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October/November
1999 Newsline
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The Louisiana Office of Student Financial Assistance (LOSFA) converted this month to a loan program software that is more streamlined and user-friendly, according to Melanie Amrhein, LOSFA Assistant Executive Director.
"We’re all excited," said Linda Dawkins, Administrator of the Loan Origination Section of Pat Shannon’s Loan Operations Division. "Loan processing under EAGLE I was terminated on Wednesday, October 27 at 5:00 p.m. It was replaced with the updated version, EAGLE II, when the system returned to operations on the morning of Monday, November 1.
"The software Efficient Administration of Guaranteed Loans for Education, or EAGLE I, has been used by LOSFA for the past three years," Dawkins continued. "EAGLE II promises to be much more user-friendly, as navigation through the system has been improved and more on-line assistance is offered."
One of the major problems with EAGLE I, according to Dawkins, was that "it required many overnight processes. Most of these processes will be on-line and real-time in EAGLE II, eliminating overnight processing and saving time for students, schools and lenders."
Two of LOSFA’s new School/Lender Specialists, Kelly Cormier and Jeff Cropco, were trained in Indianapolis, IN, on EAGLE II for two weeks in preparation for training other LOSFA employees. While there, the trainees found that loan professionals from five other state guarantee agencies who had participated in EAGLE II training were very pleased with what they had seen and learned of the system.
"I think EAGLE II is great," Cormier said. "The online ‘Help’ screen on EAGLE II will make it more efficient for even a non-user to access the system. And most of the commands are written in English. This eliminates the need to memorize keys. Partly due to these features, we’re delighted to have completed two weeks of internal training in three days."
Cropco said, "You’re not forced to go through as many menus in the new system. On EAGLE II you are able to maneuver effortlessly through the screens by using the command line, instead of by using different menus for different screens as on the previous system."
He continued, "There are so many things we can do with EAGLE II that were not possible on EAGLE I. It will be easier for us to inquire about loan applications that have been suspended: whether Social Security numbers (SSNs) didn’t match or whether a borrower has reached the maximum amount he can borrow or the reason the application was suspended. This was a long-awaited improvement for our Public Information and Communications Representatives, who need quick answers for loan applicants who call LOSFA seeking the status of their applications.
"Loan requests that did not guarantee were visible only in the app (application) -tracking subsystem on EAGLE I," Cropco added. "On EAGLE II, they can be seen on the general inquiry screens, making it unlikely that they would escape the notice of one of our representatives while handling a phone call. Also," Cropco continued, "EAGLE I listed only two deferment types: 'in-school deferment’ and ‘other.’ In EAGLE II, each deferment is specifically designated as ‘disability,’ ‘working mother,’ or any number of other reasons a loan repayment can be deferred. The status of a Lender’s Request for Assistance (LRA), a Pre-Claim situation previously not displayed, is now shown on the EAGLE II screen."
Collections, administered by Byron Henderson, is another section of Loan Operations that is affected by the EAGLE II conversion. According to Barbara Melton, Henderson’s second-in-command, there will be at least one major change. "On EAGLE I," Melton said, "the process of changing SSNs was completed through a separate system known as Keymaster, which is an overnight process. Now, in most cases, an SSN change will be processed immediately on EAGLE II."
"It will save days," said Linda Williams, a Collections representative. "Using the EAGLE I Keymaster, problems with changing SSNs were not discovered until the following day. With EAGLE II, problems can be detected and corrected immediately, drastically reducing processing time."
Robert Pollage, second-in-command to Lynda Downing, the administrator of LOSFA’s Pre-Claim Section, was also in attendance at the EAGLE II training in Indianapolis. Pollage is hopeful that "EAGLE II will make the system so streamlined for the ‘front end’ (Loan Origination and Loan Processing), that the ‘back end’ (Pre-Claims and Claims) transactions will also move through at a quicker and more productive pace."
Pollage is impressed with EAGLE II. He especially likes the Online Help feature: "At last, a Help Screen that gives valid and useful information! The ‘help’ key can even be used from the command line. From this location, the Help Screen will give all the valid responses there are as well as a description of what these responses will do or cause to happen."
Pollage mentioned another feature of EAGLE II: "If the screen requests that you enter a disbursement number or a loan number, and you don’t know what the number is, there is a key that can be used to retrieve the requested information. Another key can then carry the information back to the original entry screen. This feature eliminates the need for going back and forth between screens, jotting down field information to enter a transaction on a separate screen."
LOSFA is confident that the installation of EAGLE II is a step toward improving its service to clients and colleagues. Any comments or questions on how the system can be used to better serve you may be addressed to one of our School/Lender Specialists at (800) 529-5626, Ext. 7727 for Sigmund Morel or e-mail smorel@osfa.state.la.us; Ext. 7692 for Kelly Cormier or e-mail
kcormier@osfa.state.la.us; or Ext. 1682 for Jeff Cropco or e-mail jcropco@osfa.state.la.us
School/Lender
Specialist Kelly Cormier trains Public Information and
Communications Representative Annette Chelette on EAGLE II.
Newest members of the Louisiana Student Financial Assistance Commission (LASFAC) and the Louisiana Tuition Trust Authority (LATTA) are Patrick J. Gorman and Casie Gravois. Mr. Gorman, who is the Financial Aid Administrator at Louisiana State University Medical School in New Orleans, replaces Ed Chase as the LSU Board of Supervisors Representative. Ms. Gravois replaces Brandi Sonnier as the LAICU Student Representative.
Judy Bracy as been named Assistant Director for Scholarships at the University of New Orleans. She replaces Dinorah Cobos-Mastascuso who has moved into the position of Assistant Director of Computer Systems at UNO. Congratulations, Judy and Dinorah!
Teresa Compton, Director of the Office of Student Financial Aid at Louisiana College, has accepted a position with USAGroup. Kristi Spears, formerly Assistant Director of Financial Aid at Louisiana State University-Shreveport, will move into the director’s position at Louisiana College. Good luck, Teresa and Kristi!
Betty McCrary replaces Ed Chase as Financial Aid Director at Louisiana State University-Shreveport. Ed recently retired. Congratulations, Betty and Ed!
Congratulations to Michelle Darling, who was appointed Public Information and Communications Supervisor within LOSFA! Michelle was formerly a Customer Service Representative.
An elated Jennifer Guhman, below, LOSFA Public Information and Communications Representative, displays flowers received from a flight attendant serving aboard a flight taken by Guhman and her husband while on vacation. From a few words spoken on the flight, Guhman was able to come home and solve a problem the flight attendant’s son was having with TOPS eligibility.
"I feel like these flowers belong to everyone here," Guhman said. "We all solve problems like this on a daily basis."
Louisiana
Schools Lower
Cohort Default Rate
Louisiana colleges and universities have slashed their FY1997 Official Cohort Default Rates to the lowest level in the history of the Guaranteed Student Loan (GSL) program, according to figures recently released by the U.S. Department of Education (ED).
The Cohort Default Rate (CDR) is the percentage of student borrowers from any given school that has ceased repaying education loans within the first two years of repayment. Recent statistics from ED demonstrate that the 109 Louisiana colleges, universities and proprietary schools have lowered their cumulative CDR from 12.8 percent in FY86 to 10.3 percent in FY97.
A school or college can lose its eligibility to participate in guaranteed loan programs if its three most recent official cohort default rates are equal to or greater than 25 percent. If a school’s official cohort default rate climbs higher than 40 percent for one year, the school’s eligibility to participate in any or all Title IV Student Financial Assistance Programs may be limited, suspended, and/or terminated.
Of the 22 Louisiana schools which had a loan volume of $100,000 or more with LOSFA in 1998-99, 18 showed a decline in their 1997 CDR versus their 1996 rate, according to Jerry Oubre, LOSFA Auditor. "Notable among these," said Oubre, "are Louisiana State University-Shreveport, which brought its cohort default rate from 9.2 percent to 5.2 percent, Louisiana State University-New Orleans, which brought its rate from 11.1 percent to 6.6 percent, and McNeese State University, which cut its rate from 13.7 percent to 7.7 percent."
Oubre continued, "Of the 12 proprietary schools doing a loan volume of $100,000 or more with LOSFA in 1998/99, nine showed a decline in their 1997 CDR versus their 1996 rate. Significant among these are Camelot Career College, Delta School of Business, and SE College of Technology."
Louisiana colleges and universities have slashed their FY1997 Official Cohort Default Rates to the lowest level in the history of the Guaranteed Student Loan (GSL) program, according to figures recently released by the U.S. Department of Education (ED).
The Cohort Default Rate (CDR) is the percentage of student borrowers from any given school that has ceased repaying education loans within the first two years of repayment. Recent statistics from ED demonstrate that the 109 Louisiana colleges, universities and proprietary schools have lowered their cumulative CDR from 12.8 percent in FY86 to 10.3 percent in FY97.
A school or college can lose its eligibility to participate in guaranteed loan programs if its three most recent official cohort default rates are equal to or greater than 25 percent. If a school’s official cohort default rate climbs higher than 40 percent for one year, the school’s eligibility to participate in any or all Title IV Student Financial Assistance Programs may be limited, suspended, and/or terminated.
Of the 22 Louisiana schools which had a loan volume of $100,000 or more with LOSFA in 1998-99, 18 showed a decline in their 1997 CDR versus their 1996 rate, according to Jerry Oubre, LOSFA Auditor. "Notable among these," said Oubre, "are Louisiana State University-Shreveport, which brought its cohort default rate from 9.2 percent to 5.2 percent, Louisiana State University-New Orleans, which brought its rate from 11.1 percent to 6.6 percent, and McNeese State University, which cut its rate from 13.7 percent to 7.7 percent."
Oubre continued, "Of the 12 proprietary schools doing a loan volume of $100,000 or more with LOSFA in 1998/99, nine showed a decline in their 1997 CDR versus their 1996 rate. Significant among these are Camelot Career College, Delta School of Business, and SE College of Technology."
ED publishes Draft Cohort Default Rates in the spring and about six months later releases Official Cohort Default Rates, according to Susan Michelli, Manager of the Compliance Section. "For up to 30 calendar days after the receipt of its Draft Cohort Default Rate," said Michelli, "a school may challenge its draft rate if it is over 20 percent or if the school is subject to a loss of FFELP or Title IV eligibility as a result of its rate. After the Official Cohort Default Rates have been published, schools have up to 30 calendar days in which to appeal these; therefore, the 1997 official rates are not yet final."
There are no consequences for lenders and holders associated with FFELP cohort default rates. However, a lender or holder may appeal its rate based on data which is in error.
Guaranty agencies such as LOSFA have cohort default rates also (see related story), but whereas the cohort default rates for any given school are based on the loans made in order to attend that school, a guaranty agency’s rates are based on all the loans guaranteed by the agency.
In order to reduce student loan defaults, Louisiana’s colleges and universities have provided entrance and exit loan counseling to students about their obligations and options for repaying the debt after completing their education. Lenders and servicers are able to offer flexible repayment plans that assist graduates in paying back their education debt according to debt and income level.
As Louisiana’s designated guarantor of student loans, the Louisiana Office of Student Financial Assistance (LOSFA) takes part in default prevention efforts (see related story) through its Pre-Claims activities.
LOSFA'S
1997
Cohort Default Rate Declines
According to statistics released on October 5 by the U. S. Department of Education, LOSFA’s cohort default rate for Federal Fiscal year 1997 has dropped to 11.2 percent from 15.8 percent in FY 1996.
The cohort default rate is defined by statute as the percentage of borrowers who enter repayment in a certain year and default before the end of the following year.
LOSFA attributes the reduction in its default rate to increased default prevention efforts, including the installation and implementation of a new autodialer, the addition of a number of letters sent to delinquent borrowers, and a well trained and proficient Pre-Claim staff.
The Pre-Claim section is reponsible for default prevention efforts within the agency and pursues all delinquent borrowers in an effort to persuade them to restore their loan to a current status. Pre-Claim agents inform borrowers of options available to resolve their delinquency and the penalties of default. Borrowers are provided deferment and other forms and contact information for their lenders such as lender phone numbers and addresses and information to assist in finding the best solution to resolve the borrower’s delinquency.
Lender and school representatives also play a large part in preventing defaults. By educating borrowers on options available to resolve their delinquency, many borrowers never reach delinquency.
The national student loan default rate fell to 8.8 percent for FY 1997, the lowest point since the federal government started calculating the rate with FY 87 data.
Louisiana ACT scores continue to improve: minimum remains a 20 to qualify for TOPS
Louisiana high school graduates of 2000 will again be required to achieve a minimum 20 composite score on the American College Test (ACT) to qualify for a Tuition Opportunity Program for Students (TOPS) Opportunity Award. The qualifying score must be achieved by the April 1, 2000, ACT national test date.
By law, the minimum ACT requirement for the TOPS Opportunity Award is based on the prior year state average. However, the score must never go below a 19. The law establishes a fixed ACT composite score of 23 to qualify for a TOPS Performance Award and a 27 ACT composite score to qualify for a TOPS Honors Award.
ACT officials announced in August that the 1998-99 state average increased one-tenth of a point to 19.6, which rounds to a 20 for purposes of TOPS.
Jack Guinn, Executive Director of the Louisiana Office of Student Financial Assistance (LOSFA) commented, "Prior to TOPS, the Louisiana average composite ACT score had remained at 19.4 for three consecutive years. This is the second anniversary of TOPS and the second consecutive year that the state average ACT score has increased, occurrences whose implications are too obvious to ignore."
ACT officials have also attributed the rise in the state average to the TOPS program.
ACT Elementary and Secondary Services Consultant, Margaret French, commented, "To see an increase in the average composite score for two consecutive years, especially coupled with an increase in the number of students taking the test, is rare. When something like that occurs, we have to begin looking for contributing external factors. TOPS immediately comes to mind.
"TOPS has given average students and students from low income families an incentive to study harder, because they realize they can go to college if they do well in school," she said. "As a result, more students are taking core courses that will prepare them for college, and the effect is showing up in testing.
"This year, 76 percent of Louisiana’s high school graduates took the ACT; that’s the fourth highest percentage in the nation," French added. "Louisiana is steadily gaining on the rest of the nation," she said, "especially in certain subject areas and among certain ethnic groups.
"Since 1995, Louisiana’s composite scores for the English component of the ACT have increased at twice the rate of the national increase," French continued. "Among Louisiana African-American students in all family income categories who have taken the core courses, the overall composite ACT score is only one tenth of a point below the national average for African-American students. This includes Louisiana African- American students from families earning less than $18,000 per year."
Among the 70 percent of all Louisiana students who took the ACT after completing core curriculum courses, the average composite score was 20.6, a full point higher than the overall state average score. The English component of the test showed the greatest improvement among Louisiana students taking the test, up from a 19.5 in 1998 to a 19.7 in 1999. Math scores rose from 18.8 last year to 18.9 in 1999. Louisiana composite scores in Reading and Science Reasoning remained the same from 1998 to 1999. In 1999, 35,829 high school graduates took the ACT in Louisiana.
Louisiana Governor Mike Foster was also pleased with the announcement. "This is the best news I’ve heard in months," he commented. "This means TOPS is doing what it’s supposed to do. This program was created to raise the educational level of our young people and to give them an incentive to go on to college.
"The end result for Louisiana will be a better educated workforce, a workforce whose earning power will provide a better quality of life for all of us," the Governor continued. "I congratulate our students on their academic achievements and assure them that their hard work will be rewarded," he concluded.
Students are encouraged to take the ACT early and often in order to ensure achieving the highest score possible for TOPS. Students with a disability or exceptionality who may be eligible to take a special ACT test should contact ACT early to make arrangements prior to the deadline.
High school seniors who need ACT information packets may obtain them from their high school guidance counselors, or they may call LOSFA. For more information on all of the TOPS requirements for the Class of 2000, call LOSFA’s Public Information and Communications Division at (800) 259-5626, Ext. 1012, or e-mail LOSFA at custserv@osfa.state.la.us
BESE, REGENTS, LASFAC approve equivalent TOPS core curriculum courses
Some Louisiana high school graduates who were initially judged ineligible for a Tuition Opportunity Program for Students (TOPS) award will be receiving awards after all.
That’s because, in response to numerous requests from students, parents and schools, the Louisiana Office of Student Financial Assistance (LOSFA) has added several equivalent courses which may be substituted for certain core curriculum courses required by TOPS.
LOSFA requested evaluation of a number of courses by the state’s two major education policy boards. The State Board of Elementary and Secondary Education (BESE) and the Board of Regents (Regents) reviewed the courses and submitted a list approved by both boards to the Louisiana Student Financial Assistance Commission (LASFAC).
It is not yet known exactly how many students will be affected. "But the equivalent course list will apply to some students originally denied TOPS scholarships, who graduated from high school in 1997, 1998 and 1999," Guinn said. "Students already in college and found eligible for TOPS will be reimbursed for the tuition they paid."
High school graduates of 1997, 1998 and 1999 who applied for but were found ineligible for a TOPS award solely because they did not complete courses in the required curriculum, must take the initiative to have their applications reconsidered. If these students completed one of the recently approved alternative courses listed below, they should inquire whether the course will substitute for the missing course which originally disqualified them. Written inquiries, along with an official high school transcript, should be forwarded to: Audit Section, LOSFA, P.O. Box 91202, Baton Rouge, LA 70806, or Fax Number 922-0790.
The courses that may now be substituted for specific TOPS core courses are:
• General Science may be substituted for Physical Science
• Integrated Mathematics I, II,
and III may be substituted for Algebra I,
Algebra II and Geometry*
• Pre-calculus, Algebra III,
Probability and Statistics and Discrete
Mathematics may be substituted for Geometry, Trigonometry, Calculus or
comparable Advanced Mathematics
• Two units of Speech Debate may be taken in place of Fine Arts Survey
*Algebra I, Algebra II and Geometry cannot be "mixed and matched" with Integrated Mathematics I, II and III. For any Integrated Mathematics course to be used to satisfy the TOPS core curriculum math requirement, all three courses must be completed
On the Road...
Commission
defines "Steady
Academic Progress"
One of the statutory provisions enacted during the 1999 Regular Session of the Louisiana Legislature changed the requirement that students receiving a TOPS award "not be placed on academic probation by the college or university attended," to a requirement that students receiving a TOPS award must "maintain steady academic progress."
The legislation further directed the administering agency, the Louisiana Student Financial Assistance Commission (LASFAC), to define "steady academic progress."
The change in statutory language was brought about by the fact that the grade point average (GPA) which triggers academic probation varies from school to school. The standard was, therefore, not being applied equally to all TOPS recipients. A student with a certain GPA would find him/herself on academic probation at one school and have his/her scholarship suspended, while a student with the same GPA, at another school, would not be placed on academic probation and would continue to receive his or her award.
Prior to defining "steady academic progress," LASFAC asked for input and recommendations from its standing advisory committee of financial aid administrators. The advisory committee
requested that a more broad-based study group be convened by inviting financial aid administrators and academic counselors representing all public and private colleges and universities in the state to participate.
LASFAC agreed, and several meetings were held during the summer months. Those participating agreed to recommend that a minimum cumulative GPA of 2.0 on a 4.0 scale at the end of any semester or term be adopted as the common standard of "steady academic progress" for TOPS retention purposes.
On September 13, 1999, LASFAC officially approved that recommendation and adopted an emergency rule to implement it, effective for the Fall 1999 semester.
The "steady academic progress" standard will be used to evaluate students for continuation of their TOPS awards at the end of the Fall semester (Fall and Winter terms at Louisiana Tech). Students who have less than a 2.0 cumulative GPA (on a 4.0 scale) at the end of the Fall 1999 semester will have their TOPS awards suspended for the Spring 2000 semester. These students’ GPA’s will be reevaluated at the end of the Spring semester, along with their hours.
However, at the end of the Spring semester, students will be required to have achieved the cumulative GPA necessary for continuation of their award (2.3 for Opportunity Award recipients at the end of their first academic year; 2.5 for Opportunity Award recipients at the end of subsequent academic years; and 3.0 for Performance and Honors Award recipients at the end of each academic year).
Opportunity Award recipients failing to meet their continuation requirements at the end of the academic year will have their awards suspended until the required GPA is attained. If suspension lasts more than two years or four semesters, the student’s TOPS award will be canceled.
Performance and Honors Award recipients who fail to meet the GPA continuation standards for their award level, but do meet the GPA continuation standards for the Opportunity Award, will be continued at the Opportunity Award level. Once lost, the Performance and Honors awards (and their respective stipends) cannot be regained.
Guidance
Available For Use of "START" Proceeds to
Students
The 1999-2000 Federal Student Aid Handbook offers guidance to financial aid administrators on how to apply funds being disbursed from START, Louisiana’s college savings plan, to a student’s financial aid package. Reference to the START funds dispersal is made in the "Student Eligibility" section of the Handbook on page 128 under the heading Qualified State Tuition Programs (QSTP). For your convenience, we will quote it here:
"Under the second type of QSTP, someone can make contributions to an account that’s to be used for the beneficiary’s college expenses. Because the buyer isn’t buying tuition credits or certificates, this type of plan isn’t considered a tuition prepayment plan. Instead, it’s essentially a specialized savings account. The account should be reported as an asset of the owner (not the beneficiary, because the owner can remove or change the beneficiary at any time)."
Based on this information, proceeds to students under the START program should not be used as anticipated aid or resources counted directly against the student’s financial need. Instead, it should be reported as a parental asset on the FAFSA. Please note that some account owners are grandparents, and in those cases, the account would not be reported on the FAFSA.
Based on income, some account owners earn Tuition Assistance Grants (TAGs) on their contributions. Because TAGs are designated by law to pay tuition, it is appropriate to count any TAG received by the student as a resource that would count against his/her financial need, much the same as a Federal Pell Grant. For additional information on START policies, please contact Melanie Amrhein (800) 259-5626, Ext. 3296 or Mark Riley (Ext. 1133). For account information please call (800) 259-5626, Ext. 0523.
1999
Guidance
Counselor Workshops
Site Locations
Wednesday, December 1st
Louisiana State University-Alexandria
Barbara Caffey Annex Room
Thursday, December
2nd Bossier Parish
Community College
LC Building Auditorium
Friday, December
3rd
University of Louisiana at
Monroe
Activity Center Lounge
Monday, December
6th
Delgado Community College
City Park Campus
Building 1, Main Auditorium
Tuesday, December
7th
Louisiana State University
Cotillion Ballroom,
Student Union
Monday, December
13th
University of Louisiana at Lafayette
Bayou Bijou Theater,
Student Union
Tuesday, December
14th
McNeese State University
Parra Ballroom,
Student Union
Bayou Levee Room
Topics
TOPS Update
High School Certification Process
Student Application Process
Other LOSFA Programs
Overview of the Financial Aid Process
Help Available on the Internet
All workshops begin at 8:00 a.m. and conclude at noon. If you have any questions or need more information on the Guidance Counselor Workshops, please call the Louisiana Office of Student Financial Assistance at (800) 259-5626, Ext. 1012.
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