Newsletter: Fall 2001

Welcome from the Executive Director

Welcome to this special edition electronic newsletter from the State Education Assistance Authority! We hope that we can provide timely and interesting information to the financial aid community of North Carolina through this medium. The Authority exists to serve students and families in North Carolina and to encourage them to enroll in education beyond high school. We administer some 35 different programs, ranging from college savings options to scholarships and grants to several student loan programs. Several of these programs, most notably the Federal Family Education Loan Program, the North Carolina Student Incentive Grant, UNC Need Based Grant, the Community College Grant, and North Carolina's National College Savings Program are administered on our behalf by College Foundation, Inc. (CFI). Others, such as the North Carolina Legislative Tuition Grant, the Nurse Education Loan Program, and the North Carolina Student Loan Program in Health, Science, and Mathematics, are administered directly by the Authority. Student applications for all of our programs are increasing, and we are optimistic that our General Assembly will fund its grant programs for students at realistic levels.

Additionally, the Authority seeks to help financial aid administrators and school counselors through training and educational opportunities. We sponsor training in collaboration with the College Board, CACRAO, UNC, and NCASFAA. We offer internships for schools counselors to work in summers in college aid offices. We invite your ideas as to how we expand our training and outreach activities in new and improved ways.

Our longtime partnership with CFI has been expanded this fall with the announcement of the new and enhanced College Foundation of North Carolina. In combination with the Pathways program, the Authority and CFI now provide 'one-stop shopping' for students and families planning for, applying to, and paying for college in North Carolina. A new web site joins the three entities under one name - CFNC.org . Toll-free telephone service is available at 866-866-CFNC. Please see the article below on this significant enhancement to our ability to serve North Carolinians.

We appreciate and encourage your input on our current programs. Each of us has an important mission in helping students and their families find the financial means to go to college. Ideas, thoughts and suggestions are always welcome and we hope that future communications such as this will help foster an environment for regular communication among your staff and ours.

Steven E. Brooks
Executive Director


College Foundation of North Carolina Extends Its Offerings

There has never been a more exciting time for students considering their college aspirations and future careers! College Foundation of North Carolina (CFNC), the state's most comprehensive resource on how to pay for college, now serves an even broader population. By joining forces with Pathways, a state-sponsored career-exploration and college-planning Web site and call center, CFNC now provides information and assistance to students as early as middle school, in their efforts to plan, apply and pay for college. "Combining services makes good sense," said Dr. Steven Brooks, SEAA executive director. "Online planning for college is the way of the future for college-bound students and their families." Brooks noted that CFNC is on the "cutting edge" with its Web-based tools that benefit both students and administrators alike. Web-based tools for students include:

  • career exploration tools to determine their career interests;
  • campus tours;
  • accounts to track their coursework toward graduation and college admission;
  • online applications to North Carolina college and universities; and
  • financial aid applications

For administrators, services that were previously offered at www.cfi.org are now found on the CFNC Web site. FAAs can access:

  • grant application and loan processing systems;
  • downloadable forms, and
  • Common Manual updates

Not only does the expanded Web site and call center make planning for college easier, it could be the catalyst that helps make college a reality for the student who thinks college is out of reach. Visit our new Web site, www.CFNC.org, or contact the call center at the new toll-free number 1-866-866-CFNC.


Protect Your Default Rate with Notification of Delinquent Borrowers

Protecting your school and your students against defaulted loans is critical. To aid in avoiding the problems that defaulted loans bring, SEAA works closely with College Foundation, Inc. (CFI) to ensure that FFELP loan borrowers maintain their repayment responsibilities.

If a borrower becomes more than 60 days delinquent in the repayment of a FFELP loan, CFI notifies SEAA of the delinquency and requests default aversion assistance. This is a process similar to what was previously known as "pre-claims assistance." A borrower's defaulted loans affect the default rate of your institution long after the loan was received and could impact your school's ability to participate in Title IV federal student aid programs.

As a result, we urge you to strongly consider being notified of any default aversion assistance requests that apply to your students or former students. Contact SEAA to make a blanket request to be notified about such default aversion assistance requests. Requests should be sent to:

NCSEAA Director of Guaranty Agency Services
P.O. Box 14002
Research Triangle Park, NC 27709



Nurse Scholars Program Notes Significant Increase

A 20% increase in applications to the Nurse Scholars Program (NSP) during 2001 proves that aspiring nurses planning to practice in North Carolina are realizing the exceptional opportunities offered by NSP.

NSP provides scholarship loans to students in pursuit of the Associate Degree in Nursing (ADN), Bachelor of Science degree in Nursing (BSN) and Masters of Science degree in Nursing (MSN) degrees. Awards range from $3,000 to $6,000 per year to a total of $20,000 for undergraduates and $12,000 for graduate level students.

Program graduates are able to repay their loan by practicing as a nurse in North Carolina, with each year of practice forgiving one year of the loan. Students opting not to graduate or practice in North Carolina, however, must repay the full principal amount of the scholarship loan plus 10 percent interest per year.


NSP eligibility requirements include:

    Undergraduate:
  • 3.00 unweighted GPA in previous high school and/or college coursework;
  • Must be a US citizen and a resident of North Carolina for tuition purposes;
  • Must agree to work in NC as a registered nurse upon graduation or repay the amount of the scholarship plus 10 percent interest in cash.

    Graduate:
  • 3.20 GPA in the last two-years or 60 hours of a Baccalaureate degree program;
  • Must be a US citizen and a resident of North Carolina for tuition purposes;
  • Must agree to work in NC as a registered nurse upon graduation or repay the amount of the scholarship plus 10 percent interest in cash.

The deadlines for application are in the spring of each year. For more information about the Nurse Scholars Program, access the CFNC Web site at www.CFNC.org or contact SEAA's Health, Education and Welfare Division at (919) 549-8614 or 800-700-1775.


Scholarships and Grants Awarded

To many in the financial aid field, the movie catch phrase "Show me the money" is not only memorable, it has a lot of truth to it. SEAA's Scholarship and Grant division has been busy living up to the phrase by receiving applications, conducting interviews and awarding scholarships that will make a big impact on many students and their families.

Last spring, 16 students out 180 applicants were chosen to become Brooks Scholars. These prestigious scholarships are made available through the Aubrey Lee Brooks Foundation and are open to eligible students with financial need, residing in the counties of Alamance, Bertie, Caswell, Durham, Forsyth, Granville, Guilford, Orange, Person, Rockingham, Stokes, Surry, Swain and Warren. Applicants must plan to attend NC State, UNC-Chapel Hill or UNC-Greensboro. Each scholarship recipient receives $5,300 for the academic year, with additional opportunities for summer educational research projects, internship or study abroad opportunities. New freshmen will receive a one-time $3,500 computer allowance.

Also in competition were the Jagannathan Scholars, with four recipients selected out of 149 applications. Eligibility requirements for the Jagannathan scholarship require that students be from any high school in the state and plan to attend any UNC institution. The scholars will receive $3,500 per academic year.

For nearly 30 years, the NC General Assembly has provided funds to assist North Carolina residents attending independent, non-profit colleges in the state. In the 2000-01 academic year, over 30,000 full-time students received the North Carolina Legislative Tuition Grant, valued at $1,800 per academic year. In addition, the Legislature provided $31,410,500 through the State Contractual Scholarship Fund to assist needy North Carolinians attending these same 37 colleges. SEAA oversees the administration of these programs on a statewide basis and collects information from the colleges regarding the students who receive these funds and their residentiary addresses. Recent publicity called for the programs to be revisited and the Authority stands ready to assist if the Legislature calls for a review.

On the graduate level, the Board of Governors selection committees chose eight dental scholars and 20 medical scholars. Each recipient of the Board of Governors Medical and Dental Scholarships receives tuition and fees plus a $5,000 stipend per academic year. Recipients are chosen based on financial need and the potential to contribute to North Carolina upon graduation and may attend any of the medical schools located in North Carolina or the dental school at the University of North Carolina.


Scholarship Created to Honor Former Governor

To honor former Governor James B. Hunt's service to North Carolina, PSNC Energy has established a scholarship in his name. This new scholarship complements the Governor James G. Martin scholarship, established by the company in 1993. Each year, this new scholarship will assist five outstanding new students, and up to twenty continuing students each year in pursuit of a college education.

Like the Governor Martin Scholarship, the Governor Hunt scholarship recognizes the academic achievements and community service of some of the state's brightest students who have demonstrated a commitment to the people of North Carolina. The scholarships will be funded throughout the lifetimes of each former governor and will be administered by SEAA.

The application procedures, eligibility criteria and awards for both programs are identical. Each fall, SEAA distributes applications to four-year accredited colleges and universities across the state. Those institutions distribute the applications to high school seniors planning to enroll the following fall. Candidates must complete the application, write an essay, and submit letters of recommendation and high school transcripts.

Each school may nominate up to two students who present outstanding records of community service, academic achievement and leadership. Selected by the SEAA Board of Directors, five candidates will be designated Governor James B. Hunt Scholars, and five will be named Governor James G. Martin Scholars.

Scholarship recipients each receive $1,000 per year for four years of study provided they enroll at the colleges that nominated them and remain in good academic standing at the nominating colleges. A fifth year of funding is available if a student is enrolled in an undergraduate program that is designed to require five years to complete.

For the 2001-02 academic year, the Martin and Hunt scholarship recipients will enroll as freshmen at the following nine institutions in North Carolina (one campus had both of their nominees selected):

Campbell University
Davidson College
East Carolina University
Gardner-Webb University
Mars Hill College
Meredith College
North Carolina State University
Pfeiffer University
University of North Carolina at Chapel Hill

We congratulate these outstanding students who demonstrate great potential to contribute much to the people and the State of North Carolina. We look forward to recognizing future Governor Hunt and Governor Martin Scholars.


FASFA Day 2002

Mark your calendar for the 2nd annual FAFSA day to be held on Saturday, February 9 at locations across the state. Last year 500 students sought help completing their FAFSA online. This year we will increase the number of sites and the publicity so your help will be needed. More details to come, but make sure you hold that day!


Providing a Little EXTRA to Make College More Affordable

Over 30 North Carolina colleges and universities have been determined eligible, based on their average Federal cohort default rate or their CFI loan-to-default ratio, to offer North Carolina's EXTRA Education Loan Program, administered by College Foundation Inc. (CFI) to their students. This new online alternative loan is available for students who already have a loan made under North Carolina's Federal Family Education Loan Program (FFELP) but still need additional funds.

"We encourage students to borrow as little as possible when they are trying to pay for their education," said Shera Hube, vice president for CFI. "But we also know that sometimes students need a little extra help, which is why the EXTRA loan program was created."

    To be eligible, a borrower must meet the following criteria:
  • Must be a borrower with either disbursement(s) pending or with an outstanding balance on a loan made under North Carolina's FFELP;
  • In good standing (not past due, in default, or with a rehabilitated loan);
  • Enrolled at least half time and in good academic standing in a baccalaureate or graduate degree program at an eligible college or university in North Carolina. May include enrollment in study abroad if the academic credit for the foreign study will be applied to the baccalaureate or graduate degree requirement; and
  • A good credit rating (either for borrower or surety, if applicable).
    Loan Amount:
  • Minimum $200
  • Annual maximum for undergraduate and graduate is the cost of attendance less other financial aid you receive (as certified by your college or university)
  • No aggregate limit
  • School must certify amount and, to assist in debt management, may suggest an amount lower than that for which you are eligible. The lesser amount will be the one approved.

    Special Benefits:
  • Variable Interest Rate: Prime Rate + 0% (adjusted quarterly and determined on the first business day of the calendar month preceding the applicable quarter); accrued, unpaid interest to be capitalized at repayment. Check the current interest rates at www.CFNC.org.
  • No origination, guarantee or repayment fees.
  • No payments required while you are in school (however, you may choose to pay at least the interest while enrolled to help lower your monthly payments once you complete your program.)
  • EXTRA loan has a six-month grace period before repayment begins.
  • North Carolina's FFELP and EXTRA loans are made and serviced by College Foundation Inc. and will be reported on the same monthly statement for you.

    Once repayment starts,
  • .25 % interest rate reduction if you make monthly payments by automatic withdrawal; and
  • Additional .50% interest rate reduction if you make 48 consecutive on-time payments during the first 60 months of repayment.
  • Tiered repayment period based on total EXTRA Loan amount borrowed.
    • Less than $7,500             =   10 years
    • $7,500 - $9,999.99           =   12 years
    • $10,000 - $19,999.99       =   15 years
    • $20,000 - $39,999.99       =   20 years
    • $40,000 - $59,999.99       =   25 years
    • $60,000 and above           =   30 years
  • Minimum monthly payment of $50.00 required
  • Flexible repayment options.

"Another benefit to the EXTRA loan is the convenience," Hube said. "Students can apply online or if they don't have web access, they can call the CFNC call center and one of college financing specialists will work with them to complete the online application."

Online credit checks will be performed to determine if an applicant will need a Surety to apply with them. Once an applicant has been determined eligible for the EXTRA loan, CFI will contact the school's financial aid office to request certification. Both the applicant and the school will be notified of the final loan amount.

Plans are currently underway to expand North Carolina's EXTRA Education Loan Program in January 2002 to include postgraduate students in specified certification or licensure programs at eligible schools and medical school graduates with residency/relocation expenses. Half-time enrollment eligibility criteria will not apply for any postgraduate student categories.