Title IV Federal Update AASFAA

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					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)   Selected Amendments


 ECASLA – Brief Review
 Teach Grant Updates
 Other Federal Updates
 Upcoming Training


                                                 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:
  HEOA08@ed.gov

 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   Award Year   Authorized   Appropriated

2006           2006-07     $5,800        $4,050
2007           2007-08     $5,800        $4,310
2008           2008-09     $5,800        $4,731
2009           2009-10     $6,000        + $490
2010           2010-11     $6,400        + $690
2011           2011-12     $6,800        + $690
2012           2012-13     $7,200        +1,090
2013           2013-14     $7,600          ?
2014           2014-15     $8,000          ?
   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                  $2,000
Fall Award                              2,000
Spring Award                            2,000
Summer Award                           $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.   EFC = 0 or state approved alternative
    2.   State’s maximum undergraduate
         award
    3.   Participant - Early information and
         intervention, mentoring or outreach
         program
    4.   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
   o 60 days after disbursement
   o ECASLA – Continues 6 months after
     student ceases half-time enrollment
 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   an emancipated minor or in legal guardianship as
         determined by a court
     o   orphans, those in foster care, or wards of the court,
         or
     o    those that were orphans, in foster care, or a ward of
         the court at any time when the individual was 13-
         years-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 non-
    forcible 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
    o 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.

                                                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

                 Base          Before On/After      Total
Excluding
students whose
parents cannot
                 (sub/unsub)
borrow a PLUS
Loan                           7/1/08 7/1/08
1st Year         $3,500          $0   $2,000        $5,500


2nd Year         $4,500          $0   $2,000        $6,500


3rd & 4th $5,500                 $0   $2,000        $7,500
Year

                                                             37
ECASLA – FFEL/Direct Loan Limits
Independent Students               Additional Unsubsidized
                                         Loan Amount

                  Base          Before On/After      Total
And students
whose parents
cannot borrow a
                  (sub/unsub)
PLUS Loan
                                7/1/08 7/1/08
1st Year          $3,500        $4,000   $6,000      $ 9,500


2nd Year          $4,500        $4,000   $6,000      $10,500


3rd & 4th $5,500                $5,000   $7,000      $12,500
Year

                                                               38
ECASLA – FFEL/Direct Loan Limits
Dependent                  Base  Amount   Additional Unsubsidized Loan Amount
(Excluding PLUS Denials)    Sub/Unsub
                            No Changes    Before 7/1/08     On/After 7/1/08

Preparatory Coursework      $2,625               0                              0
(undergraduate)
Preparatory Coursework      $5,500               0                              0
(Graduate)
Teacher Certification       $5,500               0                              0
coursework

Independent
(and Dep PLUS Denials)
Preparatory Coursework      $2,625           $4,000                   $6,000
                                                                     $6,000
(undergraduate)
Preparatory Coursework      $5,500           $7,000                   $7,000
(Graduate)
Teacher Certification       $5,500           $7,000                   $7,000
coursework



                                                                                    39
New Aggregate Loan Limits
Student                 Before                Effective
Category                7/1/08                7/1/08

Dependent                  $23,000               $31,000
                                              (Maximum subsidized
                                                   $23,000)

Independent                $46,000               $57, 500
                        (Maximum subsidized   (Maximum subsidized
                             $23,000)              $23,000)

Graduate/Professional     $138,500              $138,500
                         Unchanged             Unchanged
                        (Maximum subsidized   (Maximum subsidized
                             $65,000)              $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 benefits
  Receiving unemployment
     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 2009-
  10)
 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
Issued                  National Student Loan Cohort Default Rates
 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
                                                         10.7
                                                                 10.4
                                                                          9.6
   10                                                                             8.8                                                                  5.2
                                                                                         6.9
                                                                                                 5.6    5.9
                                                                                                                5.4      5.2                            5.2
                                                                                                                                         5.1     4.6
    5
                                                                                                                                  4.5




    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



                                                          73
                                                           73
 Questions?
 I appreciate your feedback and
  comments. I can be reached at:


           Michael C. Roberts
           Title IV Training Officer
           404-562-6261
           michael.roberts@ed.gov
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
  joann.borel@ed.gov


                                     75
Question and Answers




                       76

				
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