In this issue:
General News | Featured Tool | College Planning | Who's Who | Financial Aid
Scholarships & Other Aid Opportunities | Financial Literacy | Student Loan Management | Calendar
General News
Don't Get Swindled by Scary Scams
Despite heightened awareness from media attention, millions of consumers fall victim to money-stealing scams every year. This fall, guard your money so that you can reap financial treats and avoid costly tricks. Beware of the following scary schemes and remember there are many more out there.
- Check overpayment scams. This con generally targets consumers who sell items through classified ads or online auctions. The scam begins when the buyer replies to an ad and offers to purchase the item with a check. The buyer comes up with a reason for writing the check for more than the purchase price, and asks the seller to wire back the difference. Later, the check bounces, leaving the seller liable for the entire amount. To avoid this rip-off, refuse to accept any checks for more than the asking price and never agree to wire funds back to the buyer.
- Fake charities. Charitable giving tends to thrive as the holidays approach. Unfortunately, so do scam artists who are willing to take advantage of the kindness of others. To ensure your gifts truly go to those in need, check nonprofit monitoring websites like Guidestar.org or CharityNavigator.org.
- Jury duty scam. In this tricky scheme, someone claiming to work for the local court calls to inform victims that they've failed to report for jury duty and a warrant has been issued for their arrest. The caller then asks for the victims' personal identifying information, like Social Security numbers, birth dates and sometimes financial information, for "verification" purposes. This scam plays on the victim's fear of going to jail, so stay on-guard and remember that court employees won't call you to verify your information. If in doubt, hang up and call the courthouse using the number listed in the phone book or on their website.
- Mortgage modification scams. These scams prey on homeowners who are on the brink of foreclosure. Though the federal government created programs and authorized agents to counsel homeowners through the process, unauthorized companies and individuals have gained the trust of vulnerable homeowners while scamming them out of their money. To avoid being victimized, homeowners should visit MakingHomesAffordable.gov or call 1.888.995.HOPE for more information about mortgage loan modification options and other available programs.
To learn more about protecting yourself from common scams and schemes, browse the Federal Trade Commission's Scam Alerts webpage at Consumer.FTC.Gov/Scam-Alerts.
Thank You, Access360 Allies!
Thank you to all the partners and allies that attended Access360 on Sept. 23-24. We hope you learned new things, connected with new partners and found inspiration to continue driving your important work for Oklahoma students.
We're also grateful for the partners and keynote speakers who shared their knowledge and expertise in our learning sessions. In the coming weeks, session presentations will be made available on the conference website, Access360Conference.org.
Be sure to follow @OKAccess360 on Twitter so you continue to receive conference updates, including feedback opportunities, calls-for-sessions and event notifications throughout the year.
Here are a few highlights from the conference. Can't wait to see you next year!
Featured Tool
Featured Tool: Your Transition to College Brochure
You've invested a lot of time and energy to support the high school students you serve, especially juniors and seniors. You've helped them enroll in the right classes, made sure their grades are on track, reminded them to take the ACT, encouraged them to finish high school and helped prepare them to enter the next phase of their education—college.
As you know, seniors have a tendency to put off college planning and focus on the prom, senior trip and other activities. Juniors often postpone college prep, believing they have one more year before they need to start really planning for life after high school. However, as you and I know very well, both juniors and seniors have a lot to do to prepare for their future.
To assist you in counseling your students through this period, UCanGo2 is proud to introduce our most recent tool, the Your Transition to College brochure. With the help of this new publication, you can provide tips and information to guide your juniors and seniors through a smooth transition from high school to college. The brochure outlines vital college preparation steps, including FAFSA completion and ACT information, as well as a high school and college comparison chart and tips for success in a college environment.
Remember, many of your students are attending college fairs across the state this time of year, and they're beginning to experience what life will hold after high school. Use this unique opportunity to help your students prepare to transition from high school to college. Download the Your Transition to College brochure and share it with your juniors and seniors. While visiting UCanGo2.org, check out our other college planning publications and use our order form to request additional copies for your students (supplies are free; quantities may be limited).
Who's Who
Do You Know Brent Rempe?
Meet Brent Rempe, the job club coordinator for the Union Public Schools Carrera Program.
What is the Carrera Program?
The Carrera Program serves "at-promise" students, the majority of whom are low-income and minority students typically classified as at-risk, who could benefit from wrap-around services. The program began in November 2011 with 220 sixth graders. Currently, it serves 20 percent of Union's sixth through eighth grade population.The services the Carrera Program offers include:
- Power Group and mental healthcare
- Medical, dental, and vision screenings and referrals
- Family life and sexuality education
- Lifetime sports
- Self-expression
- Education enrichment and remedial support
- Job Club
What is your role within the program?
As the job club coordinator, I facilitate financial education, entrepreneurship experiences (writing age-appropriate business plans, helping students run lemonade stands or sell arts and crafts, etc.) and college and career exploration activities including guest speakers, college and job site visits, job shadowing, etc.How is financial education emphasized within the program?
Financial literacy is the foundation of Job Club. All Carrera students start a savings account at Tulsa Teachers Credit Union and earn a stipend for attending Job Club. Currently, the 2018 and 2019 classes have aggregately saved over $46,000 and the majority of students have not withdrawn funds earned during Job Club participation. Before students open savings accounts, they complete a unit on savings and banking basics. Financial literacy is also reinforced repeatedly through the different curricula used in Job Club through topics like running a business and funding a college education.What do you want your students and their families to learn overall?
I strongly believe that the curriculum I teach is a change agent and can help end the cycle of poverty. I want my students to learn how to manage their finances, how to think entrepreneurially and innovatively, and how to discover and explore careers they never considered before. I hope topics in class spark discussions at home and encourage parents to learn more about financial literacy, entrepreneurship, and college and career readiness. My hope is that after seven years of teaching, I can be a long-term mentor and resource for my students in their college education, careers and lives.If a school or organization is interested in implementing the Carrera Program, who can they contact for more information?
Substantial fundraising and grants are necessary to replicate and sustain the program. For more information, please direct questions to Alice Blue at the Community Service Council of Greater Tulsa, who serves as the Fidelity Manager for the Carrera Program at Union Public Schools. She can be reached at 918.699.4222 or ablue@csctulsa.org.
College Planning
OK-CAN Workshop: Understanding Today's Teens
From the options given below, which announcement do you think would be more likely to resonate with the teens you serve?
Option 1:
Attention students: Let your shoes do the walking to the cafeteria today, where there will be an informative session about joining the student council. Encourage your fellow classmates to attend and bring a notepad and pencil to jot down important information. It's free to join and you don't want to miss this opportunity to be a school leader. Light snacks and punch will be provided.Option 2:
What’s up?! Bounce over to the cafeteria today for a quick chat about getting down with the student council. Bring your BFFs and take notes; you don't want to miss this chance to make a difference in the school. Besides, it's free to join and there's snacks and punch at the meeting. l8ter!
If both options seem a little odd to you, then you're not alone. It's no secret, communicating with teens in "their" way is a challenge as old as time. Classroom instructors compete with electronic gadgets, disrespectful or unruly students and linguistic barriers in their efforts to deliver important lessons or messages. And to complicate matters more, by the time you think you "get it," it's already changed again!
OK-CAN's next professional development workshop, titled "Understanding Today's Teens," will be held Oct. 29, 10 a.m.-4 p.m. at Tulsa Community College's Northeast campus. Three experienced OK-CAN members will lead the conversation and share ideas and strategies for engaging students.
Registration is open and free for OK-CAN members. If you're not an OK-CAN member and want to join so you can participate in this and other workshops, we'd love to have you! Seating is limited so sign up today!
C YA :)
Financial Aid
2013 OASFAA Decentralized Training
The Oklahoma Association of Financial Aid Administrators (OASFAA) will hold the annual Decentralized Training Oct. 24 at Tulsa Community College's Northeast campus. The morning session, Compliance and Campus Collaboration - R2T4, is designed to help ensure compliance with the return of Title IV regulations, including understanding the challenges when working with modules, understanding the positive effects of campus collaboration, and providing opportunities to exchange best practice tips with colleagues. The afternoon session will provide high-level organizational alignment training, and will include material about strategic planning, process improvement, staff development and staff evaluation.
More information, including registration instructions, will be available soon on the OASFAA website, www.oasfaaok.com
What's New on IFAP?
E-nnouncements
General
- September 13 — Introducing Reach FSA - a simplified way for the financial aid community to access Federal Student Aid (FSA) School Contact Centers
Loans
- September 16 — FY 2011 2-Year Official Cohort Default Rates Distributed September 16, 2013
- September 13 — Interest Rate Information on the Direct Loan Master Promissory Notes and TEACH Grant Agreement to Serve
- September 6 — Loan Servicing Information - Direct Loan Servicing Center (ACS) Transfer Completion and Availability Information
- August 30 — 150% Direct Subsidized Loan Limit: EA #3 - Prorating Subsidized Usage Periods Based on Enrollment Status for the 2013-2014 Year
Common Manual Update
The latest version of the Integrated Common Manual is available on the Common Manual website. (external class) As always, if you have questions about the manual, contact our Compliance department at 405.234.4432, 800.247.0420 (toll free) or pct@ocap.org.
Scholarships and Other Aid Opportunities
What would you do if your school was overrun by zombies?! Students who explain what they'd do in an essay of 250 words or less could be awarded $1,500 in the Zombie Apocalypse Scholarship contest. Applicants must be 13 years or older and legal residents of the 50 United States, and must enroll in an accredited postsecondary higher education institution no later than fall 2019. Click here to learn more about the scholarship and essay requirements.
Financial Literacy
Ask the Expert: The "Do's" and "Don'ts" of College Money Management
Oklahoma's college students are back in school and back in the swing of academics, sports and fun with friends. With all the excitement and distractions, it's easy for students to lose focus on their finances. Below are some tips you can use to help the students you serve make money management a priority today and position themselves for continued financial success tomorrow.
DO: Create a Plan
Encourage students to create a budget or spending plan. When people hear the word "budget," they tend to want to run. However, creating a spending plan allows students to take control of their money and develop strategies to increase or decrease spending as needed. Show students that a budget or spending plan is like a class syllabus: the syllabus is a semester-long plan with detailed benchmarks for passing a class. A budget is a life-long money management plan with benchmarks for reaching financial goals.DON'T: Build an Inflexible Budget
Every spending plan should be flexible enough to accommodate unexpected opportunities and challenges. A budget that's doesn't make room for fun is nearly impossible to maintain. Show students that establishing a realistic spending plan gives them financial control before unexpected events - both good and bad - occur.DO: Save Money
Show students the benefits of saving money. A little can go a long way; in fact, saving even a few dollars a week will help when those unexpected incidents pop up.DON'T: Forget to Establish Saving Goals
Remind students that all efforts to save money should have a clear purpose. Students need a concrete reason to save to stay the course and avoid overspending. Whether they're saving for a new car, special trip or to handle the unexpected speeding ticket, giving every dollar a name helps students keep their eyes on the prize.DO: Understand Personal Credit Scores and Reports
Show students the importance of credit management. Credit reports are not easily repaired once the damage is done, and can impact students long after graduation. Explain that the choices they make now can affect them positively or negatively later in life. Good credit scores are the result of careful money management, so it's important for students to understand how credit works. For more information, share MyFICO's Credit Basics website with your students and direct them to AnnualCreditReport.com to request a free credit report from the top three credit bureaus.DON'T: Allow Credit to Falter
Good credit isn't only important for securing a low interest rate on a car or house. It's also a factor in determining candidacy for small business loans and employment opportunities after graduation. A recent report stated that even social media connections can alter credit scores. Show students that credit scores are often the bottom line when it comes to finances. To lenders and collectors, a credit score alone often determines if an individual is a good risk or a bad one.Bonus DO: Take Advantage of Discounts
Many businesses on and off campus offer student discounts for products or services. Encourage students to ask about discounts and remind them to carry school identification as proof of their student status.
For more money tips for college students, visit OKMM's "Money Management for College Students" learning module.
Student Loan Management
Autumn: The Playoff Season for Paying-Off Student Loans
Fall is finally here and your 2013 spring graduates are relishing their newfound freedom from tests and homework while soaking up the promise of cooler climates and football fanfare. With that newfound freedom comes more responsibility. Student loan repayment is just around the corner, as the six-month grace period for May graduates ends in November. In a way, this is the playoff season for graduates entering repayment; the moves they make now will determine if they reach their ultimate goal of full repayment, the Lombardi Trophy of student loans.
Fortunately, your graduates don't need a star quaterback to successfully establish a repayment plan that suits their financial needs. We've created a "playbook" of repayment options you can use to help your students successfully manage student loan debt. Unlike most playbooks, this one isn't secret; it's meant to be shared. Feel free to share this information with your recent graduates via email and social media.
Basic Plays
These common repayment plans are available to borrowers with Federal Family Education Loans (FFEL) and/or Direct Loans.
Standard Repayment
The "inside run" of repayment plan options; the borrower makes monthly payments on a 10-year repayment term.Graduated Repayment
The "forward pass" of repayment plan options; monthly payments start out low and increase gradually over time within a 10-year repayment term.Extended Repayment
A "play-action pass" repayment plan option; available to borrowers with at least $30,000 in loans. Borrowers can choose either standard or graduated repayment with up to a 25-year repayment term.
Special Plays
The following repayment plans have slightly more specific requirements and are available to borrowers with FFEL and/or Direct Loans.
Income-Sensitive Repayment
Available for FFEL borrowers only, this "sweep" monthly payment plan is based on gross monthly income; the monthly payment must cover accruing interest and the payment plan must be renewed each year.Income-Contingent Repayment
With monthly payments adjusted annually based on income, this "triple option run" repayment plan is determined by annual income, family size and total loan balance, and is only available for Direct Loan borrowers. The maximum repayment term is 25 years. Any loan amount that remains after 25 years of payments will be forgiven.Income-Based Repayment
This repayment plan is available to borrowers experiencing partial financial hardship. Monthly payments are adjusted annually based on changes in income and family size. The maximum repayment term is 25 years. Any loan amount that remains after 25 years of payments will be forgiven.Pay as You Earn
As the "reverse" play of repayment plan, this option is available for Direct Loan borrowers only. The borrower must have partial financial hardship and monthly payments are adjusted annually based on income and family size. Payments are set at up to 10 percent of the borrower's discretionary income and are capped at the standard repayment plan interest rate. The maximum repayment term is 20 years. Any loan amount that remains after 20 years of payments will be forgiven.
If your student gets a personal foul by defaulting on a loan, he or she may consider loan rehabilitation to get back in the game. Not only can this help the student in the long run, but if the student defaults and rehabilitates the loan(s) in the same cohort period, the default won't show up in your school's cohort rate.
For more information about repayment plans and other aspects of the life of a student loan, check out ReadySetRepay.org.
Do You Need a Default Prevention Plan?
Is your cohort default rate higher than you would like it to be? If so, you may need a plan. A Default Prevention Plan (DPP) is an important tool for institutions working to lower their cohort default rate (CDR). All institutions can benefit from developing a written plan, and any institution whose CDR is above 30 percent is required by regulation to develop and follow a DPP. These schools must also submit a copy of their plan to the Department of Education and review their plan at least once each year.
Typical DPPs address issues such as developing a default prevention task force, loan counseling, financial literacy, enrollment reporting, and both early and late stage delinquency assistance strategies. A good plan should also include an analysis of the institution's cohort borrowers. It's vital for an institution to know which students are at high risk of default in order to address those borrowers' needs. A plan must also define measurable goals to be used to track progress.
OCAP offers on-site consulting services at no charge to Oklahoma schools who are interested in developing a comprehensive DPP. We can perform a cohort analysis to help you determine which of your students are defaulting on their loans, and we have print and electronic resources available to support your efforts to help students make smart borrowing decisions and successfully manage repayment. If you already have a plan we can help you analyze the effectiveness of your initiatives.
If you're interested in exploring how OCAP's products and services can help your campus reach its default prevention goals, contact Scott DeBoard at 405.234.4233 or sdeboard@ocap.org or visit ReadySetRepay.org.
Calendar
- Nelnet's Webinar Wednesday series (external link)
- OK-CAN Workshop: Understanding Today's Teens — Oct. 29
- Financial Education in Oklahoma Conference — Nov. 6
- Veteran's Day (OCAP open) — Nov. 11
- GEAR UP College Application Week — Nov. 18-22
- Thanksgiving (OCAP closed) — Nov. 27-28
- Christmas holidays (OCAP closed) — Dec. 24-25