In this issue:
General News | Featured Tool | College Planning | Who's Who | Financial Aid
Scholarships & Other Aid Opportunities | Financial Literacy | Student Loan Management | Calendar
General News
Access360 Conference: Call for Sessions
We're thrilled to announce Access360 will be held Sept. 23 and 24 at the Embassy Suites in Norman! This new location provides on-site lodging for those who wish to attend the conference both days and offers a number of quality services and amenities. Visit our new website, Access360Conference.org for conference details, including information about the hotel and speakers.
While our conference has a new name and a new home, our commitment to provide the highest quality content hasn't changed. We're already working to bring you exciting keynote speakers and experts in financial aid, financial literacy and college access. To ensure we address the specific topics that interest you most and utilize your expertise as a service provider, we need your help!
We're seeking proposals for informative, relevant sessions presented by dynamic speakers. We're looking for presenters who can share knowledge, experience and best practices related to our shared goal of facilitating student success from the cradle to college and beyond. Here are some of the topics we hope to see:
- Financial aid
- Successful default management strategies
- Engaging parents
- Working with underserved populations
- Resources for mentoring organizations
- Additional topics related to college access, student retention, financial literacy and student success
If you'd like to submit a session proposal, please complete and email this form to the Access360 Session Development Chair, Scott DeBoard, at sdeboard@ocap.org by 5 p.m., July 17. The Access360 Conference Committee will review all proposals and identify sessions that will appeal to the greatest number of our partners or that provide unique expertise. If your proposal is selected, you will be notified by Aug. 1.
For more information, contact Scott DeBoard at 405.234.4233.
Direct Subsidized Loan Interest Rates Return to 6.8 Percent
As of July 1, Direct Subsidized Loan interest rates returned to 6.8 percent. In 2007, Congress passed the College Cost Reduction and Access Act, which gradually reduced the subsidized rate from 6.8 percent to 3.4 percent over a period of four years and expired June 30, 2012. In 2012, Congress extended the 3.4 percent rate for an additional year, which expired June 30, 2013. Accordingly, the interest rate on Direct Subsidized Loans disbursed on or after July 1, 2013 returned to 6.8 percent.
More information about additional July 1 student loan and subsidy changes can be found in the Financial Aid section. OCAP will continue to keep you informed of any changes to pending interest rate legislation, and visit IFAP.ed.gov for the most current updates.
Featured Tool
Featured Tool: OKMM's Interactive Budget Calculator
Oklahoma Money Matters (OKMM), OCAP's financial education initiative, recently released a new interactive budgeting tool to help consumers easily build a detailed monthly spending plan.
This user-friendly tool automatically identifies 10 of the most common spending categories and includes numerous subcategories. Visitors can easily rename, add and delete categories to create a customized budget that truly fits their lifestyle and budget needs. As the user adds expenses, the calculator automatically subtracts the projected spending amounts from the total income entered, allowing the user to quickly see if adjustments are needed. When finished, the user can export the personalized budget to a Microsoft Excel file, which can be saved, referenced and printed as often as necessary.
Creating and adhering to a realistic budget is the foundation for financial success. Visit OklahomaMoneyMatters.org for more information and share our Budgeting Calculator with the audiences you serve to help them on their way to financial success.
Who's Who
Do you know Linette McMurtrey?
Meet Linette, Scholarships Program Coordinator for the Oklahoma State Regents for Higher Education (OSRHE).
Tell us about your new position and your background in financial aid.
I began at OSRHE as the Scholarship Programs Coordinator in April. I'm responsible for administering several scholarship programs that are funded through OSRHE, providing support for the administration of the Oklahoma's Promise Program and serving as the Recording Secretary for the Oklahoma College Savings Plan.
Before OSRHE, I was employed at Oklahoma City Community College (OCCC) in the Financial Aid Office as the Assistant Director for Processing and Reporting. I was responsible for the reporting and reconciling of over $50 million in federal and state financial aid. Trying to understand, communicate and implement federal regulations was challenging, but definitely rewarding. I enjoyed working under Dr. Sechrist's leadership and working with faculty and staff members that were invested in the success of at-risk, or at-promise, students.
What do you like most about your new position, and what are your goals?
Working in higher education and administering scholarship programs that give students the opportunity to pursue higher education is very fulfilling. I enjoy working with knowledgeable individuals who believe in the importance of higher education.
My short-term goal is to become proficient with my responsibilities and continue to learn so I can contribute as much as possible. I would like to complete a Ph.D. program in the future and remain in higher education.
What scholarship programs do you coordinate and how can schools and families find out more about them?
I'm responsible for administering the Academic Scholars Program, Regional University Baccalaureate Program, Future Teachers Scholarship, Chiropractic Education Assistance Scholarship, George and Donna Nigh Scholarship and a few others.
Schools and families can find out more about these programs by going to OKcollegestart.org or by contacting our office at 405.225.9131.
College Planning
Stay Updated with UCanGo2 on Facebook
We know you have a lot on your plate. With numerous students to counsel, schedules to plan, tests to conduct, activities to supervise and meetings to attend, you may barely have time to check your email. Finding time to collect up-to-date scholarship, financial aid and college planning information can be a challenge.
Rest assured that UCanGo2, OCAP's comprehensive college access program, can make your job easier. With just a quick click of a button, you can begin to receive pertinent college access updates on your Facebook newsfeed. Simply 'like' UCanGo2 on Facebook ( Facebook.com/UCanGo2 ) and voilà – the information you need to help students plan, prepare and pay for college will be automatically delivered to you on a regular basis.
You'll receive relevant information about a wide variety of helpful topics, including:
- Scholarship and grant information, deadlines and application tips
- College planning tools
- Resources for exploring career goals
- ACT, SAT and other testing updates and reminders
- College planning event and counselor training announcements
- FAFSA updates
- Important information about other key programs, like Oklahoma's Promise
- And much more!
Let UCanGo2 help you stay current, relevant and well-informed. Visit the UCanGo2 page on Facebook and 'like' us today! We also encourage you to download and display our Facebook flyer to inform your students and their parents about this great college planning resource.
Financial Aid
July 1, 2013 Student Loan Changes
Several recent statutory and regulatory changes impacting student loans took effect July 1, 2013.
Direct Subsidized Loan Interest Rate
Interest rates for subsidized Direct Loans returned to 6.8 percent for loans first disbursed on or after July 1, 2013. Click here for more information.
Direct Loan Origination Fees
Due to Sequestration, origination fees for Direct Loans first disbursed on or after July 1, 2013 increased as follows:
- Stafford — from 1 percent to 1.051 percent.
- PLUS — from 4 percent to 4.204 percent.
Schools may now report loans with the increased origination fees to the Common Origination and Disbursement (COD) System. Second and subsequent disbursements made after July 1 on loans whose first disbursement was made prior to July 1 must be made and reported to COD using the original rates of 1 percent and 4 percent.
New Maximum Eligibility Period for Direct Subsidized Stafford Loans
Eligibility for the interest subsidy on Direct Loans is now limited to a period of no more than 150 percent of the published length of a student's current program of study for new borrowers on or after July 1, 2013. More information is provided in our separate article dedicated to this topic.
Total and Permanent Disability Discharge
Final regulations published Nov. 1, 2012 simplified the total and permanent disability (TPD) discharge process for applications received on or after July 1, 2013. All TPD applications will now be filed directly with the U.S. Department of Education (ED), and discharge may now be granted based on a disability determination by the Social Security Administration with a five-to-seven year review period. ED issued electronic announcements on May 17, May 24, June 12, June 20 and July 3 providing preliminary information regarding changes to the Direct Loan Program, FFEL Program, Perkins Loan Program and Teacher Education and Access to College and Higher Education (TEACH) Grant program, and to the discharge process flow.
Effective July 1, 2013, loan holders must notify guaranty agencies when they receive information from ED that a total and permanent disability discharge application has been received. Loan holders may notify the Oklahoma College Assistance Program by sending a secure email to statuschanges@ocap.org. This notification is in addition to the requirement for loan holders for canceling a Default Aversion Assistance Request or for recalling claims for these borrowers.
Maximum Eligibility Period for Direct Subsidized Loans
As a part of the Moving Ahead for Progress in the 21st Century Act (MAP 21) enacted July 6, 2012, Congress amended the Higher Education Act to limit the length of time a student may receive interest benefits on direct subsidized loans, if the student fails to complete his program of study, to 150 percent of the published length of the current program. Interim final rules implementing P.L. 112-141 were published in the May 16 Federal Register and provide that:
- The limitation applies to first time borrowers who have no outstanding balance on a Direct Loan or a FFEL loan either as of July 1, 2013 or on the date the borrower obtains a Direct Loan after July 1, 2013.
- Only periods of enrollment for which the student receives a subsidized loan are counted against the maximum eligibility period.
- The "subsidized usage period" is calculated by dividing the length of the loan period by the length of the academic year and rounding the result down to the nearest quarter.
- For periods in which the student is enrolled less than full time and receives a subsidized loan, the usage is reduced proportionally.
- If the student receives his full annual subsidized loan eligibility for an enrollment period that is less than an academic year, that loan period counts as a full academic year in usage, regardless of enrollment status.
- A student who changes programs becomes subject to the 150 percent maximum eligibility period of his new program, but subsidized loans received in earlier programs continue to count against his maximum.
- Once the maximum eligibility period has been used, if the student has not completed his program, he may borrow only unsubsidized loans and will become responsible for interest accruing on previously-made subsidized loans (unless he immediately enrolls in a longer program, thereby increasing his maximum eligibility period).
- Lost interest subsidy on a loan can't be regained. If the student later enrolls in a longer program of study, he may receive new subsidized loans (if otherwise eligible), but the interest subsidy is not restored on the older loans.
- Schools must correctly report to the Common Origination and Disbursement (COD) System the academic year and loan period dates for all loans with a first disbursement date on or after July 1, 2013.
What's New on IFAP?
Dear Colleague Letters (DCLs)
E-nnouncements
General
- July 3 - TPD Discharge Information - Implementation of Total and Permanent Disability Discharge Changes on July 1, 2013
- June 20 - TPD Discharge Information - Reminder of July 1, 2013 Effective Date for Changes to TPD Discharge Regulations
- June 12 - TPD Discharge Information - Guaranty Agency Assignment Procedures Effective July 1, 2013
- June 12 - TPD Discharge Information - Perkins Assignment Procedures Effective July 1, 2013
- June 4 - 13-14 ISIR Analysis Tool Web Application Now Available
- June 4 - Vol 5 - Withdrawals and the Return of Title IV Funds [13-14 FSA Handbook]
Loans
Common Manual Update
The latest version of the Integrated Common Manual is available on the Common Manual website. (external class) As always, if you have questions about the manual, contact our Compliance department at 405.234.4432, 800.247.0420 (toll free) or pct@ocap.org.
Scholarships and Other Aid Opportunities
PBdorm's Dream Dorm Scholarship will award $1,000, including $500 cash and a $500 Pottery Barn Gift Certificate, to three qualifying students. Applicants must be college-bound high school students or current college students and are required to submit an essay. The deadline to apply is July 31. More information is available at Zinch.com/pbdorm-rules.
Financial Literacy
Ask the Expert: How Do I 'Disaster-proof' My Finances?
If a tornado threatened your home, would you have time to gather all your personal and vital documents while taking cover? If your house was on fire, would you know the value of everything damaged to report to your insurance company? Of course it's important to know how to physically protect yourself and your loved ones from disasters, and it's important to protect yourself financially, too. Follow these tips to ensure your documents are safe from the storm, making it easier for you to get back on your feet if disaster strikes.
- Collect important financial and personal papers and put original documents in plastic covers.
- Identify a single location, like a fire-proof box or safe-deposit box, to store these crucial papers.
- Make at least two copies of the box key: one for your home and one for another person, like a trusted friend or family member.
- Create certified copies of government-issued documents and store them with trusted family or friends.
- Stash some cash with your bank statements in case you can't access your account. Depending on the level of damage, computer networks and electricity may be down, so having cash on hand is beneficial.
In addition to those steps, consider completing a home inventory that documents all your possessions. This information will help you determine whether you have enough insurance coverage. In the event of a disaster, it'll also allow you to file claims quickly and convincingly.
- Document everything. Prepare a description of everything you own, from furniture and clothing to TVs and other electronics. List the purchase price (if you still have the receipt, attach a copy), approximate date and venue of purchase and warranty information, where applicable. Include any copies of assessments for jewelry, artwork or other valuables that have been appraised.
- Choose your method of documentation. You can create your record in any of three ways: in writing, in digital pictures or on your computer. Once you've completed the inventory, keep a copy in a safe-deposit box and a copy with a trusted relative or friend who lives far enough away to be out of the range of disaster in your area.
Also, consider insurance coverage for specific weather disasters. If you rent, look into purchasing renter's insurance. If you're a homeowner, consider earthquake and flood insurance. Make sure you review your policy every year and ask questions if something doesn't make sense to you.
When disaster strikes, you shouldn't have to worry about your finances. These preventive measures will allow you to focus on physical and emotional recovery when you need to most.
K-12 to College, OKMM is Here to Help
Classroom … check! Students … check! Financial education … check? The new school year will begin before you know it, and administrators, counselors, mentors and teachers want to be equipped with the best information to help students succeed. One way to promote student success is to incorporate financial education into your teaching curriculum or education plan.
Not sure where to start? OKMM provides customizable workshops, colorful publications, engaging activities and other services to help your students learn to carefully manage their money during high school and college. All of our services are available free of charge.
If your school or organization is interested in personal finance education for the students and families you serve, contact OKMM today at 800.970.OKMM (toll free) or OklahomaMoneyMatters@ocap.org.
Student Loan Management
Student Loan Borrowers Impacted by Recent Tornadoes
As you know, many Oklahoma citizens were affected recently by a series of tornadoes. President Obama has declared disasters in the following counties: Canadian, Cleveland, Lincoln, McClain, Oklahoma and Pottawatomie. OCAP will be instructing borrowers impacted by the disaster to notify their lenders that they've been affected.
Federal student aid information from the U.S. Department of Education for students, borrowers and schools impacted by a natural disaster is available at ifap.ed.gov/ifap/disaster.jsp.
Default Prevention Training Recap
OCAP recently held a workshop to train financial aid professionals to administer in-person loan counseling. The workshop brought together 25 financial aid administrators from around the state and focused primarily on Direct Loan Entrance Counseling. Entrance counseling, required for all first time student loan borrowers, is one of the few opportunities financial aid administrators have to emphasize the importance of responsible borrowing to students. Topics covered include basic eligibility requirements, how interest rates work, successful budgeting, grace periods and the importance of timely repayment. Many of these topics are also covered in Direct Loan Exit Counseling.
In-person loan counseling is an additional tool that institutions can use to strengthen their default prevention efforts. In recent years, the trend has been for schools to rely heavily on online loan counseling options. While these online options are an effective way to counsel large numbers of students, they don't provide the kind of face-to-face interaction that allows borrowers to ask questions about their student loans or allows aid administrators to emphasize key points that are essential for every student, such as the importance of making smart borrowing choices throughout the collegiate career and repayment responsibilities.
OCAP offers a federal Direct Loan Counseling Toolkit that consists of Entrance and Exit Counseling PowerPoint presentations, quizzes for both counseling sessions, and a demographic form to collect contact and reference information from borrowers. Institutions interested in offering in-person Entrance or Exit Counseling to their students can request a toolkit from Scott DeBoard at 405-234-4233 or sdeboard@ocap.org.
Calendar
- Nelnet's Webinar Wednesday series (external link)
- Fundamentals of Federal Student Aid Administration Training Workshops (external class)— October 2012-September 2013
- Labor Day (OCAP Closed) — September 2
- Access360 Conference — September 23-24