Upload
thomas-morrison
View
219
Download
0
Tags:
Embed Size (px)
Citation preview
Federal UpdateFederal Update
GASFAA ConferenceBraselton, GA
Anthony JonesOffice of Postsecondary Education
June 2, 2005
2
AGENDA
President’s FY 2006 Budget Advisory Committee PART Process Student Unit Record System Default rates Use of PIN System Requirements Late Disbursements
4
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
5
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
6
Title IV Program BudgetsAppropriations
* President's FY 2006 Budget Submission
FY 2004 FY 2005 FY 2006*(AY 04-05) (AY 05-06) (AY 06-07)
Pell Grant $12,006,738,000 $12,364,997,280 $17,952,821,000 (Max Award) $4,050 $4,050 $4,150
FSEOG $ 770,455,000 $ 778,720,000 $ 778,720,000
FWS $ 998,502,000 $ 990,257,056 $ 990,257,000
Perkins $ 98,764,000 $ - $ - (Cancellations) $ 66,665,000 $ 66,131,680 $ -
LEAP $ 66,172,000 $ - $ - Math/Science $ - $ - $ 50,000,000
Program
65,642,624
7
Title IV Program BudgetsAid Available
* President's FY 2006 Budget Submission
131,285,000
FY 2005 FY 2006*(AY 05-06) (AY 06-07)
Pell Grant $ 12,901,175,000 $ 13,591,660,000 (Max Award) $4,050 $4,150
FSEOG $ 985,722,000 $ 985,722,000 FWS $ 1,184,229,000 $ 1,184,229,000 Perkins $ 1,135,368,000 $ - LEAP $ - $ - Math/Sci. $ - $ 100,000,000 Loans $ 56,812,932,000 $ 62,468,823,000 TOTAL $ 73,019,426,000 $ 78,330,434,000
Program
73,186,351,000
166,925,000
8
Title IV Program BudgetsFederal Pell Grants
FY 2006*(AY 06-07)
Funding Request $ 17,952,821,000
Prior Year Shortfall $ (4,300,821,000)
Administrative Expenses $ (27,340,000)
State Scholars $ (33,000,000)
Aid to Students $13,591,660,000
Expenditures
* President's FY 2006 Budget Submission
9
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
10
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
11
Federal Work-Study & FSEOG
Phase-out conditional guarantee over 5 years Replace FWS 7% community service requirement with 20% set aside
President’s FY 2006 Budget Request
12
New Programs
Presidential Math-Science Scholars ProgramLoan program for short-term
training – with Department of Labor
President’s FY 2006 Budget Request
13
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
President’s FY 2006 Budget Request
14
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
President’s FY 2006 Budget Request
15
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
President’s FY 2006 Budget Request
16
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
President’s FY 2006 Budget Request
17
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
President’s FY 2006 Budget Request
18
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
President’s FY 2006 Budget Request
19
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
President’s FY 2006 Budget Request
20
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
President’s FY 2006 Budget Request
21
Institutional Eligibility
Eliminate 50% rules for distance education programs
Eliminate 90/10 rule for proprietary institutions
President’s FY 2006 Budget Request
22
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
Study of Simplification of Need Analysis and Application
Process
23
Four National Imperatives Empower Students to make sound
decisions about higher education Make It Easy to ensure students get the
financial aid they deserve Lose The Paper to create an integrated
web-based student aid system Work Together to forge creative public-
private access partnerships
Simplification Study (cont’d)
25
PART
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
26
0-49Ineffective
50-69Adequate
70-84Moderately Effective
85-100Effective
RangeRating
Results Not Demonstrated
Insufficient Performance
Measures=
PART
27
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
PART
30
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
31
Student Unit Record SystemConcerns
Privacy & confidentiality Data on students not receiving aid Unauthorized access to data
Institutional burden Transitional burden Long-term burden
Coordination Timing
32
Student Unit Record System
Benefits
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
34
National Student Loan Default RatesNational Student Loan Default Rates
Issued date: 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
17.2
21.4
22.4
17.8
15
11.610.7
10.49.6
8.8
6.9
5.6 5.95.4
0
5
10
15
20
25
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
5.2
Per
cent
age
35
SASFAA Default Rates (FY 2000-2002)SASFAA Default Rates (FY 2000-2002)
STATE FY 2000 FY 2001 FY 2002Alabama 6.9% 6.5% 6.8%
Florida 7.8% 7.1% 7.0%
Georgia 7.1% 6.9% 6.6%
Kentucky 6.5% 7.1% 6.7%
Mississippi 9.0% 7.0% 6.4%
North Carolina 7.1% 5.4% 4.2%
South Carolina 4.9% 4.1% 4.6%
Tennessee 7.0% 6.6% 6.1%
Virginia 5.0% 4.5% 4.4%
National Rate 5.9% 5.4% 5.2%
36
Constitution DayConstitution 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
37
Constitution DayConstitution 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.
39
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
40
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”
41
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
42
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)
44
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 COD Common
Record - XML
46
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
47
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
48
“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)
49
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 Procedures
50
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 Procedures
51
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 Procedures
52
To request approval, send a fax to:
COD School Relations Center
Late Disbursement Request
(877) 623-5082
School is notified via e-mail
“Late” Late Disbursement Procedures