Projected Changes for the 2010-2011 Academic Year

                                                "Simplifying the FAFSA is another significant action in our quest to keep a college degree within the reach of every person who aspires to higher education...." Department of Education Secretary Arne Duncan  (June 24, 2009)

 

 Guiding Principles Behind the Changes Proposed by the Department of Education

• Federal Student Aid Programs should target the neediest students.
• Families applying for aid need reliable information that allows them to understand how aid programs work .
• Families who submit information should be able to receive "real-time" results and feedback .
• The Department's applications should request pertinent information that is easily obtainable and verifiable .
• The Department's applications should only ask questions necessary to determine eligibility for aid and award levels.

Changes to the Free Application for Federal Student Aid("FAFSA")            

•  Since May 2009, the Department of Education has provided instant estimates of Pell Grant and student loan eligibility, rather than forcing applicants to wait weeks. Links  to the Department's "College Navigator" site provide information on  graduation rates and other college information.

• Available summer 2009, enhanced skip-logic used in the new web-based FAFSA will reduce user navigation for many applicants by more than half;
• Starting in January 2010, students applying for financial aid for the 2010 spring semester will be able to seamlessly retrieve their relevant tax information from the IRS for easy completion of the online FAFSA. The Department of Education and the IRS will be working together to examine the possibility of expanding this option to all students in the future. (The projected start date for the 2010-2011 academic year is July 2010).
  • Overview on how the data retrieval process will work
  • DRAFT COPY of the 2010-2011 FAFSA
  • DRAFT: 2010-2011 FAFSA on the web worksheet - NEW

The following are sample screens that families will see with this new process

 

• The Administration will also introduce legislation seeking statutory authority from Congress to eliminate financial information from the aid calculation formula that is not available from the Internal Revenue Service (IRS). This will remove 26 financial questions from the FAFSA form that have little impact on aid awards and can be difficult to complete. Only questions that rely upon information that applicants must already provide to the IRS would remain.

Presentations:

• Simplifying the Financial Aid Process (July 2009)
• Application Processing Systems Update (July 2009)

Other Resources

•  Press Release from the Department of Education
• Fact Sheet from the Department of Education
• Simplifying Student Financial Aid : The Case for an Easier, Faster, and More Accurate FAFSA (September 2009)
• Going to the Source: A Practical Way to Simplify the FAFSA from The Institute for College Access and Success
• January 16, 2009 Report to Congress

Changes to the Federal Stafford Student Loan Program

On April 24, 2009, President Obama addressed critics of his proposal  to make significant changes in the Federal Student Loan Programs.

Until the recent "credit crisis", participating lenders in the Federal Family Loan Program ("FFELP") offered better borrower benefits to our families. So, we have been utilizing that program instead of the Federal Direct Loan Program. We are certified to participate in the Federal Direct Student Loan Program. If the President's proposal is approved by Congress, it would be effective for the 2010-2011 academic year. If this proposal is passed by Congress, this means that students who are currently borrowing under the FFELP Program would have to complete a new Master Promissory Note before any additional loan funds could be disbursed on their behalf. We are working under the assumption that the proposal will be passed and have started work on a transition plan so that students will not be impacted by the change.

• Questions & Answers on the Transition to 100 Percent Direct Lending (from the Department of Education's website)
• Direct Loan versus the FFEL Program
• Comparison of alternative proposals
• Federal Direct Loan web site (general information for students and parents)

Changes to the Federal Perkins Loan Program

President Obama is also proposing significant changes to the Federal Perkins Loan Program.  The Project on Student Debt released Reasons and Recommendations for Retooling the Perkins Loan Proagram  on July 10,2009. This document seems to reflect the Administration's thoughts on this program.

Presentaions:

• Expanded Perkins Loan Program (July 2009)

Additional Consumer Disclosure Requirements

• Current Mandated Disclosures
• Projected New Disclosures

Presentations:

• New Consumer Disclosure Responsibilities of Institutions

Updated November 8, 2009