Central Oklahoma Guidance Network

1. Central Oklahoma Guidance Network Financing College: Trends, Changes and Challenges

2. Financing College: Trends, Changes and Challenges • Financial Aid • Gift aid • Grants • Scholarships • Self-help aid • Loans • Work study • Federal Grants, Loans and Work (http://www.fafsa.gov) • State Scholarships and Grants (http://www.okcollegestart.org) • Institutional/Foundation Scholarships/Grants • Private Scholarships/Grants/Loans • Others-Veteran’s Administration etc.

3. Financing College: Trends, Changes and Challenges Federal Financial Aid (Grants, Loans and Work) • Pell Grant • Federal Supplemental Educational Opportunity Grant (FSEOG) • TEACH • Direct Stafford Loans-subsidized/unsubsidized • Perkins Loans • Federal PLUS Loans to Parents and Graduate Students • Federal Work Study

4. Financing College: Trends, Changes and Challenges Federal Financial Aid (Trends, Changes and Challenges) • Simplification of the application filing process • Completion initiatives • Federal budget reconciliation

5. Financing College: Trends, Changes and Challenges Simplification of the application filing process • “Skip logic” for online applications • System assumptions • IRS Data Retrieval Tool (DRT) for online applications • Logical organization and online help

6. Financing College: Trends, Changes and Challenges Completion Initiatives States and Institutions: • Requiring 30 completed hours each year for certain types of state aid • “Paying” students to graduate from high school early • Remediation changes • Reserving some aid for late filers • Concurrent enrollment-Associate’s degree at High School graduation • Reverse transfer

7. Financing College: Trends, Changes and Challenges Budget Reconciliation • Consolidated Appropriations Act of 2012 • Pell lifetime limit-6 full time years including all past payments • Ability to benefit options deleted • Subsidized “grace period” cancelled for some borrowers (two years) • Auto zero EFC threshold lowered

8. Financing College: Trends, Changes and Challenges Additional Legislation • Public Law 112-141 July 1, 2012 Federal Direct Subsidized Loan Interest rates were set to double to 6.8%. This law prevented that for one year and also restricted student eligibility for subsidized loans to 150% of the published length of the educational program beginning with new borrowers after July 1, 2013.

9. Financing College: Trends, Changes and Challenges State Scholarships and Grants • Oklahoma Academic Scholars Program • Regional University Baccalaureate Scholarship • Oklahoma Tuition Aid Grant • Oklahoma Tuition Equalization Grant • Oklahoma’s Promise

10. Financing College: Trends, Changes and Challenges Specialized State Scholarship and Grant Programs: • Chiropractic Education Assistance Scholarship • Future Teachers Scholarship • George and Donna Nigh Public Service Scholarship • Independent Living Act-(Foster Care Tuition Waiver) • National Guard Tuition Waiver • Scholars for Excellence in Child Care • SREB Academic Common Market • Teacher Shortage Employment Incentive Program • Heroes Promise

11. Financing College: Trends, Changes and Challenges State Scholarships and Grants (Trends, Changes and Challenges) • Limited funding-Academic Scholars Non-resident participation • Limited funding-OTAG Loss of LEAP (federal) funding • Limited eligibility-Oklahoma’s Promise Legislation to contain costs

12. Financing College: Trends, Changes and Challenges • Undocumented Student Eligibility for current high school students (as of 1/31/2013) Concurrent tuition waivers • Eligibility as regular post secondary students Non-resident tuition waiver If lived in state with a parent or guardian for at least two years prior to graduation AND Graduated from an Oklahoma high school Oklahoma Tuition Aid Grant Program-with application for legal status Oklahoma’s Promise-with lawful presence • Deferred Action for Childhood Arrivals Does not change state eligibility

13. Financing College: Trends, Changes and Challenges Oklahoma’s Promise Program Requirements Changes for 2012: • All subject to federal satisfactory academic progress. All OKP students will be subject to the institution’s SAP policy beginning in fall of 2012. • College GPA requirement of 2.0 at the end of the sophomore year and 2.5 for all classes taken after • Family income limit of $100,000 at the time the student begins post secondary education

14. Financing College: Trends, Changes and Challenges How do I help students prepare to pay for college? Advice from a former college financial aid administrator. • Start Early. • Encourage students to work now to minimize remediation. • Create the idea that college is real, attainable and worthwhile. • Focus on what they can do now to prepare for college. • Help students watch for opportunities/deadlines. • One day at a time-even experienced higher education professionals can be overwhelmed. • Learn how to assist students with the FAFSA. • Introduce vocabulary. • Foster an environment of Q & A.

15. Financing College: Trends, Changes and Challenges How do I help students prepare to pay for college? Advice from a former college financial aid administrator. (cont.) • Encourage AP classes, concurrent enrollment and CLEP. • Take the ACT early and more than once. • Encourage making a plan and sticking to it. Don’t change majors or schools. • Encourage borrowing the absolute minimum. • Encourage students to use summer wisely. • Emphasize accountability-”go to class”.

16. Financing College: Trends, Changes and Challenges Irala K. Magee Director of Scholarship and Grant Administration Oklahoma State Regents for Higher Education imagee@osrhe.edu (405) 225-9100 (extension 9378)