mdhe and state updates presented by: jim matchefts, assistant commissioner and general counsel leroy...
TRANSCRIPT
MDHE and State Updates
Presented by:
Jim Matchefts, Assistant Commissioner and General Counsel
Leroy Wade, Assistant Commissioner
Missouri Association of Student Financial Aid PersonnelMarch 9, 2007
Agenda: Missouri News and Updates
Loan program advisory committees Commissioner and staff updates Default Fee updates Default rates announced Missouri legislative updates State aid administrative rule changes The latest from the State SFA
Committee
Missouri Association of Student Financial Aid PersonnelMarch 9, 2007
Rumors and Myths Dispelled
Fact or fiction: “The MDHE <Jim coming up with something . . . .>”– Fiction!– Fact: The MDHE . . .
Missouri Association of Student Financial Aid PersonnelMarch 9, 2007
MDHE Staff Announcements
Dr. Robert Stein appointed commissioner effective December 16, 2006
Other new staff
Missouri Association of Student Financial Aid PersonnelMarch 9, 2007
Advisory Committee Recommendations
Two meetings conducted in January MDHE should:
– Remain Missouri focused, including a focus on state and local legislation and compliance issues
– Expand its training services while keeping training free
– Maintain and expand its focus on outreach and early awareness
Next meetings scheduled for June
Missouri Association of Student Financial Aid PersonnelMarch 9, 2007
MDHE Default Fee Subsidy Updates
About 94% of MDHE’s guarantees received an FDF subsidy to date– Lender code list:
http://www.dhe.mo.gov/defaultfeelist.shtml Close to $4 million has been added to
reserve fund, which is used to buy defaulted loans
Missouri Association of Student Financial Aid PersonnelMarch 9, 2007
FFY05 Draft Default Rates
Federal loan program participants received draft FFY05 CDRs in February– MDHE’s final 2004 CDR was 4.73% – Draft 2005 CDR is 4.26%
2004 national average 5.1% 2005 national average is estimated at 4.9%
2006 trigger rate: 2.18%
Missouri Association of Student Financial Aid PersonnelMarch 9, 2007
Missouri Legislative Updates
Missouri Senate Bill 389
Senator Gary Nodler of Joplin introduced on January 29
First public hearing January 31 Other updates
Missouri Association of Student Financial Aid PersonnelMarch 9, 2007
Bill Highlights
Access Missouri Financial Assistance Program & repeal of Gallagher and College Guarantee
State need-based aid may not exceed the COA
Uniform competencies for entry level courses in certain subject areas to ensure transfer credit
Higher Education Student Funding Act CBHE authority Lewis and Clark Discovery Initiative Other provisions
Missouri Association of Student Financial Aid PersonnelMarch 9, 2007
Rumors and Myths Dispelled
Fact or fiction: “The MDHE is requiring private/independent colleges and universities to pay an administrative fee in order to continue participating in the Missouri state aid programs.”– Fiction!– Fact: The MDHE has sent several
communications regarding Fast Track Implementation for the new grant program, if signed into law
Missouri Association of Student Financial Aid PersonnelMarch 9, 2007
Fast Track Implementation Updates
Implementation costs estimated at $207,000 Letter sent December 29 to Missouri
institutions’ presidents requesting contributions– Contributions would be refunded if implementation
supplemental appropriations are passed– Contributions are completely optional
Follow up email sent January 16, 2007 Tier Technology contracted on February 23 to
assist with FAMOUS changes
Missouri Association of Student Financial Aid PersonnelMarch 9, 2007
Other Missouri Legislation
H.B. 250 – would double Bright Flight from $2,000 to $4,000
S.B. 362 – would repeal Gallagher & College Guarantee, create a new need-based program, and double Bright Flight awards
S.B. 430 – would create the Smart Start Scholarship Program
H.B. 612 – would expand the Vietnam Veteran’s program
AppropriationsMissouri Association of Student Financial Aid PersonnelMarch 9, 2007
For Missouri Legislative Updates . . .
Visit the MDHE’s website weekly
Missouri Association of Student Financial Aid PersonnelMarch 9, 2007
MDHE Digest Articles
January 2007: Update on Fast Track Implementation of Proposed Single Need Based Program
February 2007: Missouri Senate Bill 389
March 2007 will also feature an update article– March issue should be available next week
Missouri Association of Student Financial Aid PersonnelMarch 9, 2007
MDHE E-Distribution Messages
Bright Flight funding status (2/22/2007) Technology changes affecting FAMOUS
(2/2/2007)– Microsoft Vista operating system– Extended daylight savings time hours
Higher education bill introduced (1/31/2007) 2006-07 Marguerite Ross Barnett funding
status (1/31/2007) State need-based aid packaging
(1/25/2007)
Missouri Association of Student Financial Aid PersonnelMarch 9, 2007
State Aid Administrative Rule Changes
Rumors and Myths Dispelled
Fact or fiction: “Although the Missouri state aid programs will now have a renewal criteria requiring a CGPA of 2.5, students will have a brief ‘grace period’ to allow time for them to bring up their grades, if necessary.”– Fact!– The new CGPA requirement will be
enforced for the 08-09 academic year
Missouri Association of Student Financial Aid PersonnelMarch 9, 2007
Administrative Rule Changes Requested
Changes published in the Missouri Register dated February 15, 2007– 2.5 CGPA renewal criteria for Bright Flight, Ross
Barnett, and Gallagher– Ross Barnett program enrollment status change
to include half-time and three-quarter time 30 day public comment period Changes expected to be effective July 30,
2007– New CGPA requirement will be enforced for
2008-09Missouri Association of Student Financial Aid PersonnelMarch 9, 2007
State Aid Student Communications
Bright Flight– Award letter (new recipients)– No PSI letter (no school choice listed)– Renewal letter
State Aid Programs Application Status Letter
These communications will include:– New 2.5 CGPA renewal criteria– July 31st FAFSA correction deadlineMissouri Association of Student Financial Aid Personnel
March 9, 2007
More State SFA Information
State Aid Totals 2006-07
As of Thursday, 3/1/2007– 21,110 students have received state aid
funds– $37.3 million disbursed
Missouri Association of Student Financial Aid PersonnelMarch 9, 2007
State SFA Committee (SSFAC)
Missouri Association of Student Financial Aid PersonnelMarch 9, 2007
Questions?
3515 Amazonas DriveJefferson City, MO 65109-5717(800) 473-6757(573) 751-3940Fax: (573) 751-6635www.dhe.mo.gov