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GASFAA Conference Braselton, GA. Federal Update. Anthony Jones Office of Postsecondary Education June 2, 2005. AGENDA. President’s FY 2006 Budget Advisory Committee PART Process Student Unit Record System Default rates Use of PIN System Requirements Late Disbursements.

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Federal Update

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Federal update

GASFAA Conference

Braselton, GA

Federal Update

Anthony Jones

Office of Postsecondary Education

June 2, 2005



  • President’s FY 2006 Budget

  • Advisory Committee

  • PART Process

  • Student Unit Record System

  • Default rates

  • Use of PIN

  • System Requirements

  • Late Disbursements

Federal update

President’s FY 2006



Federal update

President’s FY 2006 Budget Request

  • Directs taxpayer resources to students with most need

  • Provides significant program improvements

  • Saves taxpayer’s money by eliminating funding for ineffective programs

Federal update

President’s FY 2006 Budget Request

  • Increases Pell annual awards and Stafford loan limits

  • Must make student loan program reforms to provide increased funds for students

  • Must eliminate ineffective programs to provide funds to neediest students

Title iv program budgets appropriations


Title IV Program BudgetsAppropriations

* President's FY 2006 Budget Submission

Title iv program budgets aid available



Title IV Program BudgetsAid Available


* President's FY 2006

Budget Submission

Title iv program budgets federal pell grants

Title IV Program BudgetsFederal Pell Grants

* President's FY 2006 Budget Submission

Federal update

President’s FY 2006 Budget Request

  • Federal Pell Grant Program

  • Increase maximum award by $100/year

  • over 5 years

  • Eliminate $4.3 Billion shortfall

  • Index minimum award

  • Implement sixteen semester (or

  • equivalent) cap

Federal update

President’s FY 2006 Budget Request

  • Federal Pell Grant Program(cont’d)

  • Provide year-round awards for students

  • attending 2- and 4-year programs

  • Eliminate tuition sensitivity award rule

  • Add $1,000 for students who complete

  • the rigorous State Scholars curriculum

  • in high school

Federal update

President’s FY 2006 Budget Request

  • Federal Work-Study & FSEOG

  • Phase-out conditional guarantee over

  • 5 years

  • Replace FWS 7% community service

  • requirement with 20% set aside

Federal update

President’s FY 2006 Budget Request

  • New Programs

    • Presidential Math-Science Scholars Program

    • Loan program for short-term training – with Department of Labor

Federal update

President’s FY 2006 Budget Request

  • FFEL and Direct Loan Programs

  • Increase undergraduate annual loan limits

    • 1st Year subsidized - $2,625 to $3,500

    • 2nd Year subsidized - $3,500 to $4,500

    • Beyond 2nd Year - subsidized remains $5,500

    • Maintain $4,000/$5,000 unsubsidized

  • Increase undergraduate aggregate limits

    • Undergraduate subsidized - $23,000 to

    • $25,000

    • Undergraduate Total - $46,000 to $48,000

Federal update

President’s FY 2006 Budget Request

  • FFEL and Direct Loan Programs(cont’d)

  • Maintain graduate subsidized limits

    • $8,500

  • Increase graduate unsubsidized limits

    • $10,000 to $12,000

  • Increase graduate total annual loan limits

    • $18,500 to $20,500

  • Increase graduate aggregate limits

    • $138,500 to $146,500

Federal update

President’s FY 2006 Budget Request

  • FFEL and Direct Loan Programs(cont’d)

  • Reestablish low-default waivers

    • Less than 10% for 3 years

  • Waivers apply to:

    • 30-day delay for first-time, first-year

    • borrowers

    • Multiple disbursements for single term

    • loans

Federal update

President’s FY 2006 Budget Request

  • FFEL and Direct Loan Programs(cont’d)

  • Extend current variable interest rates

  • Extend teacher loan forgiveness change

  • Require GA to deposit 1% fee

  • Standardize repayment plans

Federal update

President’s FY 2006 Budget Request

  • FFEL and Direct Consolidation Loans

  • Moves from fixed interest rate

  • (weighted average) to variable rate

  • Provide reconsolidation with 1%

  • origination fee

  • Repeal single holder rule

Federal update

President’s FY 2006 Budget Request

  • Federal Perkins Loan Program

  • End new Perkins lending

    • Offset by increased FFEL/DL loan limits

  • Recall of Federal portion of fund

    • Essential to increasing Pell Grants

  • Develop plan to recall such as:

    • Assignment of outstanding loans to ED

    • Collection by school and return Federal share

Federal update

President’s FY 2006 Budget Request

  • FFEL, Direct, and Perkins Loan Programs

  • Reforms result in net savings

  • Savings are essential to increasing

  • Pell Grants for our neediest students

  • and increasing loan limits

Federal update

President’s FY 2006 Budget Request

  • Student Eligibility

  • Add active duty military to independent

  • student definition

  • Modify drug conviction eligibility rule to

  • apply only to offenses committed while

  • receiving Title IV aid

Federal update

President’s FY 2006 Budget Request

  • Institutional Eligibility

  • Eliminate 50% rules for distance education programs

  • Eliminate 90/10 rule for proprietary institutions

Federal update

Study of Simplification of Need Analysis and Application Process

  • The Student Aid Gauntlet: Making Access to College Simple and Certain

  • Issued by the Advisory Committee on Student Financial Assistance on January 23, 2005

  • www.ed.gov/about/bdscomm/list/acsfa/edlite-simplification.html

Federal update

Simplification Study (cont’d)

  • Four National Imperatives

  • Empower Studentsto make sound decisions about higher education

  • Make It Easyto ensure students get the financial aid they deserve

  • Lose The Paperto create an integrated web-based student aid system

  • Work Togetherto forge creative public-private access partnerships

Federal update


Assessment Rating

Tool (PART)

Federal update


  • Government Performance & Results Act

    • 1993: requires all Federal agencies & programs to have measurable goals and objectives

  • President’s Management Agenda (PMA)

    • 2001: aims at improving the efficiency and effectiveness of Federal programs

  • PART

    • Addresses the fifth element of the PMA: budget and performance integration

    • Is OMB-developed tool for assessing the effectiveness of all Federal programs

Federal update





Moderately Effective







Insufficient Performance Measures

Results Not Demonstrated


Federal update


  • Pell Adequate

  • FFEL Adequate

  • DL Adequate

  • FWS Results not demonstrated

  • FSEOG Results not demonstrated

  • Perkins Inadequate

  • LEAP Results not demonstrated

  • Talent Search Results not demonstrated

  • Upward Bound Inadequate

  • SSS Results not demonstrated

  • GearUP Adequate

Federal update


  • http://www.whitehouse.gov/omb/part/

  • Impact

    • Budget

    • Need for Student Unit Record

Federal update

Student Unit Record System

Student unit record system

Student Unit Record System

  • National Center for Education Statistics (NCES) conducted a feasibility study of establishing a Federal student unit record system

    • Final report released to the public March 22, 2005

    • http://nces.ed.gov/ipeds/urreport.asp

  • Report will inform the process of developing proposals for the Higher Education Act reauthorization

Student unit record system1

Student Unit Record System


  • Privacy & confidentiality

    • Data on students not receiving aid

    • Unauthorized access to data

  • Institutional burden

    • Transitional burden

    • Long-term burden

  • Coordination

  • Timing

Student unit record system2

Student Unit Record System


  • Improves data: enrollment, program completions, graduation rates, institutional price, and student financial aid

  • Captures data on:

    • Changing patterns of enrollment and completions

    • Impact of Federal programs, including the student financial aid programs

  • Enables creating mission-sensitive institutional outcome measures

Federal update

Default Rates

Federal update

National Student Loan Default Rates

Issued date:

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004



Sasfaa default rates fy 2000 2002

SASFAA Default Rates (FY 2000-2002)

Constitution day

Constitution Day

  • Federal Register Notice published 05/24/05 (correction: 05/31/05)

    • Includes informational resources schools may use

  • Educational institutions receiving Federal funding are required to hold for its students an educational program pertaining to the U.S. Constitution on September 17 of each year

Constitution day1

Constitution Day

  • Applies to all Federal funding, not just funding from ED

  • Begins with the current fiscal year

  • If September 17 falls on Saturday, Sunday, or a holiday, Constitution Day shall be held during either the preceding or following week.

Federal update

Use of PIN

Pin web site changes

PIN Web Site Changes

  • Challenge Question for all users (including FAAs)

  • Additional security to protect PIN applicants/holders

  • Effective date: January 1, 2005

  • Challenge Question/Answer in lieu of PIN to update or change information on PIN Web Site

Pin web site changes cont d

PIN Web Site Changes (cont’d)

  • FSA will disable PINs –

    • After PIN holder

      • Makes three unsuccessful authentication attempts and

      • Does not select and answer “Challenge Question” in three tries

    • After there is a 30-month period of inactivity

    • If there is a match with the “Death File”

Using a pin

Using a PIN

  • A PIN –

    • Is part of an electronic signature

    • Provides access to Privacy Act information

  • Requestor must be PIN-owner

  • A PIN must be sent to PIN-owner (email, USPS)

  • A PIN must only used by PIN-owner

Using an ed pin

Using an ED-PIN

  • If ED-PIN compromised, we will –

    • Not Issue that ED-PIN again

    • Deactivate ED-PIN

    • Invalidate documents

      • FAFSAs

      • Promissory notes

  • Also, see Dear Partner Letter GEN-04-10 (Sept. 2004)

Federal update



System requirements

System Requirements

  • Dear Partner Letter GEN-04-08 (Sept. 2004)

  • Minimum and optimal requirements

    for desktop PC

    • ISIRs

    • COD

    • Direct Loan

  • 2005-2006 processing

  • All schools use CODCommon Record - XML

Federal update



Mandatory late disbursements

Mandatory Late Disbursements

  • A school must offer a Pell, FSEOG, or Perkins late disbursement to a student:

    • Who withdraws and is eligible for a post-withdrawal disbursement, or

    • Who completes the payment period or period of enrollment

Mandatory late disbursements1

Mandatory Late Disbursements

  • A school may offer a late FFEL/Direct Loan disbursement to a student:

    • Who did not withdraw but ceases to be at least a half-time student

    • Can credit account, but must provide notice that student can cancel all or portion of the disbursement

Late late disbursement

“Late” Late Disbursement

  • Disbursements more than 120 days after student ceases to be enrolled

  • Approval from FSA required

  • See Dear Colleague Letter GEN-05-07 (April 2005)

Late late disbursement procedures

“Late” Late Disbursement Procedures

  • Request for approval must contain:

    • School’s name and OPE ID

    • Contact person’s name, title, phone & fax numbers, and e-mail address

    • Name and SSN of student (and name & SSN of parent, for PLUS)

    • Type and amounts of Title IV to be disbursed

    • An explanation of why the disbursement was not made, including why it was not the student’s fault

Late late disbursement procedures1

“Late” Late Disbursement Procedures

  • For Pell Grant include:

    • Award Year

    • Payment period begin and end dates

    • Date student completed the payment period or withdrew from school

  • For FFEL and Direct Loans include:

    • Loan type (sub, unsub, or PLUS)

    • Date the loan was certified or originated

    • Loan period begin and end dates

Late late disbursement procedures2

“Late” Late Disbursement Procedures

  • For FFEL and Direct Loans include (cont’d):

    • Did the student complete the loan period?

    • If the student did not complete the loan period, on what date did the student cease to be enrolled at least half-time?

    • Is this disbursement the first disbursement of the loan or is it a second or subsequent disbursement?

    • Lender’s name for FFEL

    • Award ID for Direct Loan

Late late disbursement procedures3

“Late” Late Disbursement Procedures

  • To request approval, send a fax to:

    COD School Relations Center

    Late Disbursement Request

    (877) 623-5082

  • School is notified via e-mail

Federal update

Contact Information

Anthony Jones



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