NASFAA News RSS

Nominate Colleagues for NASFAA Elected Offices
NASFAA members have an important professional responsibility to participate actively in the nominations process of the Association. To that end, all of us are strongly encouraged to submit nominations to fill the positions of National Chair/Chair-Elect, four national Representatives-at-Large to the Board of Directors, and three members of the Nominations and Elections Committee. In accordance with established procedures, the election is held between mid-March and mid-April. The deadline for receipt of nominations is Dec. 4, 2009.

Obama Administration's Plans to Improve 529 College Savings Plans for the Middle Class
The Obama administration's Middle Class Task Force held a press conference on Sept. 9 to highlight some of its findings and goals to expand education and lifelong training opportunities. Making Section 529 college savings plans more accessible, effective and reliable for the middle class is one way the task force proposes to expand higher education opportunities. At the Sept. 9 press conference, the task force released a report that assessed the effectiveness of the current 529 program and provides recommendations to better accomplish the administration's goals.

Financial Aid Offices Report Increases in Aid Applications, Awards and Appeals
This year, more students are applying and qualifying for need-based financial aid and more financial aid offices are being asked to reassess financial aid packages to reflect recent changes to families' financial situations, according to a recent survey by NASFAA. Financial aid administrators who filled out the survey highlighted the economic downturn, actions taken by the Obama administration to encourage unemployed workers to apply for aid and appeal aid awards, recent changes to the formula used to determine aid eligibility, and rising enrollments as causes for the increases this year.

House Panel Considers Allowing Private Loans to Be Discharged in Bankruptcy
The House Judiciary Committee yesterday held a hearing on bankruptcy law as it applies to private student loans. Before the enactment of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, private student loans were unconditionally dischargeable in bankruptcy. However, the 2005 law gave private loans the same preferred treatment as government-guaranteed student loans so they are now not dischargeable except under very extreme circumstances. During yesterday's hearing, Rep. Steve Cohen (D-TN) signaled his intention to sponsor legislation to revise the bankruptcy provisions for private student loans to make them dischargeable again.

FY 2010 Federal Budget Update
As the end of the 2009 fiscal year draws near, Congressional leaders are openly talking about stopgap legislation to keep the government operating for an additional 30 days. Yesterday, House Majority Leader Steny Hoyer (D-MD) said that the House will pass a continuing resolution this week that would keep the government funded at current levels through Oct. 31.

Call for Interest Session Proposals for the 2010 National Conference
Do you have information relevant to the financial aid industry that you would like to share with your colleagues? The Conference Committee, chaired by Brad Barnett at James Madison University, will be meeting in early November and is interested in your ideas for interest sessions for the 2010 National Conference. If you would like to submit an interest session proposal, please do so by Oct. 30. The 2010 NASFAA National Conference will take place in Denver, CO from July 18 to 21.

NASFAA Releases Summary of H.R. 3221 as Passed by the Full House
On September 18, the House passed the Student Aid and Fiscal Responsibility Act of 2009 (H.R. 3221) by a vote of 253 to 171. The bill would use savings from eliminating the Federal Family Education Loan Program (FFELP) to bolster the Pell Grant program, fund a new Federal Direct Perkins Loan program, and increase funding in other higher education and K12 programs. The bill was introduced to the House Education Committee on July 15th. Since then, the bill has been amended twice -- once through committee markup and again during a full House debate. This article contains a comprehensive summary of the student aid provisions contained in the bill as reported by the full House.

NASFAA Submits Comments on General and Non-Loan Programmatic NPRM
Yesterday, NASFAA submitted comments on proposed rules on various general and non-loan provisions that were added to the HEA, by the Higher Education Opportunity Act of 2008 (HEOA). The proposed regulations would amend the regulations for Institutional Eligibility under the HEA, the Student Assistance General Provisions, the Federal Work-Study (FWS) Programs, the TEACH Grant Program, the Federal Pell Grant Program, and LEAP. These regulations were drafted by the Department after federal and nonfederal negotiators failed to reach consensus during the negotiated rulemaking process (Team V).

GAO Report on Proprietary School Aid Recommends Stronger Oversight by Department
A new report on student financial aid practices at proprietary schools released by the General Accountability Office (GAO) concludes that the Department of Education should strengthen its monitoring and oversight of institutions in the for-profit sector. The study, Proprietary Schools: Stronger Department of Education Oversight Needed to Help Ensure Only Eligible Students Receive Federal Student Aid, found areas of fraud and abuse in the "ability-to-benefit" and high school diploma requirements and linked these weaknesses to the potential for greater default rates in unqualified students who do not succeed in college because they are not adequately prepared.

Houses Passes Student Aid and Fiscal Responsibility Act with Amendments
The House of Representatives passed H.R. 3221, the Student Aid and Fiscal Responsibility Act of 2009, this afternoon by a 253 to 171 vote. The bill would use savings from eliminating the Federal Family Education Loan Program (FFELP) to bolster the Pell Grant program, fund a new Federal Direct Perkins Loan program, and increase funding in other higher education and K12 programs. "While the Student Aid and Fiscal Responsibility Act is not the perfect bill, it demonstrates that lawmakers and the Obama administration are committed to removing financial barriers to higher education to ensure students realize their potential and help the U.S. remain a leader in the global economy," NASFAA Interim President and CEO Joan Crissman said in a statement. "We look forward to working with lawmakers to improve this bill as it moves through the legislative process."

Registration Now Open for Two New NASFAA Webinars
NASFAA is pleased to present two brand new, Web-based interactive seminars. NASFAA members and staff will lead the new Webinars, "Satisfactory Academic Progress (SAP): Evaluating Your Policy," scheduled for October 7, and "Dependency Status: It Isn’t the Riddle of the Sphinx," scheduled for October 19. Online registration is now open for both events.

H.R. 3221 Headed to House Floor with Amendments
Late yesterday afternoon, the House Rules Committee released rules for the upcoming House debate of H.R. 3221, the Student Aid and Fiscal Responsibility Act of 2009 (SAFRA). Of the 45 amendments submitted for consideration, only 24 were deemed eligible for consideration for the debate that is expected to begin as early as today. In a victory for part-time students, one NASFAA amendment - originally sponsored by Rep. Dave Loebsack (D-IA) -- has been accepted into the manager's amendment. The amendment would ensure that part-time students can also take advantage of year-round Pell Grants, something the Department of Education has proposed to prohibit in proposed regulations.

Obama Administration Expresses Support for Student Aid and Fiscal Responsibility Act
The Obama administration expressed strong support for H.R. 3221, the Student Aid and Fiscal Responsibility Act of 2009 (SAFRA), in a Statement of Administrative Policy issued as the House prepares to begin debating the bill today and is expected to pass the bill on Thursday. The statement highlights the aspects of the bill that the administration supports and some areas where the administration hopes Congress will improve the bill as it moves through the legislative process.

Call for Interest Session Proposals for the 2010 National Conference
Do you have information relevant to the financial aid industry that you would like to share with your colleagues? The Conference Committee, chaired by Brad Barnett at James Madison University, will be meeting in early November and is interested in your ideas for interest sessions for the 2010 National Conference. If you would like to submit an interest session proposal, please do so by Oct. 30. The 2010 NASFAA National Conference will take place in Denver, CO from July 18 to 21.

Preparing for CDR Changes
Changes made by the Higher Education Opportunity Act (HEOA) alter the current Cohort Default Rate (CDR) definition by including more time in a borrower's repayment period in the CDR calculation. That definition doesn't affect institutional eligibility until Oct. 1, 2011, but it will include students that began repaying loans on Oct. 1 2008. This article includes an explanation of the new requirements and resources to help you prepare for the new CDR calculation.

CBO Says Lending Community's Loan Proposal Costs More Than Direct Lending
The Congressional Budget Office (CBO) released its scoring of the lending community's alternative student loan proposal on Friday, showing that it would cost $13 billion more over ten years than the Democrats' proposal to originate all loans through the Direct Loan Program. The net savings from turning to 100 percent Direct Lending is $80 billion whereas the net savings from the lenders' alternative proposal is $67 billion, according to CBO.

REMINDER: Cash for College Brochure Bulk Order Deadline Is Sept. 17
Do you need an easy-to-understand handout for financial aid nights? For prospective students? For institutional colleagues and community leaders? If so, you need NASFAA's Cash for College brochure! Cash for College is NASFAA's 16-page brochure (4" x 8-3/4") that contains basic student aid information. The brochure is distributed year-round to prospective students, at high school financial aid information nights, and as a primer for institutional colleagues, trustees, legislators, and community leaders. Place your bulk order by Sept. 17.

CBO Estimates Increased Costs on Pell Grant Proposal
In response to a request from the ranking member of the House Education Committee John Kline (R-MN), the Congressional Budget Office (CBO) issued revised estimates yesterday on the cost of increasing and indexing the Pell Grant as proposed in the Student Aid and Fiscal Responsibility Act (H.R. 3221). The revised estimate adds an additional $11.4 billion over ten years to the original projections. The increase is based on new data released by the Department of Education that shows rising numbers of students participating in the Pell Grant program. The CBO also believes that the Consumer Price Index (CPI) -- the index that will determine future mandatory increases in the Pell Grant -- will be slightly higher than expected.

Report Outlines Impact of Obama's FAFSA Simplification Proposals
The need to simplify the federal financial aid application and the potential impact of President Obama's proposals to simplify the FAFSA are detailed in a new report by the Council of Economic Advisers (CEA) and the National Economic Council (NEC). The current aid application process discourages more than one million students who would likely qualify for aid from applying and provides opportunities for applicants to game the system while penalizing other families for saving for college, according to the report. The report also found that the Obama administration's proposal to eliminate asset and income questions that are not required by the IRS would have a minimal effect on the distribution of aid.

Special IRS Web Section Highlights Back-to-School Tax Breaks
The new "Tax Benefits for Education" section on IRS.gov provides an overview of all education deductions and credits. The "one-stop" location for higher education information includes a special section highlighting 529 plans, exclusions from income, taxability of scholarships and fellowships. The Web section also features two key changes that will be in effect during 2009 and 2010 that were included in the American Recovery and Reinvestment Act (ARRA), enacted earlier this year.

Harkin to Become Chairman of Senate HELP Committee
Sen. Tom Harkin (D-IA) accepted the chairmanship of the Senate Health, Education, Labor, and Pensions (HELP) Committee yesterday, a position left vacant after the passing of Sen. Edward Kennedy (D-MA). While Harkin raised concerns about the President's proposal to make the Pell Grant a full entitlement, he has historically been a supporter of the program and he is expected to carry through with the President's proposals to restructure the student loan programs and increase funding for the Pell Grant.

Web Site Accessibility: Is Your School Meeting the Requirements?
Wheelchair ramps and expanded entryways usually spring to mind when thinking about providing access for individuals with disabilities. But what about expanded entry to your Web site? Can all of your students benefit from the information there, or just the able-bodied? "How useful is the video developed by the admissions office to illustrate the application process for a student who is legally blind?" asks NASFAA regulatory expert Jennifer Martin in her recent Student Aid Transcript article, Access and Accessibility. Schools may employ the latest media and technology to improve outreach, but when accessibility is overlooked, it can create barriers for individuals with disabilities.

2009 Business Meeting Minutes
NASFAA has posted minutes from the 2009 Annual Business Meeting held at the National Conference in San Antonio, TX on July 14. The minutes are available to members and require a NASFAA username and password to access. During the meeting, 2008-09 National Chair Dave Gruen reflected on his year as national chair and passed the gavel to incoming National Chair Barry Simmons who outlined his goals for 2009-10.

The Final Push to Overhaul Student Lending
Congress returns from its August recess this week to tackle an ambitious agenda that includes Democrats' efforts to overhaul the student loan programs by eliminating the Federal Family Education Loan Program (FFELP) and restructuring the Perkins Loan Program. The Obama administration's student loan proposal -- used as the template for the Student Aid and Fiscal Responsibility Act (H.R. 3221) -- would be the most dramatic overhaul of the student loan system since the creation of the Direct Loan Program more than a decade ago. However, Democrats must overcome some serious challenges to pass the bill.

NCES Updates College Navigator with New Data
The National Center for Education Statistics (NCES) has updated the College Navigator Web site to include all the new data items required by the Higher Education Opportunity Act. The update includes new financial aid categories, federal loan data by type, default rates, and a new Multi-Year Tuition Calculator. The College Navigator site makes the latest data from the Integrated Postsecondary Education Data System (IPEDS) accessible to students and parents.

Call for Interest Session Proposals for the 2010 National Conference
Do you have information relevant to the financial aid industry that you would like to share with your colleagues? The Conference Committee, chaired by Brad Barnett at James Madison University, will be meeting in early November and is interested in your ideas for interest sessions for the 2010 National Conference. If you would like to submit an interest session proposal, please do so by Oct. 30. The 2010 NASFAA National Conference will take place in Denver, CO from July 18 to 21.

REMINDER: Cash for College Brochure Bulk Order Deadline Is Sept. 17
Do you need an easy-to-understand handout for financial aid nights? For prospective students? For institutional colleagues and community leaders? If so, you need NASFAA's Cash for College brochure! Cash for College is NASFAA's 16-page brochure (4" x 8-3/4") that contains basic student aid information. The brochure is distributed year-round to prospective students, at high school financial aid information nights, and as a primer for institutional colleagues, trustees, legislators, and community leaders. Place your bulk order by Sept. 17.

Reminder of Perkins Loan Master Promissory Note Update Status
The current Perkins Loan Master Promissory Note (MPN) expired on June 12 and the updated version of the has not been cleared by the Office of Management and Budget (OMB). The Department of Education provided guidance to remind schools that the current Perkins MPN -- with the June 30, 2009 expiration date -- remains valid for use until the revised Perkins MPN has been approved by OMB and made available to schools.

Constitution Day Requirements to Remain Title IV Eligible
Higher education institutions must offer educational programs about the Constitution on Thursday, Sept. 17 (Constitution Day) in order to remain eligible for Title IV funding, thanks to a provision by Sen. Robert Byrd (D-WV) that was slipped into a 2004 spending bill. Fortunately, the law and accompanying regulations are incredibly flexible, allowing institutions to do just about anything to commemorate the Constitution's birthday and remain Title IV eligible. This article provides some examples of how institutions have complied with the law in the past and online resources to help you create a program.

NASFAA August 2009 Monthly Status Report Now Available
The NASFAA August 2009 Monthly Status Report is now available to members on the NASFAA Web site. The monthly status report contains a monthly summary of NASFAA activities, future plans, and highlights from NASFAA staff. The report is first released to the NASFAA Board of Directors and is then made available to NASFAA members.

Law Enforcement Officials Announce Results of Million Dollar Student Loan Fraud Prosecution Initiative
Steven Phillips, age 38,of Huntington, West Virginia, was sentenced to 18 months imprisonment, and ordered to make restitution totaling $344,908.00 following his guilty plea conviction on federal student loan fraud charges arising out of a scheme in which Phillips was alleged to have used the identities of innocent third parties to apply for more than $340,000 in federal educational benefits. Dennis Pfannenschmidt, United States Attorney for the Middle District of Pennsylvania, stated that the conviction of Steven Phillips is only the latest success in an on-going law enforcement initiative aimed at ensuring integrity in federal education programs. This initiative has been spearheaded by the United States Department of Education, Office of Inspector General, and the Pennsylvania Higher Education Assistance Agency (PHEAA), throughout the Commonwealth of Pennsylvania.

NIH Helps Advance Research Careers Through Student Loan Repayment Programs
The National Institutes of Health (NIH) fosters the careers of thousands of scientific researchers through its extramural Loan Repayment Programs (LRP). The LRP's two-year award repays up to $35,000 per year of educational loan debt for individuals who commit to conducting two years of qualified biomedical or behavioral research at a nonprofit or government institution. The five extramural LRPs are Clinical Research, Pediatric Research, Health Disparities Research, Contraception and Infertility Research, and Clinical Research for Individuals from Disadvantaged Backgrounds. The 2010 application cycle opened Tuesday and closes Dec. 1.

NASFAA Office Will Be Sept. 7 for Labor Day
The NASFAA office will be closed on Monday, Sept. 7 for the Labor Day holiday. Membership services, AskRegs, and other NASFAA services, including Today's News will be unavailable on Sept. 7, but will resume on Tuesday, Sept. 8. NASFAA wishes you a safe and happy holiday!

Individual Taxpayer Identification Numbers and Conflicting Information
NASFAA would like to take the opportunity to remind the community about the use of the Individual Taxpayer Identification Number, or ITIN. The Internal Revenue Service (IRS) will issue an ITIN to a resident or non-resident alien who does not have and is not eligible for a Social Security Number (SSN). To apply for an ITIN, individuals must complete and submit IRS Form W-7. It usually takes six weeks to receive an ITIN. Individuals with ITINs enter it on their tax returns wherever a SSN is required. Parents of dependent students who are completing the Free Application for Federal Student Aid (FAFSA) cannot use the ITIN in place of a SSN.

FFELP Parent PLUS Loan Denial Rates Were Two Times Higher than DL Program Denial Rates
Parent PLUS loan denial rates in the Federal Family Education Loan Program (FFELP) were two times higher than the Parent PLUS loan denial rates in the Direct Loan Program in 2007-08, according to analysis by Mark Kantrowitz, publisher of Finaid.org. "Anecdotal evidence suggests that several FFEL program lenders are incorrectly implementing the definition of an adverse credit history by using a five-year lookback for the 90-day delinquency restriction instead of limiting it to just current 90-day delinquencies," Kantrowitz writes in his analysis.

Register Now for Free Webinar on General Provisions and Non-Loan Programs NPRM
Registration is now open for the two free webinars NASFAA will offer members to discuss the contents of the Notice of Proposed Rulemaking (NPRM) published on Aug. 21, 2009. The NPRM affects the Institutional Eligibility and General Provisions regulations, as well as several non-loan Title IV programs (Pell Grant, FWS, TEACH Grant, and LEAP). This NPRM was generated through the negotiated rulemaking process, but the negotiating committee did not reach consensus on how to implement the provisions. This makes it important for financial aid administrators and other affected campus officials to study the issues in the NPRM and respond to the Department of Education by Sept. 21. The first webinar will include information about how to effectively respond to NPRMs. For members unable to attend the live webinars, archives will be posted.

Call for Interest Session Proposals for the 2010 National Conference
Do you have information relevant to the financial aid industry that you would like to share with your colleagues? The Conference Committee, chaired by Brad Barnett at James Madison University, will be meeting in early November and is interested in your ideas for interest sessions for the 2010 National Conference. If you would like to submit an interest session proposal, please do so by Oct. 30. The 2010 NASFAA National Conference will take place in Denver, CO from July 18 to 21.

Upcoming NASFAA Webinars Sept. 9 and 10 -- Save These Dates!
Next week NASFAA will offer members two free webinars to discuss the contents of the Notice of Proposed Rulemaking (NPRM) published on Aug. 21, 2009. The NPRM affects the Institutional Eligibility and General Provisions regulations, as well as several non-loan Title IV programs (Pell Grant, FWS, TEACH Grant, and LEAP). This NPRM was generated through the negotiated rulemaking process, but the negotiating committee did not reach consensus on how to implement the provisions. This makes it important for financial aid administrators and other affected campus officials to study the issues in the NPRM and respond to the Department of Education by Sept. 21. The first webinar will include information about how to effectively respond to NPRMs. For members unable to attend the live webinars, archives will be posted. Registration for these webinars will be open in the near future.

REMINDER: Cash for College Brochure Bulk Order Deadline Is Sept. 17
Do you need an easy-to-understand handout for financial aid nights? For prospective students? For institutional colleagues and community leaders? If so, you need NASFAA's Cash for College brochure! Cash for College is NASFAA's 16-page brochure (4" x 8-3/4") that contains basic student aid information. The brochure is distributed year-round to prospective students, at high school financial aid information nights, and as a primer for institutional colleagues, trustees, legislators, and community leaders. Place your bulk order by Sept. 17.

NASFAA Submits Comments on School-Based Loans NPRM
As a participant on the negotiated rulemaking team (Team II) that reached consensus on school-based loan issues, NASFAA is prohibited from commenting negatively on the proposed rules that were issued on July 28th. However, NASFAA did seek clarification on a few issues in its NPRM comments that were submitted late last week. The Department will consider all comments that have been submitted and issue final rules before Nov. 1 (to conform with Master Calendar requirements). These rules will become effective on July 1, 2010.

SLA Flash Survey on Short-Term Emergency Loan Programs
Student Lending Analytics (SLA), an independent research and advisory firm focused on finding the best lenders for students, performed a flash survey last week to determine the prevalence of emergency loan programs at institutions and analyze the structure of these programs including term, interest rates and eligibility requirements. The survey found that given the ongoing economic challenges, more schools are emphasizing their emergency loan programs. In addition, schools should review the structure of their emergency loan programs because the Federal Reserve's private loan regulations exempt institutional loan programs with certain characteristics.

Clarification Regarding the Frequency of Counseling for TEACH Grant Recipients
NASFAA has received information from the Department of Education clarifying one of the issues addressed in the article. The Department has clarified how the reporting of a third disbursement affects counseling requirements. In order for the Department not to require a second Agreement to Serve (ATS) and subsequent counseling for a third disbursement within a 12-month period, the school must report the third disbursement as part of the same award year as the fall and spring disbursements.

House Education Committee's Top Republican Urges Delay of Student Aid Fiscal Responsibility Act
The House Education and Labor Committee's ranking Republican, Rep. John Kline (R-MN), urged Democrats to slow down the process to overhaul the student loan programs because new budget projections show that changing enrollment and economic trends could increase the cost of the Pell Grant program by $27 billion. House Education and Labor Committee Chairman George Miller's (D-CA) staff disputed Kline's assessment of the new projections, arguing that the re-estimates show a greater need to invest in Pell because of more students need the grant aid.

NASFAA Remembers Sen. Kennedy, a Tireless Advocate for Student Aid
When Senator Edward Kennedy passed away early this morning, the student financial aid community and students across the nation lost a tireless advocate for educational opportunity and college access. His commitment to making higher education accessible for all students was just one way Kennedy championed equal rights for all U.S. citizens. NASFAA encourages you to express your thoughts on the passing of Sen. Edward Kennedy by leaving comments on the national chair blog.

Study Identifies Key Student Satisfaction Indicators that Influence Retention
A new study by Dr. Laurie Schreiner, Azusa Pacific University, and Noel-Levitz, a higher education consulting firm, has identified key student satisfaction indicators that influence retention. According to the report, satisfaction indicators almost doubled the ability to predict retention beyond what demographic characteristics and institutional features could predict. The study found that an important element in the empirical link between student satisfaction and retention is the awareness that each class level has distinctive predictors for persistence. That is, the aspects of the college experience that are critical to student satisfaction and persistence differ each year that a student is in college

Conference Video: Preparing for the Net Price Calculator
At NASFAA's 2009 National Conference in San Antonio officials from the National Center for Education Statistics (NCES), the Association for Institutional Research (AIR), and NASFAA members discussed the net price calculator that institutions will be required to post on their Web sites by August 2011. This conference session explores issues and challenges in calculating net cost and its impacts on institutions and is part of a joint effort by NCES, NASFAA and AIR to improve information on financial aid and the cost of college.

WASFAA Letter to Senate Education Leaders Outlines Priorities for Reconciliation Bill
The Western Association of Student Financial Aid Administrators (WASFAA) expressed its support and detailed some concerns about provisions in the Student Aid and Fiscal Responsibility Act (H.R. 3221) in a letter sent to Senate education leaders on Aug. 17. The letter to Senate Health, Education, Labor and Pensions Committee Chairman Edward Kennedy (D-MA) and the committee's ranking member Michael Enzi (R-WY) expresses support for efforts to increase Pell Grant and Work Study funding, but strongly opposes redirecting any savings created from changes to Title IV program to other goals like reducing the national deficit.

CORRECTED: Foster Youth Q&A from AskRegs, NASFAA's Regulatory Service
Last Friday, NASFAA published a Q&A about foster/homeless youth. NASFAA has received updated guidance from the Department on this subject and has updated its answer to the question. A member asked NASFAA what verification is required for students that indicate they are homeless on the FAFSA. The Department has clearly stated that schools are not required to verify a student's answer to dependency status questions #58-60 on the FAFSA unless it has conflicting information. This article describes several ways to verify that a student meets the criteria to be considered an unaccompanied homeless youth, if the institution has conflicting information.

REMINDER: Cash for College Brochure Bulk Order Deadline Is Sept. 17
Do you need an easy-to-understand handout for financial aid nights? For prospective students? For institutional colleagues and community leaders? If so, you need NASFAA's Cash for College brochure! Cash for College is NASFAA's 16-page brochure (4" x 8-3/4") that contains basic student aid information. The brochure is distributed year-round to prospective students, at high school financial aid information nights, and as a primer for institutional colleagues, trustees, legislators, and community leaders. Place your bulk order by Sept. 17.

VA Update on Status of Post-9/11 GI Bill Processing and Payments
There have been number of conflicting accounts regarding the availability of the new chapter 33 veterans' educational benefits under the Post-9/11 Veterans Educational Assistance Act of 2008, enacted June 20, 2008. NASFAA staff has worked with the Veteran's Administration to obtain the latest information on the status of these benefits. Benefits are in fact being processed and sent out, but the process entails a number of steps.

Getting Up To Speed on Truth In Lending
On August 14, the Federal Reserve Board issued final rules that will affect schools that offer institutional loans (including some emergency loans) or have any students that utilize private education loans. These final rules will become effective Feb. 14, 2010, and aid administrators should start becoming familiar with them now in preparation for their implementation. NASFAA has provided a preliminary summary of the final rules that will most affect schools, and more will be shared through a NASFAA Webinar tentatively scheduled for mid-November.

Video, Podcast: IRS Features Education Tax Credits on YouTube, iTunes
The Internal Revenue Service has announced the availability of video and audio products to help taxpayers take full advantage of the 2009 tax provisions in the American Recovery and Reinvestment Act. The IRS has launched a YouTube video site and an iTunes podcast site to better serve taxpayers. The YouTube focus will be on the provisions of the American Recovery and Reinvestment Act and will highlight the expanded Hope Credit (known as the American Opportunity Tax Credit) and other benefits provide by the ARRA. These videos will be in English, Spanish, American Sign Language and other languages.

Thank You, Dallas Martin Endowment Contributors - You're the Best!
The enthusiastic support received in the first six months since the launch of the Dallas Martin Endowment for Public Policy and Student Aid (DME) only proves what we already knew: NASFAA members are some of the most generous people on earth. NASFAA expresses its deep gratitude and recognizes the generosity of our DME donors (listed in this article), and looks forward to the support of many more of its members in the coming months.

Conference Video: National Conversation Initiative Update
NASFAA has posted a recording of the National Conversation Initiative update and the following question and answer session held at NASFAA's 2009 National Conference in San Antonio on July 13. Justin Draeger, NASFAA's vice president of public policy, advocacy, and research, updated NASFAA members on the NCI project and Joan Berkes, NASFAA's director of legislative and regulatory analysis, helped answer members' questions about NCI.

Dear NASFAA: Foster Youth Q&A's From AskRegs, Our Regulatory Service
"We have several applications for students who have answered on the FAFSA that they are homeless. Is there some type of paperwork we should get from the student's school or homeless shelters as proof? Or should we simply take the student's answer?" a NASFAA members asks NASFAA regulatory staff through the AskRegs service. "The determination may be based on a documented interview with the student if there is no written documentation available," NASFAA regulatory staff answers.

FFELP Community Response to Loan NPRM
The trade associations representing the majority of student loan providers in the Federal Family Education Loan Program (FFELP) submitted comments today on the Team I: Loans - Lender General Loans Issues Notice of Proposed Rulemaking (NPRM). These proposed regulations are needed to implement the provisions from the Higher Education Opportunity Act of 2008 (HEOA).

Anatomy of a Flawed Hire (Inside Higher Ed)
"It's easy to look back with 20/20 hindsight and see that NASFAA's decision to hire Philip R. Day Jr. as its president turned out to be disastrous," Inside Higher Ed reports. "That's a comment not on his performance in the job -- about which NASFAA's staff and the financial aid directors who are its members have mixed views -- but on the fact that Day resigned last month after San Francisco's district attorney charged him with felony violations of state campaign laws linked to his previous job as chancellor of the City College of San Francisco. ... Virtually every higher education association, every college and university, every organization at some point hires a leader, and understanding those that go wrong can be instructive."

Aid Administrators Express Concerns about Proposed Perkins Changes
Nearly 80 percent of National Association of Student Financial Aid Administrators (NASFAA) member schools would prefer expanding the current Perkins Loan program rather than replacing it with the Direct Perkins Loan program as proposed by the Obama administration and House Democrats, according to a recent survey of more than 2,600 NASFAA member schools. More than half (57 percent) of survey respondents said that new requirements being proposed could prevent their institution from participating in the updated Perkins program.

Dear NASFAA: Promissory Note Q&A's From AskRegs, Our Regulatory Service
One of the most popular benefits of a NASFAA membership is our AskRegs service. Staffed by the financial aid experts in NASFAA's division of Professional Assessment, Training, and Regulatory Assistance, AskRegs gives NASFAA members personal assistance with regulatory or compliance questions. Many inquiries require research and/or consultation with the Department of Education. Where applicable, we cite regulations in our answers. This article discusses recent questions about disbursements and promissory notes that AskRegs staff has fielded.

Fiscal Year 2008-FY 2010 State Tables for the U.S. Department of Education
State tables (last updated 08/19/2009) are available for FY 2008, the Recovery Act, FY 2009, and FY 2010 President's Budget. These tables include, for each State, financial support from selected student aid programs that provide funds to the postsecondary institutions that students attend. Also shown for each State is the dollar amount of new federally supported loans made to students attending postsecondary institutions located in the State.

Vice President Biden, Secretary Duncan Highlight Recovery Act Success in Florida
Vice President Joe Biden and Secretary of Education Arne Duncan visited Jackson Middle School in Orlando yesterday, highlighting how the Recovery Act is saving tens of thousands of teaching jobs and providing the resources necessary to prepare American students for the 21st century economy. As of today, $486,832,603 in Pell Grants have been awarded to students attending schools in Florida, and $8,247,257 in Work Study funds have been awarded to students attending schools in Florida.

It's Not an Override
The Higher Education Opportunity Act of 2008, or HEOA, broadened the professional judgment (PJ) authority financial aid administrators may exercise by authorizing the awarding of unsubsidized Stafford Loans to dependent students without parental data. As noted in GEN-08-12, this use of PJ is not a dependency override since the parent's refusal to complete the Free Application for Federal Student Aid (FAFSA) is not sufficient reason for to make an otherwise dependent student independent. NASFAA staff discussed the issue of awarding unsubsidized Stafford Loans to dependent students without parental data in its June 11 Webinar, "Professional Judgment: It's Still Your Decision." You still have time to purchase access to the archived recording, including handouts and frequently asked questions.

Benjamin A. Gilman International Scholarship Program Announces Spring 2010 Application Webinar
The Benjamin A. Gilman International Scholarship Program offers a competition for awards for undergraduate study abroad. This scholarship provides awards for U.S. undergraduate students who are receiving Federal Pell Grant funding at a two-year or four-year college or university. The application cycle for Spring 2010 awards will open within the next two weeks, and the deadline for submission of online applications is October 6, 2009. A webinar entitled "Walk Through the Application Process: How to Apply" will be offered on August 25th from 2:00 PM to 3:00 PM CST.

Cash for College Brochure Bulk Order Deadline Is Sept. 17
Do you need an easy-to-understand handout for financial aid nights? For prospective students? For institutional colleagues and community leaders? If so, you need NASFAA's Cash for College brochure! Cash for College is NASFAA's 16-page brochure (4" x 8-3/4") that contains basic student aid information. The brochure is distributed year-round to prospective students, at high school financial aid information nights, and as a primer for institutional colleagues, trustees, legislators, and community leaders. Place your bulk order by Sept. 17.

NASFAA Conference: More on the New Direct Perkins Loan Program
The 2009 NASFAA Conference in San Antonio, Texas provided conference attendees an opportunity to hear the latest news on the "revamped" Perkins Loan program, as proposed by the Obama administration. Department of Education (ED) presenters, Dan Madzelan and Sue O'Flaherty, gave an overview of program objectives for the "new" Direct Perkins Loan program and also answered questions from the audience.

Status of 2010-11 Financial Aid Night Materials
It is NASFAA's understanding that a draft of the 2010-11 Free Application for Federal Student Aid (FAFSA) will not be released until the middle of September. As a result, NASFAA will delay the release of its annual What You Need to Know About Financial Aid presentation and the accompanying materials until the new FAFSA is available. The delay will ensure that the resources NASFAA provides to financial aid administrators and others are as accurate as possible.

GAO Releases Report on Cost-of-Living Adjustments in the Federal Student Aid Formula
The Government Accountability Office (GAO) last week released a report, Federal Student Aid Formula: Cost-of-Living Adjustment Could Increase Aid to a Small Percentage of Students in High-Cost Areas but Could Also Further Complicate Aid Process. The GAO found that while data suggest that the cost of living is higher in some areas than in others, the current aid formula accounts for these differences in only a limited way. The GAO identified three possible COLA options that could be used in the federal aid formula. These COLAs could increase Pell Grants and other financial aid for a small percentage of students from high-cost areas but could also further complicate the process for calculating and administering federal student aid.

NASFAA Provides Answers to Your Frequently Asked Questions on Professional Judgment
NASFAA is pleased to announce the release of answers to the frequently asked questions posed during its Professional Judgment Webinar. This document contains responses to questions received during the live question and answer portion of the Webinar provided by NASFAA and Department of Education staff. Department of Education staff, included Carney McCullough, Senior Policy Analyst and Team Leader, and Marty Guthrie, Program Management Analyst from the Office of Postsecondary Education at the Department of Education.

ED Provides Guidance on Veteran's Education Benefits
The Department of Education posted guidance yesterday to answer a number of questions concerning the exclusion of VA benefits from estimated financial assistance (EFA) and the construction of cost of attendance (COA) figures for veterans. In the Q&A, ED clarifies that the institutional share of the Yellow Ribbon component of the new chapter 33 Post-9/11 GI Bill benefits is considered part of the VA benefit for purposes of the EFA exclusion. The new chapter 33 veterans' education benefits cover several categories of costs for veterans: there are "basic" benefits for tuition and fees, housing, and books. All of these basic benefits are to be excluded from EFA.

Video: Department of Education Federal Update at 2009 NASFAA Conference
Department of Education staff Jeff Baker, David Bergeron, and Dan Madzelan gave a Federal Update at the closing session of the 2009 National Conference in San Antonio. The panel reviewed developments in student aid over the last year and discussed highlights of the President's FY2010 budget proposal, FAFSA simplification, and Negotiated Rulemaking. NASFAA has posted videos of this session.

National Institute of Health Begins Accepting Loan Repayment Applications on Sept. 1
The 2010 National Institute of Health (NIH) Extramural Loan Repayment Program application cycle will open September 1, 2009, and close December 1, 2009. NIH wants to encourage outstanding health professionals to pursue careers in biomedical, behavioral, social, and clinical research. If students commit at least two years to conducting qualified research funded by a domestic nonprofit organization or U.S. federal, state, or local government entity, NIH may repay up to $35,000 of qualified student loan debt per year, including most undergraduate, graduate, and medical school loans.

Admissions Application, Education Test Score Reporting, & IPEDS Approved As Education Community Standards
PESC, the Postsecondary Electronic Standards Council, announces the release of the Admissions Application, Education Test Score Reporting, and the Integrated Postsecondary Education Data System (IPEDS) as approved education community standards. All supporting documentation will be made available within 30 days at www.PESC.org. Through open and transparent community participation, PESC enables quality research and efficient connectivity to ensure cost-effective data sharing and reporting across the higher education lifecycle.

Video: Deputy Undersecretary Shireman Answers Members' Questions at 2009 Conference
The Department of Education's Deputy Undersecretary Robert Shireman answered NASFAA members' questions at the 2009 National Conference in San Antonio. Members asked Shireman questions about the administration's proposal to eliminate FFELP, the ACG, SMART Grant and TEACH programs, the Department's initiative to use IRS data to prepopulate the FAFSA, and the recent unavailability of private loans. NASFAA has posted videos of these Q&As.

New American Opportunity Tax Credit Resources Available
The National Association of College Stores has created several new resources for students and parents to increase awareness of the value of the American Opportunity Tax Credit. The American Opportunity Tax Credit, part of the Recovery Act passed earlier this year, temporarily expands and replaces the Hope tax credit in a number of important ways.

Reminder: Campus-Based Reallocation Forms Due Next Week
Schools are reminded that deadline for filing the Campus-Based Reallocation Form is next Friday, August 21, 2009. The Reallocation Form is designated for the return of 2008-09 funds and the request of supplemental FWS funds for the 2009-10 award year.

Reminder: Portions of NASFAA Web Site Will Be Unavailable Today
NASFAA will be performing some maintenance on its servers today making the password protected areas of the Web site unavailable from 9:00 a.m. EDT to 5:00 p.m. EDT. In addition to sections of the Web site that are password protected, NASFAA's online career center and its online store will be unavailable. Members will also be unable to make any online payments while server maintenance is being performed.

Portions of NASFAA Web Site Will Be Unavailable on Thursday
NASFAA will be performing some maintenance on its servers this Thursday making the password protected areas of the Web site unavailable from 9:00 a.m. EDT to 5:00 p.m. EDT. In addition to sections of the Web site that are password protected, NASFAA's online career center and its online store will be unavailable on Thursday. Members will also be unable to make any online payments while server maintenance is being performed.

Updated Guidance on Tax Filing Extensions and Verification Requirements
NASFAA has received updated guidance from the Department of Education (ED) related to tax filing extensions and verification requirements. ED has recently clarified that if a student submits tax filing extension documentation and W-2 forms, but fails to submit any further documentation before the verification deadline, the student is ineligible for Title IV funds and is required to repay any aid disbursed.

Study Reveals Education Debt Grew Slowly
Although student debt increased rapidly for students in some sectors of higher education during the last four years, the amount of debt accumulated by graduates of public and private four-year colleges grew relatively slowly from 2003-04 to 2007-08. This information and other insights are the focus of a policy brief released yesterday by the College Board based on new data from the U.S. Department of Education's National Postsecondary Student Aid Study (NPSAS). Among all students who completed a degree - associate, bachelor or certificate - in the 2007-08 academic year, 41 percent graduated with no debt. Among all students, those completing any undergraduate degree with education debt increased from 54 percent in 2003-04 to 59 percent in 2007-08.

NASSGAP Finds Simplification Would Significantly Impact State Aid Programs
A survey by the National Association of State Student Grant and Aid Programs (NASSGAP) finds that proposals to limit the collection of family financial resource data would have significant financial, administrative, statutory and regulatory consequences to state need-based financial aid programs, and would result in many more students demonstrating financial need as well as increasing their level of financial need. The survey responses identified as a viable approach to application simplification the development of an embedded "smart FAFSA" will enable each state to obtain the data needed to determine eligibility for their state grant program, and substantially reduce the number of questions students from any one state would need to answer.

Video: Deputy Undersecretary Shireman Delivers Keynote Speech at 2009 NASFAA Conference
Robert Shireman, Deputy Undersecretary at the U.S. Department of Education kicked off the 2009 National Conference with a keynote address that outlined the Administration's plan to transform student aid. Shireman also fielded many questions from NASFAA members attending the conference. NASFAA has posted a video of Shireman's speech and will be posting videos of the question and answer session in the near future. Dept. of Ed Seeks Input From Grad/Prof Schools on DL Conversion Issues
Several Direct Loan training opportunities are currently available for schools and the Federal Student Aid staff is evaluating course offerings to meet schools' needs. In an effort to better assist the Graduate and Professional School sector, the Department is seeking input specifically about training needs for Graduate and Professional schools. In addition, it seeks feedback from Graduate and Professional schools that may have recently transitioned to the Direct Loan Program and who can offer some lessons learned and best practices about the transition process. NASFAA's Graduate/Professional Issues Committee has been provided a specific point of contact at Federal Student Aid to hear our input.

CBO Issues Budget Estimate on HEOA Technical Amendments
The Congressional Budget Office (CBO) last week issued budget estimates for H.R. 1777 (enacted as Public Law 111-39 on July 1, 2009) which amends the Higher Education Act of 1965. The bill made changes to the federal student loan programs; directly appropriated more money for the mandatory portion of the Federal Pell Grant Program; and created a new mandatory grant program, Scholarships for Veterans' Dependents. The CBO estimates that H.R. 1777 will reduce direct spending by $3 million over the 2009-2014 and $1 million over the 2009-2019 periods.

American Council on Education Holds Webinar Featuring Education Secretary Arne Duncan
The Obama administration wants to provide an 'unprecedented amount of resources' to increase college access, affordability and attainment especially for student populations that have historically been underserved by higher education, Education Secretary Arne Duncan said Friday during a Webinar hosted by the American Council on Education (ACE). Duncan recognized that there is widespread disparity in college completion rates for certain student populations -- like first-generation and low-income students. He said that breaking the cycle for these students and families was a top priority for the Obama administration and highlighted the administration's efforts to close the college achievement gap.

National Direct Student Loan Coalition (NDSLC) Mentors Schools Moving to Direct Lending
To supplement the excellent work of the Department of Education's DL Transition team, the Coalition has developed a list of mentors. These volunteer mentors are practicing financial aid administrators from two-year, four-year, public and private institutions that offer certificate, undergraduate and graduate programs. The Direct Loan schools on the mentor list serve enrollments varying from a few hundred students to 51,000. The NDSLC encourages colleagues to contact individuals on the list to discuss implementation strategies or issues and best practices. The list includes financial aid administrators from every type of higher education institution using many different platforms (Financier, EDExpess, BANNER, SAMS, Jenzebar, Powerfaids, etc.) to provide specific advice for an institution's unique situation.

NASFAA Encourages Members to Advocate Lawmakers Over August Recess
NASFAA Interim President and CEO Joan Crissman urged members to reach out to federal lawmakers and advocate on behalf of students when members of the House and Senate return home states for the August recess. This has already been an eventful year and the coming months will likely be even more eventful as Congress considers legislation that would further simplify the FAFSA and needs analysis formula, overhaul the Federal Perkins Loan program, increase and index the Federal Pell Grant, and eliminate the Federal Family Education Loan Program (FFELP). This makes the August recess the perfect time to reach out to your representative and senators in Congress to let them know what proposals you support and any concerns you have.

What Do You Think About the Proposed Perkins Loan Changes?
Today is your last chance to complete NASFAA's Rapid Response Survey on proposed changes to the Federal Perkins Loan Program under the Student Aid and Fiscal Responsibility Act (H.R. 3221). The bill would replace the current Federal Perkins Loan Program with a new Federal Direct Perkins Loan Program. Because this legislation could have implications for all schools receiving Title IV funding -- even those that do not currently participate in the Perkins program -- we are asking primary contacts at all member institutions to complete and return the survey by today. The survey should take no more than 5 minutes to finish and your responses are critical in helping NASFAA formulate our response to the Perkins issues raised in the bill.

Last Chance to Complete Conference Evaluation
This is your final opportunity to complete the on-line evaluation for the 2009 NASFAA National Conference. An evaluation form for the 2009 NASFAA National Conference is now available on line. Please take a few minutes to provide us with your feedback. Your candid evaluation will help the 2010 Conference Committee as they begin the planning process for our 2010 conference to be held in Denver, CO July 18 - 21. The evaluation is available 24 hours a day, 7 days a week and will remain on-line until August 7.

Who Is a Dislocated Worker?
The College Cost Reduction and Access Act of 2007 (CCRAA) modified the criteria applicants for Title IV aid must meet in order to qualify for either an automatic zero expected family contribution (EFC) or Simplified Needs Test (SNT), which calculates an EFC without considering assets. Please note that an independent student without dependents other than a spouse is not eligible for an automatic zero EFC. In addition to meeting an income criterion, independent students or the parent(s) of a dependent student must also meet one of three additional criteria. This article details the changes made by CCRAA.

Reminder: Complete NASFAA Conference On-Line Evaluation by Aug. 7
An evaluation form for the 2009 NASFAA National Conference is now available on line. Please take a few minutes to provide us with your feedback. Your candid evaluation will help the 2010 Conference Committee as they begin the planning process for our 2010 conference to be held in Denver, CO July 18 - 21. The evaluation is available 24 hours a day, 7 days a week and will remain on-line until August 7.

TEACH Grants: Something Old, Something New
At NASFAA's conference in San Antonio, U.S. Department of Education (ED) staff presented an interest session on the Teacher Education Access to College and Higher Education (TEACH) Grant Program. The presentation provided an overview of the program, with useful summaries of challenging issues such as institutional and student eligibility. In reviewing the various program requirements, ED staff clarified some issues on which members have posed questions to NASFAA through its AskRegs service.

Implementing the Guidance in GEN-09-05
The Department of Education (ED) recently issued two Dear Colleague Letters to provide guidance on the use of professional judgment, or PJ, by financial aid administrators. This article addresses the implementation of the guidance contained in GEN-09-05, published on May 8, 2009. On June 11, NASFAA presented a Webinar on PJ, "Professional Judgment: It's Still Your Decision." There is still time to purchase an archived recording of this informative broadcast. For more information, visit the NASFAA Webinar Center.

NASFAA July 2009 Monthly Status Report Now Available
The NASFAA July 2009 Monthly Status Report is now available to members on the NASFAA Web site. The monthly status report contains a monthly summary of NASFAA activities, future plans, and highlights from NASFAA staff. The report is first released to the NASFAA Board of Directors and is then made available to NASFAA members.

Reminder: Complete NASFAA Conference On-Line Evaluation by Aug. 7
An evaluation form for the 2009 NASFAA National Conference is now available on line. Please take a few minutes to provide us with your feedback. Your candid evaluation will help the 2010 Conference Committee as they begin the planning process for our 2010 conference to be held in Denver, CO July 18 - 21. The evaluation is available 24 hours a day, 7 days a week and will remain on-line until August 7.

Take 5 Minutes to Make Your Voice Heard
On Monday, NASFAA emailed a brief survey to all member institutions about the part of the Student Aid and Fiscal Responsibility Act (H.R. 3221) relating to Federal Perkins Loans. The bill would replace the current Federal Perkins Loan Program with a new Federal Direct Perkins Loan Program. Because this legislation could have implications for all schools receiving Title IV funding -- even those that do not currently participate in the Perkins program -- we are asking primary contacts at all member institutions to complete and return the survey by Friday, August 7, 2009. The survey should take no more than 5 minutes to finish, and your responses are critical in helping NASFAA formulate our response to the Perkins issues raised in the bill.

Reminder: Complete NASFAA Conference On-Line Evaluation by Aug. 7
An evaluation form for the 2009 NASFAA National Conference is now available on line. Please take a few minutes to provide us with your feedback. Your candid evaluation will help the 2010 Conference Committee as they begin the planning process for our 2010 conference to be held in Denver, CO July 18 - 21. The evaluation is available 24 hours a day, 7 days a week and will remain on-line until August 7.

NASFAA Submits List of Burdensome Title IV Regulations to the Advisory Committee on Student Financial Assistance
NASFAA submitted a package of burdensome, duplicative, and unnecessary Title IV regulations to the Advisory Committee on Student Financial Assistance on Friday. NASFAA provided the list of burdensome regulations in response to a request by the Advisory Committee for public comments on regulations that are duplicative, no longer necessary, inconsistent with other federal regulations, and/or overly burdensome. The request was part of a review and analysis of federal regulations affecting higher education mandated by the Higher Education Opportunity Act of 2008. NASFAA encourages institutions to submit comments to the Advisory Committee.

Reminder: Complete NASFAA Conference On-Line Evaluation by Aug. 7
An evaluation form for the 2009 NASFAA National Conference is now available on line. Please take a few minutes to provide us with your feedback. Your candid evaluation will help the 2010 Conference Committee as they begin the planning process for our 2010 conference to be held in Denver, CO July 18 - 21. The evaluation is available 24 hours a day, 7 days a week and will remain on-line until August 7.

Federal Reserve Board Submits Final Rules on TILA
Yesterday, the Federal Reserve Board approved final rules on Regulation Z (Truth in Lending) that revise the disclosure requirements for private education loans. NASFAA has provided the following summary on some of the issues that will most affect institutions. A more thorough analysis will be conducted by NASFAA once the regulations have been published in the Federal Register.

FTC Provides Another Three-Month Extension for 'Red Flag Rule' Enforcement
The Federal Trade Commission announced it will delay enforcement of the new "Red Flags Rule" another three months -- until Nov. 1, 2009 -- to give creditors and financial institutions more time to develop and implement written identity theft prevention programs. The FTC also said its staff will redouble its efforts to educate small businesses and other entities about compliance with the Red Flags Rule and ease compliance by providing additional resources and guidance to clarify whether businesses are covered by the Rule and what they must do to comply.

Education Secretary Arne Duncan to Participate in Aug. 7 ACE Webinar
Education Secretary Arne Duncan will participate in a webinar on Aug. 7 to discuss the Obama administration’s higher education agenda and take questions from campus leaders. American Council on Education President Molly Corbett Broad will also participate. The webinar is scheduled for 2 p.m. EDT and is co-sponsored by the National Association of College and University Business Officers.

NASFAA Issues Summary and Analysis on School-Based Loan NPRM
On Tuesday, the Federal Register posted proposed rules on school-based loan provisions of the Higher Education Act, as amended by the Higher Education Opportunity Act (HEOA) passed in August 2008. These rules were developed through the negotiated rulemaking (negreg) process. NASFAA representatives did participate on Team II (the team that tackled these issues) and since negotiators did reach consensus on the proposed rules, NASFAA is prohibited from commenting negatively on the NPRM. However, NASFAA members are free to raise issues as they see fit. NASFAA has provided a summary of the proposed regulations for easier consumption and analysis by members.

How to Respond to a Notice of Proposed Rulemaking
NASFAA strongly urges all financial aid administrators to review and respond to the Department of Education's Notices of Proposed Rulemaking (NPRMs). Responding to NPRMs provides the financial aid community with a unique and powerful opportunity to help shape financial aid regulations. In enacting the laws that govern the Title IV programs, Congress often leaves much of the detailed administration of the programs to the Department of Education. The Department accomplishes this through regulations -- which establish the how and when of financial aid administration. This article provides some guidance and tips to help you respond to NPRMs.

Please Complete NASFAA Conference Evaluation On-Line
An evaluation form for the 2009 NASFAA National Conference is now available on line. Please take a few minutes to provide us with your feedback. Your candid evaluation will help the 2010 Conference Committee as they begin the planning process for our 2010 conference to be held in Denver, CO July 18 - 21. The evaluation is available 24 hours a day, 7 days a week and will remain on-line until August 7.

CBO Director Adds New Fuel to the Debate on FFELP/DL Budget Scoring
On Monday, Congressional Budget Office (CBO) Director Douglas Elmendorf issued a revised estimate on the savings that would come from eliminating the Federal Family Education Loan Program (FFELP). "CBO found that after accounting for the cost of such risk ... the proposal to replace new guaranteed loans with direct loans would lead to estimated savings of about $47 billion over the 2010-2019 period - about $33 billion less than CBO's estimate under standard credit reform treatment," Elmendorf wrote. Republicans and Democrats quickly issued statements on the letter.

ED and NASFAA Conference Participants Talk About A New Beginning for Experimental Sites
The NASFAA Conference in San Antonio earlier this month provided the Department of Education with a forum to start a conversation with financial aid administrators about how it wants future experimental sites to be conducted. The purpose of experiments is to generate evidence-based recommendations concerning possible changes to the law, regulations, and administrative procedures that impact a large number of students and schools. ED believes that some past experiments failed to achieve intended results because they were not well designed. Therefore, it is placing greater emphasis on the design of future experiments. In addition, ED is modifying its approach to the selection of new experiments by implementing a new more collaborative two-phase selection process.

NASFAA Board of Directors Meets in San Antonio
NASFAA's Board of Directors met in regular session in San Antonio, Texas July 10-11. This article summarizes the meeting which included updates on NASFAA leadership, the National Conference, the Dallas Martin Endowment, the National Conversation Initiative, and the 12 NASFAA Committees.

Secretary Sebelius Makes Recovery Act Funding Available to Expand Health Professions Training
HHS Secretary Kathleen Sebelius today announced the availability of $200 million to support grants, loans, loan repayment, and scholarships to expand the training of health care professionals.  The funds are expected to train approximately 8,000 students and credentialed health professionals by the end of fiscal year 2010. Today's funds are part of the $500 million allotted to HHS' Health Resources and Services Administration (HRSA), to address workforce shortages under the American Recovery and Reinvestment Act (ARRA).

2009-10 Mid-Year Simplification Initiatives Improve Application Process
The Department of Education's efforts to simplify the financial aid process by modernizing the online application are moving ahead full steam, and a number of significant improvements are underway for the current academic year. At the NASFAA conference in San Antonio last week, ED staff reviewed recent midyear changes to 2009-10 application processing, and unveiled still more planned enhancements to current year functionality.

NASFAA Leaders Press Ahead at National Conference
NASFAA officially kicked off the 2009 National Conference on Sunday with a general session featuring Robert Shireman, Deputy Undersecretary at the U.S. Department of Education. Before Shireman, delivered his remarks, 2008-09 National Chair Dave Gruen gave an update of the association's plans to move forward after NASFAA President and CEO Dr. Phil Day took a voluntary, unpaid leave of absence to deal with legal issues stemming from his employment as Chancellor of the City College of San Francisco. Gruen assured NASFAA members that the Day's departure would not affect NASFAA's ability to accomplish its goals. "I want to make it clear that NASFAA is not now and has never been leaderless," Gruen said. "We have three National Chairs and a strong senior management team in place to handle the day-to-day operations of NASFAA."

NASFAA President Takes Voluntary, Unpaid Leave of Absence - NASFAA Work to Continue Uninterrupted
NASFAA President and CEO Dr. Phil Day has been granted a voluntary, unpaid leave of absence by the Board of Director's leadership after being charged by the San Francisco District Attorney in connection with his employment as Chancellor of San Francisco City College. "While these developments are unrelated to NASFAA, NASFAA members or Dr. Day's tenure at NASFAA, Dr. Day has requested a voluntary, unpaid leave of absence to deal with this situation so that this development will not distract the association from its essential work," NASFAA's 2008-09 National Chair Dave Gruen wrote in a letter to NASFAA members last night. Gruen assured members that NASFAA's vital work - including the National Conference in San Antonio - will continue uninterrupted.

ED Takes Steps to Ease Schools' Transition into Direct Lending
Yesterday, the Department of Education began sending letters to college presidents and financial aid directors at schools currently participating in the Federal Family Education Loan Program (FFELP) to inform them of the steps the Department is taking to ease the transition into the Direct Loan program. One such step is the establishment of accounts to enable schools to send and receive Direct Loan records and reports electronically through the Common Origination and Disbursement (COD) system. A Department official made it clear that the establishment of these electronic accounts does not obligate any school to move into the Direct Loan program now, but if schools choose to transition, the account will already be established.

Congressional Group Urges House Education Committee to Preserve Aspects of FFELP
Thirty-one members of Congress are urging the House Education and Labor Committee to preserve certain aspects of the FFEL program when it marks up the 2010 Budget reconciliation bill, an action it is expected to undertake very shortly. In letters to Chairman George Miller and Ranking Member John Kline, a group of Republican and Democratic congressional members expressed concern over the effects of an abrupt termination of the FFELP program. Citing possible job losses in the loan business as well as disruption of servicing and administration at schools that don't currently participate in Direct Lending, the group recommended that the education committee consider alternatives to ending the FFELP and explore the creation of a new private sector-based loan financing facility.

NASFAA Title IV Eligibility Checklist Updated
NASFAA has updated its Title IV Eligibility Checklist to reflect current statutory and regulatory provisions, resource references, and U.S. Department of Education School Participation Team contact information. The checklist highlights the major issues that an institution should consider when it adds new academic programs or additional locations.

San Antonio Conference Transportation Options
Getting to the NASFAA Conference hotels from the San Antonio International Airport is quite easy. The SATRANS Airport Express shuttle charges $18.00 per person to downtown hotels, or $32.00 for a round trip ticket. The least expensive option is the VIA bus company which offers rides to downtown for about $1 Monday through Sunday (transfers may be required). Taxi cabs are also available at the lower level curbside, outside of baggage claim, at Terminal 1 and at the front curbside of Terminal 2 and cost $20 to $23.