1 / 53

Federal Update

GASFAA Conference Braselton, GA. Federal Update. Anthony Jones Office of Postsecondary Education June 2, 2005. AGENDA. President’s FY 2006 Budget Advisory Committee PART Process Student Unit Record System Default rates Use of PIN System Requirements Late Disbursements.

karif
Download Presentation

Federal Update

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. GASFAA Conference Braselton, GA Federal Update Anthony Jones Office of Postsecondary Education June 2, 2005

  2. AGENDA • President’s FY 2006 Budget • Advisory Committee • PART Process • Student Unit Record System • Default rates • Use of PIN • System Requirements • Late Disbursements

  3. President’s FY 2006 Budget (2006-2007)

  4. President’s FY 2006 Budget Request • Directs taxpayer resources to students with most need • Provides significant program improvements • Saves taxpayer’s money by eliminating funding for ineffective programs

  5. President’s FY 2006 Budget Request • Increases Pell annual awards and Stafford loan limits • Must make student loan program reforms to provide increased funds for students • Must eliminate ineffective programs to provide funds to neediest students

  6. 65,642,624 Title IV Program BudgetsAppropriations * President's FY 2006 Budget Submission

  7. 166,925,000 73,186,351,000 Title IV Program BudgetsAid Available 131,285,000 * President's FY 2006 Budget Submission

  8. Title IV Program BudgetsFederal Pell Grants * President's FY 2006 Budget Submission

  9. President’s FY 2006 Budget Request • Federal Pell Grant Program • Increase maximum award by $100/year • over 5 years • Eliminate $4.3 Billion shortfall • Index minimum award • Implement sixteen semester (or • equivalent) cap

  10. President’s FY 2006 Budget Request • Federal Pell Grant Program(cont’d) • Provide year-round awards for students • attending 2- and 4-year programs • Eliminate tuition sensitivity award rule • Add $1,000 for students who complete • the rigorous State Scholars curriculum • in high school

  11. President’s FY 2006 Budget Request • Federal Work-Study & FSEOG • Phase-out conditional guarantee over • 5 years • Replace FWS 7% community service • requirement with 20% set aside

  12. President’s FY 2006 Budget Request • New Programs • Presidential Math-Science Scholars Program • Loan program for short-term training – with Department of Labor

  13. President’s FY 2006 Budget Request • FFEL and Direct Loan Programs • Increase undergraduate annual loan limits • 1st Year subsidized - $2,625 to $3,500 • 2nd Year subsidized - $3,500 to $4,500 • Beyond 2nd Year - subsidized remains $5,500 • Maintain $4,000/$5,000 unsubsidized • Increase undergraduate aggregate limits • Undergraduate subsidized - $23,000 to • $25,000 • Undergraduate Total - $46,000 to $48,000

  14. President’s FY 2006 Budget Request • FFEL and Direct Loan Programs(cont’d) • Maintain graduate subsidized limits • $8,500 • Increase graduate unsubsidized limits • $10,000 to $12,000 • Increase graduate total annual loan limits • $18,500 to $20,500 • Increase graduate aggregate limits • $138,500 to $146,500

  15. President’s FY 2006 Budget Request • FFEL and Direct Loan Programs(cont’d) • Reestablish low-default waivers • Less than 10% for 3 years • Waivers apply to: • 30-day delay for first-time, first-year • borrowers • Multiple disbursements for single term • loans

  16. President’s FY 2006 Budget Request • FFEL and Direct Loan Programs(cont’d) • Extend current variable interest rates • Extend teacher loan forgiveness change • Require GA to deposit 1% fee • Standardize repayment plans

  17. President’s FY 2006 Budget Request • FFEL and Direct Consolidation Loans • Moves from fixed interest rate • (weighted average) to variable rate • Provide reconsolidation with 1% • origination fee • Repeal single holder rule

  18. President’s FY 2006 Budget Request • Federal Perkins Loan Program • End new Perkins lending • Offset by increased FFEL/DL loan limits • Recall of Federal portion of fund • Essential to increasing Pell Grants • Develop plan to recall such as: • Assignment of outstanding loans to ED • Collection by school and return Federal share

  19. President’s FY 2006 Budget Request • FFEL, Direct, and Perkins Loan Programs • Reforms result in net savings • Savings are essential to increasing • Pell Grants for our neediest students • and increasing loan limits

  20. President’s FY 2006 Budget Request • Student Eligibility • Add active duty military to independent • student definition • Modify drug conviction eligibility rule to • apply only to offenses committed while • receiving Title IV aid

  21. President’s FY 2006 Budget Request • Institutional Eligibility • Eliminate 50% rules for distance education programs • Eliminate 90/10 rule for proprietary institutions

  22. Study of Simplification of Need Analysis and Application Process • The Student Aid Gauntlet: Making Access to College Simple and Certain • Issued by the Advisory Committee on Student Financial Assistance on January 23, 2005 • www.ed.gov/about/bdscomm/list/acsfa/edlite-simplification.html

  23. Simplification Study (cont’d) • Four National Imperatives • Empower Studentsto make sound decisions about higher education • Make It Easyto ensure students get the financial aid they deserve • Lose The Paperto create an integrated web-based student aid system • Work Togetherto forge creative public-private access partnerships

  24. Performance Assessment Rating Tool (PART)

  25. PART • Government Performance & Results Act • 1993: requires all Federal agencies & programs to have measurable goals and objectives • President’s Management Agenda (PMA) • 2001: aims at improving the efficiency and effectiveness of Federal programs • PART • Addresses the fifth element of the PMA: budget and performance integration • Is OMB-developed tool for assessing the effectiveness of all Federal programs

  26. Rating Range Effective 85-100 Moderately Effective 70-84 Adequate 50-69 Ineffective 0-49 PART Insufficient Performance Measures Results Not Demonstrated =

  27. PART • Pell Adequate • FFEL Adequate • DL Adequate • FWS Results not demonstrated • FSEOG Results not demonstrated • Perkins Inadequate • LEAP Results not demonstrated • Talent Search Results not demonstrated • Upward Bound Inadequate • SSS Results not demonstrated • GearUP Adequate

  28. PART • http://www.whitehouse.gov/omb/part/ • Impact • Budget • Need for Student Unit Record

  29. Student Unit Record System

  30. Student Unit Record System • National Center for Education Statistics (NCES) conducted a feasibility study of establishing a Federal student unit record system • Final report released to the public March 22, 2005 • http://nces.ed.gov/ipeds/urreport.asp • Report will inform the process of developing proposals for the Higher Education Act reauthorization

  31. Student Unit Record System Concerns • Privacy & confidentiality • Data on students not receiving aid • Unauthorized access to data • Institutional burden • Transitional burden • Long-term burden • Coordination • Timing

  32. Student Unit Record System Benefits • Improves data: enrollment, program completions, graduation rates, institutional price, and student financial aid • Captures data on: • Changing patterns of enrollment and completions • Impact of Federal programs, including the student financial aid programs • Enables creating mission-sensitive institutional outcome measures

  33. Default Rates

  34. National Student Loan Default Rates Issued date: 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Percentage 5.2

  35. SASFAA Default Rates (FY 2000-2002)

  36. Constitution Day • Federal Register Notice published 05/24/05 (correction: 05/31/05) • Includes informational resources schools may use • Educational institutions receiving Federal funding are required to hold for its students an educational program pertaining to the U.S. Constitution on September 17 of each year

  37. Constitution Day • Applies to all Federal funding, not just funding from ED • Begins with the current fiscal year • If September 17 falls on Saturday, Sunday, or a holiday, Constitution Day shall be held during either the preceding or following week.

  38. Use of PIN

  39. PIN Web Site Changes • Challenge Question for all users (including FAAs) • Additional security to protect PIN applicants/holders • Effective date: January 1, 2005 • Challenge Question/Answer in lieu of PIN to update or change information on PIN Web Site

  40. PIN Web Site Changes (cont’d) • FSA will disable PINs – • After PIN holder • Makes three unsuccessful authentication attempts and • Does not select and answer “Challenge Question” in three tries • After there is a 30-month period of inactivity • If there is a match with the “Death File”

  41. Using a PIN • A PIN – • Is part of an electronic signature • Provides access to Privacy Act information • Requestor must be PIN-owner • A PIN must be sent to PIN-owner (email, USPS) • A PIN must only used by PIN-owner

  42. Using an ED-PIN • If ED-PIN compromised, we will – • Not Issue that ED-PIN again • Deactivate ED-PIN • Invalidate documents • FAFSAs • Promissory notes • Also, see Dear Partner Letter GEN-04-10 (Sept. 2004)

  43. System Requirements

  44. System Requirements • Dear Partner Letter GEN-04-08 (Sept. 2004) • Minimum and optimal requirements for desktop PC • ISIRs • COD • Direct Loan • 2005-2006 processing • All schools use CODCommon Record - XML

  45. Late Disbursements

  46. Mandatory Late Disbursements • A school must offer a Pell, FSEOG, or Perkins late disbursement to a student: • Who withdraws and is eligible for a post-withdrawal disbursement, or • Who completes the payment period or period of enrollment

  47. Mandatory Late Disbursements • A school may offer a late FFEL/Direct Loan disbursement to a student: • Who did not withdraw but ceases to be at least a half-time student • Can credit account, but must provide notice that student can cancel all or portion of the disbursement

  48. “Late” Late Disbursement • Disbursements more than 120 days after student ceases to be enrolled • Approval from FSA required • See Dear Colleague Letter GEN-05-07 (April 2005)

  49. “Late” Late Disbursement Procedures • Request for approval must contain: • School’s name and OPE ID • Contact person’s name, title, phone & fax numbers, and e-mail address • Name and SSN of student (and name & SSN of parent, for PLUS) • Type and amounts of Title IV to be disbursed • An explanation of why the disbursement was not made, including why it was not the student’s fault

  50. “Late” Late Disbursement Procedures • For Pell Grant include: • Award Year • Payment period begin and end dates • Date student completed the payment period or withdrew from school • For FFEL and Direct Loans include: • Loan type (sub, unsub, or PLUS) • Date the loan was certified or originated • Loan period begin and end dates

More Related