COHEAO Priorities 2014

o Restore funding for loan cancellations o Preserve and Improve Perkins in

Higher Education Act Reauthorizationo Work on improvements to Telephone

Consumer Protection Act enforcemento Work with CFPB on campus-related

issueso Work with ED on cash management

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The Perkins Funding Picture 2014:

o No funds appropriated for Perkins FY2014 because President didn’t ask for them, appropriations bills done in secret, followed 2013 pattern

o BUT: Perkins remains popular in Congress, the Program continues at least through FY 2015, and the Department advises that schools should make loans- no excess cash!

o Schools can transfer funds from Work Study to Perkins revolving fund

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ED Neg Reg 2014: “Program Integrity”

o COHEAO observing, working with negotiators representing school interests

o Finished in April, regs effective July 1, 2015

o Agenda:• Cash management – looking at how

and how long Title IV funds used by institution

• Campus debit cards and Title IV funds

• PLUS Loan adverse credit definition• Clock to credit hour conversion• State authorization of distance ed

programs

Higher Education Act Reauthorization

o COHEAO: Preserve and Improve Perkins

o Hearings continue in House and Senate

o COHEAO submitted its Campus Flex proposal, interest shown in it

o Final action not expected before 2015 or 2016, maybe longer• Other ideas still welcome• COHEAO will make new proposals if

necessary• Big Issue: does the program

“sunset?”

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COHEAO’s Campus Flex Proposal

o Single Appropriation for all three campus-based aid programs: Work Study, Supplemental Educational Opportunity Grants and Perkins Loans

o Characteristics for each maintained but simplified.

o Schools allocate funds between programs according to students’ needs for each academic year.

o Appropriations transfers between programs allowed

o Perkins Loans stay the same, except grace period of six months as with other federal loans.

o Consolidate cancellations and consider income threshold

o Adjust campus-based program allocation formulas

to ensure fair distribution of appropriations.

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More COHEAO Activities and Goals

o Consumer Financial Protection Bureau:• Stay engaged, responding to

requests for meetings, submitting comments on proposals

• Represent schools on issues related to A/R, disclosures and collections

• Monitor activities and educate COHEAO membership on CFPB regulations and practices

o Financial Literacy• Collect and share best practices in

developing financial literacy programs on campus

• Monitor activities related to financial literacy legislation or oversight

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More COHEAO Activities and Goals

o Accounts Receivable IssuesAct as a forum for discussion and sharing of best practices, advocate where appropriate on:• Collection Regulations on Campus Debt• Truth In Lending Act– as related to Tuition

Payment Plans and non-federal, campus-based loans.

• Telephone Consumer Protection Act changes – (permit ethical use of predictive dialers for collection on campus A/R and institutional loans)

• Bankruptcy (private loans/impact)• Liaise on VA/Military Issues

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What You Can Do Join COHEAO: costs very low for schools

Conference, webinar discounts offset duesAbility to help develop COHEAO positions,

advocacy, regulatory responsesTask Forces on Perkins, CFPB, Campus AR,

Financial Literacy – Other topics as needed

Weigh in: support the Perkins ProgramMessage: cost effective financing for students

and taxpayers over the long term; don’t squander it for short-term goals, even Pell Grants.

Help educate Congress—share your stories

Information on COHEAO activities, including position papers, available at www.coheao.org.