NYHELPs Update

1
(No Transcript)
2
NYHELPs Purpose

• An Alternative Loan that is
• Credit Based
• College Certified
• Not designed to compete with Parent PLUS
• Creates Informed Consumers
• Applied for annually

3
NYHELPs is a solution for

• A student that has exhausted all other types of
  financial aid
• Federal, State Institutional Aid
• Students and families wanting a fixed rate
  alternative loan
• A situation where a parent or legal guardian is
  not available
• (A sponsor may borrow up to 10,000 for an
  unrelated student)

4
NYHELPs Loan Amounts

• Annual Minimum 2,000
• Annual Maximum 10,000
• Aggregate Maximums
• 2-Yr. Undergrad 20,000
• 4-Yr. Undergrad 50,000
• Combined Grad Undergrad 70,000
• For the 2010 spring semester students will be
  able to borrow 10,000

5
NYHELPs College Eligibility

• Title IV Eligible
• Located in New York State
• Offer approved degree / professional
  certification program
• Contribute 1 percent of principal for each loan
• Cannot be assessed to the borrower
• Participate in HESC Student Loan Marketplace for
  loan application
• Must certify student eligibility
• Utilize EFT Escrow process

6
NYHELPs Student Borrower Eligibility

• Enrolled at an eligible college at least
  half-time.
• NYS resident for past 12 months
• US citizen or permanent resident alien
• Must exhaust all financial aid eligibility
• Apply with eligible NYS cosigner
• Maintain Satisfactory Academic Progress
• Satisfy credit requirements
• Complete financial literacy course

7
NYHELPs Non-Student Borrower Eligibility

• Parent, legal guardian or sponsor of an eligible
  student
• NYS resident for past 12 months
• US citizen or permanent resident alien
• Complete personal info form in Marketplace
• Satisfy financial credit requirements
• Complete financial literacy course

8
NYHELPs Cosigner Eligibility

• At least 21 years old
• NYS resident for the past 12 months
• US citizen or permanent resident alien
• Satisfy credit requirements
• Limited to three (3) NYHELPs loans in any
  academic year
• Except when a parental relationship to borrower
  exists

9
NYHELPs Payment Terms

• Principal and interest payments
• Only option for non-student borrowers
• Interest only payments
• Fully deferred payments
• At Launch only fixed rate loans
• Based on credit requirements for borrower and
  cosigner
• Not all applicants will be eligible to receive
  all payment terms

10
Repayment Terms

• Principal and Interest Loans
• 10 years
• For Interest Only and Deferred Loans
• 10 years if the total is less than 20,000
• 15 years if the total is less than 40,000
• 20 years if the total is greater than or equal to
  40,000

11
NYHELPs Servicing

• All loans serviced by (FirstMark a division of
  NELNET).
• Borrower application process initiated at HESC
  Student Loan Marketplace

12
NYHELPs Timeline

• Developed in a very transparent process
• Oct. 19 Public comment period closes
• Nov. 4 Regulations expected to be in effect
• Early December Application process begins
• Jan. 2010 First disbursements

13
Policy Advice

• School Manual in development
• Additional advisories (NYHELPs Bulletins) will be
  provided as needed
• All regulations are published on HESCs web site
• All Q As are published on HESCs web site

14
NYHELPs ProcessingFlow

• Borrower shops for loan via Marketplace
• Borrower receives terms and selects NYHELPs
  product
• Borrower is directed to Financial Literacy
  Program
• Borrower confirms product selection upon
  Financial Literacy Program completion
• Borrower directed to FirstMark web site to
  complete e-MPN

15
NYHELPs ProcessingFlow (contd)

• Servicer collects all pertinent documentation
• College certifies online or in batch via AltLoan
  Connection
• Certification sent to servicer
• Response posted for school
• Servicer sends disbursement file
• Disbursement sent to college via HESC escrow

16
HESC Student LoanMarketplace
17
Student is directed to NYHELPs home page
17
17
Learning Center educates users about smart
borrowing practices
18
Upon HescPIN Login, Borrower directed to My
Marketplace page
18
Link to Financial Literacy module available
throughout site
Student clicks here to register and login
19
Student Initiates a Personal Information Form
(PIF)
19
Steps can be printed to help user gather the
information needed to complete the process
20
Student agrees to all disclosures
20
Disclosures are in plain English for easy
comprehension
Credit pull is valid for 45 days
21
Cosigner prepares to attach with Student PIF
21
Co-signer enters the Marketplace
22
Cosigner agrees to all disclosures
22
Disclosures are in plain English for easy
comprehension
Credit pull is valid for 45 days
23
Student returns to Marketplace to view offers
23
Student enters the Marketplace to view loan terms
24
Valuable information on Fixed vs Variable provided
24
Brief overview of interest rate attributes is
presented and then student continues to see terms
25
Student is presented with NYHELPs only offers
25
Sort by criteria that matters most to the student
Select up to three products to compare side by
side in greater detail
26
Student decides to view all offers
26
27
Student chooses to compare products
27
Side by side view presents more loan term details
28
Student selects a NYHELPs product
28
Borrower is informed of steps necessary to
complete the loan process.
29
Student completes Financial Literacy
29
30
Student decides to continue with the selection
30
Student may email this page to someone they
trust, ideally their co-signer
After completion of financial literacy, borrower
can reconsider their choice or continue with
their first selection.
31
Student is linked to Lender/Servicer
31
Data is transmitted to NYHELPs servicer
32
Financial Awareness Consumer Training for
Students (FACTS)

• Financial literacy curriculum for students
• Topics covered
• How to Manage Credit Cards
• Credit v. Debit Cards
• Spending Plans
• Personal Financial Management Skills
• Avoiding Identity Theft
• Goals
• Provide basic understanding of
• finance credit
• Lower schools default rate

33
Financial Awareness Consumer Training for
Students (FACTS)

• Customizable to your needs
• College can choose best forum for delivery
• Information tailored to meet the needs of the
  audience
• Available on HESCs Web site
• Up-to-date PowerPoint presentations
• Detailed speaker notes
• Brochures handouts available
• Can be delivered by HESC experts
• Specific person can come to your school
• Train the trainer

34
(No Transcript)
35
HESC E-Library

• Types of Resources
• Articles
• Audio Podcasts
• Video Podcasts
• Topics Covered
• Financial Literacy
• College Access
• Financial Aid
• Free for download

36
The Future of HESC Financial Literacy
37
E-Learning Financial Literacy Program

• Developed in partnership with Element K.
• Rich multimedia
• Interactive activities
• Ensures student engagement
• Self-Paced Learning
• Can be accessed 24/7
• Audience Based
• Ranges from pre-college to post-college
• Ensures content is relevant
• and meaningful to student

38
Topics Covered

• Student Loans (launched with NYHELPs)
• All financial aid loans
• Required for NYHELPs Loan
• Credit Credit Cards
• Budgeting
• Banking Basics
• Identity Protection

39
Knowledge Hub

• Sophisticated Learning Management System (LMS)
• Glossary of Key Terms
• Reference documents
• Assessments
• Pre-Test
• Post-Test
• Learning checks throughout the lesson

40
Knowledge Hub

• Instructor led material can be added
• Assignability Goal
• College can designate required topics
• College can assign specific work

41
Thank You!!