1. TASFAA Federal Update October 5, 2007

2. 2006-07 Negotiated Rulemaking

3. 2006-2007 Negotiated Rulemaking
For & subsequent award years
Four negotiating committees were established:
Accreditation
General Provisions
Academic Competitiveness & National SMART Grants
Loans

4. Accreditation
The Secretary has decided that we will not issue regulations on accreditation at this time.

5. 2006-2007 Negotiated Rulemaking
Notices of Proposed Rulemaking (NPRM) published:
Loans – July 12
ACG and National SMART – August 7
General Provisions – August 8
Final rules published by November 1, 2007
Effective Dates: July 1, 2008
Possible early voluntary implementation

6. Legislation

7. LEGISLATION Reauthorization Reconciliation Senate Passed July 24, 2007
No House bill yet.
Reconciliation
Budget Reconciliation –
“College Cost Reduction and Access Act of 2007” passed by both Houses
President signed bill September 27, 2007

8. College Cost Reduction and Access Act
Pell, ACG and SMART
Eliminates Pell Grant tuition sensitivity award rule, as of date of July 1, 2007
Increases Pell Grant award by –
$ for and
$ for and
$ 1,090 for
No changes to ACG and National SMART Grant Programs

9. College Cost Reduction and Access Act
TEACH Grants
Teacher Education Assistance for College and Higher Education Grants for
Must be repaid as Direct Unsub Loan if student does not teach
Annual grant amounts up to –
$4,000 for first undergraduate or post-baccalaureate (non degree) student
$8,000 for graduate student
$16,000 aggregate maximum

10. College Cost Reduction and Access Act
TEACH Grants
Eligibility –
Completing coursework necessary to begin a career in teaching
Plans to complete coursework necessary to begin a career in teaching
If completing coursework for a graduate degree
3.25 GPA –equivalencies
Highly Qualified Teacher

11. College Cost Reduction and Access Act
TEACH Grants
Eligibility –
Must teach at Title I school in —
Mathematics
Science
A foreign language
Bilingual education
Special education
As a reading specialist
Other “high-need” fields

12. College Cost Reduction and Access Act
Need Analysis and EFC Calculation
Income Protection Allowance
Modifies the way income protection allowance is calculated and updated. Effective with the award year

13. College Cost Reduction and Access Act
Need Analysis and EFC Calculation
Auto-Zero and Simplified Needs Test
Adds Dislocated Worker in addition to type of tax return and means tested benefits
Increases time from 12 to 24 months for means tested benefits
Increases Auto Zero EFC income level from $20,000 to $30,000 (indexed)
Effective for the award year

14. College Cost Reduction and Access Act
Need Analysis and EFC Calculation
Excludes from “untaxed income” --
Welfare payments
Earned income credit amounts
Special fuel tax credit
Excluded foreign income
Untaxed Social Security Benefits
Effective for the award year

15. College Cost Reduction and Access Act
Need Analysis and EFC Calculation
Adds to independent student definition –
Is in foster care or a ward of the court, at any time when the individual is 13 years of age or older
Is an emancipated minor or is in legal guardianship
Has been verified as an unaccompanied youth who is a homeless child or youth
Effective for the award year

16. College Cost Reduction and Access Act
Need Analysis and EFC Calculation
Excludes ‘special combat pay’ from income
Qualified education benefit (529 plan) owned by dependent student is an asset of the parent
Distributions from 529 plans excluded from other financial assistance
Effective for the award year

17. College Cost Reduction and Access Act
FAA Discretion – Professional Judgment and Dependency Overrides
Adds dislocated worker and homelessness as examples of when an FAA can use professional judgment
Provides that an FAA can use a dependency override made by another FAA within the same award year
Both effective July 1, 2009

18. College Cost Reduction and Access Act
FFEL and Direct Loans
Interest Rates –
Reduces interest rates on FFEL and DL undergraduate subsidized loans from 6.8% to 3.4% by Beginning in 2013 the rate reverts back to First reduction begins with loans first disbursed on or after July 1, 2008
No increases in loan limits.

19. College Cost Reduction and Access Act
FFEL and Direct Loans
Economic Hardship Deferment –
Changed one of the conditions from borrowers earnings being less than 100% of the poverty level for a family size of two, to
150% of poverty level for the borrower’s family size to –
Eligible if borrower is working fulltime and is earning less than the greater of –
The Federal minimum wage (annualized) or –
150% of poverty level for borrower’s family size. (Use to be 100% of a family size of two)

20. College Cost Reduction and Access Act
Perkins, FFEL, and Direct Loans
Current (HERA) Military Deferment –
All Title IV loans, not just loans that were made
on or after July 1, 2001
Removes three year time limit
Adds a 180 period after demobilization
New deferment for up to 13 months following end of service if borrower was in school or grace when called to active duty

21. College Cost Reduction and Access Act
FFEL and Direct Loans
Income Based Repayment (July 1, 2009) –
Stafford and Student PLUS loans
Borrower’s maximum annual repayment amount is no more than 15% of the difference borrower’s AGI and 150% of the poverty line based on family size
If negative amortization, government pays interest on subsidized loans for three years
Unpaid amounts are forgiven after 25 years

22. College Cost Reduction and Access Act
FFEL and Direct Loans
Ability to Consolidate Single FFEL Consolidation Loan expanded to include for purpose of new Direct Loan only, Public Service loan forgiveness program
Effective July 1, 2008

23. College Cost Reduction and Access Act
Direct Loans (FFEL)
Forgiveness for Public Sector Employees –
Direct Loan borrowers who –
Had made 120 monthly payments
Starting on date of enactment
Employed in public sector during entire repayment period
FFEL borrowers may consolidate into DL to get benefit but all payments must have been in DL

24. College Cost Reduction and Access Act
FFEL Lenders and Guaranty Agencies
Reduction of FFEL lender insurance to 95% for loans first disbursed on or after October 1, 2012
Reduces FFEL guaranty agency retention percentage from 23% to 16%, effective October 1, 2007

25. College Cost Reduction and Access Act
FFEL Lenders and Guaranty Agencies
Reduction of FFEL lender special allowance payments (SAP) by 55 or basis points (40 for non-profit lenders)
Increased lender loan fee from .50% to 1.0%
Reduces GA account maintenance fee from .10% to .06%
All effective October 1, 2007

26. College Cost Reduction and Access Act
FFEL Lenders and Guaranty Agencies
Elimination of Exceptional Performer Designation for FFEL lenders, lender servicers, and guaranty agencies effective October 1, 2007
Extension for lender until expiration of current designation

27. College Cost Reduction and Access Act
Special FFEL Auction Pilot
Authorizes study of auction method for the origination or selling of student loans
Starting with FFEL PLUS Loans for parents
State by State

28. FAFSA4CASTER

29. What is the FAFSA4caster?
Early start on the financial aid process
Instantly calculates federal student aid eligibility
Access FAFSA4caster at

30. www.FederalStudentAid.ed.gov click on FAFSA4caster

31. FAFSA4caster Simplifies financial aid process:
Provides information about college planning, admissions, and federal financial aid
Describes the Federal Student Aid programs
Provides aid eligibility requirements
Provides an overview of the federal financial aid process

32. Benefits of the FAFSA4caster
Provides an estimated Expected Family Contribution (EFC)
Calculate estimated eligibility for federal aid, including grants
Reduce time to complete the Free Application for Federal Student Aid (FAFSA)
Match conducted with Social Security Administration
Automatically generates and s the Federal Student Aid PIN in time to use with FAFSA on the Web
Available in Spanish

33. Who should use the FAFSA4caster?
Students who want to get an early start on the application process
Any student considering their financial options to help pay for a postsecondary education
High school juniors
Parents of younger students
Non-traditional students (adult learners)

34. How accurate is the FAFSA4caster?
Estimate of eligibility based on the current laws and the information the student provides
Changes in income, household size, or other factors may affect eligibility when student completes the FAFSA

35. Filling out a FAFSA4caster
Students will:
Provide their Social Security Number (SSN) and first and last name exactly as they appear on their Social Security Card
Create a password
Refer to their W-2 Forms, bank statements, business, and mortgage information
Have their alien registration or permanent resident card (if not a U.S. citizen)

36. Begin the FAFSA4caster

37. FAFSA4caster Students will have to start a new FAFSA4caster if they:
Forget their password
Do not retrieve a saved FAFSA4caster within 45 days

38. FAFSA4caster
FAFSA4caster gives an estimate of a student’s ENTIRE federal student aid package, including eligibility for student loans, by collecting additional data such as:
Grade level
Other program specific criteria

39. Estimate Award Package

40. Things to Remember
No signatures are required to complete and submit a FAFSA4caster
No SARs or ISIRs generated
Applicant notified if SSA match fails
No PIN is needed to access the FAFSA4caster
Customer Service and built-in help is available

41. Conferences and Training Activities and System Updates

42. Conferences School’s Portal under “Resources and Training”
No sign-on necessary
Preview of upcoming FSA conferences, agendas, hotel and travel information.

43. 2007 Federal Student Aid Conferences
New Orleans
October 30th thru November 2nd
San Diego
November 26th – November 29th

44. TFAP

45. Training on the Web R2T4 on the Web COD Basics for Title IV Grants
Calculating the EFC
Applicant Data Resolution
Identifying information sources with FAA Access
Analyzing the ISIR
Resolving data issues

46. Training on the Web FISAP Training NSLDS Data Overview
Data sources and reporting
Calculating remaining Aggregate loan limits and remaining eligibility
NSDLS Eligibility Monitoring
Transfer monitoring
Pre/Post Screening
POP

47. For 08-09 COD Changes Automatic password reset (functioning now)
New MPN
Addition of several new values for ACG/SMART
Eligibility used
Total eligibility used
Scheduled grant amount

48. On the Horizon – System Changes
GAPS Redesign
IPM (Integrated Partner Management)
Effects eCAR
EZ Audit
Destination Point Administrator

50. Contact Information
Claire “Micki” Roemer
Phone