Financial aidvantages [Vol. 5, no. 5 (Dec. 2002)]

Financial AidVantages
The official newsletter of the Georgia Student Finance Commission
Volume 5, No. 5, December 2002
WELCOME to the online edition of the Georgia Student Finance Commission's newsletter Financial AidVantages.
We welcome your suggestions and comments. Just send a message to editor Wagers Chenault at wagersc@mail.gsfc.state.ga.us.
TABLE OF CONTENTS:
Section 1 - Lead Stories Appreciation - Glenn Newsome Reductions in Scholarships and Grants
Section 2 - Special Column Technology Update
Section 3 - News from the Georgia Student Finance Authority Charles Davis Joins GSFA
Section 4 - GHEAC News for schools, lenders, and servicers GHEAC On the Move New Deferment Forms Approved by USDOE New Integrated Common Manual on Web Federal Register Published November 1, 2002 GHEAC's Annual Conference Late Disbursement Rule Change New Processing Options GHEAC Action Plan Updated Peer Financial Counseling Plan Growing By Leaps and Bounds
Section 5 - Staff Profiles Bill Myers Sarah Ergle
Section 6 - GSFC Staff News GSFC's Giving Spirit Staff Join Professional Organization
Section 7 - Last Word
SECTION 1- LEAD STORIES:

Appreciation By Glenn Newsome [ Top of Page ]
As we rapidly approach the Holiday Season, I want to thank you for your support of the Georgia Student Finance Commission during the past year and let you know of my plans to retire as Executive Director of the GSFC on January 1, 2003.
It has been my honor and privilege to serve the people of Georgia in several different capacities since August of 1970. My service as GSFC Executive Director since May, 1996, has been the pinnacle of my career. The agency is blessed with dedicated staff members who understand our motto, "Helping Students is Our Only Business."
In the past six years we have expanded Georgia's HOPE Scholarship Program to become the number one merit-based scholarship program in the nation. We have more than doubled the HOPE Teacher Scholarship Programs. We created a new program for needbased students, and significantly expanded our service-cancelable loans for health related professions in Georgia. We also increased our student loan and guaranty services for students. These improvements would not have been possible without your leadership and support.
Today we have more programs to assist students than ever before in the history of our state. These programs and your continued leadership ensure a bright future for all Georgians.
The new Executive Director will need your continued support and advice as we strive to increase educational opportunities for all Georgians. It has been a pleasure knowing and working with you. Thank you for all you do to serve the people of Georgia. I wish you the best in your future endeavors.
Click here http://www.gsfc.org/communications/gallery.cfm to see a picture of Glenn.
Reductions in Scholarships and Grants [ Top of Page ]
Due to a continued decline in state revenues, it will be necessary to reduce the amount of financial aid students receive directly from the State of Georgia for the remainder of FY 2003. Georgia's HOPE Scholarship Program and all federal programs are not affected. However, funds for the following state programs are being reduced:
Tuition Equalization Grant Governor's Scholarship Program Georgia LEAP Grant Law Enforcement Personnel Dependents Grant North Georgia College ROTC Grant North Georgia College Military Scholarship North Georgia College Transfer Scholarship Service Cancelable Education Loans
A letter detailing the reductions was sent by the Georgia Student Finance Commission to all college presidents and financial aid directors on November 27, 2002. Schools should

refer to that letter for specific information about the amounts reduced from each program. For more information about the reductions in Service-Cancelable Education Loans, call Stan DeWitt at (770) 724-9060 or Peggy Mathews at (770) 724-9230. For information about reductions in the other programs listed above, call Bill Flook or Charlene McGrath at (770) 724-9050.
SECTION 2- SPECIAL COLUMN
Technology Update [ Top of Page ]
By Bill Spernow Chief Information Security Officer Georgia Student Finance Commission
In the past two issues of Financial AidVantages, I discussed ways that the Georgia Student Finance Commission guards against hackers and others who seek unauthorized access to our agency's Web site and electronic databases. The first line of defense is a combination of firewalls; these devices control which computers on the external Internet are allowed to access our internal network. The second line of defense consists of an array of intrusion detection systems (IDS), which are sophisticated devices programmed to recognize and block known hacking signature codes, and a multi-tiered level of antivirus scanning software.
The obvious limitation to the IDS defense is that it can only recognize the code that it is programmed to recognize (e.g., the signatures). When a new hacking program is introduced, it may be hours or days before we become aware of its existence and update its respective signature into the IDS. During that time gap, systems are vulnerable. That's unacceptable, and so we have incorporated a third line of intrusion prevention defense, behavior recognition systems.
Hackers are like any other criminals - they usually follow predictable steps in planning and executing a crime. If someone carrying a big sack and a crowbar is seen roaming through a residential neighborhood knocking on doors and then hiding behind trees to see whether anyone answers - that's suspicious behavior that could indicate someone is planning a burglary. In the same way, if someone from an external computer on the Internet attempts to access our servers and tries to gain access to selected files, in a certain order, making certain queries, that pattern of behavior might match what a hacker would logically do in an attempt to find and penetrate vulnerable points in a network.
Information security specialists have created software programs called "agents" that are installed on every computer or server in the network. These agents are programmed to recognize sequences of behavior that typify hacking behavior. When an agent recognizes suspect behavior it "reports" this fact to a centralized command and control console designed to track all suspicious events related to network security. If a pattern of hacking behavior is identified, the console ascertains the IP address of the hacker and tells the firewall to block any transmissions originating from the hacker's Internet computer.
Firewalls, intrusion detection systems, behavior recognition systems. Together they

constitute a formidable defense against hackers. But the most important component of an effective information security system is still missing. Next month I'll discuss our fourth line of defense - the employees who sit behind their computers, doing their jobs, day in and day out.
SECTION 3- NEWS FROM GSFA GEORGIA STUDENT FINANCE AUTHORITY
Georgia's Higher Education Lender
Charles Davis Joins GSFA [ Top of Page ]
We are pleased to announce that Charles Davis recently joined the Georgia Student Finance Authority in the capacity of Compliance Officer. Charles comes to us from the Georgia Higher Education Assistance Corporation, where he served as a School Relations Specialist.
Charles has been a part of the financial aid community for more than 10 years. In addition to his work with this agency, he worked with the Tennessee Guaranty Agency for four years, and worked in the school environment for more than six years.
In his new position, Charles will be responsible for regulatory compliance for the loans owned and serviced by GSFA. In addition, he will keep the staff informed and trained on new and existing regulatory requirements.
Bill Myers Profile
Be sure to see Section 5 of this newsletter for a profile of Bill Myers, GSFA Business Development Specialist.
SECTION 4- NEWS FROM GHEAC GEORGIA HIGHER EDUCATION ASSISTANCE CORPORATION Georgia's Student Loan Guarantor Serving Students, Schools, Lenders, And Loan Servicers
GHEAC On the Move [ Top of Page ]
The Georgia Higher Education Assistance Corporation (GHEAC) continues to add service enhancements for students, schools, and lenders.
Recent Enhancements:
Implementation of new Late Disbursement extension (See related article) New Loan Guaranty Processing Options meeting 12/4 (See related article) Successfully utilized NSLDS online change capabilities for quickly resolving
NSLDS data discrepancies Implemented new PLUS Loan credit processing criteria Updated version of the Common Manual with changes and technical edits
approved through October 17, 2002 (www.nchelp.org/elibraryII/Main/05ComManual/05B-IntegratedComMan/default.htm) Notification that U.S. Department of Education issued the new Federal Register dated November 1, 2002 (www.nchelp.org/elibraryII/Main/03-FedReg/03AFinal%20Regulations/default.htm)

Notification of OMB's approval of the new deferment and forbearance forms (a>www.ifap.ed.gov/dpcletters/G02339.html)
Added Pro-Way Hair School as a new Georgia school client
Coming Soon:
Rapid Batch Change Transaction processing with ELM New MPN Forms Becoming a Meteor Data Provider Providing reference data to lenders and servicers in the CommonLine file Ability to reissue partial refunds via the system
New Deferment Forms Approved by U.S. Department of Education (USDOE) [ Top of Page ]
The following deferment forms have been approved by USDOE's Office of Management and Budget (OMB):
unemployment public service parental leave/working mother PLUS borrower with dependent student in-school economic hardship education related temporary total disability
The title of each form indicates the situations under which the form is used to evaluate the borrower's qualifications for deferment. Program participants may begin using the new forms beginning on or after January 1, 2003. Beginning January 1, 2003, only the new forms may be provided to borrowers. However, the current forms still will be processed if received after January 1, 2003.
To view copies of the new deferment forms, go to http://www.ifap.ed.gov/dpcletters/G02339.html.
New Integrated Common Manual on the Web [ Top of Page ]
A new updated version of the Integrated Common Manual is available online at the National Council of Higher Education Loan Program's (NCHELP) Web site, http://www.nchelp.org/elibraryII/Main/05-ComManual/05BIntegratedComMan/default.htm. This version of the Common Manual incorporates all changes approved October 17, 2002, and technical edits approved through October.
Federal Register Published November 1, 2002 [ Top of Page ]
The 2002 Federal Register was published November 1, 2002, for the Federal Student Aid Programs, Final Rule. A copy can be obtained from the National Council of Higher Education Loan Program's (NCHELP) Web site, http://www.nchelp.org/elibraryII/Main/03-FedReg/03A-

Final%20Regulations/default.htm. This Federal Register is the document that shows changes to regulations that govern the Federal Student Aid Programs.
If you have any questions regarding any information in this update, please call Audra Head at (770) 724-9163 or email audrah@mail.gsfc.state.ga.us.
GHEAC Mardi Gras: Parade of Service Annual Conference, March 4 & 5, 2003 [ Top of Page ]
Come join us in March for a jazzy time at GHEAC's Annual Conference. You can now register online at: http://www.gsfc.org/Guarantee/dsp_conf_reg.cfm.
Hotel Information The host hotel for the conference is the Georgia Center Hotel. Room rates for the conference are $64 - $69, depending on room type. For double occupancy in any room, $12 will be added to the room rate.
For reservation information, call 1-800-774-2760 or (706) 542-6364. The reservation department operates Monday through Friday from 8 a.m. to 6 p.m. (closed weekends and holidays). For other hotel information, call (706) 548-1311.
For more information on the Georgia Center Hotel, visit http://www.gactr.uga.edu/hotel/index.html.
Register early, and we will see you at the conference!
Late Disbursement Rule Change - Federal Register, November 1, 2002 - Final Rule
[ Top of Page ]
For loan proceeds issued as late disbursements, schools now can deliver those proceeds to the borrower within 120 days of the end of the student's loan period, or the date on which the borrower ceased to be enrolled at least half-time. This rule change replaces the former 90-day late disbursement directive. An institution still may not make a second or subsequent late disbursement unless the student successfully completes the period of enrollment for which the loan was intended, nor make a late disbursement if the student is a first-year, first-time borrower unless the student completes the first 30 days.
An Exception to the Rule With approval from the Department of Education, a school may make a late disbursement after the 120-day period, if the reason the disbursement could not be made was not the fault of the student. The Department plans to provide additional guidance on the process for submitting these requests.
The effective date of this change is July 1, 2003, but the Department of Education has granted institutions, lenders, and guaranty agencies the ability to implement this change earlier than the effective date. Georgia Higher Education Assistance Corporation has elected to implement this change immediately so that this might assist you with any future late disbursement issues.

If you have any questions regarding this policy change, contact Carole Jones by phone at (770) 724-9137 or email at carole@mail.gsfc.state.ga.us
New Processing Options [ Top of Page ]
On December 4, 2002, GHEAC conducted the first school and lender partners meeting and teleconference to present and discuss the new GHEAC processing options that will be available for the 2003-2004 award year.
GHEAC conducted separate school and lender meetings during which the new options were discussed in detail. Ruth Vincent moderated both meetings, while Cindy Abbot presented the new processing options, and Tracy Ireland discussed Single Source Partners services, performance, and cost during the lender meeting.
The new options are as follows: SSP as it is today, SSP + (NDN disbursements), Guaranty Only (Lender Flow), and Blanket Certificate Guaranty (BCG), also lender flow. Plans are moving forward, and we are on target for implementation on April 1, 2003.
GHEAC is implementing the new options in response to your input during our focus groups and task forces held this past year. We received a great deal of positive feedback about SSP, so schools wanting to remain with SSP with its single point of contact are encouraged to do so. Hopefully, the other options will meet the needs of schools that are committed to doing business with the GHEAC but wanted more flexibility.
We are excited about the new options and look forward to working with each of you in the future. For more information about the new processing options, please email or phone Cindy Abbott at: cindy@mail.gsfc.state.ga.us or 800-776-6878, Ext. 9133.
Action Plan Updated [ Top of Page ]
Over the last year GHEAC has gathered and responded to the recommendations made by the Customer Service, Communications, and SSP Flexibility & Technology Task Forces. The recommendations were developed into an Action Plan for GHEAC to document its progress in addressing our schools', lenders', and servicers' recommendations. You can view and print the updated Action Plan by clicking on http://www.gsfc.org/Main/publishing/pdf/GSFC_action_plan.pdf.
We continue to welcome your recommendations and suggestions to enhance GHEAC services to you and your borrowers. Suggestions and comments can be submitted to GHEAC anytime by using our Web site Suggestion Box by clicking on http://www.gsfc.org/Guarantee/dsp_comments.cfm.
You also can make suggestions by contacting: Cindy Abbott at (770) 724-9133 or 1-800-776-6878, Ext. 9133 or cindy@mail.gsfc.state.ga.us. Or any of GHEAC's staff by clicking on the GHEAC's "Who Does What?" Directory at http://www.gsfc.org/Guarantee/dsp_gheac_dir.cfm.

Peer Financial Counseling Program Growing by Leaps And Bounds By: Marcia Coleman [ Top of Page ]
Approaching its one-year anniversary, the Peer Financial Counseling Program (PFC) is growing by leaps and bounds. The program is a first for Georgia and offers students the opportunity to learn and then train their peers on four student-developed modules: 1) Making it On a College Budget: The Basics 2) Staying On Good Terms: Credit & Debt 3) Choosing to Understand: Student Loans 4) Becoming a Millionaire: Savings & Investments
The PFC program was piloted at the University of Georgia (UGA) and the Atlanta University Center (AUC) in the fall of 2001. Those institutions have continued offering PFC and have assisted in the further development and enhancement of the program. This semester alone, UGA, with 26 Peer counselors, has presented 34 sessions to over 265 participating students. The Peer counselors underwent comprehensive training and most will become Certified Peer Financial Counselors during the year. At the AUC this semester, six sessions have been presented to well over 300 students. Based on participant evaluations, the majority of participants felt that the modules were helpful in their everyday lives.
GHEAC's goal is to implement the PFC program on every campus in Georgia. Each institution that agrees to participate receives free training, marketing materials, and recruitment assistance. The following schools have agreed to participate in the PFC program during the 2002-2003 academic year.
Herzing College Atlanta Metropolitan College Emory University Emmanuel College** Gwinnett Technical College Brewton-Parker College Valdosta State University** North Georgia College & State University* University of Georgia** Savannah State University* Georgia Military College* Middle Georgia College State University of West Georgia Atlanta University Center (Spelman, Morehouse, CAU)**
* Schools that have begun recruitment and implementation of PFC ** Schools that have implemented PFC and conducted training sessions
Participating schools have commented on the great information shared during the sessions and how their students have greatly enjoyed presenting the program to their

peers. PFC is a valuable resource to offer to your students and will help foster responsible borrowers.
For more information on PFC, visit our Web site at http://www.gsfc.org/Guarantee/Peer_Counsel/index.cfm. All PFC materials are located on the site and can be downloaded and printed for use. If your school is interested in participating in this great program, please contact Marcia Coleman, Default Prevention Coordinator, GHEAC, at (770) 724-9174.
SECTION 5 - STAFF PROFILES
Bill Myers [ Top of Page ]
In October, Bill Myers was named Business Development Specialist with the Georgia Student Finance Authority (GSFA). Previously, he had served for almost three years as the Authority's Customer Service Senior Manager.
Bill joined GSFC in 2000, with a strong background in customer service and management. He worked with Office Depot for several years as a group sales manager and operations manager. Prior to that he worked with Speigel Inc for almost 13 years in their Call Center, first as a customer service rep, then as a trainer, supervisor, manager, and administrator.
His past experience in the corporate world has served Bill well; but working in financial aid has added an extra dimension to his career. "At Spiegel and Office Depot we were making sure orders were filled and delivered on time, making sure the customers were satisfied, and that's important," Bill said. "However, here at GSFC you're actually helping students get a higher education which, in turn, helps them to improve their lot in life, and that just gives you a sense of fulfillment that the other jobs could not match."
As Business Development Specialist, Bill is seeing another facet of financial aid. "Whereas before I was dealing directly with students and parents, in this job I'm dealing more with the schools, with financial aid directors, with loan processors," he said. "I'm going out there to see what's going on with the schools, what's going on in the market, so that we can customize the programs and products that we offer to the schools and also to make sure that what we're doing is of benefit to the schools." Bill regularly visits approximately 50 schools, "talking to them, finding out what the concerns are, finding out if they have any particular need that GSFC could possibly fill. As I tell them, 'I'm here to make your life easier.'"
Bill is a native Atlantan and graduated from Mercer, Atlanta with a double degree in Religion and Psychology. He enjoys travel and music. He plays piano and organ and currently serves as minister of music at his church.
Click here http://www.gsfc.org/communications/gallery.cfm to see a picture of Bill.

Sarah Ergle [ Top of Page ]
GHEAC's new Lender Client Relations Specialist is Sarah Ergle, who joined GSFC in early December. She comes to us from Emory University, where she served as assistant director of financial aid and was responsible for all loan processing.
Sarah was introduced to the financial aid community while an undergraduate in Alabama. She worked in Southern Union Community College's financial aid office as a work study student, and when she transferred to Birmingham-Southern College, she continued working in the financial aid office. After graduating with a bachelor's degree in Marketing, she went to Northern Illinois University to continue her training - and her budding career in financial aid. While successfully pursuing a Master's degree in Higher Education Administration, she worked in the financial aid offices at two other schools in the region. She was assistant director of financial aid at Aurora University and then became financial aid manager, the equivalent of financial aid director, at Waubonsee Community College. Then she moved to Atlanta and pursued her career full time at Emory, eventually moving on to GSFC.
"I came to the Commission because I wanted to broaden my horizons, do something new, and still stay in the same field," Sarah said. "In my new job I'll be looking at the compliance aspects of what the lenders are doing, performing lender audit reviews, and working with loans from the guarantor side," she said. "I've always processed loans from the school's side, so this is a new perspective. It's a lot different, but I like a challenge."
Born and raised in Alabama, Sarah likes to read, and she loves music. She sings with a Sweet Adeline chorus called Song of Atlanta, 150 voices strong, which recently did very well in an international competition. In addition to singing, she serves on the Song of Atlanta board and also serves as the group's Web master. She is engaged to be married next year.
"I'm very committed to this agency," Sarah said. "When I was at Emory I worked with representatives from GHEAC, and I knew how professional they were and how enthusiastic they were about what they were doing. Now that I'm here, I want to help build new relationships with all our clients and to strengthen relationships that are already there."
Click here http://www.gsfc.org/communications/gallery.cfm to see a picture of Sarah.
SECTION 6 - GSFC STAFF NEWS
GSFC's Giving Spirit By: Teena Redmond [ Top of Page ]
Once again, the employees of Georgia Student Finance Commission (GSFC) showed their support for the State Charitable Contributions. This charitable effort is an annual, statewide event that GSFC has continually patronized in a big way. In each of the past 10 years, GSFC has won an award for its contributions to this effort. Twice, GSFC has won the highest honor - the Governor's Cup Award.

Individually, employees are asked to make a payroll deduction contribution, or a onetime contribution to this charity effort. As in years past, a committee was formed to organize several other fund-raising events to enhance the employee contributions for this worthwhile endeavor. This year the committee members were Co-chairs - Barbara Butler and Jean McDowell, Secretary - Teena Redmond, Debby Lackey, Alice Williams, and Diafra Payne.
In the month of October, the committee held two breakfast sales, a hotdog/hamburger cookout, a bake sale, and a raffle to boost GSFC's contribution. The efforts of the committee members, and all of the many volunteers that cooked, served, donated, and purchased items for these events was once again, outstanding.
We are proud of our "Giving Spirit" at GSFC!
Staff Join Professional Association [ Top of Page ]
On August 15, 2002, four administrative support employees of the Georgia Student Finance Commission joined the International Association of Administrative Professionals (IAAP), Cherokee Rose Chapter. Congratulations to:
Jannie Anthony, Administrative Assistant, Human Resources Division Sonya Bady, Senior Administrative Assistant, Communications Division Monica Cherry, Executive Administrative Assistant to the Executive and Deputy
Executive Director Fabrienne Furniss, Senior Administrative Assistant, Accounting Services Division
With nearly 700 chapters and 40,000 members and affiliates worldwide, IAAP is the world's largest association for administrative support staff. The IAAP is an association for administrative professionals whose objectives are to demonstrate their willingness and commitment to hard work and dedication to their profession and their employers.
Being members of this professional organization, each employee will receive unlimited training classes, attend powerful impact seminars, and prepare for exams leading to two prestigious certifications -- the Certified Professional Secretary (CPS) and Certified Administrative Professional (CAP). Preparing for each exam will involve rigorous training in areas such as Finance and Business Law, Office Systems and Administration, Management, and Organizational Planning.
The only DeKalb County Georgia Chapter, Cherokee Rose Chapter, offers members the opportunity to reap the benefits of IAAP membership coupled with the convenience of a monthly lunch time meeting.
Congratulations to Jannie, Sonya, Monica, and Fabrienne for this outstanding achievement!
SECTION 7- LAST WORD Top of Page ]

The staff of the Georgia Student Finance Commission wishes each of you a happy and safe Holiday Season. In the new year, we look forward to working with all of our colleagues in the financial aid community to continue to enhance educational opportunities for all Georgians.