u.s. department of education federal update
DESCRIPTION
U.S. Department of Education Federal Update. David Bergeron Office of Postsecondary Education Dan Madzelan Office of Postsecondary Education Jeff Baker Federal Student Aid. Appropriations and Budget Submission. FY 2006 Program Budgets (dollars in thousands). - PowerPoint PPT PresentationTRANSCRIPT
1
U.S. Department of Education
Federal UpdateDavid BergeronDavid Bergeron
Office of Postsecondary EducationOffice of Postsecondary EducationDan MadzelanDan Madzelan
Office of Postsecondary EducationOffice of Postsecondary EducationJeff BakerJeff Baker
Federal Student AidFederal Student Aid
Appropriations andBudget Submission
FY 2006 Program Budgets(dollars in thousands)Award Year President's Final
2005-06 Request AppropriationPell Grant $ 12,364,997 $ 13,652,000 $ 13,045,230
(Max Award) $4,050 $4,150 $4,050 (Shortfall) $ - $ 4,300,821 $ 4,300,000
FSEOG $ 778,720 $ 778,720 $ 770,933 FWS $ 990,257 $ 990,257 $ 980,354 Perkins $ - $ - $ - (Cancellations) $ 66,132 $ - $ 65,471 LEAP $ 65,643 $ - $ 64,987 Math/Science $ 50,000
Program
FY 2007 Budget Request Appropriations
FY 2005 FY 2006 FY 2007*(AY 05-06) (AY 06-07) (AY 07-08)
Pell Grant $12,364,997,280 $13,045,230,000 $12,738,770,000 (Max Award) $4,050 $4,050 $4,050 FSEOG $ 778,720,000 $ 770,932,800 $ 770,932,800 FWS $ 990,257,056 $ 980,354,485 $ 980,354,485 Perkins $ 66,131,680 $ 65,470,363 $ - LEAP $ 65,643,000 $ 64,987,000 $ - Acad Comp& SMART $ - $ 790,000,000 $ 850,000,000
Program
* President's FY 2007 Budget Submission
FY 2007 Budget Request Aid AvailableFY 2006 FY 2007*
(AY 06-07) (AY 07-08)Pell Grant $ 12,745,900,000 $ 12,986,000,000 (Max Award) $4,050 $4,050 FSEOG $ 975,900,000 $ 975,900,000 FWS $ 1,172,000,000 $ 1,172,000,000 Perkins $ 1,135,000,000 $ 133,000,000 LEAP $ 165,000,000 $ - AC/SMART $ 790,000,000 $ 850,000,000 Loans $ 60,577,000,000 $ 66,082,000,000 TOTAL $ 77,560,800,000 $ 82,198,900,000
Program
* President's FY 2007 Budget Submission
FY 2007 Budget RequestFederal Pell Grant Program
Maximum award for 2007-2008 remains at $4,050
Year-round Pell Grants Eligibility limited to equivalent of 16
semesters Tuition sensitivity award rule eliminated
FY 2007 Budget RequestCampus-Based Programs
No changes for FSEOG and FWS programs
Perkins Loan Program No funding for FCC or for loan
cancellations. Repayment to ED for collections by
school from borrowers
FY 2007 Budget Request
FFEL and Direct LoansNo changes proposed for Loan Programs
– See Higher Education Reconciliation ActOther Programs
No funding requested for—– LEAP, GEAR UP, Upward Bound, Talent
Search, and Byrd Honors Scholarship
Higher Education Reconciliation Act of
2005(HERA)
Institutional and Program Eligibility
INSTITUTIONAL & PROGRAM ELIGIBILITY
Definition of academic year for clock hour programs 50% rule does not apply to telecommunications Programs of distance education must be specifically
accredited Short-term telecommunications programs are eligible Provision for programs using assessment to measure
progress
Loan Programs
FFEL and Direct Loans
• PLUS Eligibility to Graduate Students: Extends eligibility for PLUS Loans to graduate and professional students. – All eligibility criteria remain including credit
checks and no in-school status. However, student would be eligible for an in-school deferment.
– Student must file FAFSA – Effective for any loan certified or originated on or
after July 1, 2006
FFEL and Direct Loans
• Effective for loans certified or originated on or after July 1, 2007:
–Loan Limits in FFEL and Direct Loan: • Increases annual base loan limits for -
First year students from $2,625 to $3,500; Second year students from $3,500 to
$4,500• Aggregate loan limits are not increased.
FFEL and Direct Loans• Effective for loans certified or originated on or
after July 1, 2007:
–Increases annual additional unsubsidized for -- Graduate students to $12,000 Prep for Grad Program $7,000 Teacher Certification to $7,000
Aggregate loan limits are not increased.
FFEL and Direct Loans
• FFEL PLUS Loan Interest Rate:– Fixed interest rate for new loans made on or after
July 1, 2006 from 7.9 to 8.5 percent. – Direct PLUS loans will remain at a fixed rate of 7.9
percent. – Effective date is for loans first disbursed on or
after July 1, 2006.
NOTE: New Stafford Loan interest rates for new loans in both programs will be fixed at 6.8 percent.
FFEL and Direct LoansCONSOLIDATION LOANS
• Generally no re-consolidation– Applies within and across programs
• Eliminates In-School consolidations in Direct Loans and “early conversion to repayment” consolidations in FFEL
• Eliminates Joint Consolidations
Effective July 1, 2006
FFEL and Direct Loans (Perkins)
• Active Duty Military Deferment:– Provides for a military deferment of up to three
years for FFEL, Direct Loan, and Perkins Loans that were first disbursed on or after July 1, 2001. Includes definitions of “active duty”
– Effective: July 1, 2006
Cost of Attendance (COA)
Need Analysis and Packaging
COST OF ATTENDANCE
COA for less than half-time students may include room and board costs, at school’s option
COA may include, at school’s option, the one-time cost of obtaining the first professional license or certification
CALCULATION OF EFC - 2006-2007SIMPLIFIED NEEDS TEST AND AUTO ZERO
EFC Increases to $20,000 the threshold under which a
family would automatically have an EFC of zero Eliminates consideration of dependent student’s
tax return for both SNT and Auto-Zero EFC Tax return alternative if family received benefits
from a Federal means-tested program
CALCULATION OF EFC - 2006-2007 Treats all 529 Pre-Paid and Tuition Savings
Plans as assets of the owner, unless the owner is the dependent student
Excludes small-businesses from assets Adds active duty military to the criteria that
makes a student independent
CALCULATION OF EFC – 2007-2008
Income Protection AllowancesIncreases Income Protection Allowances.
Asset Assessment RatesDecreases Asset Assessment Rates
Student Eligibility
DRUG CONVICTION
• Provides that an applicant loses eligibility for Title IV aid only if the drug related offense for which he or she was convicted occurred while the student was receiving Title IV aid.
Return of Title IV Aid
RETURN OF TITLE IV AID (R2T4)
Excludes LEAP/SLEAP Specifies that scheduled clock hours are used
to determine earned aid Clarifies that multiple leaves of absence are
permitted Limits a grant overpayment due from a
student to the amount by which the original overpayment amount exceeds half of the total grant funds received by the student
RETURN OF TITLE IV AID (R2T4)
Requires institution to contact a student prior to making a late or post-withdrawal disbursement of loan funds
Requires institution to return funds no later than 45 days after the date that it determines the student has withdrawn
Provides that a student does not have to repay grant overpayments of $50 or less
29
ACG and National SMART Grants
30
Rules and Regulations Interim Final Regulations published on
July 3, 2006 Invitation to comment through August 17, 2006 for possible changes for 2007-2008
Negotiated Rulemaking to begin in fall for 2008-2009 and beyond.Watch for IFAP announcements
Both Programs
31
Authorization and Funding• Funding for these programs is not subject to
annual appropriations process: 2006-07 -- $790 million2007-08 -- $850 million2008-09 -- $920 million2009-10 -- $960 million2010-11 -- $1.01 billionIf funding insufficient, ratable reduction.No reduction for 2006-07Funds not spent in one year are carried over to
subsequent years.
Both Programs
32
Award AmountsACG – First Academic Year of student’s program of study
$750 Second Academic Year of student’s program of study
$1,300National SMART Grant – Third and fourth academic year of undergraduate
study $4,000 per year for each of 2 years Note: There will be second year ACG and both third and
fourth year National SMART Grants in 2006-07.
Both Programs
33
U.S. Citizen Federal Pell Grant recipient First or second year student in a
two or four year degree program Full-time enrollment No specific major required
Eligibility Requirements ACG
34
Eligibility Requirements 1st year students May not have been previously enrolled in a
program of undergraduate education Have completed secondary school
program of study after January 1, 2006 2nd year students Have completed secondary school
program of study after January 1, 2005 Have a 3.0 G.P.A. in an eligible program
ACG
35
Student must have completed a rigorous secondary school program of study
ED has outlined options to meet requirement in DCL GEN-06-08 and in the interim regulations
Eligibility Requirements
ACG
36
Options for Rigorous Program
1. State Designated Program State Submitted Program An advanced or honors secondary
school program established by a state and in existence for the 04-05 or 05-06 school year
State Scholars Initiative
ACG
37
Options for Rigorous Program
2. A set of courses as outlined in the Secretary’s May 2 letter to states.
3. Completion of at least two Advanced Placement courses with passing test score of 3 or two International Baccalaureate courses with passing test score of 4
ACG
38
Options for Rigorous Program
Courses Similar to State Scholars Initiative 4 years of English 3 years of math (Algebra I and above) 3 years of science (Bio, Chem, Physics) 3 years of social studies 1 year of a foreign language
ACG
39
Department notifies potentially eligible students of how to provide additional eligibility information.
Student provides additional information on website or calls toll-free number.
Department sends student responses to schools.
Applicant Self-Identification Process
ACG
40
Documenting Rigorous Program Institutions are responsible for determining
the eligibility of students who ED reported as having self-identified eligibility. On at least the standard(s) selected by
the student. Institutions are also able to identify eligible
students based on records they have (e.g., high school transcripts, test scores).
ACG
41
Documenting Rigorous Program Documentation from “cognizant authority”
can be provided by – The student Directly from “cognizant authority” Home schooled students, the parent or
guardian is the cognizant authority For transfer students, an institution may rely on
another school’s determination that student completed a rigorous program.
NSLDS will store the data
ACG
42
Grade Point Average For second academic year ACG, student must
have a GPA of at least 3.0 from the first academic year.
Only determined one time, prior to first disbursement of second academic year award.
Special rule for transfer student –For student who transfers after completing first academic year, the new school must calculate GPA using the grades from all coursework accepted from prior schools.
ACG
43
U.S. Citizen Pell Grant recipient for same payment
period Third or fourth year student in a four year
degree program Full-time enrollment in an eligible major Cumulative 3.0 GPA on a 4.0 scale in
student’s eligible program No rigorous high school program required
Eligibility Requirements
SMART Grant
44
Computer Science Engineering Technology Life Sciences
Mathematics Physical Sciences Designated
Foreign Languages
Identified by CIP* code in DCL GEN-06-06*Classification of Instructional Program
National SMART Major Fields of Study
Major Fields of Study
SMART Grant
45
No student self-identification as in ACG Institutions are responsible for reviewing
records to identify all eligible students – ISIR for Pell Eligibility, Citizenship, and
other Title IV eligibility requirements Academic Records for –
Eligible Major or, if available, intentGPAFulltime Enrollment
Eligibility DeterminationSMART Grant
46
Disbursements Funds maintained and disbursed
according to Title IV cash management rules.
Disbursements made on payment period basis.
If disbursement is for a cross-over payment period, Pell Grant and ACG/National SMART Grant must be assigned to same award year
Both Programs
47
Disbursements Student may not receive ACG or National
SMART concurrently from more than one school
ACG and National SMART must be received from same school from which Pell Grant is received
Both Programs
48
Need Based Grants Total of EFC and all estimated financial aid
cannot exceed cost of attendance ACG and National SMART may not replace
EFC in need equation May reduce other aid, including FSEOG, to
avoid an overaward. May reduce ACG/National SMART award to
avoid an overaward. Special treatment of VA benefits No overaward tolerance
Both Programs
49
Availability of Funds Initial authorizations in GAPS and COD with
Electronic Statements of Account (ESOA) on July 29, 2006. Not like campus-based. No institutional allocation, Like Pell or Direct Loans
First draw downs from GAPS available first week of August 2006
Schools will receive separate authorization for each program
Both Programs
50
Reporting of Awards and Payments
COD XML Common Record -- Student name Student SSN Student date of birth Student citizenship Student grade level Award amount Disbursement amount
Both Programs
51
Reporting of Awards and Payments For ACG – Eligibility Reason Code
State Designated Program: “01” Six-digit ‘program code’ found on
On flat file On FAA Access On list posted to IFAP
AP/IB: “02” List of Courses: “03”
For National SMART Grant Major/CIP code
Both Programs
52
Questions