MASFAA G OVERNMENT R ELATIONS C OMMITTEE N OVEMBER 4, 2009

 P ASSED BY THE H OUSE ON S EPTEMBER 18, 2009  I NCORPORATES MANY OF THE RECOMMENDATIONS MADE BY P RESIDENT O BAMA IN HIS EXECUTIVE BUDGET RELEASED F EBRUARY 26, 2009  P ROPOSES SIGNIFICANT CHANGES TO THE F EDERAL P ERKINS L OAN PROGRAM, AND THE ELIMINATION OF THE F EDERAL F AMILY E DUCATION L OAN P ROGRAM, AS OF J ULY 1, 2010

G OALS OF PROGRAM CHANGE  T O EXPAND NATIONAL ALLOCATION FROM $1 BILLION TO $6 BILLION  T O INCREASE THE NUMBER OF SCHOOLS ELIGIBLE TO PARTICIPATE FROM 1,800 TO 4,400  T O REDUCE THE NEED FOR PRIVATE LOAN BORROWING

L OAN T ERMS  R ETAINS 5% INTEREST RATE BUT ELIMINATES INTEREST RATE SUBSIDY  C ONFORMS MOST CANCELLATION PROVISIONS WITH D IRECT L OAN PROVISIONS  F UNCTIONS LIKE A LOW - INTEREST UNSUBSIDIZED D IRECT L OAN

S CHOOL P ARTICIPATION  A LLOCATIONS MAY REWARD SCHOOLS FOR GRADUATING P ELL G RANT RECIPIENTS AND KEEPING TUITION COSTS LOW  C URRENTLY PARTICIPATING INSTITUTIONS WILL BE HELD HARMLESS ON ALLOCATION AMOUNTS  M OST OF SCHOOLS ’ P ERKINS REVOLVING FUNDS MUST BE RETURNED TO THE D EPARTMENT OF E DUCATION

G OAL OF PROGRAM E LIMINATION  T O CREATE SAVINGS TO FUND OTHER PROGRAMS AND PROVIDE DEFICIT REDUCTION

 G UARANTORS, LENDERS AND SERVICERS ARE STILL PERMITTED TO CONTRACT WITH THE D EPARTMENT OF E DUCATION TO ASSIST WITH BORROWER SERVICES FFEL loans made prior to July 1, 2010 Direct Loans made after July 1, 2010  T HE D EPARTMENT IS PROVIDING TRAINING AND FINANCIAL SUPPORT OF $50 MILLION TO ASSIST FFEL SCHOOLS WITH TRANSITION TO D IRECT L ENDING

E RRATA  F EDERAL ASSISTANCE FOR COMMUNITY COLLEGE MODERNIZATION AND CONSTRUCTION  E ARLY L EARNING C HALLENGE F UND

N EXT S TEPS  S ENATE COUNTERPART TO H OUSE BILL  R ECONCILIATION EXPECTED  T IE - IN TO HEALTH CARE LEGISLATION  P ASSAGE EXPECTED BY END OF 2009

 S IGNED BY THE P RESIDENT ON A UGUST 14, 2008  M OST PROVISIONS WERE EFFECTIVE IMMEDIATELY  F INAL REGULATIONS PUBLISHED DURING THE WEEK OF O CTOBER 26, 2009 WITH FINAL IMPLEMENTATION SCHEDULED FOR J ULY 1, 2010

 M AXIMUM AUTHORIZED GRANT INCREASED TO $8,000 BY  Y EAR - 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)

 P ROGRAMS NOT REAUTHORIZED BEYOND THE YEAR

 V ETERANS BENEFITS NOT CONSIDERED AS RESOURCES FOR T ITLE IV ELIGIBILITY PURPOSES, EFFECTIVE J ULY 1, 2009  M ILITARY HOUSING NO LONGER CONSIDERED UNTAXED INCOME AS OF J ULY 1, 2010  EFC REDUCED TO 0 FOR STUDENTS WHOSE PARENT ( S ) WERE KILLED IN SERVICE ON OR AFTER S EPTEMBER 11, 2001  L OANS FORGIVEN FOR SERVICEPEOPLE WHO MUST WITHDRAW DUE TO BEING ACTIVATED FOR DUTY (SAFRA)

 T ITLE X OF THE H IGHER E DUCATION A CT  E XPANSION OF FEDERAL LOAN COUNSELING REQUIREMENTS  N ET PRICE AND MULTIYEAR TUITION CALCULATORS  T EXTBOOK INFORMATION  F IRE SAFETY  C AMPUS C RIME R EPORTING C ATEGORIES  M ISSING STUDENT REPORTING  V OTER REGISTRATION

 D EPARTMENT OF E DUCATION REPORT TO C ONGRESS ON SIMPLIFYING THE FAFSA, J ANUARY 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 R EPORT, O CTOBER 29, 2009

 I NFORMATION FOR F INANCIAL A ID P ROFESSIONALS (IFAP)  N ATIONAL C ENTER FOR E DUCATION S TATISTICS (NCES)  L IBRARY OF C ONGRESS thomas.loc.gov  N ATIONAL A SSOCIATION OF S TUDENT F INANCIAL A ID A DMINISTRATORS (NASFAA)  N ATIONAL A SSOCIATION OF I NDEPENDENT C OLLEGES AND U NIVERSITIES (NAICU)  T EXAS G UARANTEED S TUDENT L OAN C ORPORATION (TGSLC)

B RENDAN F UREY A MERICAN S TUDENT A SSISTANCE AMSA. COM Z ACK G OODWIN H ARVARD U NIVERSITY D IVISION OF C ONTINUING E DUCATION DC . HARVARD. EDU L YNNE M YERS C OLLEGE OF THE H OLY C ROSS HOLYCROSS. EDU