Newsletter: Spring 2002

Welcome from the Executive Director

CFNC Usage Tops Expectations
We certainly expected that many North Carolina students and families would take advantage of the comprehensive information available at our CFNC internet site (http://www.CFNC.org) when we launched the partnership among College Foundation Inc., Pathways of North Carolina, and the State Education Assistance Authority last July.

FAFSA Day A Success
Many thanks to over 250 college financial aid officers who cheerfully volunteered their Saturday morning to help approximately 950 high school seniors complete and electronically submit their FAFSA forms during the second annual FAFSA Day program, held Saturday, February 9, 2002, at 25 locations across North Carolina.

Savings Program Enrollment Grows Rapidly
Launched in December 2001, the North Carolina National College Savings Program has been met with great enthusiasm from the general public.

Scholarship "Seminar" Mailings Being Circulated
Again this winter, mass mailings have been sent to the homes of high school students across the state, inviting them to financial aid "seminars" for fees as high as $1,300 - while the exact same information is available free from College Foundation of North Carolina.

Scholarship Reference Guide Now Available
NCSEAA's comprehensive guide to financial aid resources, "Financial Aid for North Carolinians" has been updated and reprinted for this year.

New Spanish Language Brochures for HEW Programs
In an effort to better inform Hispanic families of the financial support available to North Carolina nursing students, Nurse Education scholarship materials are now available in Spanish.

Nursing Scholarship Applications Now Available
Students interested in careers in nursing can apply for financial assistance through the Nurse Scholars Program (NSP) for the 2002-03 school year.

New Scholarships Being Developed
Two new scholarship programs, the Teacher Assistant Scholarship Fund and the Golden Leaf Scholars Program, will soon be available from NCSEAA.

CFI Enhances Borrower Benefits
NCSEAA is pleased that our lending partner, CFI, continues its long-standing commitment to offering the best borrower benefits possible by enhancing existing benefits in both the student and parent loan programs.

PIN Used to Sign Loan Application
Did you know that students and parents can complete their CFI FFELP loan applications online at www.CFNC.org?

Agency Recovery Rate Ranks High
NCSEAA has the third highest recovery rate out of 36 guaranty agencies nationwide, according to the US Department of Education's recently released annual report of recovery rates for guaranty agencies that collect on defaulted student loans under the Federal Family Education Loan Program (FFELP).



Welcome from the Executive Director

CFNC Usage Tops Expectations
We certainly expected that many North Carolina students and families would take advantage of the comprehensive information available at our CFNC internet site (http://www.CFNC.org) when we launched the partnership among College Foundation Inc., Pathways of North Carolina, and the State Education Assistance Authority last July. While we expected the site to be busy, we have been genuinely -- and most pleasantly -- astonished at the significant usage the site has attained.

Unduplicated counts from the servers in Raleigh and the Research Triangle Park indicate that, from July 2001 through the month of February 2002, the site has been visited by more than one million visitors, averaging some 12 minutes per visit. This has produced over 28 million 'hits' on the site in its first seven months, an annual rate of over 41 million 'hits' by over 1.5 million visitors!

Additionally, in this first seven months, some 80,000 students and parents have established personal accounts on the site, through which they can store information from their high school records (academic, extracurricular, and personal) and can apply online for admission to any public or private college or university in North Carolina. In fact, for fall 2002 admission over 18,000 applications have been submitted to North Carolina institutions via the CFNC service. Students and parents can also use the service to look up information concerning their savings accounts in North Carolina's National College Savings Program or loan accounts with CFI. Over 10,000 have downloaded the program description for the savings program since it was added to the site in December.

The purpose of the site is to provide 'one stop shopping' for North Carolinians to use as they plan, apply, and pay for college. We are extremely pleased that so many people are finding the site useful.

Steven E. Brooks
Executive Director

FAFSA Day A Success
Many thanks to the hundreds of college financial aid officers and school counselors who volunteered their Saturday morning to help approximately 950 high school seniors complete and electronically submit their FAFSA forms during the second annual FAFSA Day program, on Saturday, February 9, at 25 locations across North Carolina.

FAFSA day locations included Albemarle, Asheboro, Asheville, Banner Elk, Buies Creek, Charlotte, Concord, Durham, Fayetteville, Goldsboro, Graham, Greensboro, Greenville, Hamlet, Hickory, Morganton, Murfreesboro, Pembroke, Raleigh, Shelby, Sylva, Weldon, Williamston, Wilmington and Winston-Salem

"FAFSA Day is a great experience for both the students and the volunteers. The families really appreciate the guidance and the volunteers know that they have used their professional knowledge to assist a student on the way to college," said Elizabeth McDuffie, director of education, training and outreach. "We are very appreciative of the willingness of the volunteers to give of their personal time and hope that more outreach efforts like this one will help students find the aid they need. The dedication of our NCASFAA members is extraordinary and I'm proud to be a part of this remarkable group of professionals."

Savings Program Enrollment Grows Rapidly
Launched in December 2001, the North Carolina National College Savings Program has been met with great enthusiasm from the general public. In just one month, 1,778 accounts were opened and just over $9 million dollars has been deposited into the fund.

To meet the needs of North Carolinians wanting more investment options as they save for college, this multi-option qualified state tuition program or '529' plan, includes four new investment options, an Aggressive Stock Fund, a Balanced Fund, a Dependable Income Fund, and a Lifecycle Fund.

"We are very pleased to offer even more investment options to families interested in saving for college," said Steven E. Brooks, NCSEAA executive director. "With multiple investment options as well as excellent tax benefits, saving for college should now fit more families' savings goals."

The National College Savings Plan also received a top honor recently, earned the prestigious "5-Cap Rating" from Savingforcollege.com. Founded in May 2000, the Savingforcollege.com Web site is considered the premier independent authority on state savings plans. The "5-Cap Rating" assigns an overall rating to each state-sponsored program ranging from one cap (least attractive) to five caps (most attractive). Criteria for the ratings system include flexibility, liquidity and availability, ownership rights, state benefits, investment approach and safety, program resources and financial aid impact.

Scholarship "Seminar" Mailings Being Circulated
Again this winter, mass mailings have been sent to the homes of high school students across the state, inviting them to financial aid "seminars." Families who attend the seminars are pressured to purchase service for a cost as high as $1,300 - while the same information is available free from College Foundation of North Carolina.

In addition, there are companies on the web currently charging students $50 and $80 for the FAFSA form, when it can be completed free at the Federal Department of Education Web site www.fafsa.ed.gov.

To help alert the public that paying for this information is unnecessary, WRAL-TV in Raleigh recently covered this story, interviewing Elizabeth McDuffie, director of education, training and outreach, during the segment. As word reaches us that more mailings are being received, we will continue to contact the media in hopes that they will help us spread the word this information is available free via the CFNC website.

As those of us in outreach positions meet students and parents on a daily basis, please keep this story in mind and remind folks that CFNC offers the most comprehensive information to North Carolina families at no cost to them.

Scholarship Reference Guide Now Available
NCSEAA's comprehensive guide to financial aid resources, "Financial Aid for North Carolinians" has been updated and reprinted for this year. Copies of the guide were distributed statewide to local high school libraries and school counselors, county libraries, financial aid directors and various state officials and agencies. The guide is also available online at www.CFNC.org , under the Paying for College tab. Printed copies of the publication are limited, so please direct all inquiries to the Web site whenever possible. For more information on the publication, contact Robbie Schultz, at robbie@ncseaa.edu

New Spanish Language Brochures for HEW Programs
In an effort to better inform Hispanic families of the financial support available to North Carolina nursing students, Nurse Education scholarship materials are now available in Spanish. The Health, Education and Welfare (HEW) division is currently distributing Spanish-language brochures and flyers for the NC Nurse Scholars Program (NSP), NC Nurse Education Scholarship Loan Program (NESLP), and NC Student Loan Program for Health, Science and Mathematics (HSM).

Historically, less than one percent of Nurse Scholars Program participants have been Hispanic. Due to the state's growing Hispanic population and the rising demand for Spanish-language nursing care, this outreach effort will now help Spanish-speaking families understand the funding opportunities available to potential nursing students in North Carolina. For more information on the translated materials, contact Angela Weaver at weaver@ncseaa.edu.weaver@ncseaa.edu.

Nursing Scholarship Applications Now Available
Students interested in careers in nursing can apply for financial assistance through the Nurse Scholars Program (NSP) for the 2002-03 school year. Up to 375 awards will be distributed, according to Dr. Algie C. Gatewood, director of the Health, Education and Welfare Division (HEW).

Nurse Scholars awards are merit-based scholarship/loans for both undergraduate and graduate nursing students. Undergraduate amounts range from $3,000 to $5,000 for registered nursing programs at the associate or bachelor's degree level, while graduate amounts range from $6,000 for full-time study to $3,000 for part-time study.

While the application deadline for the bachelor's degree program has passed, deadline for the associate degree program award and the graduate degree program is May 3, 2002. Applications are available from colleges, universities or other institutions that offer an accredited nursing program in North Carolina, or by contacting the NCSEAA.

New Scholarships Being Developed
NCSEAA has recently been asked to administer two new scholarship programs, the Teacher Assistant Scholarship Fund and the Golden Leaf Foundation Scholars Program. Information on the scholarships is as follows:

Teacher Assistant Scholarship Fund (TASF)
The TASF was established during the last legislative session. Full-time public school teacher assistants can receive up to $4,800 to pursue degrees at four-year colleges and universities in North Carolina. The funds are available for students who are enrolled for the current year, as well as the 2002-03 academic year. The deadline for the current academic year was February 28, 2002. Materials for the 2002-03 year will be posted to the website in March.

The TASF provides $1,600 per semester (including summer) for eligible students who are enrolled in at least 6 semester hours. As noted above, eligible candidates must be employed as full-time teacher assistants in a public school while pursuing a college degree at a four-year institution with a teacher licensure program.

As a result of the creation of TASF, the Department of Public Instruction is changing the Teacher Assistant Scholarship Loan to focus on assisting students in two-year institutions only. This does not affect the Prospective Teacher Scholarship Loan program.

Publicity efforts are underway to alert eligible teacher assistants of this new funding opportunity

For an application or more information, visit www.ncseaa.edu/TAS.htm or contact Robbie Schultz, at robbie@ncseaa.edu

Golden Leaf Foundation Scholars Program
In late November, the Golden Leaf Foundation provided the University of North Carolina with a grant of $220,500 for scholarships for the 2002-03 academic year. The Golden Leaf Scholars Program will provide non-renewable scholarships for tuition and fees for first-time freshmen and transfer students who previously received a Golden Leaf Scholarship while attending a community college. Recipients must reside in top tobacco-producing counties or Tier 1 counties and will be chosen by a central committee on the basis of merit and demonstrated financial need. Financial aid offices will be notified of the recipients as soon as the recipients accept the awards. Application and details about eligible counties are available on the NCSEAA Web site. For more information, contact Robbie Schultz, at robbie@ncseaa.edu , or Elizabeth McDuffie, mcduffie@ncseaa.edu.

CFI Enhances Borrower Benefits
NCSEAA is pleased that our lending partner, CFI, continues its long-standing commitment to offering the best borrower benefits possible by enhancing existing benefits in both the student and parent loan programs. The new enhancements include:

Stafford Loans - No Origination Fees
No origination fee will be deducted from proceeds for either subsidized or unsubsidized Stafford Loans, first disbursed on or after July 1, 2002. This new benefit will replace the current practice of crediting the borrower's account after the end of the year, and will put cash in the student's hand at the time he or she needs it most. This benefit in combination with the waiver of the 1% guarantee fee means that your student borrowers will net 100% of their loans to pay educational expenses.

PLUS Loans - 6% Credit Now Available
All borrowers of PLUS Loans first disbursed by CFI between July 1, 2001-June 30, 2003 will now receive an additional 3% credit of the amount borrowed. This credit, on top of the 3% credit already offered under the North Carolina Advantage Program, brings the borrower's total credit to 6%.

This 6% credit will be applied to a borrower's loan in July or October of 2002 and 2003, based on the date the loan was disbursed. While federal statute requires that the parent borrower be charged an origination fee upon disbursement, this credit, in effect, reduces the outstanding debt by double that amount, translating to additional credit for this year's and next year's loans.

The North Carolina Advantage keeps getting better!


Stafford Loans

• Waiver of the guarantee fee
• Savings rewards for timely payments
• Credit of 3% on amount borrowed (for loans disbursed prior to July 1, 2002)
• No origination fee (for loans disbursed on or after July 1, 2002)
• Lower Interest Rate Cap

• Waiver of the 1% guarantee fee
• Savings rewards for timely payments
• Credit of 3% on amount borrowed
• Additional 3% credit on amount borrowed (for amounts disbursed before July 1, 2003)

PIN Used to Sign Loan Application

Did you know that students and parents can complete their CFI FFELP loan applications online at www.CFNC.org? By clicking "Online Applications" from the CFNC homepage, students can make application for Stafford and EXTRA loans, and parents can apply for PLUS loans. For Stafford and PLUS Loans, borrowers have the option to sign the forms with their FAFSA PINs. Hundreds of CFI borrowers have used a PIN signature on these loan applications since November 2001, when CFI first offered this option.

If the borrower does not want to use a PIN, he or she can download and complete the application, sign, and mail it to CFI. Or the borrower may complete the application online and request CFI to print and mail the application to him or her to sign and return to CFI.

To alert borrowers who request paper applications about the possibility of applying online, CFI will begin enclosing information about online applications with mailed paper forms. Also, in the near future, CFI plans to add Consolidation Loan applications on line.

For more information on online applications or PIN signatures, call 866-866-2362 (CFNC) or contact your College Foundation regional representative


Agency Recovery Rate Ranks High

NCSEAA has the third highest recovery rate out of 36 guaranty agencies nationwide, according to the US Department of Education's recently released annual report of recovery rates for guaranty agencies that collect on defaulted student loans under the Federal Family Education Loan Program (FFELP).

The recovery rates reflect how much money guaranty agencies collected on defaulted FFELP loans during the federal fiscal year Oct. 1, 2000 to September 30, 2001 relative to the agencies' beginning inventory as of the end of the previous fiscal year, September 30, 2000.

NCSEAA's recovery rate for the most recent year was 44.67%, with the average recovery rate among all guarantors for the same period being 22.27%. NCSEAA collected $48,392,869 from defaulted FFELP borrowers during the period October 1, 20000 to September 30, 2001. NCSEAA's beginning inventory as of the start of that period was $108,328.417.

While helping borrowers avoid default is a top priority, the default reduction programs offered by NCSEAA have played a part in the agency's strong recovery rate for collection of FFELP loans, according to Steven E. Brooks, NCSEAA executive director. Those programs include:

• NCSEAA's Loan Rehabilitation Program - allows eligible borrowers to have their loans removed from default status and to be repurchased by the original lender, College Foundation Inc. (CFI), after twelve consecutive satisfactory monthly payments.
• Loan consolidation - provides eligible borrowers with the ability to pay off their defaulted student loans with a new consolidation loan. The consolidation loan may further benefit borrowers by reducing the borrowers' monthly payment amounts and by extending the allowable period of repayment.
• Administrative wage garnishment - NCSEAA has the authority to direct a borrower's employer to withhold up to 10% of the borrower's disposable wages and for the funds to be applied to the borrower's defaulted student loan debt.
  

NCSEAA continues to explore other ways to recover the maximum amount possible on defaulted student loan debts. NCSEAA also collects debts through voluntary repayment agreements with borrowers, seizure of defaulted borrowers' federal and state income tax refunds, civil lawsuits, and enforcement of the State Employees Debt Collection Act.