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Session C-04TEACH Operational and Processing Information:
Part Two (Servicing)
Lisa DiCarlo
Cynthia Battle
U.S. Department of Education
2
TEACH Servicing Calendar
Exit CounselingWebsite
Implemented Winter 2008 Spring 2009
Notice of Disbursement
Reporting
Booking
Quarterly Statements
Converting Teach Grantinto Direct Unsubsidized
Loan (TEACH)
Discharging TEACH Grant Service obligations
Program Overawards
3
Conversion to Loan
In School
Separation/
Tracking
Reporting
Financials (Program
Overaward)
Exit Counseling
Maintaining Grant
Conversion Triggers
Servicing TEACH Grants
4
In School (Communication)
•Disclosure statement
•Notice of disbursement (Welcome Letter)
•Quarterly statements
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Disclosure Statement
• Upon acceptance of an origination record the COD system generates a TEACH Grant disclosure statement for the student
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Notice of Disbursement
• Once the COD system has an accepted ATS, origination record, actual disbursement record for initial disbursement, the TEACH Grant award is sent to DLSS
• Student receives TEACH Grant Notice of Disbursement generated by DLSS
7
Quarterly Statements
• On a quarterly basis, DLSS generates a statement notifying recipients of awarded grant amounts and interest accrual if converted to a Direct Unsubsidized Loan (TEACH)
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Conversion to Loan
In School
Separation/
Tracking
Reporting
Financials (Program
Overaward)
Exit Counseling
Maintaining Grant
Conversion Triggers
Servicing TEACH Grants
9
Separation/Tracking
• Grant-to-Loan start date will be set as the separation date plus one (1) day
• Grant-to-Loan end date will be set as eight (8) years from the Grant-to-Loan start date
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Will the recipient have to certify annually while in-school?
If… Then…
A new grant is received
No need for certification
No grant is received A certification will be sent to the
recipient
11
Upon Graduation
• The recipient must self-certify annually, committing to continue participation within the TEACH Grant Program
12
Once employed as a teacher
• Servicing will collect evidence of employment (Documentation of Service) each academic year of service that the TEACH Grant recipient fulfills
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Documentation of Service
• Upon completion of each academic year of service, recipient must submit documentation of the service in the form of a certification by chief administrative officer of the school using a form approved by the Department of education
• If the certification form is not received…
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Convert into a Direct Unsubsidized
Loan (TEACH)
Follow Up Request
Final Request and Warning
15
Tracking
• Servicing will track academic year, subject, and school that a TEACH Grant recipient fulfills toward his/her obligation
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Conversion to Loan
In School
Separation/
Tracking
Reporting
Financials (Program
Overaward)
Exit Counseling
Maintaining Grant
Conversion Triggers
Servicing TEACH Grants
17
Reporting - NSLDS
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Reporting – Credit Bureaus
If recipient has a…
Then…
TEACH Grant It is not reported to the credit
bureausConverted
Direct Unsubsidized Loan (TEACH)
It will be reported to the credit
bureaus
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Conversion to Loan
In School
Separation/
Tracking
Reporting
Financials (Program
Overaward)
Exit Counseling
Maintaining Grant
Conversion Triggers
Servicing TEACH Grants
20
Financials
Program Overaward (POVR)
• Schools will follow the same process in place for Pell Grant Overawards
• CSB DMCS will accept and store with unique identifiers for TEACH Grant POVRs
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Financials
• Servicing will receive notification from CSB DMCS when a TEACH Grant POVR is received along with the amount of the overpayments
• Updated reporting of the TEACH Grant amount will be provided to NSLDS
22
Conversion to Loan
In School
Separation/
Tracking
Reporting
Financials (Program
Overaward)
Exit Counseling
Maintaining Grant
Conversion Triggers
Servicing TEACH Grants
23
Exit Counseling• Spring 2009
completion (online)• Will include
information regarding the terms and conditions of the TEACH Grant service agreement
• Counseling must occur within 30 days of separation
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Exit Counseling• Will describe the circumstances under which a
TEACH Grant can be converted into a Direct Unsubsidized Loan (TEACH)
- How it cannot be converted back into a grant
- The consequences of loan default- Repayment options- Review the conditions for which
deferments and forbearances can be granted
25
Conversion to Loan
In School
Separation/
Tracking
Reporting
Financials (Program
Overaward)
Exit Counseling
Maintaining Grant
Conversion Triggers
Servicing TEACH Grants
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Maintaining Grant
• Life circumstances
• Meeting service obligations
• Payments while in grant status
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Life Circumstances
• Enrollment in another TEACH Grant-eligible program (example: Graduate program)
• Call or order to active duty status for more than 30 days in connection with a war, military operation, or national emergency
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Life Circumstances
• Birth of a son or daughter
• A serious health condition that makes the recipient unable to perform the functions of the position
One of the following conditions covered by the Family and Medical Leave Act of 1993
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Life Circumstances
• Tracking of the obligation period will be granted in one-year increments, but cannot exceed three years or in the case of military suspension, will end upon completion of the military service
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Life Circumstance
• Recipient must apply to Life Circumstance tracking suspension within six months of completing or ceasing the TEACH Grant-eligible program or if they have started teaching, within six months of the date that they have stopped teaching
• Servicing will report the application of life circumstance tracking suspensions to NSLDS
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Meeting Service Obligations• Grant recipient must
serve as a full-time teacher for a total of 4 academic years within 8 years of completing school
• Grant recipient must teach in a federally designated low-income school
32
Designated teaching fields
Grant recipient will teach in one of the following fields:
– Math
– Science
– A foreign language
– Bilingual education
– Special education
– Reading specialist
– Another field documented as high need
33
Payments while in Grant Status• Servicing will NOT apply payments for
TEACH Grants while in grant status• If a payment is received specifically directed
to a TEACH Grant, CSB Servicing will:– NOT apply the payment to any other loans
that the recipient might have– Send a notification to the grant recipient
informing him/her that payments cannot be applied to TEACH Grants while in grant status
34
Payments while in grant status
• If grant recipient makes payments within 120 days of the disbursement of a TEACH Grant
– the payment will be processed as a cash cancellation
– COD will be notified of the adjustment and increase their eligibility by the same amount
35
Conversion to Loan
In School
Separation/
Tracking
Reporting
Financials (Program
Overaward)
Exit Counseling
Maintaining Grant
Conversion Triggers
Servicing TEACH Grants
36
Conversion Triggers
• Requests conversion
• Fails to certify within 120 days of ceasing enrollment prior to completing program.
• Fails to certify annually his/her intention to satisfy service agreement
• Fails to begin or maintain qualified employment
When the TEACH Grant recipient…
37
Conversion to Loan
In School
Separation/
Tracking
Reporting
Financials (Program
Overaward)
Exit Counseling
Maintaining Grant
Conversion Triggers
Servicing TEACH Grants
38
Conversion to Loan
• A TEACH Grant will convert into a Direct Unsubsidized Loan (TEACH) when a recipient fails or refuses to carry out their service obligation
– Recipient will enter repayment upon conversion of the grant to a Direct Unsubsidized Loan (TEACH)
39
When Converted
• Capitalization of unpaid interest will occur on the date entering repayment PLUS 6 months (to provide the recipient an opportunity to pay the interest prior to capitalization)
40
Questions?Conversion
to Loan
In School
Separation/
Tracking
Reporting
Financials (Program
Overaward)
Exit Counseling
Conversion Triggers
Maintaining Grant
Servicing TEACH Grants
41
Thank You!
We appreciate your feedback and comments. Lisa DiCarloDirector, Direct Loan [email protected](202) 377-3129
Cynthia [email protected] (202) 377-3261
Contact Information