Transcript Slide 1
2012 Financial Aid Changes
W H A T ’ S C H A N G I N G A N D W H A T I T M E A N S F O R Y O U R S T U D E N T S
A LOOK AT THE NUMBERS
B I G C H A N G E S
Unduplicated Numbers
Unduplicated Financial Aid Recipients
Unduplicated Financial Aid Recipients 610 112 652 641 714 004 732 362 732 321 781 819 891 984 1 045 112 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
8 Year Comparison
2002-03 Year 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 8 year +/ 8 year % +/ Credit Enrollment Number of BOG Fee Waivers Dollar Value of BOG Fee Waivers Number of Pell Grants Dollar Value of Pell Grants Dollar Value of All Aid Programs
2,690,594 2,453,486 2,439,443 2,471,501 597,286 639,105 699,015 716,796 $102,726,455 $168,185,622 $266,390,548 $273,785,746 239,925 246,093 259,958 254,603 $533,720,693 $566,248,344 $605,956,126 $589,892,151 $895,275,669 $1,018,060,333 $1,170,057,941 $1,170,094,754 2,529,893 2,687,314 2,816,261 2,675,379
2,551,209 -139,385 -5.2%
715,516 761,968 870,318 1,023,645
1,130,845 533,559 89.3%
$249,021,634 $225,305,123 $253,942,628 $369,297,507
$410,709,338 307,982,883 299.8%
247,143 270,098 321,066 418,775
491,577 251,652 104.9%
$573,914,323 $668,170,200 $881,680,875 $1,356,231,619
$1,623,367,005 1,089,646,312 204.2%
$1,132,521,342 $1,242,937,640 $1,553,328,885 $2,228,378,885
$2,546,557,910 1,651,282,241 184.4%
Policy Decisions and the Budget
Decisions about Financial Aid eligibility and access to college and other requirements should be made as policy decisions—BASED ON DATA and what is best for the STUDENTS.
More and more the decisions develop as part of budget policy.
CASE IN POINT: The federal budget act passed in mid-December included a number of dramatic changes to Financial Aid policy.
FEDERAL CHANGES
H A P P E N I N G N O W
6 FT Year Limit on Pell Grant
6 FT Years or 600% of Pell in a LIFETIME At any college Department of Ed keeps the calculator and will block anyone over 6 FT Years So, some of your students are out of Pell or will run out before they get their BA Reinforces the SSTF recommendation to FOCUS the students early
Elimination of ATB
Effective July 1, 2012, students must have a high school diploma or the equivalent (i.e. GED or California High School Proficiency Exam) to be eligible to receive federal student aid.
Interest Subsidy for Student Loans
New loans made on or after July 1, 2012, and before July 1, 2014, will
not
be eligible for interest subsidy during the six month grace period.
Interest on a student loan just rose to
6.8%
prime rate below 2% despite
Verification Changes
Biggest Change is that some students and parents can import their information from the IRS to their FAFSA.
If they opt not to, or are not allowed to, they will have to get an IRS Tax Transcript.
This will delay aid for some students.
We must also start to verify child support and food stamps as well.
Satisfactory Academic Progress
Your campus probably made BIG changes this year.
Minimum requirements are 2.0 GPA (term and cum.) Minimum completion rate of 67% (term and cum.) Your campus may opt to be stricter Students who are disqualified must go without aid except in exceptional cases of unforeseen extreme issues which can be verified.
Course Repeats
THIS IS DIFFERENT FROM THE NEW STATE RULES ON REPEATS!!
A student may be paid federal aid to repeat a course they did not pass, until they either pass the class or are disqualified from aid.
A student who passed the class (and the feds define a ‘D’ as passed) and want to improve their grade, can only be paid to repeat it ONCE no matter what.
Cohort Default Rates
They are going to 3 years from 2 years—so most campuses will see dramatic increases!
CCCs are ‘low participation’ colleges. With less than 40% of our students taking loans, we can apply for a waiver of sanctions.
Clock Hours Changes
There is still much negotiation on this but: New definition of Credit hour for Federal Aid purposes Also indicated that if a state or federal licensing agency requires a certain number of hours before a student can take an exam—the certificate or degree program must be in Clock Hours
Gainful Employment Report
Many of you have probably already been involved in discussions about the requirement to report data on all Vocational Certificate Programs.
But-did you know that the State of California passed SB-70 which affects a schools ability to participate in the Cal-Grant programs?
Proposals Floating
Increase in Federal Work Study IF the institution places students off campus Elimination of Auto Zero EFC which will reduce the number of students receiving FT Pell
State Changes
C O M I N G I N 2 0 1 2 - 1 3
BOG Fee Waiver Changes
No more $1 of need eligibility!
Student must have $1104 dollars of need 24 units X $46= $1104
Dream Acts AB 130 and 131
Effective January 1 st 2013 AB-130 allows institutions to grant NON-public funds/scholarships to AB-540 students AB-131 makes AB-540 students eligible for BOG Fee Waivers AB-131 also makes AB-540 students eligible for Cal Grants.
SSTF Recommendations
Max Unit Cap on BOG Fee Waivers-110?
Student must meet A&R academic and progress standards Students must declare a degree, certificate or career advancement goal.
CIOs: Help Connect Faculty to FA Changes
Ask questions and understand the implications Ensure communication to students (flyers, email, Portal, etc.) Have FA director and staff interact with faculty Communicate with Academic Senate regularly
Some Dilemmas
Should students be advised to get more than one degree given Pell limitations?
How soon can students realistically develop a meaningful program of study?
Should students be allowed multiple ed plans for FA purposes?
What can Instruction do to help students complete courses faster?