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
Access360 is Almost Here!
Access360: Allies in Higher Education, OCAP and GEAR UP's Annual Conference set for Sept. 23-24 at the Embassy Suites Hotel and Conference Center in Norman, is rapidly approaching. We're busy lining up a slate of informative and inspirational speakers to help you make the most of your time at the conference.
Monday, Sept. 23, will focus on college access and financial literacy. Sessions topics include an overview of student aid programs and the application process (NASFAA Core sessions), Oklahoma’s Promise, FAFSA basics, keeping students’ attention when teaching about money, understanding a holistic admissions process and much more. Attendees will hear from Chancellor Glen D. Johnson of the Oklahoma State Regents for Higher Education. As our keynote speaker, Chancellor Johnson will provide an update on key initiatives of the state higher education system during our luncheon.
We've also lined up exciting entertainment for Monday evening: an exclusive showing of the documentary First Generation at 4:30 p.m. Narrated by Golden Globe nominee Blair Underwood, First Generation tells the story of four high school students – an inner city athlete, a small town waitress, a Samoan warrior dancer, and the daughter of migrant field workers – who set out to break the cycle of poverty and bring hope to their families and communities by pursuing a college education. This showing is open to the public and conference registration is not required to attend.
Tuesday, Sept. 24, will focus on financial aid and financial literacy. Attendees will enjoy sessions covering cohort rates, challenges and appeals, customizing financial literacy messages, maximizing social media efforts, repayment options and more. Joining us for lunch will be keynote speaker Justin Draeger, President of the National Association of Student Financial Aid Administrators. Draeger will give us a national overview of the financial aid industry and provide key insights on the messages we should communicate to students about how to pay for college.
These are just a few reasons you won't want to miss Access360. Registration is still open and the conference is free, so register today. For more updates on speakers, sessions and details, visit Access360Conference.org, check out the conference agenda and follow us on Twitter @OKAccess360. We look forward to seeing you there!
Families Encouraged to Save in September
As the official College Savings Month, September is the prime time for families to kick-start their college savings plan. Education beyond high school has always been a worthwhile investment, but now it's more important than ever. According to the Lumina Foundation, 65 percent of U.S. jobs will require some form of postsecondary education by 2020.
To help maximize saving efforts, we encourage families to explore a variety of savings vehicles. Consider these options to start saving right away.
- Oklahoma's 529 College Savings Plan. Contributions to this savings plan grow tax-free, are state tax deductible up to a certain level and may be payroll deducted by your employer. There is no income requirement to participate, the plan includes several investment options and participants have the opportunity to transfer saved funds to another eligible beneficiary if a child decides not to attend a postsecondary institution. The money saved can be used at schools nationwide to pay qualified expenses (tuition, fees, books and anything else that the school or the Internal Revenue Service (IRS) deems necessary to attend that institution). To learn more or enroll, visit Ok4Saving.org.
- Coverdell Education Savings Account (ESA). An ESA is a trust or custodial account created to help families pay for elementary, secondary and college education expenses. While contributions aren't tax deductible, they do grow tax-free until distributed. Distributed funds are tax-free when used for qualified educational expenses such as tuition, fees or required books and equipment. The amount you can contribute is determined by your income level and the funds must be used by the time your child turns 30 or the earnings become taxable and a penalty is applied. Visit SavingForCollege.com to learn more about ESA options.
- Gerber Life College Plan. The Gerber Life College Plan includes an insurance policy and a college saving plan. Families who contribute to this savings plan agree to make fixed monthly payments for a set length of time and in return, receive a guaranteed cash payout once the account has reached maturity. Funds saved can be used for any purpose, not just your child's education. Because this plan includes a life insurance policy, the application asks for health related information, which could result in exclusions and limitations. Visit GerberLife.com to learn more.
Remember, it's never too early to teach children the value of saving. Encourage your child to put a portion of any allowance or gift money into a savings account. Not only will this practice help your family build a college fund, it can also help your child develop healthy savings habits that can support a lifetime of financial success.
Featured Tool
Featured Tool: UCanGo2's 2013-14 Counselor Toolkits
Have you noticed the excitement filling the air as students shop for new notebooks, backpacks, planners and other school supplies? Counselors and teachers, here's a reason for you to get just as excited - you can expect to see UCanGo2's 2013-14 Counselor Toolkits (high school and middle school versions) on your doorstep in just a few weeks!
Kit highlights include:
- Student Workbooks and accompanying Instructor Guides.
- New and improved publications to facilitate college planning.
- Resources to educate families about paying for college.
- Educational games and activities.
- A CD loaded with tools for counselors, students and their parents.
If you've received a kit in the past and your contact information hasn't changed, you'll automatically receive a new kit. However, if you've never received a kit or need to change your mailing address, visit the counselor page at UCanGo2.org and click the applicable "Order a Free Counselor Kit" button. Be sure to share this information with your colleagues so they can order a kit, too.
Who's Who
Do You Know Consuelo Kickbusch?
Do you know Lt. Col. Consuelo Castillo Kickbusch, founder of Educational Achievement Services, Inc. and the highest-ranking Hispanic woman in the U.S. Army Combat Support Field?
What challenges have you faced in pursuing a college education?
I work extensively with students across the country and all too often, especially with first generation students, "You simply don't know what you don't know." A college could be nearby and may offer a wealth of support. But many young people, often blinded by innocent ignorance, believe college is unattainable. I believe another major factor is not having a vision early in your life and preparing yourself to realize that vision.
In my personal experience, cultural implications can be another obstacle. My parents were quite concerned about what I would become after leaving "la familia" to go to this strange place that they could not relate to. I had to take a courageous stand against my own mother's wish, with the support of my father, to seek higher education. I faced an emotional decision about whether or not to go work to help my parents, who desperately needed the financial support, or to spend several years pursuing an education. This is a battle that still exists for many students today. How do you reconcile and prioritize the very strong reality of an economic need and the wish to better yourself?
I also faced the obstacle of feeling so isolated and finding myself in a different culture, a different environment and believing that's where I belonged.
How do your experiences and background help you inspire future leaders?
I consider myself a servant leader—I serve others first. My ideology, along with my transparency and authenticity, inspires many who listen to my story of struggle, discrimination and illiteracy to believe that in whatever obstacles they are experiencing, hope still exists.
I feel that leaders sometimes begin their stories from the point of their success. I start from the point of my failures, hurt and pain to illustrate the transition of what it took to create my current success. I do think, at least through talking to many who've heard me speak, that when they truly thought there was no way out of the dismal situation, my whole story serves as a testament of the American dream in reality. I believe that many students want to hear the whole journey and not just from the point of success.
I talk about getting to know your soul and I speak of the dark times as well as the bright days. When students hear both dimensions, they begin to feel hopeful and recognize that even in the dark phases, "it too shall pass," as long as they have a vision and passion for what they want to do in life.
If you could give teachers, counselors and mentors one piece of advice for encouraging young people to go to college, what would you say?
First, listen to your students' stories, and then take it from there. I think too often we start from the point of informing and we miss the opportunity to create possibilities based on what we've heard.
After you listen to a student, then you can find the best point of departure.
Lt. Col. Kickbusch will be attending our upcoming conference, Access360: Allies in Higher Education conference, Sept. 23-24 at the Embassy Suites Hotel and Conference Center in Norman. Click here for more information about the conference.
College Planning
From Cradle to College: Preparing Future Graduates From Their First Steps
It's never too early to start preparing a child for a successful future. Those little bundles of joy grow up fast and their path to academic success is built along the way as they develop the skills and habits required to become successful adults.
Bringing up college-ready children means making sure their social, emotional and educational experiences are positive and productive - and that going to college is an aspiration and expectation supported by the family. Proper development and preparation from early childhood through school days is important for every child. We know that a parent's time, attention and love assure their children are safe and ready to succeed. With all the theories out there about how best to raise children, where can parents go for trustworthy information about generating a college-going culture in the home? That's where UCanGo2 can help.
In partnership with early childhood experts Smart Start Oklahoma, UCanGo2 offers a parent's guide to successful college planning from early childhood through grade school. The guide, From Cradle to College, provides valuable tips and tools for parents of children of all ages, including early childhood development tools, goal-setting techniques, tips for talking about college and information about paying for college.
Raising a child who's prepared to learn and grow is a lifelong effort and a rewarding journey for both parent and child. From Cradle to College empowers parents of young children to build a solid foundation for planning, preparing and paying for college from birth. If you're a counselor who knows parents with young children or a community partner who works with young families, visit UCanGo2.org/resources or call 866.443.7420 to order copies of From Cradle to College. We are currently updating this publication and the new version will be availble soon.
Financial Aid
Notice of Proposed Rulemaking (NPRM) Issued
On July 29, 2013, the U.S. Department of Education (ED) issued an NPRM proposing to amend the Student Assistance General Provisions and provisions for the Title IV loan programs.
Briefly, the NPRM proposes to:
- Raise the participation rate index ceiling for three-year cohort default rates more than 40 percent.
- Clarify and modify regulations regarding the rehabilitation of defaulted Title IV loans.
- Amend and align the administrative wage garnishment (AWG) rules regarding requests for hearings, the use of third-party servicers or collection contractors, limitations on the AWG amount, and to allow for the suspension of AWG after the borrower has made five qualifying rehabilitation payments.
- Extend the eligibility for Closed School Discharge to students who withdrew from a school no more than 120 days prior to its closure.
- Modify forbearance rules.
- Modify Perkins Loan deferment and cancellation regulations.
- Eliminate obsolete provisions.
- Replace cross-references to Federal Family Education Loan Program (FFELP) regulations within the Direct Loan provisions with detailed regulations.
- Modify the Direct Loan exception to the minimum loan period requirement.
- Revise Direct Loan provisions to reflect the SAFRA Act of 2010 and other recent statutory changes.
The comment period closed August 28.
What's New on IFAP?
Dear Colleague Letters (DCLs)
E-nnouncements
General
- August 23 — President Obama's Plan for College Affordability
- August 1 — 2013 FSA Training Conference for Financial Aid Professionals
Loans
- August 20 — Default Rates for Cohort Years 2006-2010
- August 16 — Direct Loan Servicing Center (ACS) Transfer Update and Closure Plan
- August 13 — Update to Direct PLUS Loan Reconsideration Process
- August 9 — Update on Direct Loan Interest Rates Effective July 1, 2013
- August 2 — Resolution of NSLDS Loan Exit Counseling Completion Reports Issue
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
Have you heard about Project Finish Line? The Central Oklahoma Workforce Investment Board currently provides educational grants to residents in four central Oklahoma counties who are within 15 hours of earning their college certificate, associate or bachelor's degree. Because this is a grant, money awarded through Project Finish Line doesn't have to be repaid. The grant covers tuition, fees and text books.
Who's eligible? Grant applicants must be:
- At least 18 years of age.
- Eligible to work in the United States.
- A resident of Canadian, Cleveland, Logan or Oklahoma County.
- Within 15 hours of earning their college certificate, associate or bachelor's degree.
Want to learn more? Visit the Project Finish Line page on the Oklahoma State Regents for Higher Education website.
Financial Literacy
Dinner on a Dime
Eating out can be fun and convenient, but the costs can put a dent in almost any budget. While limiting restaurant meals is a smart financial move for everyone, we recognize that sometimes eating out can be a necessity for busy families. To help soften the budget blow, here are some tips to minimize the cost of dining out.
- Order from the children's or appetizer menu. These varied menu options offer all the flavor for half the cost. As a health bonus, there's built-in portion control.
- Nix the extras. Desserts and fancy drinks can really drain your dining budget. If you're craving a treat, enjoy it at home where it's cheaper to make your own.
- Look for coupons and specials. Restaurants often offer coupons and discounts to entice you to visit. Although the Internet has made finding coupons a bit easier, don't forget to check direct-mail circulars or your newspaper for additional money-saving specials. Also, some restaurants provide free meals for kids up to a certain age, buy-one-get-one-free deals, and/or "early bird" specials. Take advantage by planning your schedule around those options when you can.
- Snack first. It may seem that snacking would defeat the purpose of eating out, but if you eat a bit beforehand, you won't be quite as hungry and may order less.
- Eat half now, save half for later. If your entrée is more food than you should eat in one meal, eat half at the restaurant and save the other half for lunch or dinner the next day. That's good for your wallet and your waistline!
- Use gift cards to save. If your birthday or anniversary is coming up soon, ask for gift cards to your favorite restaurants. Eating cheap is great, but eating free is even better!
Student Loan Management
The Benefits of Paying Student Loan Interest While In School
Every semester, students take out loans to help pay educational expenses throughout the school year. Without these loans, many students wouldn't have the funds to continue their education. Generally, the last thing on their minds is repaying any portion of their loans before they absolutely have to do so. However, interest payments on student loans are generally affordable on a college budget, and those small payments can make a big difference in the amount repaid over the life of a loan.
What would happen to students' repayment schedules over time if they paid the interest on their education loans while they were still in school? Let's take a look at Jim and Jane.
Jim and Jane met at Iwanna Job University in a freshman English class. They hit it off, and before long, Jim and Jane planned to marry after graduation. Jim and Jane started discussing how they'd join lifestyles and combine belongings such as furniture, kitchenware, pets and finances. As they talked about their student debt, Jim and Jane discovered that while they'd both borrowed $25,000 ($3,125 unsubsidized each semester for 8 semesters at 6.8 percent interest), Jim's loan balance of $29,462.50 was higher than Jane's balance of $25,000. Why? Jane paid her interest expenses each month during school.
How did Jane's regular interest payments affect her loan repayment as compared to Jim's?
- Because it wasn't paid in advance, the interest on Jim's student loan was capitalized into the original amount he borrowed. This means that Jim effectively borrowed $29,462.50.
- Jim's monthly payment under the standard repayment plan is $339.06, while Jane's monthly payment is $287.70. Jane's payment is over $50 less each month!
- Jane's total repayment (including her in-school interest payments) will be $38,579.31, while Jim's total repayment will be $40,686.65, a difference of more than $2,100.
(Standard Loan Repayment Calculations made using FSA's student loan repayment website.)
Here's the bottom line: Jim and Jane borrowed the same amount in student loans, but by making interest payments while she was in school, Jane reduced both the total amount repaid and her monthly payment over the life of her loan. For more information about smart borrowing and successful loan repayment, check out ReadySetRepay.org.
Calendar
- Nelnet's Webinar Wednesday series (external link)
- Fundamentals of Federal Student Aid Administration Training Workshops (external class)— October 2012-September 2013
- NCAN Conference — September 16-18
- Constitution and Citizenship Day — September 17
- Access360 Conference — September 23-24
- Financial Education in Oklahoma Conference — November 6
- Veteran's Day (OCAP open) — November 11
- GEAR UP College Application Week — November 18-22