www.oasfaa.org 2013 high school advisor training federal and state update
TRANSCRIPT
www.oasfaa.org
2013 High School Advisor Training
Federal and State Update
www.oasfaa.org
About OASFAA & This Presentation
• OASFAA is a non-profit organization comprised of volunteer financial aid professionals.
• OASFAA has provided the information today as a free service to access staff and high school counselors.
• You have permission to copy and distribute these materials to your students and families. Charges may not be assessed for the material or for the information presented. Permission must be granted for other use of this information or these materials. Contact the OASFAA Outreach Chairperson(s) listed on the OASFAA website, or e-mail the OASFAA Outreach Committee at [email protected]
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“The Guide”
“The Guide” refers to The Guide to Federal Student Aid.• The Guide is available
free to download from www.fsapubs.gov.
• A hard copy can also be requested for free from the same website.
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• Parents and students have the primary responsibility for meeting college costs.
• The distribution of financial aid resources should be based on the family’s ability to pay—not willingness to pay.
• The assessment of a family’s ability to pay should be independent of the amount of financial aid available and cost of attending college.
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But before we get started…
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Definition of “Need”
Cost of Education (COA)
- Expected Family Contribution (EFC)
= Need
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Today’s Agenda
• Deadline and FAFSA Overview• Program Integrity Updates• Update on Federal Aid Programs• Update on State Aid Programs • Review of Resources for Counselors
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Deadline and FAFSA Overview
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Priority Deadlines
• Priority deadlines are very real, and should be treated as such!
• Schools may have a FAFSA deadline AND an admissions deadline-be aware of the difference.
Ohio’s Priority Deadline Survey features a list of all Ohio Schools and their FAFSA deadlines. This is published annually and available on the Counselor’s page at www.oasfaa.org.
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Priority Deadlines
• If a FAFSA priority deadline exists, it is best to use completed tax information via the IRS Data Match process.
• If taxes have not been completed, use estimated income and tax information.
• Make sure to update your FAFSA with IRS Data Retrieval once tax filing is complete.
Feb 4 is earliest that IRS will process tax returns. We anticipate more estimated tax returns.
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Federal PIN Homepage
• www.pin.ed.gov• Allows the student
and parent to establish a federal pin number, which is needed to electronically sign the FAFSA.
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FAFSA on the Web Homepage
• www.fafsa.ed.gov• Simplified options• An updateable
announcement section
• Access to FAFSA PDF and paper FAFSA information
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Need a little help completing the FAFSA?
• “Help” icon • Live online chat
• E-mail option
• 800-4-FED-AID
• College Goal Sunday
• http://www.youtube.com/watch?v=031zj-PqveU
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Detailed College Info and Comparison
• College’s website• School type• Tuition and fees• Net price average• Graduation rates• Retention rates• Transfer rates
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Higher Education Reconciliation Act of 2005 (HERA)College Cost Reduction and Access Act of 2007 (CCRAA)
• Increased income protection allowance for dependent students:• 11-12$5,250• 12-13$6,000• 13-14 $6,130• 14-15 $6,260
• Bust the myth!• A summer job won’t “count
against me!”14
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Who is considered a Parent when
completing the FAFSA?
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Changes for 2014-2015
Beginning with the 2014-2015 FAFSA, a dependent student will be required to include income and other information about both of the student’s legal parents (biological or adoptive) if the parents are living together, regardless of the parents’ marital status or gender.
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Changes for 2014-2015
• Until an April update occurs.• Because unmarried parents may be
of the opposite sex or of the same sex, when the response to the parents’ marital status question is “Unmarried and both parents living together,” follow-up questions will refer to the parents as “Parent 1 (father/mother)” and “Parent 2 (father/mother)” or simply “parents.”
• “Married” will result in “Father” and “Mother” though same sex married couples will still need to complete both as if “Parent 1” and “Parent 2” labels were in place.
• April update should normalize labeling as “Parent 1” and “Parent 2”
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Who is a Parent?
• Biological parents
• Adoptive parents
• Stepparents, if they are married to the student’s biological or adoptive parent and the student is included in their household size
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Who is NOT a Parent?
• Foster parents• Legal guardians who have not adopted the
student• Relatives who have not adopted the
student• Stepparents who have not adopted the
student and who would be the ONLY person providing parental information
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Comparison FY14 and FY15
Dependent Student’s Parents’ Household Comprised of
Data from 1 or 2 Parents
Collected?
Data from 1 or 2 Parents
Collected?
2013-2014 and Prior
2014-2015 and Forward
Single legal parent 1 Parent 1 Parent
Two legal parents who are husband and wife
2 Parents 2 Parents
Legal parent and stepparent 2 Parents 2 ParentsTwo legal parents who are unmarried and living together (regardless of gender), or who are of the same sex and are married, as recognized by a State or foreign country
1 Parent 2 Parents
Note: A stepparent is created through legal marriage (regardless of adoption) or, when legal marriage has not occurred, through formal adoption of an unmarried partner’s children.
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Who is a Parent?
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Who is a Parent?
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Program Integrity Updates
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Satisfactory Academic Progress (SAP) Policy
• What is Satisfactory Academic Progress (SAP)?• SAP refers to ensuring that a student
progresses toward the completion of a degree or certificate in a timely manner, as prescribed by the U.S. Department of Education (ED).
• ED is now requiring schools to have a SAP policy separate from an institution’s academic standards policy.
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Elements of SAP
• ED states that every school’s SAP policy must include three (3) elements:
• Grade Point Average, or GPA• 2.0 GPA or higher
• Completion Percent• 67% cumulative completion
percent
• Maximum timeframe for degree/certificate completion
• 150% of the program requirements.
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Consequences of Not Meeting SAP Elements
• Financial Aid Warning– A student will have one
semester of financial aid warning. Students will still be eligible for federal aid during the financial aid warning period, but must meet all SAP elements before the beginning of the upcoming semester.
– Schools are not required to extend a warning period if they only review SAP annually.26
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Consequences of Not Meeting SAP Elements
• Financial Aid Suspension– A student who fails to meet all
SAP elements by the end of the financial aid warning period will be subject to financial aid suspension.
– The student loses all federal aid, and potentially lose state and private aid, as well.
• Schools may have separate financial aid and academic policies. Both will apply to the students!
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SAP: Appealing Financial Aid Suspension
• Students who face financial aid suspension may have the ability to appeal the suspension.– Appeal avenues may
vary from school to school; please check with the individual Financial Aid Office to review their specific appeals process.
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Verification
• What is verification?• Financial aid verification
is the process of establishing the accuracy of the information submitted on the FAFSA.
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Verification
• Why was I selected for verification?– The Central Processor
(a.k.a. the U.S. Department of Education) selects applicants for verification based on statistical analysis.
– An institution may also require applicants verify FAFSA information
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Verification
• How does a student complete the verification process?– The best thing to do is to
read through any/all communication received from the institution, as it will guide you through the process.
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Verification
• Changes in the verification requirements.
• Other untaxed income and benefits
• Previous verification items are still in play!
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Verification
• Documentation of untaxed income and benefits
• Untaxed income information reported in Question 45 for the student and spouse and Question 94 for the dependent student’s parents
• If the verified income does not appear to provide sufficient financial support, the student or parents must explain how the family was supported during the 2013 calendar year
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Verification
• What documents are acceptable for financial information?• IRS Data Retrieval Tool
• http://www.youtube.com/watch?annotation_id=annotation_112011&feature=iv&src_vid=W47_YTRVYD4&v=QJYE4PTYRfs
• IRS Tax Return Transcript • Students need the Tax Return Transcript, NOT the Account
Transcript unless the Account Transcript includes all of the income and tax information required to be verified - adjusted gross income (AGI), U.S. income tax paid, Untaxed IRA Distributions, Untaxed Pensions, Education Credits, IRA Deductions and Tax Exempt Interest - is acceptable (e.g., an IRS Record of Account Transcript).
• http://youtube.com/watch?v=0wFNqs4Mqdg• www.irs.gov or 800-908-9946
• Can also be obtained in person if you have a local IRS office.
• W2’s for non-tax filers34
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• Challenges in using IRS Data Retrieval Tool• It is only available 1-2 weeks
after e-filing; 6-8 weeks when returns are mailed.
• Address must match EXACTLY as shown on return.
• Folks filing an amended return or who are married filing separately are not eligible.35
Verification
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Verification
• Documentation for Independent Students• Guardianship, ward of the court
• Must have copy of court document
• Homelessness• Homeless liaison, pastor, school counselor
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Special Circumstances
• Sometimes, things outside of the federal mold happen.
• Financial aid offices can make changes to a student’s FAFSA information based on special circumstances.
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Net Price Calculator
• Strengths• Designed to provide
accurate and timely information about the net price of a college.
• Can assist families in comparing colleges based on net price and financial aid.
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Net Price Calculator
• Weaknesses• Inclusion of direct and
indirect costs in “price of attendance” component can significantly inflate the price tag.
• Institution’s flexibility to customize template could make college costs comparisons an extremely complex process.
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Shopping Sheet
• Some schools will be using what’s referred to as a “Shopping Sheet.”
• Could replace or supplement their current award letter.
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Update on Federal Aid Programs
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Political Climate
• Two current climate drivers– Partisanship & Brinkmanship– Budget politics dictating policy
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Reauthorization
• The 1965 Higher Education Act governs the nation’s student-aid programs and federal aid to colleges. Part of President Johnson’s Great Society agenda of domestic programs, it must be reauthorized every five years. It’s up for renewal again in 2014, and lawmakers have begun holding hearings and soliciting input to inform the process.
• Many changes in student-aid policy are now being made outside of the reauthorization process, in spending bills and federal rules.– Reauthorization still significant and some in congress have
referenced putting off major higher education policy changes until Reauthorization occurs.
Source: The Chronicle, September 19, 2013 “What You Need to Know About Reauthorization”
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• Budget Control Act (BCA) of 2011 (August 2, 2011)• Sequestration enacted on March 1, 2013, when Super Committee failed to reach an
agreement
• Consolidated Appropriations Act (CAA) of 2012 (December 23, 2011)
• Moving Ahead for Progress in the 21st Century Act (MAP‐21) (July 6, 2012)
• Introduced 150% rule for Subsidized Stafford Loans
• American Taxpayer Relief Act (ATRA) of 2012 (January 2, 2013)
• Bipartisan Student Loan Certainty Act of 2013 (August 9, 2013)• Interest rates on Direct loans recalculated annually
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Recent Legislation
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Political Climate
• What’s the takeaway?• Student aid is caught up in a
much larger political dysfunction & ideological impasse.
• Reauthorization will coincide with the 2014 election year, so we can expect extra scrutiny will be given to student loans/debt as well as to the rising costs of education.
• Next showdown is in February as another debt ceiling looms.
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Federal Aid Programs, 2014-2015
TEACH
Pell Grant
Campus Based Programs
Direct Loans
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• Federal Loan Fees
• Subsidized and Unsubsidized loans with a first disbursement made on or after December 1, 2013 - loan fee increased to 1.072% from 1.051%.
Example: On a $5,500 loan, the fee would adjust from $57.80 to $58.96.
• PLUS loans with a first disbursement made on or after December 1, 2013 – loan fee increased to 4.288% from 4.204%.
Example: On a $10,000 loan, the fee would adjust from $420.40 to $428.80.
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Sequestration
www.oasfaa.org
TEACH, 2014-2015
Through Sequestration, TEACH Grants that were
first disbursed after 10/1/2013 have been reduced
by 7.2% from the award amount for which the student
would otherwise have been eligible to receive.
Grant of up to $4,000 per year to students
who intend to teach in a public or private
elementary or secondary school
that serves students from low-income families.
Service requirement upon graduation must be met,
or grant becomes an Unsubsidized Stafford Loan
that must be re-paid!!
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Federal Pell Grant, 2014-2015
• Maximum award amount increases slightly for 2014-2015• $5,785 maximum award for
full-time enrollment and an Expected Family Contribution (EFC) of zero.
• Maximum Expected Family Contribution (EFC) for Pell eligibility has been lowered to 4995 for 2013-2014. • It has not yet been established
for 2014-2015.
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Federal Pell Grant, 2014-2015
• Students now have a maximum number of terms they can receive Pell Grant• 600% of an annual
award amount • The equivalent of 12
full-time semesters
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Campus Based Programs, 2014-2015
We are anticipating a reduction in funding for 2014-2015. However, the decrease will vary
from school to school, and exact funding amounts have yet to be announced.
Federal Perkins
Loan
Federal Supplemental Education Opportunity
Grant (SEOG)
Federal Work Study
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Federal Work-Study
• Undergraduate or graduate students are eligible
• Employment can be on or off campus
• FWS wages are excluded from EFC calculation!!!
• Ohio Minimum Wage in 2014 is $7.95/hour
• There is a difference between work-study and “work” or “summer job” on an award letter
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Federal Supplemental Educational Opportunity Grant (FSEOG)
• Undergraduates with exceptional financial need.• Pell Eligible students with the lowest EFC
• Award ranges from $100 to $4000, depending on when student applies, financial need, and the funding and policies of school attending.
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• Direct Subsidized and Unsubsidized Loans are two separate, unique types of loans that are awarded separately.
* Interest rates recalculated annually and are effective July 1st based on the 10-year Treasury note index plus 2.05%, capped at 8.25%
Subsidized UnsubsidizedNeed based Not based on financial need
Interest is fixed at 3.86% for new undergraduate loans disbursed
during 2013-14*. Interest is subsidized while the student is in school and during deferment.
Interest is fixed at 3.86% for all new loans disbursed during 2013-14*. Interest accrues from time of disbursement
of the funds.
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Direct Loans, 2014-2015
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• Independent Students and Dependent Students whose parents have been denied the PLUS Loan are eligible for additional Unsubsidized Stafford Loans ($4,000 as Freshmen and Sophomores and $5,000 as Juniors and Seniors)
Class Year Base AmountAdditional
Unsubsidized Amount
Total Available to Borrow
Freshman $3,500 $2,000 $5,500Sophomore $4,500 $2,000 $6,500
Junior $5,500 $2,000 $7,500Senior $5,500 $2,000 $7,500
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Direct Loans, 2014-2015
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• Subsidized and Unsubsidized Loans• 1.072% origination fee*
• Parent and Graduate PLUS• 4.288% origination fee*
* Unless adjusted based on Sequestration
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Direct Loans, 2014-2015
www.oasfaa.org
FAFSAFollow
instructions at school attending
Entrance Counseling
MPNDisbursement
to student account
Notification of servicer (instruct
students to watch and save email/snail mail)
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Direct Loans, 2014-2015
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Pay As You Earn
• Available to new Direct loan borrowers (except Parent PLUS) experiencing financial hardship• No loan balance as of October 1, 2007, and • Received a Direct loan on or after October 1, 2011
• Borrower qualifies if annual monthly student loan payments exceed 10% of “discretionary income”
• Similar to IBR, borrower’s monthly payment will be determined by a formula that takes into account family size and adjusted gross income. Increases in income will impact the required monthly payment amount
• Unpaid balance may be forgiven after 20 years of qualifying repayment (which is a taxable event)
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Public Service Loan Forgiveness
• Under this program, borrowers may qualify for forgiveness of the remaining balance of their Direct Loans after they have made 120 qualifying payments on those loans while employed full time by certain public service employers.
• Only loans you received under the William D. Ford Federal Direct Loan (Direct Loan) Program are eligible for PSLF.
• There are many rules that must be followed.
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Direct Loans, 2014-2015
• Parent PLUS Loans• Loans to parents of dependent students.• Loan limits are up to the cost of education
less any financial aid received.• Interest rate is 6.41% fixed.* • Repayment begins within 60 days of full
disbursement. Payments may be deferred while the student is in school.
• FAFSA completion is required.* Interest rates recalculated annually and are effective July 1st based
on the 10-year Treasury note index plus 4.60%, capped at 10.50%60
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Undergraduate Student Aid by Source and Type (in Billions), 2012-13
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Update on State Aid Programs
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Ohio Aid Programs, 2013-2014
• Ohio College Opportunity Grant (OCOG)• War Orphans Scholarship• National Guard Scholarship• Academic Scholarship• Safety Officers Memorial• Nurse Education Assistance Loan Program
(NEALP)• Choose Ohio First
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Historical Look at Need-Based Ohio Aid
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Ohio College Opportunity Grant (OCOG)
• Students must file the FAFSA, be Ohio residents, and attend an Ohio public university main campuses (not regional campuses or community colleges), Ohio private, non-profit colleges or universities, and Ohio private, for-profit institutions.
• The Expected Family Contribution (EFC) is the index number for awarding OCOG
• EFC eligibility range is from 0000-2190• A part-time student will receive a pro-rated award• Available for continuous enrollment (including
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– From https://www.ohiohighered.org/ocog
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OCOG, 2013-2014
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• 2014-2015 is the second year of the new biennium budget.
• Although we are optimistic that awards will not change, we just don’t know.
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OCOG, 2014-2015
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War Orphans Scholarship, 2013-2014
• For Ohio dependents of deceased or majority disabled veterans.
• The current annual, full-time award is 93% of tuition and general fees at all Ohio public colleges and universities.
• The current annual, full-time award for students at eligible private colleges and universities (both non-profit and for-profit) is $6,628.
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Ohio National Guard Scholarship, 2013-2014
• Eligibility determined by the Ohio Adjutant General.
• The current annual, full-time award is 100% of tuition and general fees at all Ohio public colleges and universities.
• The current annual, full-time award for students at eligible private colleges and universities (both non-profit and for-profit) is $9,290.
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Safety Officers Memorial Scholarship, 2013-2014
• For Ohio dependents and spouses of safety officers killed in the line of duty.
• The current annual, full-time award is 100% of tuition and general fees at all Ohio public colleges and universities.
• The current annual, full-time award for students at eligible private colleges and universities (both non-profit and for-profit) is $6,618.
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NEALP, 2013-2014
Loans for RN candidates and graduate nurse faculty students
Loans can be forgiven with 4 to 5 years of service as a nurse
or nurse instructor in Ohio upon completion of
degree
Loans range from $1,500 to $5,000
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Choose Ohio First, 2013-2014
• Various programs with STEM concentrations
• State funding for these programs increased slightly for 2013-2014, but individual awards will vary from school-to-school.
• Partnerships of private/public schools apply for funding (ex. Public community college and private four-year institution).
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Ohio Education and Training Voucher Program
• www.statevoucher.org• Eligibility requirements
• In foster care on their 18th birthday and aged out at that time.
• Adopted from foster care with the adoption finalized after their 16th birthday
• Foster care case closed between the ages of 18 and 21.
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Review of Resources
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College Goal Sunday
• Sunday, February 9, 2014
• www.ohiocollegegoalsunday.org
• Student/Family registration is now available.
• Please check the website for locations near you.
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Request a Financial Aid Night Presenter
http://www.oasfaa.org/docs/toc_counselors.html
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Ohio School Counselor Resources “Binder”
http://www.oasfaa.org/docs/toc_counselors.html• “Ohio School Counselor Resource Binder Inserts”• UPDATES AVAILABLE JANUARY 2014
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Financial Aid Toolkit
• Consolidates and organizes FSA resources and content into a searchable online toolkit
• For organizations and individuals that interact with, support, or counsel students and families on funding a postsecondary education
• Targeted to high school guidance counselors and college access professionals
• FAAs may use toolkit to support student outreach efforts
• FAAs can also help spread the word about the toolkit to organizations that work with students and families
• Replaces FSA4counselors.ed.gov78
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Resources
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College Scorecard
http://www.whitehouse.gov/issues/education/higher-education/college-score-card81
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Resources
www.fsa4counselors.ed.gov
Watch for new Counselor Financial Aid Toolkit to be released in December 2013
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Resources
http://studentaid.ed.gov/about/data-center/student/application-volume/fafsa
-completion-high-school
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Resources
• Federal Student Aid Information Center (inside cover of “The Guide”)• (800)433-3243• www.federalstudentaid.ed.gov
• Federal Student Aid Publications Website• www.fsapubs.gov
• Ohio Higher Education Hotline• (800)233-6734
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Questions/Comments?
• Questions or Comments?• Please complete evaluations.• THANK YOU FOR ATTENDING!
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