1. Federal Legislation The Deficit Reduction Act of 2005

2. Deficit Reduction Act Academic Competitiveness & SMART Grants Academic Competitiveness & SMART Grants Stafford Loan Interest Rates Stafford Loan Interest Rates Stafford Loan Borrowing Limits Stafford Loan Borrowing Limits Other Loan Issues Other Loan Issues Need Analysis Issues Need Analysis Issues

3. Academic Competitiveness Grant 1 st & 2 nd Year Undergraduate Study 1 st & 2 nd Year Undergraduate Study $750 for 1 st Year$750 for 1 st Year $1,300 for 2 nd Year$1,300 for 2 nd Year Criteria: Criteria: Pell Grant EligiblePell Grant Eligible Enrolled Full TimeEnrolled Full Time Attend a High School whose programs have been deemed rigorousAttend a High School whose programs have been deemed rigorous Maintain a 3.00 GPA (Annually)Maintain a 3.00 GPA (Annually) Effective Date: 2006-2007 Effective Date: 2006-2007

4. Science & Math Access to Retain Talent Grant (SMART) 3 rd & 4 th Year Undergraduates Study 3 rd & 4 th Year Undergraduates Study Award up to $4,000Award up to $4,000 Criteria: Criteria: Pell Grant EligiblePell Grant Eligible Enrolled Full-TimeEnrolled Full-Time Major in Science, Math, Engineering, & specific LanguagesMajor in Science, Math, Engineering, & specific Languages Must maintain a 3.00 GPAMust maintain a 3.00 GPA Effective Date: 2006-2007 Effective Date: 2006-2007

5. Student Loan Interest Rates Interest rates will change from a variable rate to a fixed rate on loans made from 7/1/2006. Interest rates will change from a variable rate to a fixed rate on loans made from 7/1/2006. Stafford & Direct loans will have a fixed rate of 6.8% Stafford & Direct loans will have a fixed rate of 6.8% The variable rate this year is 5.3%The variable rate this year is 5.3% Parent Loans will have a fixed rate of 8.5% Parent Loans will have a fixed rate of 8.5% The variable rate this year is 6.1%The variable rate this year is 6.1%

6. Student Loans Limits Increase 1 st Year loans from $2,625 to $3,500. Increase 1 st Year loans from $2,625 to $3,500. Increase 2 nd Year loan limits from $3,500 t0 $4,500. Increase 2 nd Year loan limits from $3,500 t0 $4,500. No increase of loan limit for 3 rd & 4 th year loans. No increase of loan limit for 3 rd & 4 th year loans. The aggregate loan limit of $23,000 does not increase. The aggregate loan limit of $23,000 does not increase.

7. Other Loan Issues Phase out the 3% Origination Fee. Phase out the 3% Origination Fee. Authorize military deferments up to three years during war time & national disasters. Authorize military deferments up to three years during war time & national disasters. Fix consolidation loan rates Fix consolidation loan rates at 6.8%. at 6.8%. Eliminate in-school & spousal consolidations. Eliminate in-school & spousal consolidations. These changes are effective These changes are effective 2006-2007. 2006-2007.

8. Need Analysis Changes Increase the Income Protection Allowance for dependent students from $2,200 to $3,000. Increase the Income Protection Allowance for dependent students from $2,200 to $3,000. For independent students increase the allowance against income from $5,000 to $6,050. For independent students increase the allowance against income from $5,000 to $6,050. Reduce the percentage of a dependent student’s assets from 35% to 20%. Reduce the percentage of a dependent student’s assets from 35% to 20%. Effective date: July 1, 2007. Effective date: July 1, 2007.

9. Other Need Analysis Changes Simplified Needs Test Simplified Needs Test Expand eligibility for the Simplified Needs Test for students & parents who receives a means-tested federal benefit programs (i.e. Food Stamps & School Lunch programs).Expand eligibility for the Simplified Needs Test for students & parents who receives a means-tested federal benefit programs (i.e. Food Stamps & School Lunch programs). Automatic Zero Expected Family Contribution (EFC) Automatic Zero Expected Family Contribution (EFC) Expand the Automatic Zero EFC by raising the income cap from $15,000 to $20,000.Expand the Automatic Zero EFC by raising the income cap from $15,000 to $20,000. Effective Date: July 1, 2006 Effective Date: July 1, 2006

10. State Legislation The 2006-2007 New York State Budget

11. 2006-2007 New York State Budget Topics Two New Aid Programs Two New Aid Programs Math & Science Teaching Incentive ScholarshipMath & Science Teaching Incentive Scholarship Part-Time TAPPart-Time TAP Change in Circumstances Change in Circumstances Ability to Benefit Ability to Benefit Change to Satisfactory Academic Chart Change to Satisfactory Academic Chart

12. Math & Science Teaching Incentive Scholarship Purpose Purpose Increase the number of middle and secondary teachers in the fields of Math & ScienceIncrease the number of middle and secondary teachers in the fields of Math & Science Conditions of the Scholarship Conditions of the Scholarship Available for both bachelor & master’s degree levelsAvailable for both bachelor & master’s degree levels Must enters into a contract with HESC to teach on a full-time basis for five years in math or scienceMust enters into a contract with HESC to teach on a full-time basis for five years in math or science Failure to comply with terms of contract will have the value of the award converted to a student loanFailure to comply with terms of contract will have the value of the award converted to a student loan

13. Math & Science Teaching Incentive Scholarship (Cont.) Number of Awards Number of Awards A Maximum of 500 awards annuallyA Maximum of 500 awards annually Amounts Amounts Equal to SUNY Tuition Rate ($4,350)Equal to SUNY Tuition Rate ($4,350) Awards made after one successful completion of the academic year (1 st payment made in 2007-2008)Awards made after one successful completion of the academic year (1 st payment made in 2007-2008) Annual awards for 4 years of full-time undergraduate study and 1 year of full- time graduate studyAnnual awards for 4 years of full-time undergraduate study and 1 year of full- time graduate study

14. Part-Time TAP Requirements Requirements Student must be a Freshman in 2006-07Student must be a Freshman in 2006-07 Full-Time for two consecutive semestersFull-Time for two consecutive semesters Maintain a “C” averageMaintain a “C” average Hence, program will not start until 2007- 2008Hence, program will not start until 2007- 2008 Questions Questions How is the award calculated?How is the award calculated? What is the Award amount?What is the Award amount?

15. Part-Time TAP (Cont.) Part-Time TAP vs. Aid for Part Time Study (APTS) Part-Time TAP vs. Aid for Part Time Study (APTS) Part-Time TAP does not replace APTSPart-Time TAP does not replace APTS APTS is fully funded at 14.6 millionAPTS is fully funded at 14.6 million APTS is a campus based program whereas Part-Time TAP is an entitlement program.APTS is a campus based program whereas Part-Time TAP is an entitlement program.

16. Change in Family Circumstance Adjustments to Family Income Adjustments to Family Income Current conditions: death, permanent disability, or divorce of a parent/spouseCurrent conditions: death, permanent disability, or divorce of a parent/spouse New “catastrophic illness” of the applicantNew “catastrophic illness” of the applicant Question: Who can Make the Changes? Question: Who can Make the Changes? Is it left to the Financial Aid Officer or the Higher Education Services Corporation (HESC)Is it left to the Financial Aid Officer or the Higher Education Services Corporation (HESC)

17. Ability to Benefit (ATB) Changes Students who do not have a high school diploma or GED must pass a federally approved ATB test in order to receive any state aid Students who do not have a high school diploma or GED must pass a federally approved ATB test in order to receive any state aid The State Education Department will provide guidance about the independent testing and evaluation process. The State Education Department will provide guidance about the independent testing and evaluation process.

18. Changes to Satisfactory Academic Progress Charts The State has legislated a The State has legislated a uniform chart to determine a student’s satisfactory progress. Must be used by all institutions for first- time undergraduate students beginning with the 2006-2007 academic year. Must be used by all institutions for first- time undergraduate students beginning with the 2006-2007 academic year.

19. Accelerated Study Students qualify for accelerated study only upon the completion of 24 credits, or its equivalent, in the prior two terms. Students qualify for accelerated study only upon the completion of 24 credits, or its equivalent, in the prior two terms. Implemented for terms beginning after Jan. 1, 2007 Implemented for terms beginning after Jan. 1, 2007