Transcript Slide 1

National Association of Student
Financial Aid Administrators
The State of Student Aid
NJASFAA Conference
© NASFAA 2011
Slide 1
Once we considered education a
public expense, we know now it
is a public investment.
—Lyndon B. Johnson
Agenda
1.
Washington Political Climate
2.
Trends in Financial Aid
3.
Predictions for Future Funding
4.
Campus Impact/Takeaways
5.
What’s Going on at NASFAA?
© NASFAA 2011
Slide 3
Washington Political Climate
Political Climate
Three climate drivers:
1.
Partisanship & Brinkmanship
2.
Budget Politics Dictating Policy
3.
Election Season has Begun
© NASFAA 2011
Slide 5
© NASFAA 2011
Slide 6
Budget, Budget, Budget
FY 2011
FY 2012
Deficit
Reduction
Debt
Ceiling
© NASFAA 2011
Slide 7
Budget, Budget, Budget
PUBLIC
SAYS DON’T
TOUCH
EDUCATION!
YouGov Poll
© NASFAA 2011
Slide 8
We’ve ALREADY Taken our Fair Share
Student Aid Cuts
Elimination of Year-Round Pell
Elimination of Graduate Student Interest Subsidy
Elimination of LEAP
0.2 Percent Across-the-Board Cuts
Sunsetting of ACG/SMART
*Future: Next year interest rate rises to 6.8 percent
Budget & Appropriations 101
What is supposed to happen…
© NASFAA 2011

President releases budget in February

House & Senate pass Budget Resolution
in April

Appropriations Committees draft bills
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Appropriations bills voted on and passed
before Oct. 1
Slide 10
Budget & Appropriations 101
But what usually happens…
© NASFAA 2011
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Omnibus spending bill—combines all 12
spending bills into one
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Continuing resolution (CR)
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FY 2011, in Review
© NASFAA 2011
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Congress passed long-term CR, 4/14/2011
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Major Student Aid Provisions
◦
Maximum $5,550 Pell Grant award for award year 2011-12
◦
Elimination of Year-Round Pell (crossover reg lifted for summer
2011)
◦
SEOG cut by $20 million; cuts to TRIO, GEAR UP
◦
0.2 percent cut across-the-board
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Eliminate LEAP, Byrd Scholarships
Slide 12
Budget Control Act
Result of “debt ceiling” negotiations
© NASFAA 2011
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Congress passed on Aug. 2
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Two stage process:
◦
$1 trillion in deficit reduction through spending caps; $900 billion
debt ceiling increase
◦
Establishment of “Super Committee” to come up with additional
$1.2 trillion in cuts before end of calendar year
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Budget Control Act
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© NASFAA 2011
Main provisions for student aid:
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Eliminate in-school interest subsidy for graduate students
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Eliminate Direct Loan repayment incentives
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Provide $17 billion for Pell Grants for FYs 12 and 13
The math:
◦
BCA Pell funding reduces FY 12 shortfall to $1.3 billion, down
from $11 billion. Also will provide some additional Pell funding
for FY 13
◦
$4.6 of the savings went toward deficit reduction
Slide 14
Budget Control Act

© NASFAA 2011
The “Super Committee”
◦
Bipartisan, bicameral
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12 members, 2 co-chairs
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Must come up with $1.2 trillion in cuts by December, if not an
automatic across-the-board cutting mechanism—
sequestration—goes into effect
◦
Committee has begun deliberations
Slide 15
FY 2012

FY 2012 fiscal year began 10/1
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Neither House or Senate completed their
12 spending bills
◦ Both chambers put forth Labor-H bills
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© NASFAA 2011
CR passed to temporarily fund
government through November 18
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FY 2012
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Senate Labor-H spending bill
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Provides maximum $5,550 Pell Grant
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Eliminates interest subsidy during grace period
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© NASFAA 2011
Saves $2.43 billion over five years, this would plug remaining
$1.3 billion Pell shortfall
◦
Level funding for all other student aid programs
◦
Bill marked-up and approved by entire Appropriations
Committee
Slide 17
FY 2012
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© NASFAA 2011
House Labor-H spending bill
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Provides maximum $5,550 Pell Grant
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Limits eligibility to 6 years
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Revoke Pell eligibility for less than half-time
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Eliminate Ability to Benefit option
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Reduce student income protection allowances (IPA)
Slide 18
FY 2012
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House Labor-H spending bill, con’t.
◦ Reduce auto-zero income threshold
◦ Reduce minimum award
◦ Reinstate previously excluded forms of untaxed income
◦ Bill dropped but not marked-up or approved by Committee
© NASFAA 2011
Slide 19
What next???

© NASFAA 2011
Minibus spending bill likely
◦
Will combine, or “bundle”, 2-3 appropriations bills into one
◦
Both House and Senate Labor-H bills will serve as starting points
for negotiation
◦
Recent Updates
◦
***Important to remember*** Super Committee
negotiations will be going on simultaneously and could very
easily impact any FY 12 bill
Slide 20
Takeaway: Student aid is caught up in
a much larger political dysfunction &
ideological impasse.
Takeaway: Student aid changes will
likely continue to come through the
budget process
Takeaway: Everything is still “on the
table” and there very well could be
some additional student aid
changes into the next year
Takeaway: The maximum Grants
($5,550) appears to be in pretty
good shape for the immediate
future, although there is still a risk
Advocacy and You
What is Advocacy?
1.
To recommend or support publicly
2.
A person who upholds or defends a cause;
supporter
3.
A person who intercedes on behalf of another
© NASFAA 2011
Slide 26
What is Advocacy?
1.
Lobbying v. Advocacy
2.
You don’t need to be in DC to be an effective
advocate
© NASFAA 2011
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What is Advocacy?
Advocacy is proactive AND reactive
© NASFAA 2011
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Why Does NASFAA Advocate?
The National Association of Student Financial Aid
Administrators (NASFAA) supports the training, diversity,
and professional development of financial aid
administrators; advocates for public policies and
programs that increase student access to and
success in postsecondary education; and serves as a
forum for communication and collaboration on student
financial aid issues.
© NASFAA 2011
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Why Does NASFAA Advocate?
Our advocacy efforts center around these major policy areas:
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Increasing access to higher education, including early awareness and
outreach
Simplifying student aid systems
Encouraging college persistence & completion
College savings and financial education
Minimizing student indebtedness and emphasizing grant and work aid
Supporting the primacy of need-based aid
© NASFAA 2011
Slide 30
NASFAA Advocacy Tools
Letters
 Statements
 Testimony
 Social Media
 Educational Materials
 Coalitions & Partnerships
 Hill Visits
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© NASFAA 2011
Slide 31
NASFAA Advocacy Examples
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Letter to Super Committee
Administrative Cost Allowance One-Pager
Elimination of Crossover Regulation for Summer 2011
National Profile & Congressional Staff Orientation
Recent Budget Bill Hill Visits
Save Student Aid Facebook Page
Budget Center
Committee for Education Funding & Student Aid Alliance
Participation in Award Letter Discussions
© NASFAA 2011
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Advocacy and You
© NASFAA 2011

Visit our Facebook Page!
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Write letters to your delegation and to Super
Committee members
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Get students involved!
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Visit our “Take Action” page and “Budget
Center” to stay up to date on legislative news
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Use our tools as examples
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Advocacy and You
© NASFAA 2011

Build relationships with your lawmakers now by delivering
information sheets on how their constituents—the students and
families you serve—benefit from the student aid programs.
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Follow the latest legislative developments by reading Today’s News,
the NASFAA Advocate, and following us on the NASFAA Facebook
page and the Save Student Aid Facebook page.
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Share with NASFAA all your correspondence with lawmakers so
we can support you and understand how to better work with your
Congressional delegates.
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Visit NASFAA’s “Take Action Page” to stay up-to-date on
NASFAA’s latest calls to action
Slide 34
Advocacy and You
© NASFAA 2011

Visit our Facebook Page!

Write letters to your delegation and to Super
Committee members

Encourage your students to do the same

Visit our “Take Action” page and “Budget
Center” to stay up to date on the latest news
and to learn about ways for you and your
campus to get involved
Slide 35
Other than the Budget…
© NASFAA 2011

Award Letter Conversations
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Several Research Projects
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Reauthorization
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Forum
Slide 36
Question and Answer Segment
Questions?
[email protected].
© NASFAA 2011
Slide 37