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Department of Education Federal Policy Update. Jeff Baker Federal Student Aid October 21, 2009. Agenda. ARRA Reporting (Stimulus Bill) Default Rates Legislative Status Direct Loan Preparation Special Issues Regulatory Update Simplification – IRS Data Match.

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department of education federal policy update

Department of Education Federal Policy Update

Jeff Baker

Federal Student Aid

October 21, 2009

agenda
Agenda

ARRA Reporting (Stimulus Bill)

Default Rates

Legislative Status

Direct Loan Preparation

Special Issues

Regulatory Update

Simplification – IRS Data Match

slide4
ARRA
  • $200 million for 2009-10 Federal Work-Study
    • ARRA added to regular appropriation
      • Total included in school authorizations posted in March
      • Some schools did not see an increase
    • Special FWS reporting is required if $25,000 or more.
  • $17.1 billion - Adds $500 to appropriated maximum Pell Grant - $5,350 for 2009-2010
    • No school reporting

4

slide5
ARRA
  • September 24 Electronic Announcement
    • Must register
    • Reporting deadlines
    • Reporting guidance coming
  • October 2 Electronic Announcement
    • Specific Reporting Guidance
  • October 16 Electronic Announcement
    • Revisions and Clarification
  • E-mails to 1,796 schools

5

slide10

Legislative Status

HR 3221 – Student Aid and Fiscal Responsibility Act of 2009

Passed full House on September 16

Senate still drafting

Expected mark-up in next few weeks with floor action to follow

Final bill expected (needed) by end of year

slide11

Legislative Status

HR 3221

Pell Grants

More secure funding

Changes to two-Pells in an award year

Increased aid for children of deceased vets

EFC change moved to needs analysis

New Iraq and Afghanistan Service Grants

slide12

Legislative Status

HR 3221 –

Needs Analysis (EFC)

Effective 2011-12 Award Year

Elimination of assets

Asset threshold question – no subsidized aid

Elimination of most untaxed income

Elimination of income exclusions

proposed new direct perkins loan
Proposed New Direct Perkins Loan
  • $6 billion available for new loans
      • Up from $1.5 billion now
  • Broad Availability to More Schools
  • School-level “Lending Authority”
    • Hold Harmless for Current Participating Schools
    • Incentive-Based Distribution Among School
      • Success in Graduating Low-Income Students
      • Affordable Tuition Charges
        • Credit for Non-Federal Need Based Grants Awarded/Received

13

proposed new direct perkins loan1
Proposed New Direct Perkins Loan

New Loans –

  • Direct Loans
  • Interest rate remains at 5%
  • Unsubsidized
  • Same terms and conditions as Direct Loans
  • Originated by schools and ED using COD
  • Serviced by ED

14

proposed new direct perkins loan2
Proposed New Direct Perkins Loan
  • Recall federal share of cash in school’s Perkins Revolving Fund as of June 30, 2010
    • Schools collect on existing loans
      • Remit to ED federal share; keep institutional share
    • Schools assign existing loans to ED
      • ED remits institutional share of collections to schools

15

slide16

Legislative Status

HR 3221

Transition to 100% Direct Loans

Effective July 1, 2010

Foreign Schools Eligible

Includes all loan types

Sub, Unsub, PLUS, Consolidation

Still have $500 Billion in outstanding FFEL loans

loan origination
Loan Origination

Similar to FFEL

Confirm eligibility

Determine award/loan amount

MPN needed – eMPN available

Create and send certification/origination to lender

Similar to Grants

School transmits award/loan origination data to COD via Common Record and same transmission as Pell Grant data

where are we now
Where Are We Now…
  • COD System capacity enhancements for 100% FFELP volume in progress, on time and on target
  • FSA Customer Service Centers
    • Increased and trained staff
    • Monitor incoming volume
    • COD has dedicated OnBoarding Team to assist setup completion requests and “starts”
where are we now1
Where Are We Now…
  • FSA Direct Loan Transition Team
    • Focused OnBoarding/Point of Contact Team
    • Focused School Assist Team
      • Grad/Professional schools
      • Career Colleges
      • Small schools
      • Foreign
how to get started in dl
How to Get Started in DL
direct loan training
Direct Loan Training

Suite of Direct Loan webinars this Fall beginning in October

Repeated Spring of 2010

COD Systems Primer

Direct Loan program Primer

COD & Direct Loan Program

Reconciliation

direct loan training1
Direct Loan Training

Suite of Direct Loan webinars this Fall and again Spring of 2010

Reports

D/L Tools

Direct Loan Servicing

EdExpress for Direct Loans

direct loan training2
Direct Loan Training

IFAP Announcement: Publication Date: September 28, 2009

  • DCL ID:  ANN-09-30 Subject: Live Internet Webinars - Direct Loan Webinar Training Suite
  • Attachments contain session descriptions and schedule
direct loan training3
Direct Loan Training

“EDExpress 101”

Web based training module via IFAP

COD Computer Based Training

Download via IFAP

Updated version this Fall

direct loan training4
Direct Loan Training

FSA Fall Conference

Nashville, Tennessee

December 1-4, 2009

direct loan resources
Direct Loan Resources
  • Written Materials (IFAP)
  • Direct Loan Website
    • www.direct.ed.gov
  • National Direct Student Loan Coalition
    • www.directstudentloancoalition.org
cod call center for schools
COD Call Center for Schools

COD School Relations Center

www.cod.ed.gov

(800) 848-0978

awards for children on deceased military
Awards for Children on Deceased Military

For any student whose parent or guardian was a member of the Armed Forces and died in Iraq or Afghanistan after September 11, 2001.

For the 2009-2010 award year -

If Pell eligible EFC, all Title IV aid awarded using zero EFC (Pell).

If not Pell eligible EFC, all Title IV aid awarded using calculated EFC (No Pell).

32

awards for children on deceased military1
Awards for Children on Deceased Military

For the 2010-2011 award year and following award years –

If Pell eligible EFC, all Title IV aid awarded using zero EFC (Pell).

If not Pell eligible EFC -

Undergraduate student gets new Iraq/Afghanistan Service Grant in amount of maximum Pell for enrollment status.

All other Title IV aid awarded using calculated EFC (No Pell).

33

slide34
VA Educational Benefits no longer considered “Estimated Financial Assistance” or “Resources” for all Title IV programs

Effective with the 2009-10 Award Year

Both VA share and institutional share of “Yellow Ribbon” awards are excluded

Includes ROTC

See Electronic Announcement Posted to IFAP on August 14

VA Educational Benefits

two pell grants in an award year
Two Pell Grants in an Award Year

Effective with the 2009-2010 award year

“Year round” or “Two Pell Grants in an Award Year”

Allows student to receive funds beyond their scheduled award for the award year.

Must be at least one-half time for second award

No change to “scheduled award”

No change to Payment Period Calculation

term based

Two Pell Grants in an Award Year

Term-Based

Current Rule: One Scheduled Award per Award YearAssume student’s 2009-10 Scheduled Award is $5,350 and $5,550 for 2010-11

Fall 2009$2,675

Spring 2010$2,675

Summer 2010$0

100% 2009-10 AY

2009-10 Award Year

Summer 2010$2,775

Fall 2010$2,775

Spring 2011$0

100% 2010-11 AY

2010-11 Award Year

term based1

Two Pell Grants in an Award Year

Term-Based

New Rule: Up to Two Scheduled Awards per Award YearStudent’s Scheduled Award is $5,350 in both award years

Fall 2009$2,675

Spring 2010$2,675

Summer 2010$2,675

150% 2009-10 AY

2009-10 Award Year

Fall 2010$2,775

Spring 2011$2,775

Summer 2011$2,775

150% 2010-11 AY

2010-11 Award Year

term based2

Two Pell Grants in an Award Year

Term-Based

New Rule: Up to Two Scheduled Awards per Award Year

Student’s Scheduled Award is $5,350 for the award year

Summer 2009$2,675

Fall 2009$2,675

Spring 2010$2,675

Summer 2010$2,675

2009-10 Award Year

200% 2009-10 AY

term based3

Two Pell Grants in an Award Year

Term-Based

New Rule: Up to Two Scheduled Awards per Award Year

Student’s Scheduled Award is $5,350 for the award year

Summer 2010$2,775

Fall 2010$2,775

Spring 2011$2,775

Summer 2011$2,775

2010-11 Award Year

200% 2010-11 AY

clock hour

Two Pell Grants in an Award Year

Clock Hour

Current Rule: One Scheduled Award per Award Year

1500 clock hour program; AY = 900 hours/26 weeks between July 1 and June 30. Student’s Scheduled Award is $5,350.

450 hours/13 weeks$2,675

450 hours/13 weeks$2,675

2009-10 Award Year

100% 2009-10 AY

300 hours/8 weeks$0

300 hours/8weeks$0

2009-10 Award Year

clock hour1

Two Pell Grants in an Award Year

Clock Hour

New Rule: Up to Two Scheduled Awards per Award Year

1500 clock hour program; AY = 900 hours/26 weeks Student’s Scheduled Award is $5,350 for the award year

450 hours/13 weeks$2,675

450 hours/13 weeks$2,675

2009-10 Award Year

160% 2009-10 AY

300 hours/8 weeks$1,645

300 hours/8 weeks$1,645

2009-10 Award Year

slide43

Current Regulatory Process

  • General and lender/guaranty agency loan issues
    • NPRM posted July 23, 2009
    • Comment period ended August 24, 2009
  • School-based loan issues
    • NPRM posted July 28, 2009
    • Comment period ended August 27, 2009
  • Team V-Grants and other issues
    • NPRM August 21, 2009
    • Comment period ended September 21, 2009
upcoming regulatory process
Upcoming Regulatory Process

Possible Topics

  • Foreign Schools
  • Satisfactory Academic Progress
  • Credit Hours for purposes of determining eligibility
  • Verification
  • High school diploma
  • Incentive compensation
  • Gainful employment in a recognized occupation
  • State authorization for institutional participation

44

technology
Technology
  • 2010-11 design facilitated by technology upgrade
  • Updated navigation reduces the number of pages and length of the application
  • Display of help text and instructions will be enhanced by:
    • use of field instructions
    • flyover text
    • modal boxes
slide49

Results Reporting

  • Retention, graduation and transfer rates within FAFSA on the Web
    • When students use the school code lookup within FOTW to lists colleges on the form, they will be presented with each college’s reported retention, graduation and transfer rates.
    • This information will also display on the FAFSA on the Web confirmation page.

49

irs fsa concept overview
IRS-FSA Concept Overview
  • Federal Student Aid and the IRS are developing a collaborative solution that simplifies FAFSA completion.
  • Solution will allow FAFSA on the Web applicants to request and retrieve their income tax data from the IRS.
  • IRS data can be automatically transferred to FOTW.
  • Totally voluntary.
slide52

How Will IRS Site be Accessed

FOTW IRS Authentication

implementation schedule
Implementation Schedule
  • 2009-10 IRS data share will be implemented in

January 2010

    • Pilot to test proof of concept
    • Participation is voluntary
  • 2010-11 IRS data share will be implemented in the Summer of 2010
    • Full implementation
    • Participation is voluntary
  • Will set flag on ISIR to identify when income data is from IRS versus self-reported
  • Verification ?????
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