State Financial Aid Programs Review

Office of Student Financial Assistance | June 23 – 24, 2015

2015-2016

Clantha McCurdy Senior Deputy Commissioner

Robert Brun Associate Commissioner

Alison ConnollyAssistant Director – Student Loan Programs

Oliver McArdleSenior Program Manager

PRESENTERS

2015-2016

8:30 – 9:00 Registration & Continental Breakfast

9:00 – 9:15 Welcome & Introductions

9:15 – 9:45 DHE Policies & Legislative Update /OSFA Year in Review

9:45 – 10:45 State Financial Aid Programs Review

10:45 – 11:00 Break

11:00 – 12:30 Financial Aid Programs Review (Continued)

12:30 – 1:30 Lunch

1:30 – 3:00 No Interest Loan Program Review

Workshop Agenda

2015 - 2016

2015-2016

Public College Financial Aid Programs

Public College Programs

Need-base grant awarded to full or part-time students

$27 million allocated in FY 2015 – level funding in FY 2016

Approximately 30,000 assisted each year

Campus allocation is formula-driven

New funding model implemented in FY2012

Model is based on a formula that considers three-year average of key factors:

- Institutional enrollment- EFC = O – Pell EFC – (revised annually, as required)- EFC = Pell to 10,000 (equivalent to median income)

Cash Grant Program


Notification of FY 2016 Allocations sent to campuses in mid-May

Funds scheduled for two equal disbursements, fall and spring (anticipated for September and January)

Funds may be awarded to full and part-time students

Grants may be awarded up to the cost of tuition/fees (student)

Institutions are required to reconcile and submit an aggregate report to OSFA at close of each fiscal year

Cash Grant Program


Over 26 various waivers offered annually

Cost to the Commonwealth generally exceeds $50 million

List of more popular waivers include the following: John & Abigail Adams Scholarship Need-Based Tuition Waiver Categorical Waivers Foster Child Tuition Waiver Adopted Child Tuition Waiver Valedictorian Waiver National Guard Waiver Paul Tsongas Tuition Scholarship Waiver Mass Transfer Tuition Waiver

Tuition Waivers


Need-Based Waiver is the largest of all waiver programs, averaging $19m annually

FY 2016 allocation for the Need-Based Waiver is based on new funding model (identical to formula used for the Cash Grant)

Expenditure level periodically increased to reflect changes in enrollment and eligibility demands

Over the year, OSFA has clarified the FAFSA requirement for certain waivers via the Dear Colleague letter

Institutions are required to reconcile and report all awarded waivers as part of the annual year-end data submission

Year-End Financial Aid Data File will include identifier for a larger number of the waiver programs

Tuition Waivers


Implemented in 2004 - with a cohort of 13,000 students designated to receive scholarship in first year of college, starting fall 2005

Approximately 18,000 designated annually in the last four years – which seems to have peaked

Roughly 30% of students from each new class take advantage of the scholarship

Award equals value of tuition only – ranging up to $1,742

Recipient must enroll full-time

Cumulative GPA of 3.0 minimum to maintain scholarship

John & Abigail Adams Scholarship


John and Abigail Adams Scholarship


BHE approved amended guidelines in March 2011 Incorporates the Science Test as a selection criteria,

effective with high school graduation class of 2016▪ Student must achieve at least one advanced score and at

least proficient on other tests, which when combined, must rank in the top 25% of all district scores to be designated as an Adams Scholar

Provides up to six years for designated students to receive the eight semesters of tuition scholarship waiver▪ Allows greater flexibility to the student▪ Removes the “consecutive” semester enrollment requirement▪ Allows student to enroll less than full-time or not at all, and

resume eligibility upon the return to full-time status▪ Student must continue to meet all other criteria – FAFSA

Completion, GPA, etc.



Amended guidelines, cont’d Extends eligibility to students who do not initially

enroll in a public college or university immediately following high school graduation▪ Student may begin college at a non-public institution and

transfer to public ▪ Must transfer with a minimum 3.0 GPA▪ Student may also take a “gap” year or simply delay

enrollment▪ Student is no longer eligible once the six year mark after

graduation is reached Grants appeal approval to Commissioner’s “designee”

▪ All appeals for continued eligibility will be handled by OSFA ▪ Appeals granted if extenuating or unusual circumstances

can be documented. Students should not be encouraged to appeal if circumstances do not meet criteria



Duplicate letters of eligibility are available from the MA Department of Elementary and Secondary Education (781) 338-3625 OR (781) 338-3640

Adams Appeals may be submitted to the following: Adams Scholarship Committee

Massachusetts Department of Higher Education454 Broadway, Suite 200Revere, MA 02151

Evidence of extenuating circumstances required Must include appeal, copy of transcript and

documentation to support extenuating circumstance



Applies to Veterans, Senior Citizens and Native

Americans

Recipient may possess a prior bachelor’s degree –

Senior Citizens Waiver

Institution must waive state-supported courses

Encouraged to waive non-state supported costs

Courses must be applied to an eligible certificate or

degree program

Requires recipient to be matriculated

Categorical Waivers

2015-2016

Financial Aid Programs


Created in FY 2006 with a $1m initial appropriation; funding grew to $4 million in FY 2008 and FY 2009

Average expenditure is approximately $3.4 million last three fiscal years, anticipate similar funding in FY 2016

Awards cover cost of tuition, fees and some related costs for up to three courses (9 credits) per semester for an undergraduate program, where appropriate

One-year minimum employment as an early educator or provider for eligibility

Award values will remain unchanged in 2015-2016, but a credit limit may be imposed

Early Childhood Educators Scholarship


Maximum award amounts

Public University $500 per credit, maximum of $4,500 per semester

Private College/University $500 per credit, maximum of $4,500 per semester

State University $400 per credit, maximum of $3,600 per semester

Community College $250 per credit, maximum of $2,250 per semester

2016-17 Application – April 1, 2016 – June 1, 2016



ECE Scholarship fully integrated into MASSAid System

From OSFA website under the ECE Scholarship program or Student Portal - applicant selects:

How Do I Apply? …….and must follow prompts below:

MANDATORY REQUIREMENT: If you have not already done so, please complete the 2016-2017 Free Application for Federal Student Aid (FAFSA)

MANDATORY REQUIREMENT: If you do not already have a MASSAid account you may click here to create a MASSAid Student Portal account

MANDATORY REQUIREMENT: Applicants must have an EEC Professional Qualifications Registry Number to be considered for the ECE Scholarship.Applicants who do not have an EEC PQ Registry Number will need to follow this link to the PQ Registry: https://www.eec.state.ma.us/PQRegistry/

MANDATORY REQUIREMENT: Complete your 2016-2017 ECE Scholarship application in the MASSAid Student Portal system



Institutions may complete certification and payment process online via the MASSAid system

Certification opens: August 24, 2015 – Fall January 25, 2016 - Spring

Similar to process used for the MASSGrant program, certification and request for payment may be controlled by institution – within dates set by OSFA

Institutions should assign a contact for the ECE Scholarship program within the MASSAid system

Institution can also review student award status in MASSAid





Provides grants to currently employed public school paraprofessionals who wish to become certified to teach at K-12 level

Recipients must meet a two-year minimum employment requirement as a paraprofessional in a Massachusetts public K-12 school

Grants may be awarded to paraprofessionals with less than two years of employment if enrolled in a high-need discipline (Mathematics, Science, Foreign Language)

Paraprofessional Teacher Preparation Grant


Grants are awarded on a per credit basis, with a maximum semester/year total determined by institution type - public or private

Recipients must teach for a specified time, based on number of semesters awarded

An average of 400 students participate in this program annually

Paraprofessional Teachers Preparation Grant


Maximum award amounts

Public University $625 per credit, maximum of $7,500 per academic year

Private College/University $625 per credit, maximum of $7,500 per semester

State University $450 per credit, maximum of $6,000 per semester

Community College $250 per credit, maximum of $4,000 per semester

2016-17 Application available - April 1, 2016 - June 1, 2016



2015-16, PTPG integrated into MASSAid System From OSFA website under the PTPG program or Student Portal - applicant selects:

How Do I Apply?........and must follow links below:

Paraprofessionals interested in applying for the grant must complete the following: MANDATORY REQUIREMENT: If you have not already done so, please complete the

2014-2015 Free Application for Federal Student Aid (FAFSA)

MANDATORY REQUIREMENT: If you do not already have a MASSAid accountyou may click here to create a MASSAid Student Portal account

MANDATORY REQUIREMENT: Complete your 2014-2015 Paraprofessional Teachers Preparation Grantapplication in the MASSAid Student Portal system



Institutions must complete the PTPG certification and payment process online in the MASSAid system

Similar to process used for MASSGrant program, certification and request for payment may be controlled by institution – within dates set by OSFA

Certification opens August 24, 2015 - Fall January 26, 2016 - Spring

Institutions should assign a contact for the PTPG program within the MASSAid system

Paraprofessional Teacher Preparation Grant




Formula allocation

Student EFC = 0-5198 (Pell Eligible)

6-11 Credits (or the equivalent)

Eligible Degree or Certificate Program

Awards Range from $200 - $850 (based on

institution)

Student may receive maximum award in one semester

2015-2016 Institution Application currently available –

Deadline July 24, 2015

Part-Time Grant


SCHOOL TYPE AWARD EFC

INDEPENDENT $200 $850 0 - 5198

PUBLIC UNIVERSITY $200 $750 0 - 5198

PUBLIC STATE UNIVERSITY $200 $550 0 - 5198

COMMUNITY COLLEGE $200 $450 0 - 5198

NURSING $200 $400 0 - 5198

PROPRIETARY $200 $300 0 - 5198

VOC TECH $200 $250 0 - 5198

Part-Time Grant


Institutional allocation – formula-driven and based

on a three-year average, beginning 2013-2014

2015-2016 Institution Applications currently

available – Deadline July 17, 2015

Recipients must meet all eligibility criteria,

including full-time enrollment

$200 - $2500 annual maximum award

Recipient must demonstrate a $500 minimum

need to be eligible

Year-End data required and matched

Gilbert Grant


Deadlines for Year-End reconciliation reports and for continued participation in State programs based on allocations are as follows:

July 17, 2015 - Gilbert Grant Program

July 24, 2015 - Part-Time Grant Program

July 31, 2015 - Cash Grant & Need-Based Tuition Waiver

Program Deadlines


Christian A. Herter Memorial Scholarship


Competitive scholarship awarded to students who have encountered unusual hardships or extenuating circumstances

Twenty-five high school (sophomore or junior) students are selected to receive scholarships upon earning a high school diploma annually

Scholarship is portable to colleges throughout the U.S.

About one-third of the recipients are enrolled in colleges outside Massachusetts each year

Massachusetts award an average of $1 million in scholarships to students annually



Institution asked to complete Herter Financial Aid Information Form to establish Cost of Attendance and need

Award process initiated once fiscal year budget is approved

Herter used to meet unmet need – and reduce loan debt, if appropriate

Funds are disbursed via (paper) check and EFT in late August for fall; late December for spring





Originally funded in FY2013

To be eligible for the MHDS, a student must be enrolled in a high demand degree program in a Massachusetts public institution

The purpose of the program is to encourage degree completion in high demand disciplines helping to address workforce needs in the Commonwealth

The scholarship supports training and degree completion in disciplines that are deemed to be critical shortage areas (ex. Nursing, Sciences, Engineering, IT)

High Demand Scholarship Program


The High Demand Scholarship Program has seen reduced appropriation since its inception in FY2013 Currently there is no new application process

available and awards are made for previous recipients who are persisting in approved high demand fields

High Demand Scholarship Program

FY2013 FY2014 FY2015

Students Award Students Award Students Award

799$2,035,50

0595 $621,351 292 $606,675


High Demand Scholarship Awards

Academic Year

Sector Half Time Award Full Time Award

Spring 2013 Community College $1,000 $2,000

State University $1,375 $2,750

University of Massachusetts $1,625 $3,250

Spring 2014 Community College $806 $806

State University $1,031 $1,031


Spring 2015 Community College $600 $1,200

State University $975 $1,950


Since the programs inception, scholarship recipients have received awards for the Spring semester only

2014-2015

Programs for Adopted and Foster Children


Adopted and Foster Child Fee Assistance Program

Provides for full tuition and fee waivers, based upon legislative appropriation, for foster children in the custody of the Department of Children and Families (DCF) and children adopted through this agency that choose to attend a Massachusetts public institution of higher education

Program was initially funded in FY 2010 Fee waiver awards are generally paid out as

reimbursements for eligible billed fees. FY2014 was the first year where 100% of all

eligible fees were reimbursed. The number of students assisted each year has

shown a steady increase , growing from 550 in FY 2010 to just over 900 students in FY 2015



Financial Aid ProgramsAdopted and Foster Child Fee Assistance Program

The Adopted and Foster Child Fee Assistance Program fully migrated to the MASSAid system in Spring 2015

All Spring 2015 eligibility determination and awarding was done through MASSAid

Fall 2015 processing will begin on September 1, 2015 and extend until November 15, 2015. Spring processing will open in early 2016

Due to limited appropriation, OSFA will review any students submitted after the MASSAid deadline on a funds available basis with no guarantee of fee assistance awards

With the migration to MASSAid, all DCF eligibility documentation submissions are tracked by the system








Adopted and Foster Child Fee Assistance Program FAQ’s

Students must be 24 or under as of September 1, 2015 to receive funding during 2015-2016 If they turn 25 during the academic year they may continue to

participate

Out of state students who were adopted through MA DCF by an eligible MA resident or eligible MA state employee may participate in the fee assistance program Out of state students must have a current FAFSA on file and have

submitted DCF eligibility documentation to their campus Out of state students are only eligible for fee assistance

equivalent to the in state resident rate and are responsible for any billed fees above that amount

Campus must submit a hard copy of the students FAFSA to OSFA to complete eligibility review

Adopted and Foster Child Fee Waiver Program




Adopted and Foster Child Fee Assistance Program FAQ’s (cont).

Students cannot receive fee assistance for summer credits

DCF eligibility documentation must originate from the Department of Children and Families. OSFA has no ability to provide this documentation to students Students should contact DCF to obtain their eligibility

document

Students can use fee assistance funds for international credits, but only if the credits are considered state supported Campus must be collecting tuition and fees on behalf of the

Commonwealth and not the international institution.

Adopted and Foster Child Fee Waiver Program


Awarded as a “Last Dollar” grant

Requires student to sign an extended Care and Protection Agreement with DCF

Maximum award = $6,000

Grant is portable within the USA

Grant used to meet need and/or replace loans

Average of 250 students awarded annually

Foster Child Grant


File of eligible students is uploaded to MASSAid by Department of Children and Families (DCF)

A Foster Child Grant record is created for all students on the DCF list who have a FAFSA on file

Letters are generated for students who have an ineligible condition

Ineligible conditions that are specific to FCG : dependent student, age cut-off

Foster Child Grant


Foster Child Grant

Award Rules


Foster Child Grant


Foster Child Grant

Financial Aid Information Sheet


Foster Child GrantFinancial Aid Information Sheet


Eligible students who demonstrate need are automatically packaged at the time schools submit financial aid data

Students who are packaged go to a “Ready to Certify” status

Schools separately certify each student’s eligibility for the program

Foster Child Grant


Foster Child Grant


Foster Child Grant


Foster Child Grant


Foster Child Grant


Foster Child Grant

Program Participation Agreement & Attestation Requirements

Participation Agreement

Last Program Participation Agreement was signed by eligible institutions as of award year 2013-2014

Participation Agreement extends eligibility from July 1 to June 30 of each award year

Institutions that have remained eligible for State financial aid programs will receive a letter of continuance of the above Participation Agreement for award year 2015-2016

The letter of continuance will be mailed to schools prior to July 1

2015-2016 Program Participation Agreement

MASSAid

States that currently have reciprocity agreements with Massachusetts include:

Rhode Island

Connecticut

Vermont

Pennsylvania

District of Columbia

The absence of reciprocity does not affect all state financial aid programs

Reciprocity Agreements with other states

Attestation Requirements

Letters specifying each institution’s FY15 attestation requirement have been mailed

A school either has to submit a copy of its Title IV Audit Report or a Compliance Attestation Report of Massachusetts State financial programs

Attestation or audit reports are due 6-9 months following the end of the institution’s fiscal year

The OSFA Attestation Guide last updated in June 2014 remains in effect and is available on OSFA’s website

Fiscal Year 2015 Attestation Requirements

Attestation Requirements

Institutions will continue to electronically submit their attestation reports to OSFA via the Executive Office of Education’s Drop Box at:

https://gateway.edu.state.ma.us/

To add or remove EOE Drop Box users, institutions should submit requests to:

Judi Kennedy

[email protected]

OR

Robert Brun

[email protected]

Fiscal Year 2015 Attestation Requirements

https://gateway.edu.state.ma.us/

mailto:[email protected]


Staying the Course

MASSGrant

MASSGrant provided assistance to over 53,000 students in 2014-2015

As of 06/10/2015, the MASSGrant program disbursed a total of $41,634,603 (compared to $38,586,311 in 2013-2014, around same time)

2014-2015 MASSGrant year-end reconciliation process begins as of July 1

2014-2015 MASSGrant year-end reconciliation is to be completed by mid August

Any refund owed by a school as a result of year-end reconciliation will automatically carry over to the 2015-2016 award year, until resolved by the institution

2014-2015 Highlights and Activities

MASSGrant

EFC Range Number of Students

% of Population

0-200 31,141 58.35%

201-500 1,716 3.22%

501-1000 2,569 4.81%

1001-1500 2,542 4.76%

1501-2000 2,488 4.66%

2001-2500 2,368 4.44%

2501-3000 2,206 4.13%

3001-3500 2,177 4.08%

3501-4000 2,029 3.80%

4001-4500 1,908 3.58%

4501-5157 2,226 4.17%

53,370

Distribution of 2014-2015 MASSGrant Paid Group by EFC Range

MASSGrant

To date, OSFA has loaded over 280,000 unduplicated ISIR records

OSFA already has mailed over 193,000 MASSGrant ineligible letters

Students receive an e-mail notification of the letter as soon as it is generated

Students are able to access their MASSGrant record via our Student Web Portal with a MASSAid user account

2015-2016 Processing Activities To Date

MASSGrant

Correcting 2015-2016 Ineligible Records

Students have (3) weeks to resolve all MASSGrant ineligible conditions

New ISIR correction transactions received from CPS are loaded nightly to MASSAid, as much as students and schools can make updates to existing records at any time

Students can update their MASSGrant records on-line and recalculate their eligibility when reporting the following:

a change in enrollment status

a change in school they will attend

a change in degree they are working toward

MASSGrant

Schools users have either “View Only” or “Update” access to MASSAid, as directed by financial aid offices

At the time of first logon, school users are required to change their password and recommended to register their computer

A school user is automatically locked out of the system after 3 unsuccessful login attempts

If a school needs to add/remove a user or unlock a user account, it should contact Alex Gediman or Robert Brun at [email protected] and [email protected], respectively

School Access to MASSAid



MASSGrant

MA residency discrepancy (student or parent) requires student to submit documentation directly to OSFA

Schools are able to clear the following ineligible reasons in MASSAid on behalf of students in batch format:

1. Citizenship

2. Prior Bachelor’s Degree Received

3. Answered “YES” to Drug Question

4. Loan Default and/or Owe Refund on Federal Aid

Institutions are subject to the same 21-day period to correct discrepancies on a student’s behalf

Updating Ineligible Reasons

MASSGrant

Updating Ineligible Reasons

MASSGrant

Student not meeting Massachusetts residency requirements

Parent(s) not meeting Massachusetts residency requirements

Maximum number of semesters of eligibility reached

EFC and/or dependency status could not be determined (Missing Information)

FAFSA received by Federal Processor after 05/01/2015

Expected Family Contribution exceeds 5198

MASSGrant Ineligible Reasons

MASSGrant

Applicant has prior bachelor’s degree Student’s Name, Date of Birth and/or

Social Security Number Mismatch In default of Massachusetts No

Interest Loan Christian A. Herter Memorial

Scholarship recipient Student in default of Federal Title IV

loan or owes refund on a Federal grant


MASSGrant

Student answered “yes” to question 23 on FAFSA

Student owes refund to State financial aid programs

Student enrolled less than full time (only if student had updated his/her assumed status of full-time )

Student not meeting United States citizenship status requirements


MASSGrant

85,038 students showed eligibility for 2015-2016 MASSGrant awards as of 06/12

Of those 85,038 currently eligible students, 53,092 had an EFC between 0-200

At the same point in time last year, 55,810 students had an EFC between 0-200

2015-2016 Award Notification

MASSGrant

Distribution of 0-200 EFC Group by School Type

MASSGrant

All current 2015-2016 MASSGrant award values on display on the MASSAid system are estimated

OSFA will not start mailing of 2015-2016 award letters until a FY16 scholarship budget is finalized

Award amounts and eligibility can fluctuate as new ISIR transactions are loaded to MASSAid or updates made by agency, school and/or student users

Once an actual FY16 scholarship budget is available, OSFA will publish a final 2015-2016 MASSGrant Payment Schedule

2015-2016 Award Notification

MASSGrant

Estimated Family Contribution

Mass Private

University of Massachusetts

Public State Universities

Community Colleges

Mass Proprietary

Mass Voc/Tech

Mass Nursing

Out of State

0000-0200

1700 1500 1100 900 600 500 800 300

0201-0500

800 600 600 600 600 400 600 300

0501-1000

700 500 500 500 500 400 500 300

1001-1500

600 500 500 400 400 400 400 300

1501-2000

500 400 400 400 400 400 400 300

2001-5198

400 400 400 400 400 400 400 300

5199+ 0 0 0 0 0 0 0 0

Estimated 2015-2016 Payment Schedule

81

MASSGrant2015-2016 MASSGrant Certification & Payment Process

Student goes to a “Ready To Certify” status as soon as he/she is awarded in MASSAid

OSFA alerts schools as to when certification/payment of records begins and ends

Students are ready for payment as soon as they are certified as eligible

Schools have option of certifying via on-line screen or through a file download/upload process

The certification file upload process has specific file layout requirements

MASSGrant

2015-2016 MASSGrant Certification Process

MASSGrant


MASSGrant


MASSGrant

2015-2016 MASSGrant Batch Payment Roster

MASSGrant

Fall certification and payment to begin on September 14, 2015

Spring certification and payment to begin on January 18, 2016

Schools have 60 days from above dates to certify a student’s eligibility who has a “Ready to Certify” status

OSFA has the flexibility to extend the number of days for certification on a school by school basis

2015-2016 MASSGrant Certification/Payment Processes

2015-2016 MASSGrant

OSFA mostly generates payment batches on a weekly basis

MASSGrant users automatically receive an e-mail notification when OSFA generates a payment batch for their institution

A payment batch is generated for an institution as long as it has students in a “Ready to be Paid” status

Institutions that prefer to receive payment batches at times that they wish to select should contact OSFA

Payments are sent to schools directly from the Treasury

Certification/Payment Processes

88

MASSGrant

MASSGrant Reconciliation

Schools are required to reconcile payment batches within 30 days of their creation

Reconciliation of MASSGrant payments can occur via an on-line screen or through a file download/upload option

The reconciliation file upload function is subject to specific file layout requirements

Any refunds associated with a change in eligibility or occasioned by the reconciliation process automatically carry over to the next payment batch, unless a check is received at OSFA for those refunds prior to the next payment batch

MASSGrant

Any payment that is not reconciled for a period of more than 30 days will result in OSFA not being able to generate the next payment batch for the institution

Schools are also required to perform a year-end payment reconciliation process

The year-end reconciliation process can occur via an on-line screen or a year-end reconciliation file download/upload option

The year-end reconciliation file download/upload option has very specific file layout requirements.

MASSGrant Reconciliation

MASSGrant

MASSGrant Payment Batch Reconciliation

MASSGrant

MASSGrant Payment Batch Reconciliation

MASSGrant

MASSGrant Year-End Reconciliation

MASSGrant

Awards previously certified as ineligible or that remain un-certified as of the expiration of the 30-day period are automatically available for requests for reinstatement

OSFA approves all requests for reinstatement based on the availability of funding

Reinstated awards must again be certified by the institution

Schools are limited to one reinstatement request of each award in each term

MASSGrant Award Reinstatement

2015- 2016

GEAR UP

Required as a condition of the Federal GEAR UP Grant

Institutions are asked to submit financial award data from all sources for every GEAR UP student

GEAR UP scholarships are awarded to students attending eligible schools in Massachusetts, NH, ME, CT, RI, VT, PA and the District of Columbia

GEAR UP students do not have to be Pell Grant eligible to qualify for a scholarship

GEAR UP Scholarship Program Facts

GEAR UP

A combination of GEAR UP scholarship and all other forms of assistance available to a student cannot exceed their cost of attendance

GEAR UP scholarship can be used to replace self-help

GEAR UP scholarship award amounts vary according to the student’s enrollment status, as follows:

Full Time $1,000

¾ Time $ 900

½ Time or Less $ 800

GEAR UP Scholarship Program Facts

GEAR UP

The GEAR UP Scholarship program awarded 1958 students in 2014-2015 for a total of $1,735,568

1735 students received assistance under the program in 2013-2014

2014-2015 GEAR UP Scholarship Highlights & Activities

Award Year # of Students Dollars Awarded

2010-2011 1315 $1,143,933

2011-2012 1516 $1,313,339

2012-2013 1498 $1,314,480

2013-2014 1735 $1,531,262

2014-2015 1958 $1,735,568

GEAR UP

All GEAR UP data reporting and student’s scholarship eligibility certification occur on-line

If a student attends multiple institutions in one award year, financial aid data will be separately reported in each term

Schools are required to certify a student’s eligibility during both the fall and spring terms

Certification during each term facilitates school’s reporting of changes to eligibility prior to disbursement

GEAR UP administrators are notified of payment batches availability via e-mail

2015-2016 GEAR UP Processing

GEAR UP

Submitting GEAR UP Financial Aid Data

MASSAid

MASSGrant

Massachusetts No Interest Loan



GEAR UP Scholarship Program

Foster Child Grant


Herter Scholarship is next program for migration

Migration Update

MASSAid

All programs in MASSAid share the basic ineligible conditions (i.e. MA residency, Loan Default, Citizenship, etc.)

Some programs have one or more unique conditions that can also make a student ineligible (i.e. student must be less than 22 years old when he/she receives first GEAR UP Scholarship)

Enrollment status and EFC changes reported for any student ripples through the entire MASSAid system and appropriately update that same student eligibility for any other program for which he/she has a record in that award year

Any change in eligibility will also automatically update any awards the student may have throughout MASSAid and create refunds, as appropriate

Updates Throughout MASSAid

Fy15 Year-End Data File

Fy15 year-end financial aid data file layout will be available on-line by July 10

Very few changes are expected in the FY15 file

layout

Fy15 year-end data file submission will begin on August 10

Deadline for submitting FY15 year-end data file is November 2

Target Dates

OSFA State Programs Refund Form

New format enables OSFA to place all currently administered state financial aid programs on a single form from which schools can choose

School will select an aid program, an award year, populate a screen with refund information for one or more students and print a PDF to submit to OSFA with a refund check

The PDF will automatically display the sum total of all refunds listed on the form by the school

The new refund form will be available on OSFA’s website prior to the start of the 2015-2016 award year

One Form for all Programs

OSFA State Programs Refund Form

A Sample

OSFA Calendar

OSFA now has an on-line calendar that publishes its upcoming activities

Activities include, but not limited to:

Programs Year-End Reporting Dates

Programs Application Dates

Programs Certification Start and End Dates

Payment Batches Creation Dates

The on-line calendar will be periodically updated, as necessary

The OSFA calendar is accessible on OSFA’s website under the “For Schools” section

Stay Updated with OSFA

State Financial Aid Programs

*****

All 2015-2016 updated Massachusetts State Financial Aid Programs Guidelines will be available on-line on OSFA’s site as of July 1, 2015.

*****

2015-2016 State Financial Aid Programs Guidelines

Issues and Ideas for MASSAid

MASSGrant Payment Batches Frequency

Massachusetts Residency Dates on Residency Reply Form

MASSGrant Ineligible Letter

Other Issues?

What’s on Your Mind?

Lunch Break!

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2014-2015 Activity Summary

Final 2014-2015 NIL Disbursement Rosters will be created by OSFA on June 29th

2014-2015 NIL Reconciliation Rosters will be available for you to download July 1st

No Interest Loan

YearDollars

Disbursed# of Students

2014-2015 $5,858,182 2314

2013-2014 $6,316,374 2746

No Interest Loan

2015-2016 Loan Origination

2015-2016 NIL FAFSA filing deadline is March 14,2016

EFC Eligibility range 0-15,000

2015-2016 Anticipated Allocation Forms were sent to schools on June 5th and should be mailed back to OSFA by June 30th

2015-2016 Allocation Notifications will be mailed out to institutions July 24th with Promissory Note Paper included

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Student Eligibility

Permanent legal resident of Massachusetts, United States citizen or eligible non citizen

Enrolled full time

EFC must fall within 0-15,000 range

Enrolled in a certificate, associate or bachelors degree program

Not have received a prior bachelors degree or its equivalent

In compliance with Selective Service Registration Requirements

Not in default of any federal or state loans or owe a refund for any previous financial aid received

Maintain satisfactory academic progress

Promissory Note Creation

Access only students at your institution Indicated your school as first choice on FAFSA

or for whom OSFA has received a Transfer request

“Student Not Found” (Error Message) – if student is not listed at your school

May only create notes for NIL eligible students “012345678 does not qualify” – if student is

coded to your school but not NIL eligible

Loan Amounts Minimum $1,000 Maximum $4,000

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Loan Period Loan Processing Cycle is from August 1 –June

30 Borrower’s Loan Period must fall within this

date range Loan Period must coincide with period of

enrollment for the academic year

Disbursement Dates Schools control when loan disburses by

populating fields with desired dates Loan Periods > 155 days require at least 2

disbursements

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Promissory Note Submission

OSFA must receive an intact fully completed ORIGINAL COPY of the promissory note (as printed on the note)

Promissory note must be printed on the promissory note paper which cites the Terms & Conditions of the loan

All promissory notes capture emails displayed in MASSAid

Borrower must provide two (2) unique U.S. references with zip codes (business addresses will not be accepted)

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Promissory Note Submission

Borrower must sign full legal name as it appears on the promissory note and date appropriately

Promissory Note must be signed by school official

Self Certification Form must accompany Original Promissory Note

Promissory Note must be received by OSFA prior to the loan period end date to be eligible for a disbursement

Denied promissory notes will be returned to School Official’s attention

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Loan Origination

Borrower must sign full legal name as it appears on the promissory note and date appropriately

Promissory note must be signed by school official

Self Certification Form must accompany Original Promissory Note

Promissory note must be received by OSFA prior to the loan period end date to be eligible for a disbursement

Denied promissory notes will be returned to School Official’s attention

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Loan OriginationNo Interest Loan

Loan Origination

Cancellations May be performed in real time in MASSAid Must be done PRIOR to disbursement Funds from cancelled disbursements revert to school’s

allocation

Refunds Once disbursement occurs if student is no longer

eligible school must refund monies to OSFA Refunded monies DO NOT revert to school’s

allocation

Timely Submission of Promissory Notes Facilitates accurate Exit Interview processes

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Truth in Lending Act (TILA)

Per federal guidelines, OSFA instituted Regulation Z/Title X procedures

There is a four step disclosure process prior to the borrower receiving a disbursed No Interest Loan

For school’s convenience, disclosures are provided within the NIL Origination site

The Private Education Loan Application Self-Certification form must be received by OSFA along with the “Original Copy” of the promissory note, to be considered a complete application

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Truth in Lending Act

At the time of origination, the system will automatically create a borrower specific Massachusetts No Interest Loan Offer

School must provide this to student to review prior to signing the promissory note. The Massachusetts No Interest Loan Offer Form does not need to be returned to OSFA

At the time of approval, OSFA will automatically create a borrower specific Massachusetts No Interest Loan Disclosure that will be mailed to each borrower

The Loan Disclosure will provide three (3) business days for the borrower to decline the loan. Loans will be disbursed after the three day period

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Clearinghouse Updates

ECSI runs a Clearinghouse interface file every weekend. The file that is sent to the Clearinghouse includes all borrowers ECSI show in an enrolled status

If there is a match and the Clearinghouse shows that borrower to be withdrawn, less than half-time, or graduated, ECSI creates a record on our Clearinghouse Exit file

Weekly, ECSI creates an actual web exit for those borrowers and a notice is emailed to them

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Default Management

Reports

Expected Separation Dates OSFA mails throughout the year Reports can be generated at any time on

ECSI’s WebX system Opportunity to update separation dates

A March mailing included the current In-School report to allow schools to make any updates , the fiscal year 2014 cohort default rate and an update to the NIL Exit Requirements By request OSFA mailed schools a list of

defaulted borrowers

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Default Management

If the default rate exceeds 30% the institution must file a Loan Default Management Plan with OSFA by June 30 and achieve 100% return rate on on-line Exit Interviews to be considered for continued participation, no later than July 15, 2015

If the default rate exceeds 10% the institution must achieve 100% return rate on on-line Exit Interviews to be considered for continued participation, no later than July 15, 2015

If the default rate is less than 10% the institution must achieve at least 75% return rate on on-line Exit Interviews to be considered for continued participation, no later than July 15, 2015

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Default Management

Any school that does not achieve 100% return on all Exit Interviews by July 15th and have a prior year default rate in excess of 30% can receive no more than 75% of their highest allocation in the program in the last five years

OSFA has been sending monthly reminder emails to students that have not yet completed their Exit Interviews

As of June 1st, there were 1,339 borrowers separating between July 1, 2014- June 30, 2015 1,055 Disclosures Completed with ECSI 284 Disclosures Remain Outstanding

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Default Management2013-2014 Exit Interview Overview

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Total Borrower

s Separati

ng 7/1/13-6/30/14

Completed Exits

Current in

Repayment

In Deferme

nt

In Default

Private Institutions

1034 867 745 105 184

State Universities

499 346 346 48 105

UMASS 6 4 2 3 1

Proprietary

22 16 14 2 6

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Common Practices for Exiting Students No Interest Loan notices mailed or emailed to

students by financial aid offices. These include amount that was borrowed, Exit instructions, and login information

Placing holds on Graduation Tickets

Placing holds on Transcripts and/or Diplomas

Constant calls and emails to borrowers until 100% Exit completion is reached

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Default Management

All Exits are generated electronically by ECSI

Sixty days prior to separation, ECSI sends an email to borrowers with their username, password, and instructions to complete their Exits

Schools are encouraged to frequently remind students of this responsibility

OSFA has been emailing students monthly to remind them to complete their Exit Interview

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Default Management

Educational Computer Services, Inc (ECSI) remains the billing servicer

School Code for all OSFA programs = 4F

Schools have on-line access to update separation dates, change addresses and request an Exit to be generated

Schools must be proactive to report separation date changes to ECSI or OSFA as soon as you become aware of changes

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Default Management

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www.heartlandecsi.com

http://www.heartlandecsi.com/

Default Management

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Loan ServicingNo Interest Loan

Loan Servicing

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Paid in full! Yippee!!

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Common Practices for Preventing Default Students must participate in mandatory Exit

Counseling Sessions where loans are broken down by type and repayment options

After receiving the default list—school mails borrower past due letter

Staff reviews Delinquent Rosters monthly and reaches out to students by mail or phone. If school has different address updates are made to OSFA and ECSI. Also check to see if they are past due on Perkins Loans or other loans through the school

If student enters into default, a hold is placed on their transcript

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Wellness Program

Wellness Program Each month OSFA mails to institutions a

report of borrowers who are up to 90 days past due

Once a loan is disbursed a letter is mailed to borrowers along with a brochure reminding them of loan terms and conditions

OSFA mails a post-card to borrowers during their grace period, as an additional reminder of their loan and billing servicer

OSFA also emails students during their grace period

Monthly OSFA calls, mails and emails 30, 60 and 90 day past due borrowers

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Wellness Program

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Helpful Reminders

When contacting ECSI, school code for all OSFA programs = 4F

OSFA DOES NOT remove accounts from collections once placed with an agency

Accounts are FULLY accelerated @ 120 days past due

Students have a 6 month, one-time only grace period

NIL is not a Federal loan – therefore cannot be rehabilitated

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Helpful Reminders

NIL CANNOT be consolidated

NIL does not appear on NSLDS

Students in default may have their state tax returns intercepted

Students must complete a Commonwealth of Massachusetts exit interview

Borrowers must complete exit interview EVEN IF they are continuing in the fall in a graduate program (must apply for deferment)

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Contact Information Educational Computer

Services, Inc (ECSI) Schools/Institutions

Phone 1-800-437-6931

BorrowersMDHE

C/O E.C.S.I. 181 Montour Run Road

Coraopolis, PA 15108Phone: 888-549-3274Fax: 866-291-5384Email: [email protected]: www.heartlandecsi.c

om

OSFA Alison Connolly 617-391-6073

[email protected]

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Revere, MA

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