ISAC Update
 Illinois Student Assistance Commission  1755 Lake Cook Road   Deerfield, IL 60015-5209   847-948-8500
August 29, 2002
Volume 20, No. 4IGSL, 4B

Inside This Issue...
 


Default Prevention Materials - Order Now for Fall

With the new school year fast approaching - or, in some cases, already underway - new student orientation and entrance counseling sessions will soon be held at colleges and universities across Illinois. Now is the time for schools and lenders/servicers to replenish their supply of Default Prevention Outreach materials, so that these resources will be available when educating first-time student loan borrowers about their rights and responsibilities.

ISAC’s Student Loan Default Prevention Outreach Program is designed to keep students from becoming delinquent and defaulting on their student loans. Materials specifically designed for FFELP student borrowers who are in the “at-risk” category for defaulting are available for order. “At-risk” students may include first-generation college students, students from low-income families, and students who leave college before graduating. ISAC is able to provide these outreach materials through the use of federal funding specifically earmarked for default prevention and reduction activities.

To refresh your memory, the following is a list of available default prevention materials.

Last spring, packets with sample Student Loan Default Prevention Outreach Program materials were mailed to Financial Aid Directors at postsecondary schools in Illinois. Postage paid order forms to request additional materials for default prevention were included inside the program brochure contained in that mailing.

Now is the time to place orders for materials that will be needed during the academic year. All materials will be sent free of charge. To place your order use the prepaid order postcard included in the mailing, call us at 800-899-ISAC (4722), or e-mail us at cssupport@isac.org.

When educating your students regarding their loans, remind them that default prevention information can be accessed at ISAC OnLine (select the “Default Prevention” button at www.isac-online.org). ISAC OnLine also provides a link to the Mapping Your Future Web site, where student loan counseling services are available.

Personal Finance Education - On-Site, One-Hour Seminars

In addition to the above-referenced materials, ISAC’s Default Prevention Outreach staff is pleased to offer a new on-site Personal Finance Education seminar at your campus. The hour-long seminar is both informative and interactive, and uses a “Personal Finance 101” approach to teach students the basics of managing their finances. The PowerPoint presentation and the “talking points” used during the seminar are available for download at ISAC OnLine. To access these materials, go to www.isac-online.org, click on the “FAAs” button, and then select the “Downloadable Publications & Presentations” link. Scroll down to the “Available PowerPoint Presentations” section, and then choose Personal Finance Education.

If you would like to host a Personal Finance Education seminar on your campus, or to discuss other ways that ISAC can assist your institution with Cohort Default Rate reduction programs, please call Tom Cox, extension 3706, at ISAC’s toll-free number. Top of Page


Students Begin Using College Illinois! Prepaid Tuition Benefits

As the fall semester begins, some students whose families participate in the College Illinois! prepaid tuition program will begin using their program benefits. Students who are eligible to use benefits were sent an information package instructing them to notify their school's billing office of their intention to use College Illinois! for tuition and mandatory fees. Contact information, billing instructions and sample invoices have been provided to the business offices at MAP-eligible schools. In addition, many of the larger schools in Illinois have access to on-line student information that allows them to search, view, and download specific eligibility records.

If the student is attending a public university or community college in Illinois, College Illinois! will pay the in-state or in-district tuition and mandatory fees covered by the prepaid tuition plan. Since the amount paid to private or out-of-state schools is based on the current mean-weighted tuition at the Illinois public institutions, College Illinois! determines a payout amount for each school year, depending on the type of prepaid tuition plan. Specific payment amounts to private or out-of-state institutions for the 2002-03 school year are:

Public University Plan:
Average tuition rate per credit hour (semester hour): $131.83
Mandatory fee rate per credit hour (semester hour): $44.77
Average tuition rate per credit hour (quarter hour): $87.93
Mandatory fee rate per credit hour (quarter hour): $29.86

Community College Plan:
Average tuition rate per credit hour (semester hour): $55.03
Mandatory fee rate per credit hour (semester hour): $5.97
Average tuition rate per credit hour (quarter hour): $36.70
Mandatory fee rate per credit hour (quarter hour): $3.98

If a student intends to use College Illinois! benefits but the business office at your school is unsure how to request payment from the program, please contact a College Illinois! Customer Service Representative at 877-877-3724, option 2. The representative will provide you with the specific information you need to verify a student's eligibility and submit an invoice for payment. Questions regarding how College Illinois! may affect a student's financial aid package should be directed to a Client Services Representative at ISAC's toll-free number. Top of Page


State Legislative Update Available on ISAC OnLine

On Friday, August 23rd, Governor Ryan signed the final pending bill of interest to ISAC's clients from this spring's legislative session. House Bill 4912 expands ISAC's Teacher Education Scholarship Programs and renames the David A. DeBolt Teacher Shortage Scholarship Program to the ITEACH Teacher Shortage Scholarship Program. In addition, eligibility for both ITEACH and the Minority Teachers of Illinois (MTI) Scholarship Program has been expanded to include freshman students. In a move to maintain consistency between the two programs, graduate students are now eligible for MTI and students are now required to only be enrolled at least half time rather than full time. These changes are effective January 1, 2003, for the 2003-04 academic year.

Now that all bills have been finalized and approved into law, a final State Legislative Update including information on all higher education-related bills is available on ISAC OnLine at www.isac-online.org. Click on the "FAAs" link and access the State Legislative Update.

If you have any questions regarding changes to ISAC's programs as a result of this legislative session, please contact your Client Services Representative via e-mail at cssupport@isac.org or through our toll-free number. Top of Page


Commission Adopts ISAC Rules Amendments Effective July 1, 2002

As previously announced, the Commission adopted agency administrative rules amendments for the 2002-2003 academic year, with an effective date of July 1, 2002, at its June 14th meeting. The final rules were published in the July 5, 2002 Illinois Register (Vol. 26, Issue 27).

The agency's administrative rules amendments, originally published for public comment in the January 25, 2002 Illinois Register, were proposed by staff in order to respond to market changes and client suggestions, to implement state and federal statutory amendments, to reflect technological advances in the delivery of financial aid, and to clarify issues that arose during the previous year.

In response to suggestions from staff of the Joint Committee on Administrative Rules (JCAR) and to conform to the Illinois Administrative Procedure Act, technical changes were made to the rules as originally submitted. There were, however, no substantive changes to the proposed rules. The agency administrative rules are available in their entirety for your viewing and printing in the "Downloadable Publications & Presentations" area that can be accessed via the "FAAs" link at ISAC OnLine (www.isac-online.org).

Ordering Paper Copies of the 2002-03 ISAC Rules

A limited number of paper copies of the 2002-03 ISAC administrative rules are now available for order. There are two versions:

Rather than anticipate your institution's preference in regard to receiving the rules, we ask that you complete the attached 2002-03 ISAC Administrative Rules Order Form and indicate which version (all programs or general provisions and loan only) you prefer. Due to the limited quantity and the availability of the rules on the Web site, please limit your requests for hard copy to one per institution.

Please mail or fax the order form to ISAC's Springfield office as indicated on the form. Top of Page


Updated ISAC Publications Available for Order

We are pleased to inform you that updated versions of the following brochures are now available for order. All of these pieces contain information that is pertinent to the 2002-03 academic year. Once you have requested and received your order of updated materials, please review your existing supply of publications and make sure that all outdated versions are discarded.

Revised ISAC publications that are now available for order are:

The Order Form for Postsecondary Schools has been updated to reflect these revised publications, and can be downloaded from ISAC OnLine. The order form on the Web is in PDF format and can be printed from the site, completed, and mailed or faxed to our Deerfield office. To access the form, go to www.isac-online.org and click on the "FAAs" link. Then click on "Downloadable Presentations and Publications," which brings up a list of downloadable items including the order form. Top of Page
Financial Aid Reference Manual Moving Online

Effective in November, Financial Aid Reference Manuals will no longer be printed and distributed at the Fall Seminars for Financial Aid Administrators. Rather, the data historically provided in these manuals will be provided via ISAC's Web site, ISAC OnLine (www.isac-online.org). Moving the reference document to the Internet will allow ISAC to keep it current with the most up-to-date information available at any given time. Rather than having to wait for new chapters to arrive via the mail, all schools will have the ability to access new data at the same time, as soon as it is posted. A side benefit to this change is that seminar participants' load will be lightened by not carrying the manual during the day.

The current plan is for the online manual to be available by early November 2002. Watch future ISAC Updates and Electronic Bulletins for further information. Top of Page


New Web Site Highlights Student Loan Success Stories

Pursuing a higher education can provide a multitude of benefits, not the least of which is helping students obtain the job of their dreams. Many times attending college is made possible by borrowing a student loan; without it the dream may not become a reality.

As a way to bring about awareness of the importance of higher education and how student loans have benefited individual students and society as a whole, a new Web site has been established. Visit www.studentloanfacts.org, where you can see how America benefits from the various federal education loan programs, the value of student loans, and read stories of those who have fulfilled their dreams with the help of a student loan.

The site is updated on a regular basis and provides the latest news in the student loan community, as well as a place for student loan borrowers to share their stories. The site is full of "Fast Facts" and also provides links to the U.S. Department of Education and U.S. House and Senate Committees. Also, as we move into the activities of the 2003-04 reauthorization of the Higher Education Act, relevant links and information will be added to this site.

ISAC has established a link to this site for students/families, schools, and lenders/servicers. From ISAC OnLine, click on the appropriate audience button and then click on the "Links" access button; the site is listed as one of the locations on the Web where we feel viewers can obtain beneficial information.

Be sure to "bookmark" the site so you can visit it often to see the information that has been updated and read the new success stories. With the upcoming reauthorization of the Higher Education Act, a site of this nature should prove very beneficial. Top of Page


September Commission Meeting - Note New Location

The next Commission meeting is scheduled for Friday, September 20th, on the campus of Concordia University in River Forest. Note that this is a different location than was previously announced.

At this point, the tentative agenda includes the following:

Watch future Updates for a summary of the action taken at the meeting. Top of Page
Common Manual Changes

Attached to this Update are the first sets of changes that have been made to the July 2002 version of the Common Manual…Unified Student Loan Policy. The changes deal with a variety of topics, including guarantee reinstatement, default aversion assistance, due diligence activities, definition of curing instrument, glossary updates, the CommonLine network, delivery restrictions, and delayed delivery requirements. We encourage you to review the changes and place them in the appropriate section of your paper manual.

The attached changes have been incorporated into the electronic Integrated Common Manual (ICM). As a reminder, the ICM is updated on a monthly basis incorporating policy changes, such as those attached, as they are approved, making it the most up-to-date source of FFELP policy. ISAC provides a link to the ICM at www.isac-online.org. At the ISAC OnLine homepage, click on the "FAAs" link to bring up the resource material page, which includes the ICM. Top of Page


2002-03 ISAC Scholarship and Grant Update

Award Announcements Made for 2002-03 Teacher Education Scholarship Programs

Award announcements were sent to applicants of the Minority Teachers of Illinois (MTI) Scholarship and DeBolt Teacher Shortage Scholarship (DTSS) programs the week of August 26th. Copies of the eligible and ineligible notifications are also being sent to institutions.

The payment process for these programs will be available in September with the first Payment Rosters for the Fall term being forwarded to institutions ten days after each institution's Fall term start date.

For those schools participating in the Special Education Teacher Tuition Waiver (SETTW) Program, enrollment Verification Rosters are being sent to each institution (with eligible applicants) the week of August 26th.

Reminder Regarding Suspension of Award Announcements

Due to current trends in the number of eligible applicants, ISAC has suspended the announcement of 2002-03 Monetary Award Program (MAP) grants to all students whose initial 2002-03 Free Application for Federal Student Aid (FAFSA) was received by the Central Processing System (CPS) on or after August 13, 2002. This affects new (first-time applicants) and continuing (applied last year) students, regardless of their enrollment status. Schools participating in the MAP Automated Delivery Process (ADP) need to suspend announcements of MAP awards to students whose initial FAFSA receipt date is on or after August 13, 2002.

Records in suspension status are indicated by an Eligibility Code of "S" ("Suspended - indicates student is temporarily suspended from processing due to insufficient funding. Not eligible for payment for any terms") on paper rosters, cartridges, mainframe to mainframe files, and MAPnet.

At this time, it appears as though it will also be necessary to suspend announcements of 2002-03 Illinois Incentive for Access (IIA) awards in the fall. We continue to monitor the program, and will alert you as soon as specific information is available.

2002-03 MAP and IIA Payment Processing

2002-03 MAP and IIA payment processing has begun, and will continue on a daily basis throughout the 2002-03 processing cycle. This applies to both MAP-ADP and roster process schools.

Please remember that MAP and IIA payment requests for any given term are not to be submitted to ISAC earlier than 10 days before the beginning of that term. Once submitted, the status of payments to schools can be tracked through the State of Illinois Comptroller's Web site at www.ioc.state.il.us. Use the "Vendor Payments" area of the site at any time throughout the year to make inquiries about pending payments for MAP, IIA, and ISAC's other scholarship and grant programs.

Continue to Call CASI to Obtain MAP and IIA Award Amounts
Duplicate MAP and IIA Award Announcement Letters No Longer Provided by ISAC

As we try to reduce the amount of paper generated and strive toward more automated processes, please remember that students and Financial Aid Administrators can call the toll-free Client Access for Student Information (CASI) system at 800-899-ISAC to obtain MAP and IIA award amounts. As has been previously communicated, MAP and IIA duplicate letters are no longer being provided by ISAC. Please remind your students of this change, and strongly encourage them to keep the original copy of their MAP and IIA award notification where it is not likely to be lost.

New Service Provided in Response to Client Feedback
Illinois National Guard (ING) Grant Announcement Rosters Now Faxed Weekly

Based on feedback received from the ILASFAA/ISAC Rules and Operations Committee, new ING Announcement Rosters are now being faxed to all public schools in Illinois. The weekly production run of these rosters is scheduled for Thursdays, and a corresponding e-mail message alerts appropriate staff at each school when that week's roster has been faxed. The rosters will continue to be faxed once a week, provided there are applicants for the institution, until the fall term's ING Grant Program Payment Roster is available (after the first term application due date of October 1st has passed).

The rosters cannot be sent as e-mail attachments due to Social Security Numbers (SSNs) being part of the information provided. ISAC is investigating various methods to transmit this type of information, but due to an immediate need, our current plan is to continue faxing the rosters on a weekly basis (again, provided there are applicants for the institution). Rosters are faxed to the ING contact listed within each school's 2002-03 IVG and ING Budget Packet. If there should be a change in that contact name and/or fax phone number, simply respond to the e-mail message received from ISAC. Top of Page


Court of Claims Required for 2001-02 Claims Not Paid to Date

All 2001-02 claims for all scholarship and grant programs received by ISAC through July 31, 2002 have been processed for payment. Any claims requested by schools after July 31st must be submitted through the Illinois Court of Claims process.

The Illinois Court of Claims allows schools and students to seek recourse for unpaid claims at the end of the State's fiscal year lapse period. All correspondence must be written, and filing a claim does not guarantee payment. No filing fee is required. As a reminder, as of July 1, 2000, there is a two-year time limit to file a claim for request of funds {705 ILCS 505/22(h)}.

Attached to this Update is a copy of the latest version of the Court of Claims form used to file an appeal. Please duplicate this form as needed. Also attached is the Court of Claims Multiple Student Request Form and accompanying instructions, to be used when claims must be made for multiple students. Please note that the attached forms are more recent editions than those found in the current Financial Aid Reference Manual. For step-by-step procedures on filing claims with the State of Illinois through the Court of Claims, please refer to the Financial Aid Reference Manual, Chapter 2, page 2-125.

Be sure to read carefully the Court of Claims information provided in Chapter 2 of the Financial Aid Reference Manual, and follow all instructions. Remember that a total of six copies of all forms and supporting documentation must be submitted for each claim. All documentation should be mailed to:

Ellen Schanzle-Haskins
Deputy Clerk
Court of Claims
630 South College Street
Springfield, IL 62756
The Court of Claims will forward the claims to ISAC. To expedite ISAC's approval of the claim, please include a letter explaining why the payment was not requested during the academic year. Include additional documentation if it is necessary to verify that the student(s) is in compliance with all requirements for the program(s) for which the claim is being requested.

If you have any questions, please call the Illinois Court of Claims at (217) 782-7101.

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Questions?
Questions regarding articles in this Update can be directed to our Client Services Representatives at 800-899-ISAC (4722) or through e-mail at cssupport@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.

ISAC disclaims all responsibility and liability for the reader's reliance on information contained in this publication as it may represent only part of the complete guidance on a topic or have been superseded by subsequent publication(s) or changes in State or Federal law.