Financial aidvantages [Vol. 6, no. 1 (Jan. 2003)]

Financial AidVantages
The official newsletter of the
Georgia Student Finance Commission
Volume 6, No. 1, January 2003
WELCOME to the January 2003 edition of Financial AidVantages, the Georgia Student Finance Commission's monthly e-newsletter.
We welcome your suggestions and comments. Just send a message to the editor, Wagers Chenault, at wagersc@mail.gsfc.state.ga.us.
TABLE OF CONTENTS
Section 1 - Lead Stories Chat Night! GHEAC Annual Conference New GSFC Web Site
Section 2 - Special Columns Technology Update
Section 3 - GHEAC News for schools, lenders, and servicers GHEAC On the Move Call For Volunteers Report Card, Fall 2002 Reporting of Uninsured Loans Total and Permanent Disability Forms New Lender Agreements Mailed New MPN Forms Available Multi-Year Use of the Master Promissory Notes by Schools Electronic Cohort Default Rate (eCDR) GHEAC School/Lender Training Calendar Peer Financial Counseling One-year Anniversary
Section 4 - Staff Profile Donna Hall, GSFA Customer Service Manager
Section 5 - Last Word

SECTION 1 - LEAD STORIES
Chat Night Offers Free Information about Financial Aid
In February, students and their parents can get the latest financial aid information from some of the state's top experts - it's as simple as picking up the phone or turning on the computer!
Chat Night, scheduled for Tuesday, February 25, from 6 p.m. until 9 p.m., is an opportunity for Georgia parents and students to ask questions about financial assistance for higher education and get answers from experienced financial aid professionals. Anyone can join in through the Internet or a toll-free telephone line, and there is no charge for participation. It will be the fifth annual Georgia Chat Night sponsored by the Georgia Student Finance Commission (GSFC) and the Georgia Association of School Financial Aid Administrators (GASFAA).
Financial aid administrators from colleges around the state will share their expertise during Chat Night. They can be questioned about Georgia's HOPE Scholarships and Grants; other scholarships, grants, and loans; and the Free Application for Federal Student Aid (FAFSA). The FAFSA is the first application students must complete to determine their federal financial aid eligibility for grants, work-study jobs, and student loans. Information also will be available on service-cancelable loans, which allow graduates to repay by working in the field of study, such as teaching or nursing.
To participate in Chat Night by telephone, simply call toll-free 1-800-776-6878, any time between 6 and 9 p.m. on February 25. To participate online, go to GSFC's homepage at www.gsfc.org and click on the Chat Night link, on the left side of the page.
For more information about Chat Night or student financial aid in general, call 770-7249030.
For a printable flyer promoting Chat Night, click here: www.GSFC.org/Communications/Chats_doc/flyer.cfm.
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GHEAC Mardi Gras: Parade of Service

Plans for the 2nd Annual GHEAC Conference - "GHEAC Mardi Gras: Parade of Service" - are well under way and promise to provide you with valuable information, helpful training, and loads of FUN! Come enjoy a taste of New Orleans in Athens, Georgia! With its exciting Mardi Gras theme, the conference offers many fun and wonderful events that have been planned for you.
A wide variety of topics will be covered with invited guests from the National Council of Higher Education Loan Programs (NCHELP), the U.S. Department of Education, and Sallie Mae, as well as representatives from GHEAC. Topics such as GHEAC's new guarantee options will be revisited during the General Session on March 4. Please plan to attend the conference and do not forget to REGISTER EARLY.
To register for GHEAC's Annual Conference click here: http://www.gsfc.org/Guarantee/dsp_conf_reg.cfm. For hotel information, click on the Georgia Center's Web address: http://www.gactr.uga.edu/hotel/index.html. For general conference information, contact marciac@mail.gsfc.state.ga.us.
Don't miss the fun!
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New GSFC Web Site
On January 28, GSFC will launch its new Web site. The site will feature a new look, some new pages, and improved navigation.
Veteran visitors to our old site should be aware that you may need to reestablish some of your bookmarks (favorites), because the URLs for some pages have been changed. If you go to a bookmarked page that has a new address, you will be directed to our homepage. From there, you can link to the page you want, and bookmark it.
The address for our home page is the same - www.gsfc.org - as are the addresses for all of our password-protected pages (SURFER, STARS, IBIS, CSI, etc.).
We hope you find our new site more user friendly and informative. If you have any comments, questions, or suggestions about the site, please email wagersc@mail.gsfc.state.ga.us. We welcome your input.
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SECTION 2 - SPECIAL COLUMN
Technology Update
By Bill Spernow Chief Information Security Officer Georgia Student Finance Commission
In past issues, I have described software and hardware that the Georgia Student Finance Commission uses to safeguard its information infrastructure. Now let's look at the most important component of any company's security system: the individual employee. Alert employees can prevent or minimize the damage caused by hackers and other cyber criminals more than most people realize. They are the first line of defense in any successful information security program. Let me explain why.
Social engineering is one of the most common and effective techniques hackers use to break into secure systems. Social engineering is simply engaging a company employee in seemingly innocent conversation (usually by phone but also by email, mail, or face-toface) in an attempt to find out snippets of information that can be pieced together to gain access to a protected system.
Example: Many bosses share their computer password with their administrative assistant (a really bad idea and usually against company policy, but it happens all the time - as any hacker knows). The assistant wants to make sure he remembers the password, so he writes it down. He's too smart to write it on paper, so he creates a document on his PC and names it "boss password" or something similar. Meanwhile, a hacker routinely fishing for info, calls a company employee at random. Representing himself as a vendor, the hacker says, "Oh I'm sorry, I was trying to reach your IT division director. Can you give me that name? Karen Jones? Thanks." Then, using the same scam, the hacker calls another employee and finds out the name of the assistant to the boss. Finally, the hacker calls the assistant and says, "Hi, you don't know me, but I just started working for Karen Jones in IT. I've been asked to beef up computer security and assign new passwords to all staff. Your new password is "patsy," but I need your old password to switch over. What is it?" The hacker gets the password, accesses the assistant's computer, discovers (much to his delight) a file named "boss password," ending up with complete access to all the files in the personal computer of the head of the company.
It's incredible how effective and damaging such a simple ruse can be. The problem is, most of us are honest, and we naturally expect others to be just as honest. Hackers are not honest! As a result, every employee must be constantly on guard against social engineering. At GSFC, we accomplish this with in-depth security training for all employees.

During this training we stress the importance of the following -- Employees should be aware of any change, large or small, in the everyday operation of their computer network. Does it take longer than usual to open files or go online? Has the appearance of your background screen or icons changed? Is there less disk space available? Any of these things could be red flags indicating unwarranted tinkering with your computer.
Of course, noticing an irregularity is not enough - it must be reported. I've investigated hundreds of cyber crimes, and in almost every case it turns out that some employee, in retrospect, will remember an odd phone call, or they'll recall a couple of days last month when their computer was acting strange. If those red flags had been reported immediately, potential damage could have been avoided. When an employee observes something strange, they should notify their supervisor or information security officer without delay, as most hackers only need 30 minutes of access time (or less) on a system to get what they are after.
This concludes our series on the basics of information system security; I hope you have found it informative and useful. From time to time, in future issues of Financial AidVantages, Technology Update will return with new articles related to the ever changing and expanding world of information security.
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SECTION 3 - NEWS FROM THE GEORGIA HIGHER EDUCATION ASSISTANCE CORPORATION (GHEAC)
Georgia's Student Loan Guarantor Serving Students, Schools, Lenders, and Loan Servicers
GHEAC On the Move
The Georgia Higher Education Assistance Corporation (GHEAC) continues to add service enhancements for students, schools, and lenders.
Recent Enhancements:
Implementation of the New Stafford MPN Forms (related article below)
Providing borrower reference data to lenders and servicers in the CommonLine file

Capability to electronically accept reporting of uninsured loans by lenders using the NSLDS Lender Manifest and CAM files (related article below)
Coming Soon:
Enhancing GHEAC's system to accept the use of the multi-year serial feature of the MPN for 2-year schools
Implementing Rapid Batch Change Transaction processing with ELM
Becoming a Meteor Data Provider
Acquiring ability to systematically reissue partial refunds
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Call For Volunteers
GHEAC is now forming a New Options Implementation Task Force. As we previously reported, GHEAC will be offering new processing options for the 2003-2004 processing year. The new options include SSP as it is today, Guaranty Only (Lender Flow), Blanket Certificate of Guaranty (BCG), New Lender Partners, and for SSP schools using ELM, disbursements via the National Disbursements Network (NDN).
GHEAC needs you and your expertise as we plan for the implementation of the new options you have told us you want.
To volunteer for the task force, please contact Diafra Payne at 800-776-6878, Ext. 9130, or via email at diafra@mail.gsfc.state.ga.us. If you have specific questions about any of the options, please contact Cindy Abbott at 800-600-3453, Ext. 9133, or via email at cindy@mail.gsfc.state.ga.us.
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Report Card, Fall 2002
GHEAC Customer Service Satisfaction Categories:

Telephone Customer Service -- 86.2% Agreed Improved of which 28% Strongly Agreed; 12.2% did not respond.
Communications -- 75.3 % Agreed Improved of which 31.4 % Strongly Agreed; 5.4% Disagreed; 19.3 % did not respond.
Training -- 92.7% Agreed training is sufficient; 8% did not respond. 34% would, however, like to have additional support for the interface between their school's FAMS and ScholarNet.
Response rate: 30.6% (School Respondents: 57% Private, 30% Public, and 13% Career)
Thanks for taking the time to give us this valuable feedback. Survey details will be posted on our Web site. We welcome your feedback at any time by phone, email, or via our `suggestion box' that appears on our Web site at http://www.gsfc.org/Guarantee/dsp_comments.cfm.
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Reporting of Uninsured Loans
On June 12, 2001, GHEAC issued a lender update requiring that uninsured loans be reported by paper. GHEAC is now able to accept the reporting of uninsured loans either through Common Account Maintenance (CAM) and/or National Student Loan Data System (NSLDS) Lender Manifest. Lenders: please begin using CAM or NSLDS Lender Manifest to report uninsured loans to GHEAC.
If you have any questions regarding this update, or if you are interested in using CAM for status reporting, please contact Sarah Ergle at 770-724-9139 or email sarahe@mail.gsfc.state.ga.us. If you have any NSLDS reporting questions, please contact Teena Redmond at 770-724-9167 or teena@mail.gsfc.state.ga.us.
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Total and Permanent Disability Forms
The current Total and Permanent Disability Discharge Application used for all three of the Title IV loan programs (Federal Family Education Loan Program, Federal Perkins Loan Program, and William D. Ford Federal Direct Loan Program) has an expiration date

of November 30, 2002. Schools and lenders may continue to use the current form until March 31, 2003.
The Office of Management and Budget (OMB) has approved a new Total and Permanent Disability Discharge Application. Beginning March 31, 2003, only the new forms may be provided to borrowers. Other Total and Permanent Disability Discharge Applications may still be processed after that date, but the new form must be provided to borrowers on or after March 31, 2003.
To view and print copies of the new Total and Permanent Disability Discharge Application, go to http://www.ifap.ed.gov/dpcletters/gen0212.html.
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New Lender Agreements Mailed
On December 18, 2002, agreements for the GHEAC 2003/2004 guaranty options (SSP as it is today, SSP+, Guaranty Only, and Blanket Certificate of Guaranty) were mailed to all current lenders and to lenders who have expressed an interest in a GHEAC guaranty. These agreements will be effective April 1, 2003, or the date the agreements are executed if after April 1.
Beginning mid-February, GHEAC will publish a bi-monthly list of lenders who have returned signed agreements. If there are any questions about the agreements, please contact Sarah Ergle at 770-724-9139 or email sarahe@mail.gsfc.state.ga.us.
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New Stafford MPN Forms Available
In the U.S. Department of Education's Dear Partner/Colleague Letter GEN-02-07 approved the new Stafford MPN form. On January 1, 2003, only the new MPN forms were to be provided to borrowers. Lenders may, however, process the prior version of the MPN if those forms are received after January 1, 2003.
If you need the following new Stafford MPN forms, GHEAC will provide these to you:
Master Promissory Note (MPN)

Master Promissory Note (MPN) Booklet
Snap out Master Promissory Note (MPN) with Booklet
Master Promissory Note (MPN) to use with ScholarNet or ELM
School Certification Form
Please visit our Web site, www.gsfc.org, or call Shontaeya Dixon at 770-724-9166 to order the new Stafford MPN materials.
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Multi-Year Use of the Stafford MPN by Schools
Effective March 1, 2003, schools that are not four-year, graduate or professional schools may begin using the multi-year feature of the Stafford MPN for FFELP loans certified on or after this date, regardless of the period covered by the loan. Borrowers will be able to receive loans for subsequent academic years based upon a previously signed MPN (even if that MPN was signed by the borrower prior to the effective date of this policy change).
The only institutions that are not allowed to use the multi-year feature of the MPN are foreign schools. An institution that is eligible to use the multi-year feature may decide if it wants all or some of its borrowers to continue to complete and sign a new MPN each year. The borrower also has the option of requesting a new MPN to sign each year.
If your school decides to use the multi-year feature, please make sure that your student borrowers are aware of this change to the loan application process.
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Electronic Cohort Default Rate (eCDR)
Starting in February, the Department of Education will transmit cohort default rate notification packages electronically. All schools, except foreign schools, will receive their 2001 draft rate figures electronically. Each school must sign up to receive their eCDR via the Student Aid Internet Gateway (SAIG). Enrollment forms for the eCDR process are available at www.sfawebenroll.ed.gov.

The National Student Loan Data System (NSLDS) will calculate draft and official fiscal year (FY) 2001 cohort default rates according to the following schedule:
Draft FY 2001 rates: Calculate - January 11, 2003 Release - February 17, 2003
Official FY 2001 rates: Calculate - August 2, 2003 Release - September 15, 2003
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GHEAC School/Lender Training Calendar
January - June 2003
February (TBA), "Cohort Default Rate Appeals," Atlanta
February 7, "Loans 101 - The Basics," Atlanta
February 19, "FASTLoans - The Process," Atlanta
March 4 & 5, GHEAC Conference ("GHEAC Mardi Gras: Parade of Service"), Athens
March 26, "Business Officers Training," Atlanta
April 30, "ScholarNet Training for Users," Atlanta
May 15, "Loans 102 - Beyond the Basics," Atlanta
May 28 - 30, "GASFAA Spring Conference," St. Simons
June 19, "Regulatory Update," Atlanta
Course Descriptions
FASTLoans -The Process FASTLoans is an online application process. The borrower completes the MPN online. FASTLoans offers e-signature as well as MPN printing options for a wet signature. Come learn about how your school can use this feature to streamline your loan process.
Cohort Default Rate Appeals Training

Want to learn how to appeal your school's cohort default rate? Come learn how to properly and effectively read your Loan Detail Report and how to appeal your draft and official rate.
Student Loans 101 -The Basics This one-day session is designed to cover the basics of the Federal Family Education Loan Program (FFELP). Designed for the new aid administrator, this workshop will provide program requirements and instruction on the origination of loans, determining eligibility, requesting and releasing funds, and much more.
Student Loans 102 - Beyond the Basics This one-day session offers instruction on program complexities that occur after certification of a Federal Family Education Loan (FFEL). The instructors will review the requirements for the delivery of student loan funds, determining and resolving over awards, and default issues.
ScholarNet User Training A refresher course for those who use ScholarNet for the processing of their student loan data. Training will include hands-on instruction on change transactions, pulling reports, subscribing to reports, reviewing loan data, batch processing, changing passwords, and adding and deleting users.
Business Office Training This session will offer instruction on how to handle FFELP proceeds, from requesting disbursement dates and receiving loan funds, to crediting those funds, processing cancellations, issuing refunds, and requesting re-issuance of disbursements. The focus for the morning session will be on cash management; and the afternoon will target refunds and cancellations.
Regulatory & Policy Updates This session will focus on the most recent regulatory and policy changes. It also will include regulatory updates and enhancements to the Single Source Partners (SSP) process.
You may register online for any of the training sessions listed above by logging on to the GSFC Web site at www.gsfc.org/Main/online_forms/workshop/index.cfm. For questions concerning registration, please contact Carole Jones by email at carole@mail.gsfc.state.ga.us or by phone at 770-724-9137.
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Peer Financial Counseling Program to Celebrate One-Year Anniversary

The Peer Financial Counseling Program (PFC) will celebrate its one-year anniversary on January 31. PFC has grown over the past year and has been implemented at six Georgia institutions with plans to implement the program at approximately eight new schools before March 1, 2003. This valuable program has served more than 600 students throughout Georgia this academic year.
The PFC program is a first for Georgia and offers students the opportunity to learn and 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: Students Loans; and 4) Becoming a Millionaire: Savings & Investments.
You can help us celebrate this milestone by agreeing to participate in the PFC program this year. To help you implement PFC at your school, GHEAC will provide FREE marketing materials, recruitment assistance, and student training.
For more information about 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. If your school is interested in participating in this program, please contact Marcia Coleman, Default Prevention Coordinator, GHEAC at 770-724-9174.
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SECTION 4 - STAFF PROFILE
Donna Hall
Donna Hall is the new Customer Service Manager for the Georgia Student Finance Authority (GSFA). The Customer Service Unit operates a telephone call center and an online loan counseling center for borrowers; it also administers deferments and forbearances.
Donna attended Reinhardt College, majoring in liberal arts, before transferring to Kennesaw State University and changing her major to business. After college she began a 24-year career with 1st National Bank of Atlanta (which became Wachovia).
During her years with the bank, she served in many capacities including bank card services, collections, account control, limit control, fraud protection, consumer services, and service quality control. For six years Donna managed the bank's customer service

unit, which included call center locations in three states - Georgia, Delaware, and Virginia. She eventually managed a staff of 400 customer service reps that provided 'round-the-clock services, 365 days a year.
Currently, Donna is enthusiastically immersing herself in her new career. "Right now I'm working to gain a solid understanding of the scope of the Commission's operation, especially the responsibilities of the customer service unit," she said. "I'm looking at how we're currently structured, what we're doing, and how we may be able to improve on that to provide better service to both our internal and external customers."
Although she enjoyed her years in the banking industry, Donna already is experiencing the added dimension that comes with working in financial aid. "We are involved with a very worthwhile process," Donna said. "This is something that satisfies that `do good' side of you. We're not just providing students with loans and services - which is important and necessary - we're also helping them understand the total picture. We show students how to use debt appropriately, in a way that will help them in the long run, so they'll not only be able to manage their student loan responsibly, they'll also be ready to go on and buy a home and start saving for their future. It sounds very idealistic, but that's the appeal."
A native of Atlanta, Donna enjoys gardening and crafts, especially painting. She and her husband have two children, a daughter in high school and a son in college.
Click here http://www.gsfc.org/main/publishing/newsletter/2003/gallery_0103.cfm to see a picture of Donna.
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SECTION 5 - LAST WORD
Happy New Year!