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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