1 / 75

SASFAA Annual Conference Federal Update February 20, 2008 Jeff Baker Federal Student Aid U.S. Department of Education

2008-2009 FAFSA and CPS . FAFSA Print Distribution Changes. Paper FAFSAs will not be distributed to post-secondary institutions.Emphasis on electronic filing.Students may contact FSAIC to request up to 3 paper FAFSAs.FAFSA PDF format available online for printing and submission to ED or to school for FAA Access.FOTW Worksheet still available. .

parry
Download Presentation

SASFAA Annual Conference Federal Update February 20, 2008 Jeff Baker Federal Student Aid U.S. Department of Education

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. SASFAA Annual Conference Federal Update February 20, 2008 Jeff Baker Federal Student Aid U.S. Department of Education Carney McCullough Office of Postsecondary Education U.S. Department of Education

    2. 2008-2009 FAFSA and CPS

    3. FAFSA Print Distribution Changes Paper FAFSAs will not be distributed to post-secondary institutions. Emphasis on electronic filing. Students may contact FSAIC to request up to 3 paper FAFSAs. FAFSA PDF format available online for printing and submission to ED or to school for FAA Access. FOTW Worksheet still available. With your support, we will continue to encourage students to use the online method for filing the application. The FOTW Worksheet, the most effective tool students can use to facilitate the online application process, will still be available for bulk order by schools. In addition, Federal Student Aid has several promotional publications (e.g., the Need Money for College Brochure, Start Here Go Further Bookmark, the FAFSA on the Web Poster) that list application resources, explain how students can file the FAFSA and provide tips for completing the application. New for 2008-2009 is a PDF version of the FAFSA that students can submit for processing. The PDF version of the FAFSA will be available for download on various Federal Student Aid web sites, such as www.FederalStudentAid.ed.gov. Students can access the PDF, complete the form on the computer or by hand, and mail it to the address provided for processing. Schools will also be able to access the PDF from our web sites including FSAPubs at www.FSAPubs.org. With your support, we will continue to encourage students to use the online method for filing the application. The FOTW Worksheet, the most effective tool students can use to facilitate the online application process, will still be available for bulk order by schools. In addition, Federal Student Aid has several promotional publications (e.g., the Need Money for College Brochure, Start Here Go Further Bookmark, the FAFSA on the Web Poster) that list application resources, explain how students can file the FAFSA and provide tips for completing the application. New for 2008-2009 is a PDF version of the FAFSA that students can submit for processing. The PDF version of the FAFSA will be available for download on various Federal Student Aid web sites, such as www.FederalStudentAid.ed.gov. Students can access the PDF, complete the form on the computer or by hand, and mail it to the address provided for processing. Schools will also be able to access the PDF from our web sites including FSAPubs at www.FSAPubs.org.

    4. Redesigned PIN Application Process Real-time PINs will be issued for new FAFSA applicants and PIN site applicants. Initially only good for signing the FAFSA application. Identifiers will then be matched with SSA. If match is successful, the issued PIN will become valid. If match fails, the PIN will be disabled and the application rejected – Reject SAR and Reject ISIR. Our data shows that 98% of applicants pass the SSA match Match with SSA can take up to 72 hours Temporary PIN usage restricted to checking PIN status, requesting a duplicate PIN, and disabling said PIN until the SSA match is validated Our data shows that 98% of applicants pass the SSA match Match with SSA can take up to 72 hours Temporary PIN usage restricted to checking PIN status, requesting a duplicate PIN, and disabling said PIN until the SSA match is validated

    5. TEACH GRANT QUESTION Question On Web Products Only SAR Message Directs to Web Information Those who responded ‘Yes’ Those who were not presented the question E-Mails to Catch Up Our data shows that 98% of applicants pass the SSA match Match with SSA can take up to 72 hours Temporary PIN usage restricted to checking PIN status, requesting a duplicate PIN, and disabling said PIN until the SSA match is validated Our data shows that 98% of applicants pass the SSA match Match with SSA can take up to 72 hours Temporary PIN usage restricted to checking PIN status, requesting a duplicate PIN, and disabling said PIN until the SSA match is validated

    6. 1,243,539 2007-08 FAFSAs processed as of Feb 10, 2008 1,332,822 2008-09 FAFSAs processed as of February 10, 2008 Application Processing Statistics FAFSAs Processed 2007-2008 vs 2008-2009

    7. Application Processing Statistics Electronic Volume 2007-2008 vs 2008-2009 1,212,307 2007-08 filed electronically 97.5%. 1,322,362 2008-09 filed electronically 99.2%.

    8. 8 Legislation and Budget

    9. 9 LEGISLATION College Cost Reduction and Access Act (CCRAA) Pub.L. 110-84 Third Higher Education Extension Act of 2007 Pub.L. 110-109 – Expires March 31, 2008. Reauthorization S 1642 passed full Senate on July 24, 2007 HR 4137 passed full House on February 7, 2008

    10. 10 Title IV Program Budgets Appropriations and Budget Request

    11. 11 Title IV Program Budgets Aid Available

    12. 12 College Cost Reduction and Access Act

    13. 13

    14. 14 Student Benefits Grant Programs

    15. 15 Federal Pell Grant Eliminates tuition sensitivity award rule. Rule reduced maximum Pell award for students attending low cost institutions. Eliminated effective for the 2007-2008 award year. See DCL P-07-02 (October 12, 2007).

    16. 16 Federal Pell Grant Increases discretionary appropriated Pell Grant award amount using mandatory funds. $2.03 billion for 2008-2009. Full-time awards increased by – $ 490 for 2008-09 and 2009-10. $ 690 for 2010-11 and 2011-12. $1,090 for 2012-13. 2008-2009 Payment Schedule Released on January 14, 2008 (See DCL P-08-01)

    17. 17 TEACH Grants “Teacher Education Assistance for College and Higher Education Grants” Effective for the 2008-2009 award year. Must be repaid as Direct Unsubsidized Loan if student does not teach – For at least four years within eight years of completing program, as a - Highly Qualified Teacher At a Title I school In a specified subject area.

    18. 18 TEACH Grants Subject Areas – Mathematics Science A foreign language Bilingual education Special education As a reading specialist Other ‘high-need’ fields

    19. 19 TEACH Grants Up to $4,000 per year for first undergraduate or post-baccalaureate (non degree) program - $16,000 aggregate. Up to $4,000 per year for graduate student - $8,000 aggregate. Prorated amounts for less than full-time enrolment.

    20. 20 TEACH Grants Award, when combined with other assistance cannot exceed cost of attendance (No EFC). All Title IV student eligibility requirements – Regular Student Citizen or Eligible Non-Citizen Not in Default Satisfactory Progress FAFSA required.

    21. 21 TEACH Grants Student must: Be completing coursework necessary to begin a career in teaching, or Plans to complete coursework necessary to begin a career in teaching. Graduate degree alternatives for teacher or retiree with experience in a shortage area.

    22. 22 TEACH Grants Student Eligibility – GPA of at least 3.25 for each payment period— From high school for first year students. From college for other students. Or, above the 75th percentile on an admissions test, such as: SAT ACT GRE

    23. 23 Student Benefits Needs Analysis and EFC Calculation

    24. 24 Need Analysis and EFC Calculation Income Protection Allowances in EFC formulas. Modifies the way student income protection allowances are calculated and updated. Not parent income protection allowances Will result in lower EFC. Effective with the 2009-2010 award year.

    25. 25 Need Analysis and EFC Calculation Auto-Zero and Simplified Needs Test Increases Auto Zero EFC income level from $20,000 to $30,000 (indexed to CPI). Adds Dislocated Worker in addition to type of tax return and means tested benefits. Increases time from 12 to 24 months for receipt of means tested benefits. Effective for the 2009-2010 award year.

    26. 26 Need Analysis and EFC Calculation Excludes from specified list of “untaxed income” - Welfare payments Earned income credit amounts Special fuel tax credit Excluded foreign income Untaxed Social Security Benefits Effective for the 2009-2010 award year.

    27. 27 Need Analysis and EFC Calculation Adds to independent student definition – Is in foster care or a ward of the court, at any time when the individual is 13 years of age or older. Is an emancipated minor or is in legal guardianship in the student’s state of legal residence. Has been verified as an unaccompanied youth who is a homeless child or youth. Effective for the 2009-2010 award year.

    28. 28 Need Analysis and EFC Calculation Excludes ‘special combat pay’ from income. Qualified education benefit (529 plan) owned by dependent student is an asset of the parent. Distributions from 529 plans excluded from other financial assistance. Effective for the 2009-2010 award year.

    29. 29 Professional Judgment and Dependency Overrides Adds dislocated worker and homelessness as examples of when an FAA can use professional judgment. Provides that an FAA can use a dependency override made by another FAA within the same award year. Both effective for the 2009-2010 award year.

    30. 30 Borrower Benefits

    31. 31 FFEL and Direct Loans Interest Rates Reduces interest rates on undergraduate subsidized loans only from current 6.8% to – 6.0% for loans disbursed on or after July 1, 2008 5.6% for loans disbursed on or after July 1, 2009 4.5% for loans disbursed on or after July 1, 2010 3.4% for loans disbursed on or after July 1, 2011 Beginning July 1, 2012, rates revert to 6.8%. Unsubsidized Stafford Loans and all Staffords for grad students remain at 6.8% fixed.

    32. 32 FFEL and Direct Loans Economic Hardship Deferment Changed one of the eligibility conditions – From borrower’s earnings being less than 100% of the poverty level for a family size of two; To borrower’s earnings being less than 150% of poverty level for the borrower’s family size. Effective October 1, 2007

    33. 33 FFEL and Direct Loans Economic Hardship Deferment Regulations maintain income to debt eligibility calculation for full-time and part-time employment. Effective October 1, 2007

    34. 34 FFEL and Direct Loans Income Based Repayment Stafford and Student PLUS loans. Borrower’s maximum annual repayment amount no more than 15% of the difference AGI and 150% of the poverty line based on family size. If negative amortization, government pays interest on subsidized loans for up to three years. Unpaid amounts are forgiven after 25 years. Effective July 1, 2009.

    35. 35 Direct Loans (FFEL) Forgiveness for Public Service Employees Direct Loan borrower who – Makes 120 monthly payments, starting after October 1, 2007, and Is employed in public service during period when the 120 payments were made.

    36. 36 Direct Loans (FFEL) Forgiveness for Public Service Employees Payments count if made under – Income Contingent Repayment. Income Based Repayment. Other repayment plans, if payments are at least equal to 10-year standard repayment amount. FFEL borrowers may consolidate into Direct Loans to get benefit but 120 payments must have been in Direct Loans.

    37. 37 Perkins, FFEL, and Direct Loans Military Deferments HERA Military Deferment – All Title IV loans, not just loans that were made on or after July 1, 2001. Removes three year time limit. Adds a 180 day period after demobilization. New deferment for up to 13 months following end of service for certain borrowers who were in school or grace when called to active duty. Effective October 1, 2007.

    38. 38 Offsets from FFEL Program

    39. 39 FFEL Lenders and Guaranty Agencies Reduction of FFEL lender insurance from current 97% to 95% for loans first disbursed on or after October 1, 2012. Reduction of FFEL guaranty agency defaulted loan collections retention rate from 23% to 16%, effective October 1, 2007. Elimination of “Exceptional Performer” designation for some FFEL lenders, lender servicers, and guaranty agencies effective October 1, 2007.

    40. 40 FFEL Lenders and Guaranty Agencies Reduction of FFEL lender special allowance payments (SAP) by 55 basis points (40 for non-profit lenders). Increased lender loan fee from .50% to 1.0%. Reduction in guaranty agency account maintenance fee from .10% to .06% All effective October 1, 2007.

    41. 41 Special FFEL PLUS Loan Auction Pilot Requires an “auction” for the origination of FFEL parent PLUS loans. Starting on July 1, 2009. New parent PLUS borrowers only. State by state auction looking for lowest special allowance rates. Two “winning” lenders will be the only FFEL lenders new parent PLUS borrowers can use. Based upon state where dependent student is enrolled.

    42. 42 Negotiated Rulemaking

    43. 43 2007-2008 Negotiated Rulemaking Loan Issues Committee Conducted two Negotiated Rulemaking Sessions Jan 14-16 and Feb 4-6 Last session scheduled for March 4-6 NPRM to follow Comment Period Final Rule Implementation July 1, 2009

    44. 44 2007-2008 Negotiated Rulemaking Loan Issues Committee Issues Income-based Repayment Plans (IBR) (FFEL and Direct Loans) Public Service Loan Forgiveness (FFEL and Direct Loans) Economic Hardship and Military Service Deferments (FFEL, Direct Loans, and Perkins) Definition of Not-for-Profit Holder

    45. 45 2007-2008 Negotiated Rulemaking Teach Grant Committee Conducted three Negotiated Rulemaking Sessions Jan 8 – 10, Jan 22-24, and Feb 6 – 8 Consensus Met NPRM by Mid March 2008 Comment Period Final by June 1, 2008 Implementation July 1, 2008

    46. 46 2007-2008 Negotiated Rulemaking Teach Grant Committee Issues Eligible Institution Eligible Academic Program Four Year Service Requirement Define – Highly Qualified Teacher Title I School Other ‘high-need’ fields Completing coursework necessary to begin a career in teaching.

    47. 47 2006-2007 Negotiated Rulemaking For 2008-2009 & subsequent award years Four negotiating committees were established: Accreditation Loans General Provisions ACG and National SMART Grants

    48. 48 Accreditation The Secretary has decided that we will not issue regulations on accreditation at this time. 2006-2007 Negotiated Rulemaking

    49. 49 2006-2007 Negotiated Rulemaking Loans - NPRM Published July 12 Final Published November 1 ACG/SMART - NPRM Published - August 7 Final Published October 29 General Prov. - NPRM Published August 8 Final Published November 1 Effective Dates: July 1, 2008 Possible early voluntary implementation

    50. 50 2006-2007 Negotiated Rulemaking

    51. 51 2006-2007 Negotiated Rulemaking Consistent definitions of terms - Enrollment status, academic level, and independent study Addressing inconsistencies in the award of aid in nonstandard and nonterm programs

    52. 52 2006-2007 Negotiated Rulemaking

    53. 53 2006-2007 Negotiated Rulemaking

    54. 54 2006-2007 Negotiated Rulemaking

    55. 55 2006-2007 Negotiated Rulemaking

    56. 56 2006-2007 Negotiated Rulemaking

    57. 57 2006-2007 Negotiated Rulemaking

    58. 58 Mandatory Assignment of Defaulted Perkins Loans Schools hold more than $400 million in Perkins Loans that have been in default for 5 or more years Little collection activity seen on these loans. ED streamlined the voluntary assignment procedures, to encourage schools to assign their aged, defaulted loans

    59. 59 Mandatory Assignment of Defaulted Perkins Loans Secretary may require assignment of a Perkins Loan if— Outstanding principal balance is $100 or more, In default for 7 or more years, and No payment has been received in past 12 months ED will notify schools when to assign loans.

    60. 60 Preferred Lenders School may choose to have preferred lender(s) list (includes web processes) List must have at least 3 unaffiliated lenders Must disclose method/criteria for lender inclusion on the list Must provide comparative information on borrower benefits offered by listed lenders

    61. 61 Preferred Lenders Must include prominent statement advising borrowers that use of school preferred lender not required Cause any unnecessary delays in certification for borrowers not using one of the school’s preferred lenders

    62. 62 School FFEL Loan Certification A school may not: Refuse or delay certification based on borrower’s choice of lender or GA Assign lender to first-time borrower Refuse to certify or certify a reduced amount; except on a case-by-case basis, documented, and reason must be provided in writing to borrower Includes “school as lender”

    63. 63 Prohibited Inducements Affects FFEL lender and guaranty agency eligibility and participation in the program. Creates concept of “rebuttable presumption” for prohibited and allowed activities. Includes a non-exhaustive list of prohibited activities. Includes a list of allowed activities.

    64. 64 Prohibited Inducements Prohibited activities include: Payments to prospective borrowers, including prizes and additional financial aid Payments or other benefits to a school, school-affiliated organization, or individual for loan applications, volume of loans made, or placement on a preferred lender list

    65. 65 Prohibited Inducements Prohibited activities include: Payments or other benefits to student lender reps on campus or other solicitors to secure loan applications from prospective borrowers Payment of referral or processing fees to another lender or other party Payment of conference or training registration, transportation, and lodging costs for school or school-affiliated organization employees

    66. 66 Prohibited Inducements Prohibited activities include: Providing staffing to a school except on a short-term, emergency basis Payment of entertainment expenses related to lender-sponsored activities for school or school-affiliated employees Undertaking philanthropic activities in exchange for FFEL applications, volume, or placement on a school’s preferred lender list

    67. 67 Prohibited Inducements Allowed activities include: Assistance to schools comparable to that provided DL schools by the Secretary Support or Participation in student aid/financial literacy outreach with schools and guaranty agencies Toll-free numbers for FFEL info and school loan data transmission

    68. 68 Prohibited Inducements Allowed activities include: Reasonable costs of meals, refreshments, and receptions for meeting, training, or conferences if open to all attendees Reduced origination fees and interest rates Payment of Federal Default Fees Borrower benefits under repayment incentive programs Items of nominal value

    69. 69 Prohibited Inducements Allowed GA activities include: Payments for default aversion activities approved by the Secretary. Payments for expenses related to participation in GA’s governing board, official advisory committee, or for other official GA-sponsored activities.

    70. 70 Training

    71. 71 Financial Aid Professionals Portal under “Resources and Training” No sign-on necessary

    72. 72 TFAP

    73. 73 Training via the Web COD Basics for Direct Loans NSLDS Data Overview Available as Podcasts Applicant data resolution Identifying information sources with FAA Access Resolving data issues

    74. Saved Webcasts Available Through Web Screening Webinar on the College Cost Reduction and Access Act (CCRAA) Two Webinars on New Regulations

    75. 75 Upcoming FSA Training Spring 2008 Stand Up training in regional offices and some college campuses CCRAA New Federal Regulations posted November 2007 With your support, we will continue to encourage students to use the online method for filing the application. The FOTW Worksheet, the most effective tool students can use to facilitate the online application process, will still be available for bulk order by schools. In addition, Federal Student Aid has several promotional publications (e.g., the Need Money for College Brochure, Start Here Go Further Bookmark, the FAFSA on the Web Poster) that list application resources, explain how students can file the FAFSA and provide tips for completing the application. New for 2008-2009 is a PDF version of the FAFSA that students can submit for processing. The PDF version of the FAFSA will be available for download on various Federal Student Aid web sites, such as www.FederalStudentAid.ed.gov. Students can access the PDF, complete the form on the computer or by hand, and mail it to the address provided for processing. Schools will also be able to access the PDF from our web sites including FSAPubs at www.FSAPubs.org. With your support, we will continue to encourage students to use the online method for filing the application. The FOTW Worksheet, the most effective tool students can use to facilitate the online application process, will still be available for bulk order by schools. In addition, Federal Student Aid has several promotional publications (e.g., the Need Money for College Brochure, Start Here Go Further Bookmark, the FAFSA on the Web Poster) that list application resources, explain how students can file the FAFSA and provide tips for completing the application. New for 2008-2009 is a PDF version of the FAFSA that students can submit for processing. The PDF version of the FAFSA will be available for download on various Federal Student Aid web sites, such as www.FederalStudentAid.ed.gov. Students can access the PDF, complete the form on the computer or by hand, and mail it to the address provided for processing. Schools will also be able to access the PDF from our web sites including FSAPubs at www.FSAPubs.org.

    76. 76

More Related