Agents in Training: Tips, Shortcuts

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Agents in Training Tips, Shortcuts Decrypting
the Jargon

• Dawna Ziverk, OGSLP Client Solutions
• Pam Hicks, OGSLP Communications

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Acronyms

• FAFSA
• Fathers Application For Sending Away
• Funding Application for Free Stuff Anywhere
• Free Application for Federal Student Aid
• OASFAA
• Offering All Staff Friendly Answers Anytime
• Oklahoma Association of Student Financial Aid
  Administrators
• Oklahomas All Student Attitude Adjustment

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Acronyms contd

• OGSLP
• Oklahoma Guaranteed Student Loan Program
• Oh Gosh, Students Listen Please
• Oklahomas Great State of Loan Professionals
• SAR
• Students are Always Right
• Staffs Aggravating Records
• Student Aid Report

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Acronyms contd

• EFC
• Enroll For Cash
• Everyones Funds Count
• Expected Family Contribution
• IFAP
• Information for Financial Aid Professionals
• Interesting Facts About Pell
• Important Financial Aid People

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The Student Loan Process
Department of ED
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The Players

• Student
• Parent
• School/Financial Aid Office
• Lender
• Secondary Market
• Servicer
• Guaranty Agency
• U.S. Department of Education

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Student

• Complete the Free Application for Federal Student
  Aid (FAFSA)
• Maintain satisfactory academic progress while
  enrolled in school
• Provide demographic updates to school and lender
• Document deferment and forbearance during
  repayment

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Parent

• Supply need analysis data (income information) to
  school
• Borrow through Parent Loans for Undergraduate
  Students (PLUS)

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School/Financial Aid Office

• Administer financial aid programs
• Inform students/parents of rights and
  responsibilities
• Determine financial aid eligibility for
  students/parents

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Lender

• Primary source of FFELP capital
• Disburse FFELP funds to schools on behalf of
  student borrowers
• Receive and process FFELP borrowers payments
• Example Arvest, BancFirst, Bank of Oklahoma,
  MidFirst, OSLA Stillwater National Bank

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Secondary Market

• Purchase FFELP loans from lenders
• Receive and process FFELP borrowers payments
• Example Nelnet, OSLA Sallie Mae

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Servicer

• An entity that enters into a contract with a
  lender or secondary market to administer any
  aspect of its participation in the student loan
  process
• Example Nelnet, OSLA Student Loan Servicing
  Sallie Mae

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Guaranty Agency

• Insure student loan lenders against default,
  bankruptcy, disability or death of borrowers
• Provide training and technical support to schools
  and lenders
• Develop and provide forms and reports
• Offer assistance to borrowers, schools and
  lenders

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Guaranty Agency contd

• Provide default prevention services
• Provide financial literacy program/services
• Provide outreach/college access programs
• Example OGSLP

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U.S. Department of Education

• Regulate federal student aid programs
• Pay subsidized interest on FFELP loans
• Reinsures loans

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Industry Players

• Oklahoma Association of Financial Aid
  Administrators (OASFAA) www.finaidapps.ou.edu/oasf
  aa/index.html
• Southwest Association of Financial Aid
  Administrators (SWASFAA) www.swasfaa.org
• National Association of Financial Aid
  Administrators (NASFAA) www.nasfaa.org
• National Council of Higher Education Loan
  Programs (NCHELP) www.nchelp.org

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Who to contact at OGSLP?

• Loan Services
• Client Solutions
• Policy Implementation, Training Communication
• Default Prevention
• Early Assistance

• Claims Review
• Recoveries
• Legal
• Compliance
• Oklahoma Money Matters

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• BREAKING NEWS
• More Acronyms

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More Acronyms

• ED
• Enrollment Directions
• Education Decisions
• U.S. Department of Education
• HERA
• Hear Everyone Repeat A-lot
• Hows Everything Really Answered
• Higher Education Reconciliation Act

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More Acronyms contd

• NSLDS
• Need Some Loan Dollars to Spend
• Narcoleptic Students Learn Differently System
• National Student Loan Data System
• CFR
• Code of Federal Regulations
• Cant Find the Rules
• Continuously Fun Reading

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More Acronyms contd

• FFELP
• Federal Family Education Loan Programs
• Freshman Funds to Experience Lots of Parties
• Finally Feeling Excited to Leave Parents

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Game Rules(Hierarchy of Guidance)

• Higher Education Act (HEA)
• Primary Law
• Federal Regulations (CFR)
• Interpret and implement the law
• Sub-regulatory guidance
• Dear Colleague/Partner Letters
• Federal Student Aid Handbook
• Common Manual

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The Higher Education Reconciliation Act (HERA)

• Signed by President Bush on February 8, 2006
• Most provisions effective July 1, 2006
• OGSLP HERA Resource Pagewww.ogslp.org/News/Archiv
  es/2006/2006DRA.shtml

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Dear Colleague Letters (DCLs)

• Provide operational guidance
• Summarize law changes
• Provide interim guidance

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DCL Types
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DCL Numbering
GEN-06-02
Sequential Numbering, usually starting with 1
at the beginning of the year.
DCLs can be found at www.ifap.ed.gov or at
www.nchelp.org.
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Federal Student Aid Handbook

• Produced by Department of Education
• A multi-volume annual publication that provides
  detailed information on
• Administration of the Title IV federal student
  aid programs
• Institutional eligibility to participate in these
  programs

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Common Manual

• Unified, guarantor policy developed in 1995
• Common FFELP guidance administered by all 36
  guarantors
• Entire volume updated every July (this year will
  be different w/HERA changes)
• Glossary of FFELP terms
• History appendix and Guarantor-Specific
  Information appendix
• Found on OGSLP or NCHELP Web site

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Example of Terms Found in Common Manual Glossary

• Master Promissory Note (MPN)
• Origination Fee
• Disbursement Date
• Federal PLUS Loan
• Guarantor/Guaranty Agency
• Free Application for Federal Student Aid (FAFSA)
• Subsidized Loans
• Unsubsidized Loans
• Eligible Student

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Common Manual Updates

• Common Manual Bulletins (via OGSLP Online News)
• Common Manual Training Briefs(via OGSLP Online
  News)
• Common Manual Public Listserv
• Instructions to subscribe are in your How to
  Find the Answer Resource Guide

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Versions of the Common Manual

• Paper
• Electronic
• CD - ROM (e-Collection)
• Integrated
• Available on our Web site atwww.ogslp.org under
  School/Lender

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Resources

• Common Manual
• e-Collection
• www.ogslp.org/Schools-Lenders/common-manual.shtml
  
• Federal Student Aid Handbook
• www.ifap.ed.gov
• IFAP Web site www.ifap.ed.gov

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OGSLP How to Find the Answer - Resource Guide

• Common Manual
• IFAP
• Industry Players
• Available Listservs

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OGSLP
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OGSLP Schools/Lenders Page
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OGSLP HERA Resource Page
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IFAP
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IFAP - DCLs
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Federal Student Aid Handbook
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Department of Education (ED)
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NCHELP
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NCHELP e-Library
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OASFAA
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SWASFAA
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NASFAA
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HERA Hot Topics

• Master Promissory Notes (MPNs)
• Interest Rates for Stafford and PLUS loans
• Origination Fees
• Federal Default Fee
• Loan Limits
• Multiple Disbursement Rules
• Graduate and Professional Student PLUS Loan (new
  program)

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