Support Staff TrainingFederal Update at a

Glance

Cynthia MontalvoFelician College

Higher Education Initiatives Legislative Updates Sequestration Defense of Marriage Act FAFSA Parental Information FSA ID- PIN Replacement 2015-2016 Verification PLUS Loan Adverse Credit Counseling 150% Direct Subsidized Loan Limit &Enrollment

Reporting

Overview

President Obama has frequently said that his goal for the United States is to have the world’s highest proportion of college graduates by 2020.

The president’s goal has sparked a discussion about retention and graduation in the United States that is welcomed and overdue and, as a result, almost every institution in the country has started to give more attention to these issues.

Higher Education Initiatives

Paying for Performance

Tie financial aid to college performance, starting with publishing new college ratings before the 2015 school year.

Hold students and colleges receiving student aid responsible for making progress toward a degree.

First in the World by 2020: What Will It Take?

Promoting Innovation and Competition

Challenge colleges to offer students a greater range of affordable, high-quality options than they do today.

Give consumers clear, transparent information on college performance to help them make the decisions that work best for them.

First in the World by 2020: What Will It Take?

Ensuring that Student Debt Remains Affordable

Help ensure borrowers can afford their federal student loan debt by allowing all borrowers to cap their payments at 10 percent of their monthly income.

Reach out to struggling borrowers to ensure that they are aware of the flexible options available to help them to repay their debt.

First in the World by 2020: What Will It Take?

U.S. House education committee has been charged with rewriting the Higher Education Act (HEA), last rewritten in 2008.

While everyone seems to be in agreement with simplifying the complex federal financial aid system, the current proposals in the education committees of Congress to eliminate the SEOG and Perkins Loans programs in addition to other possible student aid cutbacks.

Perkins is operating currently on a one-year extension. This extension is set to expire on September 30, 2015.

Legislative Updates

Where are we now with the FAST Act proposal?

Two simple questions could eventually be the only thing standing between a student and thousands of dollars in federal financial aid.

The Financial Aid Simplification and Transparency (FAST) Act aims to simplify the entire financial aid process for the nearly 22 million students enrolled in U.S. colleges and universities.

The act would reduce the 100-question Free Application for Federal Student Aid (FAFSA) into just two questions that could fit on a postcard: “What’s your family size?” and “What was your household income two years ago?”

Legislative Updates

In June of 2013, The Education Department Announced that All Legal Same-Sex Marriages Will Be Recognized for Federal Financial Aid Purposes

The FAFSA was modified to Parent 1 and Parent 2

Defence of Marriage Act

Sequestration, sometimes called the sequester, is a process that automatically cuts the federal budget across most departments and agencies.

How is financial aid effected? Loan Fees:

Increase in origination fee every October 1st for student and parent loans.

Grants: Reduction in Teach Grants and Iraq-

Afghanistan Service Grant awards.

What is Sequestration?

Beginning with the 2014-2015, dependent students’ FAFSA must include income and other information about both of the student’s legal parents (biological, adoptive, or state designated) if the parents are living together, regardless of the parents’ marital status or gender.

FAFSA Parental Information

The FSA ID (username and password) will replace the PIN for students, parents, and borrowers.

FSA is adopting the best practice of using a username and password instead of personal information.

Starting in April 2015. All FSA Systems. New and Continuing Users.

FSA ID- PIN Replacement

2015-2016 VerificationNo Major Changes

2015-16 Verificationcont’d

Reminder: Identity/Statement of Educational Purpose Form must be completed in person or notarized for ID verification

2015-16 Verificationcont’d

2015-16 Verificationcont’d

2015-16 Verificationcont’d

2015-16 Verificationcont’d

PLUS Loan Adverse Credit

Parent Plus Loan Counseling: Parents initially denied for a PLUS Loan are

required to conduct loan counseling, if their PLUS Loan decision was reversed.

Implement by March 29th

Applies to both Parent PLUS and GRAD PLUS

What You Need To Know About 150% Direct Sub Loan Limits & Enrollment Reporting

The new 150% rules limit a first-time borrower’s eligibility for Direct Subsidized Loans to a period not to exceed 150 percent of the length of the borrower’s educational program.

What You Need To Know About 150% Direct Sub Loan Limits & Enrollment Reporting

Thank You

Questions?