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(2015)National Student Aid Profile: Overview of 2015 Federal Progr
Transcript of (2015)National Student Aid Profile: Overview of 2015 Federal Progr
Overview of 2015 Federal Programs
Justin Draeger, President
NASFAA Policy Team
Megan McClean, Managing Director of Policy and Federal Relations
Joan Berkes, Senior Policy Analyst
Karen McCarthy, Senior Policy Analyst
Charlotte Etier, Senior Research Analyst
Mandy Sponholtz, Policy Analyst
Stephen Payne, Federal Relations Associate
Angel Flores, Dallas Martin Endowment Policy Intern
Morrill Act of 1862: Land grants to fund state colleges
"G.I. Bill" - Servicemen's Readjustment Act of 1944
Educating & retraining returning servicemen
Federal Perkins Loan Program: Sputnik '57 & National Defense Education Act '58
Federal Work Study Program
Economic Opportunity Act of 1964
Higher Education Act, created
(Educational Opportunity Grant - EOG)/Federal Family Educaton Loan
Higher Education Today
Quick Facts and Figures
The Bottom Line
Students rely more on federal financial aid to attend college than ever before.
The upcoming reauthorization of the Higher Education Act (HEA) also heightens the interest in the federal student aid programs, with many examining the current programs and discussing proposals to make them more effective and efficient.
FAFSA made simpler!
Internal Revenue Service (IRS)
Data Retrieval Tool (DRT)
The DRT process enables students and parents to transfer tax return information from the IRS website directly to the online FAFSA application. IRS DRT also is available for corrections.
Federal Pell Grant
The Federal Pell Grant Program is the “foundational” federal student aid program. The program provides grants to financially needy undergraduate students who have not yet earned their first bachelor’s degree to help pay the costs of attending postsecondary institutions.
The maximum award for 2014-2015 was $5,730. The maximum award for 2015-2016 is $5,775.
Provides low-interest loans to financially needy undergraduate students
Interest on the loans is paid by the government while borrowers are in school, in the grace period, and during deferment
Direct Subsidized Loans
Direct Unsubsidized Loans
Direct PLUS Loans
Provides loans to (1) the parents of dependent undergraduates, as defined by HEA, and (2) graduate and professional students.
Borrowers may obtain loans up to the full amount of the cost of attendance, minus any aid students receive from other sources.
Loans are provided regardless of income, but borrowers must not have an adverse credit history. Borrowers with adverse credit histories can obtain a loan if they provide an endorser.
Expected Family Contribution (EFC)
Upon submission of the FAFSA, the Department of Education calculates a number, or EFC, based on the income, demographic, and asset information provided. The EFC is one factor in determining a student's eligibility for both federal and institutional aid.
Cost of Attendance (COA)
The cost of attendance is a budget designed to give the student a general estimate of the expenses associated with attending an institution for a given period, usually an academic year.
The COA is comprised of:
tuition and fees
estimated living expenses
Determining Financial Need
Cost of Attendance
Expected Family Contribution
What happens if the EFC or COA inaccurately represents a student's current financial situation?
Institutions, more specifically Financial Aid Administrators, have the authority to modify one or more of the components that factor into eligibility for federal student aid through exercising professional judgment.
The two most common examples of exercising professional judgment:
adjusting the COA
adjusting the FAFSA data elements to match current financial circumstances, which may affect the EFC
Determining a student's dependency status
For financial aid purposes, a student is either classified as a Dependent or Independent Student
Review the following questions and answer 'yes' or 'no' to determine your financial aid dependency status for the 2015-16 award year
What if I answered Yes to one or more of the questions above?
For federal student aid purposes, you’re considered to be an independent student and will not provide information about your parents on the FAFSA.
What if I answered No to every question?
For federal student aid purposes, you’re considered to be a dependent student, and you must provide information about your parents on the FAFSA.
What we offer: For the policy community:
The National Association of Student Financial Aid Administrators provides professional development for financial aid administrators; advocates for public policies that increase student access and success; serves as a forum on student financial aid issues, and is committed to diversity throughout all activities.
Higher Education Amendments
Basic Educational Opportunity Grant Program
Parent loans for undergraduate students
BEOG Renamed after Senator Clairborne Pell
Higher Education Amendments created Direct Loan Program
The number of students applying for federal financial assistance rose from 19.4 million in 2007-2008 to 31.4 million in 2011-2012, a 62% increase in just five years!
The application for all Title IV programs is the Free Application for Federal Student Aid (FAFSA)
FAFSA data is used to:
1) Compute the expected family contribution (EFC)
2) Confirm certain student eligibility criteria via database matches with federal agencies
FAFSA is available in several formats: online, over the phone, on paper, or a Financial Aid Administrator accessing CPS
Soon after submission of your FAFSA, an EFC will also be calculated given the information you provided
After Filing the FAFSA
Financial aid office serves as the first point of contact after the student files a FAFSA.
Students receive a Student Aid Report that summarizes FAFSA data and provides preliminary aid amounts.
FAFSA data also sent to the school and the financial aid office determines the student’s aid eligibility using established rules and regulations.
Number and Distribution of Pell Grant Recipients by Family Income Level, Award Year 2012-2013
If Congress does not enact legislation by September 30, 2015, the Perkins Loan Program will expire. The current statute allows for limited "grandfathering" so some current Perkins Loans recipients may continue to receive additional loans after September 30, 2015.
Loans are provided regardless of borrowers’ income or financial need, as long as total aid does not exceed cost of attendance
Student is financially responsible for the interest on the loan which begins accruing from the date disbursed
Undergraduates Who Received Federal Unsubsidized Direct Loans by Family Income Level, Award Year 2011-2012
Undergraduates Who Received Federal Subsidized Direct Loans by Family Income Level, Award Year 2011-2012
Undergraduates Whose Parents Received Federal PLUS Loans by Family Income Level, Award Year 2011-2012
Graduate/Professional Students Who Received Federal PLUS Loans by Family Income Level, Award Year 2011-2012
Were you born before Jan. 1, 1992?
At the beginning of the 2015–16 school year, will you be working on a master’s or doctorate program (such as an M.A., M.B.A., M.D., J.D., Ph.D., Ed.D., graduate certificate, etc.)?
Are you currently serving on active duty in the U.S. armed forces for purposes other than training? (If you are a National Guard or Reserves enlistee, are you on active duty for other than state or training purposes?)
Are you a veteran of the U.S. armed forces?
Do you now have—or will you have—children who will receive more than half of their support from you between July 1, 2015, and June 30, 2016?
Do you have dependents (other than your children or spouse) who live with you and who receive more than half of their support from you, now and through June 30, 2016?
At any time since you turned age 13, were both your parents deceased, were you in foster care, or were you a dependent or ward of the court?
Has it been determined by a court in your state of legal residence that you are an emancipated minor or that you are in a legal guardianship?
At any time on or after July 1, 2014, were you determined to be an unaccompanied youth who was homeless or were self-supporting and at risk of being homeless, as determined by (a) your high school or district homeless liaison, (b) the director of an emergency shelter or transitional housing program funded by the U.S. Department of Housing and Urban Development, or (c) the director of a runaway or homeless youth basic center or transitional living program?
As of today, are you married? (Also answer “Yes” if you are separated but not divorced.)
Fiscal Year 2015 Budget and Appropriations Update
Each year, Congress must go through the process of determining funding levels for most of the federal student aid programs. Fiscal year (FY) 2015 funding for the 2015-2016 award year was finalized by Congress in December 2014
Since enactment of the HEA in 1965, federal financial aid has been a central and critical pathway for college access. While these financial aid programs may have changed over time, the general principles of each program have stayed the same.
Four in 10 undergraduate students are 25 years or older, a 4 percentage point increase from 2008.
Fifty-nine percent of community college students attended part-time; whereas, only 27 percent of undergraduate students attending public four-year institutions attended part-time.
Between 2008 and 2012, the proportion of college students who had low incomes rose dramatically, from 40 percent of undergraduate students with incomes under 200 percent of the Federal Poverty Level (FPL).
A little over a quarter of students are parents.
Nearly a third of all undergrad-uates work 35 hours or more per week.
Ethical Principles & Code of Conduct
Policies and Procedures Tools
Journal of Student Financial Aid
Testimony on current issues
Journal of Student Financial Aid
The Direct Loan Program is an umbrella for three loans:
Direct Subsidized Loans
Direct Unsubsidized Loans
2013-2014 Federal Student Aid Program Volume
FSEOG FWS Perkins
Federal government pays at least 75% of wages with remaining percentage coming from school or off-campus employer
Provides grants to financially needy undergraduates at postsecondary institutions
Provides low-interest loans to financially needy undergraduate, graduate, and professional students
FWS employers can be: the school, a private non-profit organization, a private for-profit organization, a federal, state or local public agency
Interest does not begin to accrue until borrowers enter repayment, which may be deferred for approved reasons
Undergraduate students may borrow up to $5,500 annually, while Graduate/ professional students may borrow up to $8,000 annually
Average FWS award for dependent undergraduates for the 2012-2013 award year was $1,539
Institutions must match their federal allocations with non-federal resources; the minimum FSEOG award is $100, and the maximum is $4,000
Direct PLUS Loans