GSFC 411 e-newsletter [May 2009]

Welcome to the Online GSFC411 Newsletter Archive
MAY 2009 Newsletter
GAcollege411 Partner Update The latest news about the GAcollege411 website. View Update
Cohort Default Rate Forum Overview The Georgia Default Prevention Task Force, in partnership with the U.S. Department of Education recently hosted a forum to discuss best practices, the Cohort Default Rate, and other regulatory changes. Read Full Article
Client Services Welcomes New Staff Georgia Student Finance Commission is pleased to welcome Carra Floyd as Regional Representative for the Western Territory. Read Full Article
Need a GSFC Representative? Do you need more information about the HOPE Scholarship and Grant Programs, or other scholarships, grants, and loans offered by the state of Georgia? Give Georgia Student Finance Commission a call and we will be happy to assist you! Read Full Article
Financial Aid Advisory Council (FAAC) to meet on May 8, 2009 The Financial Aid Advisory Council, a group representing Financial Aid Directors from across the state, will meet on Friday, May 8, 2009. 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

Cohort Default Rate Forum Overview
With the recent proposed changes in federal and state legislative regulations, it is essential to be equipped with information to face the hurdles that lie ahead within the financial aid industry. This issue is extremely important because schools that already have a higher-than-average risk of loan default, coupled with the current weak economy and the change in the Cohort Default Rate (CDR) calculation could result in a significant increase in the college's CDR for FY 08 FY 10. In an effort to prepare financial aid administrators with the necessary tools to address these issues, the Georgia Default Prevention Task Force, in partnership with the U.S. Department of Education, conducted a Cohort Default Rate Forum on April 30, 2009 at Central Georgia Technical College in Macon.
The forum was designed to begin the dialogue on best practices; the CDR period going from two-year to a three-year timeframe, along with other initiatives from the Higher Education Opportunity Act (HEOA); and other related regulatory changes. Thirty-seven institutions (public, private, two-year, four-year and proprietary) participating in the FFEL and Direct Loan Program were invited. The open discussion allowed many to voice concerns regarding the sanctions being imposed by the federal government for current CDR rates 25% and above, but no real method to address institutions authority to reduce unnecessary student loan borrowing when the cost of education is covered by scholarships and grants.
Students are incurring debt way beyond the typical average for a two-year degree, and representatives are concerned about losing their Title IV eligibility before policies address these issues. As a result, attendees from each sector developed and enhanced a "tip sheet" that will be distributed by the Georgia Default Prevention Task Force in the coming weeks. The mission of the Task Force is to create an active presence in Georgia by reducing student loan defaults through developing and implementing innovation strategies and products. In order to meet this challenge, a collaborative effort from institutions will ensure they maintain eligibility to participate in the Title IV program.
For more information about the Georgia Default Prevention Task Force, feel free to contact Regina Venson at reginav@gsfc.org or by calling (770) 724-9083.
Georgia Student Finance Commission 2082 East Exchange Place Tucker, Georgia 30084 (770) 724-9000 or 1-800-505-GSFC (4732) FAX (770) 724-9089

Client Services welcomes New Staff
Carra Floyd joined the Client Services department in April as a Regional Representative in the Western Territory. She holds a bachelor's degree in Business Administration with a major in Management from Columbus State University. Most recently, Floyd served as the associate director of Financial Planning at Mercer University, and prior to that, associate director of Financial Aid at Wesleyan College, both in Macon. Through her experience, she brings additional private college real world expertise, and plans to continue helping students and their families pursue educational opportunities.
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?
Do you need more information on the HOPE Scholarship and Grant Programs, or other scholarships, grants, and loans offered by the state of Georgia? For years, GSFC representatives have spoken to groups of parents, students, and others regarding financial aid and services offered by the Georgia Student Finance Commission. This is a FREE service, so 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, and 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

Financial Aid Advisory Council (FAAC) to meet on May 8, 2009
The Financial Aid Advisory Council, a group representing Financial Aid Directors from across the state, will meet on Friday, May 8, 2009. Discussion topics include HOPE Triggers, HOPE Applications and FAFSA, the ACCEL/ Dual Enrollment Program, Program Regulatory changes, legislative updates, GAcollege411 and more. For additional information about the Financial Aid Advisory Council or if you would like to attend, please contact Sarah Baumhoff, Vice President of Client Services and Marketing at sarahb@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
Residency Training for Private and Proprietary Schools
Generally, private and proprietary schools do not conduct residency verification except in connection with the award of Georgia scholarship and grant programs. Specifically, both the HOPE Private Scholarship and the Georgia Tuition Equalization Grant (GTEG) require students that receive the awards be residents of the State of Georgia. By law, the residency rules and guidelines for private and proprietary schools are based on GSFC's residency policy. We have therefore developed a course specifically for private and proprietary institutions that will help them better understand and interpret rules and guidelines surrounding Georgia residency.
This course, developed by GSFC's Learning Resource Department, is designed to provide private and proprietary institutions guidance on the establishment of domicile for determining a student's eligibility in meeting the Georgia residency requirements, for purposes of seeking financial assistance for State Scholarship and Grant Programs. The training will cover the following subjects concerning residency:
I. Common documentation reviewed during a State Compliance Review for Residency a. Citizenship documents b. Prior college academic transcripts
II. Conflicting information on various applications for federal and state aid programs a. Non-Georgia information included on the FAFSA and any other documents or applications.
III. Graduation from a non-Georgia high school IV. Review of Georgia Residency Requirements for State Programs
a. Establishing Domicile b. Dependency Status
i. Dependent student ii. Independent student c. Twelve month versus twenty-four month Residency requirement for HOPE Scholarship d. Retaining Residency V. Georgia Residency Findings for Private and Proprietary Institutions a. Scenarios b. Case studies
The first scheduled date for this training is May 28, 2009, from 1:30 3:30 p.m. All private and proprietary schools are encouraged to attend.
To register, go to www.GAcollege411.org and click on "Professional Learning" and then click on "Directions" which takes you to Gotowebinar. After completing the information you will receive a confirmation email with your personal link to the webinar. Please keep this confirmation email in case you need to cancel your registration.
If you have any questions, please do not hesitate to contact Richard Hawkshead at Richard@gsfc.org or 770-724-9012.
Georgia Student Finance Commission 2082 East Exchange Place Tucker, Georgia 30084 (770) 724-9000 or 1-800-505-GSFC (4732) FAX (770) 724-9089