Transcript Document

Title IV Federal Update
AASFAA Fall Conference
Florence, AL
October 14 – 17, 2008
Michael C. Roberts
Federal Student Aid
U.S. Department of Education
Today’s Agenda
 Continuing Resolution
 Reauthorization (HEOA)
 ECASLA – Brief Review
 Teach Grant Updates
 Other Federal Updates
 Upcoming Training
Selected Amendments
2
Continuing Resolution and
Federal Pell
 Congress passed a Continuing
Resolution (CR) until March 6, 2009.
The President is expected to sign.
 Federal Pell Grant has an estimated $6
billion shortfall.
 Congress added a partial payment of
$2.5 billion in CR to fund Federal Pell.
 Congress also prohibited ED from
reducing Federal Pell awards prior to
expiration of CR.
Reauthorization
Selected Amendments
View Full Report
http://help.senate.gov/Hearings/2008_07_29_E/KOS08400_xml.pdf
or
Black line :http://www.nchelp.org/index.cfm
4
Higher Education
Opportunity Act - HEOA
 Date of Enactment – 8/14/2008
 Sense of Congress
 Negotiated Rule Making
 Email comments ended October 8:
[email protected]
 ED website; http://www.ed.gov/heoa.
5
HEOA –
Title IV Student Assistance
 Federal Grants
 Federal Work-study
 Federal Student Loans
 Federal Perkins Loans
 Needs Analysis
 General Provisions
 Other Institutional Requirements
6
HEOA 401 – Pell Grant Program
The CCRAA implemented mandatory
spending add-ons to increase the Pell
Grant maximum award by:
 $490 for the 2008-09 and 2009-10
award years
 $690 for the 2010-11 and 2011-12
award years
 $1,090 for the 2012-13 award year
HEOA 401 – Pell Grant
Maximum Awards
2006-2014
Fiscal Year
2006
2007
2008
2009
2010
2011
2012
2013
2014
Award Year
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
Authorized
$5,800
$5,800
$5,800
$6,000
$6,400
$6,800
$7,200
$7,600
$8,000
Appropriated
$4,050
$4,310
$4,731
+ $490
+ $690
+ $690
+1,090
?
?
HEOA 401 – Pell Grant
 Minimum Pell Grant – 10% of max award
 18 semester limitation
 Automatic zero EFC
• 9/11/2001, Iraq, Afghanistan Armed Forces dependents
– killed in action
 Ineligible if serving “an involuntary civil
commitment” after completing time for
sexual offenses.
 Effective Date: July 1, 2009
9
HEOA - 401
Year Round Pell Grant
Example: Watch for Details!
Full-Time – Maximum Award $4,000
Summer Award – header
Fall Award
Spring Award
Summer Award
$2,000
2,000
2,000
$2,000
Life-time Maximum: 4 of 18 used
10
HEOA 402 - ACG/SMART
 Revises ECASLA – effective
dates
• Previous January 1, 2009
• Revised – July 1, 2009
 Reinstates Secretary Authority
• Thru June 30, 2009
• July 1, 2009 – states officials
 Clarifies time period for unused
funds
11
HEOA 406/407 - SEOG/LEAP
 SEOG
• Authorizes appropriation
• Increases allowance for books and
supplies – fair share allocation $450 to
$600
 LEAP
• Maximum increased to $12,500
• State notification to student
• SLEAP replaced with Grants for Access
and Persistence (GAP)
• GAP minimum = State undergrad
tuition and mandatory fees
HEOA 407– LEAP cont.
 New eligibility criteria – Must
meet at least two of the
following:
1.
2.
3.
4.
EFC = 0 or state approved alternative
State’s maximum undergraduate
award
Participant - Early information and
intervention, mentoring or outreach
program
GAP recipient
13
HEOA 420 – Teach Grants
 Plain language disclosure required
 Clarification on service agreement
obligation due to changes in high
need field
 Waiver of service agreement due to
extenutuating circumstances
 Evaluation of the effectiveness of the
Teach Grant program required
14
HEOA 441-447 - FWS
 Pay for Civics and Government
Awareness Projects
 Priority Employment Projects
• Natural Disasters, Emergency response,
evacuations, etc.
 Flexible Use of Funds - Disasters
 New Off-campus Community Service
Grant Funds – 2009-14
• Early childhood education projects
• Emergency/Disaster Preparation
15
HEOA 422 – FFELP
 VA Benefits excluded from Loan
eligibility determination – effective- 7/1/10
 In-school deferments may be granted
by lenders – use of NSLDS*
 Lenders disclosures to borrowers
• Deferments of unsubsidized loans
• Loans transferred between lenders
 Guarantors
• May conduct exit counseling
• Prohibitions: unsolicited loans, prizes, travel,
entertainment expense, etc. to obtain loans
16
HEOA 428 – Unsubsidized
Stafford Loan Limits
 Undergraduates
 Pursuing coursework
• Undergraduate degree
• Certificate program
 Increased loan limit of $6,000
17
HEOA 424 – PLUS Loans
 Parent PLUS Borrowers
•Repayment
60 days after disbursement
o ECASLA – Continues 6 months after
student ceases half-time enrollment
o
 Student PLUS Borrowers
•Repayment – 6 months after
ceases half-time enrollment
18
HEOA 425 – Consolidation Loans
 Lenders
• Disclose information to prospective
borrowers in a clear and conspicuous
manner, at the time of application
• Disclose if consolidation will result in a
loss of benefits
• Authority to consolidate extended to
2014
HEOA 451-454 – Direct Loans
 Terms and Conditions
• Income Based Repayment
• Military Borrowers-no interest accrual (disbursed after 10/1/08)
• School Disclosures to students
 Loan Cancellation for Teachers
 FFEL Consolidation into DL
20
HEOA 461-466 – Perkins Loans
 Loan Limits Increase
•
•
•
•
$5,500 UG; $8,000 GR
UG Aggregate – $27,500
GR/Prof Aggregate – $60,000
All others - $11,000 (from $8,000)
 Extension of Authority
 Agreements with institutions
 Cancellation for public service
21
HEOA 430: Loan Forgiveness
 Service in Areas of National Need
• School Administrators
o Early Childhood educators – Highly Qualified Teachers Superintendents school counselors – principals - Speech
Language Pathologists - Librarians
o Audiologist - nutrition professionals
• Some medical professions
o Nurses – Dentists – Occupational Therapist – medical
specialist – physical therapist
• Child welfare workers –
• National Service – Public sector employees
 Borrowers – No dual forgiveness
 Teachers/(others) – Same as others so
employed
22
HEOA 471-472: Need Analysis
 Cost of Attendance
• The formula excludes the value of Military
housing/allowance from untaxed
income/benefits. Effective July 1, 2010
 FAA Allowed Discretion – PJ
• Nursing home, medical, dependent care expenses,
• Dislocated worker status to adjust EFC
• Offer Unsubsidized Loan when
o No parental support
o Parent’s refuse to complete the FAFSA
23
HEOA 473 – Need Analysis
 Definitions
• Simplify FAFSA – Use preceding tax year data
• No room allowance in COA for military housing
or basic allowance for housing
• Clarify Independent Student Definition
o
o
o
an emancipated minor or in legal guardianship as
determined by a court
orphans, those in foster care, or wards of the court,
or
those that were orphans, in foster care, or a ward of
the court at any time when the individual was 13years-old or older, or was immediately prior to
attaining the age of majority
24
HEOA 483/484 – General Provisions
 Improved Forms and Processes
• EZ FAFSA for auto-zero EFC
• Reduce FAFSA data by 50%
• FAFSA by Phone
• Parent’s SSN and DOB on FAFSA
• FAFSA filling over the phone – SNT Zero EFC
• FAFSA preparers – Must indicate the FAFSA
is FREE, can be completed without
professional assistance, provide a link to
federal site.
 Model Institution financial aid form
 Encourage ED and IRS Coordination
 Include necessary state data items to award
state grant aid
25
HEOA 485 – General Provisions
 Student Eligibility
• SSN no longer exempt – Rep of
Marshall Islands and the Fed States of
Micronesia
• Ability to Benefit flexibility– 6 credit
hours or equivalent coursework
• Drug Convictions – regain eligibility –
pass 2 unannounced drug tests
• IRS Tax information – Pre-populate
FAFSA data – taxpayer consent
required
26
HEOA 493 – General Provisions
 Program Participation
Agreements (PPA)
• 90/10 Rule changes moved to PPA
• Disclose disciplinary results to alleged
victims of violent crimes and nonforcible sex offences
• Preferred Lender List requirements
• Mandated Code of Conduct
• Prohibits assignment of lenders
27
HOEA 493 – Coordination
with Other Offices
 PPA
• Institutional Scholarships classified
revenue – “PPA 90/10 rule”
• Disbursed or Delivered Title IV funds
presumed to be used for tuition, fees or
other institutional charges
• Timely notification of outside
scholarships or other assistance
• Voter registration transmission to
students
28
HEOA - Admissions
 Sec 101:Admissions as Regular
Student
• Home-schooled students
• Proprietary and postsecondary allowed
to admit dually or concurrently enrolled
• Effective 7/1/10
 Sec 487:Readmission Requirements
for service members
HEOA – 111/112/114
 Sec 111: Transparency in College
Tuition to consumers
 Sec 112: Textbook Information
 Sec 114: In-state Tuition rates for
Armed Forces Members, Spouses and dependent
Children
30
HEOA – Registrar
Academic Affairs/ITT
 Sec 488 Information disclosures
• Plans to improve academic programs
• Plans to detect and prevent unauthorized use of
copyrighted materials on IT systems
• Info on student body, diversity, placement in
employments and types employment, report on fire
safety, retention rate of certificate or degree seeking,
FT undergrads
 Sec 492: Articulation Agreements
 Sec 495: Accrediting Agencies &
Distance Education
31
HEOA 497 – Program Reviews
 Secretary required to
Allow school adequate time to review
and respond to PR before final audit
is issued
o Take the response into consideration
o Maintain confidentiality until final PR
is issued & promptly disclose report
to the institution under review
o Excludes State or accrediting agency
from confidentiality.
o
32
HEOA Title X
Private Student Loan Transparency
and Improvement ACT
 Effective August 14, 2008*
 Preventing Unfair and Deceptive Private
Education Lending Practices and
Eliminating Conflicts of Interests
 Self-Certification by student
33
Other Federal
Updates
34
Other
Federal Updates
 ECASLA In review
 TEACH Grant Eligible Institutions
 09-10 FAFSA
 Cohort Default Rates Released
 College.gov http://www.college.gov/
 Training Opportunities
35
ECASLA – FFEL/Direct Loan Limits
 Increases some additional
unsubsidized loan limits - $2,000
 New loan limits apply only to loans –
 For loan periods that include or
begin on or after July 1, 2008, and
 Where the first disbursement is on
or
after July 1, 2008
 Dependent students whose parents
are unable to qualify for PLUS,
increases $2,000.
New Loan Limits
Dependent Students
Additional Unsubsidized
Loan Amount
Excluding
students whose
parents cannot
borrow a PLUS
Loan
Base
1st Year
$3,500
$0
$2,000
$5,500
2nd Year $4,500
$0
$2,000
$6,500
3rd & 4th $5,500
Year
$0
$2,000
$7,500
(sub/unsub)
Before On/After
7/1/08 7/1/08
Total
37
ECASLA – FFEL/Direct Loan Limits
Independent Students
Additional Unsubsidized
Loan Amount
And students
whose parents
cannot borrow a
PLUS Loan
Base
1st Year
$3,500
$4,000
$6,000
$ 9,500
2nd Year $4,500
$4,000
$6,000
$10,500
3rd & 4th $5,500
Year
$5,000
$7,000
$12,500
(sub/unsub)
Before On/After
7/1/08 7/1/08
Total
38
ECASLA – FFEL/Direct Loan Limits
Dependent
(Excluding PLUS Denials)
Base
Amount
Sub/Unsub
No Changes
Additional Unsubsidized Loan Amount
Before 7/1/08
On/After 7/1/08
Preparatory Coursework
(undergraduate)
$2,625
0
0
Preparatory Coursework
(Graduate)
$5,500
0
0
Teacher Certification
coursework
$5,500
0
0
Preparatory Coursework
(undergraduate)
$2,625
$4,000
$6,000
$6,000
Preparatory Coursework
(Graduate)
$5,500
$7,000
$7,000
Teacher Certification
coursework
$5,500
$7,000
$7,000
Independent
(and Dep PLUS Denials)
39
New Aggregate Loan Limits
Student
Category
Dependent
Before
7/1/08
$23,000
Effective
7/1/08
$31,000
(Maximum subsidized
$23,000)
Independent
Graduate/Professional
$46,000
$57, 500
(Maximum subsidized
$23,000)
(Maximum subsidized
$23,000)
$138,500
Unchanged
$138,500
Unchanged
(Maximum subsidized
$65,000)
(Maximum subsidized
$65,000)
40
ECASLA – PLUS Eligibility
 Extenuating Circumstances for
adverse credit may include
 Delinquent for not more than 180
days
 mortgage payments
 medical bill payments
 Delinquent no more than 89 days
on other debt
 Applicable 1/1/07- 12/31/09
ECASLA– PLUS Repayment
 Optional delayed repayment start
date
 Until six months after student is no
longer enrolled at least half-time
 Interest may be paid or capitalized
upon loan entering repayment
 HEOA – Extended to Grad PLUS
ECASLA – ACG and SMART Grants
 Effective July 1, 2009 (HEOA)
 Both Programs – Expand Student
Eligibility
 Eligible Non-Citizens
 Half-time enrollment
 Awards based on student’s grade
level rather than Academic Year”
ECASLA – ACG Only
 Effective July 1, 2009 (HEOA)
 Students in certificate programs
eligible, if program is –
 At least one year in length
 Offered at a two or four-year degree
granting institution
 Students previously excluded due to
joint enrollment programs are now
eligible for first year ACG
ECASLA – SMART Grant Only
 Effective July 1, 2009
 Non-major single liberal arts
programs
 Fifth year eligibility if five-year
program
ECASLA – Authority to Purchase Loans
 Gives Secretary authority to
purchase loans from FFEL lenders
 No net cost to the federal
government
 Terms and conditions established by
the Secretary with consultation with
Treasury and OMB
 Extension Granted – 7/1/2010
TEACH Grant Updates
TEACH Grant Recent Guidance
Available on IFAP (ifap.ed.gov)
 GEN 08-01 – CCRAA
 Final Rules Federal Register – June 23, 2008
 Dear Colleague Letter GEN-08-07
• Instructions for establishing eligibility to participate in
the TEACH Grant program
 06/19/2008 Electronic Announcement
• Teach Grant operational implementation information
 06/27/2008 Electronic Announcement
• Student aspects of TEACH Grant processing (operational
for July 1, 2008)
48
TEACH Grant Approved Schools
 Nationwide – 492 schools (10/1/08)
 Alabama – 14 schools
•
•
•
•
•
•
•
Alabama State University
Athens State University
Auburn University
Auburn University Montgomery
Birmingham Southern College
Huntingdon College
Judson College
49
TEACH Grant Approved Schools
(AL continued)
•
•
•
•
•
•
•
Miles College
Spring Hill College
Stillman College
Tuskegee University
University of Alabama at Birmingham
University of Montevallo
University of South Alabama
Teach Grant
 Notice of Proposed Rulemaking
published March 21, 2008
 30 Day Comment Period ended
April 21, 2008
 Final Regulations published June
23, 2008
51
TEACH Grant Summary
 Effective for the 2008-2009 award year
(Final regulation published June 23, 2008)
 Agree to serve 4 years as a FT Teacher
 High-need field – Public or Private school
 Serve students from low income families
 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
TEACH Grants

Subject Areas –
Mathematics
Bilingual education and English
language acquisition
Foreign language
Science
Reading specialist
Special education
Other ‘high-need’ fields
TEACH GRANT – Eligible Institution
 Option 1 –Offer a high-quality teacher
preparation program
• baccalaureate or masters level
• accredited by an ED recognized agency
or approved by a state and
• provide extensive pre-service clinical
experience, and
• provide or assists in providing
supervision and support services to
teachers
54
TEACH GRANT – Eligible Institution
 Option 2 –Provide a two-year program of
study
• Acceptable for full credit to a
baccalaureate teacher preparation
program
• Acceptable for full credit to a
baccalaureate degree program in a
high-need field
55
TEACH GRANT – Eligible Institution
 Option 3 –Offer a baccalaureate degree
• Prepares a student to teach in a high-need
field and
• Agreement with an eligible option 1 institution
 Option 4 - Offer a post-baccalaureate
program
• Prepares a student to teach and
• Not offer a baccalaureate teacher
preparation program
56
TEACH GRANT – Eligible Institution
 Financially Responsible
• defined in 34 CFR part 600 that meets
financial responsibility standards
• established in 34 CFR part 668, subpart
L, or
• qualifies under an alternative standard
in 34 CFR 668.175
57
TEACH Grant - Eligible Institution
 GEN 08-07(June)
 Optional Participation
 Documentation of Institutional
Eligibility
 Update the E-App
(www.eligcert.ed.gov)
 Wait on Approval Letter
 Contact Regional Office -School Participation Team
58
2009-10 FAFSA Changes
Provide Comments by October 28, 2008
2009-10 FAFSA Changes
 Pantone colors
• Parents: Purple
Pantone 263
• Students: Green
• Pantone 390C –75%
 Pages – Notes and Instructions – pg 1
to 4
Application – pg 5 to 10
Return envelope still included
2009-10 FAFSA Changes
 Worksheets eliminated
• Worksheet
A – Deleted
• Worksheet B – Question 47
(student) and question 95
(parents)
• Worksheet C – Question 46
(student) and question 94
(parents)
Dependency Questions
 13 questions to determine
dependency
 New questions:
• Students in foster care or ward of
the court (question 55)
• Emancipated minors or minors in
guardianship (question 56-57) –
not defined in some states
• Homeless or at risk of homeless
student (question 58-60) – Must
be verified, see McKinney-Vento
Act.
Dislocated Worker for Auto
Zero EFC or Simplified Needs
Test
#85
 Receiving unemployment benefits




due to being laid off or losing job
and are unlikely to return to a
previous job
Received laid off notice
Self employed but unemployed due
to economic conditions or national
disaster
Displaced homemaker
Quitting work does not qualify
Other FAFSA Changes
Due to CCRAA
 Increasing the time span to receive
federal benefits to 2 years (e.g.
2007 and 2008) – Section 4 and 5
 Adding TEACH Grant question on
paper FAFSA - #32
 Reformatting veterans question #44/45
 Asking parents for email address #71
 529 in student’s name now a parent
asset
Other FAFSA Changes
Due to CCRAA
 FAA’s permitted to use Dependency
Overrides performed by another school
(same year)
 Excludes military Special Combat Pay
 Updates Income Protection Allowances
(+50% increase from 2007-08 to 200910)
 Increases Automatic Zero EFC income to
$30,000 from $20,000
 Student may submit FAFSA if parents
refuse to support student or provide
information – More to come!
Cohort Default Rate
66
National Student Loan Cohort Default Rates
Issued
date
1990 1991 1992
1993 1994
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
25
22.4
21.4
20
17.8
17.2
15
15
Presenter Name(s)
11.6
10
10.7
10.4
9.6
5.2
8.8
6.9
5.6
5.9
5.4
5.2
4.5
5
5.1
4.6
5.2
0
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
67
http://www.ed.gov/offices/OSFAP/defaultmanagement/instrates.html
Institutional Default Rate Reduction Initiative Comparison of
FY 2004, FY 2005, and FY 2006 Cohort Default Rates
68
68
Training
69
New Outreach Website





Why Go
What to do
How to Pay
Parents/Families
Teachers and Counselors
70
TFAP
New Aid Officers
Specific Functions
Conferences
www.ed.gov/offices/OSFAP/training/index.html/
71
Upcoming FSA Training
 Federal Student Aid Conferences
 October 28 - 31, 2008
 Hyatt Regency Dallas
 Dallas, Texas
 December 2-5, 2008
 Paris/Bally's
 Las Vegas, Nevada
We’re in this together!
Please feel free to contact us for your training needs.
U. S. Department of Education
7373
 Questions?
 I appreciate your feedback and
comments. I can be reached at:
Michael C. Roberts
Title IV Training Officer
404-562-6261
[email protected]
Supervisor of Training Officers
Requests Feedback from FAAs
 Jo Ann Borel
 Supervisor of Training Officers
 United States Department of
Education/Federal Student Aid
 202-377-3930
 [email protected]
75
Question and Answers
76