Department of education federal policy update
Download
1 / 55

Department of Education Federal Policy Update - PowerPoint PPT Presentation


  • 57 Views
  • Uploaded on

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.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Department of Education Federal Policy Update' - parker


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
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



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


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


Ffel dl cohort default rates
FFEL/DLCohort Default Rates

6



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


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


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


    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

    • Email to COD

      • [email protected]

    • Direct Loan Website

      • http://www.direct.ed.gov/participating.html

    • For more information

      • Email to [email protected]

      • Email to [email protected]


    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


    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 Financial Assistance” or “Resources” for all Title IV programs

    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 Financial Assistance” or “Resources” for all Title IV programs

    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 Financial Assistance” or “Resources” for all Title IV programs

    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 Financial Assistance” or “Resources” for all Title IV programs

    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 Financial Assistance” or “Resources” for all Title IV programs

    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 Financial Assistance” or “Resources” for all Title IV programs

    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 Financial Assistance” or “Resources” for all Title IV programs

    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


    Negotiated rulemaking
    Negotiated Rulemaking Financial Assistance” or “Resources” for all Title IV programs


    Current Regulatory Process Financial Assistance” or “Resources” for all Title IV programs

    • 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 Financial Assistance” or “Resources” for all Title IV programs

    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


    Fafsa simplification
    FAFSA Simplification Financial Assistance” or “Resources” for all Title IV programs


    Technology
    Technology Financial Assistance” or “Resources” for all Title IV programs

    • 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


    Technology1
    Technology Financial Assistance” or “Resources” for all Title IV programs

    47


    Technology2
    Technology Financial Assistance” or “Resources” for all Title IV programs

    48


    Results Reporting Financial Assistance” or “Resources” for all Title IV programs

    • 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 data share
    IRS Data Share Financial Assistance” or “Resources” for all Title IV programs


    Irs fsa concept overview
    IRS-FSA Concept Overview Financial Assistance” or “Resources” for all Title IV programs

    • 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.


    How Will IRS Site be Accessed Financial Assistance” or “Resources” for all Title IV programs

    FOTW IRS Authentication


    How will IRS Data Be Transferred to FOTW? Financial Assistance” or “Resources” for all Title IV programs


    Implementation schedule
    Implementation Schedule Financial Assistance” or “Resources” for all Title IV programs

    • 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 ?????


    55 Financial Assistance” or “Resources” for all Title IV programs


    ad