State Financial Aid Programs Review

Office of Student Financial Assistance | June 23 – 24, 2015

2015-2016
Clantha McCurdy
Senior Deputy Commissioner
Robert Brun
Associate Commissioner
Alison Connolly
Assistant Director – Student Loan Programs
Oliver McArdle
Senior Program Manager
PRESENTERS

2015-2016
8:30 – 9:00 Registration & Continental Breakfast
9:00 – 9:15 Welcome & Introductions
9:15 – 9:45 DHE Policies & Legislative Update /
OSFAYear in Review
9:45 – 10:45 State Financial Aid Programs Review
10:45 – 11:00 Break
11:00 – 12:30 Financial Aid Programs Review (Continued)
12:30 – 1:30 Lunch
1:30 – 3:00 No Interest Loan Program Review
Workshop Agenda

2015-2016
Public College Financial Aid Programs

Public College Programs
 Need-base grant awarded to full or part-time students
 $27 million allocated in FY 2015 – level funding in FY 2016
 Approximately 30,000 assisted each year
 Campus allocation is formula-driven
 New funding model implemented in FY2012
 Model is based on a formula that considers three-year
average of key factors:
- Institutional enrollment
- EFC = O – Pell EFC – (revised annually, as required)
- EFC = Pell to 10,000 (equivalent to median income)
Cash Grant Program

 Notification of FY 2016 Allocations sent to campuses in
mid-May
 Funds scheduled for two equal disbursements, fall and
spring (anticipated for September and January)
 Funds may be awarded to full and part-time students
 Grants may be awarded up to the cost of tuition/fees
(student)
 Institutions are required to reconcile and submit an
aggregate report to OSFA at close of each fiscal year
Cash Grant Program

 Over 26 various waivers offered annually
 Cost to the Commonwealth generally exceeds $50 million
 List of more popular waivers include the following:
 John & Abigail Adams Scholarship
 Need-BasedTuition Waiver
 Categorical Waivers
 Foster Child Tuition Waiver
 Adopted ChildTuition Waiver
 Valedictorian Waiver
 National Guard Waiver
 PaulTsongasTuition Scholarship Waiver
 MassTransferTuition Waiver
TuitionWaivers

 Need-Based Waiver is the largest of all waiver programs, averaging
$19m annually
 FY 2016 allocation for the Need-BasedWaiver is based on new
funding model (identical to formula used for the Cash Grant)
 Expenditure level periodically increased to reflect changes in
enrollment and eligibility demands
 Over the year, OSFA has clarified the FAFSA requirement for certain
waivers via the Dear Colleague letter
 Institutions are required to reconcile and report all awarded waivers
as part of the annual year-end data submission
 Year-End Financial Aid Data File will include identifier for a larger
number of the waiver programs
TuitionWaivers

 Implemented in 2004 - with a cohort of 13,000 students designated
to receive scholarship in first year of college, starting fall 2005
 Approximately 18,000 designated annually in the last four years –
which seems to have peaked
 Roughly 30% of students from each new class take advantage of
the scholarship
 Award equals value of tuition only – ranging up to $1,742
 Recipient must enroll full-time
 Cumulative GPA of 3.0 minimum to maintain scholarship
John & Abigail Adams Scholarship

John and Abigail Adams Scholarship

 BHE approved amended guidelines in March 2011
 Incorporates the ScienceTest as a selection criteria, effective with
high school graduation class of 2016
▪ Student must achieve at least one advanced score and at least
proficient on other tests, which when combined, must rank in the top
25% of all district scores to be designated as an Adams Scholar
 Provides up to six years for designated students to receive the
eight semesters of tuition scholarship waiver
▪ Allows greater flexibility to the student
▪ Removes the “consecutive” semester enrollment requirement
▪ Allows student to enroll less than full-time or not at all, and resume
eligibility upon the return to full-time status
▪ Student must continue to meet all other criteria – FAFSA Completion,
GPA, etc.

 Amended guidelines, cont’d
 Extends eligibility to students who do not initially enroll in a public
college or university immediately following high school graduation
▪ Student may begin college at a non-public institution and transfer to
public
▪ Must transfer with a minimum 3.0 GPA
▪ Student may also take a “gap” year or simply delay enrollment
▪ Student is no longer eligible once the six year mark after graduation is
reached
 Grants appeal approval to Commissioner’s “designee”
▪ All appeals for continued eligibility will be handled by OSFA
▪ Appeals granted if extenuating or unusual circumstances can be
documented. Students should not be encouraged to appeal if
circumstances do not meet criteria

 Duplicate letters of eligibility are available from the MA
Department of Elementary and Secondary Education
 (781) 338-3625 OR (781) 338-3640
 Adams Appeals may be submitted to the following:
 Adams Scholarship Committee
Massachusetts Department of Higher Education
454 Broadway, Suite 200
Revere, MA 02151
 Evidence of extenuating circumstances required
 Must include appeal, copy of transcript and documentation to
support extenuating circumstance

 Applies toVeterans, Senior Citizens and Native Americans
 Recipient may possess a prior bachelor’s degree – Senior
Citizens Waiver
 Institution must waive state-supported courses
 Encouraged to waive non-state supported costs
 Courses must be applied to an eligible certificate or degree
program
 Requires recipient to be matriculated
CategoricalWaivers

2015-2016
Financial Aid Programs

 Created in FY 2006 with a $1m initial appropriation; funding grew to
$4 million in FY 2008 and FY 2009
 Average expenditure is approximately $3.4 million last three fiscal
years, anticipate similar funding in FY 2016
 Awards cover cost of tuition, fees and some related costs for up to
three courses (9 credits) per semester for an undergraduate program,
where appropriate
 One-year minimum employment as an early educator or provider for
eligibility
 Award values will remain unchanged in 2015-2016, but a credit limit
may be imposed
Early Childhood Educators Scholarship

Maximum award amounts
 Public University
 $500 per credit, maximum of $4,500 per semester
 Private College/University
 State University
 Community College
2016-17 Application – April 1, 2016 – June 1, 2016

ECE Scholarship fully integrated into MASSAid System
 From OSFA website under the ECE Scholarship program or Student Portal - applicant
selects:
How Do I Apply? …….and must follow prompts below:
 MANDATORY REQUIREMENT: If you have not already done so, please complete the 2016-2017 Free
Application for Federal Student Aid (FAFSA)
 MANDATORY REQUIREMENT: If you do not already have a MASSAid account you may click here to
create a MASSAid Student Portal account
 MANDATORY REQUIREMENT: Applicants must have an EEC Professional Qualifications Registry
Number to be considered for the ECE Scholarship.
Applicants who do not have an EEC PQ Registry Number will need to follow this link to the PQ Registry:
https://www.eec.state.ma.us/PQRegistry/
 MANDATORY REQUIREMENT: Complete your 2016-2017 ECE Scholarship application in the MASSAid
Student Portal system

 Institutions may complete certification and payment process
online via the MASSAid system
 Certification opens:
 August 24, 2015 – Fall
 January 25, 2016 - Spring
 Similar to process used for the MASSGrant program,
certification and request for payment may be controlled by
institution – within dates set by OSFA
 Institutions should assign a contact for the ECE Scholarship
program within the MASSAid system
 Institution can also review student award status in MASSAid

 Provides grants to currently employed public school
paraprofessionals who wish to become certified to teach
at K-12 level
 Recipients must meet a two-year minimum employment
requirement as a paraprofessional in a Massachusetts
public K-12 school
 Grants may be awarded to paraprofessionals with less
than two years of employment if enrolled in a high-need
discipline (Mathematics, Science, Foreign Language)
ParaprofessionalTeacher Preparation Grant

 Grants are awarded on a per credit basis, with a maximum
semester/year total determined by institution type -
public or private
 Recipients must teach for a specified time, based on
number of semesters awarded
 An average of 400 students participate in this program
annually
ParaprofessionalTeachers Preparation Grant

Maximum award amounts
 Public University
 $625 per credit, maximum of $7,500 per academic year
 Private College/University
 State University
 Community College
2016-17 Application available - April 1, 2016 - June 1, 2016

2015-16, PTPG integrated into MASSAid System
 From OSFA website under the PTPG program or Student Portal - applicant selects:
How Do I Apply?........and must follow links below:
 Paraprofessionals interested in applying for the grant must complete the following:
 MANDATORY REQUIREMENT: If you have not already done so, please complete the
2014-2015 Free Application for Federal Student Aid (FAFSA)
 MANDATORY REQUIREMENT: If you do not already have a MASSAid account
you may click here to create a MASSAid Student Portal account
 MANDATORY REQUIREMENT: Complete your 2014-2015 ParaprofessionalTeachers
Preparation Grant
application in the MASSAid Student Portal system

 Institutions must complete the PTPG certification and
payment process online in the MASSAid system
 Similar to process used for MASSGrant program,
certification and request for payment may be controlled
by institution – within dates set by OSFA
 Certification opens
 August 24, 2015 - Fall
 January 26, 2016 - Spring
 Institutions should assign a contact for the PTPG program
within the MASSAid system
ParaprofessionalTeacher Preparation Grant

 Formula allocation
 Student EFC = 0-5198 (Pell Eligible)
 6-11 Credits (or the equivalent)
 Eligible Degree or Certificate Program
 Awards Range from $200 - $850 (based on institution)
 Student may receive maximum award in one semester
 2015-2016 Institution Application currently available – Deadline
July 24, 2015
Part-Time Grant

SCHOOL TYPE AWARD EFC
INDEPENDENT $200 $850 0 - 5198
PUBLIC UNIVERSITY $200 $750 0 - 5198
PUBLIC STATE UNIVERSITY $200 $550 0 - 5198
COMMUNITY COLLEGE $200 $450 0 - 5198
NURSING $200 $400 0 - 5198
PROPRIETARY $200 $300 0 - 5198
VOCTECH $200 $250 0 - 5198
Part-Time Grant

 Institutional allocation – formula-driven and based on a three-year
average, beginning 2013-2014
 2015-2016 Institution Applications currently available – Deadline
July 17, 2015
 Recipients must meet all eligibility criteria, including full-time
enrollment
 $200 - $2500 annual maximum award
 Recipient must demonstrate a $500 minimum need to be eligible
 Year-End data required and matched
Gilbert Grant

 Deadlines forYear-End reconciliation reports and for
continued participation in State programs based on
allocations are as follows:
 July 17, 2015 - Gilbert Grant Program
 July 24, 2015 - Part-Time Grant Program
 July 31, 2015 - Cash Grant & Need-BasedTuition Waiver
Program Deadlines

Christian A. Herter Memorial Scholarship

 Competitive scholarship awarded to students who have
encountered unusual hardships or extenuating circumstances
 Twenty-five high school (sophomore or junior) students are
selected to receive scholarships upon earning a high school
diploma annually
 Scholarship is portable to colleges throughout the U.S.
 About one-third of the recipients are enrolled in colleges
outside Massachusetts each year
 Massachusetts award an average of $1 million in scholarships
to students annually

 Institution asked to complete Herter Financial Aid
Information Form to establish Cost of Attendance and
need
 Award process initiated once fiscal year budget is
approved
 Herter used to meet unmet need – and reduce loan debt,
if appropriate
 Funds are disbursed via (paper) check and EFT in late
August for fall; late December for spring

 Originally funded in FY2013
 To be eligible for the MHDS, a student must be enrolled in
a high demand degree program in a Massachusetts public
institution
 The purpose of the program is to encourage degree
completion in high demand disciplines helping to address
workforce needs in the Commonwealth
 The scholarship supports training and degree completion
in disciplines that are deemed to be critical shortage areas
(ex. Nursing, Sciences, Engineering, IT)
High Demand Scholarship Program

 The High Demand Scholarship Program has seen reduced
appropriation since its inception in FY2013
 Currently there is no new application process available and awards
are made for previous recipients who are persisting in approved
high demand fields
High Demand Scholarship Program
FY2013 FY2014 FY2015
Students Award Students Award Students Award
799 $2,035,500 595 $621,351 292 $606,675

High Demand Scholarship Awards
Academic Year Sector Half Time Award Full Time Award
Spring 2013 Community College $1,000 $2,000
State University $1,375 $2,750
University of Massachusetts $1,625 $3,250
Spring 2014 Community College $806 $806
State University $1,031 $1,031
Spring 2015 Community College $600 $1,200
State University $975 $1,950
 Since the programs inception, scholarship recipients have received
awards for the Spring semester only

2014-2015
Programs for Adopted and Foster Children

Adopted and Foster Child Fee Assistance Program
Provides for full tuition and fee waivers, based upon legislative
appropriation, for foster children in the custody of the Department of
Children and Families (DCF) and children adopted through this agency
that choose to attend a Massachusetts public institution of higher
education
 Program was initially funded in FY 2010
 Fee waiver awards are generally paid out as reimbursements
for eligible billed fees.
 FY2014 was the first year where 100% of all eligible fees were
reimbursed.
 The number of students assisted each year has shown a steady
increase , growing from 550 in FY 2010 to just over 900
students in FY 2015

The Adopted and Foster Child Fee Assistance Program fully migrated
to the MASSAid system in Spring 2015
All Spring 2015 eligibility determination and awarding was done
through MASSAid
Fall 2015 processing will begin on September 1, 2015 and extend until
November 15, 2015. Spring processing will open in early 2016
Due to limited appropriation, OSFA will review any students
submitted after the MASSAid deadline on a funds available basis with
no guarantee of fee assistance awards
With the migration to MASSAid, all DCF eligibility documentation
submissions are tracked by the system

Adopted and Foster Child Fee Assistance Program FAQ’s
 Students must be 24 or under as of September 1, 2015 to
receive funding during 2015-2016
 If they turn 25 during the academic year they may continue to participate
 Out of state students who were adopted through MA DCF by an
eligible MA resident or eligible MA state employee may
participate in the fee assistance program
 Out of state students must have a current FAFSA on file and have
submitted DCF eligibility documentation to their campus
 Out of state students are only eligible for fee assistance equivalent
to the in state resident rate and are responsible for any billed fees
above that amount
 Campus must submit a hard copy of the students FAFSA to OSFA
to complete eligibility review
Adopted and Foster Child FeeWaiver Program

Adopted and Foster Child Fee Assistance Program FAQ’s
(cont).
 Students cannot receive fee assistance for summer credits
 DCF eligibility documentation must originate from the
Department of Children and Families. OSFA has no ability to
provide this documentation to students
 Students should contact DCF to obtain their eligibility document
 Students can use fee assistance funds for international credits,
but only if the credits are considered state supported
 Campus must be collecting tuition and fees on behalf of the
Commonwealth and not the international institution.
Adopted and Foster Child FeeWaiver Program

 Awarded as a “Last Dollar” grant
 Requires student to sign an extended Care and
Protection Agreement with DCF
 Maximum award = $6,000
 Grant is portable within the USA
 Grant used to meet need and/or replace loans
 Average of 250 students awarded annually
Foster Child Grant

 File of eligible students is uploaded to MASSAid
by Department of Children and Families (DCF)
 A Foster Child Grant record is created for all
students on the DCF list who have a FAFSA on file
 Letters are generated for students who have an
ineligible condition
 Ineligible conditions that are specific to FCG :
dependent student, age cut-off
Foster Child Grant

Foster Child Grant
Award Rules

Foster Child Grant

Foster Child Grant
Financial Aid Information Sheet

 Eligible students who demonstrate need are
automatically packaged at the time schools
submit financial aid data
 Students who are packaged go to a “Ready to
Certify” status
 Schools separately certify each student’s
eligibility for the program
Foster Child Grant

Program Participation Agreement & Attestation Requirements

Participation Agreement
 Last Program Participation Agreement was signed by
eligible institutions as of award year 2013-2014
 Participation Agreement extends eligibility from July
1 to June 30 of each award year
 Institutions that have remained eligible for State
financial aid programs will receive a letter of
continuance of the above Participation Agreement
for award year 2015-2016
 The letter of continuance will be mailed to schools
prior to July 1
2015-2016 Program Participation Agreement

MASSAid
 States that currently have reciprocity agreements with
Massachusetts include:
Rhode Island
Connecticut
Vermont
Pennsylvania
District of Columbia
 The absence of reciprocity does not affect all state financial aid
programs
Reciprocity Agreements with other states

Attestation Requirements
 Letters specifying each institution’s FY15 attestation
requirement have been mailed
 A school either has to submit a copy of itsTitle IV Audit
Report or a Compliance Attestation Report of
Massachusetts State financial programs
 Attestation or audit reports are due 6-9 months following
the end of the institution’s fiscal year
 The OSFA Attestation Guide last updated in June 2014
remains in effect and is available on OSFA’s website
FiscalYear 2015 Attestation Requirements

Attestation Requirements
 Institutions will continue to electronically submit their attestation
reports to OSFA via the Executive Office of Education’s Drop Box at:
https://gateway.edu.state.ma.us/
 To add or remove EOE Drop Box users, institutions should submit
requests to:
Judi Kennedy
jkennedy@osfa.mass.edu
OR
Robert Brun
rbrun@osfa.mass.edu
FiscalYear 2015 Attestation Requirements

MASSGrant
 MASSGrant provided assistance to over 53,000 students in
2014-2015
 As of 06/10/2015, the MASSGrant program disbursed a total
of $41,634,603 (compared to $38,586,311 in 2013-2014,
around same time)
 2014-2015 MASSGrant year-end reconciliation process
begins as of July 1
 2014-2015 MASSGrant year-end reconciliation is to be
completed by mid August
 Any refund owed by a school as a result of year-end
reconciliation will automatically carry over to the 2015-2016
award year, until resolved by the institution
2014-2015 Highlights and Activities

MASSGrant
EFC Range Number of Students % of Population
0-200 31,141 58.35%
201-500 1,716 3.22%
501-1000 2,569 4.81%
1001-1500 2,542 4.76%
1501-2000 2,488 4.66%
2001-2500 2,368 4.44%
2501-3000 2,206 4.13%
3001-3500 2,177 4.08%
3501-4000 2,029 3.80%
4001-4500 1,908 3.58%
4501-5157 2,226 4.17%
53,370
Distribution of 2014-2015 MASSGrant Paid Group by
EFC Range

MASSGrant
 To date, OSFA has loaded over 280,000
unduplicated ISIR records
 OSFA already has mailed over 193,000
MASSGrant ineligible letters
 Students receive an e-mail notification of the
letter as soon as it is generated
 Students are able to access their MASSGrant
record via our StudentWeb Portal with a
MASSAid user account
2015-2016 Processing ActivitiesTo Date

MASSGrant
Correcting 2015-2016 Ineligible Records
 Students have (3) weeks to resolve all MASSGrant
ineligible conditions
 New ISIR correction transactions received from CPS are
loaded nightly to MASSAid, as much as students and
schools can make updates to existing records at any time
 Students can update their MASSGrant records on-line and
recalculate their eligibility when reporting the following:
a change in enrollment status
a change in school they will attend
a change in degree they are working toward

MASSGrant
 Schools users have either “View Only” or “Update” access
to MASSAid, as directed by financial aid offices
 At the time of first logon, school users are required to
change their password and recommended to register their
computer
 A school user is automatically locked out of the system
after 3 unsuccessful login attempts
 If a school needs to add/remove a user or unlock a user
account, it should contact Alex Gediman or Robert Brun at
agediman@osfa.mass.edu and rbrun@osfa.mass.edu,
respectively
School Access to MASSAid

MASSGrant
 MA residency discrepancy (student or parent) requires
student to submit documentation directly to OSFA
 Schools are able to clear the following ineligible reasons
in MASSAid on behalf of students in batch format:
1. Citizenship
2. Prior Bachelor’s Degree Received
3. Answered “YES” to Drug Question
4. Loan Default and/or Owe Refund on Federal Aid
 Institutions are subject to the same 21-day period to
correct discrepancies on a student’s behalf
Updating Ineligible Reasons

MASSGrant
Updating Ineligible Reasons

MASSGrant
 Student not meeting Massachusetts residency
requirements
 Parent(s) not meeting Massachusetts residency
requirements
 Maximum number of semesters of eligibility reached
 EFC and/or dependency status could not be determined
(Missing Information)
 FAFSA received by Federal Processor after 05/01/2015
 Expected Family Contribution exceeds 5198
MASSGrant Ineligible Reasons

MASSGrant
 Applicant has prior bachelor’s degree
 Student’s Name, Date of Birth and/or Social
Security Number Mismatch
 In default of Massachusetts No Interest Loan
 Christian A. Herter Memorial Scholarship recipient
 Student in default of FederalTitle IV loan or owes
refund on a Federal grant

MASSGrant
 Student answered “yes” to question 23 on FAFSA
 Student owes refund to State financial aid
programs
 Student enrolled less than full time (only if
student had updated his/her assumed status of
full-time )
 Student not meeting United States citizenship
status requirements

MASSGrant
 85,038 students showed eligibility for 2015-2016
MASSGrant awards as of 06/12
 Of those 85,038 currently eligible students, 53,092
had an EFC between 0-200
 At the same point in time last year, 55,810 students
had an EFC between 0-200
2015-2016 Award Notification

MASSGrant
Distribution of 0-200 EFC Group by SchoolType

MASSGrant
 All current 2015-2016 MASSGrant award values on display
on the MASSAid system are estimated
 OSFA will not start mailing of 2015-2016 award letters
until a FY16 scholarship budget is finalized
 Award amounts and eligibility can fluctuate as new ISIR
transactions are loaded to MASSAid or updates made by
agency, school and/or student users
 Once an actual FY16 scholarship budget is available, OSFA
will publish a final 2015-2016 MASSGrant Payment
Schedule
2015-2016 Award Notification

MASSGrant
Estimated
Family
Contribution
Mass Private University of
Massachusetts
Public State
Universities
Community
Colleges
Mass
Proprietary
Mass Voc/Tech Mass Nursing Out of State
0000-0200
1700 1500 1100 900 600 500 800 300
0201-0500
800 600 600 600 600 400 600 300
0501-1000
700 500 500 500 500 400 500 300
1001-1500
600 500 500 400 400 400 400 300
1501-2000
500 400 400 400 400 400 400 300
2001-5198
400 400 400 400 400 400 400 300
5199+
0 0 0 0 0 0 0 0
Estimated 2015-2016 Payment Schedule

MASSGrant
2015-2016 MASSGrant Certification & Payment
Process
 Student goes to a “ReadyTo Certify” status as soon as
he/she is awarded in MASSAid
 OSFA alerts schools as to when certification/payment of
records begins and ends
 Students are ready for payment as soon as they are
certified as eligible
 Schools have option of certifying via on-line screen or
through a file download/upload process
 The certification file upload process has specific file layout
requirements

MASSGrant
2015-2016 MASSGrant Certification Process

MASSGrant
2015-2016 MASSGrant Batch Payment Roster

MASSGrant
 Fall certification and payment to begin on
September 14, 2015
 Spring certification and payment to begin on
January 18, 2016
 Schools have 60 days from above dates to certify
a student’s eligibility who has a “Ready to Certify”
status
 OSFA has the flexibility to extend the number of
days for certification on a school by school basis
2015-2016 MASSGrant Certification/Payment
Processes

2015-2016 MASSGrant
 OSFA mostly generates payment batches on a weekly
basis
 MASSGrant users automatically receive an e-mail
notification when OSFA generates a payment batch for
their institution
 A payment batch is generated for an institution as long as
it has students in a “Ready to be Paid” status
 Institutions that prefer to receive payment batches at
times that they wish to select should contact OSFA
 Payments are sent to schools directly from theTreasury
Certification/Payment Processes

MASSGrant
MASSGrant Reconciliation
 Schools are required to reconcile payment batches within 30
days of their creation
 Reconciliation of MASSGrant payments can occur via an on-
line screen or through a file download/upload option
 The reconciliation file upload function is subject to specific
file layout requirements
 Any refunds associated with a change in eligibility or
occasioned by the reconciliation process automatically carry
over to the next payment batch, unless a check is received at
OSFA for those refunds prior to the next payment batch

MASSGrant
 Any payment that is not reconciled for a period of more
than 30 days will result in OSFA not being able to generate
the next payment batch for the institution
 Schools are also required to perform a year-end payment
reconciliation process
 The year-end reconciliation process can occur via an on-
line screen or a year-end reconciliation file
download/upload option
 The year-end reconciliation file download/upload option
has very specific file layout requirements.
MASSGrant Reconciliation

MASSGrant
MASSGrant Payment Batch Reconciliation

MASSGrant
MASSGrantYear-End Reconciliation

MASSGrant
 Awards previously certified as ineligible or that remain un-
certified as of the expiration of the 30-day period are
automatically available for requests for reinstatement
 OSFA approves all requests for reinstatement based on
the availability of funding
 Reinstated awards must again be certified by the
institution
 Schools are limited to one reinstatement request of each
award in each term
MASSGrant Award Reinstatement

GEAR UP
 Required as a condition of the Federal GEAR UP
Grant
 Institutions are asked to submit financial award
data from all sources for every GEAR UP student
 GEAR UP scholarships are awarded to students
attending eligible schools in Massachusetts, NH,
ME, CT, RI,VT, PA and the District of Columbia
 GEAR UP students do not have to be Pell Grant
eligible to qualify for a scholarship
GEAR UP Scholarship Program Facts

GEAR UP
 A combination of GEAR UP scholarship and all other forms
of assistance available to a student cannot exceed their
cost of attendance
 GEAR UP scholarship can be used to replace self-help
 GEAR UP scholarship award amounts vary according to
the student’s enrollment status, as follows:
FullTime $1,000
¾Time $ 900
½Time or Less $ 800
GEAR UP Scholarship Program Facts

GEAR UP
 The GEAR UP Scholarship program awarded 1958 students
in 2014-2015 for a total of $1,735,568
 1735 students received assistance under the program in
2013-2014
2014-2015 GEAR UP Scholarship Highlights &
Activities
Award Year # of Students Dollars Awarded
2010-2011 1315 $1,143,933
2011-2012 1516 $1,313,339
2012-2013 1498 $1,314,480
2013-2014 1735 $1,531,262
2014-2015 1958 $1,735,568

GEAR UP
 All GEAR UP data reporting and student’s scholarship eligibility
certification occur on-line
 If a student attends multiple institutions in one award year,
financial aid data will be separately reported in each term
 Schools are required to certify a student’s eligibility during both
the fall and spring terms
 Certification during each term facilitates school’s reporting of
changes to eligibility prior to disbursement
 GEAR UP administrators are notified of payment batches
availability via e-mail
2015-2016 GEAR UP Processing

GEAR UP
Submitting GEAR UP Financial Aid Data

MASSAid
 MASSGrant
 Massachusetts No Interest Loan
 Early Childhood Educators Scholarship
 ParaprofessionalTeachers Preparation Grant
 GEAR UP Scholarship Program
 Foster Child Grant
 Adopted and Foster Child Fee Assistance Program
 Herter Scholarship is next program for migration
Migration Update

MASSAid
 All programs in MASSAid share the basic ineligible conditions (i.e.
MA residency, Loan Default, Citizenship, etc.)
 Some programs have one or more unique conditions that can also
make a student ineligible (i.e. student must be less than 22 years
old when he/she receives first GEAR UP Scholarship)
 Enrollment status and EFC changes reported for any student
ripples through the entire MASSAid system and appropriately
update that same student eligibility for any other program for
which he/she has a record in that award year
 Any change in eligibility will also automatically update any awards
the student may have throughout MASSAid and create refunds, as
appropriate
UpdatesThroughout MASSAid

Fy15Year-End Data File
 Fy15 year-end financial aid data file layout will be
available on-line by July 10
 Very few changes are expected in the FY15 file layout
 Fy15 year-end data file submission will begin on
August 10
 Deadline for submitting FY15 year-end data file is
November 2
Target Dates

OSFA State Programs Refund Form
 New format enables OSFA to place all currently
administered state financial aid programs on a single form
from which schools can choose
 School will select an aid program, an award year, populate
a screen with refund information for one or more students
and print a PDF to submit to OSFA with a refund check
 The PDF will automatically display the sum total of all
refunds listed on the form by the school
 The new refund form will be available on OSFA’s website
prior to the start of the 2015-2016 award year
One Form for all Programs

OSFA State Programs Refund Form
A Sample

OSFA Calendar
 OSFA now has an on-line calendar that publishes its upcoming
activities
 Activities include, but not limited to:
ProgramsYear-End Reporting Dates
Programs Application Dates
Programs Certification Start and End Dates
Payment Batches Creation Dates
 The on-line calendar will be periodically updated, as necessary
 The OSFA calendar is accessible on OSFA’s website under the
“For Schools” section
Stay Updated with OSFA

State Financial Aid Programs
*****
All 2015-2016 updated Massachusetts
State Financial Aid Programs
Guidelines will be available on-line on
OSFA’s site as of July 1, 2015.
*****
2015-2016 State Financial Aid Programs
Guidelines

Issues and Ideas for MASSAid
 MASSGrant Payment Batches Frequency
 Massachusetts Residency Dates on Residency Reply Form
 MASSGrant Ineligible Letter
 Other Issues?
What’s onYour Mind?

2014-2015 Activity Summary
 Final 2014-2015 NIL Disbursement Rosters will be created by
OSFA on June 29th
 2014-2015 NIL Reconciliation Rosters will be available for you
to download July 1st
No Interest Loan
Year Dollars Disbursed # of Students
2014-2015 $5,858,182 2314
2013-2014 $6,316,374 2746

No Interest Loan
2015-2016 Loan Origination
 2015-2016 NIL FAFSA filing deadline is March 14,2016
 EFC Eligibility range 0-15,000
 2015-2016 Anticipated Allocation Forms were sent to
schools on June 5th
and should be mailed back to OSFA by
June 30th
 2015-2016 Allocation Notifications will be mailed out to
institutions July 24th
with Promissory Note Paper included

No Interest Loan
Student Eligibility
 Permanent legal resident of Massachusetts, United States
citizen or eligible non citizen
 Enrolled full time
 EFC must fall within 0-15,000 range
 Enrolled in a certificate, associate or bachelors degree program
 Not have received a prior bachelors degree or its equivalent
 In compliance with Selective Service Registration Requirements
 Not in default of any federal or state loans or owe a refund for
any previous financial aid received
 Maintain satisfactory academic progress

Promissory Note Creation
 Access only students at your institution
 Indicated your school as first choice on FAFSA or for whom
OSFA has received aTransfer request
 “Student Not Found” (Error Message) – if student is not listed
at your school
 May only create notes for NIL eligible students
 “012345678 does not qualify” – if student is coded to your
school but not NIL eligible
 Loan Amounts
 Minimum $1,000
 Maximum $4,000
No Interest Loan

No Interest Loan

 Loan Period
 Loan Processing Cycle is from August 1 –June 30
 Borrower’s Loan Period must fall within this date range
 Loan Period must coincide with period of enrollment for the
academic year
 Disbursement Dates
 Schools control when loan disburses by populating fields
with desired dates
 Loan Periods > 155 days require at least 2 disbursements
No Interest Loan

Promissory Note Submission
 OSFA must receive an intact fully completed ORIGINAL COPY of
the promissory note (as printed on the note)
 Promissory note must be printed on the promissory note paper
which cites theTerms & Conditions of the loan
 All promissory notes capture emails displayed in MASSAid
 Borrower must provide two (2) unique U.S. references with zip
codes (business addresses will not be accepted)
No Interest Loan

Promissory Note Submission
 Borrower must sign full legal name as it appears on the
promissory note and date appropriately
 Promissory Note must be signed by school official
 Self Certification Form must accompany Original Promissory
Note
 Promissory Note must be received by OSFA prior to the loan
period end date to be eligible for a disbursement
 Denied promissory notes will be returned to School Official’s
attention
No Interest Loan

Loan Origination
 Borrower must sign full legal name as it appears on the
promissory note and date appropriately
 Promissory note must be signed by school official
 Self Certification Form must accompany Original Promissory
Note
 Promissory note must be received by OSFA prior to the loan
period end date to be eligible for a disbursement
 Denied promissory notes will be returned to School Official’s
attention
No Interest Loan

Loan Origination
No Interest Loan

Loan Origination
 Cancellations
 May be performed in real time in MASSAid
 Must be done PRIOR to disbursement
 Funds from cancelled disbursements revert to school’s allocation
 Refunds
 Once disbursement occurs if student is no longer
eligible school must refund monies to OSFA
 Refunded monies DO NOT revert to school’s allocation
 Timely Submission of Promissory Notes
 Facilitates accurate Exit Interview processes
No Interest Loan

Truth in Lending Act (TILA)
 Per federal guidelines, OSFA instituted Regulation
Z/Title X procedures
 There is a four step disclosure process prior to the
borrower receiving a disbursed No Interest Loan
 For school’s convenience, disclosures are provided within
the NIL Origination site
 The Private Education Loan Application Self-Certification
form must be received by OSFA along with the “Original
Copy” of the promissory note, to be considered a
complete application
No Interest Loan

Truth in Lending Act
 At the time of origination, the system will automatically create
a borrower specific Massachusetts No Interest Loan Offer
 School must provide this to student to review prior to signing
the promissory note. The Massachusetts No Interest Loan Offer
Form does not need to be returned to OSFA
 At the time of approval, OSFA will automatically create a
borrower specific Massachusetts No Interest Loan Disclosure
that will be mailed to each borrower
 The Loan Disclosure will provide three (3) business days for the
borrower to decline the loan. Loans will be disbursed after the
three day period
No Interest Loan

Clearinghouse Updates
 ECSI runs a Clearinghouse interface file every weekend.
The file that is sent to the Clearinghouse includes all
borrowers ECSI show in an enrolled status
 If there is a match and the Clearinghouse shows that
borrower to be withdrawn, less than half-time, or
graduated, ECSI creates a record on our Clearinghouse
Exit file
 Weekly, ECSI creates an actual web exit for those
borrowers and a notice is emailed to them
No Interest Loan

Default Management
 Reports
Expected Separation Dates
 OSFA mails throughout the year
 Reports can be generated at any time on ECSI’s WebX
system
 Opportunity to update separation dates
 A March mailing included the current In-School report to allow
schools to make any updates , the fiscal year 2014 cohort
default rate and an update to the NIL Exit Requirements
 By request OSFA mailed schools a list of defaulted borrowers
No Interest Loan

Default Management
 If the default rate exceeds 30% the institution must file a
Loan Default Management Plan with OSFA by June 30
and achieve 100% return rate on on-line Exit Interviews
to be considered for continued participation, no later
than July 15, 2015
 If the default rate exceeds 10% the institution must
achieve 100% return rate on on-line Exit Interviews to
be considered for continued participation, no later than
July 15, 2015
 If the default rate is less than 10% the institution must
achieve at least 75% return rate on on-line Exit
Interviews to be considered for continued participation,
no later than July 15, 2015
No Interest Loan

Default Management
 Any school that does not achieve 100% return on all Exit
Interviews by July 15th
and have a prior year default rate in
excess of 30% can receive no more than 75% of their
highest allocation in the program in the last five years
 OSFA has been sending monthly reminder emails to
students that have not yet completed their Exit
Interviews
 As of June 1st
, there were 1,339 borrowers separating
between July 1, 2014- June 30, 2015
 1,055 Disclosures Completed with ECSI
 284 Disclosures Remain Outstanding
No Interest Loan

Default Management
2013-2014 Exit Interview Overview
No Interest Loan
Total
Borrowers
Separating
7/1/13-
6/30/14
Completed
Exits
Current in
Repayment
In
Deferment
In Default
Private
Institutions
1034 867 745 105 184
State
Universities
499 346 346 48 105
UMASS 6 4 2 3 1
Proprietary 22 16 14 2 6

No Interest Loan
 Common Practices for Exiting Students
 No Interest Loan notices mailed or emailed to students
by financial aid offices. These include amount that was
borrowed, Exit instructions, and login information
 Placing holds on GraduationTickets
 Placing holds onTranscripts and/or Diplomas
 Constant calls and emails to borrowers until 100% Exit
completion is reached
Default Management

Default Management
 All Exits are generated electronically by ECSI
 Sixty days prior to separation, ECSI sends an email to
borrowers with their username, password, and
instructions to complete their Exits
 Schools are encouraged to frequently remind students of
this responsibility
 OSFA has been emailing students monthly to remind
them to complete their Exit Interview
No Interest Loan

Default Management
 Educational Computer Services, Inc (ECSI) remains the
billing servicer
 School Code for all OSFA programs = 4F
 Schools have on-line access to update separation dates,
change addresses and request an Exit to be generated
 Schools must be proactive to report separation date
changes to ECSI or OSFA as soon as you become aware of
changes
No Interest Loan

Default Management
No Interest Loan
www.heartlandecsi.com

Default Management
No Interest Loan

Loan Servicing
No Interest Loan

Default Management
No Interest Loan
Paid in full! Yippee!!

No Interest Loan
 Common Practices for Preventing Default
 Students must participate in mandatory Exit Counseling
Sessions where loans are broken down by type and
repayment options
 After receiving the default list—school mails borrower past
due letter
 Staff reviews Delinquent Rosters monthly and reaches out to
students by mail or phone. If school has different address
updates are made to OSFA and ECSI. Also check to see if
they are past due on Perkins Loans or other loans through
the school
 If student enters into default, a hold is placed on their
transcript
Default Management

Wellness Program
 Wellness Program
 Each month OSFA mails to institutions a report of
borrowers who are up to 90 days past due
 Once a loan is disbursed a letter is mailed to borrowers
along with a brochure reminding them of loan terms
and conditions
 OSFA mails a post-card to borrowers during their grace
period, as an additional reminder of their loan and
billing servicer
 OSFA also emails students during their grace period
 Monthly OSFA calls, mails and emails 30, 60 and 90 day
past due borrowers
No Interest Loan

Wellness Program
No Interest Loan

Helpful Reminders
 When contacting ECSI, school code for all OSFA
programs = 4F
 OSFA DOES NOT remove accounts from collections
once placed with an agency
 Accounts are FULLY accelerated @ 120 days past due
 Students have a 6 month, one-time only grace period
 NIL is not a Federal loan – therefore cannot be
rehabilitated
No Interest Loan

Helpful Reminders
 NIL CANNOT be consolidated
 NIL does not appear on NSLDS
 Students in default may have their state tax returns
intercepted
 Students must complete a Commonwealth of
Massachusetts exit interview
 Borrowers must complete exit interview EVEN IF they are
continuing in the fall in a graduate program (must apply
for deferment)
No Interest Loan

Contact Information
 Educational Computer
Services, Inc (ECSI)
Schools/Institutions
Phone 1-800-437-6931
 Borrowers
MDHE
C/O E.C.S.I.
181 Montour Run Road
Coraopolis, PA 15108
Phone: 888-549-3274
Fax: 866-291-5384
Email: clientsupport@ecsi.net
Web: www.heartlandecsi.com
OSFA
Alison Connolly
617-391-6073
aconnolly@osfa.mass.edu
No Interest Loan

Come Visit!
454 Broadway, Suite 200
Revere, MA

State Financial Aid Programs Review

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