New York State Higher Education Services Corporation

Transcription

1 New York State Higher Education Services Corporation

2 Statistical Highlights New York State students and families received nearly $4.4 billion in grants, scholarships, other awards and federal loans administered by HESC in With $901 million in Tuition Assistance Program (TAP) awards, the program confirms its position as the nation s largest state-sponsored entitlement need-based grant program for student aid. More than 45,100 scholarships and other awards totaling $53.7 million were awarded to students. The number of students receiving TAP grew to nearly 398,000, an increase of 24,903 or 6.7 percent. Nearly 1.36 million aid applications, the majority for grants, scholarships and other awards, were submitted to HESC by students seeking aid. To help students and families bridge the gap in college funding that often exists after all other aid is exhausted, HESC launched the New York Higher Education Loan Program (NYHELPs), a state-sponsored fixed-rate student loan program. NY s GEAR UP program is assisting more than 22,600 at-risk students through providing direct services through sub-grant projects as well as support for the GEAR UP partnership programs in the State. As the administering agency for a federal two-year, $8 million College Access Challenge Grant (CACG), HESC provided sub-grants to schools, agencies and community-based organizations for early outreach programs for families with incomes below the poverty level to improve college awareness, readiness, and attendance, and sponsored professional development of middle and high school counselors serving at-risk students. As a result of HESC helping students avoid default, the 2008 FFELP cohort default rate for HESC-guaranteed loans declined to 7.9 percent, contrary to an increase in the national FFELP rate.ograms. New York State Higher Education Services Corporation

3 Mission We help people pay for college. Values Our employees We are committed to teamwork, excellence, initiative, personal growth and responsibility. Our customers We never take our customers for granted. We ask, we listen and we respond. Our products and services We are committed to high quality, dependability and continuous improvement to meet the changing needs of our customers.

4 NYS HESC Board of Trustees As of March 31, 2010 Chairwoman Ms. Eileen Bagnoli President and CEO Pioneer Savings Bank Vice Chairwoman Ms. Angela Van Dekker Assistant Vice President, Student Financial Services Fordham University Members Chuck DeLaney Director New York Institute of Photography Dr. Matthew Goldstein Chancellor City University of New York Ms. Melody Mercedes President SUNY Student Assembly State University of New York Mr. Thomas J. Murphy Principal Trailhead Advisors Mr. Cory Provost Chairperson University Student Senate City University of New York Dr. David Steiner Commissioner NYS Education Department Mr. Philip Williams President Utica School of Commerce Dr. Nancy Zimpher Chancellor State University of New York 2

5 Executive Management As of March 31, 2010 Elsa M. Magee Executive Vice President and Acting President John W. Austin Senior Vice President for Customer Relations Frank Ballmann Director of Federal Relations Thomas F. Brennan General Counsel Kathleen J. Crowder Senior Vice President for Communications Matthew J. Downey Senior Vice President for Corporate Finance and Chief Financial Officer Christine Konsistorum Director, Audit Division Aaron Pisacane Chief Credit Officer NYHELPs Victor A. Stucchi Senior Vice President for Operations and Information Technology Charles G. Treadwell Executive Director for NYHELPs New York State Higher Education Services Corporation 3

6 New York s Tuition Assistance Program (TAP) is the nation s largest state-sponsored entitlement need-based grant program for student aid, providing over $901 million in grant aid to nearly 400,000 students in New York State s 2009 Student Financial Aid Awareness Month, which ran from January 25 February 25, 2010, was a HESC-initiated statewide public awareness campaign that spread the message that financial aid is available, and assisted students and parents in completing the most important tool for receiving financial aid the Free Application for Federal Student Aid, or FAFSA. The theme for HESC s Annual Report Putting Students First reflects our agency s deep and long-standing commitment to educating New York s students and families on all of their college financial aid options, and helping them meet their postsecondary education costs today, tomorrow and in the future. State Fiscal Year proved to be a difficult year as growing numbers of students and families sought assistance to help pay for college amid ongoing economic and fiscal problems facing the State and nation. At the same time, Congress and the Obama Administration actively worked to overhaul the way students utilizing federal student loans pay for higher education. In the face of these challenges, HESC sought to focus its resources on innovative new strategies that meet the needs of today s students and educational institutions, and make a college education attainable and achievable for all New Yorkers. 4

7 Thirty-five years of change: The mission remains the same Throughout our 35-year history, HESC s mission has remained the same: We help people pay for college. In , our reach broadened to more fully encompass programs designed to improve college access and success, as we worked with younger students to show them how their college dreams can be their reality, and to prepare them early for their future educational goals. HESC remains committed to administering State grant and scholarship programs with long-standing support, like the Tuition Assistance Program, along with new initiatives like Student Financial Aid Awareness Month, and New York s GEAR UP and College Access Challenge Grant programs to improve college access and preparedness among traditional, nontraditional and underrepresented students. Programs funded through New York s Gaining Early Awareness and Readiness for Undergraduate Programs (GEARUP) and College Access Challenge Grant (CACG) have utilized innovative and effective techniques to help low-income students prepare to enter and succeed in postsecondary education. 5

8 Who We Are HESC is New York State s higher education student financial aid agency, and also serves as the State s federally-designated guarantor for the Federal Family Education Loan Program (FFELP). HESC also administers: New York s Tuition Assistance Program (TAP) 17 other State scholarship and loan forgiveness programs Federal Leveraging Educational Assistance Partnership (LEAP), Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP) grants, and the College Access Challenge Grant (CACG) Program New York Higher Education Loan Program (NYHELPs), the newly enacted state-sponsored fixed-rate student loan program New York s 529 College Savings Plan, with the Office of the State Comptroller (OSC) Financial literacy programs for students and families While legislation was enacted in that effectively eliminated the origination of new loans under FFELP, HESC maintains its agreement with the Secretary of the U.S. Department of Education, which allows for new contracting opportunities under the Federal Direct Lending Program.

9 The Transitioning Role of FFELP Guaranty Agencies HESC put the needs of students first in its support of the federal Health Care and Education Reconciliation Act s (HCERA) 10-year $36 billion investment in Pell Grants; $4 billion investment in community colleges, historically black colleges and other minority-serving institutions; and $750 million investment to help low-income students with financial literacy, debt management, and college access and completion. HESC s services have traditionally been provided to New York State students, families, high school guidance counselors, colleges, and other constituents at no cost to State taxpayers through revenues earned as the FFELP guaranty agency. With significant reductions in revenues stemming from federal student loan reform legislation, HESC is working to ensure the continuation of these programs and services, including financial literacy, college access, outreach and early awareness programs that are needed by our constituents now more than ever. Given that implementation of HCERA also ended new lending under the FFEL Program effective July 1, 2010, HESC, with support from members of the State s Congressional Delegation, began pursuing contracting opportunities with the U.S. Department of Education to perform services under the Federal Direct Loan Program that would preserve revenue earnings to fund critical programs and services to New York State colleges, students and families. Guaranteeing Student Education Loans Even as colleges began the transition to Direct Lending, a significant segment of HESC s business continued to come from its administration of federal student and parent loans in As the federallydesignated FFELP guarantor in New York State, HESC guaranteed $3.4 billion in new FFELP loans for students attending college in the State, a 7.19 percent decrease from the previous fiscal year. HESC also guaranteed consolidation loans worth nearly $2.4 million. Rehabilitating Student Loans In , HESC successfully rehabilitated $121.8 million in student loans, helping 7,200 student loan borrowers repair their credit and get their loans out of default. Despite the absence of a rehabilitation lender during the first three months of , total rehabilitations for the year were in line with the prior year, due in large part to innovations in HESC s in-house default recovery system launched in Collection representatives and managers are now better able to track and advise borrowers who are eligible for rehabilitation throughout the period in which they establish their eligibility. Under the new system, the agency reached a new milestone in March 2010, with a one-month record $8 million in rehabilitations that removed 674 borrowers from default. With the new process now firmly in place, HESC is well-positioned to manage larger volumes of loan rehabilitations in-house, and increase the number of borrowers in default who can benefit from this option. New York State Higher Education Services Corporation 7

10 Helping Students One-on-One Working with the U.S. Department of Education s Federal Student Aid (FSA) Ombudsman, HESC s Ombudsman helped resolve issues confronted by hundreds of New Yorkers concerning their federal loans. Each problem is tracked and resolved on a case-by-case basis, with utmost concern placed on the interests of the students and borrowers. Private Loans Helping New York State s Students Make Smart Borrowing Decisions HESC assists students who have a remaining unmet need after exhausting all other forms of financial aid to make smart borrowing decisions when selecting a private loan. Offering transparency in student lending and giving students and families the ability to make informed borrowing choices was a key priority throughout The HESC Student Loan Marketplace, the nation s first online information and comparison service for private student loans, enables students seeking a private education loan to compare the terms of loan products from multiple lenders, based upon the borrower s credit profile, with only one credit check. Marketplace allows students to make decisions based on comprehensive loan product information, not as low as advertised offers. To further educate students and families seeking private education loans, HESC enhanced its web site in to include a private loan section that, first and foremost, encourages borrowers to exhaust all free and low-cost forms of financial aid before taking a private loan, and to consider a number of critical factors when choosing a loan, including interest rates, fees, and interest capitalization. The site features a new interest capitalization calculator to help the exploring borrower see first-hand how capitalization changes the total cost of borrowing and allow borrowers to calculate the true cost of their loan. Comparing private loan terms can be a daunting task for most students and their families. The ability to consult with a trusted resource that offers real assistance in a transparent manner often leads to better borrowing decisions. With the proper tool, colleges can help families reduce confusion when making decisions about private loans. HESC s Request for Information (RFI) Generator allows college administrators to set standard criteria and evaluation methodology to evaluate loan terms and lender services. This transparent and efficient tool creates a comprehensive lender list that complies with regulatory requirements and helps students to narrow the scope of their loan search based on their needs. New York Makes Available its First State-Sponsored Student Loan Program, NYHELPs The utilization of state-sponsored student loan programs is steadily growing among students needing nonfederal loans to close gaps in their college costs. In its 2007 Trends in Student Aid report, the College Board identified a 531 percent increase in the utilization of state-sponsored loans, from $181 million nationally in to $1.15 billion in During the same period, utilization of private sector education loans (which exclude state-sponsored loans) grew by 894 percent, from $1.46 billion in to $14.54 billion in With this growth, distinctions are being made about the benefits and reliability of state loan programs, which can carry fixed rates and offer borrower benefits not available with other private loan products. For these reasons, independent financial aid organizations are advising potential private education loan borrowers to look to student loans offered by their home state or risk missing out on some of the best financial deals available for higher education. 8 New York State Higher Education Services Corporation

11 The New York Higher Education Loan Program (NYHELPs) was created in as a direct result of the New York State Commission on Higher Education (the Commission) recommendation for the creation of a low-cost student loan program for residents attending college in New York State. The Commission identified New York as the only large urban state and only northeastern state to not offer its residents a state-sponsored student loan program, and reported that the absence of such a program limited students college financing options, potentially inhibiting access or contributing to the accumulation of high-interest debt. Enacted in April 2009, efforts during the year focused largely on implementation of the new Program, including procurement of a vendor to develop its student-focused financial literacy platform, and the development of regulations and underwriting criteria that would benefit the maximum number of New Yorkers and ensure their access to a loan product whose repayment remains fixed for the life of the loan. While most students select their full year loan product during the peak student lending months of July and August, NYHELPs began accepting applications from New York students and families in late December 2009 nearing the close of the smaller spring semester lending cycle. With 33 colleges participating, the agency was able to conduct a soft launch and test the integrity of key processes, such as the online application process and online financial literacy module. By virtue of its eligibility requirements, NYHELPs discourages unnecessary borrowing by compelling New York State students and families to pursue all other free and low-cost college financing options first, in keeping with agency priorities to minimize borrowing by students looking to finance their postsecondary education. The Program s financial literacy courses further educate students about student loan indebtedness, a unique feature among both state-sponsored loan programs and private education loan products. HESC enhanced its Web site to include a private loan section that, first and foremost, encourages borrowers to exhaust all free and low-cost forms of financial aid before taking a private loan. The New York Higher Education Loan Program (NYHELPs) was created in as a low-cost student loan program for residents attending college in New York State. 9

12 While the current interest rate environment has resulted in prolonged and historic low variable rates, it is clear that rates will necessarily increase over the next 10 years as students begin to repay their college debt. In looking to the future of variable interest rates, it is imperative that New Yorkers continue to have available a fixed-rate education loan option to finance their college costs so that they do not struggle with repayment in future years. During , HESC provided over $901.4 million in TAP awards to more than 397,000 students. New York s Financial Aid Support to Students Remains Unsurpassed State grant and scholarship dollars and tuition reimbursements provided to New York State students continued at levels that ranked HESC number one nationally. New York State was credited with providing the most need-based grant dollars by the National Association of State Student Grant and Aid Programs (NASSGAP) for the 11th consecutive year. The NASSGAP Survey ranked the State first in both total student aid dollars and total number of need-based student grants awarded. New York also ranked second in total student grant dollars awarded and average state need-based undergraduate aid awarded. Grant, Scholarship and Loan Forgiveness Programs that Help New Yorkers Meet their Higher Education Costs The Tuition Assistance Program (TAP), which provides grants to help New York resident students access in-state postsecondary institutions, remains the largest entitlement, need-based grant program in the nation. During the academic year, TAP provided over $901.4 million in tuition awards to more than 397,000 students. An array of other HESC-administered State scholarships and loan forgiveness programs provided 45,135 awards worth $53.7 million during the academic year. Ten programs experienced an increase in the number of recipients receiving awards, including the Veterans Tuition Awards and the NYS Math & Science Teaching Incentive Scholarship programs. 10

13 During , HESC continued to administer programs that assist members of our military and their families in attaining a college education. More than 2,190 New York State veterans received Veterans Tuition Awards totaling nearly $6.4 million, and 20 students received a total of $229,000 through the Military Service Recognition Scholarship. The NYS Regents Awards for Children of Deceased and Disabled Veterans provided 455 recipients with a total of $178,000 in financial support for college. To help address the growing demand for math and science teachers, 304 students were awarded a total of $1.5 million in NYS Math & Science Teaching Incentive Scholarships. Students studying part time also received financial assistance; more than $11.6 million in awards were provided to nearly 18,000 part-time students through the State s Aid for Part-Time Study program. More than 16,800 outstanding graduating seniors from high schools across the State received NYS Scholarships for Academic Excellence totaling $11.4 million. In addition, $7.9 million was provided to honor survivors and family members of those who lost their lives in the September 11, 2001 terrorist attacks, and assure access to college for their spouses and dependents. Through four student loan forgiveness programs, more than 800 professionals, including doctors, nursing faculty, district attorneys and social workers, received more than $3.3 million in awards to forgive loans used to finance their education in exchange for performing qualifying services in areas of high need across the State. Innovations Streamline Processing and Support New Products Major Enhancements to HESC Systems HESC made significant strides forward in the arena of information processing with the implementation of a new Default Recovery System (DRS) and the development of the systems necessary for the operation of the state s new student loan program, NYHELPs. Default Recovery Implementation of the new DRS gives HESC state-of-the-art tools and processes comparable to those found in private collections firms. The new system has enabled HESC to increase the efficiency and effectiveness of its default collections activities and expand its collections capabilities without increasing overhead. From this, HESC has been able to maximize the utility of its current collections staff and better position itself for collection of defaulted education loans on behalf of the U.S. Department of Education. With the efficiency and effectiveness of the new DRS, the agency is better able to serve the taxpayers and borrowers of New York State. NYHELPs The eight-month implementation of an application and origination processing system for the New York Higher Education Loan Program focused on creating a seamless experience for borrowers. With the Program s web-based, fully electronic application and origination processing system, borrowers can quickly complete the loan application process, from the entry of borrower and cosigner information through a real-time decision based on real credit information. New York State Higher Education Services Corporation 11

14 Default Prevention Establishing early communication with newly-graduated and withdrawn students who own a student loan is key to helping them avoid delinquency and default. HESC s Default Management Initiatives Unit works with participating schools to contact former students by phone and mail during their 6-month grace period to keep them aware of their rights and responsibilities regarding loan repayment and maintain up-to-date contact information so that assistance can be offered should they become delinquent on their loans. With the assistance of a newly-acquired state-of-the art phone dialer system, HESC staff initiated more than 82,000 calls to delinquent student loan borrowers to assist them in preventing their loans from entering into default. Staff also worked with more than 62,000 students who contacted agency representatives seeking assistance to keep their loans from defaulting, including facilitiating conference calls with lenders to resolve delinquencies and avoid default. Throughout the year, HESC helped to prepare college administrators for implementation of the new threeyear cohort default rate. Default Manager, HESC s web-based program that helps schools identify and contact delinquent borrowers, was upgraded to display all three active cohort years and allow colleges to download the cohort roster, with all relevant borrower contact and demographic data, enabling easier analysis and borrower communication.

15 Expanding Financial Literacy The financial difficulties experienced by students and their families during underscored the need for increased financial literacy awareness services. HESC launched the first NYHELPs financial literacy module in December 2009 to coincide with the launch of the New York Higher Education Loan Program. Unique among private education loan programs, all NYHELPs borrowers must successfully complete and pass a financial literacy course covering loan terms, interest capitalization and repayment options, to be eligible to receive a Program loan. This requirement allows for a more informed and educated borrower. Along with the NYHELPs module, modules covering Financial Aid 101, Undergraduate Federal Loans, Graduate Federal Loans and Private Loans were also launched in These modules provide potential loan borrowers with an overview of the financial aid process, financial aid forms and program descriptions, introduce financial aid terminology and help students gain a better understanding of the college financing process. Modules covering federal and private loans give learners an introduction to basic loan terminology as well as sound advice on borrowing. Additional modules to help students and borrowers are under development for release in coming years. In , HESC began work toward making all online financial literacy modules and other enhanced financial literacy information available to students and families on the agency s web site, HESC.org. In , a number of HESC staff began participating in a professional development and training program to become Certified Personal Finance Educators. This comprehensive program teaches financial principles and national financial standards and helps those working as financial educators become skilled communicators so they can help students understand and evaluate information available to them and make good financial choices. Certification ensures that agency representatives have been trained and tested in critical elements of financial management and have developed effective strategies for delivering effective plans to students and families. HESC also educates students on budgeting, establishing and maintaining good credit, and making sound financial decisions through an enhanced Financial Awareness and Consumer Training for Students (FACTS) program. The redesigned FACTs program now includes a workbook of materials and tools for students. HESC staff conducted in person FACTS presentations to thousands of students at sessions across the State throughout The program is available at HESC.org for use by high school and college counselors to help educate all New York State students. College Access Challenge Grant (CACG) Program HESC is the designated administering agency for the College Access Challenge Grant (CACG) program in New York State. CACG-NY seeks to improve college awareness, readiness, and attendance through early outreach to families with incomes below the poverty level, and through professional development of middle and high school counselors. The grant provided New York State approximately $8 million in federal funds over a two-year period. During , HESC awarded 8 sub-grants totaling approximately $3.2 million to schools, agencies and community-based organizations across New York State through a competitive Request for Proposal (RFP) process. Projects supported through sub-grants include: College readiness, academic skills building, and summer support programs; Assisting students with completing the Free Application for Federal Student Aid (FAFSA); Career planning strategies; New York State Higher Education Services Corporation 13

16 Youth advocacy and mentoring with college student partners; Conducting professional development for guidance counselors at middle and secondary schools, financial aid administrators, and college admissions counselors. HESC also worked with other State agencies to provide college access and success skills/services to targeted low-income students, including foster children and incarcerated youth and adults. NYGEAR UP Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP) is a national initiative that creates innovative programs that help low-income students prepare to enter and succeed in postsecondary education. NYGEAR UP maximizes college access for more than 8,000 economically disadvantaged and academically at-risk students in grades seven through twelve by providing academic and personal support services, including awareness of financial aid and the college admission process. Throughout , HESC partnered with each of the major sectors of higher education, as well as with colleges, universities and school districts, in administering New York s second six-year GEAR UP grant, to further the goals of this educational opportunity project. Working with community groups and businesses to mentor at-risk students, the programs provide necessary skills that will help these students access and succeed in their postsecondary education. New York s 529 College Savings Program New York s 529 College Savings Program provides New Yorkers with a convenient and low-cost way to save for college. As co-administrator with the Office of the State Comptroller, HESC is primarily responsible for the disbursement of New York s 529 Program funds to eligible educational institutions. With more than 584,000 accounts and over $7.8 billion in assets, HESC disbursed in excess of $250 million in , and has disbursed more than $2 billion on behalf of New York students and families for qualified higher education expenses since PRE-COLLEGE SERVICES Through a number of Pre-College services, HESC empowers students with the tools and information they need to be more confident and prepared for choosing a college and career. Student Outreach HESC connects directly with students and families to give them access to the vital information they need to prepare for college and a career through a vigorous statewide outreach program. In , HESC s Pre-College Services staff interacted with over 40,000 students and families at more than 60 college fairs and other outreach events throughout the State. These events provided opportunities for students and families to receive both immediate responses to their individual college financial aid questions, and general information relevant for all their college financing through distribution of HESC publications, including the anchor publications, How You Can Pay for College, How to Apply for Student Financial Aid, and the TAP/ NYHELPs Fact Sheet. High School Counselor Outreach and Support Students rely heavily on their high school counselors for direction, advice and guidance in choosing their paths for college and career. Through HESC s multi-faceted counselor outreach program, these professionals are provided with vital information they need to keep students and their parents informed about how to prepare for and pay for college. To support the work of high school counselors in , HESC: Worked closely with the NYS School Counselors Association, the NYC 14 New York State Higher Education Services Corporation

17 Department of Education and others to develop and deliver a comprehensive curriculum of counselor training to prepare students for post-secondary education; Offered on-site training for counselors from secondary schools, community organizations, other state agencies, county labor departments, foster care agencies, faith-based organizations and others involved in helping to make college accessible; and Provided financial aid professionals who presented at public workshops and events, explaining federal, state and institutional financial aid programs and offering college preparation and planning assistance. In fall 2009, HESC provided professional development training to elementary, middle and high school counselors at Guidance Expos held in four major urban areas throughout the State. These one-day workshops provided information on obtaining financial aid for college, completing the college application process, career exploration programs, and sessions on the unique needs of today s students. This statewide series is one of the largest counselor training opportunities in the nation. HESC empowers students with the tools and information they need to be more confident and prepared for choosing a college and career. HESC Counselors E-News, a quarterly electronic newsletter, covered timely college access, financial aid, and literacy topics for counselors in Counselors were kept up-to-date with feature articles about New York s grants and scholarships, new financial aid programs and initiatives, such as the New York Higher Education Loan Program (NYHELPs), and Student Financial Aid Awareness Month activities. Valuable online tools at HESC.org also served to assist counselors in advising students on choosing the right school and receiving the maximum financial aid for which they are eligible, including: A Comprehensive Guide to Grants, Loans, Scholarships and Other Awards How to Apply for Financial Aid How to Apply for TAP HESC has disbursed more than $2 billion on behalf of New York students and families for qualified higher education expenses since

18 Financial Aid Night Materials High School Calendar HESC e-library of Informative Articles and Podcasts Regents Requirements and link to Regents Review Live Information on Standardized Tests Explore NY s Colleges Advice on How to Choose a College College Fair Schedule Promoting awareness of available financial aid is key to fulfilling our mission of helping people pay for college. SFAAM: Student Financial Aid Awareness Month Promoting awareness of available financial aid is key to fulfilling our mission of helping people pay for college, and was the goal of the 2010 statewide Student Financial Aid Awareness Month (SFAAM) campaign. The campaign, Start Here, Get There, spread the message throughout the State that college aid is available and promoted the completion of the most important tool in securing that aid, the Free Application for Federal Student Aid (FAFSA). To support this effort, HESC developed a new, graphically-appealing Start Here, Get There microsite that featured an overview of the financial aid process, places to obtain help in completing the FAFSA, and a calendar of FAFSA completion and financial aid night events around the State where students and families could receive assistance directly from agency representatives and/or volunteering college financial aid administrators, at no cost. The 2010 campaign, which ran from January 25 through February 25, 2010, included 35 events throughout every region of New York State. Students and families participated in Financial Aid Information Days at local shopping malls, became better educated at Financial Aid Basics seminars, and received free personalized assistance at Complete the FAFSA Workshops at schools and Processing and communicating electronically streamlined HESC processes and reduced our environmental impact. 16

19 local community centers across the State, made possible by 105 volunteers from HESC and college financial aid offices. Plans to strengthen the agency s partnerships with community organizations are currently underway for 2011, and representatives will again offer workshops and seminars on completing the FAFSA at sites accessible to more students and families who need assistance. College Goal Sunday New York State s highest-need students also receive help completing the FAFSA through College Goal Sunday, a national program that brings together college financial aid professionals and other volunteers to help college-bound students complete the FAFSA. Begun in Indiana in 1989 as a joint project of the Indiana Student Financial Aid Association (ISFAA) and the State Student Assistance Commission of Indiana (SSACI), with funding from Lilly Endowment, Inc., College Goal Sunday is now funded by a grant from the Lumina Foundation for Education which is managed by the YMCA-USA. College Goal Sunday events are currently held in 39 states and the District of Columbia. New York s College Goal Sunday program is a collaborative public service project sponsored by HESC, the New York State Financial Aid Administrators Association (NYSFAAA) and hundreds of volunteer school counselors, college administrators, accounting professionals, teachers, parents, and others. New York s program focuses completely on assisting students and families in completing the online federal aid application, due to the added simplicity of a paperless process. In 2010, the program s fourth year, over 1,300 students and their families were served by more than 300 on-site volunteers at 24 high schools, college campuses and YMCAs across New York State. KEEPING THE COMMUNICATIONS CHANNELS OPEN Customer Service With today s ever-advancing technology, students and families prefer to access information electronically from applications to award notifications, from TAP to loans. Of the more than 711,000 TAP applications filed for the academic year, 86 percent were filed electronically using either HESC s automatic renewal process or our easy-to-use TAP on the Web application. HESC processed over 65,000 more applications electronically for than for the academic year. In addition, 70 percent of the almost 127,000 application updates received from students were submitted electronically using HESC s state-of-the-art online Change Form, and 1.25 million s were sent to notify students of award eligibility. In all, 98 percent of HESC s TAP communications were electronic. With HESC s e-fafsa link, New York proudly remained the only state with a direct link to the FAFSA approved by the U.S. Department of Education. Processing and communicating electronically also streamlined HESC processes and reduced our environmental impact. Administrator Training HESC Customer Relations staff continued to deliver high-quality, timely and relevant training to financial aid administrators throughout the State, presenting sessions at major association conferences including those hosted by the State University of New York Financial Aid Professionals (SUNYFAP), the New York State Organization of Bursars and Business Administrators (NYSOBBA), and the New York State Financial Aid Administrators Association (NYSFAAA). In addition, more than 450 financial aid professionals received training at HESC s statewide administrative workshops. Financial aid administrators receiving ongoing assistance from HESC representatives throughout the year during New York State Higher Education Services Corporation 17

20 individual college visits on topics including TAP, NYHELPs, electronic processing and reporting, and default management. HESC held its fifth annual HESC Symposium, attended by 180 financial aid professionals from across the State, in fall This highly-regarded professional conference featured renowned State and national speakers including Dr. Nancy Zimpher, Chancellor of the State University of New York, Laura Anglin, President of the Commission on Independent Colleges and Universities (cicu), Tim Ranzetta, CEO, Student Lending Analytics, and Jim McDonough, Director, New York State Department of Veteran s Affairs. The symposium provide New York s financial aid administrators with relevant professional development information and training. Electronic Media HESC.org Today s students regard the Internet as the go-to source for information. During , HESC redesigned its public web site, HESC.org, to maintain a fresh image while providing the vital information students and families needed during this time of significant changes in the student loan industry. The new design places greater emphasis on offering easy access to the services that are available to New York s students and families. Social Media Use of social media networking continues to remain high among teens and young adults. Understanding the technological environment utilized by students is key to ensuring that our information is accessed by the groups that need it most. As a result, HESC has increased its activity in this interactive communication arena. Facebook: HESC s Facebook page, New York Student Financial Aid, provides interaction with students in a format familiar to them. Through regular posts, on topics such as college access for high school students, paying for college, managing student loans and NYHELPs, and by answering visitors questions and comments, HESC helps students stay informed about financial aid issues. YouTube: With two billion views daily, YouTube is the most popular online video community. YouTube users fall within HESC s demographic range of 18 to 55 years of age so this outlet offers great potential for HESC. NYSStudentAid, HESC s YouTube channel, provides a site to house news reports featuring HESC representatives addressing financial aid issuess as well as the NYHELPs commercials. HESC plans to use YouTube more extensively by creating informational and instructional videos on a wide range of college access and financial aid topics. Twitter: HESC s Twitter enables the agency to promote news, financial aid tips and other information. Looking Ahead This past year has proven to be a year of solid performance in which the agency remained focused on the schools, students and families it serves amid volatile changes in the student loan industry saw the birth of the State s first and most widely available fixed rate student education loan program, and at the same time New York State celebrated 35 years of TAP. Students received what will be one of their last federal loans guaranteed by HESC, while we prepared to educate them on the new program for obtaining federal loans in academic year. For all 365 days of the State fiscal year, our commitment to putting students first permeated all activities of the agency. As we look ahead to , we will work to solidify our role in the new federal student loan environment so that we can continue to fulfill our commitment to students through the provision of vital services and programs that educate, inform and support students as they fulfill their mission of obtaining a college education. 18 New York State Higher Education Services Corporation

21 HESC.org provides all the financial aid and college planning information students need through the source they prefer the internet.

22 Financial Aid Programs for New York State Students Grants and Scholarships Name of Program Description of Program Accomplishments Tuition Assistance Program (TAP) Need-based grant program for full-time students. Provides up to $5,000/year to students who qualify. Provided $901.4 million in grants to more than 397,000 students. NYS Aid for Part-Time Study (APTS) Provides up to $2,000/year for part-time students who meet income eligibility limits. Provided more than $11.6 million in aid to nearly 18,000 students. NYS Scholarships for Academic Excellence Up to 2,000 scholarships of $1,500 are awarded each year to the top graduating scholar at each registered high school in New York State, and up to 6,000 scholarships of $500 are also awarded to other outstanding students. Awarded nearly $11.5 million in scholarships to 16,818 students. Robert C. Byrd Honors Scholarships Up to $1,500 in federal scholarship money for academically talented high school students. Awarded more than $2.4 million in scholarships to 1,637 students. NYS Memorial Scholarships for Families of Deceased Firefighters, Volunteer Firefighters, Police Officers, Peace Officers and Emergency Medical Service Workers Provides up to the cost of SUNY educational expenses for children, spouses and financial dependents of deceased firefighters, volunteer firefighters, police officers, peace officers and emergency medical service workers who have died as the result of an injury sustained in the line of duty. Awarded $813,000 in scholarships to 70 students. NYS Regents Awards for Children of Deceased and Disabled Veterans Provides $450/year to children of veterans who are deceased, at least 40 percent disabled, missing in action, or were a prisoner of war. Awarded $178,000 to 455 students. Veterans Tuition Awards Provides up to $1,000/semester ($500/semester for part-time study) to Vietnam, Persian Gulf, or Afghanistan veterans in college or in an approved vocational training program in New York State. Awarded nearly $6.4 million to 2,192 students. 20

23 Financial Aid Programs for New York State Students Grants and Scholarships (Cont d.) Name of Program Description of Program Accomplishments NYS World Trade Center Memorial Scholarship Provides up to the cost of SUNY educational expenses for children, spouses and financial dependents of those killed or seriously disabled in the September 11, 2001 terrorist attacks. Awarded nearly $8 million to 595 students. NYS Regents Health Care Opportunity Scholarships Provides $10,000/year to economically disadvantaged or historically underrepresented minority students in New York State medical or dental schools. Awarded $172,000 in scholarships to 18 students. NYS Regents Professional Opportunity Scholarships Provides $1,000-$5,000/year to economically disadvantaged or historically under-represented minority students studying for degrees in 24 professions at New York State schools. Awarded $606,000 in scholarships to 187 students. NYS New York State Volunteer Recruitment Service Scholarship Provides up to the cost of SUNY tuition to volunteer firefighters and ambulance personnel who are enrolled in an approved undergraduate degree program in New York State. Awarded nearly $1.3 million in scholarships to 370 students. Military Service Recognition Scholarship Provides up to the cost of SUNY educational expenses for children, spouses and financial dependents of members of the armed forces of the United States or state organized militia who, at any time on or after Aug. 2, 1990, while New York State residents, died or became severely and permanently disabled while engaged in hostilities or training for hostilities. Awarded $229,000 in scholarships to 20 students. Senator Patricia K. McGee Nursing Faculty Scholarship This competitive award is made to licensed nurses who study to become nursing faculty and agree to serve as a teacher in a facility in New York State. Payments are available for up to three years of study. Recipients must complete their master s program within three years of receiving this scholarship. Awarded $1.5 million in scholarships to 98 students. 21

24 Financial Aid Programs for New York State Students Grants and Scholarships (Cont d.) Name of Program Description of Program Accomplishments Flight 587 Memorial Scholarship Provides up to the cost of SUNY educational expenses for families and financial dependents of victims of the crash of American Airlines Flight 587 on Nov. 12, Awarded $238,000 in scholarships to 23 students. Flight 3407 Memorial Scholarship Provides financial aid to children, spouses and financial dependents of individuals killed as a direct result of the crash of Continental Airlines Flight 3407 on February 12, Awarded $238,000 in scholarships to 23 students. NYS Math & Science Teaching Incentive Scholarship The NYS Math & Science Teaching Incentive scholarship provides grants to eligible full-time undergraduate or graduate students in approved programs that lead to math or science teaching careers in secondary education. Awarded $1.5 million in scholarships to 304 students. New York Lottery - Leaders of Tomorrow Scholarship The New York Lottery - Leaders of Tomorrow Scholarships are awarded to one student from every public and non-public school with experience in extracurricular activities and community service and who has demonstrated leadership skills. For study in New York State. Awarded $4 million in scholarships to 3,601 students. 22

25 Financial Aid Programs for New York State Students Loan Forgiveness Programs Name of Program Description of Program Accomplishments Nursing Faculty Loan Forgiveness Incentive Program The maximum lifetime award under this program is the lesser of $40,000, paid in the amount of $8,000 for each annual period of qualified service completed, or the applicant s actual eligible student loan amount at the time their eligibility is established. Paid $517,000 to 69 licensed registered nurses. NYS Licensed Social Worker Loan Forgiveness Program The maximum award under this program will be $26,000 or the applicant s eligible student loan indebtedness at the time they apply, whichever is less. Awards will be paid in annual disbursements for each period of qualified service. Annual disbursements will be equal to $6,500 or their remaining loan indebtedness. Paid $799,000 to 130 licensed social workers. District Attorney Loan Forgiveness Program District Attorney Loan Forgiveness awards are offered to retain experienced attorneys employed in district attorney offices throughout New York State. Awards will be paid in disbursements up to $3,400 per year. The maximum lifetime total award an eligible attorney may receive under this program is $20,400 or the cumulative total of their eligible student loan expenses at the time they first apply, whichever is less. Paid nearly $2 million to 580 eligible district attorneys. 23

26 Financial Aid Programs for New York State Students Federal Family Education Loan Programs Name of Program Description of Program Accomplishments Federal Stafford Loans (Subsidized) Available to all students demonstrating financial need who are enrolled at least half time in a program leading to a degree, certificate, or diploma. Federal government pays interest while student is in school. The interest rate is fixed at 6 percent. Guaranteed nearly $1.3 billion for more than 290,000 loans. Unsubsidized Federal Stafford Loans Available to all students, regardless of financial need, who are enrolled at least half time in a program leading to a degree, certificate, or diploma. The interest rate is fixed at 6.8 percent. Guaranteed nearly $1.4 billion for nearly 299,000 loans. Federal PLUS Loans Available to all parents or stepparents, and legal guardians (regardless of income as long as they do not have an adverse credit history) of dependent students and available to graduate students. Up to the student s cost of attendance, minus any other financial aid, may be borrowed. The interest rate is fixed at 8.5 percent. Guaranteed more than $823 million for more than 51,000 loans. Federal Consolidation Loan Program Allows borrowers with more than one loan to combine them into one new loan for repayment. Guaranteed nearly $2.3 million for more than 100 loans. 24

27 Financial Aid Programs for New York State Students Loan-Related Programs Name of Program Description of Program Accomplishments Default Aversion Assistance Request (DAAR) Lenders ask HESC to help resolve problems which borrowers have making their payments. Received and resolved more than 624,741 DAARs for more than $4.7 billion. Rehabilitation Loan Program Allows borrowers who have made 9 consecutive payments to have their loans removed from default. Rehabilitated nearly $109 million in loans for more than 7,224 borrowers. Renewed Eligibility for Title IV Aid Allows borrowers who have made six consecutive, voluntary payments to become eligible for additional aid. Payments must be made every month, even if borrower returns to school full time, to maintain eligibility. Renewed aid eligibility for more than 1,945 borrowers. Smart Pay Program Allows borrowers with defaulted loans to have their payments deducted from their bank accounts. Received nearly 15,433 payments from borrowers who took advantage of this repayment method and paid more than $2.5 million. 25