Transcript Document

Federal Update
November 7, 2012
Annmarie Weisman
Training Officer
Topics

College Choice Tools
 ATB
 studentaid.gov
 Pell Duration of Eligibility
 Default Rates
 Grace Period Subsidy
• Executive Order 13607
 Subsidized Loan Limits
• Financial Aid Shopping
 Verification, etc.
Sheet
 Questions & Answers
 Regulatory Activity
 Recent Statutory Changes
2
For Discussion Purposes Only
College Choice Tools
3
College Navigator
For Discussion Purposes Only
5
College Choice: ScoreCard
For Discussion Purposes Only
Financial Aid Shopping Sheet
Cost of Attendance Elements
Institutional
Metrics:
Graduation rate under
“Student Right-toKnow”
Grant s and Scholarships
Most recent cohort
default rate
Net price After Grants
Median debt for
completers
Work Options
Loan Options
Other Options Including
Family Contribution
Custom Message
For Discussion Purposes Only
Loan repayment
information
Contact information
6
Student Specific
Information:
studentaid.gov
7
Federal Student Aid Websites
Solution: StudentAid.gov
FSA Social Media
Twitter
YouTube
For Discussion Purposes Only
Facebook
Cohort Default Rates
What is the CDR Calculation?

A cohort default rate is the % of the number of
the school’s FFEL and DL borrowers who enter
repayment in one Federal Fiscal Year (October
1 - September 30) who default in that federal
fiscal year or by the end of the:


next federal fiscal year (2 year rate)
next two federal fiscal years (3 year rate)
 Begins
with 2009 cohort
For Discussion Purposes Only
HEOA Changes

Increased monitoring from two to three years
 Establishes a three-year transition period for
sanctions
 On
9/17/12 - released the FY 2010 2-Year Cohort
Default Rates to schools (average = 9.1%)
 On 9/24/12 - released the FY 2009 3-Year Cohort
Default Rates to schools (average = 13.4%)
For Discussion Purposes Only
13
2-Year Versus 3-Year Calculation
The Numerator is the
number of borrowers
from the denominator
who default within a
cohort period
FY-09
FY-10
125
230
355
5000
7.1%
5,000
FY-09
125
FY-10
230
The Denominator is
the number of
borrowers who enter
repayment within a
cohort period
.071 or
FY-11
250
605
5000
.121 or 12.1%
5,000
1st official 3 year rates released 9/2012
14
Transition Period
15
GEN-12-10
EA – 6/29/12
For Discussion Purposes Only
17
E.O. 13607
Signed April 27, 2012
• Designed to ensure information, support and
protections put in place for those students enrolled in
post-secondary programs receiving federal military
educational benefits
• Schools participating in certain federal military
education benefits enter into an
agreement/understanding with DOD and VA
• 6/29/12 EA provides a link to recorded webinar and
the executive order
•
For Discussion Purposes Only
18
E.O. 13607
•
GEN-12-10 provides a series of Q & As to address
how TIV schools can comply with EO 13607
cost form – ED’s “Shopping Sheet”
• Aid Information – provides sample language
• State Authorization and recruitment – follow existing ED
regulations around state authorization,
misrepresentation, recruitment and incentive
compensation
• Accreditation – follow accreditation requirements
• Readmission – follow ED’s guidelines for returning
service members
• Standardized
For Discussion Purposes Only
19
E.O. 13607
•
GEN-12-10 provides a series of Q & As to address
how TIV schools can comply with EO 13607
– treat VA and DOD funds similar to R2T4
and nonTIV schools develop refund policy similar to
R2T4
• Individual education plans – definitions/terms, degree
requirements and transfer hour procedures
• Advising points of contact – basic understanding of
benefits and services for military/service and family
members and contact information for additional help
• Withdrawals
For Discussion Purposes Only
20
GEN-12-12
GEN-12-17
EA – 9/11/12
For Discussion Purposes Only
21
Shopping Sheet – 2013-2014
ED developed model format to deliver financial aid
information to students - section 484 of HEOA
• Encouraged to be used by schools starting in 13/14
• Designed to be used for undergraduate programs, but
can be used for any program
• Especially helpful for 1st year students
•
For Discussion Purposes Only
22
Shopping Sheet – 2013-2014
•
Required to be used by schools that agree to
comply with E.O. 13607 (principles of
excellence)
• Provide prospective veteran/service member
students with personalized form that contains
standardized information describing program
costs and costs that may be covered by
available Federal educational benefits and
financial aid
For Discussion Purposes Only
23
Regulatory Activity
24
Regulatory Activity (“Neg Reg”)

Loans I
 Pay as You Earn


Total and permanent disability (TPD)
Loans II
 Stand alone Direct Loan regulations

FFEL origination elimination
 Reasonable and affordable payments for
defaulted loan rehabilitation
25
For Discussion Purposes Only
Regulatory Activity
 Teacher
Preparation
 TEACH
Grant
 Title II accountability and reporting systems
 Pell


Grant
Finalization of Summer Cross-Over Interim
Rule
Fraud Prevention

New Neg Reg Process
 Early in 2013
26
For Discussion Purposes Only
Pay As You Earn
Income Based Repayment (IBR) Plan


Statutory - FFEL and Direct Loan
 Maximum annual payment amount is 15% of
discretionary income.
 Remaining balance forgiven after 25 years.
 New Law (SAFRA) – Effective 2014
 Maximum annual payment amount is 10% of
discretionary income
 Remaining balance forgiven after 20 years.
 New Borrowers on or after July 1, 2014
27
For Discussion Purposes Only
Pay As You Earn
Income Contingent Repayment (ICR) Plan


28
Statutory - Direct Loan Only
 Regulatory defined formula
 Complex
 Loan amount and income
 Remaining balance forgiven after 25 years.
 Limited “take-up” rate
For Discussion Purposes Only
Pay As You Earn
Pay As You Earn Plan Repayment Plan
ICR regulations to –
 Reduce maximum annual payment about from
15% of discretionary income to 10%
 Reduce forgiveness time from 25 years to 20
years
 Available to more borrowers
Amend
 Negotiated rulemaking concluded in March, 2012

29
NPRM Published July 17, 2012
 Final rule publication date Nov 1.
For DiscussionEarly
PurposesImplementation
Only
 Possible
Recent Statutory Changes
30
For Discussion Purposes Only
31
Ability-to-Benefit (ATB)
 Eliminates Title IV eligibility for students without
a high school diploma (or equivalent)
 Recognized equivalent includes:
 GED
 State certificate passing State authorized exam State
considers same as HSD
 Academic transcript of successful completion of at least a
2-year program acceptable for full credit toward a
Bachelor’s degree
 Excelled academically in HS and meets admission policy
into at least an AA degree
 Home schooled students
For Discussion Purposes Only
32
ATB Exception
 Students who attended a Title IV eligible program of
study prior to July 1, 2012 OR officially registered
for a TIV eligible program prior to July 1, 2012 AND
later attended that program may continue to qualify
under one of the ATB alternatives –
 Passing an independently administered,
approved ATB test
 Successfully completing at least six credit hours
or 225 clock hours
For Discussion Purposes Only
33
ATB Exception (cont.)
 Receipt of Title IV aid prior to July 1, 2012 not
required to qualify for ATB exceptions
 School must document student qualifies for use of
ATB alternative using NSLDS, transcripts, other
documentation from previous school indicating
enrollment in eligible program
 GEN-12-09 - provides a “grandfather” test and
various scenarios to assist determine if a student
qualifies for an ATB alternative
For Discussion Purposes Only
34
For Discussion Purposes Only
35
Pell Lifetime Eligibility Used (LEU)
 Reduces the duration of a student’s eligibility
to receive Pell Grant to 12 semesters (600%
- 6 full Scheduled Awards)
 Applies to all students effective with the
2012-13 award year
 Calculation includes all earlier years of the
student’s receipt of Pell/BEOG
 NO “grandfather” clause
For Discussion Purposes Only
36
Pell - LEU
 Add each of the annual percentages of a
student’s scheduled award that was actually
disbursed to the student
 If LEU >500% but <600%, partial eligibility
 Once LEU reaches 600%, student no
longer eligible for Pell
 May also impact FSEOG eligibility
For Discussion Purposes Only
37
Pell - LEU
• If <100% eligibility remaining, handle award
like a transfer student
• Pay up to full amount allowed in first payment
period/term
• Pay remaining balance in subsequent payment
periods
• Do NOT spread out percentage evenly over
remaining periods
• May round cents but cannot exceed 600%
For Discussion Purposes Only
38
Pell – Scheduled Award

Based on the statutory maximum award amount for
the year and the student’s EFC (and COA)
 Amount student would be eligible for if enrolled FT
for a full academic year
 2013-14 – Maximum Award = $5,550



If EFC = 0, scheduled award = $5,550
If EFC = 1,000, scheduled award = $4,550
Annual Award is the amount of scheduled award
received by the student
 Consider < FT, < full academic year, R2T4, etc.
For Discussion Purposes Only
39
Pell Grant Duration of Eligibility
 Examples –
 Student’s Scheduled Award was $5,550, but
only received $2,775 because only enrolled for
one semester, will have used 50% of that
award year’s scheduled award
 Student who was enrolled ¾ time for the entire
award year would have used 75% of his
scheduled award
Pell Duration of Eligibility
 Calculate the equivalency by adding together each
of the annual % of a student’s scheduled award
that was actually disbursed to the student
 LEU – Lifetime Eligibility Used
 The example student’s LEU is 125% of the
total 600%.
 Once LEU reaches 600%, student is no longer
eligible.
 If LEU > 500%, but < 600%, partial eligibility
41
Declining Pell – DCL GEN-12-18
•
Students can decline all/part of their Pell awards or
return some previously received Pell funds to
preserve future eligibility
Student cannot return Pell from a prior award year
• Student must provide a signed, written statement
indicating that they are declining/returning Pell funds
for which they are otherwise eligible and that those
funds may not be available once the award year ends
• School must submit any required adjustment records
for the student to the COD System
•
For Discussion Purposes Only
42
GEN-11-16
For Discussion Purposes Only
43
Upfront Rebates
Elimination of Direct Loan Incentives
 Terminates repayment incentives (“upfront
rebate”) to encourage on-time repayment of
loans
 Effective for loans 1st disbursed on or after
July 1, 2012
 Still allows interest rate reduction to borrowers
who repay electronically
For Discussion Purposes Only
44
Grace Period Interest Subsidy
 Temporarily eliminates the interest
subsidy on Direct Subsidized Loans
during the six month grace period
 Applies to new Direct Stafford Loans
when the 1st disbursement is made on
or after July 1, 2012 and before July 1,
2014
For Discussion Purposes Only
45
Aggregate Loan Limits
If a dependent student’s parent is denied a PLUS,
the student can borrow up to the annual
independent loan levels.
•Additional
amounts do not count against dependent
aggregate loan limits
able to borrow as dependent student (i.e. 1st year
dependent student can borrow $3,500 – base sub/unsub
and $2,000 additional unsub) would still count against
dependent aggregate loan limits.
•Amounts
•Undergrads
total aggregate = $57,500
For Discussion Purposes Only
46
Graduate Students
 Loan Subsidy eliminated for graduate students*
 Effective for loan periods starting on/after 7/1/2012
 Annual limits unchanged, all unsubsidized
($20,500)
*Subsidy still available for preparatory coursework
and teacher certification programs
For Discussion Purposes Only
47
Subsidized Loan Limitation
 When a student has received subsidized loans
for 150% of the published time of the academic
program –
 The student may not receive any additional
subsidized loans, and
 The subsidized loans received from July 1,
2013 on lose their subsidy
 Applies to “new borrowers” on or after July 1,
2013.
 Special calculation of 150% for transfer students
 Special calculation for less than fulltime students
Subsidized Loan Limitation
 150% of the published length of the program
 1st instance could be as early as December
2013 because of short-term programs
 Borrower responsible for interest (new
borrowers with loans on or after July 1, 2013)
 Loans can lose their subsidy
Subsidized Loan Limitation
 FSA will track, calculate, and inform
 Likely to be codes and comments on ISIRs
 COD Editing
 Schools will need to provide program
information, including CIP code, length of
program, and possibly more
 Probably as part of COD reporting
 Starting in 13-14 (possibly only for new
borrowers)
Verification
51
2012-13 Verification
Still some tax filers not able to obtain
IRS Tax Return Transcripts



52
Guidance on IFAP (EA 2012-11-02) New!
Alternative documentation when tax transcript
is not available/cannot be obtained
For Discussion Purposes Only
Verification Documentation
•
Tax Return Transcript
Based on initial tax filing
• Obtained in most situations where IRS Data
Retrieval process cannot be used
• Exceptions – amended returns, identity
theft, foreign countries, certain island
nations and US commonwealths
• Electronic Announcement dated 8/21/12
•
For Discussion Purposes Only
53
Verification Documentation
•
Amended Tax Returns
1) a signed copy of an original tax return; OR
a Tax return transcript; AND
2) a signed copy of IRS form 1040X
• Identity Theft
1) a signed copy of the paper IRS income tax
return; AND
2) a signed copy of IRS Form 14039 “Identity
Theft Affidavit” OR a signed statement, or
police report if applicable
For Discussion Purposes Only
54
Tax Filers - Extensions
• Person is required to file, but obtained extension, must
submit:
– IRS form 4868 or IRS approval to extend beyond October
15, 2012
– W-2 for each source of employment income
– Signed statement by a self-employed individual
certifying amount of AGI & US income tax paid for 2011
– When above documentation received, verification is
considered complete (disbursements are valid)
• School may request transcript/IRS DRT when taxes are filed
For Discussion Purposes Only
55
2013-14 Verification
•
Continuing to take small steps towards
customized verification
• Items to be verified will be grouped
• Individual student’s ISIR record will
indicate which group of items the student
must verify
For Discussion Purposes Only
56
2013-14 Verification Items

57
Same core FAFSA items as in 2012-13
 AGI
 Taxes Paid
 Four Untaxed Income Items
 Education Credits
 # in Household
 # in College
 SNAP
 Child Support paid
For Discussion Purposes Only
2013-14 Verification
Verification items—
•Retained all items subject to verification in
2012-13
•Added two new items
High school completion status
• Identity/Statement of Educational Purpose
•
Federal Register – July 12, 2012
DCL GEN-12-11
For Discussion Purposes Only
58
2013-14 Verification
•
Documentation of HS completion
status:
HS diploma; or
• Final HS transcript that shows the date of
graduation
•
Note: Alternative documentation may be
accepted if a copy of an applicant’s HS diploma
or final HS transcript is unavailable (…but
consider state and accreditor requirements)
For Discussion Purposes Only
59
2013-14 Verification
•
Documentation of HS completion
status: Recognized equivalent of a HS
diploma
•
•
•
General Educational Development (GED) Certificate;
State certificate received by a student after the student
has passed a State-authorized examination that the
State recognizes as the equivalent of a HS diploma;
Academic transcript of a student who has successfully
completed at least a two-year program that is
acceptable for full credit toward a bachelor's degree; or
For Discussion Purposes Only
60
2013-14 Verification
•
Documentation of HS completion status:
recognized equivalent of a HS diploma
•
For a person seeking enrollment in an educational
program that leads to at least an associate degree
or its equivalent and has not completed HS but has
excelled academically in HS, documentation from
the HS that the student excelled academically in HS
and documentation from the postsecondary
institution that the student has met the formalized,
written policies of the postsecondary institution for
admitting such students
For Discussion Purposes Only
61
2013-14 Verification
•
Documentation of HS completion
status: Homeschooled
Transcript, or the equivalent, signed by the parent
or guardian, that lists the secondary school courses
completed by the applicant and documents the
successful completion of a secondary school
education; OR
• A secondary school completion credential for home
school (other than a HS diploma or its recognized
equivalent) provided for under State law
•
For Discussion Purposes Only
62
2013-14 Verification
•
Documentation of identity/statement of
educational purpose
•
Appear in person* and present to an institutionally
authorized individual
• A valid
govt.-issued photo ID (e.g., driver’s license,
non-driver’s license, passport);
AND
• A signed
statement of educational purpose
*If unable to appear in person, must provide an original,
notarized statement of educational purpose signed by the
applicant
For Discussion Purposes Only
63
2013-14 Verification
•
Documentation of identity/statement of
educational purpose (cont.)—
•
Must maintain, an annotated copy of the
identification submitted by the applicant that
includes:
• The date documentation was received;
AND
• The name of the institutionally-authorized
individual that obtained the documentation
For Discussion Purposes Only
64
Verification Tracking Groups
Verification tracking groups
and
Items to verify based on group
(effective for 2013-14)
For Discussion Purposes Only
65
V1– Standard
Tax Filers:
• Adjusted Gross Income
• U.S. Income Tax Paid
• Untaxed Portions of
IRA Distributions
• Untaxed Portions of
Pensions
• IRA Deductions and
Payments
* if For
listed
on FAFSA
Discussion
Purposes Only
66
• Tax Exempt Interest
Income
• Education Credits
• # of Household
Members
• # in College
• SNAP (Food Stamps) *
• Child Support Paid *
V1—Standard (cont.)
Non-Tax Filers
Income Earned from Work
• # of Household Members
• # in College
• SNAP (food stamps) *
• Child Support Paid *
•
* if listed on FAFSA
For Discussion Purposes Only
67
V2—SNAP
Supplemental Nutrition Assistance Program
(SNAP-Food Stamps)
A statement signed by the applicant/parent affirming
that SNAP benefits were received by someone in the
household during the 2011 and/or 2012 calendar years*
*applicant must obtain documentation from the issuing
agency if the school has concerns with accuracy of
information
For Discussion Purposes Only
68
V3—Child Support Paid
Child Support Paid by applicant/spouse/parent
Statement signed by the applicant/parent certifying the—
a) amount of support paid;
b) name of the person who paid the support;
c) name of the person to whom support was paid; and
d) name(s) of child(ren) for whom support was paid
*applicant must provide supporting documentation if the
institution has reason to believe that the information
provided in the signed statement is inaccurate
For Discussion Purposes Only
69
V4—Custom
•
High School Completion Status
•
Identity/Statement of
Educational Purpose
•
SNAP (Food Stamps)
•
Child Support Paid
For Discussion Purposes Only
70
V5—Aggregate
•
High School Completion Status
• Identity/Statement of Educational Purpose
AND
•
All items indicated-Tax Filer (V1)
• All items indicated-Non-Tax Filer (V1)
For Discussion Purposes Only
71
New initiative – “unusual enrollment”
•
Unusual enrollment patterns
• OIG initiative & FSA
• “Pell runners” (e.g., 5 - 6 schools over 2 years)
•
•
Are they who they say they are
Are they series about their education
Not part of verification!
• More info coming soon
• C flags with requirement to follow up
•
For Discussion Purposes Only
Resources
73
Web Resources
•
Studentaid.gov - one source of information
for prospective and current students about
Federal Student Aid
•
IFAP.ed.gov – library of information with
links to laws, regulations, policy updates,
announcements, etc. (for professional use)
•
fafsa.gov - FAFSA application filing and
information
For Discussion Purposes Only
74
74
Help with Title IV Questions
•
For Schools & Other Professionals
•
•
•
•
Research and Customer Care Center (RCCC)
1-800-433-7327
[email protected]
For Students
•
•
Federal Student Aid Information Center (FSAIC)
1-800-4FED-AID
For Discussion Purposes Only
75
For Discussion Purposes Only
76
Contact Information
•
For follow-up questions on this session, contact
me at:
Annmarie Weisman, Training Officer
[email protected]
215-656-6456
•
To provide feedback to my supervisor, contact:
Jo Ann Borel, Supervisor
[email protected]
281-758-8122
For Discussion Purposes Only
77
Evaluation
Your attention is appreciated at today’s session!
To provide feedback to me and my supervisor,
please complete an evaluation form.
Thank you!!!
For Discussion Purposes Only
Region III Training Team
•
Greg Martin, Training Officer
• [email protected]
• 215-656-6452
•
Craig Rorie, Training Officer
• [email protected]
• 215-656-5916
•
Annmarie Weisman, Training Officer
• [email protected]
• 215-656-6456
For Discussion Purposes Only
79
QUESTIONS?