Transcript Document

TASFAA
Federal Update
October 5, 2007
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2006-07
Negotiated
Rulemaking
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2006-2007 Negotiated Rulemaking
 For 2008-2009 & subsequent award
years
 Four negotiating committees were
established:
 Accreditation
 General Provisions
 Academic Competitiveness & National
SMART Grants
 Loans
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Accreditation
The Secretary has decided that we will
not issue regulations on accreditation at
this time.
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2006-2007 Negotiated Rulemaking
 Notices of Proposed Rulemaking (NPRM)
published:
 Loans – July 12
 ACG and National SMART – August 7
 General Provisions – August 8
 Final rules published by November 1, 2007
 Effective Dates: July 1, 2008
 Possible early voluntary implementation
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Legislation
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LEGISLATION
Reauthorization
 Senate Passed July 24, 2007
 No House bill yet.
Reconciliation
 Budget Reconciliation –
 “College Cost Reduction and Access Act of 2007”
passed by both Houses
 President signed bill September 27, 2007
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College Cost Reduction and Access Act
Pell, ACG and SMART
 Eliminates Pell Grant tuition sensitivity
award rule, as of date of July 1, 2007
 Increases Pell Grant award by –
 $ 490 for 2008-09 and 2009-10
 $ 690 for 2010-11 and 2011-12
 $ 1,090 for 2012-13
 No changes to ACG and National SMART
Grant Programs
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College Cost Reduction and Access Act
TEACH Grants
 Teacher Education Assistance for College
and Higher Education Grants for 2008-09
 Must be repaid as Direct Unsub Loan if
student does not teach
 Annual grant amounts up to –
 $4,000 for first undergraduate or postbaccalaureate (non degree) student
 $8,000 for graduate student
 $16,000 aggregate maximum
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College Cost Reduction and Access Act
TEACH Grants
 Eligibility –
 Completing coursework necessary to begin a career in
teaching
 Plans to complete coursework necessary to begin a
career in teaching
 If completing coursework for a graduate degree
 3.25 GPA –equivalencies
 Highly Qualified Teacher
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College Cost Reduction and Access Act
TEACH Grants
 Eligibility –
 Must teach at Title I school in —
 Mathematics
 Science
 A foreign language
 Bilingual education
 Special education
 As a reading specialist
 Other “high-need” fields
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College Cost Reduction and Access Act
Need Analysis and EFC Calculation
 Income Protection Allowance
 Modifies the way income protection allowance is
calculated and updated. Effective with the 2009-10
award year
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College Cost Reduction and Access Act
Need Analysis and EFC Calculation
 Auto-Zero and Simplified Needs Test
 Adds Dislocated Worker in addition to type of tax
return and means tested benefits
 Increases time from 12 to 24 months for means
tested benefits
 Increases Auto Zero EFC income level from
$20,000 to $30,000 (indexed)
 Effective for the 2009-10 award year
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College Cost Reduction and Access Act
Need Analysis and EFC Calculation
 Excludes from “untaxed income” -




Welfare payments
Earned income credit amounts
Special fuel tax credit
Excluded foreign income
Untaxed Social Security Benefits
 Effective for the 2009-2010 award year
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College Cost Reduction and Access Act
Need Analysis and EFC Calculation
 Adds to independent student definition –
 Is in foster care or a ward of the court, at any time
when the individual is 13 years of age or older
 Is an emancipated minor or is in legal guardianship
 Has been verified as an unaccompanied youth who is
a homeless child or youth
 Effective for the 2009-2010 award year
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College Cost Reduction and Access Act
Need Analysis and EFC Calculation
 Excludes ‘special combat pay’ from income
 Qualified education benefit (529 plan) owned by
dependent student is an asset of the parent
 Distributions from 529 plans excluded from
other financial assistance
 Effective for the 2009-2010 award year
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College Cost Reduction and Access Act
FAA Discretion – Professional Judgment and
Dependency Overrides
 Adds dislocated worker and homelessness as
examples of when an FAA can use professional
judgment
 Provides that an FAA can use a dependency
override made by another FAA within the same
award year
 Both effective July 1, 2009
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College Cost Reduction and Access Act
FFEL and Direct Loans
 Interest Rates –
 Reduces interest rates on FFEL and DL
undergraduate subsidized loans from 6.8% to 3.4%
by 2012. Beginning in 2013 the rate reverts back
to 6.8. First reduction begins with loans first
disbursed on or after July 1, 2008
 No increases in loan limits.
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College Cost Reduction and Access Act
FFEL and Direct Loans
 Economic Hardship Deferment –
 Changed one of the conditions from borrowers
earnings being less than 100% of the poverty level for
a family size of two, to
 150% of poverty level for the borrower’s family size
to –
 Eligible if borrower is working fulltime and is earning
less than the greater of –
 The Federal minimum wage (annualized) or –
 150% of poverty level for borrower’s family size.
(Use to be 100% of a family size of two)
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College Cost Reduction and Access Act
Perkins, FFEL, and Direct Loans
 Current (HERA) Military Deferment –
 All Title IV loans, not just loans that were made
on or after July 1, 2001
 Removes three year time limit
 Adds a 180 period after demobilization
 New deferment for up to 13 months following
end of service if borrower was in school or
grace when called to active duty
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College Cost Reduction and Access Act
FFEL and Direct Loans
 Income Based Repayment (July 1, 2009) –
 Stafford and Student PLUS loans
 Borrower’s maximum annual repayment amount is no
more than 15% of the difference borrower’s AGI and
150% of the poverty line based on family size
 If negative amortization, government pays interest on
subsidized loans for three years
 Unpaid amounts are forgiven after 25 years
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College Cost Reduction and Access Act
FFEL and Direct Loans
 Ability to Consolidate Single FFEL
Consolidation Loan expanded to include for
purpose of new Direct Loan only, Public Service
loan forgiveness program
 Effective July 1, 2008
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College Cost Reduction and Access Act
Direct Loans (FFEL)
 Forgiveness for Public Sector Employees –
 Direct Loan borrowers who –
 Had made 120 monthly payments
 Starting on date of enactment
 Employed in public sector during entire repayment
period
 FFEL borrowers may consolidate into DL to get
benefit but all payments must have been in DL
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College Cost Reduction and Access Act
FFEL Lenders and Guaranty Agencies
 Reduction of FFEL lender insurance to 95% for
loans first disbursed on or after October 1, 2012
 Reduces FFEL guaranty agency retention
percentage from 23% to 16%, effective October 1,
2007
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College Cost Reduction and Access Act
FFEL Lenders and Guaranty Agencies
 Reduction of FFEL lender special allowance
payments (SAP) by 55 or basis points (40 for nonprofit lenders)
 Increased lender loan fee from .50% to 1.0%
 Reduces GA account maintenance fee from .10%
to .06%
 All effective October 1, 2007
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College Cost Reduction and Access Act
FFEL Lenders and Guaranty Agencies
 Elimination of Exceptional Performer Designation
for FFEL lenders, lender servicers, and guaranty
agencies effective October 1, 2007
 Extension for lender until expiration of current
designation
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College Cost Reduction and Access Act
Special FFEL Auction Pilot
 Authorizes study of auction method for the
origination or selling of student loans
 Starting with FFEL PLUS Loans for parents
 State by State
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FAFSA4CASTER
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What is the FAFSA4caster?
 Early start on the financial aid process
 Instantly calculates federal student aid
eligibility
 Access FAFSA4caster at
www.FederalStudentAid.ed.gov
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www.FederalStudentAid.ed.gov
click on FAFSA4caster
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FAFSA4caster
Simplifies financial aid process:
 Provides information about college
planning, admissions, and federal financial
aid
 Describes the Federal Student Aid programs
 Provides aid eligibility requirements
 Provides an overview of the federal financial
aid process
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Benefits of the FAFSA4caster
 Provides an estimated Expected Family
Contribution (EFC)
 Calculate estimated eligibility for federal aid,
including grants
 Reduce time to complete the Free Application for
Federal Student Aid (FAFSA)
 Match conducted with Social Security
Administration
 Automatically generates and e-mails the Federal
Student Aid PIN in time to use with FAFSA on the
Web
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 Available in Spanish
Who should use the FAFSA4caster?
Students who want to get an early start
on the application process
 Any student considering their financial
options to help pay for a postsecondary
education
 High school juniors
 Parents of younger students
 Non-traditional students (adult learners)
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How accurate is the FAFSA4caster?
 Estimate of eligibility based on the
current laws and the information the
student provides
 Changes in income, household size, or
other factors may affect eligibility when
student completes the FAFSA
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Filling out a FAFSA4caster
Students will:
 Provide their Social Security Number (SSN)
and first and last name exactly as they
appear on their Social Security Card
 Create a password
 Refer to their W-2 Forms, bank statements,
business, and mortgage information
 Have their alien registration or permanent
resident card (if not a U.S. citizen)
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Begin the FAFSA4caster
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FAFSA4caster
Students will have to start a new
FAFSA4caster if they:
 Forget their password
 Do not retrieve a saved FAFSA4caster
within 45 days
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FAFSA4caster
FAFSA4caster gives an estimate of a
student’s ENTIRE federal student aid
package, including eligibility for student
loans, by collecting additional data such
as:
 Grade level
 Other program specific criteria
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Estimate Award Package
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Things to Remember
 No signatures are required to complete
and submit a FAFSA4caster
 No SARs or ISIRs generated
 Applicant notified if SSA match fails
 No PIN is needed to access the
FAFSA4caster
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 Customer Service and built-in help is
available
Conferences
and Training Activities
and System Updates
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Conferences
 School’s Portal
under
“Resources and
Training”
 No sign-on
necessary
 Preview of
upcoming FSA
conferences,
agendas, hotel
and travel
information.
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www.fsaconferences.ed.gov
2007 Federal Student Aid
Conferences
 New Orleans
 October 30th thru November 2nd
 San Diego
 November 26th – November 29th
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TFAP
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www.ed.gov/offices/OSFAP/training/index.html/
Training on the Web
 R2T4 on the Web
 COD Basics for Title IV Grants
 Calculating the EFC
 Applicant Data Resolution
 Identifying information sources with FAA
Access
 Analyzing the ISIR
 Resolving data issues
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Training on the Web
 FISAP Training
 NSLDS Data Overview
 Data sources and reporting
 Calculating remaining Aggregate loan
limits and remaining eligibility
 NSDLS Eligibility Monitoring
 Transfer monitoring
 Pre/Post Screening
 POP
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COD Changes
 Automatic password reset (functioning
now)
For 08-09
 New MPN
 Addition of several new values for
ACG/SMART
 Eligibility used
 Total eligibility used
 Scheduled grant amount
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On the Horizon – System Changes
 GAPS Redesign
 IPM (Integrated Partner Management)
 Effects eCAR
 EZ Audit
 Destination Point Administrator
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Contact Information
Claire “Micki” Roemer
[email protected]
Phone 202 377 3452
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