Financial aidvantages [Vol. 6, no. 2 (Feb. 2003)]

Financial AidVantages
The official newsletter of the Georgia Student Finance Commission
Volume 6, No. 2, February 2003
WELCOME to the February 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
GSFC's New Executive Director Governor Perdue Voices Support for Learning GHEAC Waives Insurance Fee, Saves Students $2.4 Million
Section 2 - Scholarships and Grants News HOPE in Tennessee
Section 3 - Georgia Student Finance Authority News The Georgia First Education Loan Georgia Financial Aid Awareness Month GSFA's Quality Assurance Awards Recipients
Section 4 - GHEAC News for schools, lenders, and servicers

GHEAC On the Move
GHEAC Annual Conference
GHEAC Forges Ahead with New Guarantor Options
New Integrated Common Manual on the Web
Total and Permanent Disability Discharge Requests
GHEAC Training - FASTLoans
2003 NSLDS Reporting Schedule
Section 5 - Staff Profile Carly Lewis, GHEAC School Relations Specialist
Section 6 - Last Word Chat Night Is Coming!
Section 1 - Lead Stories
GSFC's New Executive Director Shelley C. Nickel is the new executive director of the Georgia Student Finance Commission (GSFC). She was appointed by the GSFC board on February 4 and was welcomed by employees two days later as she began her first full day in the new position. Governor Sonny Perdue applauded the GSFC board's decision, saying, "Shelley Nickel is committed to the people of Georgia and our students who seek to further their education. I look forward to working with her to assist every Georgian in reaching their educational goals." Ms. Nickel said, "I am proud to become a part of Georgia's student financial aid community. I intend to

become a valuable team player as we face the challenges that lie ahead."
Ms. Nickel previously served as special assistant and senior policy advisor to the chancellor of the Board of Regents. She was involved in the Regent's strategic planning process, managed University System of Georgia presidential searches, and represented the chancellor on statewide advisory panels and work groups. Prior to that position, she served as Budget Director for the Board of Regents, administering the USG's budget of $1.7 billion. From November of 1985 until December of 1996, Nickel held several policy analyst positions in the Governor's Office of Planning and Budget (OPB), both in education and economic development.
She earned a bachelor of science degree in Community Development in 1978 and a master's of Public Administration in 1982, both from Penn State University.
Ms. Nickel resides in Roswell with her husband, Martin, and their three children: Daniel Heath, 17, Katey Heath, 14, and Matthew Nickel, 17. They are active members of Roswell Presbyterian Church.
Return to Table of Contents
Governor Perdue Voices Support for Learning On Monday, January 27, Governor Perdue's State of the State Address was televised live on stations across Georgia. The following excerpts demonstrate the Governor's commitment to education in general and the HOPE Scholarship program in particular.
"Knowledge is the new economic fuel," the Governor said, "not physical labor. It is the essential ingredient for success in this information age. Providing all our citizens with the knowledge, skills and training they need to compete in the information economy is the best economic development plan we can have. Education and workforce training will prepare our people for the jobs."
"The foundation of our education system is K-12," the Governor also stated. "And that foundation does have some cracks we need to mend. We have strong bookends in place, bracketing the K-12 system. Two solid pillars of our commitment to education are two of the nation's most innovative education programs: The Pre-kindergarten program and the HOPE scholarship. This program not only makes a college education affordable for every dedicated student, it has helped us keep more of our brightest young people in Georgia and I've already spoken to how important that is for our state's future.
"I will protect these programs. I have already proposed that in the future, Georgia Lottery funds be reserved for these two programs alone. These are two great Georgia success stories that lay the foundation for many successes to come."

Return to Table of Contents
GHEAC Waives Insurance Fee, Saves Students $2.4 Million The Georgia Higher Education Assistance Corporation (GHEAC) is again waiving the 1 percent insurance premium fee on all undergraduate and graduate student loans. With individual student loans averaging $3,700, the insurance premium waiver means students will save an average of $37 annually in up-front loan costs. The action will save Georgia's graduates, undergraduates, and parents a total of approximately $2.4 million on their student loans during the 2003-2004 academic year.
GHEAC is Georgia's designated guarantor of student loans made under the Federal Family Education Loan Program (FFELP) and offers a number of programs to help students avoid loan default in the loan repayment process. Since 1965, GHEAC has guaranteed more than $3.6 billion in student loans funded by private capital and has an outstanding loan portfolio of approximately $1.5 billion.
GHEAC is a division of the Georgia Student Finance Commission, and the Commission's board approved the waiver at its meeting February 4. Shelley Nickel, the Commission's executive director, said, "Our board wants to keep the cost of borrowing money for higher education as low as possible."
More information about student loans is available by calling 1-800-776-6878. Information about other programs offered by the Georgia Student Finance Commission, including the HOPE Scholarship Program, is available by calling (770) 724-9030 or 1800-546-HOPE.
Return to Table of Contents
Section 2 - Scholarships and Grants Division
HOPE in Tennessee In the November election, Tennessee voters approved a referendum to establish a state lottery and use the proceeds to fund a "HOPE-like" scholarship program. The Tennessee General Assembly must next write and approve legislation for this purpose, and Tennessee officials have contacted the Georgia Student Finance Commission (GSFC) to learn more about Georgia's HOPE Scholarship Program.
On December 11, 2002, Dr. Richard Rhoda, executive director of the Tennessee Higher Education Commission, and two of his staff visited GSFC headquarters and spoke with GSFC Executive Director Glenn Newsome, Scholarship and Grants (S&G) Division Director Bill Flook, S&G Assistant Director Charlene McGrath, and GSFC's legislative liaison, Steven Neff. During the visit the Tennessee officials gained detailed information

on the day-to-day administration of the HOPE program.
Then on December 17, a delegation of Tennessee legislators visited the Georgia Lottery office to receive a comprehensive overview of the Georgia Lottery for Education. Steven Neff and Bill Flook were invited to provide a presentation on Georgia's HOPE Scholarship Program.
In addition, a Knoxville TV news team (WATE6) came to the GSFC office on January 22 for a special in-depth story on HOPE.
Since Georgia's HOPE Scholarship Program was initiated in 1993, 11 other states have established similar merit-based programs. It appears that Tennessee will soon be added to that list. All Georgians can be proud that the HOPE program serves as a successful model for other states.
Return to Table of Contents
Section 3 - Georgia Student Finance Authority
The Georgia First Education Loan Don't forget. . .
The Georgia First Education Loan Program Offers the Alternative Education Financing Your Students Need!
If you have students in need of additional education financing, the Georgia First Education Loan program can help!
Since its introduction by the Georgia Student Finance Authority in October 2002, the program has received almost 1,000 calls from students and their family members inquiring about the new loan program. Over $388,000 in alternative loans has already been provided to students in need of additional funding to cover their education-related expenses, including tuition, room and board, books, fees, and even a personal computer.
The Georgia First Education Loan program offers credit-based loans for students and their families, and can be used for undergraduate and graduate studies, as well as technical training and career advancement courses. The program makes it possible for students to receive the funds they need, and completes the comprehensive financial aid package offered through GSFA.
The program offers:

Instant credit decisions over the phone or online
Competitive interest rates
24-hour online account access
Rate-reduction rewards
Affordable monthly payments and deferment options
With interest in the program growing daily, the Georgia Student Finance Authority is excited about the opportunities that the new program has created for students, and hopes that it will help make their dreams of a higher education a reality.
Your students and their families can call the Georgia First Education Loan program today at 1-800-416-5177, or visit www.gsfc.org/GSFA/SCL/dsp_GAFirst.cfm for additional information and to apply.
Return to Table of Contents
Financial Aid Awareness Month February is Financial Aid Awareness Month in Georgia. During this month many schools conduct fairs and other activities designed to promote greater awareness of the many financial aid options available to students. Typically, the activities give students an opportunity to meet with school representatives, lenders, and other financial aid professionals to decide which program best meets their needs.
Much planning goes into these events. Some two-year schools, such as Abraham Baldwin Agricultural College, coordinate PROBE Fairs with Financial Aid Awareness Month activities. At PROBE Fairs, students can meet with recruiters and other representatives from four-year institutions. Lenders are also on hand to talk to students about the loan services they offer.
Georgia Student Finance Authority representatives Ruth Rich and Bill Myers were able to participate in many of these events. They spent much of February traveling across the state of Georgia attending fairs and talking to students about the many different financial aid programs that Georgia offers. "This is an exciting time of the year," said Bill. "We are out there meeting the students where they are. It's a wonderful opportunity to be of assistance to the students and schools."
Return to Table of Contents

GSFA's Quality Assurance Awards Recipients In January, three individuals received the Georgia Student Finance Authority's (GSFA) Quality Assurance Awards. The awards, presented at GSFA's quarterly staff meetings, recognize excellence in performance by Authority staffers. At the winter meeting, Quality Assurance Awards were presented to Stacey Bradford, Customer Service; Sharon Harris, Skip Tracing; and Brande Jones, Collections. Brande is the program's first repeat winner, having received the award at the fall meeting as well.
The Authority's Quality Assurance Department performs Quality Assurance (Q/A) Audits of the staff members for GSFA departments. Currently, the audits are being performed for the Customer Service, Collections, Cures, and Skip Tracing departments. New departments will be added each month; eventually, all of GSFA's departments will be undergoing continuous Q/A audits.
At the end of each quarter, the Quality Assurance Department reviews Q/A Audit scores to determine the individual with the highest average score for each department. The individual from each department with the highest score is presented with a framed certificate and a small gift of appreciation from GSFA. In order to be eligible for the individual award, the employee must achieve a minimum quality score of 80%.
In addition to the individual awards, a "traveling" Quality Assurance Award, "The Director's Cup," is presented to the department which has achieved the highest quality standards for the quarter. At the January meeting, the Cures Department was presented with the departmental award and temporary possession of the Director's Cup.
Click here http://www.gsfc.org/main/publishing/newsletter/2003/gallery_0203b.cfm to see pictures of Stacey, Sharon, Brande, and Cures Department manager Lyn BroomBurton with GSFA Director Robert Brooks.
Return to Table of Contents
Section 4 - 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:

Waived guarantee fees for borrowers for 2003-2004 academic year
Issued Year 2003 GHEAC School-Lender Training Calendar for January, 2003 through June, 2003
Held first meeting of the GHEAC Options Implementation Task Force 2/5/03 (related article below)
Issued GHEAC's NSLDS Reporting Schedule for Lenders/Servicers (related announcement below)
Implemented two Default Aversion initiatives - using borrower email addresses for skip tracing purposes and notifying borrowers when default claims have been filed
Enhanced the printing of Borrower Statement letters for the Graduating Seniors Report
Participated in Financial Aid Awareness activities on campuses throughout the state
Coming Soon: Implementation of enhanced guarantor system to accept the use of the Multi-year serial feature of the MPN for 2-year schools
PLUS MPN implementation scheduled for 7/1/03
Rapid Batch Change Transaction processing with ELM
Becoming a Meteor Data Provider
Ability to automate the reissue of partial refunds
Return to Table of Contents
GHEAC Annual Conference The 2003 GHEAC Annual Conference, "GHEAC Mardi Gras: Parade of Service," is fast approaching, and you don't want to miss out! This event promises to provide valuable information and lots of fun! The conference will be held March 4 and 5 at the Georgia Center for Continuing Education in Athens. It is not too late to register! To register

online, click here http://www.gsfc.org/gheac/dsp_conf_reg.cfm.
Be sure to check our Web site for recent conference and agenda updates.
We can't wait to see you at the parade!
Return to Table of Contents
GHEAC Forges Ahead with New Guarantor Options On February 5, 2003, GHEAC held the first Guarantor Options Implementation Task Force meeting. Since late summer 2002, GHEAC has been preparing for the new options, so the focus of this meeting was to give everyone a progress report and discuss any issues that resulted from other meetings.
Beginning April 1, 2003, the options GHEAC will offer, in addition to SSP, will be Guaranty Only (Lender Flow),
Blanket Certificate of Guarantee (BCG), and
for SSP schools, the option of receiving disbursements via the National Disbursement Network (NDN).
Cindy Abbott and Tracy Ireland reported that progress is being made on all three projects. The next meeting of the Guarantor Options Task Force is scheduled for April 1, 2003.
Although the task force is under way, GHEAC still needs you and your expertise as we plan for the implementation of the new options. We are pleased to be able to offer 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 Abbot at 800-600-3453, ext. 9133 or via email at cindya@mail.gsfc.state.ga.us.
Return to Table of Contents
New Integrated Common Manual on the Web 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 December 19, 2002, and technical edits approved through December.

Return to Table of Contents
Total and Permanent Disability Discharge Requests On June 14, 2002, GHEAC issued GHEAC0602-090 relative to the new policies and procedures for filing Total and Permanent Disability Discharge requests on or after July 1, 2002. We also provided a link to the applicable U.S. Department of Education (ED) Dear Colleague Letter (DCL) and industry Q & A's developed by NCHELP.
Since the July 1, 2002, date has long passed, GHEAC no longer requires lenders to write the lender's date of determination (DOD) on the disability application, unless it is an application where the determination was made prior to July 1, 2002. At this time, such an occurrence should be rare. This temporary practice that facilitated processing during the initial period was never to be a permanent requirement.
If you would like to review the referenced publications, please visit: Q & A's: http://www.gsfc.org/Main/publishing/pdf/common/06-02-096-QA.pdf
DCL: http://www.ifap.ed.gov/dpcletters/GEN0203.html
Return to Table of Contents
GHEAC Training - FASTLoans Please join us for the "FASTLoans - The Process" workshop which will be held at the Georgia Student Finance Commission on February 19, 2003, from 10 a.m. until 12:30 p.m. in the Executive Conference Room. FASTLoans is GHEAC's Web-based instant loan guaranty and MPN with e-signature product that keeps schools in control of the loan application product. Come learn how your school can use this feature to streamline your loan process. You may register through our Web site at http://www.gsfc.org/GHEAC/workshop/index.cfm.
Return to Table of Contents
2003 NSLDS Reporting Schedule In order for a lender or servicer's Lender Manifest data to be included in GHEAC's monthly extract to NSLDS, the lender or servicer's Lender Manifest file must be received for processing by GHEAC before the GHEAC extract date. GHEAC bases its extract dates on the scheduled load date established by NSLDS and published on the NSLDS Web site, for the upcoming year.
GHEAC published the Lender Update regarding this reporting schedule on the Web site in January 2003. The update can be accessed by visiting www.gsfc.org/Main/publishing/templates/gheac_template.cfm?doc_id=274.

Reporting up-to-date loan data to NSLDS is essential to our students and schools for determining eligibility for receipt of Title IV funds. Therefore, lenders are urged to observe this schedule in order to ensure timely submission of data to NSLDS.
If you have any questions regarding NSLDS reporting, please contact Teena Redmond at (770) 724-9167 or teena@mail.gsfc.state.ga.us.
Return to Table of Contents
Section 5 - Staff Profile
Carlessia (Carly) Lewis School Relations Specialist for GHEAC' SSP Department
Carly is originally from Memphis, Tennessee, and attended the State Technical Institute of Technology there before moving to Chicago. In Chicago she attended Truman College, majoring in Computer Information Systems. At that time, she also began her career in financial aid, working with the Illinois Student Assistance Commission (ISAC) from 1995 until 2001. While at ISAC, Carly served in a number of capacities, including loan officer, supervisor of customer service, and trainer for the compliance and training department.
In 2001, Carly returned briefly to Memphis, where she was married before moving to the Atlanta area late that year. In early 2002, she began her work at GHEAC as a contractor, working on special projects for the Claims and Collections Department. She joined the agency fulltime in August 2002, as a collections specialist, working as a liaison to collection agencies and the U.S. Department of Education. In January, Carly moved over to the SSP department as a school relations specialist. She looks forward to broadening her financial aid experience in her new position.
"Before joining the agency, I'd had experience with all other aspects of student loans," Carly said. "I worked in the middle, providing customer service after the loan had been originated, and I worked with defaults, at the end of the process. This will be a good opportunity for me to work with the origination process. I'm looking forward to that, and I'm also looking forward to helping the students and schools.
"The number one thing is, I get to make a contribution to society and a contribution toward the future."

Carly has five step-children. She enjoys reading and looks forward to taking advantage of Atlanta's many cultural offerings. She recently toured the Carter Center, and the High Museum and Botanical Gardens are next on her list.
Carly looks forward to being introduced to everyone at the GHEAC Annual Conference in Athens, in March.
Return to Table of Contents
Section 6 - Last Word
Chat Night Is Coming! Reminder: 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).
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.