HESC Update

SUNYFAP 2011

HESC Update

2011-12 State Budget Highlights

Tuition Assistance Program

Eliminates the $75 across-the-board reduction to student TAP awards.

Eliminates the two percent reduction to scholarship awards.

Continues the maximum TAP award for students matriculated in certain two-year degree programs at up to $4,000.

Tuition Assistance Program

Authorizes TAP awards for students who attend institutions that are not currently under the supervision of the State Education Department.

Amends the New York State District Attorney and Indigent Legal Services Attorney Loan Forgiveness Program to require New York State residency and to clarify the calculation of applicable eligibility timeframes.

Satisfactory Academic Progress (SAP)

Maintains the requirement that minimum academic standards for non-remedial students be increased for continued TAP eligibility, but modifies the standards to be more attainable for students first receiving State aid in 2010-11 and thereafter.

Scholarships

Extends the statutory authorization for the Regents Physician Loan Forgiveness Program until 2015-16, and authorizes awards for prior obligations retroactively to 2009-10.

Extends the statutory authorization for:– New York State Licensed Social Worker Loan Forgiveness

Program,– Senator Patricia K. McGee Nursing Faculty Scholarship and the – Nursing Faculty Loan Forgiveness Incentive Program until

2016, and retroactively for prior obligations for the 2010-11 academic year.

NYHELPs

New York Higher Education Loan Program

Facts and Stats

$6 million originated through 3/20/2011 677 loans fully approved $8,863 = average loan amount Repayment breakdown:

– Fully deferred-45%– Interest only-22%– Immediate payment-33%

College Participation

86 colleges currently participate state wide

SUNY Participation– 15 SUNYs– 3 Community Colleges

Program Highlights

1% college fee covered for 2011-12 Fixed rate Covers back balances FICO score requirement starts at 660 Financial literacy requirement Allows for a sponsor to borrow on behalf of the

student Servicer covers all HEOA disclosures and notices Early outreach – 200 borrowers in repayment – 0%

delinquency rate

Getting Ready for 2011-12

Simplified application process Reduced documentation Enhanced functionality for colleges

– Online processing– Disbursement methods

Continue to sign on new colleges

Contact Information

Thank you!

Lisa Simpson lsimpson@hesc.org

518-473-0842

HESC Update

Student Financial Aid Awareness FAFSA Completion Thank You for Your Help

HESC Update

Student Empowerment Grant Information will be focused on the

student– Net Price Calculator– Financial Literacy Driven– Free Money First– Student Loan Analytics Rating

HESC Update

Default Prevention1.2 million callsThe 500,000 borrowers that did not

default400,000 loans that were “PUT” last yearFinancial Literacy

HESC Update

The Transition of Guarantors Guarantor Services

Questions?