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

5

Disclosure Statement

• Upon acceptance of an origination record the COD system generates a TEACH Grant disclosure statement for the student

6

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)

8

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

10

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

13

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…

14

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

16

Conversion to Loan

In School

Separation/

Tracking

Reporting

Financials (Program

Overaward)

Exit Counseling

Maintaining Grant

Conversion Triggers

Servicing TEACH Grants

17

Reporting - NSLDS

18

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

19

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

21

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

24

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

26

Maintaining Grant

• Life circumstances

• Meeting service obligations

• Payments while in grant status

27

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

28

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

29

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

30

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

31

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 Operationslisa.dicarlo@ed.gov(202) 377-3129

Cynthia BattleCynthia.Battle@ed.gov (202) 377-3261

Contact Information