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