Date post: | 06-May-2015 |
Category: |
Education |
Upload: | illinois-association-for-college-admissions-counseling |
View: | 996 times |
Download: | 0 times |
ISAC Update: State and Federal Financial Aid Issues
Presented by Sam Nelson and Sarah Wahab Ghazi
Honoring the past – Embracing the futureIACAC 2012 Conference
CollegeIllinois.org
“Making college accessible and affordable for Illinois students.”
‐Mission Statement
The Illinois Student Assistance Commission (ISAC) is the financial aid agency in the state of Illinois that administers scholarship, grant, and prepaid tuition programs.
• U.S. lags other countries in higher education completion
• Lifetime earnings are greater for those with more education
• Annual income increases with additional education
• Unemployment during recessions is worst for those with least education
• By 2018, 54% of Illinois jobs will require associate’s degree or more
• Currently, 41% of Illinois residents age 25‐64 have an associate’s degree or more
What We Know – Setting the Context
Percentage of Young-Adults (Age 25-34) with College Degrees
U.S. ranks 10th among industrial nations(39%)
11%
24%
52%
39%
0%10%20%30%40%50%60%
Lowest 2nd Lowest Top 3 Overall Average
Income Quintiles
% Of Students Who Complete Within 12 Years Of Graduating 8th Grade By Income Quintile
Students-in-Need Do Not Complete College
Source: Goldberger, Susan, “Doing the Math: What It Means to Double the Number of Low‐Income College Graduates,” Minding the Gap: Why Integrating High School with College Makes Sense and How to Do It, 2007.
Summary of the Problem
Source “The Illinois Public Agenda for College and Career Success.” Illinois Board of Higher Education, 2004, p4.
President Obama has set the goal:
“By 2020, America will once again have the highest proportion of college graduates in the world.”
February 24, 2009
Vice President Biden issues call to action to boost college graduation rates nationwide and releases College Completion Took Kit
March 22, 2011
National Goal
Help Illinois Increase to 60% the Proportion of Adults with a Postsecondary Credential by 2025
Specifically, Help Illinois Increase to at Least 45% the Postsecondary Completion Rate of Low‐Income Students
ISAC’s Big Goal
• Lumina’s “Big Goal”
• Gates Foundation Goal
• Complete College America
• Illinois P‐20 Council
• Illinois Public Agenda for College and Career Success
ISAC’s Goal Is Consistent with Major Foundation Goals
• Improve high school to college transition
• Support students in college or returning to college
• Help families pay for college
• Provide high quality, informed research
• Build external support to foster systemic change
• Align agency financial strategies and support services with program goals
ISAC Can Help Illinois Meet College Attainment Goal
• Statewide college access and success conference
• July 12, 2012 – save the date
• Tinley Park Holiday Inn/Convention Center
• More details and registration information to come
College Changes Everything Conference
• Continue to encourage students to complete the FAFSA
• 2012 ‐ 13 Suspension date for MAP ‐March 20, 2012
• 2012 ‐ 13 MAP appropriation ~$387 million (Governor’s proposed budget)
• 2012 ‐ 13 MAP awards determined after state budget is approved
*Every dollar allocated to ISAC from state funds goes t t d t i th f f t id
FAFSA Completion and MAP Update
• MAP 2+2
• Illinois DREAM Commission
• College Illinois Prepaid Tuition Program
State Legislative Update
ISACorps
Funded by U.S. Department of Education
Federal College Access Challenge Grant
39 community college districtsMore than 80 “near peer” mentorsUp to 2 in each community college districtFrom a wide variety of backgrounds and experiences
• During the 2010‐11 school year, Corps members, with your help, reached about 156,000 people, provided one‐on‐one assistance to almost 12,000 students, and had on‐going mentoring relationships with almost 8,000 students.
• Between January and March of this year ISAC staff and Corps members conducted 651 FAFSA completion workshops assisting just under 10,000 students and their families.
• The Corps will also be key to administering the Illinois College Planning Act. This program provides early college planning for students from families without prior college experience. Through the plan they can receive ongoing structured college planning assistance beginning in 8th grade and continuing through and including postsecondary enrollment.
The Corps in Action
Consolidated Appropriations Act – 2012
See DCL GEN-12-01
2012-2013 Pell Grant Amounts
• 2012‐2013 Pell maximum award ‐ $5,550
• 2012‐2013 Pell minimum award ‐ $550
• Maximum Pell eligible EFC is 4995
• Was 5273 in 11‐12
Auto-Zero EFC Income Threshold
• Reduces the income threshold for an automatic zero expected family contribution (EFC) from $30,000 to $23,000
• For the 2012‐2013 award year was scheduled to be $32,000
• FAFSA on the Web and the Central Processing System (CPS) have been updated, and both began 2012‐2013 FAFSA processing using $23,000 as the auto‐zero EFC threshold
Ability-to-Benefit (ATB)
• Eliminates Title IV eligibility for students without ahigh school diploma (or equivalent)• Exceptions for
• Home schooled students• Students who were enrolled in a Title IV
eligible program of study prior to July 1, 2012
Ability-to-Benefit (ATB)
• 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 –• Passing an independently administered,
approved ATB test• Successfully completing at least six credit hours
or 225 clock hours
Pell Grant Duration of Eligibility
• Reduces the duration of a student’s eligibility to receive Pell Grant from 18 semesters (or its equivalent) 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
Pell Grant 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• Once LEU reaches 600%, student no longer
eligible• If LEU more than 500% but less than 600%,
partial eligibility for next award year
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
First disbursement of a loan: Interest rate on the
unpaid balance Made on or after And made before
July 1, 2008 July 1, 2009 6.0 percent
July 1, 2009 July 1, 2010 5.6 percent
July 1, 2010 July 1, 2011 4.5 percent
July 1, 2011 July 1, 2012 3.4 percent
CCRAA of 2007 Interest Rate Reductions
• Will sunset on June 30, 2012
• All Stafford Loans, grad and undergrad, sub and unsub, first disbursed on July 1, 2012 or later
• WILL HAVE INTEREST RATE OF 6.8%
• 6.8% WAS THE PRE‐CCRAA RATE
• Requires change in law to prevent automatic increase
CCRAA of 2007 Interest Rate Reductions
President’s FY 13 Proposed 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
FY 13 Proposed 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
FY 13 Proposed Budget
Verification
Federal Student Aid (FSA) will give notice of data elements that must be verified. Items will be listed on the Student Aid Report. In addition, a school can choose to verify any other application items, requiring any necessary documentation, in accordance with consistently applied institutional policies.
Which elements must be verified? Required Verification Items
1. Household Size
2. Number Enrolled in College
3. Food Stamps (SNAP)
4. Child Support paid
5. U.S. Income Tax paid/Certain Untaxed Income & Benefits
6. Non‐tax Filers Income From Work
A school is not required to use ED’s verification worksheets. It may use its own or none at all.
Verification Worksheet
Acceptable Documentation
Household Size• Signed statement• Name & age of each household member
• Relationship to applicant
Household Size• Signed statement• Name & age of each household member
• Relationship to applicant
Number Enrolled in College• Signed statement• Name, age of students, applicable institutions
• Institutional statement• Only if reason to believe household members attending elsewhere
• Not needed if number in college is one
Number Enrolled in College• Signed statement• Name, age of students, applicable institutions
• Institutional statement• Only if reason to believe household members attending elsewhere
• Not needed if number in college is one
Food Stamps (SNAP)• Documentation deemed sufficient by the institution • Ex: documentation from providing agency
Food Stamps (SNAP)• Documentation deemed sufficient by the institution • Ex: documentation from providing agency
Acceptable Documentation
Child Support paid• Signed statement• Child’s name, amount and recipient’s name
• Inaccurate information: • Decree/custody order• Copies of child support checks or receipts
• Statement from support recipient
Child Support paid• Signed statement• Child’s name, amount and recipient’s name
• Inaccurate information: • Decree/custody order• Copies of child support checks or receipts
• Statement from support recipient
U.S. Income Tax paid• IRS Data Retrieval • Tax return transcript• W‐2s• Dependent status: parents’ W‐2s
• Independent status: student’s W‐2
• Extension filers• Copy of IRS Form 4868
• Amendments• Tax account transcript
U.S. Income Tax paid• IRS Data Retrieval • Tax return transcript• W‐2s• Dependent status: parents’ W‐2s
• Independent status: student’s W‐2
• Extension filers• Copy of IRS Form 4868
• Amendments• Tax account transcript
Non Tax‐Filers• W‐2s• Signed statement certifying:‐ Individual has not filed and not required to file‐ Sources and amounts of income earned from work as reported on the FAFSA
Non Tax‐Filers• W‐2s• Signed statement certifying:‐ Individual has not filed and not required to file‐ Sources and amounts of income earned from work as reported on the FAFSA
Update as of April 16th, 2012:
In the limited set of cases where an aid applicant, who has filed a tax return and attempted unsuccessfully to use the IRS Data Retrieval Tool or to obtain IRS Tax Return transcripts, needs a timely alternative for meeting the 2012‐2013 verification requirements, institutions may, until July 15, 2012, use a signed copy of the relevant 2011 IRS Tax Return as acceptable verification documentation for the 2012‐13 award year.
(GEN‐12‐07)
Acceptable Documentation for Verification
A school has an internal system to identify conflicting information that may affect a student’s eligibility – regardless of the source and regardless of whether a student is selected for verification.
A school must resolve all conflicting information before disbursing FSA funds, except when a student dies.
Conflicting Information
Other Offices Subsequent ISIRs Discrepant Tax Data
EXAMPLES: Missing high school diploma; Academic Progress; Enrollment Status; etc…
Required to review subsequent transactions for a student for the entire processing year, even if verification has been conducted in an earlier transaction.
Obligated to know: (1) who is required to file(2) the correct filing status(3) limits on who can be
claimed as an exemption
IRS Data Retrieval Tool
An IRS Tax Return Transcript is a typed copy of what was entered on an applicant’s original federal tax return. Most line items should be reflected –including IRS calculations and the final determination of the amount on each line item.
An IRS Tax Account Transcript shows basic information from an applicant’s federal tax return including his or her marital status, return type, AGI, and taxable income. The IRS Tax Account Transcript also reflects any changes made after the initial filing of the tax return, including changes made by the IRS or the applicant, such as the filing of an amended tax return.
Applicants should receive the transcript within 5 to 10 calendar days after their request has been received.
Both are free and can be requested online, via telephone or by mail.
IRS Tax Return Transcript & IRS Tax Account Transcript
Requesting an IRS Tax Return Transcript or IRS Tax Account Transcript Tax filers can request either a 2011 tax return transcript or a tax account transcript from the IRS in one of three ways:
Online Request• Available on the IRS Web site
at www.irs.govTelephone Request • Available from the IRS by
calling 1‐800‐908‐9946
Paper Request
• Download IRS Form 4506T at http://www.irs.gov/pub/irs‐pdf/f4506t.pdf
• Mailed or faxed to:• RAIVS Team Stop 37106
Fresno, CA 93888• (559) 456‐5876
* Please note that tax transcripts are not the same as copies of tax returns.
• Notifies you when new information and/or announcements are added to College Illinois
• Summaries of new information, along with links, will be sent to your e‐mail
ISAC’s e‐Messaging ServiceStay Connected
Get Printed Materials• ISAC Printed Materials – www.collegeillinois.org
• FSA Publications Ordering System (FSAPubs) – www.FSAPubs.org
Making college accessible and affordable for Illinois students.‐ ISAC’s Mission Statement
Deerfield1755 Lake Cook RoadDeerfield, IL 60015‐5209
Springfield500 W. Monroe, 3rd FloorSpringfield, IL 62701‐1876
ChicagoJames R. Thompson Center100 W. Randolph, Suite 3‐200Chicago, IL 60601‐3219
800.899.ISAC (4722)
www.collegeillinois.org .................................................. College IllinoisThe official Web site of the Illinois Student Assistance Commission (ISAC)
ISAC's Big Goal: Increase the proportion of Illinois adults with a postsecondary credential to 60 percent by 2025