GSFC 411 e-newsletter [Oct. 2008]

Welcome to the Online GSFC411 Newsletter Archive
OCTOBER 2008 Newsletter
GAcollege411 Partner Update The latest news about the GAcollege411 website. View Update
GAcollege411 Launches Newly Redesigned Homepage Be sure to visit GAcollege411.org to see the newly updated homepage. The new and fresh design provides simplified navigation and improved search functions which make finding information easier then before. Read Full Article
GHEAC Announces Reduction in Cohort Default Rate GHEAC is pleased to announce that it has lowered its cohort default rate to 8.4 percent, down from 10.3 percent. Read Full Article
Need A GSFC Representative? Are you hosting a financial aid night and need someone to come out and talk about it? GSFC representatives are just a phone call or a click away from answering all those important questions. Read Full Article
Program Administration Information We are pleased to offer sample questions received that will help provide a better understanding of the regulations governing GSFC's financial aid programs. Read Full Article
First Semester Training Sessions After completing four webinars during the month of September, we want to share our calendar for the remainder of the semester and invite you to register for the academies, webinars, and classroom instructor-led courses. View Training Sessions
Default Prevention Awareness Month During the month of October, the Georgia Default Prevention Task Force would like to encourage you to hold events on your campus educating students on default prevention, financial literacy and debt management. Read Full Article
Compliance Corner Compliance Corner features policies and procedures and frequently asked questions regarding Compliance reviews of GSFC's scholarship and grant programs. Read Full Article
Georgia Student Finance Commission 2082 East Exchange Place Tucker, Georgia 30084 (770) 724-9000 or 1-800-505-GSFC (4732) FAX (770) 724-9089

GSFC Launches Newly Redesigned Homepage
We are pleased to announce that GAcollege411 has launched its newly updated homepage. The homepage offers a new and fresh design that provides a clearer structure, simplified navigation and improved search functions which make finding information easier than before. Be sure to visit the website, where our mission is to promote and increase access to education beyond high school for Georgians.
Georgia Student Finance Commission 2082 East Exchange Place Tucker, Georgia 30084 (770) 724-9000 or 1-800-505-GSFC (4732) FAX (770) 724-9089

Georgia Higher Education Assistance Corporation announces reduction
in cohort default rate
The U.S. Department of Education recently announced cohort default rates for fiscal year 2006. The Georgia Higher Education Assistance Corporation (GHEAC), the guaranty agency for the state of Georgia, is pleased to announce that it has lowered its cohort default rate to 8.4 percent, down from the previous year's of 10.3 percent.
"The decrease in our cohort default rate can be attributed to a variety of new tools and techniques GHEAC implemented to help its borrowers," said Timothy Connell, President of Georgia Higher Education Assistance Corporation. "We increased the total number of phone calls made to the borrowers; created specialized call campaigns, and worked more closely with the schools."
Cohort default rates are based upon national default statistics released annually by the U.S. Department of Education. The figure reflects the composite rate for both the Federal Family Education Loan Program (FFELP) and the Federal Direct Student Loan Program. The cohort default rate represents the number of student loan borrowers who enter repayment during the 12-month period ending September 30 and default by September 30 of the following year.
To prevent defaults, GHEAC suggests that students: 1) Maintain a current address with their lender, 2) Contact lenders if you are returning to school in order to take advantage of in-school deferments or the postponement of payments, and 3) If you are having financial difficulties, contact your lender for available options. Borrowers needing assistance in repaying their student loans can visit www.gsfc.org or call 800-505-GSFC.
Georgia Student Finance Commission 2082 East Exchange Place Tucker, Georgia 30084 (770) 724-9000 or 1-800-505-GSFC (4732) FAX (770) 724-9089

Need a GSFC Representative?
Are you hosting a financial aid night and need someone to come out and talk about it? Do you need to know more about the HOPE Scholarship, and other scholarships, grants, and loans offered by the state of Georgia? For years, GSFC representatives have come speak to groups of parents, students, and others regarding financial aid and services offered by the Georgia Student Finance Commission. If you would like to request a representative, just send an email to clientservices@gsfc.org and submit the type of event you plan to host, the topics to be covered, and your contact information (name, phone, email address). For additional information, please feel free to contact Client Services toll-free at (800) 505-GSFC, extension 9071.
Georgia Student Finance Commission 2082 East Exchange Place Tucker, Georgia 30084 (770) 724-9000 or 1-800-505-GSFC (4732) FAX (770) 724-9089

Program Administration Information
We are pleased to offer sample questions we recently received at ProgramAdmin@gsfc.org that will help provide a better understanding of the regulations governing GSFC's financial aid programs.
Q. A student at our USG Institution has lived in Georgia with her aunt and uncle for over a year and they provide her with financial support. They included the student as a dependent on their Georgia income tax return for 2007. The student's mother, who resides in Michigan, submitted a notarized statement claiming that she no longer provides financial support to her daughter. Based on this information, she was granted in-state tuition. However, does this student meet the residency requirement to be considered for the HOPE Scholarship?
A. According to the Board of Regents' tuition policy, "a dependent student shall be classified as `in-state' for tuition purposes if a U.S. court-appointed legal guardian has established and maintained domicile in the State of Georgia for at least 12 consecutive months immediately preceding the first day of classes for the term...and the U.S. court-appointed legal guardian can provide clear evidence of having established and maintained domicile in the State of Georgia for a period of at least 12 consecutive months immediately preceding the first day of classes for the term."
Although this student's mother has given the aunt and uncle the right to claim the student as their dependent, they are not U.S. court-appointed legal guardians. Based on the Regents' tuition policy, this student may not use her aunt and uncle's Georgia residency to determine her residency status. Even though your USG Institution has granted this student a Tuition Waiver, the HOPE Scholarship regulations do not allow for any waivers other than a Military Personnel out-of-state tuition waiver for first-tier students.
If this student can provide evidence that neither her mother nor her father claimed her on their most recent federal tax return, you may consider her an independent student for purposes of determining residency. This is not the same definition as an independent student for Title IV financial aid purposes. As an independent student, the burden rests with the student to submit sufficient documentation to validate her status as a Georgia resident.
Q. How does GSFC determine if a student who is home schooled is HOPE eligible at Tier 1? We know we determine if such a student is a Georgia resident, but are we to determine which classes are required to be included in the HOPE GPA calculation and whether the home study program is accredited?
A. It is GSFC's responsibility to calculate a home-schooled student's HOPE GPA and determine whether the student's home study program is accredited by one of the HOPE-approved accrediting organizations. If the home study program is accredited by a HOPE-approved accrediting agency, it would meet the definition of an "Eligible High School". A student who completes such a program, meets all other eligibility requirements, and has not attempted 30-semester or 45-quarter hours at a postsecondary institution, would enter the HOPE program at Tier 1.
GSFC does not receive transcripts electronically for students who have completed a home study program. Consequently, such students need to provide us with a written request for an evaluation along with their high school transcript(s).
Q. A freshman at our college graduated from a Georgia high school in May 2008 as a HOPE Scholar. His father, a resident of Virginia, claimed the student as a dependent on his federal income tax return. The father's information was used to complete the FAFSA. The student has stated that he lives in Georgia with his mother and he works in Georgia. Does this student meet the Georgia residency requirement for HOPE?
A. When determining a student's residency, one must first determine if the student is dependent or independent. Since this student was claimed on one of his parent's tax returns (and assuming he is under the age of 24), he is a dependent student and you will need to determine the parents' residency status.
A dependent student, who graduated from a Georgia high school, is considered to have met the Georgia residency requirement if either parent can document Georgia residency for 12 months prior to the first day of classes for which the HOPE Scholarship is being sought. (If a dependent student graduates from a high school located outside the State of Georgia, the student would meet the Georgia residency requirement if the parent who claimed the student as a dependent on his or her tax return was a Georgia resident for the requisite 12-month period.) Please note that if this student had graduated from high school on or after July 1, 2008, and was determined to not have been a resident of Georgia at the time of high school graduation, then one of his parents would need to have been a Georgia resident for 24 months prior to the first day of classes.
Georgia Student Finance Commission 2082 East Exchange Place Tucker, Georgia 30084 (770) 724-9000 or 1-800-505-GSFC (4732) FAX (770) 724-9089

First Semester Training Sessions

Georgia Student Finance Commission
Loans Scholarships Grants

The Learning Resources Department at GSFC just completed four webinars during the month of September. We want to share our calendar for the remainder of the semester and invite you to register for the academies, webinars, and classroom instructor-led courses available to you.

Academies

Advanced Financial Aid Officers Academy (AFAOA) Wednesday Thursday, November 5-6, 2008 Location: Georgia Student Finance Commission
Enrichment Financial Aid Officers Academy (EFAOA) Tuesday, November 18, 2008 Location: Columbus State University

Webinars

HOPE Grant for Public Colleges Thursday, November 13, 2008 9:30am 11:30am
HOPE Scholarship for Public Colleges Thursday, November 13, 2008 1:00pm 3:00pm
Service Cancelable Loans Thursday, November 20, 2008 9:30am 11:30am

Classroom Instructor-Led
Courses

Compliance 101 Tuesday, December 2, 2008 9:00am 12:00pm Location: Central Georgia Technical College, Macon, GA
HOPE for Private Colleges Tuesday, December 2, 2008 1:00pm 4:00pm Location: Central Georgia Technical College, Macon, GA

First Semester Training Sessions

How To Register

1. Go to www.GAcollege411.org
2. Click on Professional Learning
3. Click on the registration link under Course description.
4. Complete the registration form.
5. You will receive an email confirming your registration.

Be sure to check out our entire schedule for the 2008-2009 academic year on the Professional Learning link on GAcollege411.org and register early.
If you have questions or need assistance, please contact LearningResources@gsfc.org or Kathleen Caldwell at kathleenc@gsfc.org or by calling 770-233-4809.

October is Default Prevention Awareness Month
Governor Sonny Perdue has officially proclaimed October as Student Loan Default Prevention Awareness Month. With the 2006 National Student Loan Default Rate at 5.2% and Georgia's rate at 6.2%, it is obvious that we have our work cut out to educate Georgia's students on financial literacy and debt management strategies. Students tend to lack initiative to deter from delinquency of their student loan payments when faced with financial difficulties and life's emergencies. Information disseminated during Entrance and Exit Counseling Sessions are not always applied by the borrower during the repayment period. More programs developed on a student level, with unconventional boundaries are needed on college campuses. Developing, and conducting financial literacy and debt management programs several times during an academic period will at least ensure students become more familiar with a plan of action when faced with financial problems.
The Georgia Default Prevention Task Force would like to encourage you to hold events on your campus educating students on default prevention, financial literacy and debt management. In the past, campuses have held default prevention fairs, workshops and public awareness events. If you would like to share information about your events or best practices with the Task Force, please send an e-mail to: reginav@gsfc.org.
Georgia Student Finance Commission 2082 East Exchange Place Tucker, Georgia 30084 (770) 724-9000 or 1-800-505-GSFC (4732) FAX (770) 724-9089

Compliance Corner
Compliance Corner features policies and procedures and frequently asked questions regarding Compliance reviews of GSFC's scholarship and grant programs. This month's topic focuses on how institutions can an appeal on Compliance's Final Findings.
Q. If an institution does not agree with a Final Finding from a Compliance Review, how can they appeal the finding?
A. After Compliance has issued a Final Report indicating their acceptance, or non-acceptance, of a Finding(s), an institution may appeal the Finding as follows:
During the Post Final Report appeal process, any monetary liability associated with the Finding will be suspended. All monetary liabilities for Findings not under appeal must be remitted pursuant to the instructions in the Final Report cover letter.
Within fifteen (15) days after receiving the Final Report, the institution may appeal the Finding in writing to the Executive Vice President Regulatory Affairs & General Counsel (EVP). The EVP will review all previously submitted supporting documentation and respond in writing with her decision within ten (10) days after receiving the institution's appeal. If the EVP agrees with the institution's justification and related documentation, the Finding and/or associated liability will be removed from or indicated as satisfied on the Final Report. (The Finding may remain but the liability relieved if it was determined that the evidentiary documentation was not available at the time of the initial review.) If the Finding is upheld, the institution must immediately remit the associated liability to GSFC, or;
Within ten (10) days after receiving a decision upholding the Finding from the EVP, the institution may make a final appeal of the Finding to the President of GSFC. The President will review all previously submitted supporting documentation and respond with his decision within ten (10) days after receiving the institution's appeal. If the President agrees with the institution's justification and related documentation, the Finding and/or associated liability will be removed from or indicated as satisfied on the Final Report. (The Finding may remain but the liability relieved if it was determined that the evidentiary documentation was not available at the time of the initial review.) If the Finding is upheld, the institution must immediately remit the associated liability to GSFC and the appeal process will be ended.
For compliance inquiries regarding State Scholarship & Grant program reviews, please contact Georgia Student Finance Commission at 800-505-4732 or email us at ComplianceTeam@gsfc.org. You can also access previously published Compliance Corner questions at www.GAcollege411.org.
Georgia Student Finance Commission 2082 East Exchange Place Tucker, Georgia 30084 (770) 724-9000 or 1-800-505-GSFC (4732) FAX (770) 724-9089