1. Student Aid Modernization Initiative (SAMI)
Marcus Szymanoski
Manager, Regulatory Affairs
DeVry Education Group
April 6, 2017
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2. Champions of Financial Aid - 2017 ILASFAA Conference
What is SAMI?
The Student Aid Modernization Initiative (SAMI) is a new approach to awarding federal student aid.
SAMI has two primary components:
Program-length awarding
Proportional, per-unit distribution of financial aid
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3. What is wrong with the current system?
The current structure has several limitations:
Designed for traditional, semester-based programs - requires a defined Academic Year
Students cannot plan beyond year-one
Students must re-apply every year (FAFSA)
Complex, burdensome, inefficient
Year-round study is not supported by Pell
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4. What is wrong with the current system?
Pell Grant issues
Enrollment status tier (not actual enrollment) determines maximum Pell Grant award
Students attempting different portions of a program (often) receive the same funding
Year-round study is not supported
Award amount can change annually
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5. What is wrong with the current system?
Direct Loan issues
Enrollment status (part-time), not actual enrollment, determines eligibility
Students attempting different portions of a program can borrow the same amount
Complexity
Student’s grade level affects loan amount
Student’s dependency status affects loan amount
Institutions lack authority to limit borrowing
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6. Example of Current Awarding Scenario
Aaron: 8 Semesters to complete = 4 full Pell awards, $23,100
Bill: 10 Semesters to complete = 5 full Pell awards, $28,875
Funding Inequity: $5,775
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7. Champions of Financial Aid - 2017 ILASFAA Conference
What is the Solution?
SAMI
Award financial aid to students for the full duration of their academic program
Distribute financial aid proportionally as the student progresses through their academic program
Champions of Financial Aid ILASFAA Conference

8. Student Aid Modernization Initiative
Aaron: 8 Semesters to complete = $23,100
Bill: 10 Semesters to complete = $23,100
Funding Inequity: $0
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9. Champions of Financial Aid - 2017 ILASFAA Conference
How Does SAMI Work?
Student completes the FAFSA once - upon beginning an academic program
Student receives federal student aid award information for their entire academic program “Program Awards”
The program award(s) are distributed proportionally as the student progresses
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10. How Does SAMI Work?
Each of the student’s program awards are divided by the number of units required to complete the academic program
Program-Level Award / Units in the program = Per-unit award
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11. How Does SAMI Work?
Each of the student’s program awards are divided by the number of units required to complete the academic program
Program-Level Award / Units in the program = Per-unit award
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12. How Does SAMI Work?
The per-unit award is multiplied by the number of units being attempted in the enrollment period
Units in enrollment period X Per-unit award = Grant award
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13. Champions of Financial Aid - 2017 ILASFAA Conference
Pell Example
The following example uses Pell Grant award amounts as a baseline to approximate program level Pell Grant award using the SAMI method
A student with a 0 (EFC) might have a maximum program-level award of approximately $23,100, at the bachelor’s level ($5,775 x 4 years of study)
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14. Champions of Financial Aid - 2017 ILASFAA Conference
Pell Example
This example also assumes the student is enrolled in a 120 credit-hour bachelor’s program, and that the student enrolled for 15 credit-hours in the enrollment period being awarded
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15. Champions of Financial Aid - 2017 ILASFAA Conference
Pell Example
Program-Level Pell Grant Award / Units in the program = Per-unit Pell Grant award
$23,100 / 120 = $192.50
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16. Pell Example
Units in enrollment period X Per-unit award = Pell Grant award
15 X $ = $2,888
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17. Champions of Financial Aid - 2017 ILASFAA Conference
Pell Example
Using SAMI, the award automatically compensates for the student’s enrollment changes in Term 2, unlike the current method, which awards the same amount for both terms.
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18. Champions of Financial Aid - 2017 ILASFAA Conference
SAMI Concepts
Program Awards: Student receives program-length awards up front, based on applicable variables such as credential type and financial need
Unit: The term “unit” denotes the measurement used to subdivide an educational program into its constituent parts (credit hours, clock hours, competencies, etc.)
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19. Champions of Financial Aid - 2017 ILASFAA Conference
SAMI Concepts
Enrollment Period: The period of enrollment used to calculate and award a student’s financial aid - no defined academic year exits under SAMI
Cost of Attendance: COA continues to exist under SAMI, serving as a factor limiting a student’s total awards in an enrollment period
The COA applied to an enrollment period under SAMI is calculated on a per-unit basis
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20. Champions of Financial Aid - 2017 ILASFAA Conference
SAMI Concepts
Expected Family Contribution: EFC is used in two ways:
To calculate the student’s initial program award eligibly (Pell Grants, FSEOG)
To determine a student’s financial need within each enrollment period
Two EFC values will exist
An annual EFC to determine a student’s program-level awards
A per-day EFC used to determine a student’s financial need
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21. Champions of Financial Aid - 2017 ILASFAA Conference
SAMI Concepts
150 Percent Cap: To appropriately limit the amount of aid a student can use over time, while also accounting for unproductive units, students are limited to 150% of the program-level award, for each award type
Going back to the previous example, a student with Pell Grant program-level award of $23,100, would have a 150 percent cap of $34,650
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22. Champions of Financial Aid - 2017 ILASFAA Conference
SAMI Concepts
150 Percent Cap: SAMI also incorporates a pace expectation of 67%
Necessary to avoid hitting the 150% cap before the program is completed – also encourages persistence
Schools will have discretion to address unique circumstances
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23. Champions of Financial Aid - 2017 ILASFAA Conference
SAMI Concepts
Direct Loans
As with Federal Pell Grant awards, loans are awarded at the program level
Eliminates the need for award year maximum loan amounts based on grade level
Eliminates the need to differentiate loan award amounts based on the student’s dependency status
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24. Champions of Financial Aid - 2017 ILASFAA Conference
SAMI Concepts
Figures above are for illustrative purposes only, not policy recommendations
Additional program tiers should be considered to address the full spectrum of programs (certificate, boot camps, health professions, etc.)
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25. Champions of Financial Aid - 2017 ILASFAA Conference
SAMI Concepts
Pell: Several other program-level tiers would exist
Figures above are for illustrative purposes only, not policy recommendations
Additional program tiers should be considered to address the full spectrum of programs (certificate, boot camps, health professions, etc.)
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26. What is the Anticipated Impact?
Students will have the ability to receive federal student aid (including Pell) “year-round,” in proportion to their enrollment
Increased precision of federal student aid awards, increasing overall system efficiency
More equitable distribution of federal student aid among students
Incentive for institutions to “lock-in” tuition rates for continuing students
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27. What is the Anticipated Impact?
Students will have the ability to develop a financing plan for the entire academic program
Students will be empowered to make financially-informed enrollment decisions
Students will more easily understand federal student aid, and how awards relate to enrollment, progress toward completion, and other behaviors
Excessive loan debt will be more difficult to incur
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28. What is the Anticipated Impact?
Students with the time and ability to increase course load will be incentivized to do so, since awards increase proportionally with enrollment
Students who study part-time will be better supported by receiving federal student aid in proportion to their enrollment
Reduction in administrative burden through simplified awarding procedures, less frequent ISIR processing, verification, and related activities
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29. What is the Anticipated Impact?
Increased predictability of federal budget impact of Title IV programs
Institutions of higher education will have greater flexibility to innovate, experiment, and improve education delivery models
Increased cohesion between policymakers and students, by viewing postsecondary education as a multi-year commitment
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30. Questions. https://www. nasfaa
(630)
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