Student Loan Empowerment Project (SLE Project)

Purpose

The SLE Project will award $7.25 million to nonprofit organizations to support the development and execution of at least one of two grant streams: Network Coordination grants will fund organizations providing coordination and support for the SLE Project network, and Service Partner grants will fund community-based, individualized education and counseling or legal services to help borrowers manage their student loans.

Description

The SLE Project will promote and enhance the economic security of student loan borrowers by: • Designing, developing, or offering, free of charge to student loan borrowers, classroom- or web-based financial education and empowerment content intended to help borrowers manage their student loans, access federal repayment and forgiveness benefits, or lower their debt balance. • Providing individualized, free financial coaching or direct legal services to student loan borrowers. The SLE Project will operate as a coordinated network, using a supportive hub and spoke model of service provision. DFPI provides funding for organizations that will play specific roles within this Network. Organizations may apply for and receive funding for one or both streams of funding. Two grant streams are available: Stream 1: Network Coordination Grants Network Coordination Grants will provide critical coordination and support for the SLE Project Network. The maximum funding available in this category is $2 million to include the functions listed below. Eligible organizations may apply and receive to provide one or both of the following functions up to a maximum $2 million per organization for the two-year period: A: Service Coordination and Referral · Establish and manage a statewide toll-free phone number, website, and email for borrowers · Coordinate borrower intake and referral services · Aggregate service data and evaluate outcomes · Deliver marketing and outreach strategies · Coordinate other network activities as required B: Training and Quality Assurance · Develop and implement ongoing training program for service partner grantees · Identify and promote best practices and share updates on policies, regulations, etc. · Conduct technical assistance and training for partner organizations · Coordinate other network activities as required Stream 2: Service Partner Grants Service Partner grant funds are to be used to provide direct community-based, individualized education and counseling or legal services to help borrowers manage their student loans, access federal repayment and forgiveness benefits, or lower their debt balance. Services may include specialized support for complex cases. A total of $5.25 million of funding is available under this funding stream. The maximum award for each Service Partner grant is $600,000 for the two-year period, and each organization can receive only one grant. There are two types of direct support for borrowers that can be provided under this stream. Organizations may apply to provide one or both types of services. A. General Support for Borrowers · Provide free financial education and individual counseling to consumers with their higher education debt issues in-person, by phone or online as required. · Participate in training, data collection, outreach and other network activities. B. Specialized Case Support for Borrowers · Provide specialized support and guidance to direct service providers with complex cases. · Conduct General Case Review with direct service providers. · Participate in training, data collection, outreach and other network activities.