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Federal Matters That Matter

Federal Matters That Matter. Marie Bennett marie@nasgap.org 202-776-2599. The Beltway and Beyond. Higher Education Opportunity Act Negotiated Rulemaking Our Friends and Colleagues. Reauthorization: At Last. Higher Education Opportunity Act DATE of ENACTMENT: August 14, 2008.

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Federal Matters That Matter

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  1. Federal Matters That Matter Marie Bennett marie@nasgap.org 202-776-2599 nassgap October 2008 2392951

  2. The Beltway and Beyond Higher Education Opportunity Act Negotiated Rulemaking Our Friends and Colleagues nassgap October 2008 2392951

  3. Reauthorization: At Last Higher Education Opportunity Act DATE of ENACTMENT: August 14, 2008 nassgap October 2008 2392951

  4. Student and School Eligibility ATB: Allows students who have successfully completed 6 credits Dual enrollment in postsecondary and secondary included as “regular student” Proprietary institutions can offer liberal arts bachelor’s degrees nassgap October 2008 2392951

  5. TRANSPARENCY--Colleges College tuition costs lists: Schools that are highest and lowest 5% Net price calculators College Navigator Website Textbook costs Consumer information reported by institutions (A to Z, literally 26 required sets of data) nassgap October 2008 2392951

  6. TRANSPARENCY Loans Prohibits co-branding Report to Secretary funds paid to FAA Expanded counseling and consumer information to prospective borrowers Preferred Lender Lists Requirements GA to provide high quality budget, financial literacy and debt management Private Education Loans nassgap October 2008 2392951

  7. Title IV Pell Authorized Maximums: $6000 to $8000 New minimum award equals 10% of maximum Year-round Pell provision—Up to two Pell awards in an award year to permit acceleration of program completion Maximum 18 FT Semesters Auto-zero for some children of Iraq/Afghanistan casualties* Ineligible for Pell post incarceration for sexual offense* nassgap October 2008 2392951

  8. Federal Work Study Community Service can include activities in preparation for/during emergencies and natural disasters Secretary can award extra funds for off campus community service. Priority to early childhood education & preparation for emergencies and natural disasters. nassgap October 2008 2392951

  9. FFELP Interest subsidy extended TWO years Guarantors can do Exit Counseling Borrowers get ONE rehabilitation of defaulted loan Veteran’s Education Benefits excluded from determination of loan eligibility (eff. July 1, 2010) PLUS—All borrowers can delay 1st payment until 6 months after ½ time enrollment ceases nassgap October 2008 2392951

  10. ACG and Teach Grant ACG--Shifts authority from Secretary to states for determination of rigorous high school curricula TG—Plain Language disclosure and loan repayment consequences; high need fields when recipient applied remain high need fields for that recipient at graduation nassgap October 2008 2392951

  11. Part C, Section 132, BIG MOE State Commitment to Affordable College Education Maintenance of Effort Required or lose Challenge Grant Funding nassgap October 2008 2392951

  12. Section 114 (135) State shall NOT charge a member of the armed forces on active duty, his/her spouse or dependent children tuition for attendance at a public institution a rate that is greater than the rate charged for residents of the state (eff. July 1, 2009) nassgap October 2008 2392951

  13. NEED ANALYSIS • Professional Judgment Expanded Language • Nursing home, medical related expenses and dependent care expenses as adjustments to EFC • Parent dislocated worker status as adjustment to EFC • Unsubsidized loan for dependent students with no parent data on FAFSA nassgap October 2008 2392951

  14. NEED Analysis, Cont. Military House Allowance no longer untaxed income (eff. 7/1/10) in EFC; but only board in COA Secretary can issue regulations to use prior prior year Data sharing with IRS Independent Definition includes orphans, at age 13 or older; emancipated minor before age of majority nassgap October 2008 2392951

  15. The FAFSA Encourage use of electronic FAFSA EZ FAFSA for auto zero EFC and SNT Requires state data on EZ FAFSA if state accepts EZ FAFSA Requires Secretary to reduce data elements by 50% #State items shall not be less than 2008-09 nassgap October 2008 2392951

  16. The FAFSA, Cont. • Permit students to complete FAFSA as early as practicable prior to January 1 of student’s planned year of enrollment • Parent’s SSN and DOB authorized • Early application demonstration project • Use of IRS data to pre-populate FAFSA or verification • Use $$ saved from electronic documents to improve access to electronic form nassgap October 2008 2392951

  17. Federal Program Reviews Institution to have adequate opportunity to review and respond to report before final determination issued Requires confidentiality for PRR until final determination is made Exception to allow disclosure to state and accreditation agency nassgap October 2008 2392951

  18. LEAP Basic LEAP—first $30m Maximum award $12,500 nassgap October 2008 2392951

  19. SLEAP to GAP • Two year transition • Which two years? 08-09 and 09-10 or 09-10 and 10-11 (enactment 8/14/08) • SLEAP or GAP or both • SLEAP allotment system nassgap October 2008 2392951

  20. GAP • Allotment to a state not less than the allotment of the prior year. (Under SLEAP for first year of GAP?) • Federal share not to exceed 57 to 66.66 percent • 57% where combined partners enroll less than the majority of students attending institutions of higher education nassgap October 2008 2392951

  21. GAP, cont. Non-federal share in cash or in kind that helps student meet COA In-kind is not treated in need analysis as an asset or income of student or parent nassgap October 2008 2392951

  22. GAP, cont. • State is primary administrative unit • How the state will ensure that grant recipients will persist to completion and • How the state will track students to graduation • Notice to students that LEAP are funded by federal government, state and partners nassgap October 2008 2392951

  23. GAP, cont. Early Notification to low income students, grades seven-12, with estimate of the total amount of financial aid Amount of Grants--Not less than average undergraduate tuition and fees at public institutions, minus other federal and state aid the student receives nassgap October 2008 2392951

  24. GAP, cont. • Eligibility—Meets two of the following: • Zero EFC • Qualifies for maximum basic LEAP • Participation in federal , state, institutional or community early information and intervention, mentoring or outreach program recognized by State agency nassgap October 2008 2392951

  25. ED’s Hearings Negotiated Rulemaking Panels Winter 2009 nassgap October 2008 2392951 2360583

  26. NASSGAP Testimony • Title II Clarification—State must report on teacher preparation programs to qualify for funding to participate • Need Analysis and FAFSA Simplification • FAFSA is used by states; loss of state questions may result in more complex processes • FAFSA data must continue to support ability to discern among low income nassgap October 2008 2392951

  27. NASSGAP Testimony, cont. Electronic link from FOTW to state application should be expanded to other states Studies and projects need to include all partners All deliberations need to include all partners nassgap October 2008 2392951

  28. NASSGAP Testimony, cont. • GAP • Transition • Implementation • Early Aid Estimates • Participation in early information and mentoring programs • LEAP Award Notification nassgap October 2008 2392951

  29. NASSGAP Testimony, cont. • GEAR UP— • Seventh year award provision • State scholarships must be funded through trust fund set asides • Scholarships must be portable • 21st Century Certificates nassgap October 2008 2392951

  30. NASFAA Partner Find synergies with institutional partners Share research Share ideas, concerns as we progress with implementation of HEOppAct National Initiative Project nassgap October 2008 2392951

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