Department of Education Update Minnesota Collection Network Mega Conference XXII Brian Smith U. S. Department of Education October 27,2014

TOPICS  Budget Issues  Administration Initiatives  Recent Legislation  Regulatory Activity  ED Initiatives  Dear Colleague Letters and Electronic Announcements

Budget Issues

FY 2015 Federal Budget Request Six top priorities  Increasing equity and opportunity for all students  Strengthening support for teachers and school leaders  Expanding high-quality early learning opportunities  Improving affordability, quality and success in postsecondary education  Promoting educational innovation  Making our schools safer

Budget Issues FY 2015 Federal Budget Request –Fully fund maximum Pell Grant Award to $5,830 –Strengthen academic progress requirements to encourage on-time completion –Reinstate Ability to Benefit for career pathway programs

Budget Issues FY 2015 Federal Budget Request –Expands Pay As You Earn (PAYE) repayment plan regardless of when student borrowed –Caps Public Service Loan Forgiveness (PSLF) at aggregate loan limit for independent undergraduate students –Prevents payments from non-income driven repayment plans from being applied to PSLF –Eliminates all other income-driven repayment plans for new borrowers as of July 1, 2015

Budget Issues FY 2015 Federal Budget Request –Level-fund SEOG and Federal Work Study and reform allocation formula –Reform and Expand Perkins Loan Program  Provide $8.5 billion in new loan volume  Reach students at up to 2,700 additional postsecondary institutions  Annually determined fixed-rate interest rate  Uses current Perkins Loan loan limits  Reform allocation formula

Budget Issues 2015 Federal Budget Request –Establish State Higher Education Performance (SHEP) Fund  Competitive grant program for states to support, reform, and improve performance of their public higher education systems  Calls on states to make college more affordable and increase college access and success, especially for low-income students

Budget Issues 2015 Federal Budget Request –Establish College Opportunity and Graduation Bonus Program  Rewards colleges that successfully enroll and graduate low- and moderate-income students on-time  Encourages all institutions to improve performance  Grants will support innovations, interventions and reforms to increase college access and success

Budget Issues FY 2015 Federal Budget Request –Support institutional innovation  $100 million for First in the World for innovative strategies and practices that improve affordability and outcomes for low-income students  $75 million for new College Success Grants, a competitive grant program to HBCUs and MSIs to support innovations that reduce costs and improve outcomes for students

Budget Issues FY 2015 Federal Budget Request –Minority Serving Institutions  Aid for Institutional Development programs: $423 million in discretionary funding and $155 million in mandatory funding  Aid for Hispanic-Serving Institutions programs: $107 million in discretionary funding and $100 million in mandatory funding

Administration Initiatives

“Making Student Loans More Affordable” –Directs Department of Education to amend regulations to cap payments at 10% of monthly income for all borrowers –Strengthens incentives for loan contractors to serve students well –Ensures active-duty military get the relief they are entitled to

Administration Initiatives “Making Student Loans More Affordable” –Work with private sector to promote awareness of repayment options –Use innovative communication strategies to help vulnerable borrowers –Promotes stronger collaborations to improve information for families and students –Actions to reduce indebtedness and promote college affordability

Administration Initiatives College Ratings System –Tie financial aid to college performance –Challenge states to fund public colleges based on performance –Hold students and colleges receiving student aid responsible for making progress toward a degree Metrics: Access, affordability & outcomes Timing: Before the 2015 school year

Administration Initiatives FAFSA Completion Initiative –Ensures that more students take the first step towards college by completing the FAFSA –ED partners with states to identify students who have not completed the FAFSA –FSA updated existing FAFSA completion tool to track overall number of FAFSAs completed by students at particular schools

Recent Legislation

Continuing Appropriations Resolution, 2015 (H.J. Res. 124) –Funds Federal government until December 11, 2014 –No changes to the HEA, Title IV, student financial assistance programs

Regulatory Activity

Negotiated Rulemaking Gainful Employment Negotiated Rulemaking Committee  Three negotiations:  Sept , Nov , Dec. 13, 2013  Consensus not reached  NPRM published on March 25, 2014  Final expected by November 1, 2014  Effective July 1, 2015

Negotiated Rulemaking Violence Against Women Act Negotiated Rulemaking Committee  Three Negotiations:  Jan. 13 – 14, Feb. 24 – 25, March 31 – April 1, 2014  Consensus reached  NPRM published June 20, 2014  Final expected by November 1, 2014  Effective July 1, 2015

Negotiated Rulemaking Program Integrity and Improvement Negotiated Rulemaking Committee  Four negotiations:  Feb , March , April 23 – 25, May 19 – 20, 2014  Cash management  State authorization of distance ed programs  State authorization of foreign locations of domestic institutions  Definition of PLUS adverse credit history  Repeat coursework  Clock-to-credit hour conversion  Consensus not reached

Negotiated Rulemaking Definition of PLUS adverse credit history –NPRM published on August 8, 2014 –Final expected by November 1, 2014 –Effective July 1, 2015 –Final regulations will be subject to early implementation

Negotiated Rulemaking Teacher Preparation Negotiated Rulemaking Committee –Negotiations were held in November 2012 –Consensus not reached –NPRM currently under review at OMB –Except for the Teach Grant component, these proposed regulations are not subject to the Master Calendar requirements

Negotiated Rulemaking Planned Negotiated Rulemaking on Expansion of PAYE Repayment Plan –Federal Register Notice published Sept. 3, 2014 –We propose to develop regulations that:  Allow more student Direct Loan borrowers to qualify for PAYE  Target the new PAYE option to borrowers who would otherwise struggle to repay their student loans

Negotiated Rulemaking Planned Negotiated Rulemaking on Expansion of PAYE Repayment Plan –Interested parties may suggest additional issues for consideration by the negotiating committee at two hearings:  Washington, D.C. (Oct. 23, 2014)  Anaheim, California (Nov. 4, 2014) –Written suggestions must be received by Nov. 4, 2014

Negotiated Rulemaking Planned Negotiated Rulemaking on Expansion of PAYE Repayment plan –Negotiating sessions would begin Feb. 2015:  Three sessions  Approximately 3 days each  At roughly monthly intervals

ED Initiatives

College Scorecard –Designed by the Dept. of Education and the National Center for Education Statistics to provide better information to students and parents about college affordability and value

ED Initiatives College Scorecard –Generates list of colleges based on factors selected by the student –Selection factors include:  Programs or majors offered  Location  Undergraduate enrollment size  Campus setting  Awards offered

ED Initiatives College Scorecard –Includes 5 key pieces of information about each college selected:  Costs  Graduation Rate  Loan Default Rate  Median borrowing  Employment

ED Initiatives Financial Aid Shopping Sheet –ED and Consumer Financial Protection Bureau partnered to promote transparency in student financial disclosures –Designed to help students better understand amount of institutional grant or scholarship aid they may receive and amount of loans recommended to cover remaining costs

ED Initiatives Financial Aid Shopping Sheet –Product of extensive feedback from the public, consumer advocacy groups and higher education leaders –In conjunction with release, Secretary Duncan published an open letter to college and university presidents asking them to voluntarily adopt the Shopping Sheet

ED Initiatives Financial Aid Shopping Sheet –Provides costs and student financial aid information to students in a uniform format –Information provided includes:  Estimated COA  Grants and scholarships  Net costs  Options to pay net costs

ED Initiatives Financial Aid Shopping Sheet –Provides consumer information about the school:  Graduation rate  Loan default rate  Median borrowing amounts offer/index.html

ED Initiatives Financial Awareness Counseling Tool –On-line tool to help students manage loan debt –Brings transparency to process of debt management –Provides students with five interactive tutorials covering topics ranging from managing a budget to avoiding default –Provides borrowers access to individual loan history –Accessed through StudentLoans.gov

Dear Colleague Letters and Electronic Announcements

Dear Colleague Letters NSLDS Program-Level Enrollment Reporting (GEN-14-17) –Published August 29, 2014 Improved Administration of the Servicemembers Civil Relief Act for Direct Loan and FFEL Borrowers (GEN ) –Published August 25, 2014

Dear Colleague Letters Additional Guidance on the Supreme Court’s Ruling on the Defense of Marriage Act (DOMA) (GEN-14-15) –Published July 24, 2014 Additional Guidance on the Supreme Court’s Ruling on DOMA and its Implications for the Title IV Student Financial Assistance Programs (GEN ) –Published July 24, 2014

Dear Colleague Letters Implementation of Changes to the Clery Act made by the Violence Against Women Reauthorization Act (GEN ) –Published July 14, 2014 Announcement of “Designated Entities” Eligible to Receive FAFSA Filing Status Information Under the FAFSA Completion Initiative (GEN-14-12) –Published July 10, 201 4

Electronic Announcements Adjustment of Calculation of Official Three-Year Cohort Default Rates for Institutions Subject to Potential Loss of Eligibility –Published Sept 23, 2014 Federal Perkins Loan Program Processing and Reporting Requirement Reminders –Published September 12, 2014

Questions

CONTACT INFORMATION Brian Smith Office of Postsecondary Education Gail McLarnon Office of Postsecondary Education