WHAT’S CHANGING AND WHAT IT MEANS FOR YOUR STUDENTS

2012 Financial Aid Changes

BIG CHANGES

A LOOK AT THE NUMBERS

Unduplicated Numbers

2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

610,112652,641

714,004 732,362 732,321781,819

891,984

1,045,112

Unduplicated Financial Aid Recipients

Unduplicated Financial Aid Recipients

8 Year Comparison

Year Credit EnrollmentNumber of BOG

Fee WaiversDollar Value of

BOG Fee WaiversNumber of Pell

GrantsDollar Value of Pell

GrantsDollar Value of All

Aid Programs

2002-03 2,690,594 597,286 $102,726,455 239,925 $533,720,693 $895,275,669

2003-04 2,453,486 639,105 $168,185,622 246,093 $566,248,344 $1,018,060,333

2004-05 2,439,443 699,015 $266,390,548 259,958 $605,956,126 $1,170,057,941

2005-06 2,471,501 716,796 $273,785,746 254,603 $589,892,151 $1,170,094,754

2006-07 2,529,893 715,516 $249,021,634 247,143 $573,914,323 $1,132,521,342

2007-08 2,687,314 761,968 $225,305,123 270,098 $668,170,200 $1,242,937,640

2008-09 2,816,261 870,318 $253,942,628 321,066 $881,680,875 $1,553,328,885

2009-10 2,675,379 1,023,645 $369,297,507 418,775 $1,356,231,619 $2,228,378,885

2010-11 2,551,209 1,130,845 $410,709,338 491,577 $1,623,367,005 $2,546,557,910

8 year +/- -139,385 533,559 307,982,883 251,652 1,089,646,312 1,651,282,241

8 year % +/- -5.2% 89.3% 299.8% 104.9% 204.2% 184.4%

Policy Decisions and the Budget

Decisions about Financial Aid eligibility and access to college and other requirements should be made as policy decisions—BASED ON DATA and what is best for the STUDENTS.

More and more the decisions develop as part of budget policy.

CASE IN POINT: The federal budget act passed in mid-December included a number of dramatic changes to Financial Aid policy.

HAPPENING NOW

FEDERAL CHANGES

6 FT Year Limit on Pell Grant

6 FT Years or 600% of Pell in a LIFETIMEAt any collegeDepartment of Ed keeps the calculator and

will block anyone over 6 FT Years So, some of your students are out of Pell or will run

out before they get their BA Reinforces the SSTF recommendation to FOCUS the

students early

Elimination of ATB

Effective July 1, 2012, students must have a high

school diploma or the equivalent (i.e. GED or California High School Proficiency Exam) to be eligible to receive federal student aid.

Interest Subsidy for Student Loans

New loans made on or after July 1, 2012, and before July 1, 2014, will not be eligible for interest subsidy during the six month grace period.

Interest on a student loan just rose to 6.8% despite prime rate below 2%

Verification Changes

Biggest Change is that some students and parents can import their information from the IRS to their FAFSA.

If they opt not to, or are not allowed to, they will have to get an IRS Tax Transcript.

This will delay aid for some students.We must also start to verify child support and

food stamps as well.

Satisfactory Academic Progress

Your campus probably made BIG changes this year.

Minimum requirements are 2.0 GPA (term and cum.)

Minimum completion rate of 67% (term and cum.)

Your campus may opt to be stricter

Students who are disqualified must go without aid except in exceptional cases of unforeseen extreme issues which can be verified.

Course Repeats

THIS IS DIFFERENT FROM THE NEW STATE RULES ON REPEATS!!

A student may be paid federal aid to repeat a course they did not pass, until they either pass the class or are disqualified from aid.

A student who passed the class (and the feds define a ‘D’ as passed) and want to improve their grade, can only be paid to repeat it ONCE no matter what.

Cohort Default Rates

They are going to 3 years from 2 years—so most campuses will see dramatic increases!

CCCs are ‘low participation’ colleges. With less than 40% of our students taking loans, we can apply for a waiver of sanctions.

Clock Hours Changes

There is still much negotiation on this but: New definition of Credit hour for Federal Aid purposes Also indicated that if a state or federal licensing

agency requires a certain number of hours before a student can take an exam—the certificate or degree program must be in Clock Hours

Gainful Employment Report

Many of you have probably already been involved in discussions about the requirement to report data on all Vocational Certificate Programs.

But-did you know that the State of California passed SB-70 which affects a schools ability to participate in the Cal-Grant programs?

Proposals Floating

Increase in Federal Work Study IF the institution places students off campus

Elimination of Auto Zero EFC which will reduce the number of students receiving FT Pell

COMING IN 2012-13

State Changes

BOG Fee Waiver Changes

No more $1 of need eligibility!Student must have $1104 dollars of need

24 units X $46= $1104

Dream Acts AB 130 and 131

Effective January 1st 2013AB-130 allows institutions to grant NON-

public funds/scholarships to AB-540 studentsAB-131 makes AB-540 students eligible for

BOG Fee Waivers AB-131 also makes AB-540 students eligible

for Cal Grants.

SSTF Recommendations

Max Unit Cap on BOG Fee Waivers-110?Student must meet A&R academic and

progress standardsStudents must declare a degree, certificate or

career advancement goal.

CIOs: Help Connect Faculty to FA Changes

Ask questions and understand the implications

Ensure communication to students (flyers, email, Portal, etc.)

Have FA director and staff interact with faculty

Communicate with Academic Senate regularly

Some Dilemmas

Should students be advised to get more than one degree given Pell limitations?

How soon can students realistically develop a meaningful program of study?

Should students be allowed multiple ed plans for FA purposes?

What can Instruction do to help students complete courses faster?

Questions