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VOL. 26, NO. 11IGSL, 11B
June 2009
Welcome to the June 2009 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 June. 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
Commission Meeting Summary - 2009-10 Budget Spending Priorities and MAP Recompute Formula
Sent to Financial Aid Directors and Financial Aid Administrators on June 29, 2009 At its June 26th meeting, the Illinois Student Assistance Commission (ISAC) approved the 2009-10 Monetary Award Program (MAP) recompute formula, along with overall spending priorities based on the anticipated fiscal year 2010 (FY10) budget. Following the meeting, ISAC issued a Press Release containing a statement regarding the impact of a possible reduced state budget on student financial aid appropriations.
FY2010 Budget Spending Priorities (Agenda Item 4)
Prior to adjourning on June 1, 2009, both chambers of the General Assembly approved a budget (which has not yet been sent to the Governor for action) reducing ISAC's FY10 appropriation from $440 million to $220 million. This proposed budget, provided in a lump sum and when coupled with a subsequent request to manage an additional reserve of 25% of ISAC's general funds appropriation, would leave $165 million for FY10 gift assistance programs.
In preparation for the possibility of this scenario becoming reality, the Commission approved the following spending priorities for FY10: $161.9 million (including $3.7 million from federal LEAP/SLEAP funds) would be applied to MAP for the first part of the academic year (see Agenda Item 5, below); $4.5 million would be used for the Silas Purnell Illinois Incentive for Access (IIA) Program at the start of the academic year; $1.6 million would be allocated to the Golden Apple Scholars of Illinois Program; and $750,000 would go to fund grant programs for dependents of police, fire, and correctional officers, as required by state statute. No other FY10 scholarship, grant, or loan repayment/forgiveness programs administered by ISAC would be paid from the state's general fund. Although Illinois Veteran Grant (IVG) and Illinois National Guard (ING) Grant recipients would still receive their full tuition and fee benefits, the cost would be absorbed by the public universities and colleges, rather than through state appropriations through ISAC. (We have subsequently learned that the Illinois Community College Board (ICCB) has been allocated level funding for IVG in the FY10 proposed budget.)
2009-10 MAP Recompute Formula (Agenda Item 5)
Each year, ISAC is responsible for adopting an allocation formula for MAP. Typically, once the governor and General Assembly take action on the budget (which, as indicated above, remains unresolved), the Commission revisits the MAP formula and approves a "recompute" formula that is updated from the formula used at start-up.
The Commission approved an FY10 recompute formula that reduces annual awards by the amount necessary to stay within the appropriation and still provide awards for students whose applications were received prior to the May 15th suspense date. Awards will be "front-loaded" to provide a first-term award as close as possible to the amount announced at start-up. If the reduced annual award exceeds the first-term award announced at start-up, the remainder would be provided as a second-term award. For quarter school students, a third-term award would be provided only if the reduced annual award exceeds the sum of the first two term awards.
Note: In the event that the state budget appropriates $385.2 million for FY2010 MAP, the Commission approved retaining the FY10 start-up formula for FY10 recompute. If the final appropriation exceeds $385.2 million, the FY10 start-up formula would be retained and remaining funds would be used to release some suspended award announcements.
Watch for Further Details
The 2009-10 MAP Formula section (which includes the 2009-10 Hand Calculation Forms and is located within the ISAC Gift Assistance Programs area at collegezone.com) will soon be updated to reflect "recompute."
You will be notified via this College Zone e-Messaging service when the budget for FY10 MAP is known, and when to expect system changes related to the recompute process to be reflected in MAPnet.
Adopted Rules Amendments (Agenda Item 13)
The Commission approved and adopted the omnibus rules amendments, as modified during the rulemaking process, to be effective for the 2009-10 academic year. No substantive changes were made to the rules amendments as originally published. The full text of the rules amendments is available as 2009-10 Proposed Rules Amendments in College Zone’s e-Library.
Other Commission Meeting Agenda Items
Also addressed as part of the agenda were the following items. Additional information is provided in the June 26th Agenda Book, which can be accessed from the ISAC's Governing Board: The Commission page at collegezone.com. Specific agenda items may also be accessed by clicking on the appropriate link(s) below.
- The Commission approved the execution and delivery of a servicing contract with Ed Financial, LLC for loan originations and servicing for ISAC’s Illinois Designated Account Purchase Program (IDAPP) Federal Family Education Loan Program (FFELP) loan portfolio. (Agenda Item 15)
- The Commission approved the following agenda items related to the College Illinois!® Prepaid Tuition Program:
June Webinar includes Commission Meeting Report
A Webinar is scheduled for Tuesday, June 30th from
1 - 2 p.m. to provide a general program and operational update covering the following topics:
- 2008-09 Program News and Close-Out
- 2009-10 Program News
- Budget and Legislative Update
- Commission Meeting Report
- ISAC Rule Changes, effective July 1st
- HEOA Changes, effective July 1st
Commission Meeting to be Held Friday, June 26, 2009
Sent to Financial Aid Directors and Financial Aid Administrators on June 19, 2009 The next regular meeting of the Illinois Student Assistance Commission (ISAC) is scheduled for 9 a.m.on Friday,
June 26th at the University of Illinois at Chicago.
Some of the items on the tentative agenda for the meeting are:
- 2009-10 (FY10) Monetary Award Program (MAP) Recompute Formula
- Approval of Fiscal Year 2010 (FY10) Budget Priorities for ISAC-Administered Gift Assistance Programs
- Monetary Award Program - Calculating MAP Recipients' Graduation Rates
- Adopted Rules Amendments
- Approval of FFELP Servicing and Originations Contract
- Issuance of Taxable Student Loan Revenue Bonds,
Series 2009
- College Illinois!® Prepaid Tuition Program Investment Policy Revisions, FY09 Marketing Report, FY10 Enrollment Period Preview, and FY10 Budget
- FY10 Internal Audit Report
The Agenda Book, providing the complete agenda and a full description of each item (including information about the current status of the FY10 ISAC Budget and possible appropriation) is available via the 2009 Agenda Books page, which is located within the ISAC's Governing Board: The Commission section of the e-Library at collegezone.com. The online Agenda Book will be updated within 1-2 business days following the meeting to reflect action taken.
ISAC staff will be conducting a Webinar for financial aid administrators on Tuesday, June 30th at 1 p.m. A Commission meeting report is one of the topics being covered.
2008-09 ING Grant Summer Term Payment Request Rosters Now Available via My Zone
Sent to Financial Aid Directors, Financial Aid Administors, Public School Participating in the ING Grant and IVG Programs and Business Officers on June 15, 2009 Spring Term Paid at 100%
The Illinois Student Assistance Commission (ISAC) is pleased to announce that spring term payment requests for the 2008-09 Illinois National Guard (ING) Grant Program are being paid at 100% (in other words, no proration factor is being applied).
Summer Term Requests May Be Submitted via My Zone
Effective immediately, summer term payment requests for the 2008-09 ING Grant Program may be completed and submitted electronically to ISAC via the ING Grant Payment Roster system at My Zone.
With the July 1st final close-out date* for 2008-09 ISAC-administered gift assistance programs quickly approaching, schools are strongly encouraged to submit ING Grant payment claims for summer 2009 (including supplemental claims) as quickly as possible. Our goal is to receive the summer ING Grant claims on or before Wednesday, July 1, 2009.
Specific details regarding the ING Grant payment process are available at the following collegezone.com locations:
The ING Grant Payment Roster system is available via My Zone each Monday through Saturday from 7 a.m. until 7 p.m. (CT).
* For additional information regarding the 2008-09 close-out process, please refer to the May 22nd e-Message.
Projected FY2010 Budget Impact On State-Funded ISAC Programs
Sent to Financial Aid Directors, Financial Aid Administrators, Public Schools - Participating in the ING Grant and IVG Programs and Business Officers on June 12, 2009 As you know, the Illinois Student Assistance Commission (ISAC) is responsible for administering, among others, state-funded college scholarship and grant programs. Although Illinois has a long history of supporting need-based student aid, the outlook for adequate appropriations to fund our programs for the upcoming academic year appears bleak. Without new state revenues and facing a substantial budget deficit, cuts will need to be made, resulting in appropriation reductions in education, as well as other vital services and programs.
Under one budget plan, which seems to be more and more likely, our scholarship and grant program appropriations would be cut from $440 million to $220 million, with a 25 percent reserve, leaving only $165 million to be distributed among Illinois students.
The impact of this reduction would result in the Monetary Award Program (MAP) receiving 97.3 percent of these dollars. Awards would be made for the fall term only and the fall term award amount would be reduced by 17 percent. Likewise, the Silas Purnell Illinois Incentive for Access (IIA) Program would be funded at a level that would allow for fall term only awards. Providing awards to students during the fall term would allow more time for them and their families to make alternative financial arrangements for the second half of the year. It is likely many of these students would be forced to seek private/alternative loans with higher interest rates and less desirable terms in an already difficult market.
No other scholarship, grant and loan repayment/forgiveness programs currently administered by ISAC would be funded for the 2009-10 academic year. The Projected FY2010 Budget Impact On State-Funded ISAC Programs, categorized by school, illustrates the effect of these potential appropriation reductions on Illinois students.
Obviously, cuts such as those outlined above to these vital programs in a time of record need would be catastrophic to the college aspirations of the neediest of our citizens and the future prosperity of our state. We are hopeful that state government leaders will come together to create a common-sense budget that is fair to the taxpayers, while providing the residents of Illinois with the vital educational programs they need.
If you would like the General Assembly to make student financial aid a priority when allocating state resources for fiscal year 2010, you can identify your legislators and find their contact information at the General Assembly's Web site. Click on the "Legislator Lookup" link at the lower right side of the home page if you need to find out who represents your area, or simply click on "Member" and the names of your State Senator and Representatives to find their contact information in Springfield.
June Webinar to Provide ISAC Update
Sent to Financial Aid Directors, Financial Aid Administrators, Public Schools - Participating in the ING Grant and IVG Programs, MAPnet Users, Business Officers and FFELP Participants on June 11, 2009 The Illinois Student Assistance Commission (ISAC) will offer a Webinar on Tuesday, June 30th from 1 - 2 p.m. to provide a general program and operational update. Rather than focusing on a particular gift assistance program as previous Webinars have done, this month's Webinar will cover the following topics:
- 2008-09 Program News and Close-Out
- 2009-10 Program News
- Budget and Legislative Update
- Commission Meeting Report
- ISAC Rule Changes, effective July 1st
- HEOA Changes, effective July 1st
To participate in the Webinar dial 877.873.8017 and enter access code 8324962#.
Returning Amounts Owed for 2008-09 MAP
Sent to Financial Aid Directors, Financial Aid Administrators, MAPnet Users and Business Officers on June 11, 2009 With the 2008-09 Monetary Award Program (MAP) priority payment claim deadline (June 1st) passed and payment request data for late claims continuing to be analyzed, it appears that claims received after that deadline date (late claims) exceed the current appropriation balance. This means that, after all timely claims were paid for MAP, the current appropriation balance is insufficient to cover the late claims.
A prompt return of funds is necessary for ISAC to determine its ability to pay MAP late claims. Consequently, you are encouraged to finalize reconciliation activities on your campus as soon as possible. In addition, letters were mailed to financial aid directors on June 10th, detailing the “Due to ISAC” amount for each institution as of the June 8th MAP payment processing run. Please review the letter and return the appropriate amount.
Return Amounts Due by July 10th
The outstanding amount due for MAP, with proper documentation, should be returned to ISAC on or before
July 10, 2009. Be sure to use the current version of the Gift Assistance Programs Check Return Form, which includes a field to specify the term(s) for which funds are being returned and is dated "4/06" in the footer. This document may be accessed within the Refunds and Unpaid Claims portion of the FAA Zone's Processes area at collegezone.com.
As a reminder, due to the offset process, do not send refund checks to ISAC without providing the appropriate adjustment data via MAPnet. Details regarding the use of MAPnet are available at the 2008-09 Processing and User Guide area, which is located within the MAPnet portion of the FAA Zone's Processes area.
New State Legislative Update Posted (June 9, 2009)
Sent to Financial Aid Directors and Financial Aid Administrators on June 9, 2009 A new State Legislative Update has been posted for your reference at collegezone.com. This Update, dated June 9, 2009, contains the status of bills that pertain to ISAC-administered programs and higher education in general.
The General Assembly adjourned on June 1st after approving a Fiscal Year 2010 (FY10) budget that would fund agencies at 50% of the Governor's recommended budget levels. For ISAC, this would mean a 50% reduction in financial aid available to distribute for the coming academic year. Although this outcome would certainly be dire, the "50% budget" is not final. The bill has not yet been transmitted to the Governor for consideration, and budget negotiations among legislative leaders continue.
However, in the meantime, the agencies have been asked to consider how they would manage if (given the 50% reduction in funds) we were also asked to reserve 25% of our general funds appropriation.
We are hopeful that more detailed information will be available by the week's end. If so, we will provide a further update at that time.
Included in the Update is information regarding how to contact legislators, for those financial aid professionals who may choose to encourage General Assembly members to make student financial aid a priority as they allocate FY10 state resources.
The State Legislative Update can be accessed through College Zone's e-Library, #13, ISAC Announcements, Press Releases & State Legislative Updates. We will notify you when a new Update is posted.
Additional Held Claims to Be Paid for 2008-09 MAP
Sent to Financial Aid Directors, Financial Aid Administrators and MAPnet Users on June 5, 2009 As announced in a June 1st e-Message, on June 2nd the Illinois Student Assistance Commission (ISAC) paid all 2008-09 Monetary Award Program (MAP) third term claims (and second term claims for institutions whose second term begins after February 15th) that were received on or before June 1, 2009. Since that time, analysis for further payment releases has been ongoing.
This message is to announce that held 2008-09 MAP claims that meet both criteria below will be released for payment for all terms on Monday, June 8th, with results available in MAPnet on Tuesday, June 9th:
- records with a Free Application for Federal Student Aid (FAFSA) received date between and including August 2, 2008 and August 6, 2008, and
- the payment claim requests were received at ISAC on or before June 1, 2009.
Once the above-referenced claims have been released for payment, all other payment requests will be held for further data analysis. ISAC will continue to process reductions to awards and cancellations.
Continued Need to Reconcile 2008-09 MAP Records
The need continues for colleges to reconcile 2008-09 MAP records. Please complete a full reconciliation of MAP disbursements and return any amounts due (with proper documentation) as soon as possible. Be sure to use the current version of the Gift Assistance Programs Check Return Form, which includes a field to specify the term(s) for which funds are being returned and is dated "4/06" in the footer. This document may be accessed within the Refunds and Unpaid Claims portion of the FAA Zone's Processes area at collegezone.com.
As a reminder, due to the offset process, do not send refund checks to ISAC without providing the appropriate adjustment data via MAPnet. Details regarding the use of MAPnet are available at the 2008-09 Processing and User Guide area, which is located within the MAPnet portion of the FAA Zone's Processes area.
Watch for Future Updates
Continue to monitor ISAC's established methods of communication (i.e., the MAP Program News area, the FAA Zone Message Board and College Zone e-Messages) for additional updates as they become available.
Financial Aid 101: Building a Solid Foundation
June 2009 Workshops
Sent to Financial Aid Directors, Financial Aid Administrators, Public Schools - Participating in the ING Grant and IVG Programs, MAPnet Users, Business Officers and FFELP Participants on June 4, 2009 The Illinois Student Assistance Commission (ISAC) will offer its Financial Aid 101: Building a Solid Foundation Workshop twice in June. The dates and locations are:
- Tuesday, June 23 in ISAC's Deerfield Office, Room 3030, and
- Thursday, June 25 in ISAC's Springfield Office,
3rd Floor Conference Room. This free, full-day (9 a.m. to 4 p.m.) workshop is designed to introduce new financial aid professionals to financial aid concepts, programs and processes and help them develop a solid foundation on which to build their careers. The workshop will provide an overview of the following topics:
- basic financial aid principles,
- the Free Application for Federal Student Aid (FAFSA),
- need analysis and the Expected Family Contribution (EFC),
- federal financial aid programs,
- student loan basics, and
- ISAC's scholarship and grant programs.
For more details, visit the Partner Training section of the e-Library at collegezone.com.
If you are interested in attending one of these Financial Aid 101 Workshops, please send an e-mail to Kim Eck, Training Coordinator, at keck@isac.org indicating which session you would like to attend. Seating at each site is limited, so please register early.
Details regarding directions, parking, etc. will be provided to registered participants via e-mail a few days prior to the workshop.
Held Third Term Claims to Be Paid for 2008-09 MAP
Sent to Financial Aid Directors, Financial Aid Administrators and MAPnet Users on June 1, 2009
Earlier this spring (in e-Messages dated April 28th and April 30th), the Illinois Student Assistance Commission (ISAC) notified colleges that, while payment claim data for the 2008-09 Monetary Award Program (MAP) was being analyzed, all positive MAP claims submitted on or after April 28, 2009 were being held and not processed for payment. This message is to announce that all third term claims (and second term claims for institutions whose second term begins after February 15th) received on or before June 1, 2009 will be released for payment on Tuesday, June 2nd, with results available in MAPnet on Wednesday, June 3rd.
Once the above-referenced payment claims have been released for payment, all other payment requests will continue to be held as analysis for further payment releases continues. ISAC will continue to process reductions to awards and cancellations.
Continued Need to Reconcile 2008-09 MAP Records
The need for colleges to reconcile 2008-09 MAP records continues. Please complete a full reconciliation of MAP disbursements and return any amounts due (with proper documentation) as soon as possible. Be sure to use the current version of the Gift Assistance Programs Check Return Form, which includes a field to specify the term(s) for which funds are being returned and is dated "4/06" in the footer. This document may be accessed within the Refunds and Unpaid Claims portion of the FAA Zone's Processes area at collegezone.com.
As a reminder, due to the offset process, do not send refund checks to ISAC without providing the appropriate adjustment data via MAPnet. Details regarding the use of MAPnet are available at the 2008-09 Processing and User Guide area, which is located within the MAPnet portion of the FAA Zone's Processes area.
Watch for Future Updates
Continue to monitor ISAC's established methods of communication (i.e., MAP Program News, FAA Zone Message Board and e-Messages) for additional updates as they become available.
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FFELP PARTICIPANTS
Latest School DAAR Report Available
Sent on June 3, 2009 and June 18, 2009
The Notification of Student Loan Borrower DAAR Status report (School DAAR Report) for your school is now available on College Zone's My Zone.
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 May 2009 Available at College Zone
Sent on June 1, 2009 The May 2009 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 May via College Zone's e-Messaging service.
Topics covered in the May 2009 ISAC Update include:
- New State Legislative Update Posted (May 28, 2009)
(sent May 29, 2009)
- Important Dates, Including Close-out of 2008-09 Gift Assistance Programs
(sent May 22, 2009)
- Register for Training Sessions to Learn About Post-9/11 GI Bill - Program Resources Available Online
(sent May 21, 2009)
- 2009-10 Budget Packets Due June 1st
(sent May 20, 2009)
- 2009-10 MAP Suspension Status Available in MAPnet
(sent May 19, 2009)
- Additional Post-9/11 GI Bill Training Session to be Held June 16 at Black Hawk College
(sent May 18, 2009)
- New State Legislative Update Posted (May 14, 2009)
(sent May 14, 2009)
- Suspension of 2009-10 MAP Award Announcements
(sent May 12, 2009)
- Mark Your Calendar - Veterans Agencies and ISAC Offer Training Sessions on Post-9/11 GI Bill
(sent May 8, 2009)
- Special Commission Meeting Scheduled for May 7th
(sent May 5, 2009)
- New State Legislative Update Posted (May 1, 2009)
(sent May 4, 2009)
- Latest School DAAR Report Available
(sent May 4, 2009 and May 18, 2009)
- Electronic ISAC Update for April 2009 Available at College Zone
(sent May 1, 2009)
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