masfaa g overnment r elations c ommittee n ovember 4, 2009
TRANSCRIPT
MASFAA GOVERNMENT RELATIONS COMMITTEE
NOVEMBER 4, 2009
PASSED BY THE HOUSE ON SEPTEMBER 18, 2009
INCORPORATES MANY OF THE RECOMMENDATIONS MADE BY PRESIDENT OBAMA IN HIS EXECUTIVE BUDGET RELEASED FEBRUARY 26, 2009
PROPOSES SIGNIFICANT CHANGES TO THE FEDERAL PERKINS LOAN PROGRAM, AND THE ELIMINATION OF THE FEDERAL FAMILY EDUCATION LOAN PROGRAM, AS OF JULY 1, 2010
GOALS OF PROGRAM CHANGE
TO EXPAND NATIONAL ALLOCATION FROM $1 BILLION TO $6 BILLION
TO INCREASE THE NUMBER OF SCHOOLS ELIGIBLE TO PARTICIPATE FROM 1,800 TO 4,400
TO REDUCE THE NEED FOR PRIVATE LOAN BORROWING
LOAN TERMS
RETAINS 5% INTEREST RATE BUT ELIMINATES INTEREST RATE SUBSIDY
CONFORMS MOST CANCELLATION PROVISIONS WITH
DIRECT LOAN PROVISIONS FUNCTIONS LIKE A LOW-INTEREST UNSUBSIDIZED
DIRECT LOAN
SCHOOL PARTICIPATION
ALLOCATIONS MAY REWARD SCHOOLS FOR GRADUATING PELL GRANT RECIPIENTS AND KEEPING TUITION COSTS LOW
CURRENTLY PARTICIPATING INSTITUTIONS WILL BE HELD HARMLESS ON ALLOCATION AMOUNTS
MOST OF SCHOOLS’ PERKINS REVOLVING FUNDS MUST BE RETURNED TO THE DEPARTMENT OF EDUCATION
GOAL OF PROGRAM ELIMINATION
TO CREATE SAVINGS TO FUND OTHER PROGRAMS AND PROVIDE DEFICIT REDUCTION
GUARANTORS, LENDERS AND SERVICERS ARE STILL PERMITTED TO CONTRACT WITH THE DEPARTMENT OF EDUCATION TO ASSIST WITH BORROWER SERVICES• FFEL loans made prior to July 1, 2010• Direct Loans made after July 1, 2010
THE DEPARTMENT IS PROVIDING TRAINING AND FINANCIAL SUPPORT OF $50 MILLION TO ASSIST FFEL SCHOOLS WITH TRANSITION TO DIRECT LENDING
ERRATA
FEDERAL ASSISTANCE FOR COMMUNITY COLLEGE MODERNIZATION AND CONSTRUCTION
EARLY LEARNING CHALLENGE FUND
NEXT STEPS
SENATE COUNTERPART TO HOUSE BILL RECONCILIATION EXPECTED TIE-IN TO HEALTH CARE LEGISLATION PASSAGE EXPECTED BY END OF 2009
SIGNED BY THE PRESIDENT ON AUGUST 14, 2008
MOST PROVISIONS WERE EFFECTIVE IMMEDIATELY
FINAL REGULATIONS PUBLISHED DURING THE WEEK OF OCTOBER 26, 2009 WITH FINAL IMPLEMENTATION SCHEDULED FOR JULY 1, 2010
MAXIMUM AUTHORIZED GRANT INCREASED TO $8,000 BY 2014-2015
YEAR-ROUND GRANTS AVAILABLE• Up to two Pell Scheduled Awards may be disbursed to
a student per year• Second scheduled award disbursed after completion
of first Title IV academic year• Provision may sunset in 2014 (SAFRA)
PROGRAMS NOT REAUTHORIZED BEYOND THE 2010-2011 YEAR
VETERANS BENEFITS NOT CONSIDERED AS RESOURCES FOR TITLE IV ELIGIBILITY PURPOSES, EFFECTIVE JULY 1, 2009
MILITARY HOUSING NO LONGER CONSIDERED UNTAXED INCOME AS OF JULY 1, 2010
EFC REDUCED TO 0 FOR STUDENTS WHOSE PARENT(S) WERE KILLED IN SERVICE ON OR AFTER SEPTEMBER 11, 2001
LOANS FORGIVEN FOR SERVICEPEOPLE WHO MUST WITHDRAW DUE TO BEING ACTIVATED FOR DUTY (SAFRA)
TITLE X OF THE HIGHER EDUCATION ACT EXPANSION OF FEDERAL LOAN COUNSELING
REQUIREMENTS NET PRICE AND MULTIYEAR TUITION CALCULATORS TEXTBOOK INFORMATION FIRE SAFETY CAMPUS CRIME REPORTING CATEGORIES MISSING STUDENT REPORTING VOTER REGISTRATION
DEPARTMENT OF EDUCATION REPORT TO CONGRESS ON SIMPLIFYING THE FAFSA, JANUARY 16, 2009• Skip logic• Reduction of data elements• EZ FAFSA for low-income applicants• Sharing information between ED and IRS
• Prior-prior year pilot program for high school students
GAO REPORT, OCTOBER 29, 2009
INFORMATION FOR FINANCIAL AID PROFESSIONALS (IFAP)• www.ifap.ed.gov
NATIONAL CENTER FOR EDUCATION STATISTICS (NCES)• www.nces.ed.gov
LIBRARY OF CONGRESS• thomas.loc.gov
NATIONAL ASSOCIATION OF STUDENT FINANCIAL AID ADMINISTRATORS (NASFAA)
• www.nasfaa.org NATIONAL ASSOCIATION OF INDEPENDENT COLLEGES AND
UNIVERSITIES (NAICU)• www.naicu.org
TEXAS GUARANTEED STUDENT LOAN CORPORATION (TGSLC)
• www.tgslc.org
BRENDAN FUREYAMERICAN STUDENT [email protected]
ZACK GOODWINHARVARD UNIVERSITY DIVISION OF CONTINUING [email protected]
LYNNE MYERSCOLLEGE OF THE HOLY [email protected]
