Putting the Puzzle Together

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Putting the Puzzle Together
Alternative Loans The GSFC Solution Presenter
John Cherry Senior Manager State Loans Division
2004 GSFC Annual Conference March 3 4, 2004
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Why alternative loan volume has increased

• The Greentree Gazette lists 5 reasons
• Soaring costs of education
• Growing traditional student enrollment
• Increased demand for adult/continuing education
• Unchanged Stafford loan limits
• Stagnant State and federal budgets

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Alternative loan volume increase

• Other reasons
• Trying to meet aggressive enrollment goals
• Trying to retain students through graduation
• Schools trying to replace costly institutional
  loan program
• Flexibility of new alternative loan programs

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Why schools offer alternative loans?

• Student not eligible for federal aid
• Parent doesnt want to fill out the federal
  paperwork
• Student procrastinates
• To pay down a previous balance
• Cover the gap of money left to pay
• International students

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What other financial options are there?

• Alternative loans
• Home equity loans
• Credit cards
• Titles for cash

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The Challenge

• Educate students and parents on the financing
  options that are available
• The Education Loan program
  is available to help!

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Higher Education
Loan

• Private loan available to undergraduate and
  graduate students attending approved public and
  private 2- and 4-year colleges and universities
• Designed to bridge the gap between federal
  student aid and what a family can afford to pay
• The loan can be used for tuition and other
  education-related expenses, including the
  purchase of a personal computer, books,
  transportation, living expenses and the expected
  family contribution
• Part-time students and students who are not
  pursuing a degree are eligible

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Higher
Education Loan

• NO origination fees
• Students or parents can borrow from 1,000 to
  25,000 a year, up to a total of 100,000
• Generous repayment terms of 15 years help lower
  monthly payments
• Applicants can receive a credit decision in 5
  minutes when applying by phone or online
• Funds are generally disbursed within 24 hours of
  final approval of a completed application

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Career Education Loan

• Private loan available for individuals taking
  certificate programs or career advancement
  classes through approved technical, professional
  and IT training schools
• The loan can be used for tuition and other
  education-related expenses, including the
  purchase of a personal computer, books,
  transportation, living expenses and the expected
  family contribution
• Part-time students and students who are not
  pursuing a degree are eligible

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Career Education Loan

• NO origination fees
• Students or parents can borrow from 1,000 to
  25,000 a year, up to a total of 100,000
• Generous repayment terms of up to 10 years (based
  on credit) help lower monthly payments
• Applicants can receive a credit decision in 5
  minutes when applying by phone or online
• Funds are generally disbursed within 24 hours of
  final approval of a completed application

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Repayment benefits

• No origination fees
• No pre-payment penalty
• .50 interest rate reduction when the first 48
  consecutive monthly payments are received on
  time.
• .25 interest rate reduction when payments are
  automatically deducted from a checking account.
• Borrowers may qualify for a co-borrower release
  after making the first 24 consecutive months of
  on-time principal and interest payments.

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Application Process

• Instant credit decision
• Over the telephone [phone]
• Online www.gsfc.org
• - Student selects Georgia First Education loans
  apply option.

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Application Process

• Application Process
• A simple phone call to 1-800-416-5177 or a visit
  to the product links from the gsfc.org web site
  starts the process.
• An instant credit decision is made based upon the
  information provided by the student and the
  credit review.
• A pre-approved application is sent via secure
  electronic delivery or U.S. Mail (co-signer
  options are available).

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Application Process

• Application Process
• The completed application promissory note are
  returned via U.S. Mail or overnight delivery.
• Upon final approval, applicants are sent an
  approval letter, disclosure statement and funds
  within 24 hours.

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Program Features

• 24-hour online account access
• - the e-Loan Servicing Center
  (www.gsfc.org)
• - Secure Voice Response System
  (1-800-416-5177)
• Pending application status
• Existing loan information
• Secure electronic delivery of pre-approved
  applications
• Applicants can choose to have their application
  and
• promissory note sent via e-mail

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Program Features

• Personalized rates and terms
• Determined by individuals credit

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Reporting Center

• Allows schools to log-in and see information for
  students who have applied for a Georgia First
  loan.
• Reporting center will show the following
  information
• - Non Approved Applications
• - Applications Pre-approved Not Returned to
  Processing
• - Applications Received Incomplete
• - Disbursed Applications

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Reporting Center

• Enter www.eloansecure.com/reportingcenter into
  your browsers address line. To log in, enter
  your User ID and Password, then click the submit
  button
• To sign up for the reporting center click on the
  link in the If you would like to enroll your
  school in the reporting center line to download
  the enrollment form, fill out the form, and send
  it to the address on the form

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• 
  Questions?

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Putting the Puzzle Together!
Colleges
Parents
Students
Financial Aid