Conversion Loan Programs: KHEAA Teacher Scholarship

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Conversion Loan ProgramsKHEAA Teacher
Scholarship Minority Educator Recruitment and
Retention Scholarship (MERRS)

• KASFAA Spring Conference
• April 12, 2007
• Jennifer Toth, KHEAA
• Natasha Murray, KY Department of Education

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Program Description

• The KHEAA Teacher MERR Scholarships provide
  financial assistance in the form of a
  scholarship/conversion loan to Kentucky students
  who are pursuing initial teaching certification.

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Eligibility Requirements

• U.S. citizen
• Kentucky resident
• Seeking initial teacher certification
• Full-time student (unless final term)
• Unmet need
• Available funding

• Good standing on all student loans, including
  conversion loans
• Additional MERRS requirements
• Minority
• 2.5 GPA
• Only available at public institutions

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Scholarship or Loan?

• Recipients are required to provide teaching
  service in Kentucky for each semester the
  scholarship is received.
• Otherwise, the scholarship converts to a loan.

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Loan Interest Rate

• Conversion loan interest accrues from the date of
  disbursement.
• The interest rate is currently 6.
• Prior to April 2005, the interest rate was 12.

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KHEAA Teacher ScholarshipAward Amounts

• Juniors, seniors, post-baccalaureates,
  graduates
• Up to 2,500 per semester for fall and spring
• Up to 1,250 for summer term if funding is
  available

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KHEAA Teacher ScholarshipAward Amounts

• Freshmen sophomores
• Up to 625 per semester for fall and spring
• Up to 325 for summer term if funding is
  available

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KHEAA Teacher Scholarship Aggregate Amounts

• Undergraduate
• 12,500
• Graduate
• (including post-baccalaureate)
• 7,500
• Students can receive scholarships at
• both the undergraduate and graduate levels
  provided they do not exceed their aggregate.

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MERRS Amounts

• Four-year institutions
• 2,500 per semester
• KCTCS institutions
• 1,000 per semester

Students may receive MERRS at both the
undergraduate and graduate levels. 20,000
lifetime aggregate
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Program AdministrationKHEAA Teacher Scholarship

• KHEAA makes awards and disburses funds.

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Application Process

• Students apply via Zip Access at www.kheaa.com
• Application deadline is May 1

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Types of Applicants

• New Applicants
• Students who have never received a KHEAA Teacher
  Scholarship
• Renewal Applicants
• Students who received a KHEAA Teacher Scholarship
  disbursement during a prior semester/academic year

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New Applicants

• New applicants must log into Zip Access and click
  the
• Apply Online for Scholarship link to begin
  their application process.

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Renewal Applicants

• Renewal applicants must log into Zip Access and
  go to their
• 2007-2008 Teacher Scholarship link.
• They do not complete a new application.

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Application Process

• The FAFSA is also required because the KHEAA
  Teacher Scholarship is need-based.
• Students should have their
• 2007-2008 ISIR information to their participating
  college
• by May 1, 2007.

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Certification Process

• Once initial applications are received, teacher
  certifiers at each institution verify the
  following applicant information
• Admission into the institution
• Admission into the teacher education program, if
  applicable
• U.S. citizenship and
• Kentucky residency.

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Awarding KHEAA Teacher Scholarships

• Based upon available funding, awards are
  made in the following order to qualifying
  applicants as ranked by EFC
• Renewal applicants
• Initial applicants admitted to a teacher
  education program
• Initial applicants who meet the requirements for
  admission but have not been admitted to a teacher
  education program

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Disbursement Process

• KHEAA sends a promissory note to each recipient
  for each semester the scholarship is awarded.
• Once the promissory note is returned to KHEAA,
  the student is placed on the institutions roster
  in Zip Access under the Student Aid Verify
  Eligibility section.

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Disbursement Process

• Funds are disbursed once enrollment verification
  is received by KHEAA.
• Institutions typically receive an EFT
  notification via email within 3-5 business days.

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Refunds

• Refunds should be submitted through Zip Access
  using the Make a Refund process.

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Program AdministrationMERR

• Education institutions make awards and disburse
  funds in accordance with KDE regulations.

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MERR Application Process

1. Students contact their campus MERR coordinator
   for an appointment to fill out an application.
2. The promissory note is signed.

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MERR Application Process

1. All promissory notes and invoices are sent to KDE
   for verification of student status, disbursement
   of funds, and data collection.
2. Promissory notes are sent to KHEAA for tracking
   purposes.

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Program AdministrationTeacher and MERR
Scholarships

• KHEAA tracks statuses of recipients until
  obligations are fulfilled.

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Promissory Notes

• IMPORTANT The promissory note gives KHEAA the
  authority to collect if the scholarship converts
  to a loan.
• If assisting students with promissory notes, they
  should be
• Completed in their entirety
• Signed and dated by the student
• Corrections should be initialed by the student

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Satisfying the Obligation
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Two Ways to Satisfy

• Payment by qualified teaching service
• OR
• Payment by money

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Grace Period

• Recipients who complete a teacher education
  program receive a six-month grace period after
  teacher certification program is complete.

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Grace Period

• Provides time to prepare for service
• Pass PRAXIS
• Obtain a Certificate of Eligibility
• Obtain a position working on a one-year Kentucky
  Teacher Internship Program (KTIP)

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Status Tracking

• After graduation, KHEAA sends each recipient a
  status form and letter explaining the qualified
  teaching service requirements.
• The status form must be completed and returned to
  KHEAA by the end of the grace period. If it is
  not returned, or the recipient does not qualify
  for deferment, the scholarship converts to a loan.

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It is the recipients responsibility to notify
KHEAA of the following
Status Tracking

• Change of address
• Change of telephone number
• Leaving school or attending less than half-time
  for any period of time

• Changing schools
• Graduation date change
• When and where qualified teaching service is
  being provided

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Payment by Service
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Cancellation of scholarship

• Recipients can receive service cancellation if
  they provide qualified teaching service at a
  school certified by the Kentucky Department of
  Education.

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Cancellation Requirements

• Must be the teacher of record
• Provide service the majority of the day
• Teach at least 70 days per semester
• Be in good standing on any KHEAA loans

If qualifications are met, service cancellation
begins during the KTIP year.
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Cancellation Requirements

• Teaching the majority of the day is required
  unless an individual has a disability defined by
  Title II of the Americans with Disabilities Act,
  whose disability, certified by a licensed
  physician, prevents that individual from teaching
  a major portion of each day. The recipient shall
  be deemed to perform qualified teaching service
  by teaching the maximum time permitted by the
  attending physician.

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Cancellation Terms

• Cancellation of one semester per semester taught
• OR
• Cancellation of two semesters per semester taught
  in a
• critical shortage subject area

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No cancellation allowed for the following
Cancellation Terms

• Emergency Certification
• Substituting

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Payment by money
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Payment by Money

• The following applies to students who stop
  pursuit of initial teacher certification
• No grace period allowed
• Scholarship converts to a loan
• Students who are enrolled in an eligible
  institution at least half-time may receive
  in-school deferments.

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Payment by Money

• KHEAA will attempt to make satisfactory payment
  arrangements with recipient

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Failure to repay

• Account can default
• Reported to credit bureaus
• May be assigned to the KY Department of Revenue
  for further collection activity including
  garnishment of wages tax refunds

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Important Disclosure

• Please be sure to explain to students that this
  scholarship requires a qualified teaching service
  requirement in Kentucky for each semester
  received.
• Otherwise, it must be repaid.

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Questions?

• Jennifer Toth
• KHEAA Scholarship/Conversion Loan Coordinator
• 502-696-7392
• jtoth_at_kheaa.com

• Natasha Murray
• KDE Program Consultant/KY Educator Placement
  Service Coordinator Educator/Recruitment
  Specialist
• 502-564-1479
• Natasha.murray_at_education.ky.gov