NASFAA News RSS

Countdown to San Antonio: Interest Session Handouts Posted To Web Site
Several NASFAA Conference interest session handouts, including presentations from the U.S. Department of Education, have been posted to the NASFAA Web site. We will update the list of presentation handouts as we receive additional handouts from presenters. Conference session presenters are encouraged to submit handouts in PDF or Power Point format to web@nasfaa.org. NASFAA will post presentation material as we receive it.

New Federal Resources for Student Loan Repayment
Tomorrow, July 1, marks the first day of major changes to the student loan interest rates and repayment terms. The Department of Education has expanded its Student Aid on the Web site for students to include a chart of FFEL and Direct Loan Interest Rates Effective July 1, 2009. It has also posted an Income Based Repayment page that includes the IBR eligibility requirements, the benefits of IBR, an IBR payment calculator, and some examples of how a borrower's monthly student loan payment amount can be reduced under IBR.

LearnStudentAid Goes on Summer Hiatus
NASFAA's online learning program, LearnStudentAid is taking a summer break to upgrade the course learning management system and to update its courses for the 2009-10 award year. The program will be back up and running on Sept. 1 with fall course offerings.

Graduating Without a Job: NASFAA on ABC News
In a story that aired June 24, 2009, ABC News explored how the recession is affecting this summer's college graduates. "Job opportunities are scarce," reports ABC News. "When these graduates do secure employment, the recession will likely depress their earning power. Still, financial aid experts insist student loans are a good investment."

HEA Technical Corrections Bill Adopts Provisions Advocated by NASFAA
The HEOA Technical Corrections Bill (H.R.1777) passed by the House and Senate on Tuesday and expected to be signed into law by the President includes several provisions advocated by NASFAA. Most notably the bill doesn't make the Department's proposed changes to the "Master Calendar" requirements, excludes EFC from information that must be given to students for the self-certification form, moves the date that VA benefits are excluded from estimated financial assistance up to July 1, 2009, allows lenders and guaranty agencies to provide entrance counseling, expands the Departments loan purchasing authority to allow it to buy rehabilitated loans, and extends the operation of experimental sites that have not been deemed "successful" to June 30, 2010.

Defense Department Releases GI Bill Transferability Policy
The Defense Department announced yesterday its policy for transferring educational benefits to the spouses and children of service members under the Post 9/11 GI Bill, which takes effect Aug. 1, 2009. Career service members on active duty or in the selected reserve on Aug. 1, 2009, and who are eligible for the Post-9/11 GI Bill may be entitled to transfer all or a portion of their education entitlement to one or more family members. The guidance just released refers to the transferability of benefits provisions in the original Post-9/11 GI Bill. The 2009 Supplemental Appropriations bill, which is now awaiting signature by President Obama, extends transferability further, allowing children to use Post-9/11 GI Bill benefits that could have been transferred to them if their military parent had lived.

Dept of Ed. and IRS Announce Joint Venture to Populate FAFSA with Tax Data
As widely expected and reported yesterday, Secretary of Education Arne Duncan announced improvements to the FAFSA, beginning this summer, and a planned future partnership with the IRS that could radically change the application process for students and relieve students and schools of the verification process. In a White House press briefing, IRS Commissioner Douglas Shulman said his agency was glad to partner with the Department of Education to be part of the President's initiative to simply the FAFSA. Secretary Duncan thanked the IRS for its cooperation in studying the feasibility of the project, which many doubted could happen, and Treasury Secretary Timothy Geithner for asking the IRS to make it a priority.

House and Senate Pass HEA Technical Amendments Bill
The House unanimously approved legislation (H.R. 1777) yesterday that makes technical amendments to the Higher Education Act. The House approval came after the Senate unanimously approved the bill earlier in the day. The House and Senate's action clear the bill to be signed into law by President Obama. The text of the bill is not yet available, but NASFAA expects to publish additional details about the bill in tomorrow's Today's News as the text becomes available.

NASFAA Seeks Regulatory Relief and Changes in NegReg Comments
NASFAA President and CEO Dr. Phil Day submitted comments to the Department of Education yesterday on topics for upcoming sessions of negotiated rulemaking. Day cautioned the Department to regulate only where necessary to ensure understanding of and compliance with the law and the integrity of the student aid programs. Day also asked the Department to proceed with an eye towards minimizing the diversion of institutional resources to fulfill meaningless requirements instead of better serving students.

Confused about Veteran's Education Benefits? Come to the NASFAA Conference!
With more veterans returning to school, and additional students considering entering military service, you need to arm yourself with the kind of information they need to make good choices, as well as the information needed to ensure a smooth flow of information among offices at your school. This year, the NASFAA Conference will feature three interest sessions specifically targeting VA education benefits. In advance of her 2009 NASFAA Conference interest sessions on this topic Lynn Nelson, deputy director of Education Service at the U.S. Department of Veterans Affairs, agreed to address a few questions for Today's News to help readers understand some of the issues that surround this source of financial assistance.

Last Day for Members to Save with NASFAA Conference Early Bird Discount
NASFAA has extended the preconference registration deadline to 11:59 p.m. EDT today. Register by tonight to receive the early bird member rate of $525. On June 25, the registration fee will increase to $625. This special extension of the deadline is available to NASFAA members only. The 2009 NASFAA Conference will exceed your expectations! San Antonio is the place to be July 12-15. Don't miss out.

Deputy Undersecretary Robert Shireman to Kick Off NASFAA Conference
Bob Shireman, Deputy Undersecretary at the U.S. Department of Education, will be the keynote speaker at this year's NASFAA Conference in San Antonio, Texas and deliver the opening address on July 12. Shireman is replacing Secretary of Education Arne Duncan on the conference agenda. Secretary Duncan has a scheduling conflict which precludes his previously announced plans to address the NASFAA conference. Shireman advises the Department on college financial aid issues and other higher education initiatives.

Collaborative Paper Supports Increasing College Access by Promoting Savings
A summit on saving for college and 529 plans convened in March, bringing together representatives from financial services, state government, financial aid, and higher education. The results of these discussions, in which NASFAA participated, is a recently released white paper which discusses the challenges and opportunities around improving families' ability to save for college.

Title IX: 37 Years Ago Today
Less than 40 years ago, it wasn't illegal for schools and postsecondary institutions to discriminate against women. All that changed with the passage of Title IX of the Education Amendments of 1972 on June 23, 1972. It was signed by President Richard M. Nixon on July 1, 1972. This civil rights law prohibits discrimination in education programs and activities receiving federal funds and is the first comprehensive federal law to prohibit sex discrimination against students and employees in these institutions.

CBO Revised Budget Estimate Slightly Lowers Projected Savings from Eliminating FFELP
Yesterday, the Congressional Budget Office released updated estimates on the costs and savings of generated from the president's budget request. The estimated savings from eliminating the Federal Family Education Loan Program (FFELP) decreased slightly from earlier estimates from $94 billion to $87 billion. The updated estimates will make it harder to implement President Obama's proposal for a mandatory Pell grant. Instead, Democratic leaders are expected to push legislation that uses savings from eliminating FFEL to increase mandatory Pell spending.

Continuing the Conversation: Simplification
As part of our continuing National Conversation Initiative, NASFAA has released the second in a series of issue papers about selected policy areas. The paper is now available in the NCI Resource Center and explores the NCI proposals to simplify the federal student aid process to increase college access and improve predictability while preserving the integrity of the student aid programs.

NASFAA Joins Others In Calling For Increased Commitment to College Savings
College savings programs need more attention from lawmakers and college access advocates. That was the consensus of a policy research roundtable on financial aid policy and 529 plans held last week. NASFAA staff and members participated in the roundtable that was co-sponsored by the New America Foundation and the Center for Social Development at Washington University in St. Louis. The roundtable was one in a series of such discussions to advance the College Savings Initiative.

Only Eight Days Left to Get Early Bird Discount for NASFAA Conference
We know that many of you still have not been able to determine if you have the funds to attend the conference this year. To give you more time, NASFAA has extended the preconference registration deadline to 11:59 p.m. EDT, Wednesday, June 24. Register by June 24 to receive the early bird member rate of $525. On June 25, the registration fee will increase to $625. This special extension is available to NASFAA members only.

NASFAA Conference Early Bird Rate Deadline Extended for Members: Register by June 24 to save $100
We know that many of you still have not been able to determine if you have the funds to attend the conference this year. To give you more time, NASFAA has extended the preconference registration deadline to 11:59 p.m. EDT, Wednesday, June 24. Register by June 24 to receive the early bird member rate of $525. On June 25, the registration fee will increase to $625. This special extension is available to NASFAA members only.

July 1 Changes to Student Aid
There are a host of changes to student aid programs coming on July 1. Many of these changes will benefit students by lowering the cost of student loans, increasing grant aid for Pell Grant recipients and military veterans and providing new assistance for students with unmanageable education loan debt. This article summarizes some of the major upcoming changes to the student aid programs.

Department of Education Invites Your Opinions
The Department of Education begins two targeted efforts at listening to the financial aid community this week. One of those efforts affords financial aid administrators and others an opportunity to suggest issues for the next round of negotiated rulemaking that will likely take place this fall. If there are any regulatory requirements that you would like to put forward for reconsideration or improvement, you may make oral comments at one of three public hearings, or submit written testimony to the Department. The second effort is a series of forums dedicated to simplification and persistence. Forums will be held the next day after the negotiated rulemaking hearings at the same location.

Provision Added to War Funding Bill Covers Full Cost of College Education for All Surviving Military Children
The final 2009 Supplemental Appropriations bill, which funds U.S. military operations in Afghanistan and Iraq, includes a provision to expand GI Bill benefits to children of fallen U.S. soldiers. The provision, authored by Congressman Chet Edwards (D-TX), expands the Post-9/11 GI Bill education benefit to cover the full cost of a college education for all children of fallen soldiers.

Early Bird Conference Rates End This Friday - Register Today!
This year's National Conference in San Antonio, TX promises to be an exciting one! Take advantage of special savings on your conference registration fee by registering this week. Registrations received by this Friday receive a $100 discount. You can pay any time - up to, and including the first day of the conference!

Continuing the Conversation: Eligibility Determination & Simplification
This article is part of our ongoing series addressing questions we've received about the National Conversation Initiative Preliminary Recommendations. Every other week, we are posting a new set of questions and answers in Today's News. Please feel free to comment on the questions or responses at the NASFAA President's Blog. This week's Q & A focuses on how eligibility determination would work under a simplified application and analysis process.

A Look at How Three Students Pay for College
Financial aid is does not usually cover the ever rising expenses of higher education. Students often have to get creative to pay for college. This usually means working one (or two) jobs and borrowing student loans, but no two students' experience is the same. Each student faces unique challenges and finds unique solutions to overcome these challenges. This article looks at three students and their experiences paying for college.

Report: Characteristics of Private Student Loan Borrowers Who Do Not Use Federal Education Loans
Mark Kantrowitz, Publisher of FinAid.org and FastWeb.com, has released a new study that explores several reasons why some students do not "borrow federal first." He notes that "more than 250 community colleges, who disproportionately serve at-risk populations which are more likely to default on student loans, have opted out of the federal education loan programs in order to preserve eligibility for the Pell Grant. But many students at these colleges must still borrow to pay for living expenses, despite the low institutional costs. This forces them to borrow from higher cost private student loan programs."

Survey Finds More Students Forgoing Dream Schools in Favor of Affordability
A majority (70 percent) of high schools reported an increase in the number of students who felt the need to modify their ambitions and choose more affordable options over their "dream schools." The reverberations of a shaky economy were also felt on the college side, as 45 percent of colleges reported a decrease in the number of students accepting admission offers, also known as yield rates in the admission office, compared to 2008. The survey also found that 35 percent of the reporting colleges experienced budget cuts.

Department of Health and Human Services Makes Recovery Act Funding Available to Relieve Student Debt of Health Care Providers in Needy Communities
Health and Human Services Secretary Kathleen Sebelius announced the availability of nearly $200 million from the American Recovery and Reinvestment Act (ARRA) to support student loan repayments for primary care medical, dental and mental health clinicians who want to work at National Health Service Corps (NHSC) sites. The NHSC is now accepting applications for Loan Repayment Awards funded by $200 million ARRA funds. Applications will be accepted continuously until funds are expended or September 30, 2010, whichever comes first. The NHSC Loan Repayment Program provides $50,000 (or the outstanding balance of qualifying student loans if it is less than $50,000), tax free, to primary care medical, dental and mental health clinicians in exchange for two years of service at an approved site in a Health Professional Shortage Area.

Last Chance to Register for Professional Judgment Webinar
Registration ends at 5:00 PM today for NASFAA's newest webinar, Professional Judgment - It's Still Your Decision. On Thursday, June 11, 2009 at 1:30 PM (Eastern), NASFAA will present an intermediate level webinar on professional judgment that focuses on the changes mandated by the College Cost Reduction and Access Act (CCRAA) of 2007 and the Higher Education Opportunity Act (HEOA) of 2008. This live Webinar will include a question and answer segment with NASFAA and US Department of Education staff.

NASFAA Summer Legislative Update
Congress has just eight weeks to tackle a very aggressive legislative agenda before they are scheduled to break for August recess. This legislative agenda includes two pieces of legislation that will have an impact on higher education: the Technical Amendments Bill (H.R. 1777) and the budget reconciliation legislation which is expected to include significant changes to student aid. The Obama administration has asked Congress to eliminate the FFEL program to offset increases in the Pell Grant.

Registration Closes Tomorrow for Professional Judgment Webinar
Tomorrow is the registration deadline for NASFAA's newest webinar, Professional Judgment - It's Still Your Decision. On Thursday, June 11, 2009 at 1:30 PM (Eastern), NASFAA will present an intermediate level webinar on professional judgment that focuses on the changes mandated by the College Cost Reduction and Access Act (CCRAA) of 2007 and the Higher Education Opportunity Act (HEOA) of 2008. This live Webinar will include a question and answer segment with NASFAA and US Department of Education staff.

NASFAA Is not SPAM
Last week we heard from several members that they did not receive emails from NASFAA, including password requests that are automatically generated. To ensure you receive all emails and notifications from NASFAA, please add news@listserv.nasfaa.org, news@nasfaa.org, and membership@nasfaa.org to your institution's or organization's safe senders list. You should also add these addresses to your personal address book and safe sender's list. If a spam filter thinks an email is spam, the email will either go to your junk mail folder or be blocked entirely. In either case, you won't see the email and you'll miss important information.

Appropriation Committee Democrats Express Concern About Making Pell Mandatory
The Chairmen of the House and Senate Appropriations Subcommittees on Labor, Health and Human Services and Education both expressed concerns yesterday about the Obama administration's proposal to make Pell Grants a mandatory spending program during separate hearings with Education Secretary Arne Duncan. House Subcommittee Chairman David Obey (D-WI), who is also chairman of the House Appropriations Committee, said that he had some misgivings about making Pell mandatory because he thought it would not be fiscally responsible. Senate Subcommittee Chairman Tom Harkin (D-IA) told Duncan that he supported the administration's proposal to administer all loans through the Direct Loan program, but would need to discuss the administration's proposal to make Pell mandatory because committee members and other Senators had some concerns.

Updated Professional Judgment Monograph Released
NASFAA's Staff Training & Professional Development Committee and the Professional Assessment, Training, and Regulatory Assistance staff of NASFAA have updated Monograph #21, Professional Judgment in Eligibility Determination and Resource Analysis, and republished it as Monograph #22. NASFAA updated the monograph to reflect current guidance as well as provisions from the recently enacted Higher Education Opportunity Act. The monograph includes a detailed discussion of the data elements used in the Federal Methodology as well as a guide for addressing special circumstances.

Federal Issues Committee Releases Updated Monograph on Developing a Lender List
The NASFAA Federal Issues Committee, with assistance from NASFAA staff, has published Monograph 23, A Guide to Developing a List of Lenders (NASFAA user name and password are required). This monograph includes general principles, benefits, and tools to assist NASFAA members in developing an objective list of student loan providers from which students may select a lender that best meets their needs. The information in this monograph reflects the legal principle that it is the student's right to select his or her lender and that right cannot be limited by institutional policies or practices.

California Student Aid Commission Fights to Save Itself, Cal Grants
In an effort to stop Governor Schwarzenegger's proposal to eliminate California's system of financial aid for low-income students, the California Student Aid Commission (CSAC) asked the legislature to consider alternatives to save the Cal Grant program. The proposed elimination of Cal Grants would have an immediate and devastating impact on more than 200,000 of California's low income students. But the commission is not just fighting for Cal Grants; it's fighting for its life. The governor has also proposed completely eliminating CSAC itself.

NASFAA Simplification Survey Reveals Common Ground
Most agree that the complexity of the student financial aid system can deter the very students it is designed to help. Unfortunately, it has been rare for interested parties to agree on the best way to simplify the system. A new survey of NASFAA members by NASFAA's Federal Issues Committee reveals that, despite the perception of prevailing disagreement about simplification, there is some common ground among financial aid administrators.

NASFAA Updates Policies and Procedures Tools for Professional Judgment Changes
NASFAA has updated the Professional Judgment section of the Policies & Procedures Manual Template to reflect changes mandated by the College Cost Reductions and Access Act of 2007 and the Higher Education Opportunity Act of 2008. The full version of the template is a detailed, year-specific outline of suggested section titles with current statutory and regulatory citations, and other policy guidance references.

Equal Justice Works Presents Webinar on Student Loan Forgiveness
Equal Justice Works, an organization of public service lawyers, will present a webinar for students called "Getting Your Student Loans Forgiven: How government and nonprofit employees can earn public service loan forgiveness." The presentation is appropriate for anyone with high student debt working for the government or a nonprofit organization.

VA Publishes List of Schools Participating in Yellow Ribbon Program
he Veteran's Administration has published an initial list of private institutions participating in the Post-9/11 GI Bill Yellow Ribbon program. The list is current as of May 29, 2009. Schools have until June 15, 2009 to elect participation in the program for 2009-2010.