2014 PEF DIRECTIONS
Self-reliance is self-help, not entitlement. We are to act and not be acted upon. D&C 104: 17 - “ For the earth is full, and there is enough and to spare; yea, I prepared all things, and have given unto the children of men to be agents unto themselves.”
One of the key ways that we learn is by asking questions. - Cecil O. Samuelson, Presidency of the Seventy, Nov. 13, 2001
How is the new PEF Loan Program (starting January 2014) different from the previous years’ PEF Loan Program? The 2014 PEF Loan Program was designed to help PEF participants pay off their loans faster and avoid long-term debt. For this reason, the terms of the 2014 PEF Loan are shorter: either 3 or 4 years, depending on the amount of the loan. Performance incentives are offered that can reduce the total cost of the PEF loan. Course durations, loanable amount, priesthood endorsement, mentor requirements are a few of the differences.
Does the new PEF Program affect those who have existing loans? The only existing PEF participants who are affected by the New PEF Program are those who will renew their loans. If an existing participant renews his PEF loan, he will be automatically converted to the New PEF Program at the time of loan renewal.
What is the duration of Short-Term and Long-Term courses (program)? The focus of PEF Loans are courses that will lead to jobs. The education course durations are classified as: Short-Term courses (can be completed within 30 months or less) Long-Term courses (can be completed within 72 months)
Will the monthly payments change after an existing PEF participant renews the loan? It depends on the length of the course (program) and the amount of the current loan. In the Philippines, if the participant is pursuing a Short-Term course, the monthly In-School Payment is still P100.00. If the participant is pursuing a Long-Term course, the monthly In-School Payment is P250.00. For all participants, the After-School Payments will also be adjusted to reflect a planned pay-off of 3 or 4 years.
When an existing PEF participant renews under the new PEF Loan Program, will he qualify for the performance incentives? Yes. The same performance incentives available to new PEF participants will be available to renewing participants when they renew the loan.
How does an existing PEF participant renew his loan under the new PEF Loan Program? The renewing PEF participant selects a PEF Loan Mentor. Be interviewed and endorsed by a member of the ward bishopric or branch presidency. Complete the online loan application on www.pef.lds.org.
What if the existing participant doesn’t need a loan renewal? If a loan renewal is not needed (the participant is in his last year of studies, has graduated, or withdrawn from school), then the new PEF Program does not affect the participant.
The new PEF Program application requires that the course and school are on the Preferred List. What is the Preferred List? The Preferred List is a compilation of jobs, courses (programs), and schools in the local area that are profiled by Self-Reliance Center Managers as providing quality education and job opportunities. This list is compiled according to Mission and is available at Model Self- Reliance Centers. Under the New PEF Program, a PEF loan will only be approved if an applicant is enrolled at a preferred school, in a preferred course (program) that leads to a preferred job.
Can an existing PEF participant still renew his loan if the course pursued and or the school are not on the Preferred List? Yes. The Preferred List only applies to new PEF Loans, not renewals. When an existing PEF participant renews the loan under the terms of the New PEF Program, the current choice of school and course do not need to be on the Preferred List. However, if the renewing PEF participant changes either the course or school at the time of renewal, he will have to select a job, course, and school from the Preferred List.
What are the performance incentives that can reduce the total cost of the loan and pay it off sooner? After Loan Renewal Performance Incentives (Performance Indicators) At the end of the school year 5% will be credited against the (in time for loan renewal), the annual loan disbursement (the renewing participant has no loan disbursed for the school year being evaluated) failed subjects, incomplete subjects and has a weighted average of 2.50 (or 83 or C+). Graduated from the 10% will be credited against educational program the total loan disbursement (beginning 2014 onwards)
What are the performance incentives …(continued)? After Loan Renewal Performance Incentives (Performance Indicators) Achieves future work goal and 10% will be credited against the expected monthly income based total loan disbursement on loan application (beginning 2014 onwards) Makes In-School or After-School 25% matching credit of the Payments on-time. On-time amount of the on-time In-School payment match will only be or After-School payment. applied to those participants with a Loan Mentor. Pays off total loan balance early 10% will be deducted from the remaining loan balance
What is a PEF Loan Mentor? Does an existing participant need a Loan Mentor before renewing his loan? A Loan Mentor is a responsible adult who provides counsel and guidance to the participant to assist in achieving education and career goals. The Loan Mentor is not a loan co-signer or guarantor, and has no financial obligation associated with the PEF loan. Having a Loan Mentor is a requirement for all loan renewals. No loan renewal application will be approved without a Loan Mentor.
How does the Mentor-Match Payment incentive work? Participants enrolled in Mentor-Match will receive a 25% match for each on-time In-School or After-School Payment made. Example: Participant Mentor-Match Total Payment Made Payment Incentive To Loan Balance (Made On-Time) (25%) P100.00 P25.00 P125.00 Over time, the Mentor-Match can greatly reduce the cost of the loan.
Can an existing PEF participant take advantage of the Mentor-Match Payment Incentive even without a loan renewal? Yes. The existing PEF participant can qualify to receive a 25% Mentor-Match Payment for each on-time payment upon obtaining a Loan Mentor. As long as the participant is current with his PEF loan repayments and has selected a Loan Mentor, he can enroll in Mentor-Match anytime online at www.pef.lds.org.
How to get a Loan Mentor? The applicant selects a Loan Mentor from among his associates, priesthood leaders (but not the bishop or branch president), previous PEF participants. The selected Loan Mentor must be approved by the ward bishopric or branch presidency. Loan Mentor personal contact information must be included as part of the PEF loan application.
Is there a form to show that an individual agrees to serve as a Loan Mentor? Yes. There is no hard copy form but the Loan Mentor confirms on-line that he understands that he is not financially responsible for the PEF participant’s loan. The mentor agrees to be contacted regarding the participant’s progress. Also, the mentor will offer encouragement and counsel as the participant encounters educational, work, or repayment challenges. IMPORTANT: The mentor agreement is done on-line. The Loan Mentor has to have a phone number and LDS Account (www.ldsaccount.lds.org).
What are the general requirements for new PEF applications? Listed below are the requirements: Applicants must be temple worthy Institute attendance for YSA is required Active Church calling is required Full-time mission is required for single male ages 18 to 26 16 to 17- year olds may apply until December 2014 on the condition that their chosen course will be completed within two years (as per Area Presidency Letter, PEF 2013 Directions Exception Guidelines, May 16, 2013) . Applicants over 30 years old may also apply, but this requires an Age Exception approval.
How does an applicant start the new PEF Loan process? What is a Planning For Success Workshop? The application process starts with the Planning For Success Workshop. The workshop helps determine the necessity of applying for a PEF loan. Completion of the four session Planning For Success (PFS) Workshop is a prerequisite for applying for a Perpetual Education Fund loan. Stakes and districts must call teachers to conduct the PFS workshops. The Self-Reliance Center Managers or the Area Operations Team will provide the training for those called.
Does a PEF applicant need a Priesthood Leader Interview & Endorsement? Yes. When it is established that it is necessary to apply for a PEF loan, the applicant must secure a PEF Priesthood Leader Interview and Endorsement form. The form must be signed by any member of the ward bishopric or branch presidency. For every loan renewal, a PEF Priesthood Leader Interview & Endorsement is required.
PEF Priesthood Leader Interview & Endorsement Form
What is the maximum length of course (program) allowed in PEF? The focus for PEF Loan is courses that will lead to a job. The education course durations are classified as: Short Courses (can be completed within 30 months) Long Courses (can be completed within 72 months)
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