Missouri Department of Higher Education and Workforce DevelopmentMDHE Digest Newsletter - August 2009
Department of Higher Education
MDHE Digest Online
Printable Version
August 2009
In the Spotlight: Default Prevention School of the Month, Mineral Area College
Student Peer Leaders are an integral part of the orientation program at Mineral Area College (MAC), a community college located in Park Hills, Missouri. Upper level students mentor new students, providing a strong foundation for a successful college career. The Student Peer Leaders meet with new students during the orientation program to answer questions and provide their perspective about the college experience. They also make themselves available to assist the students throughout their college careers.
Since its inception, the MAC Student Peer Leadership Program has had a profound impact on the students it serves. During a recent survey, program participants indicated that peer leader contact is one of the most helpful activities provided during the MAC orientation program. Statistics show that the majority of students who had contact with a Student Peer Leader during new student orientation met academic progress requirements, making them much more likely to stay in school and graduate on time. Successful students are also generally more successful at repaying their loans.
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Economic Tidbit courtesy of the MDHE Default Prevention Team:
Avoiding Rental Car Surprises
Are you planning to take a last-minute vacation or trip later this year? If so, you may want to revisit your travel plans to determine the best mode of transportation for your buck. Vacationers and travelers who are planning to cut travel costs with a rental car may be in for a huge shock when it comes time to fork-over payment. As explained by the Jason Alderman, Director of Practical Money Skills for Visa, overlooking the smallest factor can impact your car rental budget in a major way.
Avoiding Rental Car Surprises
Many folks plan summer vacations that involve a lot of driving. For those sticking close to home, gas and maintenance are usually the biggest car-related expenses. But if you're planning to rent a car at your destination, many other factors can influence the overall impact on your travel budget.
Here are a few potential rental car expenses you may not have considered:
Tourism taxes- Many hard-hit local governments have implemented a variety of taxes on lodging, airport usage, rental cars and other services more likely to impact tourists than local residents. Factor these into your budget.
Insurance- Car rental agencies typically offer their own collision, liability, theft and other insurance coverage. Conventional wisdom says you should avoid this route if your own insurance plans - or benefits available from your credit card - provide similar coverage.
Before automatically rejecting rental agency coverage, however, contact your insurance company and credit card issuer to make sure you are fully covered. Consider factors such as:
- Rental period
- Car model
- Travel outside specified service areas
- Whether you carry comprehensive and collision coverage on your own car; if you don't, you may not be covered for a rental by your insurance carrier
- What happens if you violate rental agreement terms (e.g., allowing unauthorized drivers).
If you decide to forego agency coverage, bring along your proof-of-insurance card. One additional caution: Many standard rental contracts default to "yes" for each type of insurance, so you must specifically write "no" to any coverage you don't want.
Find the right car. You can comparison shop at websites like www.expedia.com, www.orbitz.com, www.hotwire.com or www.priceline.com, order a car directly through individual rental agency sites, or buy a package deal including airfare and lodging.
In addition, discounts from membership organizations like AAA, AARP or frequent flyer programs can be substantial. Rates vary widely, so be prepared to wade through numerous choices for car models and features.
Besides flat daily rental charges, factor in potential deal-breakers including airport shuttle convenience, fees for mileage exceeding a basic allowance, fees to return the car in another city (sometimes astronomical), late return fees, gas tank refilling charges, fees for additional drivers, surcharges for drivers under 25 - the list goes on.
Make sure you see and understand all fees and taxes before locking in a reservation. Then, check back periodically for better deals - there's usually no penalty to cancel a reservation.
Inspect the car. Before you drive off the lot, thoroughly inspect the car, inside and out, for any pre-existing damage and have it noted on your contract; otherwise you could receive a hefty bill for even the most minor scratches and dents. Likewise, when you return the car, consider taking time-stamped photos or video to prove it was in good shape.
A rental car is only one element of your vacation budget. Visa Inc.'s free personal financial management site, Practical Money Skills for Life (www.practicalmoneyskills.com/travel), features many vacation budgeting tools including a web-based calculator that suggests various travel options and then automatically tallies the results.
Enjoy your vacation. Just make sure you don't blow your budget on unnecessary rental car expenses.
Compliance Questions and Answers
Question: My institution is looking at implementing a new disbursement schedule, which would not disburse SFA funds until after the 60 percent point of the payment period. Is this course of action permissible?
Answer: No. The Federal Student Aid Handbook clearly states that SFA funds must be provided to students in a timely manner to best assist the student to pay for educational expenses. Schools are not authorized to delay a student's disbursement until after the 60 percent point of the payment period to avoid performing a Return of Title IV (R2T4) calculation.
Citation: 2008-2009 FSA Handbook, Volume 3, pg. 11.
Updates to the Eligible Lender List
Contact: Jill Wilson
(573)526-7356
ADDITIONS: None
CHANGES:
1st Student Financial Corporation, OE 833946
Effective June 30, 2009, 1st Student Financial Corporation merged with Acapita Education Finance Corporation. To reflect the merger, the lender name has been changed to Acapita Education Finance Corporation.
Amerifund Education Corporation, OE 833732
Effective June 30, 2009, Amerifund Education Corporation merged with Acapita Education Finance Corporation. To reflect the merger, the lender name has been changed to Acapita Education Finance Corporation.
Brazos Educational Assistance, OE 833228
Effective June 30, 2009, Brazos Educational Assistance merged with Acapita Education Finance Corporation. To reflect the merger, the lender name has been changed to Acapita Education Finance Corporation.
Global Educational Finance Corporation, OE 834142
Effective June 30, 2009, Global Educational Finance Corporation merged with Acapita Education Finance Corporation. To reflect the merger, the lender name has been changed to Acapita Education Finance Corporation.
Pecos Student Finance Corporation, OE 833285
Effective June 30, 2009, Pecos Student Finance Corporation merged with Acapita Education Finance Corporation. To reflect the merger, the lender name has been changed to Acapita Education Finance Corporation.
Wachovia Education Finance, 830005
As reported in the July Digest, Wachovia-funded Federal PLUS loans for both parent borrowers and graduate student borrowers will no longer be disbursed through ATOM for loans guaranteed on or after July 15, 2009.
DELETIONS:
US Bank, OE 804609, 822908, 802844, 814548, 834368
Beginning September 26, 2009, U.S. Bank will suspend the origination of FFELP loans until further notice. U.S. Bank will continue to support students and schools by processing completed master promissory notes and school certifications received no later than September 25, 2009. Funding will continue as scheduled for all approved loans. However, loans must be fully disbursed by September 15, 2010.
KCB Bank, 826206
As reported in the July Digest, KCB Bank has announced its departure from the student loan industry and will no longer accept new guarantees on or after July 1, 2009. KCB will honor any disbursements for loans guaranteed prior to this date.
Staff News
Due to a planned move to Springfield, Missouri, Jay Patterson resigned his position as program specialist with the MDHE's Claims and Collections unit last month. Jay's position has been filled by Tom Storms, who joined the MDHE staff on August 1. Tom brings with him two years of experience as an admissions representative at William Woods University. As a part of the Claims and Collections area, Tom will assist in addressing outstanding loan discharge and forgiveness issues as well as evaluating performance and overseeing day-to-day operations of the MDHE's contracted collection agencies. Tom will also be responsible for providing technical assistance to staff relating to data integrity testing, research projects, internal controls, and student loan operations.
Verifying Citizenship Status
During the 2009 legislative session, legislators passed HB 390, which was supported by the MDHE and higher education institutions and which significantly revises last year's immigration omnibus bill, HB 1549. Gov. Nixon signed HB 390 on July 7, and the bill took effect immediately due to an emergency clause. In late July, the MDHE added a new page to dhe.mo.gov providing details about the citizenship verification changes. Any questions may be directed to your MDHE client service representative.
Federal News
By Robert Powell, MDHE Policy Analyst
A brief summary of financial aid related national news items is listed here, along with links for further information.
Final rules on Private Education Loans
On July 30, 2009, the Federal Reserve Board approved the final amendments to Regulation Z (Truth in Lending) regarding private education loans. These regulations were in response to changes made by the Higher Education Opportunity Act (HEOA) that put private education loans under the governance of the Truth in Lending Act and the Federal Reserve Board.
Proposed regulations by U.S. Department of Education
In follow up to the Negotiated Rulemaking sessions held earlier this year, the Department has issued three sets of Notices of Proposed Rulemaking (NPRMs). These proposed regulations are in response to the statutory changes made by the HEOA and would go into effect on July 1, 2010. A 30-day comment period has been set for each NPRM, and comments may be submitted at www.regulations.gov. Currently, there are only two sets of HEOA-related NPRMs still pending. The recently issued NPRMs are:
Red Flag enforcement delayed until November 1, 2009.
The Federal Trade Commission (FTC) has again delayed enforcement of the "Red Flags" rule until November 1, 2009. In addition, the FTC is increasing efforts to help institutions comply with this rule including the creation of a new Website with information on creating an identity theft program.
Register Now for MDHE Fall Workshops
Opportunities to attend FREE, local professional development trainings are few and far between. At a time when many financial aid officers (FAOs) are facing tight budgets and travel limitations, the MDHE can help you ease your economic woes with our annual fall workshops.
The MDHE looks forward to supplying you with the skills and resources necessary to tackle whatever the upcoming academic year brings your way. Whether you're interested in hearing more about Missouri's Imperatives for Change plan or learning how to prepare for a program review, our fall workshops will provide you with information essential for maintaining a successful financial aid office during these challenging times. Don't miss out on this outstanding opportunity. Register for one of the four statewide fall workshops today.
Online registration is now available for the following dates and locations:
September 23 - Columbia, Courtyard Marriott
September 24 - Kansas City, Adams Pointe Conference Center
September 29 - Springfield, Doubletree Suites
September 30 - St. Louis, Crowne Plaza (St. Louis Airport)
2009 Workshop Agenda
8:00-8:45
Registration, Breakfast, & Check-in
9:00-9:15
Welcome
Greetings and introductions
9:15-10:15
Celebrating 30 Years
Opening Session
Presenters: Leanne Cardwell, Shellee Kilbride, and Julie Meyer
10:30-11:45
Breakout Sessions
- RSVP: Simple Digital Forms
Learn how to create and transform any document into an interactive, fillable Portable Document Format (PDF) file
Presenters: Amanda Brown and Chris Hager
- Painting the Town Red (or not): Financial Literacy
Best practices in teaching financial literacy, including recent data from a 2009 MDHE survey of delinquent and defaulted borrowers
Presenters: Marilyn Landrum and Sarah Schedler
- Imperatives for Change: Building a Higher Education System for the 21st Century
Celebrate the future by hearing about Missouri's coordinated strategic plan (Imperatives for Change) for guiding higher education over the next 15 years
Presenter: Brian Crouse
12:00-1:00 Lunch
1:00-2:00
Breakout sessions
- Celebrating Success: "Surviving" a Program Review
How to prepare for and what to expect during a school program review
Presenters: Joy Frazier and Holly Wolfe
- State Aid & FAMOUS Merrymaking
An update on Missouri's state aid programs
Presenter: Kelli Reed
2:15-3:15
- Industry Bash: Regulatory & Legislative Updates
The latest industry news and the impact it could have on your office
Presenter: Robert Powell
Planning & Paying
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