Volume 3 Issue 3 April 2012 - KHEAA

kheaa.com

Volume 3 Issue 3 April 2012 - KHEAA

KHEAA

Advisor

Volume 3 Issue 3 April 2012

In This Issue

....................................

KHEAA and KHESLC Services..........................2

KHEAA Verify Benefits........................................3

Kentucky Advantage Education Loan................4

Student Loan Comparison Tool..........................5

Cohort Default Management Service.................6

Details on Default.................................................7

2012-2013 State Grants Awarded........................8

Upcoming Events..................................................9

PO Box 798

Frankfort, KY

40602-0798

800.928.8926

kheaa.com

If you have a question you would like to see addressed

in a public forum such as KHEAA Advisor, please

send the question or topic suggestion to Meredith

Geraci at mgeraci@kheslc.com.


2

Did You Know...

When talking with clients who are saving for their own or their child’s college education,

remember that we can help. The Kentucky Higher Education Assistance Authority

(KHEAA) and Kentucky Higher Education Student Loan Corporation (KHESLC) have

served as trusted sources of information for college and student financial aid planning for

decades.

KHEAA and KHESLC are sister agencies and nonprofit public agencies who are experts in

educational funding. KHEAA administers Kentucky’s grant, scholarship and work study

programs, while KHESLC provides the lowest cost state-based student loans in Kentucky.

Combined, we help thousands of families save millions of dollars each year.

Did you know that KHEAA and KHESLC provide

these services to colleges and universities?

• FAFSA verification services (page 3)

• Alternative, state-based loan origination (page 4)

• Cohort Default Management Services (page 6)

• Net Price Calculator

KHEAA Marketplace

• Customer Care status lines

• Compliance reviews

• Publications

• Financial literacy workshops

As well as state student aid administration of:

• Kentucky Educational Excellence Scholarship (KEES)

• Kentucky Education Savings Plan Trust (KESPT)

• College Access Program (CAP) Grant

• Kentucky Tuition Grant (KTG)

• Go Higher Grant

• Early Childhood Development Scholarship

• Mary Jo Young Scholarship

• Kentucky National Guard Tuition Assistance Grant

KHEAA Work-Study

• Teacher Scholarship

• Minority Educator Recruitment and Retention Scholarship

• Osteopathic Medicine Scholarship

• Coal County Scholarship Program for Pharmacy Students


3

KHEAA VERIFY

KHEAA Verify is a new electronic

FAFSA verification service available for

processing student verifications easily

and quickly.

Everyone can use a little help sometimes.

That’s why KHEAA is proud to offer

KHEAA Verify.

With KHEAA Verify, our team of experts

will become a virtual extension of your

office without the expense and time

of hiring and training new staff. We

supplement existing school resources, not

supplant them.

Benefits of KHEAA Verify are:

v Completely electronic process

v Experienced staff

v Complete online archival of verification

forms and processes

v Reduced workload for schools

v Increased efficiency and productivity

v Improved customer service

v Inexpensive

v Easy to use

v Faster process

Now, instead of having your staff tied

up with burdensome, required

verifications, you can simply turn that

process over to KHEAA.

For details on pricing or to

arrange a presentation on this

service, call 888.678.4625

or contact your KHEAA/

KHESLC representative.


4

Kentucky Advantage Education Loans and

the Kentucky Advantage Parent Loans are

currently helping students afford college.

Low interest rates for these state-based

student loans are FIXED depending on the

repayment plan the borrower chooses.

Also, the fees associated with these loans

are among the lowest in the nation.

Is a co-signer needed? The loan decision is

credit and income based. If the borrower has

a limited credit history, questionable credit

or no income, then we recommend a credit

worthy co-signer apply with them.

Immediate Repayment

7.25% FIXED interest rate

2% Guarantee fee

0.50% Interest rate reduction for auto debit

*Available for Interest Only or Full

Repayment options

Postponed Repayment

7.75% FIXED interest rate

3% Guarantee fee

0.50% Interest rate reduction for auto debit

More information on our student and parent loans

can be found here.

How To Access The Loan Applications

Students

kentuckyadvantageloan.com – This is the direct

portal to the KY Advantage Education Loan site.

Parents

kheslc.com – Click on APPLY NOW, which displays

the first step of the parent’s online application.

kheslc.com – Click on APPLY NOW, which displays

the first step of the student’s online application.

kheaamarketplace.com – The borrower can

complete an application once and then shop

between multiple lenders.

Great Lakes Fast Choice list – The borrower can

select a lender and then complete the application

with the selected lender.

Call 800.988.6333 – Borrowers may call to have

an application mailed to them.

Call 800.988.6333 – Borrowers may call to have

an application mailed to them.

For more information, please call

888.678.4625.

Both student and parent loans are owned and serviced

by KHESLC. Funds are disbursed by KHEAA.


5

Need Money for College?

Pr i va t e Lo a n Pr e f

Students are always looking for funding to pay for college, and the Kentucky

Advantage Education Loan can help. Both students and their parents can use

these loans to fund college expenses.

To help students research their options, make sure to have a supply of the loan

brochures in a central area of your office.

This brochure, as well as other KHEAA/KHESLC publications, can be ordered

online or by contacting your Marketing representative. Or send us an e-mail to

let us know what you need.

KHEAA publications

KHESLC publications

Student Loan Comparison Tool

KHEAA offers the

Student Loan Marketplace, a

loan comparison resource at

kheaamarketplace.com.

The site provides side-by-side

comparisons of personalized

private loan rates and terms to

students attending colleges and

universities served by KHEAA in

Kentucky.


6

Managing Cohort Default Rates

Did your most recent two- and three-year draft

cohort default rates scare you? If so, call us.

We can help!

Managing your Cohort Default Rate is both

important and challenging, especially in these

tough economic times! Turn to the folks you’ve

known and trusted for more than 43 years to

provide non-profit services to students and

families — KHEAA/KHESLC.

Our Cohort Default Management Service is

staffed by dedicated, trained and professional

staff who will work diligently for you and your

student borrowers.

The Cohort Default Management Service

consists of two products:

Early Intervention

• Reach out to students who have recently

graduated, withdrawn or dropped to less

than half-time status

• Determine their future educational plans

and promote completion

• Confirm and/or update borrower

demographics

• Educate them on their loan repayment

plans, including deferments and

forbearance options

Default Prevention

• Contact delinquent borrowers to encourage

payment

• Determine reason for delinquency

• Counsel on solutions

• Verify and/or update borrower demographics

• Promote borrower contact with lenders and

servicers

You select the products that best fit your

needs. As longtime partners with KHEAA

and KHESLC, you are likely eligible for

significant discounts in providing these

valuable services to your students!

To learn more about our Cohort Default Management

Service and how it can help you and your students:

• Call 800.564.6068

• E-mail cdms@kheaa.com

• Contact your KHEAA/KHESLC representative


7

Details on Default

Definition of Default for Federal Education Loans

A FFELP loan that is paid in monthly installments is considered to be in default

if the loan is more than 270 days delinquent. The Direct Loan program defines a

default as 360 days delinquent.

Cohort Default Rate

Each year the Department of Education publishes cohort default rates (CDR)

based on the percentage of a school’s student borrowers who default.

The Cohort Default Period is the two-year period that begins on October 1 of the

fiscal year when the borrower enters repayment and ends on September 30 of

the following fiscal year. In addition, beginning with FY 2009, the Department

of Education has calculated a three-year CDR as well by extending the Cohort

Default Period to include one additional year (i.e., FY 2009 three-year Cohort

Default Period is 10/1/08 – 9/30/11).


8

2012-2013 State Grants Awarded

KHEAA processed Institutional Student Information Records (ISIRs) on March 29, 2012, for

state grant consideration for the 2012-2013 academic year. As expected, funding for both the

College Access Program (CAP) Grant and Kentucky Tuition Grant (KTG) has been exhausted.

The first CAP denials occurred on February 8, 2012. The first KTG denials occurred on

February 15, 2012.

Schools may access student accounts via Zip Access for 2012-2013. Students with valid ISIRs

will be able to review their eligibility via www.kheaa.com.

College Summary Files are available in school web directories under “Download KHEAA

Files.” Files for the 2012-2013 year may be identified by the name “CF300xxxx-yyyyyy,” where

the first digit is the ISIR batch year, xxxx is the school code, and yyyyyy is the date of the

report. The 2011-2012 files will continue to be available as “CF200xxxx-yyyyyy,” using the

same naming conventions. KHEAA will continue providing files for both the 2011-2012 and

2012-2013 academic years until the end of the 2011-2012 processing year.

The College Summary Report has two

versions, “College Summary,” which

provides details of state grant processing

activity for the year-to-date, and “College

Summary – New,” which provides details of

the week’s processing activity. Remember

that a student will appear on the file/report

if your institution has been listed on his/

her FAFSA. Schools will receive two files/

reports each week for the 2011-2012 year

and two separate files/reports for the 2012-

2013 academic year.

If you have questions, please contact

KHEAA State Grant Coordinator Sheila

Roe at (502) 696-7393 or sroe@kheaa.com.


9

Be sure to follow us on Twitter

@kheslc

KHESLC

Mark Your Calendar

... ... ... ... ... ... ... ... ... ... ... ...

April 11-13, 2012. KASFAA Spring Conference, Holiday Inn Cincinnati Airport,

Erlanger Ky. You do not need to log in to register. Check out the site here.

April 11-13, 2012. AASFAA Spring Conference, Guntersville State Park,

Guntersville, Alabama. To get more info, click here.

• May 28, 2012. KHEAA/KHESLC closed in observance of Memorial Day

• July 4, 2012. KHEAA/KHESLC closed in observance of Independence Day

• July 22-25, 2012. NASFAA National Conference, Hyatt Regency Chicago.

More info here.

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