1. NYSFAAA School Counselors Presentation Daniel M. Tramuta Associate Vice President for Enrollment Services New York State Financial Aid Administrators Association (NYSFAAA) - Past President Eastern Association of State Financial Aid Administrators (EASFAA) - State Rep State University of New York at Fredonia tramuta@fredonia.edu 716.673.3253

2. Overview of Higher Education Landscape ‘The Challenges & Opportunities’ Demographics Decline in HS Graduates out to 2022 Selectivity Matrix Program Demand Retention Merit-Based Arms Race Scholarship – increased tuition discounting to find price point Cost & Affordability Debt at Graduation Return on Investment New Academic Programs Growth in STEM Programs http://www.fredonia.edu/finaid/stem.asp http://www.fredonia.edu/finaid/stem.asp

3. Using Prior-Prior Year Tax Income Data on the FAFSA The Free Application for Federal Student Aid (FAFSA) becomes available every January 1, and currently requires a family's tax information from one year prior. Families are encouraged to file the FAFSA as soon as possible to maximize their odds of receiving financial aid. But with tax deadlines months later, most have to estimate their tax information on aid applications and make corrections later. In the worst case scenario, some families miss out on financial aid funds that are disbursed on a first-come basis. By using income from two years ago, otherwise known as prior-prior year (PPY) tax income data, families could file the FAFSA with tax information they already have, making the process quicker and easier. By taking advantage of the existing ability to import tax information directly from the IRS onto the FAFSA form, families will spend less time gathering paperwork and would make far fewer errors. The use of prior-prior year income also presents an opportunity to align admissions and financial aid decisions and give millions of families more time to plan for actual college costs, rather than sticker prices or projections. Low-income families experience very little income fluctuation from year to year and most would not see a significant change in their eligibility for a Pell Grant with a switch to prior-prior year income. Prior-prior year income is the closest thing to a "silver bullet" for an industry in search of meaningful solutions. With earlier admission decisions and financial aid awards, administrators will have more time to help families evaluate their options and make informed financial decisions. 3

4. Using Prior-Prior Year Tax Income Data on the FAFSA With the switch to PPY, students and families will be able to: File the FAFSA earlier. As you know, the FAFSA is made available January 1 of each calendar year, yet it is uncommon for a family or individual to be prepared to file an income tax return in the month of January. Under the new PPY system, the 2017-18 FAFSA will be available in October 2016, rather than after January 1, 2017, and students can use the PPY’s completed income tax return. More easily submit a FAFSA. The IRS Data Retrieval Tool (DRT), which allows automatic population of a student’s FAFSA with tax return data and decreases the need for additional documentation, can be used by millions more students and families under PPY, since tax data from two-years prior would be readily available upon application. Receive earlier notification of financial aid packages. If students apply for aid earlier, colleges can in turn provide financial aid notifications to students earlier, ensuring that students and families have more time to prepare for college costs. Notifying students earlier of their financial aid packages will also leave more time for one-on-one counseling with students and families. * Next year’s (2016-17) aid applicants will be using the same prior year federal income (2015) for two consecutive years 4

5. Administration Rollout of PPY September 14, 2015 In Des Moines, Iowa, President Obama announces action to implement PPY on the 2017-18 FAFSA On October 1, 2016, the FAFSA for the 2017-18 award year will be released by the Department of Education. 5

6. Identifying Implications The move to PPY could have some important implications for colleges and universities Budget and tuition planning timelines may need to be adjusted if award determinations are made in the fall instead of the spring Recruitment and admissions offices may need to alter messaging as high school seniors will receive financial aid information much earlier Earlier distribution of acceptance letters Earlier distribution of financial aid award letters 6

7. What PPY Could Mean for High School Counselors? Improved discussions about financing college –Earlier and more realistic conversations about financial viability –Improved College ScoreCard (CollegeScorecard.ed.gov) Financial Aid/FAFSA information nights held earlier –May include more colleges/universities to assist Fall workload increases College/University requests for earlier visits 7

8. Potential Impacts on Student and Family Behavior Shifting priorities in college search Changed college application patterns –Earlier and/or later applicants? Both? Earlier and more informed enrollment decisions Mixed views on stress 8

9. Potential Impacts on Admission and Recruitment Behavior Earlier discussions about financial viability Admissions staff cross-training Rolling admissions could be at an advantage –Acceptances and financial aid decisions sent together? Challenges to articulating value proposition Adoption of early decision/early action programs Changes in yield projection accuracy –Econometric modeling may not be as accurate –Methodically enhance yield activities/resources –Potentially have earlier, stronger indicators of class yield 9

10. SUNY Statewide Student Financial Aid Days January & February 2016  Ask questions about the financial aid application(s), types of aid available and the actual awarding process  Most campuses will offer web access and personal assistance to complete FAFSA’s online  Register at www.suny.edu/student in early December 2015

11. Panel Discussion