Conversion Loan Programs: KHEAA Teacher Scholarship & Minority Educator Recruitment and Retention...

Conversion Loan Programs:

KHEAA Teacher Scholarship &

Minority Educator Recruitment and Retention Scholarship (MERRS)

KASFAA Spring ConferenceApril 12, 2007

Jennifer Toth, KHEAANatasha Murray, KY Department of Education

Program DescriptionProgram 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.

Eligibility RequirementsEligibility 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

Scholarship or Loan?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.

Loan Interest RateLoan 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%.

KHEAA Teacher ScholarshipKHEAA Teacher ScholarshipAward AmountsAward 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

Freshmen & sophomores

• Up to $625 per semester for fall and spring

• Up to $325 for summer term if funding is available

KHEAA Teacher ScholarshipKHEAA Teacher Scholarship

Award AmountsAward Amounts

KHEAA Teacher Scholarship KHEAA Teacher Scholarship Aggregate AmountsAggregate 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.

MERRS AmountsMERRS 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

Program Program AdministrationAdministration

KHEAA Teacher KHEAA Teacher ScholarshipScholarship


KHEAA Teacher KHEAA Teacher ScholarshipScholarship

KHEAA makes awards and KHEAA makes awards and disburses funds.disburses funds.

Application ProcessApplication Process

Students apply via Zip Access at www.kheaa.com

Application deadline is May 1

Types of ApplicantsTypes of Applicants

New ApplicantsStudents who have never received a

KHEAA Teacher Scholarship

Renewal ApplicantsStudents who received a KHEAA Teacher

Scholarship disbursement during a prior semester/academic year

New ApplicantsNew Applicants

New applicants must log into Zip Access and click the

“Apply Online for Scholarship” link to begin their application process.

Renewal ApplicantsRenewal Applicants

Renewal applicants must log into Zip Access and go to their

“2007-2008 Teacher Scholarship” link.

They do not complete a new application.

Application ProcessApplication 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.

Certification ProcessCertification 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.

Awarding KHEAA Teacher Awarding KHEAA Teacher ScholarshipsScholarships

Based upon available funding, awards are made in the following order to

qualifying applicants as ranked by EFC:

1. Renewal applicants

2. Initial applicants admitted to a teacher education program

3. Initial applicants who meet the requirements for admission but have not been admitted to a teacher education program

Disbursement ProcessDisbursement 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 institution’s roster in Zip Access

under the Student Aid “Verify Eligibility” section.

Disbursement ProcessDisbursement Process

Funds are disbursed once enrollment verification is received by KHEAA.

Institutions typically receive an EFT notification via email within 3-5

business days.

RefundsRefunds

Refunds should be submitted through Zip

Access using the “Make a Refund” process.


MERRMERR


MERRMERREducation institutions make awards and disburse funds in accordance

with KDE regulations..

MERR Application ProcessMERR Application Process

1. Students contact their campus MERR coordinator for an appointment to fill out an application.

2. The promissory note is signed.

MERR Application MERR Application ProcessProcess

3. All promissory notes and invoices are sent to KDE for verification of student status, disbursement of funds, and data collection.

4. Promissory notes are sent to KHEAA for tracking purposes.


Teacher and MERR Teacher and MERR ScholarshipsScholarships


Teacher and MERR Teacher and MERR ScholarshipsScholarships

KHEAA tracks statuses of recipients until obligations are fulfilled.

Promissory NotesPromissory 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

Satisfying the ObligationSatisfying the ObligationSatisfying the ObligationSatisfying the Obligation

Two Ways to SatisfyTwo Ways to Satisfy

Payment by qualified teaching service

OR

Payment by money

Recipients who complete a teacher education program receive a six-month grace

period after teacher certification program is

complete.

Grace PeriodGrace Period

Grace PeriodGrace 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)

Status Tracking 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.

It is the recipient’s responsibility to notify KHEAA of the following:

• 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

Status TrackingStatus Tracking

Payment by ServicePayment by Service

Cancellation of scholarshipCancellation of scholarship

Recipients can receive service cancellation if they provide

qualified teaching service at a school certified by the

Kentucky Department of Education.

Cancellation Cancellation RequirementsRequirements

• 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.

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.

Cancellation TermsCancellation Terms

Cancellation of one semester per semester taught

OR

Cancellation of two semesters per semester taught in a

critical shortage subject area

No cancellation allowed for the following:

• Emergency Certification• Substituting

Cancellation TermsCancellation Terms

Payment by moneyPayment by money

Payment by MoneyPayment 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.

Payment by MoneyPayment by Money

KHEAA will attempt to make satisfactory

payment arrangements with

recipient

Failure to repayFailure 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

Important DisclosureImportant 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.

Questions?Questions?

Jennifer TothKHEAA Scholarship/Conversion Loan Coordinator

[email protected]

Natasha MurrayKDE Program Consultant/KY Educator Placement Service

Coordinator & Educator/Recruitment Specialist502-564-1479

[email protected]

Conversion Loan Programs: KHEAA Teacher Scholarship & Minority Educator Recruitment and Retention...

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