Grace-Period Follow-Up Steps Help Keep Borrowers Informed

Federal Stafford-loan borrowers generally have a six-month grace period after they leave school, during which the borrower is not required to make payments. Toward the end of the grace period, the borrower and loan servicer establish repayment schedules and review alternative repayment plans. Financial-aid administrators should contact borrowers during the grace period to encourage them to begin repayment on time.

The following are some tips for keeping students up-to-date about their education-loan-repayment status:

- Send at least two letters during the grace period to all students who have received Federal Stafford loans. The purpose of the letters is to help ensure that borrowers begin repayment on time and are informed of the options available if they are unable to begin or continue to make payments on a timely basis.

- Keep copies of all letters mailed during the borrower’s grace period in the borrower’s financial-aid file. Mail all correspondence in envelopes stamped “Forwarding and Address Correction Requested.”

- All letters should provide a date — two weeks from the day the letters are sent is a good time frame — by which the student borrower must reply. Financial-aid staff should contact borrowers who do not reply, and document all telephone contact

- Seek more-current contact information for borrowers whose letters are returned unopened. If necessary, send letters and make follow-up calls to the addresses of parents and all references in an effort to contact the borrower.

- Update school records with any new data obtained regarding the student’s address, telephone number, e-mail address and other contact information. Advise the borrower’s lender of new information received.

- Send letters with language that is appropriate for borrowers’ specific length of time before repayment begins.

Help your borrowers' transition from student to current payee become an information based process with positive results.

Submitted by: Richard Burt, Account Executive, USA Funds Services

The fee has increased to recognize the additional expenses associated with one annual association conference. In the past, our conferences have officially begun with the Monday lunch and opening general session. With the advent of an annual conference, the opening general session and business meeting will be late Sunday, followed by a President’s reception. We will continue to have a general session at lunch on Monday, thus this creates an additional meal and incurs additional expense. Previously, the semi-annual conference fee was $100 for events starting Sunday evening and ending Wednesday morning.

Some attendees may realize a savings by attending one annual conference with a fee of $125 instead of attending two semi-annual conferences for $200.

We are also actively pursuing keynote speakers of national prominence, which requires an expenditure of resources that VASFAA has not generally had in the past. The Board felt that in order to keep the membership interested and excited, we would have to provide a conference with a qualitative, as well as quantitative difference. We hope you are looking forward to the first annual conference as much as we are!

Submitted by Patricia Kelly, VASFAA Commissioner

Special Report Obituary for Common Sense

Every once in a while, a perspective comes along that is so simple and clear, we have to pause and say UMMMMM! or something like that. I couldn't resist sharing this with you as another break from the overwhelming task you face in making parents understand why they don't qualify for aid or why you can't change the regs just to meet their needs. Read on and consider ways you might adapt the following to address your experiences in financial aid. Create a good one that is financial aid related and we'll print it in a future newsletter.

Today we mourn the passing of a beloved old friend by the name of Common Sense who has been with us for many years.

No one knows for sure how old he was since his birth records were long ago lost in bureaucratic red tape. He will be remembered as having cultivated such value lessons as knowing when to come in out of the rain, why the early bird gets the worm and that life isn't always fair. Common Sense lived by simple, sound financial policies (don't spend more than you earn) and reliable parenting strategies (adults, not kids, are in charge). His health began to rapidly deteriorate when well intentioned but overbearing regulations were set in place.

Reports of a six-year-old boy charged with sexual harassment for kissing a classmate; teens suspended from school for using mouthwash after lunch; and a teacher fired for reprimanding an unruly student, only worsened his condition. It declined even further when schools were required to get parental consent to administer aspirin to a student; but, could not inform the parents when a student became pregnant and wanted to have an abortion. Finally, Common sense lost the will to live as the Ten Commandments became contraband; churches became businesses; and criminals received better treatment than their victims.

Common Sense finally gave up the ghost after a woman failed to realize that a steaming cup of coffee was hot, she spilled a bit in her lap, and was awarded a huge settlement.

Common Sense was preceded in death by his/her parents, Truth and Trust, his wife, Discretion; his daughter, Responsibility; and his son, Reason. He is survived by two stepbrothers; My Rights and Ima Whiner.

Not many attended his funeral because so few realized he was gone. If you still know him pass this on, if not join the majority and do nothing.

The Editor