted legislation:

-fF Updating household size and number of family ~ loan limits-graduate/professional

members in postsecondary education

preparatory courses

1F Flexible spending arrangements

1? Consortium Agreements-acceptance of "D" grades

-fF Welfare Reform legislation

~ Income protection allowance

1F Children born abroad to U.S. citizen parents

1F Application processing for certain native Americans

Effect of the Solomon-Pombo Amendment: GEN-98-3, January 1998
This DCl explains the effect that the Solomon-Pombo Amendment would have on the Title IV Student Financial Assistance Programs if an institution is found to have denied or restricted access to military recruiters or have denied or restricted the establishment, maintenance or efficient operation of a senior Reserve Officer Training Corps (ROTC) unit.

llntitutional Improvemen1l: Spedalit Staffing: GEN-98-4, January 1998
This DCl announces the staffing of an Institutional Improvement Specialist for each Case Management Team. For region IV, the Institutional Improvement Specialist is Sheila King. Her duties include implementing the compliance improvement function in the Case Management Team, offering targeted technical assistance and presentation on service-related policies and procedures. Assistance may be offered over the phone, in writing, at the regional office, at workshops or on site at institutions.

The Federal Emergency Management Agency designated the following counties to be disaster areas due to severe winter storms, flooding and tornadoes:

january 6, February 12, 25 Hernando, Broward, Dade, Monroe, Alachua, Baker, Bradford, Brevard, Citrus, Clay, Columbia, De Soto, Dixie, Duval, Gilchrist, Hamilton, Hardee, Hernando, Highlands, Hillsborough, Lafayette, Lake, Manatee, Marion, Orange, Osceola, Pasco, Pinellas, Polk, Seminole, Sumter, Suwanee, Union, Taylor and Vol usia counties in Florida
january 10 Cinton, Essex, Franklin, jefferson and St. Lawrence counties in New York
January 13, February 5 Carter and Unicoi counties in Tennessee
January 15 Androscoggin, Cumberland, Franklin, Hancock, Kennebec, Knox, Lincoln, Penobscot, Piscataquis, Oxford, Sagadahoc, Somerser,

Waldo, Washington and York counties in Maine
January 16 Avery and Mitchell counties in North Carolina
january 25 Belknap, Carroll, Cheshire, Coos, Grafton, Hillsborough, Merrimack, Strafford and Sullivan counties in New Hampshire
February 9, March 9 Alameda, Amador, Butte, Calaveras, Colusa, Contra Costa, Fresno, Glenn, Humboldt, Kern, Lake, Marin, Mendocino, Merced, Monterey, Napa, Sacramento, San Benito, San Bernadino, San Diego, San Francisco, San joaquin, San Luis Obispo, San Mateo, Santa Barbara, Santa Cruz, Solano, Sonoma, Sutter, Tehama, Tulare, Venture, Yolo and Yuba

counties in California
February 24 Addison, Chittenden, Franklin, Grand Isle, Orange and Windsor counties in Vermont
March 3 Atlantic and Cape Counties in New jersey
March 10 Coffee, Dale, Escambia, Geneva, and Houston Counties in Alabama
March 11 Baker, Dougherty, Irwin, Miller, Montgomery and Seminole counties in Georgia
Guaranty agencies and lenders are authorized to use the Department/s disaster-related forbearance policies to assist FFELP borrowers who are residents of those counties.

*Dear Colleague Letters are notices generated by the u.s. Department of Education providing information, guidance and clarification on
{. 72 l issues concerning the administration of Title IV programs. The DCLs are sent to postsecondary institutions, guaranty agencies and ~ lenders who participate in these programs.

GSFC's Financial AidVantages Newsletter/Spring 1998

lJnlippiny Their Winys Parent, Counelor and Financ::ial Aid Direc::tor Can Help in Alleviating Strain of Sludent Debt
by Glenn Newsome, GSFC Executive Director

We often hear the adage, "Don't go borrowing trouble:' As numerous studies indicate the rise of student debt, this saying could easily describe the fate many students face when they decide to take out a school loan. Due to climbing college tuitions and the effects of the 1992 Higher Education Act (which increased the number of students eligible for loans), more students are using loans to finance their educations.
Unfortunately, many of these students are experiencing the burden of mounting debts. A recent study by Nellie Mae revealed that the average student debt increased from $8,200 in 1991 to $18,800 in 1997. The Chronicle of Higher Education recently reported that 40 percent of the debt owed to the federal government is delinquent payments on student debts, which shows that many students are finding it difficult, if not impossible, to make reasonable repayments. In short, even after these students have worked hard to earn a degree, their freedom is limited. Major life decisions are put off indefinitely and personal prosperity can be significantly delayed.
This is not surprising news to those of us who work in the financial aid business. However, there are measures students, as well as counselors and parents, can take to alleviate the strains of debt. First, it is imperative that parents stress the importance of academic achievement to their children. We need to encourage them to study hard and make good grades, thereby increasing their chance to earn a scholarship or grant.
Parents can also take advantage of federal programs, such as PLUS (a parent loan for undergraduate students) and the new Taxpayer Relief Act.

These are designed to save families money for education. Keep in mind that a scholarship may not be the total answer either. For instance, Georgia's HOPE Scholarship doesn't cover housing, meals or living expenses, which can add up to thousands of dollars annually. A comprehensive approach to saving and studying hard is vital to maximizing the resources needed to achieve higher education.
Higher education leaders are also urging counselors to exercise more targeted counseling to student borrowers. Counselors will need to customize their advice to the borrower, taking into account their family background, the degree earned and the borrower's potential earning power. By providing tailored guidance, counselors can serve students more effectively, preparing them for future budget structuring and repayment possibilities within that budget.
If borrowing standards are communicated to students by school counselors, financial aid counselors and parents, they will have a better opportunity to borrow reasonably and avoid the potential burden of student loan debt. By reinforcing good study habits, rewarding academic achievement and saving money, we can help students take that first step toward the freedom necessary to pursue their dreams. In the long run, we are helping to unclip their wings as they strive to spread them in a new world. We need these students out in the workforce, free to reach for success and free to contribute to the future of Georgia.

Guarantor Software
Conversion Update
The Georgia Higher Education Assistance Corporation (GHEAC) conducted information update sessions for participating schools on March 26 and 27. The sessions were designed to acquaint participants with the Corporation's new GOALS system, procedural changes and enhancements to service. The lender session was conducted on March 17.

SCHOLAR Software
Training Sessions
LION for loan application processing will not be supported after April 1, 1998. For those schools utiliZing LION only for application processing, training sessions for SCHOLAR, the new software that will replace LION and PRIDE, were conducted on March 11 and 12, 1998. For schools that utilize PRIDE, training sessions will begin May 1, 1998 and continue through December 15, 1998. Installation of SCHOLAR will be scheduled May through December 15, 1998. The PRIDE software will be supported through December 31, 1998.
For questions regarding any of the training or update sessions mentioned above, please contact Robin Forte' at (770) 414-3054 or Carole Jones at (770) 414-3053.

Division Collaboration:
Key to Effedive Student Servies
By Terry L. Faust, Ed.D., Financial Aid Director of Kennesaw State University
The organizational structure of a college or university can affect the quality of services available to students. When I arrived at Kennesaw State University in 1992 as Financial Aid Director, I observed firsthand the results of miscommunication among divisions, such as poor decision making and incorrect information dissemination. These complications were directly attributed to the fragmented organizational model in place at that time.
In 1995, Dr. Nancy King, Associate Vice President and Director of CAPS (Counseling, Advisement and Placement Services), was appointed as Vice President for Student Success and Enrollment Services. This realignment enabled the Office of Admissions and Registrar's Office to join forces with Student Financial Aid, CAPS, Career Services, Student Life, and Student Development and Wellness. The focus of this new division was to provide collaborative campus services to enhance the success and continued enrollment of our students.
This. division-wide collaboration allowed the Office of Student Financial Aid to work with various Student Success and Enrollment Services in an attempt to increase campus awareness of our services. The effects of this

union have been very positive. For instance, Financial Aid now participates in parent and student orientations, an important part of division-wide collaboration. Another example is that Financial Aid collaborates with Admissions and Student Life in the annual Financial Aid Fair. The Office of Admissions and Student Financial Aid continually exchange student information in an ongoing effort to reach projected enrollment goals.
Kennesaw State University's decision to form a Division of Student Success and Enrollment Services has had a profound effect on the quality of services offered to students. It makes sense to join divisions and adopt a common approach; after all, we share the same objective: helping students.
In each issue we will feature an article by a contributing columnist from the Georgia financial aid community.

GSFC's Q&A Corner
The commission receives a variety of questions on a daily basis. Below is just one of the questions we answered recently:
mWhat are the loan limits for a Federal Family Education Loan Program (FFELP) student loan borrower with a bachelor's degree, who must take additional courses to prepare for a graduate or professional level program?
. . . Per the revised policy effective for loans originated or certified
IIi.I on or after January 16, 1997, these students taking coursework
necessary for acceptance into a graduate or professional program may borrow up to the maximum subsidized loan amounts applicable to a fifth-year undergraduate student. This means that dependent students may borrow up to $5,500 and independent borrowers may borrow up to $10,500 ($5,500 plus $5,000 in additional unsubsidized loans). The school must collect documentation that the coursework is required for admission into a graduate or professional program. Additionally, there is a statutory requirement that the coursework cover no more than a single, consecutive twelve-month period.
Cite: Dear Colleague Letter, GIN 98-2, January 1998

COMMON MANUAL:
Unified Student loan Policy Update
An update to the Common Manual is anticipated for the summer of 1998. The target date for publication is July I, 1998. Until such time that the update is distributed, guarantor bulletins will be issued summarizing the changes in policy. The July I, 1998 update to the Common Manual will be incorporated into the CD-ROM that will be available at the NCHELP Convention scheduled for September 1998.
The primary policy focus, at present, is the common claim and preclaim initiative. Several proposals focusing on these areas of processing are under review by the industry. Upon finalization and approval of the proposed policies, GHEAC will notify schools, lenders and servicers by distributing a bulletin announcement.
Also, the Common Manual Policy Committee has performed an analysis of the Fair Credit Reporting Act and determined that the Common Manual policies were not impacted.

Clip & Save Calendar
Eletroni Aid Offie Workshops Sponsored by the U.S.D.O.E.
Workshops will be held in Atlanta at the Regional Training Facility. Instructions on how to register are included in the ANN-97-14 DeL.

June

11-12

June

18-19

July

23-24

August

6-7

August

18-19

September 15-16

May 1999 7-8*

*Workshop to be held at Savannah State University

1998 HOPE Deadlines For Finandal Aid Directors:

May 15 May 15 May 15 June 1 June 15 June 30
July 15 Sept. 15 Dec. 15

SIG awards/payments and reconciliation HOPE Teacher Reconciliation PROMISE Teacher Reconciliation TEG/HOPE Grant Spring awards/payment TEG/HOPE Grant awards/payments reconciliation HOPE Scholarship awards/payment (award reports should be submitted within 45 days of the first day of classes for each term) HOPE Scholarship Reconciliation TEG/HOPE Grant Summer awards/payments TEG/HOPE Grant Fall awards/payments

1998 HOPE Deadlines For High Sbool Counselors:

June 19

Final High School Eligibility List

~[QRGIA
Student rinance Commission 2082 fast {xchange Place Tucker, GA 30084

HOPE Program
In Metro Atlanta
Student Loans
In Metro Atlanta
Loan Guarantees Web site Address

(800) 546-HOPE (770) 414-3085 (800) 776-6878 (770) 414-3000 (800) 776-6878 www.gsfc.org

Financial AidVantages is a new quarterly publication which replaces The Loan Ranger Newsletter. Financial AidVantages is a newsletter representing all divisions of the Georgia Student Finance Commission.

eed with the HOPE 2000 Campaign

~ar 2000 is fas proaching. turn of entury gains :r:1vtum e excitement Ii\liJ;lg special events that n t~f fall on this date begins to ild as well. Such is the reason for the fanfare encircling the Class of 2000, a young group of students handed the unsolicited honor of carrying us into the next millennium. Before these youngsters head into the future at full force, they'll need to be prepared for a few scholastic changes that will affect their educational goals, and ultimately, their futures.
One of these changes involves Georgia's HOPE Scholarship Program. To earn a HOPE Scholarship, Georgia students must have a liB" average in high school. However, for the Class of 2000, only the grades earned in

core curriculum subjects will be counted in figuring their GPA, as shown in the chart below.
Today's tenth graders must prepare for graduation and college in advance. We can help them by keeping up to date with current standards. For more information

on HOPE 2000 or Georgia's HOPE Scholarship, please call (800) 546HOPE or visit our Web site at www.gsfc.org.
Remember, tomorrow is just around the corner. By helping students prepare today, HOPE can be there waiting.

Academic Requirements for the Class of 2000
For the Class of 2000, only the grades earned in core curriculum high school subjects will be counted in figuring the CPA for HOPE eligibility. The only subjects that will be counted and the number of units the student must have earned are listed below.

College Preparatory Diploma

English Language Arts 4 units

Mathematics

3 units

Social Studies

3 units

Science

3 units

Foreign Language 2 units

TOTAL

15 units

Vocational Technical Diploma

English Language Arts 4 units

Mathematics

3 units

Social Studies

3 units

Science

3 units

TOTAL

13 units

GSFC WeloD1.es New Board MeD1.ber
The agency would like to recognize a recent addition to the GSFC Board. Dr. Kirby Godsey of Macon was officially sworn in by Governor Miller on February 3, 1998 as a board member. Dr. Godsey is the president of Mercer University and a leader in higher education. He has earned degrees from the University of South Carolina, Tulane University, the University of Alabama, New Orleans Baptist Theological Seminary and Samford University. Dr. Godsey, 61, is married to Joan Stockstill Godsey. They have four children: Raleigh, Hunter, Erica and Stephanie.

GSFC Board Approves Fields of Study

The Georgia Student Finance Commission Board approved the fields of study for FY 99 for the GSFC Service Cancelable Loans. The approved fields of study are:

Dental Hygiene Dietetics Laboratory Technology Health Information Management Medical Technology Nurse Anesthesia L1NC (Ladders in Nursing Careers) DHR (Nursing) Occupational Therapy Physical Therapy

Radiologic Technology Optometry Dentistry Gerontology Nursing Pharmacy Physician Assistant Respiratory Therapy Veterinary Medicine ICAPP (Intellectual Capital
Partnership Program)

MAPPING Continued from page 1
By accessing this easy-to-use site on the Internet, students, parents and financial aid professionals can receive a wealth of information regarding college selection, career planning and financial aid.
This site covers every inquiry a young person or someone considering job changes might have. Visitors to the Web site can also retrieve information on the sponsoring guarantors, which are listed on the home page. A recent addition to the site is On-line Student Loan Counseling, a service which debuted late last year.
Mapping Your Future is an excellent tool for accessing useful information quickly. Growing in popularity among financial aid offices around the country, the site is proving to be an effective means in reaching students and counselors. GSFC hopes you will encourage students, parents, financial aid directors and schools in your area to take advantage of this tremendous communication vehicle.

GSFC's Financial AidVantages Newsletter/Spring 1998

1998 Georgia General AsseIDbly Roundup
The legislature adjourned on March 19th after a 40-day session. Following is a list of highlights from the session:

Fis:a1 Year 1999 GSFC Budget:

State Funds-$.l.l.5 nrl.IIion Highlights:
, $25.7 million for Tuition Equalization Grants for Georgia students attending private colleges.
, $876,868 for Georgia Military Scholarship Grants; $337,500 for North Georgia College and State University ROTC Grants.
, $617,816 in increased funding for the Intellectual Capital Partnership Program (ICAPP) and other service cancelable loans.

",,,

, $540,750 for a new pilot work-study program-WISE (Work Incentive for Student Education).

, $100,000 for a new Georgia Army and Air Force National Guard service cancelable loan program.

Lottery Funds-$217.5 nrl.IIion , $211.2 million for HOPE Scholarships to Georgia students attending public and private colleges, universities and technical institutes; $3.5 million for HOPE Teacher Scholarships; $1.1 million for PROMISE Teacher Scholarships and $750,000 for engineering cancelable loans.
, $500,000 to provide retroactive funding for HOPE Scholarships for an estimated 166 home study students who are expected to have a 3.0 grade point average (GPA) after 45 quarter hours of college work
Legislation: (Note: Governor Zell Miller has 30 days to sign or veto each bill)
Senate Bills , Senate Resolution 529-Places an amendment to the Georgia Constitution on the November ballot that provides all proceeds from the Georgia Lottery to be spent on HOPE Scholarships, prekindergarten and a shortfall reserve. Any leftover lottery money may then be used for school technology and for fast growing school systems.
House Bills , House Bill 1556-Provides for putting the current HOPE regulations into law (codification).
, House Bill 884-Provides for the denial and revocation of certain professional licenses if the person has a defaulted student loan.
, House Bill 1516-Provides for a new service cancelable loan for service in the Georgia Army and Air Force National Guard.
, House Bill 1552-Provides for students who attend Georgia Military College on a military scholarship for their first two years to carry that scholarship with them if they attend North Georgia College and State University.

erence Annou
ARd EN of FiNA GASFAA 1998 SpRiNG Co
Mark your calendar for this year's GASF Spring Conference, scheduled for May 27-29. well chosen theme, "Midnight in the Garden Financial Aid," is most fitting as this year's conference is being held in historic Savannah. Enjoy two and a half days of informative meetings and training sessions, in which our profession's most pressing issues will be addressed. Dr. Dorothy L. Lord, President of Coastal Georgia Community College, will be giving the keynote address and the Federal Update will be provided by Barbara Gray from the Department of Education.
You can register for the conference by simply accessing the GASFAA Web site at www.gsu.edu/ -wwwfia/gasfaa. Make your plans now to attend this enlightening and educational conference-it's your chance to grow in the garden of financial aid.

Sc~oIARS~ip GiVE...AwAys & SpEciAl MEMENTOS AWAiT you iN SAVANNA~ ...
A perfect way to top off your experience at the GASFAA Spring Conference would be to walk away with one of three $1,000 Institutional Scholarships that the Georgia Student Finance Commission is giving away. All you need to do is look in your mail for a special invitation from us and bring it by our booth to register. The winners of the drawing for the scholarships will be announced during breakfast on Friday, May 29.
Your invitation holds additional surprises for you as well: We'll be unveiling a new booth at the conference. Drop by and pick up one of our annual reports and receive a special Savannah memento. All this awaits you in Savannah-so be sure to hold on to your invitation and we'll look forward to seeing you there!

Georgia Student Finance Commission

HOPE Program (800) 546-HOPE

In Metro Atlanta

(770) 414-3085

Student Loans

(800) 776-6878

In Metro Atlanta

(770) 414-3000

Loan Guarantees (800) 776-6878

Web site Address www.gsfc.org

Financial AidVantages is published quarterly by the Georgia Student Finance Commission. Information contained herein is believed to be accurate. Please direct comments or questions about the newsletter to the editor at the address shown.
The mission of the Georgia Student Finance Commission is to promote and increase access to education beyond high school for Georgians, by delivering student financial aid information, services and funding in a way that is fiscally responsible and understandable.

'tmRGIA
Student finance Commission 2082 {ast {xchange Place
Tucker, GA 30084

FIRST CLASS