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Jeff Baker U.S. Department of Education 2012 Software Developers Webinar #3

Policy Update. Jeff Baker U.S. Department of Education 2012 Software Developers Webinar #3. Topics. College Choice Tools Studentaid.gov Regulatory Activity Consolidated Appropriations Act Subsidized Loan Limitation President’s FY 13 Budget Verification. College Navigator Tool.

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Jeff Baker U.S. Department of Education 2012 Software Developers Webinar #3

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  1. Policy Update Jeff Baker U.S. Department of Education 2012 Software Developers Webinar #3

  2. Topics • College Choice Tools • Studentaid.gov • Regulatory Activity • Consolidated Appropriations Act • Subsidized Loan Limitation • President’s FY 13 Budget • Verification

  3. College Navigator Tool

  4. College Choice: ScoreCard

  5. Financial Aid Shopping Sheet Student Specific Information: Institutional Performance Metrics: <<-- Student Right-to-Know graduation rate at 150% of normal time <<-- Most recent cohort default rate <<-- Median debt for completers Elements of cost of attendance appropriate for the specific student - -- >> Grant aid (does not have to be repaid or earned) -- >> Net price after grants -- >> Aid awarded but earned thru work - -- >> School recommended loan amounts under Federal loan programs - - >> Contact information: General listing of other types of funding that can be used to meet net costs (including family contribution) - >> << --Where to go for more information Space for institution to send custom message -- >>

  6. studentaid.gov 6

  7. Federal Student Aid Websites

  8. Solution: StudentAid.gov

  9. FSA Social Media Twitter YouTube Facebook

  10. Regulatory Activity 10

  11. Pay As You Earn • Amend Income Contingent Repayment regs to – • Reduce from 15% of discretionary income to 10% • Reduce forgiveness time from 25 years to 20 years • Negotiated rulemaking required • Concluded in March • NPRM Published July 17 • Comments by August 16 • Expected effective date: • July 1, 2013 • Possible Early Implementation Fall 2012 11

  12. Consolidated Appropriations Act – 2012See DCL GEN-12-01 12

  13. Grace Period Interest Subsidy • Temporarily eliminates the interest subsidy on Direct Subsidized Loans during the six month grace period. • Applies to new Direct Stafford Loans for which the first disbursement is made on or after July 1, 2012, and before July 1, 2014. 13

  14. Ability-to-Benefit(ATB) • EliminatesTitle IV eligibility for students without ahigh school diploma (or equivalent). • Exception for • Home schooled students • Students who are or were, enrolled in a Title IV eligible program anytime prior to July 1, 2012, may continue to qualify under one of the ATB alternatives – 14

  15. Pell Duration of Eligibility • Establishes the duration of a student’s eligibility to receive Pell Grant to 12 semesters (or its equivalent). • Applies to all students effective with the 2012-13 award year. • Calculation includes all earlier years of the student’s receipt of Pell.  15

  16. Pell Duration of Eligibility • Scheduled Award – • Based on the statutory maximum award amount for the year and the student’s EFC (and COA) • Amount student would be eligible for if enrolled fulltime for a full academic year • 2013-2014 – Maximum Award is $5,550 • If EFC = 0, scheduled award is $5,550 • If EFC = 1,000, scheduled award is $4,550 • Annual Award – • Amount of scheduled award received by the student • Less than fulltime • Less than a full academic year 16

  17. Pell Grant Duration of Eligibility • Example – • Student’s Scheduled Award was $5,550, but only received $2,775 because only enrolled for one semester, will have used 50% of that award year’s scheduled award.  • Student who was enrolled three-quarter time for the entire award year would have used 75% of his scheduled award.

  18. Pell Duration of Eligibility • Calculate the equivalency by adding together each of the annual percentages of a student’s scheduled award that was actually disbursed to the student. • LEU – Lifetime Eligibility Used • The example student’s LEU is 125% of the total 600%. • Once LEU reaches 600%, student no longer eligible. • If LEU more than 500% but less than 600%, partial eligibility for next award year. 18

  19. Subsidized Loan Limitations 19

  20. Subsidized Loan Limitation • When a student has received subsidized loans for 150% of the published time of the academic program – • The student may not receive any additional subsidized loans, and • The subsidized loans received from July 1, 2013 on lose their subsidy • Applies to “new borrowers” on or after July 1, 2013. • Special calculation of 150% for transfer students

  21. Subsidized Loan Limitation • First instance could be as early as December 2013 because of short-term programs. • FSA will track, calculate, and inform. • Likely to be codes and comments on ISIRs • COD enforcement • Need to determine how to best collect program length information from schools for each subsidized loan recipients

  22. President’s FY 13 Budget 22

  23. FY 13 Budget • $5,635 maximum Pell Grant award for 2013-2014 • Maintain the subsidized loan interest rate for undergraduate students at 3.4 percent for undergraduates until July 1, 2013 • Limit the duration of the Stafford Loan in-school interest subsidy to 150 percent of the normal time required to complete the borrowers’ educational program. 23

  24. FY 13 Budget • Expand and improve the Perkins Loan program to provide $8.5 billion in loans annually. • Provide $150 million in new funds for the Work-Study Program. • Reform and expand Federal allocations in the campus-based programs 24

  25. Verification 25

  26. Annual FederalRegister notice— Items to verify Acceptable documentation 2013-2014 Federal Register Notice: July 12, 2012 DCL GEN-12-11, July 17, 2012 2013-14 Verification Items 26

  27. Same core FAFSA items as in 2012-2013 AGI Taxes Paid Four Untaxed Income Items Education Credits Number in Household Number in College SNAP Child Support paid 2013-14 Verification Items 27

  28. Two new verification items to combat fraud High School Completion Status Identify/Statement of Educational Purpose 2013-14 Verification Items 28

  29. Five Verification Tracking Groups V1 - Standard Verification Group Same core FAFSA items as in 2012-2013 V2 - SNAP Verification Group SNAP Only V3 - Child Support Paid Verification Group Child Support Paid Only 2013-14 Verification 29

  30. Five Verification Tracking Groups V4 - Custom Verification Group High School Completion Identity/Statement of Educational Purpose V5 - Aggregate Verification Group All items from Groups V1 and V4 2013-14 Verification 30

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