1. National Association of Student Financial Aid Administrators The State of Student Aid NJASFAA Conference Slide 1 © NASFAA 2011

2. Once we considered education a public expense, we know now it is a public investment. —Lyndon B. Johnson

3. Agenda 1. Washington Political Climate 2. Trends in Financial Aid 3. Predictions for Future Funding 4. Campus Impact/Takeaways 5. What’s Going on at NASFAA? Slide 3 © NASFAA 2011

4. Washington Political Climate

5. Political Climate Three climate drivers: 1.Partisanship & Brinkmanship 2.Budget Politics Dictating Policy 3.Election Season has Begun Slide 5 © NASFAA 2011

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7. Budget, Budget, Budget Slide 7 © NASFAA 2011 Deficit Reduction FY 2011FY 2012 Debt Ceiling

8. Budget, Budget, Budget Slide 8 © NASFAA 2011 PUBLIC SAYS DON’T TOUCH EDUCATION! YouGov Poll

9. We’ve ALREADY Taken our Fair Share Student Aid Cuts Elimination of Year-Round Pell Elimination of Graduate Student Interest Subsidy Elimination of LEAP 0.2 Percent Across-the-Board Cuts Sunsetting of ACG/SMART *Future: Next year interest rate rises to 6.8 percent

10. Budget & Appropriations 101 What is supposed to happen… President releases budget in February House & Senate pass Budget Resolution in April Appropriations Committees draft bills Appropriations bills voted on and passed before Oct. 1 Slide 10 © NASFAA 2011

11. Budget & Appropriations 101 But what usually happens… Omnibus spending bill—combines all 12 spending bills into one Continuing resolution (CR) Slide 11 © NASFAA 2011

12. FY 2011, in Review Congress passed long-term CR, 4/14/2011 Major Student Aid Provisions ◦ Maximum $5,550 Pell Grant award for award year 2011-12 ◦ Elimination of Year-Round Pell (crossover reg lifted for summer 2011) ◦ SEOG cut by $20 million; cuts to TRIO, GEAR UP ◦ 0.2 percent cut across-the-board ◦ Eliminate LEAP, Byrd Scholarships Slide 12 © NASFAA 2011

13. Budget Control Act Result of “debt ceiling” negotiations Congress passed on Aug. 2 Two stage process: ◦ $1 trillion in deficit reduction through spending caps; $900 billion debt ceiling increase ◦ Establishment of “Super Committee” to come up with additional $1.2 trillion in cuts before end of calendar year Slide 13 © NASFAA 2011

14. Budget Control Act Main provisions for student aid: ◦ Eliminate in-school interest subsidy for graduate students ◦ Eliminate Direct Loan repayment incentives ◦ Provide $17 billion for Pell Grants for FYs 12 and 13 The math: ◦ BCA Pell funding reduces FY 12 shortfall to $1.3 billion, down from $11 billion. Also will provide some additional Pell funding for FY 13 ◦ $4.6 of the savings went toward deficit reduction Slide 14 © NASFAA 2011

15. Budget Control Act The “Super Committee” ◦ Bipartisan, bicameral ◦ 12 members, 2 co-chairs ◦ Must come up with $1.2 trillion in cuts by December, if not an automatic across-the-board cutting mechanism— sequestration—goes into effect ◦ Committee has begun deliberations Slide 15 © NASFAA 2011

16. FY 2012 FY 2012 fiscal year began 10/1 Neither House or Senate completed their 12 spending bills ◦ Both chambers put forth Labor-H bills CR passed to temporarily fund government through November 18 Slide 16 © NASFAA 2011

17. FY 2012 Senate Labor-H spending bill ◦ Provides maximum $5,550 Pell Grant ◦ Eliminates interest subsidy during grace period  Saves $2.43 billion over five years, this would plug remaining $1.3 billion Pell shortfall ◦ Level funding for all other student aid programs ◦ Bill marked-up and approved by entire Appropriations Committee Slide 17 © NASFAA 2011

18. FY 2012 House Labor-H spending bill ◦ Provides maximum $5,550 Pell Grant ◦ Limits eligibility to 6 years ◦ Revoke Pell eligibility for less than half-time ◦ Eliminate Ability to Benefit option ◦ Reduce student income protection allowances (IPA) Slide 18 © NASFAA 2011

19. FY 2012 House Labor-H spending bill, con’t. ◦ Reduce auto-zero income threshold ◦ Reduce minimum award ◦ Reinstate previously excluded forms of untaxed income ◦ Bill dropped but not marked-up or approved by Committee Slide 19 © NASFAA 2011

20. What next??? Minibus spending bill likely ◦ Will combine, or “bundle”, 2-3 appropriations bills into one ◦ Both House and Senate Labor-H bills will serve as starting points for negotiation ◦ Recent Updates ◦ ***Important to remember*** Super Committee negotiations will be going on simultaneously and could very easily impact any FY 12 bill Slide 20 © NASFAA 2011

21. Takeaway: Student aid is caught up in a much larger political dysfunction & ideological impasse.

22. Takeaway: Student aid changes will likely continue to come through the budget process

23. Takeaway: Everything is still “on the table” and there very well could be some additional student aid changes into the next year

24. Takeaway: The maximum Grants ($5,550) appears to be in pretty good shape for the immediate future, although there is still a risk

25. Advocacy and You

26. What is Advocacy? 1. To recommend or support publicly 2. A person who upholds or defends a cause; supporter 3. A person who intercedes on behalf of another Slide 26 © NASFAA 2011

27. What is Advocacy? 1. Lobbying v. Advocacy 2. You don’t need to be in DC to be an effective advocate Slide 27 © NASFAA 2011

28. What is Advocacy? Advocacy is proactive AND reactive Slide 28 © NASFAA 2011

29. Why Does NASFAA Advocate? The National Association of Student Financial Aid Administrators (NASFAA) supports the training, diversity, and professional development of financial aid administrators; advocates for public policies and programs that increase student access to and success in postsecondary education; and serves as a forum for communication and collaboration on student financial aid issues. Slide 29 © NASFAA 2011

30. Why Does NASFAA Advocate? Our advocacy efforts center around these major policy areas: Increasing access to higher education, including early awareness and outreach Simplifying student aid systems Encouraging college persistence & completion College savings and financial education Minimizing student indebtedness and emphasizing grant and work aid Supporting the primacy of need-based aid Slide 30 © NASFAA 2011

31. NASFAA Advocacy Tools Letters Statements Testimony Social Media Educational Materials Coalitions & Partnerships Hill Visits Slide 31 © NASFAA 2011

32. NASFAA Advocacy Examples Letter to Super Committee Administrative Cost Allowance One-Pager Elimination of Crossover Regulation for Summer 2011 National Profile & Congressional Staff Orientation Recent Budget Bill Hill Visits Save Student Aid Facebook Page Budget Center Committee for Education Funding & Student Aid Alliance Participation in Award Letter Discussions Slide 32 © NASFAA 2011

33. Advocacy and You Visit our Facebook Page! Write letters to your delegation and to Super Committee members Get students involved! Visit our “Take Action” page and “Budget Center” to stay up to date on legislative news Use our tools as examples Slide 33 © NASFAA 2011

34. Advocacy and You Build relationships with your lawmakers now by delivering information sheets on how their constituents—the students and families you serve—benefit from the student aid programs. Follow the latest legislative developments by reading Today’s News, the NASFAA Advocate, and following us on the NASFAA Facebook page and the Save Student Aid Facebook page. Share with NASFAA all your correspondence with lawmakers so we can support you and understand how to better work with your Congressional delegates. Visit NASFAA’s “Take Action Page” to stay up-to-date on NASFAA’s latest calls to action Slide 34 © NASFAA 2011

35. Advocacy and You Visit our Facebook Page! Write letters to your delegation and to Super Committee members Encourage your students to do the same Visit our “Take Action” page and “Budget Center” to stay up to date on the latest news and to learn about ways for you and your campus to get involved Slide 35 © NASFAA 2011

36. Other than the Budget… Award Letter Conversations Several Research Projects Reauthorization Forum Slide 36 © NASFAA 2011

37. Question and Answer Segment Questions? mccleanm@nasfaa.org. Questions? mccleanm@nasfaa.org. Slide 37 © NASFAA 2011