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VOL. 23, NO. 10IGSL, 10B
April 2006
Welcome to the April 2006 ISAC Update for financial aid administrators and business officers. This version of the electronic ISAC Update is a compilation of e-Messages sent through College Zone’s e-Messaging service throughout April. This e-Messaging service has replaced ISAC’s use of printed newsletters, the ILASFAA ListServ, and special e-mail lists as our primary means of communicating information to you.
The articles in this Update have been organized according to the FAA Zone subscription groups to which the messages were distributed via College Zone’s e-Messaging service.
Questions?
Questions regarding information in this ISAC Update can be directed to School Services at 866.247.2172 or at schoolservices@isac.org. On occasion, you may be directed to a specific contact person or area; when this occurs, we will provide the appropriate information in the individual article or message.
Multiple Subscription Groups
ISAC to Pay Default Fee on Behalf of Borrowers
Sent to Financial Aid Directors, Financial Aid Administrators and FFELP Participants on April 28, 2006 ISAC is pleased to announce that we will pay the 1% default fee (previously the guarantee fee) for all ISAC-guaranteed Federal Stafford and PLUS loans for the 2006-07 academic year. Although the recently enacted Higher Education Reconciliation Act of 2005 requires guarantors to assess this fee and deposit it into the Federal Student Loan Reserve Fund for loans guaranteed on or after July 1, 2006, ISAC has chosen to pay this fee on behalf of borrowers rather than pass the cost on to students and their families.
Maintaining a policy that began in July of 1999, paying this fee on behalf of borrowers reduces the cost of borrowing and results in a greater percentage of loan proceeds being available to offset educational expenses. This subsidy is estimated to save Illinois student loan borrowers and their families $13 million per year, or approximately $50 per loan.
This benefit for borrowers, as well as all other agency programs and activities which facilitate access to education, are supported solely by ISAC's loan operations. All state funds allocated by the General Assembly are awarded to students and paid directly to colleges and universities on their behalf. Therefore, we greatly appreciate the support received through participation in ISAC's loan programs, as the revenue generated is reinvested into programs and benefits for students.
 2006-07 Budget Packets Now Available Online - Due On or Before June 1, 2006
Sent to Financial Aid Directors, Financial Aid Administrators and Public Schools - Participating in the ING Grant and IVG Programs on April 28, 2006 The annual gathering of budget information from postsecondary institutions participating in the Monetary Award Program (MAP) and the Illinois Veteran Grant (IVG) and Illinois National Guard (ING) Grant programs is upon us. Once again schools have online access to the forms used to submit this information. This year, the 2006-07 Gift Assistance Budget Packet allows schools participating in all three programs to enter their budget information on one form. Schools that participate only in MAP will complete the 2006-07 Monetary Award Program Budget Packet.
Updated Resource Documents and Budget Packets Available Online
The following links provide you with the detailed information needed to successfully complete and submit your institution's 2006-07 budget packets on or before June 1st. Updated instructions and Frequently Asked Questions (FAQs) for the MAP, IVG and ING Grant programs are available in the ISAC Gift Assistance Programs section of collegezone.com.
Which Packet(s) Should Be Completed?
Not all schools need to complete budget packets for all three programs. Community colleges and public four-year universities complete the new 2006-07 Gift Assistance Budget Packet for all the programs; all other MAP-approved schools complete the 2006-07 Monetary Award Program Budget Packet.
E-mail Preferred Method - Due On or Before June 1, 2006
The preferred method of submitting the budget packet(s) is electronically via the e-mail account of the Financial Aid Director. To ensure smooth and timely processing, all budget packets submitted electronically, as with paper submissions, must arrive at ISAC on or before June 1, 2006.
If you choose to mail or fax the budget packet(s) to ISAC, note the address on the front page of each packet. The 2006-07 information is being mailed or faxed to ISAC's Springfield Office. If you have questions concerning the budget packet process, please contact a School Services Representative at 866.247.2172 or schoolservices@isac.org.
Do You Want to Change How Your MAP Awards are Calculated? Schools have a choice in how MAP term awards are calculated. Awards may be split evenly between terms or be split by whole dollar amounts. For example, if a semester school has elected to use the "cents" option, an annual award of $4471.00 is split evenly between terms as an award of $2235.50. If the school chooses to use the "no cents" option, the annual award of $4471.00 would be $2235.00 for the first term and $2236.00 for the second term. A definition of the "cents" or "no cents" option for quarter schools can be found at the above link.
The majority of schools calculate term awards by the "cents" option, but if you're interested in switching to the "no cents" option (or vice versa), simply send an e-mail message to schoolservices@isac.org prior to June 1, 2006. Your awards would be re-calculated using the new method at the time of recompute later this summer.
ISAC Loan Options Expand for Graduate Students
Sent to Financial Aid Directors, Financial Aid Administrators and FFELP Participants on April 27, 2006 Previously available only to parents of undergraduate college students, the Federal PLUS Loan Program, as part of the Federal Family Education Loan Program, has now been expanded to include graduate and professional students, giving those pursuing advanced degrees more options for financing their higher education. This new category of student loan borrowers is a result of the recently enacted Higher Education Reconciliation Act
of 2005 (HERA).
To help you become better acquainted with the provisions of the HERA, we are preparing a series of Q & A's. The first of the series addresses Federal PLUS loans for graduate students and is posted in the Federal Information area of collegezone.com's e-Library. As more
Q & A's on other topics are posted, we'll notify you via our usual communication avenues of e-Messages and Message Board postings.
The expansion of the Federal PLUS Loan Program will begin with loans certified by the college on July 1, 2006, at which time students classified at the graduate level by their colleges will be able to borrow Federal PLUS loans guaranteed by the Illinois Student Assistance Commission (ISAC). Here's how the loans will work:
- ISAC will accept and immediately process loan applications for this new group of borrowers beginning on July 3rd.
- Like parents borrowing PLUS loans, graduate and professional students with no adverse credit history will be eligible to borrow an amount equal to the difference between the cost of attendance and any expected financial aid.
- Eligibility for both subsidized and unsubsidized Stafford loans will be determined by the student's completion of the Free Application for Federal Student Aid (FAFSA) before consideration of a PLUS loan.
- Graduate students will apply using the current Federal PLUS Loan Application and Master Promissory Note, and an addendum provided by the U.S. Department of Education (available through the Order Materials area of collegezone.com).
- The interest rate is fixed at 8.5%.
- Repayment on the Federal PLUS loan for graduate students will begin within 60 days after the final loan disbursement, although students will be eligible for an in-school deferment.
- The student is responsible for interest payments during the deferred period.
Commission Meeting to be Held Friday, April 28, 2006
Sent to Financial Aid Directors and Financial Aid Administrators on April 14, 2006
The next regular meeting of the Illinois Student Assistance Commission is scheduled for 9 a.m. on April 28th at Parkland College in Champaign.
The tentative agenda for the meeting includes:
- Fiscal Year (FY) 2007 IDAPP budget,
- FY2007 College Illinois! budget, and
- Proposed Rules Amendments.
The Agenda Book, which confirms each meeting's start time and provides a final agenda with a full description of each agenda item, will be available four to seven days prior to the meeting via the ISAC's Governing Board: The Commission section of the e-Library at collegezone.com.
Money Smart Week Chicago - May 1 - May 6, 2006
Sent to Financial Aid Directors, Financial Aid Administrators, Business Officers and FFELP Participants on April 13, 2006
Once again, the Illinois Student Assistance Commission (ISAC) is partnering with The Federal Reserve Bank of Chicago to promote personal financial literacy through its fifth annual Money Smart Week Chicago. Taking place May 1st through
May 6th, this week-long event consists of focused presentations by community groups, financial institutions, government agencies, educational organizations, and financial experts - all designed to help consumers learn to better manage their personal finances.
The Default Prevention Outreach Department at ISAC has long sponsored student educational programs regarding consumerism. As a partner in this activity, we are asking that you inform your student population about Money Smart Week Chicago by using the promotional materials that ISAC recently mailed to Illinois colleges. You can also encourage students to review the 2006 Chicago Money Smart Calendar of Events to search roughly 250 financial education events by date, topic, or neighborhood. The calendar may be accessed by going to chicagofed.org/moneysmart, clicking on the Chicago option, and then choosing the online calendar.
ISAC is sponsoring a Bilingual Money Smart Fair at the State of Illinois Building – Thompson Center, located at 100 W. Randolph St. in Chicago, on May 5th from 10 a.m. until 2 p.m. ISAC will distribute educational materials regarding college tuition management: grants, scholarships, student loans, College Illinois! (529 pre-paid tuition plan), IDAPP loan consolidation, and student loan default prevention programs and services.
The information being provided during Money Smart Week is extremely timely considering the rising cost of college tuition and the need to cover financial aid with student loans. ISAC's default prevention and financial literacy information, as well as other outreach services and activities, are funded through ISAC's role as a federal student loan guarantor and secondary student loan market. ISAC receives no state funding for administration, operations, or outreach.
If you need further information, please visit us at collegezone.com.
2005-06 MAP Funding Status Update
Sent to Financial Aid Directors and MAPnet Users on April 13, 2006
As a follow-up to our March 15th e-Message regarding the status of funds remaining for the 2005-06 Monetary Award Program (MAP), we'd like to provide an update. Our sincere appreciation to those of you who have reconciled your student accounts and reported the appropriate adjustments to us. That information has been critical in allowing us to monitor the status of MAP claims.
Currently, it appears that the appropriation will likely be sufficient to pay timely spring term claims - depending on the total dollar amount of claims submitted through the June 9th third quarter priority claim deadline date. The status of payment of late claims for both first and second terms, however, remains unclear at this point.
Please continue with your efforts of reconciliation and the reporting of adjustments (including any cancellations and downward adjustments) to us. We will keep you informed as new information becomes available.
Mark Your Calendar for Upcoming Important Dates
Sent to Financial Aid Directors, Financial Aid Administrators, Public Schools - Participating in the ING Grant and IVG Programs, MAPnet Users, and Business Officers on April 1, 2006 The Illinois Student Assistance Commission (ISAC) would like to make you aware of the following information, which may be of interest to you and/or your students.
You may either scroll through the entire message, or click on the appropriate link(s) to go directly to details about a specific topic:
UPDATES
Operational dates and other announcements regarding ISAC-administered gift assistance programs
MAPPING YOUR FUTURE CHAT EVENT
Information on May 16th online chat
HOLIDAY SCHEDULES
Processing schedules for Memorial Day holiday
All below links launch pages located at collegezone.com.
UPDATES
April 28th - The next regularly scheduled meeting of the Illinois Student Assistance Commission will take place at Parkland College in Champaign. The Commission meeting Agenda Book, providing a full description of all agenda items, will be available at collegezone.com five to seven days prior to the meeting. To access Agenda Books, select the link that appears beneath the "Resource Center" heading at the College Zone home page.
Program-Specific Information
April 14th - Payment Request Rosters and Certification Forms for 2005-06 Illinois National Guard (ING) Grant Program spring term payments are due. Payment of spring term and supplemental claims will occur once we have determined the final proration factor that will be necessary for spring term ING Grant Program awards. There will be no dollars available for summer term awards.
April 15th - 2005-06 Student to Student (STS) Program of Matching Grants second quarter payment claims are due. Payment of second semester/second or third quarter claims will occur after June 15th (the STS claim deadline for second semester/third quarter), once we have determined the final proration factor that will be necessary for STS Program awards for these terms. No late claims will be paid.
April 17th - 2006-07 Initial Certification Documents for all timely Illinois Future Teacher Corps (IFTC) Program and Minority Teachers of Illinois (MTI) Scholarship Program renewal applicants are scheduled to be mailed.
April 29th - Supplemental Payment Request Forms for the 2005-06 ING Grant Program are due.
May 1st - 2006-07 Initial Certification Documents for all timely IFTC Program and MTI Scholarship Program new applicants are scheduled to be mailed.
May 15th - 2006-07 Initial Certification Documents for all untimely IFTC Program and MTI Scholarship Program applicants are scheduled to be mailed.
May 25th - 2005-06 Illinois Veteran Grant (IVG) Program spring term payment claims are due. Payment of spring term claims will occur after this date, once we have determined the final proration factor that will be necessary for spring term IVG Program awards. No late claims will be paid.
June 9th - 2005-06 Monetary Award Program (MAP) and Silas Purnell Illinois Incentive for Access (IIA) Program payment claims are due for third quarter, and for second semester at institutions where the second semester begins after February 15th.
June 15th - 2005-06 STS Program second semester/third quarter payment claims are due. Payment of second semester/second or third quarter claims will occur after this date, once we have determined the final proration factor that will be necessary for STS Program awards for these terms. No late claims will be paid.
A new monthly calendar, offering an at-a-glance listing of operational dates concerning gift assistance programs such as those listed above, is posted to the ISAC Gift Assistance Programs area at the beginning of each month. In addition, the "Program News" sections (located on the front page for each program within in the ISAC Gift Assistance Programs area) are updated regularly. Be sure to visit these pages often for the latest information regarding gift assistance programs administered by ISAC.
MAPPING YOUR FUTURE CHAT EVENT
May 16th – Mapping Your Future Chat Event
The next Mapping Your Future online Chat Event, Financial Aid and Managing Student Loans and Consumer Debt, is scheduled from 6 to 7 p.m. (CT) on Tuesday, May 16, 2006. Watch for more information to be posted at the FAA Message Board as this date approaches. Also, remember that the calendar of upcoming Chat Events through August 2006 is available at the Outreach Activities page.
HOLIDAY SCHEDULES
A complete listing of 2006 holidays on which ISAC staff will be unavailable is provided at the ISAC Events Calendar.
May 29th – Memorial Day
Due to the Memorial Day holiday, ISAC offices will be closed on Monday, May 29th and will reopen on Tuesday, May 30th.
Loan records received at ISAC on Memorial Day, as well as disbursement records received at the National Disbursement Network (NDN), will be processed the following business day. This means that CommonLine or Common Account Maintenance (CAM) files received on May 29th will be processed on May 30th, with results available May 31st (or the next available day for any schools opting to receive NDN files on specific days of the week). Note that ELM Resources will continue to process and transmit files on May 29th.
Although ISAC's offices will be closed on May 29th, MAPnet will be available during regularly scheduled hours and will reflect 2006-07 records processed by the Central Processing System (CPS) through Friday, May 26th. 2005-06 Monetary Award Program (MAP) and Silas Purnell Illinois Incentive for Access (IIA) Program payment requests submitted from 5 p.m. (CT) Friday, May 26th through 5 p.m. (CT) Tuesday, May 30th will be processed Tuesday night, and payment results will be available on MAPnet the morning of Wednesday, May 31st.
The College Zone Web site is available 24 hours a day, 7 days a week - even when the ISAC offices are closed. Also, questions or inquiries may be submitted at any time by sending an e-mail message to ISAC's School Services Department. With the exception of holidays, ISAC staff will review and respond to messages during regular business hours (Monday through Friday, 8 a.m. - 5 p.m. CT).
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Financial Aid Director
Executive Briefing Conferene Call - May 1st
Sent on April 24, 2006 On Monday, May 1st, ISAC Executive Director Larry Matejka will offer an Executive Briefing Conference Call to provide an update on a variety of ISAC-related topics, including an overview of the April 28th Commission Meeting. The conference call, for financial aid staff at the Director or upper management level, will be held at 10 a.m.
To participate, dial 888.767.9380 and enter the passcode: 9767339#.
Items which will be discussed during the call include:
- State Legislative Update
- FY2007 Budget Update
- Status of Proposal relating to loan sale
- Proposed Rules and Amendments
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MAPnet Users
Urgent Notice About 2006-07 MAP and IIA Records
Sent on April 18, 2006
ISAC has confirmed that some student records in 2006-07 MAPnet do not display an applicable Disqualify Code. This may affect your ability to determine Monetary Award Program (MAP) and Silas Purnell Illinois Incentive for Access Program (IIA) grant eligibility for impacted students. The affected records fall into one or both of the following categories:
- Records for students who reached or exceeded 135 MAP paid credit hours due to payment processing after the implementation of 2006-07 MAP Start-up on February 9, 2006; and
- Records for students who went into default after 2006-07 MAP Start-up.
ISAC is working to add the appropriate indicators to the impacted records and plans to have this information display properly in MAPnet 2006-07 shortly. Disqualify codes for these students do appear properly in MAPnet 2005-06.
Identifying Impacted Records
Category 1 – MAP Paid Credit Hours, Disqualify Code 7
Records for these students appear with the correct number of MAP Paid Credit Hours (135 or greater), however other usual indicators are not displayed. Those indicators include the light bulb icon on the Student List Eligibility Screen, the yellow highlighted Disqualify field, and the “7” in the Disqualify field on the Student Detail Eligibility Screen. You can identify the impacted student records by using MAPnet’s Filter option and selecting “MAP Paid Credit Hours > = 135.” All student records with 135 or more MAP Paid Credit Hours will appear on the resulting Student List Eligibility Screen whether they have the disqualify code (and other indicators) or not.
Category 2 – Defaulted Student Records, Disqualify Code 8
For these students, none of the usual indicators of a default status appear in MAPnet 2006-07. The usual indicators, including the light bulb icon on the Student List Eligibility Screen, the yellow highlighted Disqualify field, the “Y” in the Default field and the “8” in the Disqualify field on the Student Detail Eligibility Screen are not displayed. You may create a list of these potentially impacted student records by accessing MAPnet 2005-06 and, using the Filter option, selecting “Default”. Records that appear on the resulting Student Eligibility List Screen are those that may appear in MAPnet 2006-07 without default indicators when they are in fact records for students in default.
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FFELP Participants
Latest School DAAR Report Available
Sent on April 4, 2006 and April 18, 2006
The Notification of Student Loan Borrower DAAR Status report (School DAAR Report) for your school is now available on College Zone's My Zone. This online version has replaced the paper rosters ISAC sent in the past.
The School DAAR Report is non-cumulative and is available twice a month to those institutions with students for whom ISAC, as the guarantor, has received a Default Aversion Assistance Request (DAAR) during the reporting time period. Each time a new School DAAR Report is made available online, an e-Message will be sent to the "FFELP Participants" e-Messaging subscription group.
Accessing School DAAR Reports at My Zone
My Zone is a portal available in the FAA Zone at collegezone.com that allows postsecondary schools online access to student-specific data in a secure environment. If you have not yet signed up to participate in My Zone, proceed to the FAA Zone front page and select the My Zone Quick Link.
For complete information and instructions to access your school's DAAR Report, proceed to the FAA Zone front page and select the My Zone Quick Link in the right margin of the page.
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ISAC Update Group
Electronic ISAC Update for March 2006 Available at College Zone
Sent on April 3, 2006 The March 2006 edition of the ISAC Update is now available for your review within the ISAC Publications section of College Zone's e-Library. This version of the monthly electronic ISAC Update is a compilation of e-Messages sent to financial aid administrators and business officers in March via College Zone's e-Messaging service.
Topics covered in the March 2006 ISAC Update include:
- Meet Us Along the "Road to Opportunity"
(sent March 24, 2006)
- Commission Meeting to be Held Friday,
March 31, 2006
(sent March 24, 2006)
- 2005-06 MAP Payment Urgent Alert
(sent March 15, 2006)
- Executive Briefing Conference Call - March 15th
(sent March 7, 2006)
- Latest School DAAR Report Available
(sent March 3, 2006 and March 20, 2006)
- Electronic ISAC Update for February 2006 Available at College Zone
(sent March 1, 2006)
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