mdhe and state updates

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

Commissioner and staff updates Loan program advisory committees Default Fee updates Default rates announced Missouri legislative updates State aid administrative rule changes The latest from the State SFA

Committee


MDHE Staff Announcements

Dr. Robert Stein appointed commissioner effective December 16, 2006

Other staff at MASFAP for the first time MDHE staff contribution to MASFAP

scholarship fund


Rumors and Myths Dispelled

Fact or fiction: “The MDHE doesn’t offer training and speaker services other than its once a year fall workshops.”– Fiction!– Fact: The MDHE offers speakers bureau

services and customized training upon request on a variety of subjects.

– . . . AND, it’s free!


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


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


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 Legislative Updates

Missouri Senate Bill 389

Senator Gary Nodler of Joplin introduced on January 29

First public hearing January 31 Voted “do pass” by Senate Higher

Education Committee February 7 Currently on Senate Informal Calendar


Bill Highlights

Access Missouri Financial Assistance Program; repeal of Gallagher and College Guarantee

State need-based aid may not exceed the COA Transfer of credit for entry level courses in certain

subject areas Higher Education Student Funding Act Expansion of CBHE authority Lewis and Clark Discovery Initiative Approval of out-of-state public institutions Joint Committee on Education Public Higher Education Accountability



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


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

appropriation is passed– Contributions are completely optional

Follow up emails sent January 16 and March 5

Tier Technology contracted on February 23 to assist with FAMOUS changes


Other Missouri Legislation

H.B. 250 – would double Bright Flight from $2,000 to $4,000

S.B. 362 – would create a new need-based program, repeal Gallagher & College Guarantee, 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

Higher education appropriations


For Missouri Legislative Updates . . .

Visit the MDHE’s website weekly


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


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)


State Aid Administrative Rule Changes


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

implemented for the 08-09 academic year


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 implemented 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


State SFA Committee (SSFAC)

Fast Track Implementation issues Rule development for and

implementation of Access Missouri Merit-based student financial

assistance


Questions?

3515 Amazonas DriveJefferson City, MO 65109-5717(800) 473-6757(573) 751-3940Fax: (573) 751-6635www.dhe.mo.gov

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