MDHE and State Updates Presented by: Jim Matchefts, Assistant Commissioner and General Counsel Leroy Wade, Assistant Commissioner Missouri Association of Student Financial Aid Personnel March 9, 2007

Agenda: Missouri News and Updates Commissioner and staff updates Loan program advisory committees Default Fee updates Default rates announced Missouri legislative updates State aid administrative rule changes The latest from the State SFA Committee Missouri Association of Student Financial Aid Personnel March 9, 2007

MDHE Staff Announcements Dr. Robert Stein appointed commissioner effective December 16, 2006 Other staff at MASFAP for the first time MDHE staff contribution to MASFAP scholarship fund Missouri Association of Student Financial Aid Personnel March 9, 2007

Rumors and Myths Dispelled Fact or fiction: “The MDHE doesn’t offer training and speaker services other than its once a year fall workshops.” – Fiction! – Fact: The MDHE offers speakers bureau services and customized training upon request on a variety of subjects. –... AND, it’s free! Missouri Association of Student Financial Aid Personnel March 9, 2007

Advisory Committee Recommendations Two meetings conducted in January MDHE should: – Remain Missouri focused, including a focus on state and local legislation and compliance issues – Expand its training services while keeping training free – Maintain and expand its focus on outreach and early awareness Next meetings scheduled for June Missouri Association of Student Financial Aid Personnel March 9, 2007

MDHE Default Fee Subsidy Updates About 94% of MDHE’s guarantees received an FDF subsidy to date – Lender code list: Close to $4 million has been added to reserve fund, which is used to buy defaulted loans Missouri Association of Student Financial Aid Personnel March 9, 2007

FFY05 Draft Default Rates Federal loan program participants received draft FFY05 CDRs in February – MDHE’s final 2004 CDR was 4.73% – Draft 2005 CDR is 4.26% 2004 national average 5.1% 2005 national average is estimated at 4.9% 2006 trigger rate: 2.18% Missouri Association of Student Financial Aid Personnel March 9, 2007

Missouri Legislative Updates

Missouri Senate Bill 389 Senator Gary Nodler of Joplin introduced on January 29 First public hearing January 31 Voted “do pass” by Senate Higher Education Committee February 7 Currently on Senate Informal Calendar Missouri Association of Student Financial Aid Personnel March 9, 2007

Bill Highlights Access Missouri Financial Assistance Program; repeal of Gallagher and College Guarantee State need-based aid may not exceed the COA Transfer of credit for entry level courses in certain subject areas Higher Education Student Funding Act Expansion of CBHE authority Lewis and Clark Discovery Initiative Approval of out-of-state public institutions Joint Committee on Education Public Higher Education Accountability Missouri Association of Student Financial Aid Personnel March 9, 2007

Rumors and Myths Dispelled Fact or fiction: “The MDHE is requiring private/independent colleges and universities to pay an administrative fee in order to continue participating in the Missouri state aid programs.” – Fiction! – Fact: The MDHE has sent several communications regarding Fast Track Implementation for the new grant program, if signed into law Missouri Association of Student Financial Aid Personnel March 9, 2007

Fast Track Implementation Updates Implementation costs estimated at $207,000 Letter sent December 29 to Missouri institutions’ presidents requesting contributions – Contributions would be refunded if implementation appropriation is passed – Contributions are completely optional Follow up s sent January 16 and March 5 Tier Technology contracted on February 23 to assist with FAMOUS changes Missouri Association of Student Financial Aid Personnel March 9, 2007

Other Missouri Legislation H.B. 250 – would double Bright Flight from $2,000 to $4,000 S.B. 362 – would create a new need-based program, repeal Gallagher & College Guarantee, and double Bright Flight awards S.B. 430 – would create the Smart Start Scholarship Program H.B. 612 – would expand the Vietnam Veteran’s program Higher education appropriations Missouri Association of Student Financial Aid Personnel March 9, 2007

For Missouri Legislative Updates... Visit the MDHE’s website weekly Missouri Association of Student Financial Aid Personnel March 9, 2007

MDHE Digest Articles January 2007: Update on Fast Track Implementation of Proposed Single Need Based Program February 2007: Missouri Senate Bill 389 March 2007 will also feature an update article – March issue should be available next week Missouri Association of Student Financial Aid Personnel March 9, 2007

MDHE E-Distribution Messages Bright Flight funding status (2/22/2007) Technology changes affecting FAMOUS (2/2/2007) – Microsoft Vista operating system – Extended daylight savings time hours Higher education bill introduced (1/31/2007) Marguerite Ross Barnett funding status (1/31/2007) State need-based aid packaging (1/25/2007) Missouri Association of Student Financial Aid Personnel March 9, 2007

State Aid Administrative Rule Changes

Rumors and Myths Dispelled Fact or fiction: “Although the Missouri state aid programs will now have a renewal criteria requiring a CGPA of 2.5, students will have a brief ‘grace period’ to allow time for them to bring up their grades, if necessary.” – Fact! – The new CGPA requirement will be implemented for the academic year Missouri Association of Student Financial Aid Personnel March 9, 2007

Administrative Rule Changes Requested Changes published in the Missouri Register dated February 15, 2007 – 2.5 CGPA renewal criteria for Bright Flight, Ross Barnett, and Gallagher – Ross Barnett program enrollment status change to include half-time and three-quarter time 30 day public comment period Changes expected to be effective July 30, 2007 – New CGPA requirement will be implemented for Missouri Association of Student Financial Aid Personnel March 9, 2007

State Aid Student Communications Bright Flight – Award letter (new recipients) – No PSI letter (no school choice listed) – Renewal letter State Aid Programs Application Status Letter These communications will include: – New 2.5 CGPA renewal criteria – July 31 st FAFSA correction deadline Missouri Association of Student Financial Aid Personnel March 9, 2007

More State SFA Information

State Aid Totals As of Thursday, 3/1/2007 – 21,110 students have received state aid funds – $37.3 million disbursed Missouri Association of Student Financial Aid Personnel March 9, 2007

State SFA Committee (SSFAC) Fast Track Implementation issues Rule development for and implementation of Access Missouri Merit-based student financial assistance Missouri Association of Student Financial Aid Personnel March 9, 2007

Questions? 3515 Amazonas Drive Jefferson City, MO (800) (573) Fax: (573)