New Era of Accountability Diane Auer Jones Assistant Secretary for Postsecondary Education U.S. Department of Education

2 Restoring Confidence Federal Student Aid Programs Borrower Benefits/Choice Transparency Compliance Financial Aid Administrators FFEL Lenders and Guarantee Agencies Department of Education

3 College Attendance Rates

4 College Prices Institutional Type Average Cost Average Cost Increase over past 10 years, % Increase 2005/6 to 2006/7, $ Increase in 2005/6 to 2006/7, % 2 year Public $1,465$2,27255%$904% 4 year TF Public $2,975 $7,142 $5,836 $12,796 96% 79% $344 $681 6% 4 year TF Private $12,994 $18,357 $22,218 $30,367 71% 65% $1,238 $1,624 6% TF TFRB T (tuition); F (fees); R (room); B (board) Source: College Board

5 Helping Students Make Informed Choices FAFSA4Caster College Navigator FIPSE Student Achievement and Institutional Performance Pilot Project AAC&U, ASCU, & NASULGC

6 Federal Student Aid * Estimate

7 Pell Grant Maximum Awards Fiscal YearAward YearAuthorizedAppropriated $4,800 $3, $5,100 $3, $5,400 $4, $5,800 $4, $5,800 $4, $5,800 $4, $5,800 $4, $5,800 $4, $ $ $ $ ,090

8 Academic Competitiveness Grants Pell Grant Eligible Enrolled Full-Time & U.S. Citizen Rigorous Secondary School Program of Study Recognized State-submitted programs; or Courses similar to State Scholars Initiative; or 2 AP Courses with test score of 3 or better; or 2 IB Courses with test score of 4 or better Award Size: $750/$ :  $233,038,410 awarded to 299,089 students

9 Academic Competitiveness Grants Innovative Strategies to Identify Eligible Students: Institutions and states can establish a branded core curriculum for college admissions. Example: The University of California’s A-G coursework requirements for Admissions are well-known by high schools students throughout the State and constitute an ACG-approved course of study. The state can certify AC Grant eligibility by sending to postsecondary institutions reports listing eligible students. Example: Students in the State of Florida who have completed the ACG- approved curriculum are eligible to receive the Bright Futures Scholarship. Florida sends universities the names of Bright Futures recipients. Institutions can reach out to all Pell Grant recipients, not just students who self- identify as eligible. Example: Brigham Young University, Idaho, contacted all students who self-certified on their FAFSA as well as other students who appeared to be potentially eligible based on a review of transcripts and financial aid records.

10 National SMART Grants Eligibility: Pell Grant Eligible Enrolled Full-Time & U.S. Citizen 3rd and 4th year college students enrolled in and making progress toward a degree in STEM or Critical Needs Foreign Language; GPA 3.0 or better. Award Size: $ $195,544,735 awarded to 60,976 students Changes Additional SMART Majors added Enrollment requirements clarified

11 Institutional Aid $ thousands

12 State Aid $ thousands

13 Federal Student Loan Volume (FFEL & Direct Loans) $ millions

14 Average Federal Student Loan Debt Undergraduate students with a 4-Year Degree (Percent of students borrowing) 66% 62% 58% 40%

15 Average Federal Student Loan Debt Monthly Payment $207 Monthly Payment $411

16 Student Loans Stafford/Unsubsidized Stafford/PLUS Direct Loans/FFEL Competition yields better borrower benefits Private Loans Fill gap above Federal Student Loan limits Should not displace grant aid or Federal loans Marketing Practices Dept. of Education - Interagency Group Ombudsman (borrowers) (Financial aid professionals)

Presenter Name(s) National Student Loan Cohort Default Rates Percentage

18 Ripped from the Headlines Lenders Misusing Student Database Improper Searches Raise Privacy Fears Swimming With Student Loan Sharks University named in report detailing student loan abuse Rules proposed to curb loan abuse Panel Finds Wide Abuse in Student Loan Program

19 Compliance Dear Colleague Letters Negotiated Rulemaking – Began in 2006 Publication of Final Rule – Nov. 1, 2007

College Cost Reduction & Access Act Changes Affecting FFEL Lenders and Guaranty Agencies Effective October 1, Reduced: FFEL guaranty agency retention percentage from 23% to 16%. FFEL lender special allowance payments (SAP) by 55 basis points (40 for non-profit lenders). GA account maintenance fee from.10% to.06% Increased lender loan fee from.50% to 1.0%. Eliminated Exceptional Performer Designation for FFEL lenders, servicers, and guaranty agencies.

Increased Pell Grants TEACH Grants* Loan Forgiveness for Public Service Employees* PLUS Auction Pilot College Access Challenge Grants College Cost Reduction & Access Act * - Requires negotiated rulemaking

College Cost Reduction & Access Act Negotiated Rulemaking Regional Hearings: 11/2 (LA); 11/14 (DC); 11/29 (CA) Nominations: November 29, 2007 Target Dates: TEACH: Publication (6/1/08) and Implementation (7/1/08*) FULL PACKAGE: Publication (11/1/08) and Implementation (7/1/09)

HEA Reauthorization?

Thank you!