Welcome to a Year of Change

Edward CunninghamExecutive Director/CEO

2

Staff Changes

Diana BarberGeneral Counsel

Jo Carole EllisVice President of

Government Relations and Student Services

(took over Student Services following the retirement of Linda Renschler)

Danny McGaugheyKNGTAP Coordinator

Mimi Mitchell Origination

Services Branch Supervisor

Sherry PhillipsChange Processing Specialist

Wayne Hubbard Change Processing Specialist

3

New KHEAA WebsiteNew KHEAA Website

4

Recently ImplementedRecently Implemented

Initial landing page within Zip Processing

Initial landing page options

Pre-defined borrower search criteria

Optional expanded borrower search criteria, including search by date ranges

Online loan application delete functions

Disbursement date range batch loan changes

Certify and School Certify Date value default options

Common Record: CommonLine (CR:C)

Enhancements

5

Online Access to Entrance/Exit Counseling Data

Entrance Counseling EnhancementsMonitoring by KHEAA

Annual or once per school

Suspend disbursements until Entrance Counseling is completed

Linked to eSign

Recently Implemented

6

Coming Soon – Winter 2007Coming Soon – Winter 2007

Integration With

7

Alternative Loan Processing Certification

Common Disbursement Agent

Default Prevention

Recently Implemented

8

Financial Literacy – Video Series

Recently ImplementedRecently Implemented

9

School Training/ Professional Development—Video Series

Training ScheduleEmail Etiquette November 2007Communication Audit December 2007Financial Aid 101 January 2008Completing the FAFSA February 2008R2T4 March 2008Freeing Yourself from the Emotional Traps at Work April 2008 NSLDS: Aggregate Reporting May 2008What a mess! The hidden benefits of disorder June 2008

Recently ImplementedRecently Implemented

10

FY 2007 Outreach/Publications Activities

FY 2007 Outreach/Publications Activities

540 exhibits

850 presentations

187,640 miles traveled

Distributed:57,940 Getting In for Seniors

59,880 Getting Ready for Juniors

63,200 Getting Set for Sophomores

64,500 Getting Started for Freshmen

11,310 Adults Returning to School

3,810 Affording Higher Education

76,350 College Circuit

11

2007-2008 Publications

12

Student Aid Disbursements Year-End Comparison

$164.5$177.2 $188.8

$0

$40

$80

$120

$160

$200

Millions

2005 2006 2007

KEES Awards

CAP Grants

Kentucky Tuition Grants

Teacher Scholarships

National Guard Tuition Awards

Osteopathic Medicine Scholarships

Early Childhood Development Scholarships

Robert C. Byrd Honors Scholarships

Work-Study Awards

Mary Jo Young Scholarships

Student aid disbursements increased 6.5%

13

FY 2007 Student Aid Disbursements by Type

$188.8 Million Disbursed

95% was funded by Kentucky

Lottery revenue

14

Go Higher Grant ProgramGo Higher Grant Program

Funds are still available!

Contact Becky Gilpatrick at (502) 696-7394 or rgilpatrick@kheaa.com for more information.

15

Kentucky Loan Guarantee VolumeYear-End Comparison (excluding Consolidations)

Kentucky Loan Guarantee VolumeYear-End Comparison (excluding Consolidations)

$532.7

$628.2

$689.2

$0

$100

$200

$300

$400

$500

$600

$700Millions

2005 2006 2007

16

Kentucky Guarantee Volume By Loan Type Year-End Comparison

$38

$267

$228

$47

$296$285

$61

$308$320

$0

$100

$200

$300

$400

Stafford Subsidized Stafford Unsubsidized PLUS

Millions 2005 2006 2007

17

Debt Recovery Rate/National RankingYear-End Comparison

Debt Recovery Rate/National RankingYear-End Comparison

Recovery rate is calculated on the federal fiscal year and is equal to current-year collections divided by beginning-of-the-year debt recovery portfolio.

#4 national ranking is among the nation’s 36 Guarantors

#5

#15

#4

#7

#4

18

$17.2

$24.1

$30.7

$39.2

$44.3

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

Millions

2003 2004 2005 2006 2007

Total borrower benefits increased 13%

Benefits Received by Borrowers Year-End Comparison

Benefits Received by Borrowers Year-End Comparison

19

Specialty Benefits Received by BorrowersYear-End Comparison by Program

Specialty Benefits Received by BorrowersYear-End Comparison by Program

20

The “Big” Scandal

Cuomo investigation

What was actually uncovered?

Sound-bite reporting

Settlements

Small dollar amounts

21

22

Federal Changes Will Affect Kentucky Students

Federal Changes Will Affect Kentucky StudentsCollege Cost Reduction and

Access (CCRA) Act of 2007

Cuts approximately $20 billion nationally from the FFELP to increase Pell Grants and reduce interest rates

Kentucky will LOSE at least an estimated $21 million over the next 6 years.

Where’s Kentucky’s Money Going?

24

Effect on KHEAA and The Student Loan People

KHEAA and The Student Loan People will lose:

$8.5 million due to CCRA in the first year of implementation

$10 million due to 9.5% floor changes 

Last year, we contributed $44.3 million for programs/services for Kentucky students:

Additional student aid awards

Zero-fee student loans

Interest and student loan forgiveness for teachers, nurses, public service attorneys

Administrative costs of Kentucky's student aid programs

College planning activities, publications, and websites for students

25

Where We Go From Here

Board of Directors will make decisions on how the cuts will be applied later this year.

We will continue to use any available resources to help Kentuckians pursue higher education and increase Kentucky’s college-going rate.

We will provide accurate information and maintain strong partnerships to ensure FFEL is the most effective student loan program.

26

CCRA Proposed Auction ProgramCCRA Proposed Auction Program

Lowest bidders would provide PLUS loans.

Bid on price

If preferred lender lists reduce choice, doesn’t this provision eliminate choice?

HEAL

27

Notice of Proposed Rulemaking (NPRM)

Would outlaw borrower benefits based on specific occupations.

Best in:

Class

Care

Law

28

Coming up…Coming up…

A push to favor Direct Loan Program

Leadership from California and Massachusetts want to control the loan program at the federal level.

USDE has been embarrassed.

29

What can you do?What can you do?

Make sure your president and top school administrators understand what you do, how you do it, and the importance of financial aid.

Stand tall/be proud.

Share good information.

The Beginning of Change