1. Future of Direct Lending Chuck Knepfle Director of Financial Aid Clemson University

2. A little about me for you Bingo boards…. I have worked outside of South Carolina I have 3 or more pets I have a tattoo

3. Direct Lending Trivia What school was the first to originate a Direct Loan? – BONUS: What date? July 1, 1994

4. Direct Lending Trivia What was the Congressional trade-off for the 150% rule we are all working to implement?

5. Direct Lending Trivia Under what president was Direct Lending created?

6. Direct Lending Trivia Which South Carolina Congressional members are on the education committees? – Tim Scott (Senate) – Joe Wilson (House) – Trey Gowdy (House)

7. National Direct Student Loan Coalition The National Direct Student Loan Coalition (the Coalition) is an alliance of schools dedicated to the continuous improvement and strengthening of the federal Direct Loan program. Coalition members are practicing financial aid professionals. The Coalition's goals are to: – Advocate high standards in the delivery of student loans by all participants in the process; – Facilitate efficient delivery of loans by providing a liaison to the US Department of Education on behalf of schools; – Provide an effective communication network among participating schools to improve program administration; – Educate public officials, the financial aid community, professional associations, the media and the general public on student lending; and, – Promote policies to minimize the use of student borrowing and improve loan terms for those who borrow

8. Upcoming Legislation Student Loan Borrower Bill of Rights – Various disclosures for private loans – Refinance private loans – Requires school certification – Changes bankruptcy protection Know Before You Owe Student Loan Act – Requires schools to certify private loans ExCEL Act (Earnings Contingent Education Loans Act) – Establishes IDEA Loan, with pay- ments taken directly from income

9. Reauthorization Proposals National Direct Student Loan Coalition: – http://www.directstudentloancoalition.org/media /pdfs_autogen/Reauth-Comp_9-2013.pdf http://www.directstudentloancoalition.org/media /pdfs_autogen/Reauth-Comp_9-2013.pdf NASFAA (Loan Task Force on Loan Indebtedness) – http://www.nasfaa.org/indebtedness-report.aspx http://www.nasfaa.org/indebtedness-report.aspx

10. Reauthorization Proposals Simplification of the DL Servicing interface Common portal Standardized look to communications Equal service levels across servicers Single income driven repayment plan Increased loan limits, but with school option to limit

11. Reauthorization Proposals Elimination of loan proration Elimination of loan forgiveness as a taxable event Re-thinking loan subsidies Separate GRAD Plus and Parent PLUS

12. Carnac the Magnificent talks Direct Lending…..

13. One combined Income Based Repayment method More attention to private loans Increased focus on CDR Elimination of Subsidized Loans More clarity and consistency to DL servicing More schools leaving DL for default rate concerns

14. Negotiated Rulemaking State authorizations for distance education State authorization of foreign locations Debit / Stored Value cards Definition of adverse credit in PLUS program

15. Negotiated Rulemaking Financial aid administrators David Sheridan Columbia University in the City of New York Paula Luff DePaul University Minority serving institutions David Swinton Benedict College George French President Miles College Two-year public institutions Brad Hardison Santa Barbara City College Melissa Gregory Montgomery College Four-year public institutions Chuck Knepfle Clemson University J. Goodlett McDaniel George Mason University Private, non-profit institutions Elizabeth Hicks Massachusetts Institute of Technology Joe Weglarz Marist College Private, for-profit institutions Deborah Bushway Capella University Valerie Mendelsohn American Career College

16. Interested in being more involved? Read NASFAA’s news, Insidehighered.com and The Chronicle Join the National Direct Student Loan Coalition Look for SCASFAA/SASFAA/NASFAA opportunities Write to your local member of Congress

17. Questions?