1. “Accessing College Through Comprehensive Early Outreach, State Partnerships, and
Simplification Act”

2. Do you need to be concerned with what this Act would require if enacted?

3. Yes!
Your State will be impacted by this Act and the potential simplification of the FAFSA!

4. Yes!
Your state may be impacted by the Grants for Access and Persistence (GAP) component.

5. That’s what we’re here to discuss!
How?
That’s what we’re here to discuss!

6. FAFSA Related

7. Set auto-zero at $25,000
Currently at $15,000 AGI/income earned from work
If eligible, skip questions:
student and parent income and exemptions
student and parent worksheets A, B & C
student and parent assets.
More students eligible for maximum Pell
Impact on state programs?

8. Adjust auto-zero annually
Use the consumer price index to determine the new threshold.
Impact on state programs?

9. Expand simplified needs test
Currently set at $50,000 AGI and filed or were eligible to file a 1040A or 1040EZ.
If eligible, do not report assets.

10. Expand simplified needs test
Have AGI of $50,000 or less
Have participated in federal means-tested programs in last 24 months such as:
Free/Reduced Price Lunch Programs
TANF
Food Stamps
Impact on state programs?

11. EFC changes How will your state be affected by EFC changes?
Can this be quantified?

12. Phase out full paper FAFSA
Implement paper FAFSA-EZ for auto-zero eligible students.
Phase out full paper form within five years
Printable full FAFSA available on line
Encourages FOTW usage
Include state data elements only if state accepts auto zero/SNT.
Impact in your state?

13. Reduce FOTW data elements
Make FOTW smarter.
Take into consideration state needs for data only if state uses auto zero/SNT.
Collect information annually from states on their need for data and acceptance of auto zero/SNT.
Impact on your state?

14. State Data elements
“The Secretary shall include on the forms developed under this subsection, such State-specific nonfinancial data items as the Secretary determines are necessary to meet State requirements for need-based State aid. Such items shall be selected in consultation with States…..”
Comments?

15. Notice to Secretary
States must annually notify the Secretary if they are unable to permit applicants to file the FAFSA-EZ or simplified electronic form.
Must indicate if law or policy and estimate of program costs if EZ use permitted.
Notification of State-specific nonfinancial data also required.

16. Earlier Financial Aid Applications
Allow Fall filing with estimates
Consider allowing filing in the previous spring with estimates.
In either case, provide early estimate of aid eligibility with final eligibility only after taxes are available and an update of FAFSA data is filed.
Impact on your state?

17. Reduce FAFSA Data Elements
Current possibilities
Earned Income Tax Credit
additional child tax credit
TANF
untaxed Social Security Benefits
foreign income exclusion
credit for federal tax on special fuels

18. Reduce FAFSA Data Elements
Drug Conviction
Selective Service Registration
Need statutory change
Impact on your state?

19. Protect more student earnings
Increase Income Protection Allowance (IPA) by $1,000.
Lower assessment rate to 40% for dependents and independent with dependents.
Impact on your state?

20. Eliminate state/local tax allowance
Maintain if IPA can’t be adjusted
Phase in periodic updates
Impact on your state?

21. Other things to think about
What is the cost impact of these proposals?
If the auto zero is implemented, how much in assets will be ignored in the aggregate and by states?
What is the impact of using prior prior year data?

22. Other things to think about
What information is available about the reliability/auditability of using other federal means tested programs for the SNT proposal?

23. Grants for Access and Persistence (GAP)

24. Early Awareness Activities
General aid and academic information for middle school students
Estimates of financial aid eligibility for high school students

25. Allotments to States Federal share will not exceed 66.66%
50% if partnership with degree granting schools whose combined FT enrollment is less than a majority of all students
57% if philanthropic organizations and private corporations are added
66.66% if majority of students, philanthropic organizations and private corporations are included.

26. Matching Funds
Must come from state, institutional, philanthropic or private funds.
Must supplement, not supplant, federal and nonfederal funds
How would your state handle this requirement?

27. Additional requirements
Provide early intervention, mentoring or outreach programs
Provide administrative organizational structure
Assurance that state can identify eligible low-income students and award state grant aid (e.g., use of auto zero)

28. Additional requirements
Provide notification that grants are LEAP and funded by the federal government and the state
Make determinations and early notifications of assistance
Complete annual report

29. Required notices
Notify low income students annually of their potential eligibility for student financial assistance, including funds under GAP
Include information about intervention, mentoring or outreach programs available
information that participation in such programs enhances access to GAP funds

30. Required notices
Participation in other federal means-tested programs may indicate GAP eligibility
Nonbinding estimate of financial aid, including GAP funds
Any state-specific requirements
Instructions on how to apply for GAP funds

31. Student Eligibility Zero EFC or comparable approved state criteria
Participation in outreach, mentoring, early intervention
Qualified for a free lunch, or at the state’s discretion a reduced price lunch
Qualifies for maximum undergrad award
Receives GAP award

32. Administrative Cost Allowance
Not more than 3.5% of funds made available annually through the allotment
How will the ACA be calculated and when will states receive these funds?

33. Other things to think about
Is student pre-college tracking necessary?
How will start up work? Will states be able to maintain funds for when the student reaches college age?
Does the required LEAP notification create concerns (e.g., application of Title IV refund policy)?

34. Other things to think about
How will the state report on the partnership’s progress in meeting the law?
Can the multiple formulas in GAP be simplified?

35. Other things to think about
Must renewal students have financial need?
How will states provide assurances of matching funds years before these are needed?

36. Thank you for your participation and continued input on these critical issues!