Todays News Feed

State and Regional Financial Aid Associations Advocate Lawmakers on Key Student Aid Issues

NASFAA — Wed, 22 Feb 2012 00:00:00 GMT

More than 30 financial aid administrators (FAAs) visited the offices of more than two dozen members of Congress serving on the Senate and House education committees earlier this month to advocate on a number of federal student aid issues. FAAs from the Eastern Association of Student Financial Aid Administrators (EASFAA), the Delaware, District of Columbia and Maryland Association of Student Financial Aid Administrators (DE-DC-MD ASFAA) and the Southern Association of Student Financial Aid Administrators (SASFAA) visited the offices of lawmakers on the Senate Health, Education, Labor and Pensions (HELP) Committee and lawmakers on the House Education and the Workforce Committee.

02-21: Calculating the 2011-12 and 2012-13 Iraq and Afghanistan Service Grant Award

NASFAA — Wed, 22 Feb 2012 00:00:00 GMT

This Electronic Announcement provides information on calculating the Iraq and Afghanistan Service Grant award for the 2011-12 and 2012-13 award years. The Iraq and Afghanistan Service Grant is awarded to a student whose parent or guardian died as a result of performing military service in Iraq or Afghanistan and the student is not receiving a Federal Pell Grant only because of that program's need requirement.

Comment Request: Federal Direct Loan Program/FFEL Program Deferment Request Forms

NASFAA — Wed, 22 Feb 2012 00:00:00 GMT

These forms serve as the means by which borrowers in the Federal Direct Loan and Federal Family Education Loan (FFEL) Programs may requires deferment of repayment on their loans if they meet certain statutory and regulatory criteria. The Department of Education uses the information collected on these forms to determine whether a borrower meets the eligibility requirements for the specific deferment type that the borrower has requested.

Comment Request: Federal Direct Loan and FFEL Program Mandatory Forbearance Requests.

NASFAA — Wed, 22 Feb 2012 00:00:00 GMT

These forms serve as the means by which a borrower may request forbearance of repayment on his or her Federal Direct Loan or Federal Family Education Loan (FFEL) Program loans based on participation in an eligible internship/residency program, national guard duty, receiving benefits under the Department of Defense's Student Loan Repayment Program, or having a federal education loan debt burden that equals or exceeds 20 percent of the borrower's monthly gross income.

Comment Request: Income Contingent Repayment Plan and Income-Based Repayment Plan Alternative Documentation of Income

NASFAA — Wed, 22 Feb 2012 00:00:00 GMT

The Income-Contingent Repayment (ICR) Plan and Income-Based Repayment (IBR) Plan Alternative Documentation of Income form serves as the means by which a borrower who is repaying Direct Loan Program loans under the ICR or IBR plans provides the Department of Education with alternative documentation of the borrower's income if the borrower's adjusted gross income (AGI) is not available from the IRS, or if the Department believes that the borrower's most recently reported AGI does not accurately reflect the borrower's current income.

The 'Bennett Hypothesis,' on Why College Prices Rise, Is Alive and Well

NASFAA — Wed, 22 Feb 2012 00:00:00 GMT

"William J. Bennett was probably too simplistic when he famously proclaimed 25 years ago that increased student aid makes it easier for colleges to raise their tuition, says a new policy paper from the Center for College Affordability and Productivity, but he wasn't necessarily wrong," the Chronicle of Higher Education reports. "The assertion by the former secretary of education, which has come to be known as the Bennett hypothesis, has been widely debated over the years, with some academics arguing that it was unfounded and others that it was dead-on."

Report Tracks Differential Tuition at Public Colleges

NASFAA — Wed, 22 Feb 2012 00:00:00 GMT

"Some form of differential tuition, or tuition that varies by academic program, is charged at 143 public colleges, according to a new report from the Cornell Higher Education Research Institute," the Chronicle of Higher Education reports. "The proportion of colleges offering differential tuition is highest - 41 percent - among doctoral institutions, the report says, and the majors most likely to assess differential charges are nursing, business, and engineering."

Community Colleges Work to Keep Low-Income Students in School

NASFAA — Wed, 22 Feb 2012 00:00:00 GMT

"Community colleges in five states have partnered with Single Stop USA, a nonprofit that helps low-income students and their families apply for public aid, as well as legal and financial counseling and free tax preparation," according to U.S. News and World Report. "Every year, $65 billion in benefits go unclaimed, the group estimates."

Justices Take Up Race as a Factor in College Entry

NASFAA — Wed, 22 Feb 2012 00:00:00 GMT

"In a 2003 decision that the majority said it expected would last for 25 years, the Supreme Court allowed public colleges and universities to take account of race in admission decisions," the New York Times reports. "On Tuesday, the court signaled that it might end such affirmative action much sooner than that."

Maximizing Next Year's Financial Aid for College

NASFAA — Wed, 22 Feb 2012 00:00:00 GMT

"Since most folks need financial aid for college costs each year, it can also pay to think about financial planning now: Doing so can increase financial aid when you complete and file the FAFSA, or federal financial aid application, in future years," CBS MoneyWatch reports. "Concepts here are simple enough: use financial strategies that can reduce your base year income and reduce includable assets."

California: Community Colleges Hit by $149-Million Shortfall

NASFAA — Wed, 22 Feb 2012 00:00:00 GMT

"In the latest fallout from California's ongoing fiscal crisis, the state's 112 community colleges reported that revenues from students' fees are $107 million below projections for the current fiscal year as more economically strapped students seek and receive fee waivers," the Los Angeles Times reports. "Community colleges had expected to obtain about $456 million in fee revenues this year, but have collected only about $350 million to this point, said Dan Troy, vice chancellor for finance."

New Jersey: Public Colleges Welcome First State Aid Increase in Years in Gov. Chris Christie's Budget Proposal

NASFAA — Wed, 22 Feb 2012 00:00:00 GMT

"For the state’s public colleges, the first state aid increase in years could mean a smaller or possibly even zero tuition increase for the 2012-13 academic year, though college presidents were cautious about promising too much before they know more details," the Press of Atlantic City reports. "The budget also includes funding for financial aid and scholarship programs."

Opinion: A Better Approach to 'Gainful Employment'

NASFAA — Wed, 22 Feb 2012 00:00:00 GMT

"On February 9, Senator Ron Wyden, Democrat of Oregon, introduced a bill on the Senate floor entitled the 'Student Right to Know Before You Go Act,'" American Institutes for Research Vice President for New Education Initiatives Mark Schneider writes for Inside Higher Ed. "While its chances of passage are likely low, it is a smart piece of legislation that could help transform our expensive and inefficient system of postsecondary education."

Opinion: To Fix Student Lending, Rethink the Concept

NASFAA — Wed, 22 Feb 2012 00:00:00 GMT

"This past fall, Occupy Wall Street protesters around the country called for far-reaching changes in our society, including forgiveness of student-loan debt," Center for College Affordability and Productivity Research Director Andrew Gillen and American Enterprise Institute scholar Richard Vedder write in the Chronicle of Higher Education. "While we believe loan forgiveness is a bad idea for a variety of reasons, we also think the protesters are right in calling attention to the nation's Byzantine and inefficient system of student lending."

Opinion: Can We Keep Colleges Affordable?

NASFAA — Wed, 22 Feb 2012 00:00:00 GMT

"The big story in public university finance has not been, as many people would like to believe, lavish spending," Spencer Foundation President Michael McPherson and George Washington University Senior Fellow Sandy Baum write for the Chicago Tribune. "It has been the shift in who pays the bills."

College Aid Recipients Donate Less as Alumni

NASFAA — Wed, 22 Feb 2012 00:00:00 GMT

"Does getting beget giving? Not when it comes to college alumni donations, a new study suggests," Catherine Rampell writes for the New York Times Economix blog. "A working paper by Jonathan Meer at Texas A&M and Harvey Rosen at Princeton followed a group of about 13,000 alumni who graduated from an unnamed, selective research university between 1993 and 2005."

02-17: Preliminary Information - Implementation of the 12 Semester Lifetime Limit for Federal Pell Grants

NASFAA — Tue, 21 Feb 2012 00:00:00 GMT

In Dear Colleague Letter GEN-12-01 posted on Jan. 18, 2012, the Department of Education informed the community of changes made to the Title IV student aid programs by the recently enacted Consolidated Appropriations Act of 2012. Among those changes was an amendment that reduced the duration of a student’s eligibility to receive a Federal Pell Grant from 18 semesters (or its equivalent), to 12 semesters (or its equivalent).

02-17: Webinar - Requirements for the Approval of a Comprehensive Transition and Postsecondary (CTP) Program

NASFAA — Tue, 21 Feb 2012 00:00:00 GMT

Federal Student Aid has made available the webinar on the requirements for the approval of a Comprehensive Transition and Postsecondary (CTP) Program. A Comprehensive Transition and Postsecondary (CTP) Program is an academic program that serves students with intellectual disabilities.

02-17: COD Processing Update

NASFAA — Tue, 21 Feb 2012 00:00:00 GMT

An Electronic Announcement was released to schools from the COD School Relations Center on Feb. 16, 2012 and is posted on the Information for Financial Aid Professionals (IFAP) website. This announcement is the first in a series of Direct Loan closeout announcements that informs schools of the closeout deadline for the 2010-11 Program Year.

Obama Takes Tougher Stance on Higher Education

NASFAA — Tue, 21 Feb 2012 00:00:00 GMT

"Access to college has been the driving force in federal higher education policy for decades," the Associated Press reports. "But the Obama administration is pushing a fundamental agenda shift that aggressively brings a new question into the debate: What are people getting for their money? Students with loans are graduating on average with more than $25,000 in debt."

In Today's Economy, How Far Can A GED Take You?

NASFAA — Tue, 21 Feb 2012 00:00:00 GMT

"Every year, roughly 750,000 high school dropouts try to improve their educational and employment prospects by taking the General Educational Development test, or GED, long considered to be the equivalent of a high school diploma," NPR reports. "The latest research, however, shows that people with GEDs are, in fact, no better off than dropouts when it comes to their chances of getting a good job."

Colleges That Claim to Meet Full Financial Need: These Schools Report They Fill Any Financial Gaps in Admitted Students' Funding.

NASFAA — Tue, 21 Feb 2012 00:00:00 GMT

"Some schools make a concerted effort to keep their final prices within a student's ability to pay, based on what's formally known as your expected family contribution (EFC)," according to U.S. News and World Report. "Among 1,171 institutions that reported the statistic to U.S. News, 62 colleges claim to have met, on average, 100 percent of their admitted full-time undergraduate students' financial need for fall 2010."

Get Savvy and You Can Boost College Aid

NASFAA — Tue, 21 Feb 2012 00:00:00 GMT

"It helps to understand how the Free Application for Federal Student Aid counts assets and income. It does so differently for parents and students," the Oregonian reports. "FAFSA determines your expected family contribution to college, or your EFC. The higher your EFC, the less aid you'll get, and the more you'll pay out-of-pocket."

As Ivies Boost Financial Aid, Teams Up Their Game

NASFAA — Tue, 21 Feb 2012 00:00:00 GMT

"Harvard is currently on top of the Ivy League basketball standings," NPR reports. "To those who follow the Ivy League teams closely, some of that success is attributable to two powerful Ivy League recruiting tools: academic reputation and a big increase in financial aid."

South Carolina: 15 Charged with Student Loan Fraud

NASFAA — Tue, 21 Feb 2012 00:00:00 GMT

"Fifteen people were indicted Friday on charges they took out federal student loans to attend college for people who never intended to go to college," the Post and Courier reports. "The defendants were charged with mail fraud, wire fraud and financial aid fraud, according to the indictment from the U.S. District Court of South Carolina, Charleston Division."

Florida Set for New Cut in Spending on Colleges

NASFAA — Tue, 21 Feb 2012 00:00:00 GMT

"Florida lawmakers contend that education is essential to high-wage jobs in the state, but the Legislature is again expected to slash millions of dollars from the budget for higher education and may usher in another round of tuition increases," the New York Times reports. "A proposal in the House would reduce state financing by nearly $250 million next year and would allow universities to increase tuition by as little as 8 percent and as much as 15 percent."

Illinois: Community College Enrollment Falls as Need for Paycheck Trumps Education

NASFAA — Tue, 21 Feb 2012 00:00:00 GMT

"After record-high enrollment at suburban community colleges over the last few years, numbers are falling slightly as students...must balance higher education with the need to earn a paycheck during continued economic uncertainty," the Chicago Tribune reports. "Statewide, the spring 2012 community college head count is down almost 3 percent - to 370,816 from 381,582 - from the same semester last year."

Conn. University: Competition for Free Tuition

NASFAA — Tue, 21 Feb 2012 00:00:00 GMT

"[The University of New Haven's] new business school dean, a former MasterCard executive responsible for its 'Priceless' advertising campaign, has issued a challenge to the university's incoming freshmen: Bowl me over with your entrepreneurial idea and win free tuition for your undergraduate degree," the Associated Press reports.

Opinion: What College Students Need to Know

NASFAA — Tue, 21 Feb 2012 00:00:00 GMT

"The popular college rankings focus primarily on prestige as measured by the SAT scores of incoming students and how many applicants are turned away," the New York Times writes. "An initiative started last fall by the Obama administration could help families go beyond these limited, and far too easily gamed, indexes to learn quickly and easily how a college stacks up against its competitors nationally on important metrics like graduation rates, what a degree actually costs and how much debt a student can expect to incur by graduation day."

Opinion: Let’s Get Serious About 'Equality of Opportunity'

NASFAA — Tue, 21 Feb 2012 00:00:00 GMT

"Repeated studies have found that the United States now trails other countries, including much of Europe, in the ability to move up the economic ladder," Jay Bookman writes for the Atlanta Journal-Constitution. "One explanation for that change is access to college, especially in a global economy in which education is critical."

A Step-By-Step Guide For Eliminating Private Student Loan Debt

NASFAA — Tue, 21 Feb 2012 00:00:00 GMT

"First, sit down and look at your overall financial picture," reporter Katie Zemtseff writes for the Brazen Life blog. "Figure out how much you really need to live by calculating essential expenses like food and rent."

Explore New Options to Repay Medical School Loans

NASFAA — Tue, 21 Feb 2012 00:00:00 GMT

"The federal government has embarked upon programs aimed at attracting medical residents to work in HPSAs (Health Professional Shortage Areas) for three years after graduation, at which time they would receive tuition and stipend reimbursements for each year of HPSA service," Veritas Prep writes in U.S. News and World Report's Medical School Admissions Doctor blog.

Negotiators Wrap Up Second Week of Deliberating Over Proposed Changes to Student Loan Regulations

NASFAA — Fri, 17 Feb 2012 00:00:00 GMT

Negotiators concluded week two of the student loan negotiated rulemaking process Thursday, with tentative agreement on six issues and pending discussion, recommendations and internal discussion set to take place between now and the committee’s final meeting in March. In the second of three week-long meetings, the student loan committee is negotiating 25 student loan regulatory issues that will ultimately result in a package of proposed rules to be published for public comment before promulgation of final rules.

02-16: Direct Loan Closeout Information for 2010-11 Program Year

NASFAA — Fri, 17 Feb 2012 00:00:00 GMT

The Direct Loan closeout deadline for the 2010-11 Program Year is Tuesday, July 31, 2012. This is the last processing day of the program year, so all school data must be received and accepted by this date in order to be included in a school’s final Ending Cash Balance for the year.

02-16: Draft FISAP and Instruction Booklet

NASFAA — Fri, 17 Feb 2012 00:00:00 GMT

The Fiscal Operations Report for 2011-12 and Application to Participate for 2013-14 (FISAP) in the Campus-Based programs is currently under review by the Office of Management and Budget (OMB). The Department of Education is providing the Draft FISAP and accompanying instructions so that schools can prepare to gather necessary information for the actual submission of its information in the FISAP that will be available by Aug. 1, 2012.

Senators Introduce Second Bill Aimed at For-Profit Colleges’ Military Revenue

NASFAA — Fri, 17 Feb 2012 00:00:00 GMT

"U.S. senators have introduced a second bill designed to slow the flow of military money to for-profit colleges," the Chronicle of Higher Education reports. "The bill, sponsored by Sen. Tom Carper, a Democrat of Delaware, would count military and veterans’ benefits in the federal share of the 90/10 rule, which requires for-profit colleges to receive at least 10 percent of their revenue from nonfederal sources in order to be eligible to receive federal student aid."

Consumer-Protection Agency Seeks Oversight Over Debt Collectors

NASFAA — Fri, 17 Feb 2012 00:00:00 GMT

"The Consumer Financial Protection Bureau wants to add debt collectors to its oversight agenda," the Chronicle of Higher Education reports. "In a proposed rule announced today, the bureau is seeking to make debt collectors with more than $10-million in annual receipts subject to its supervision."

Leaving College With a Degree and Thousands in Debt

NASFAA — Fri, 17 Feb 2012 00:00:00 GMT

"Americans are graduating from college today with mountains of debt that will take years to dig out from under," the Philadelphia Inquirer reports. "Two-thirds of 2011 graduates of four-year colleges accumulated an average of $34,000 in debt each, according to FinAid.org - more than triple the amount of a 1992 graduate."

Opinion: Is Financial Aid Really Making College More Expensive?

NASFAA — Fri, 17 Feb 2012 00:00:00 GMT

"Financial aid, whether it's a cheap loan, a work-study job at the campus library, or a grant, is supposed to make college more affordable and accessible for students," Jordan Weissmann writes in The Atlantic. "But what if, by handing money out to undergrads, the government is simply encouraging schools to spend more and jack up tuition?"

Opinion: Forget About Tomorrow's Test. Party Tonight With Obama's New Budget!

NASFAA — Fri, 17 Feb 2012 00:00:00 GMT

"As any parent will tell you, the best decision is to skip the party and study for the test," President of RK Research Stephen Richer writes for Forbes Magazine. "But as any college student, dieter, or American homeowner can tell you, instant gratification is chosen more often than not."

Higher Education and Higher Tuition

NASFAA — Fri, 17 Feb 2012 00:00:00 GMT

"The increasing cost of obtaining an education was highlighted when President Obama revealed his latest budget on February 13, 2012," lawyer Christopher Brauchli writes for the Huffington Post College blog. "According to the Bureau of Labor Statistics, in recent years college tuition has gone up at roughly twice the rate of inflation."

Obama’s Proposed Budget Seeks To Prevent Doubling Of Student Loan Interest Rate

NASFAA — Fri, 17 Feb 2012 00:00:00 GMT

"The Obama Administration's budget request to Congress for fiscal year 2013 includes several proposals related to student loans," Heather Jarvis writes in her Ask Heather Jarvis blog. "In the proposed budget, the President recommends extending the 3.4% interest rate on undergraduate Subsidized Stafford student loans for one year, preventing the interest rate from doubling to 6.8 % on July 1."

Student Loans Near $1 Trillion Hurting Young Buyers: Mortgages

NASFAA — Thu, 16 Feb 2012 00:00:00 GMT

"As outstanding student debt approaches $1 trillion, it’s one more reason record-low interest rates aren’t doing more to boost housing," Businessweek reports.

For-Profit Colleges Lose Incentive to Target Vets Under Bills

NASFAA — Thu, 16 Feb 2012 00:00:00 GMT

"For-profit colleges would lose a financial incentive to enroll soldiers and veterans under U.S. Senate and House bills aimed at curbing what sponsors call aggressive marketing of subpar programs," Bloomberg reports. "For-profit colleges such as Apollo Group Inc. (APOL)’s University of Phoenix can get as much as 90 percent of their revenue from federal financial-aid programs."

Plan Offers $5 Billion to Improve Teaching

NASFAA — Thu, 16 Feb 2012 00:00:00 GMT

"The Obama administration will propose Wednesday a $5 billion competition aimed at overhauling how America's teachers are trained, paid and granted tenure, the latest sign of the growing focus on the quality of teaching in public schools," the Wall Street Journal reports. "Secretary of Education Arne Duncan will unveil the plan during a town-hall meeting Wednesday, officials said, and will call on states to work with teachers unions and colleges of education to overhaul the teaching profession, which has faced withering criticism in recent years."

60 Ways to Leave a Flagship, With a Degree, Sooner

NASFAA — Thu, 16 Feb 2012 00:00:00 GMT

"Better freshman advising and higher tuition for students who stick around too long are two of the keys that could help the University of Texas's flagship campus raise its four-year graduation rate from 50 percent to 70 percent by 2016, according to a report released Wednesday," the Chronicle of Higher Education reports. "After a six-month study, the Task Force on Undergraduate Graduation Rates came up with more than 60 recommendations to help the university reach that goal, starting with the class that enters this fall."

Student Loan Debt Forcing More Borrowers Into Bankruptcy

NASFAA — Thu, 16 Feb 2012 00:00:00 GMT

"The National Association of Consumer Bankruptcy Attorneys recently reported that 81 percent of those professionals surveyed said that the number of potential clients with sizable student loanbalances has increased either “significantly” or “somewhat” in the last three or four years," Business Insider reports.

Minnesota: For Aid, FAFSA Neglects Students’ Special Financial Circumstances

NASFAA — Thu, 16 Feb 2012 00:00:00 GMT

"Students cut off financially by their parents can slip through the cracks when the University of Minnesota awards financial aid," the Minnesota Daily reports.

California: Three Merced County Residents Arrested on Charges of Student Aid Fraud

NASFAA — Thu, 16 Feb 2012 00:00:00 GMT

"U.S. Attorney Benjamin B. Wagner announced the arrest Tuesday of Piersha Woolridge, 34, and Yvette August, 41, both of Atwater; Kim Gray, 39, of Los Banos; and Keith Woolridge, 41, of Fresno," the Merced Sun-Star reports.

Current College Students Struggle to Survive Rising Tuitions

NASFAA — Thu, 16 Feb 2012 00:00:00 GMT

"Tuition rates can be prohibitive. Prospective students know this and plan their academic careers accordingly," Tanya Caldwell writes for the New York Times Choice blog. "What students may not consider, however, are the costs that can keep them from graduating once they’re enrolled: tuition increases."

Using Budget Tools to Make College Affordable

NASFAA — Thu, 16 Feb 2012 00:00:00 GMT

"President Obama’s budget uses a variety of tools to keep postsecondary education within reach for American families, including increased grant and work-study funding, tax credits for college tuition, and expanded access to student loans," Julie policy analysts Margetta Morgan and Stephen Steigleder write for the Center for American Progress. "But the president’s budget also reflects the fact that making college more affordable means reducing the cost of tuition, not just increasing financial aid."

Student Loan Debate Rages On

NASFAA — Thu, 16 Feb 2012 00:00:00 GMT

"The growing chorus of concern over the rapid growth of student debt is being heard in the hushed and hallowed halls of Congress and at some of our nation's foremost educational institutions," Equal Justice Works writes for U.S. News and World Report's Student Loan Ranger blog. "In Congress, where the move for reform has recently been incremental, the latest concern is that the interest rates on subsidized Stafford student loans will double from 3.4 to 6.8 percent on July 1."

Beat the Stress of Verification with 'Using Federal Tax Returns in Need Analysis'

NASFAA — Wed, 15 Feb 2012 00:00:00 GMT

Beat the stress of verification with NASFAA’s annual reference tool on how to use federal income tax returns, forms, and schedules in need analysis for the 2012-13 award year. NASFAA’s Using Federal Tax Returns in Need Analysis has been updated and includes cross-references in the "Tax Forms and Schedules Comparison" and "Guide to Implied Income and Assets" charts to the appropriate 2011 IRS tax forms and line items, as well as to the applicable 2012-13 FAFSA questions.

Student Loan Negotiators Push for More Relief for Borrowers in Rehabilitation

NASFAA — Wed, 15 Feb 2012 00:00:00 GMT

Negotiators at the student loan negotiated rulemaking meeting entered an impasse Tuesday over how a borrower’s monthly payment is calculated in Direct Loan or FFEL loan rehabilitation. In the second of three week-long meetings, the student loan committee is negotiating 25 student loan regulatory issues that will ultimately result in a package of proposed rules to be published for public comment before promulgation of final rules.

Same-Sex Parenting: A Perplexing Application Process

NASFAA — Wed, 15 Feb 2012 00:00:00 GMT

This past week the Washington House passed a gay marriage bill right after a federal appeals court declared California’s gay marriage ban unconstitutional. However, for federal financial aid purposes, and due to the Defense of Marriage Act (DOMA), the treatment of parents who are in a same-sex marriage is not the same as the treatment of opposite sex parents. NASFAA recently sought guidance from the Department of Education (ED) regarding PLUS loan eligibility in a parent/stepparent same-sex household, when a stepparent has also adopted the student. Specifically, should the parent still be considered a parent for Title IV purposes and thus be allowed to borrow a PLUS or does adoption supplant the biological parent in this situation?

ANN-12-05: Live Internet Webinar - Business Officer Training Q&A

NASFAA — Wed, 15 Feb 2012 00:00:00 GMT

The Department of Education will make available instructor-led, online training for business officers that provides an opportunity to address questions related to key aspects of managing funds at institutions participating in the Title IV federal student aid programs. The webinar will address recent questions raised by the financial aid community related to the business office and the administration of the Title IV programs, as well as provide an open question and answer period with policy staff.

02-14: CPS Reprocessing on Feb. 15, 2012 to Update Pell Eligibility Based on 2012-13 Pell Grant Payment and Disbursement Schedules

NASFAA — Wed, 15 Feb 2012 00:00:00 GMT

The Department of Education will reprocess 2012-13 Institutional Student Information Records (ISIRs) for applicants who applied prior to Feb. 13, 2012 in order to recalculate Federal Pell Grant eligibility according to the 2012-13 payment and disbursement schedules published in Dear Colleague Letter P-12-01. This Central Processing System (CPS) reprocessing will take place today, Feb. 15, 2012.

02-14: Special Direct Consolidation Loan Information - Payoff Process and NSLDS Reporting Information for FFEL Lenders and Lender Servicers

NASFAA — Wed, 15 Feb 2012 00:00:00 GMT

The Department of Education has informed the financial aid community about the availability of the Special Direct Consolidation Loan opportunity that it is offering through the Federal Direct Loan Program. This short-term consolidation opportunity began on Jan. 17, 2012 and will be available to eligible borrowers through June 30, 2012.

5 Things President Obama's 2013 Budget Does For Higher Education

NASFAA — Wed, 15 Feb 2012 00:00:00 GMT

"Obama's budget would increase Education Department spending to $69.8 billion -- a 2.5 percent jump," the Huff Post College reports. "This additional funding towards education is the highest increase of any domestic department in the federal government. "

Report Suggests Policies to Better Serve Nontraditional Students

NASFAA — Wed, 15 Feb 2012 00:00:00 GMT

"The Advisory Committee on Student Financial Assistance released a report on Tuesday highlighting input from a recent hearing on the challenges nontraditional students face, best practices from states and colleges, and ideas of how the federal government could help, particularly by improving data collection and financial aid," the Chronicle of Higher Education reports.

College Debt Looms Over Economy And Students

NASFAA — Wed, 15 Feb 2012 00:00:00 GMT

"The number of former students who are defaulting on student loans and the size of the loans has the potential to adversely impact the entire U.S. economy, as well as hurt the people holding the loans, according to experts in the field," Financial Advisor Magazine reports. "Student loans have been characterized by some as the next big crisis after the home mortgage debacle."

Business Leaders See Higher Education as Hampering Economic Growth

NASFAA — Wed, 15 Feb 2012 00:00:00 GMT

"The rising cost of higher education, its indifferent quality, its resistance to change, and its lack of accountability are endangering the nation’s prospects for future economic growth, according to a report on the views of business executives that was released [Tuesday] by Public Agenda and the Committee for Economic Development," the Chronicle of Higher Education reports.

Student Loan Crisis Busts Retirement Savings

NASFAA — Wed, 15 Feb 2012 00:00:00 GMT

"Parents who borrow money to pay for their children's college education are exacerbating a growing student loan crisis," CNBC reports. "Student loan debt amassed by parents is growing faster than loans taken out by the student."

Gifts to Colleges Rose 8.2% in 2011, Survey Finds

NASFAA — Wed, 15 Feb 2012 00:00:00 GMT

"After two lackluster years, donations to U.S. colleges and universities rose last year by a healthy 8.2 percent, to an estimated $30.3-billion, according to a report by the Council for Aid to Education," the Chronicle of Higher Education reports. "The total raised during the 2011 fiscal year, while economic news was mixed, comes close to the $31.6-billion brought in during 2008, the best year ever for giving to colleges."

The American Opportunity Tax Credit: A Wasteful Way to Provide Student Aid

NASFAA — Mon, 13 Feb 2012 00:00:00 GMT

Feb. 13, 2012 - Stephen Burd references his Student Aid Perspectives article on the NASFAA website in his post for The Quick and The Ed blog about the American Opportunity Tax Credit as "an ineffective and wasteful way to help students and families pay for college."

Higher Education’s Increasing Disdain for Virtue

NASFAA — Wed, 15 Feb 2012 00:00:00 GMT

"One of the major rationales for public subsidies of higher education is that colleges are supposed to make students more virtuous–better persons," Richard Vedder writes in the blog for the Center For College Affordability & Prodcutivity. "Yet today, not only is virtue downplayed, it is actually often disdained, as evidenced by the behavior of the colleges themselves."

To Limit Student Loan Debt, Try Savings

NASFAA — Wed, 15 Feb 2012 00:00:00 GMT

"We know that student loan debt was a problem long before the Occupy Wall Street protesters added it to their list of grievances," Reid Cramer writes for the New America Foundation's Ladder blog. "The recession has hit the younger end of the workforce particularly hard. Instead of looking to student loans as the only way to access a post-secondary education, we need to do a better job helping families save for college."

Negotiators Seek Better Protection for Struggling Borrowers in Federal Repayment Programs

NASFAA — Tue, 14 Feb 2012 00:00:00 GMT

In week two in the student loan negotiated rulemaking process, the Department of Education proposed a number of regulatory changes to make loan repayment a little easier for struggling borrowers. Still, some negotiators representing consumer advocates would like to see more help for borrowers. The student loan committee is negotiating 25 student loan regulatory issues that will ultimately result in a package of proposed rules to be published for public comment before promulgation of final rules.

02-13: FY 2010 2-Year and FY 2009 3-Year Draft Cohort Default Rates Release Scheduled for February and March 2012

NASFAA — Tue, 14 Feb 2012 00:00:00 GMT

In the next several weeks, the Department plans to release Draft Cohort Default Rates to all eligible schools, guaranty agencies, and lenders. This year, the department plans to release a 2-year and a 3-year draft cohort default rate.

College Groups React to Obama's Higher-Education Budget With Praise and Caution

NASFAA — Mon, 13 Feb 2012 00:00:00 GMT

Feb. 13, 2012 - The Chronicle of Higher Education interviews NASFAA about the President's 2013 budget plan "to remake the Perkins Loan program, rewarding institutions that rein in tuition and produce good student outcomes." NASFAA said "it embraced 'the concept of shared accountability and responsibility in keeping costs down,' but added that 'it must be done in a way that does not impede institutional freedom or unfairly penalize schools that serve diverse student populations.'"

A Symbolic, But Pleasing, Budget

NASFAA — Tue, 14 Feb 2012 00:00:00 GMT

Feb. 14, 2012 - Inside Higher Ed interviews NASFAA President Justin Draeger about the President's 2013 budget. "The president continues to put forth budgets that seek to expand the student aid programs, to keep costs down and to increase transparency in what is becoming an even more complicated budget and student funding process," Draeger said.

Student Job-Training Key in Budget Plan

NASFAA — Tue, 14 Feb 2012 00:00:00 GMT

"The Obama administration proposed an $8 billion program Monday aimed at training two million community-college students for jobs in high-growth industries, part of his efforts to make higher education more attainable—and affordable—to all Americans," the Wall Street Journal reports.

Working With Colleges to Find Financial Aid

NASFAA — Tue, 14 Feb 2012 00:00:00 GMT

"Many families assume their search for college cash ends when they file the FAFSA (see my blog for January 30). That's really just the beginning -- here's what to know after you hit submit," the Huffington Post reports.

Profiting From Federal Aid

NASFAA — Tue, 14 Feb 2012 00:00:00 GMT

"For-profit colleges that can accept federal financial aid from students charge about 75 percent more in tuition than those that can’t, according to a new study from the National Bureau of Economic Research, which suggests that federal aid might drive up college costs," Inside Higher Ed reports.

Student Loan Debt: Next Big Economic Shock

NASFAA — Tue, 14 Feb 2012 00:00:00 GMT

"Today, bankruptcy attorneys are sounding the alarm about what they see as another disturbing trend: the rising number of student loan defaults," Gail Buckner writes in Fox Business.

Opinion: What's in That Obama Budget for You?

NASFAA — Mon, 13 Feb 2012 00:00:00 GMT

Feb. 13, 2012 - Reuters interviews NASFAA Communications Director Haley Chitty about the President's 2013 budget plan "to target more aid to schools that hold the line on price increases. 'Ultimately, that aid gets passed through to the students,' said Haley Chitty."

Student Loans Always are Due, No Matter How Long Overdue

NASFAA — Tue, 14 Feb 2012 00:00:00 GMT

"If you think the student loan you took out years ago but never repaid won’t come back to haunt you, think again," Alex Ferreras writes for LoanSafe.org. "The debt could land you in federal court, pleading your case before a U.S. district judge. 'There’s no statute of limitations on student loans,' warned Assistant U.S. Attorney Deborah F. Sanders."

02-07: Washington's Birthday Federal Holiday Processing and Customer Service Hours

NASFAA — Wed, 08 Feb 2012 00:00:00 GMT

The Department of Education's federal offices as well as some of its Title IV processors and call centers will be closed on Monday, Feb. 20, 2012 to observe the Washington’s Birthday federal holiday.

A Policy Wonk Brings Data on College Costs to the Table

NASFAA — Wed, 08 Feb 2012 00:00:00 GMT

"The dozen higher-education leaders summoned to the White House in December to talk about college affordability included 10 prominent college presidents and the head of one of the nation's most visible education foundations," the Chronicle of Higher Education reports. "And the 12th person, the person seated right across from the president to open and frame the discussion?"

Auto and Student Loans Drive Borrowing Surge

NASFAA — Wed, 08 Feb 2012 00:00:00 GMT

"In another sign that the credit freeze is thawing, the Federal Reserve said Americans ramped up their borrowing at the end of 2011," the Wall Street Journal reports. "The most recent gains largely reflect more student loans, which at least one economist said could be a sign of financial strain."

'Best Value' Colleges: Some Have High Price Tags

NASFAA — Wed, 08 Feb 2012 00:00:00 GMT

"The latest list of America's 'best value' colleges includes several with the highest sticker prices in the nation, according to a new ranking released Monday," USA Today reports. "Among the schools with large tuitions that are nonetheless considered top-value colleges are Williams and Swarthmore, according to The Princeton Review's annual list of best value schools."

Applying For Financial Aid Without The Fear Factor

NASFAA — Wed, 08 Feb 2012 00:00:00 GMT

"Application deadlines for financial aid like grants, scholarships and student loans are just around the corner," NPR reports. "But many students may need help getting their paperwork in order."

Bankruptcy Lawyers Warn of Student-Loan 'Debt Bomb' as Client Caseloads Rise

NASFAA — Wed, 08 Feb 2012 00:00:00 GMT

"More struggling borrowers are seeking relief from their student loans, according to a survey by the National Association of Consumer Bankruptcy Attorneys," the Chronicle of Higher Education reports. "Most of those borrowers won't have their student-loan debt forgiven. Under federal law, it is almost impossible to discharge student loans through bankruptcy."

West Virginia's University of Charleston: How We Cut Tuition By 22%

NASFAA — Wed, 08 Feb 2012 00:00:00 GMT

"After seeing enrollment decline for the first time in a decade, the University of Charleston, in West Virginia, slashed tuition by 22% for the upcoming school year hoping to entice more students," CNN Money reports. "The school, which currently has 1,006 undergraduate students, employed a series of initiatives to afford the cut, including reducing its financial aid, sharing professors with colleges in the region and graduating students early."

Florida Senate Rolls Out Increase in Education Funding, Higher Ed Cuts

NASFAA — Wed, 08 Feb 2012 00:00:00 GMT

"With a relatively sunny unemployment report released last week, Senate President Mike Haridopolos, R-Merritt Island, suggested his chamber is now ready to move forward," the News-Press reports. "Another one of Scott's priorities -- that tuition remain constant at Florida colleges and universities -- is already under siege."

Opinion: The Student Loan Crisis Is Crippling America's Families - Is The Economy Next?

NASFAA — Wed, 08 Feb 2012 00:00:00 GMT

"John Rao, an attorney with the National Consumer Law Center and vice president of the NACBA is calling for the restoration of the bankruptcy discharge for student loans, and a reasonable statute of limitations for student loan defaults," Sheryl Nance-Nash writes for Forbes Magazine. "It’s not rocket science. It’s the economy."

Opinion: Families Must Do Their College Loan Homework

NASFAA — Wed, 08 Feb 2012 00:00:00 GMT

"Although students can file the FAFSA for the upcoming fall semester until June 30, February is crunch time," columnist Esther Cepeda writes for the Statesman Journal. "Fear of confronting family finances head-on keeps many people from dealing with their tax matters until the last minute."

If You’re Going to Accept Direct Loans and Pell Grants, You Should Tell Us If Students Are Actually Learning Something

NASFAA — Wed, 08 Feb 2012 00:00:00 GMT

"At the very least, colleges and universities should be required to release data on whether or not students demonstrate a significant improvement in learning between enrollment and graduation - and if they don’t, they should be barred from receiving federal student loan money," Reihan Salam writes for the National Review's Agenda blog. "I am hard-pressed to think of a reasonable counter-argument."

Verification Site Provides New Information, Clarification

NASFAA — Wed, 08 Feb 2012 00:00:00 GMT

"The U.S. Department of Education added a section about verification to its program integrity question-and-answer website," Mandy Sponholtz, policy specialist, writes for USA Funds' Education Access Report blog. "While the answers in the verification section cover a variety of topics - ranging from general information to acceptable documentation - some of the answers, in particular, provide new information or clarification."

02-06: Issue Alert - Inaccurate IRS Request Flag on 2012-13 ISIRs Processed Prior to Feb. 5, 2012

NASFAA — Tue, 07 Feb 2012 00:00:00 GMT

The Department of Education is alerting all schools to an issue at the Central Processing System (CPS) that caused the IRS Request Flag of "05" to be set incorrectly on 2012-13 Institutional Student Information Records (ISIRs) created since 2012-13 processing began on Jan. 3, 2012. This issue impacted approximately 630,000 transactions. This issue was resolved with the implementation of the 2012-13 IRS Data Retrieval Tool on Feb. 5, 2012.

Comment Request: TEACH Grant Eligibility Regulations

NASFAA — Tue, 07 Feb 2012 00:00:00 GMT

The TEACH Grant program regulations are required to ensure accountability of the program participants, both institutions and student recipients, for proper program administration, to determine eligibility to receive program benefits. The regulations include both recordkeeping and reporting requirements. Interested persons are invited to submit comments on or before March 8, 2012.

Student Loans: Hit a Bull's-Eye With Your FAFSA

NASFAA — Tue, 07 Feb 2012 00:00:00 GMT

Feb. 6, 2011 - CNN Money interviews NASFAA Communications Director Haley Chitty about the importance of filling out the FAFSA. "Almost every family qualifies for some form of assistance," Chitty said.

'Between Citizens and the State'

NASFAA — Tue, 07 Feb 2012 00:00:00 GMT

"Between gainful employment, talk of revamping the role of accreditation, interminable budget wrangling over Pell and student loans, and President Obama's State of the Union declaration that colleges and universities are 'on notice' with regard to costs and outcomes, the complex and evolving relationship between higher education and the federal government is more visible than ever -- though on the question of what exactly that relationship ought to be, no consensus seems imminent," Inside Higher Ed reports.

Deal Creates Needs-Based Scholarships for Georgia

NASFAA — Tue, 07 Feb 2012 00:00:00 GMT

"Some of Georgia's low-income students will receive up to $10,000 for college through a privately funded scholarship program Gov. Nathan Deal unveiled Monday," the Atlanta Journal-Constitution reports. "The REACH Scholarship program will target middle school students who have the academic skills for college but may struggle to afford it, Deal said."

Virginia: Taking on Robin Hood

NASFAA — Tue, 07 Feb 2012 00:00:00 GMT

"Ensuring access to higher education is an expensive proposition, and right now, the state of Virginia is debating who should foot the bill," Inside Higher Ed reports. "In his proposed budget, Virginia Governor Bob McDonnell is seeking to cap the use of tuition dollars from in-state students to provide financial aid, a practice employed by almost all colleges and universities, public and private."

California: Some For-Profit Colleges Booted from Cal Grants

NASFAA — Tue, 07 Feb 2012 00:00:00 GMT

"A little-known California law has dealt a blow to nearly half of the for-profit college campuses in the state, barring them from offering students a coveted Cal Grant this year," the San Francisco Chronicle reports. "The law cracks down for the first time on schools with high student loan default rates, meaning graduates aren't paying back the money they owe even three years after leaving school."

Opinion: Priciest College Rarely the Best Choice, Authors Say

NASFAA — Tue, 07 Feb 2012 00:00:00 GMT

"It's much better to be a payee than a payer," Steve Rosen writes in the News & Observer. "That means when it comes to deciding where to go to college, go with the school that will pay for your education with scholarships, grants and other forms of aid. The flip side? Forget most schools - no matter how highly selective they are - that put most of the financial burden on you to attend."

Opinion: Suze Orman's Top Five Money Mistakes You Can't Afford To Make

NASFAA — Tue, 07 Feb 2012 00:00:00 GMT

"Orman talks to one young woman, Britney, who made several money blunders," Forbes Magazine reports. "She has about $130,000 in private student loan debt after attending a private college to study documentary film-making. 'Huge mistake,' Orman exclaims."

MIT’s New Free Courses May Threaten (and Improve) the Traditional Model, Program’s Leader Says

NASFAA — Tue, 07 Feb 2012 00:00:00 GMT

"The recent announcement that Massachusetts Institute of Technology would give certificates around free online course materials has fueled further debate about whether employers may soon welcome new kinds of low-cost credentials," Jeffrey R. Young writes in the Chronicle of Higher Education's Wired Campus blog. "Questions remain about how MIT’s new service will work, and what it means for traditional college programs."

02-02: Implementation of the 2012-13 IRS Data Retrieval Tool

NASFAA — Fri, 03 Feb 2012 00:00:00 GMT

Deployment of the 2012-13 IRS Data Retrieval Tool has been rescheduled from Wednesday, Feb. 1 to Sunday, Feb. 5, 2012. The IRS Data Retrieval Tool will continue to be available for 2011-12 applicants. The IRS Data Retrieval Tool allows students and parents to access IRS tax return information needed to complete the Free Application for Federal Student Aid (FAFSA) and transfer that data directly into their FAFSA.

Revision: Comprehensive Transition Programs for Students with Intellectual Disabilities Expenditure Report

NASFAA — Fri, 03 Feb 2012 00:00:00 GMT

The Comprehensive Transition Programs for Students with Intellectual Disabilities Expenditure Report is the tool for reporting the use of the Federal Pell Grant, Supplemental Educational Opportunity Grant, and Federal Work Study funds for eligible students with intellectual disabilities enrolled in an approved program. Interested persons are invited to submit comments on or before April 3, 2012.

Rising Tuition, Falling Aid Pose Risk

NASFAA — Fri, 03 Feb 2012 00:00:00 GMT

Feb. 2, 2012 - The Columbian reports on NASFAA President Justin Draeger's public affairs lecture series at Washington State University Vancouver. "American higher ed is being privatized, Draeger told The Columbian -- not in terms of public versus private schools, but in terms of who’s paying for college."

The Parent Trap: Tuition Debt

NASFAA — Fri, 03 Feb 2012 00:00:00 GMT

"It’s not just graduates who are staggering under the weight of their educational loans," Business Week reports. "Parents, too, are borrowing record amounts to put their kids through college, jeopardizing their retirements."

Online Campaign Prompts Sallie Mae to Change Fee Policy for Loan Suspensions

NASFAA — Fri, 03 Feb 2012 00:00:00 GMT

"Score two for online consumer advocates — or, as they might be called, Occupy Online," the New York Times reports. "On Thursday, three months after Bank of America backed down from imposing a $5 monthly debit card fee in response to an online Change.org petition that collected 300,000 signers, Sallie Mae, the nation’s largest private student-loan provider, changed its fee policy in response to an online petition."

Senate Republicans Question Obama's Plan to Tie Federal Aid to Tuition

NASFAA — Fri, 03 Feb 2012 00:00:00 GMT

"Senate Republicans pushed back against President Obama's college-affordability agenda at an education-committee hearing Thursday, expressing doubts about the administration's plans to reward colleges and states that hold down tuition and maintain their higher-education budgets," the Chronicle of Higher Education reports. "'I don't believe the government's role is to pick winners and losers,' said Sen. Richard Burr of North Carolina, explaining that he was uncomfortable 'shifting the determination of affordability to Washington.'"

Gaming the College Rankings

NASFAA — Fri, 03 Feb 2012 00:00:00 GMT

"Any love-hate relationship must have its share of pain, so the academic world, in its obsession with college rankings, is suitably dismayed by news that an elite college, Claremont McKenna, fudged its numbers in an apparent bid to climb the charts," the New York Times reports. "Dismayed, but not quite surprised."

Vermont Senators Leahy And Sanders Join Bill To Prevent July Interest Rate Increase On Stafford Student Loans

NASFAA — Fri, 03 Feb 2012 00:00:00 GMT

"Vermont’s two U.S. Senators, Patrick Leahy (D) and Bernie Sanders (I), Wednesday joined in introducing legislation to stop student loan interest rates from doubling this summer," Loan Safe reports. "In 2007 Congress passed the College Cost Reduction and Access Act, which reduced the fixed-interest rate on Stafford Loans from 6.8 percent to 3.4 percent, helping millions of American students better afford college education."

No Money Down!

NASFAA — Fri, 03 Feb 2012 00:00:00 GMT

"With public university administrators continually arguing for tuition increases to counter state appropriations cuts, it seems far-fetched that their budget problems could be solved by eliminating student tuition and fees altogether," Inside Higher Ed reports. "But that’s the idea put forth by a group of students from the University of California at Riverside, who in January proposed a new funding model for the University of California system that seeks to solve two of the system’s biggest problems: unpredictable and large decreases in state appropriations, and the steady increase in tuition costs."

Student Proposal: Pay College Tuition After Graduation

NASFAA — Fri, 03 Feb 2012 00:00:00 GMT

"With public university administrators continually arguing for tuition increases to counter state appropriations cuts, it seems far-fetched that their budget problems could be solved by eliminating student tuition and fees altogether," USA Today reports. "But that's the idea put forth by a group of students from the University of California at Riverside, who in January proposed a new funding model for the University of California system that seeks to solve two of the system's biggest problems: unpredictable and large decreases in state appropriations, and the steady increase in tuition costs."

Making College More Affordable

NASFAA — Fri, 03 Feb 2012 00:00:00 GMT

"The president spoke directly to colleges in his State of the Union address: 'If you can’t stop tuition from going up, the funding you get from taxpayers will go down,'" Policy Analyst Julie Margetta Morgan writes for the Center for American Progress. "Using federal aid to incentivize savings at colleges is not a new concept - Rep. Buck McKeon (R-CA) proposed doing so back in 2003."

Higher Education’s $64,000 Question

NASFAA — Fri, 03 Feb 2012 00:00:00 GMT

"'Are students learning?' This question should be the focus of almost everyone’s efforts in higher education: administrators, faculty members, staff," David Paris, executive director at the New Leadership Alliance for Student Learning and Accountability, writes in the Washington Post College Inc. blog. "It should also be the question asked by those interested in higher education: parents, employers, policymakers - well, just about everyone, including students and prospective students themselves."

02-01: 2012-13 Federal School Code List of Participating Schools (Feb. 2012)

NASFAA — Thu, 02 Feb 2012 00:00:00 GMT

The Department of Education has made available the updated 2012-13 Federal School Code (FSC) List of Participating Schools on the Information for Financial Aid Professionals (IFAP) website. The Federal School Code List contains the unique codes assigned by the Department of Education for schools participating in the Title IV federal student aid programs. Students enter these codes on the Free Application for Federal Student Aid (FAFSA) to indicate which postsecondary schools will receive the processed application results.

02-01: Participation in the Work Colleges Program

NASFAA — Thu, 02 Feb 2012 00:00:00 GMT

This Electronic Announcement provides information necessary to apply for participation in the Work Colleges Program for the 2012-13 Award Year. A school must apply electronically via the eCampus-Based (eCB) website and submit a printout of that application, signed by the authorized official of the school to the Department of Education.

Official: White House Path on College Affordability Not Fully Mapped Out

NASFAA — Thu, 02 Feb 2012 00:00:00 GMT

"The White House was purposefully vague on the college affordability plan that it announced last week because the administration wants the higher education community to help shape the plan, a White House official told a group of higher education leaders meeting in Washington on Tuesday," Diverse reports.

White House Reassures Independent Colleges That They Will Be Consulted on Affordability Policy

NASFAA — Thu, 02 Feb 2012 00:00:00 GMT

"Just four days after President Obama made an impassioned speech warning colleges that they may risk losing federal funds if they do not keep tuition costs under control, a top White House official reassured a group of presidents and representatives from independent colleges that the administration will consult them while developing the proposed policy," the Chronicle of Higher Education reports.

Big Data's Arrival

NASFAA — Thu, 02 Feb 2012 00:00:00 GMT

"New students are more likely to drop out of online colleges if they take full courseloads than if they enroll part time, according to findings from a research project that is challenging conventional wisdom about student success," Inside Higher Ed reports. "But perhaps more important than that potentially game-changing nugget, researchers said, is how the project has chipped away at skepticism in higher education about the power of 'big data.'"

Washington: Presidents Lament Budget Cuts Draining State's Universities

NASFAA — Thu, 02 Feb 2012 00:00:00 GMT

"Cutbacks to higher education are causing a brain drain at Washington public universities, and the state is gaining a national reputation for the severity of cuts, the presidents of Washington's six four-year higher-education institutions said Wednesday," the Seattle Times reports.

Delaware: State's Colleges Bracing for War on Costs

NASFAA — Thu, 02 Feb 2012 00:00:00 GMT

"In his State of the Union address last week, President Barack Obama thrust the issue of college affordability into a national spotlight, saying he would put colleges and universities 'on notice' that skyrocketing tuition can't continue," the Delaware News Journal reports. "Based on the details available, some aspects of what Obama proposes would not favor Delaware colleges and universities, many of which have costs exceeding the national average in their category."

Opinion: Why Is College So Expensive? And Can Obama Make It Cheaper?

NASFAA — Thu, 02 Feb 2012 00:00:00 GMT

"Experts have attributed the rise in state school tuition to a whole host of factors, but the basic story of the past decade looks like this: State legislators are slashing funding, which requires college to either cut costs or raise tuition," Jordan Weissmann writes in The Atlantic. "At the same time, market pressures have led schools to spend more on student services, which include everything from fancy, L.A. Fitness-quality gyms to career services departments."

Opinion: Stable Funding the Key to Holding Down College Tuition

NASFAA — Thu, 02 Feb 2012 00:00:00 GMT

"It was good to hear President Barack Obama speak to the issue of higher-education funding in his State of the Union address," Washington State University President Elson S. Floyd writes for the Seattle Times. "The skyrocketing cost of tuition has created the single greatest challenge our students have faced in gaining access to institutions of higher learning."

Opinion: Obama's Higher Education Reforms Doomed To Fail

NASFAA — Thu, 02 Feb 2012 00:00:00 GMT

"Usually low-tier, last week President Obama signaled in both the State of the Union and a University of Michigan speech that higher education will loom large in Campaign 2012," Neal McCluskey writes in Investor's Business Daily. "With Americans outraged over skyrocketing prices and student debt, it makes sense."

Opinion: Encouraging a Degree of Saving in Higher Ed

NASFAA — Thu, 02 Feb 2012 00:00:00 GMT

"As President Obama quite rightly insisted in his State of the Union address, institutions of higher learning must do more to hold down their costs if college education is to remain affordable for the next generation of young people," the Washington Post editorial board writes. "What’s more, he’s talking about using the federal government’s financial clout to encourage cost containment."

Opinion: Obama’s Disappointing College Plan

NASFAA — Thu, 02 Feb 2012 00:00:00 GMT

"The president deserves credit for calling out soaring tuition and unsustainable student debt as huge barriers to upward mobility and a strong middle class," Matt Miller writes for the Washington Post. "But unfortunately, the remedies he sketched in his State of the Union address and in a speech at the University of Michigan last week are textbook examples of proposals meant to signal the president’s 'values' (and win votes) while doing little to address the problem."

A Long Overdue Change to Campus-Based Aid

NASFAA — Thu, 02 Feb 2012 00:00:00 GMT

"The higher education plan that President Obama unveiled last week should be applauded not only because it would hold colleges accountable for their 'affordability and value' but also because it would overhaul the highly-inequitable funding formula that the government uses to allocate campus-based student aid funds," Stephen Burd writes in The Quick and The Ed blog. "The campus-based programs - Federal Work Study, Perkins Loans, and Supplemental Educational Opportunity Grants (SEOG) - are intended to supplement Pell Grants for low-income students and to provide aid to students who just miss the cut off for the grants."

Digging up 'DRT' on the New FAFSA IRS Linking Tool

NASFAA — Thu, 02 Feb 2012 00:00:00 GMT

"As part of ongoing efforts to improve the higher education financial aid delivery system, the IRS and Department of Education are working together within the FAFSA application process," Doug A. Schantz writes for Cheap Scholar.org. "That work will cause frustrations for some families this year."

A Higher Education Revolution

NASFAA — Thu, 02 Feb 2012 00:00:00 GMT

"When it comes to helping Americans save for college and improve the debt burden of graduates, and avoid incurring so much debt, there are steps Congress can and should take," Mike Brownfield writes for Education News. "One is to remove the double taxation of all savings, including savings for college."

GEN-12-02: Employment Certification for Public Service Loan Forgiveness Form

NASFAA — Wed, 01 Feb 2012 00:00:00 GMT

This letter announces the approval of an "Employment Certification for Public Service Loan Forgiveness" form for use by borrowers in the Federal Direct Loan Program. The Public Service Loan Forgiveness (PSLF) Program was established by Congress with the passage of the College Cost Reduction and Access Act of 2007, and was created to encourage individuals to enter lower-paying but vitally important public sector jobs such as military service, law enforcement, public education and public health professions.

01-31: Program Integrity Questions and Answers (Q&A) Website Update-Verification and Update on Verification Worksheets

NASFAA — Wed, 01 Feb 2012 00:00:00 GMT

The Office of Postsecondary Education (OPE) recently updated the Program Integrity final regulations Q&As web page with regard to verification. In addition, the OPE will post two sample worksheets—one for dependent students and one for independent students—that institutions may use to verify the information used to determine an applicant’s eligibility for federal student aid for the 2012-13 award year.

01-31: Loan Servicing Information - CornerStone Joins Federal Loan Servicer Team

NASFAA — Wed, 01 Feb 2012 00:00:00 GMT

The expansion of the Department of Education's (ED) federal loan servicer team will occur through new federal loan servicing contracts awarded under the HCERA/SAFRA Not-For-Profit (NFP) Servicer Program solicitation. The solicitation offered NFP entities the opportunity to submit proposals individually and in teams for servicing borrower accounts on ED's behalf. Whether individual or team award, ED says its customers will know and face one servicer.

Independent Colleges Are Keen on Affordability Goals, but Wary of How to Achieve Them

NASFAA — Wed, 01 Feb 2012 00:00:00 GMT

"Reacting to the higher-education proposals President Obama unveiled last week, the leader of the National Association of Independent Colleges and Universities said Monday that the organization was committed to 'good faith' negotiations with the administration but would oppose any efforts by the federal government to encroach upon the independence of its institutions," the Chronicle of Higher Education reports. "David L. Warren, Naicu's president, said that the proposals represented a 'pivotal moment' for higher education and that 'incredible consequences' hung in the balance."

Key Congressman Blasts Obama’s Proposals on Federal Aid Policy

NASFAA — Wed, 01 Feb 2012 00:00:00 GMT

"Rep. Harold D. Rogers, the Kentucky Republican who is chairman of the House Appropriations Committee, rebuked President Obama today for suggesting in a speech last week that colleges that fail to cut costs and keep tuition costs low risk losing federal aid," the Chronicle of Higher Education reports. "'I was really irritated,' said Mr. Rogers, who spoke at the annual meeting of the National Association of Independent Colleges and Universities."

How You Pay for College Impacts Your Tax Bill

NASFAA — Wed, 01 Feb 2012 00:00:00 GMT

"With undergraduate tuition at all-time highs, the government provides some relief for taxpayers with dependents in college," Fox Business reports. "Understanding which credit or deduction works best for you can help to reduce your tax bill."

Endowment Returns Rise to 19%, but Trouble May Lie Ahead

NASFAA — Wed, 01 Feb 2012 00:00:00 GMT

"Despite the continuing struggles of the economy, university endowments continued to grow in 2011, bringing in a 19-percent return on their investments," the Chronicle of Higher Education reports. "That's the good news from the annual survey of endowment returns by the National Association of College and University Business Officers and the Commonfund Institute."

Debts That Can't Be Wiped Out in Bankruptcy

NASFAA — Wed, 01 Feb 2012 00:00:00 GMT

"Student loans: Loans taken out for schooling may not be eliminated in the vast majority of cases," Fox Business reports. "All types of education loans qualify as student loans and are exempt from elimination in bankruptcy: federal student loans, private lender student loans, loans directly from the school and tuition assistance loans directly from a school."

College Aid Advice From Ivy League Aid Director

NASFAA — Wed, 01 Feb 2012 00:00:00 GMT

"Want a rare look behind the scenes of the financial aid office at a top university to hear how it’s done, how they calculate your aid eligibility, look at your finances on using the FAFSA and CSS Profile, listen to unusual circumstances and award students financial aid dollars?" Forbes Magazine reports. "Search no more, here it is, an interview with Mr. Bill Schilling, the Director of Student Aid at the University of Pennsylvania, (one of the eight Ivy League schools)."

Applying for Financial Aid? Do Your Homework

NASFAA — Wed, 01 Feb 2012 00:00:00 GMT

"Once you qualify for money for college, it's time to ask some very important questions," the Huffington Post reports. "Some scholarships or grants require you to pass all of your classes, or to keep a certain grade-point average -- if you don't, you might actually have to pay that money back."

Florida: Data Shows 40 percent of Bright Futures Students Qualify for Need-Based Aid

NASFAA — Wed, 01 Feb 2012 00:00:00 GMT

"There's a long-held belief among many Floridians that students who receive the Bright Futures Scholarship Award, which pays for almost all students' tuition costs depending on their grades and test scores, are rich," the Miami Herald reports. "Some call it the "Mercedes Benz" scholarship, implying that recipients' parents use the saved tuition money to buy their kids fancy cars."

Opinion: President Obama Declares War on College Costs

NASFAA — Wed, 01 Feb 2012 00:00:00 GMT

"The administration is proposing that some federal aid would be contingent on schools keeping their prices reasonable and providing good value," Lynn O'Shaughnessy writes for CBS Money Watch. "Predictably, college administrators and their industry groups are doing their 'sky is falling' routine. These are the same characters, who congratulate themselves if they limit yearly tuition increases to only 4% or 5%."

Opinion: Price Controls for Harvard?

NASFAA — Wed, 01 Feb 2012 00:00:00 GMT

"In his State of the Union address last week, President Obama said he wants the federal government to assert control over the rapidly rising cost of college tuition," Fay Vincent, a former trustee of Fairfield University, Williams College and Carleton College, writes in the Wall Street Journal. "Where to begin? The president could hardly have found a more intricate area in which to assert power."

Opinion: The Great Tuition Pander

NASFAA — Wed, 01 Feb 2012 00:00:00 GMT

"To the long list of constituencies at whom President Obama is righteously cheesed off - millionaires, billionaires, international terrorists, those sorts of people - we may now add the bursars of America’s colleges and universities," Andrew Ferguson writes in the Weekly Standard. "He devoted a passage of his State of the Union address last week to the problem of unaffordable college tuition. His face took on that no-nonsense, determined look when he spotted the subject rolling up his teleprompter."

Opinion: Obama’s Solution to High College Costs: Fight Subsidies With Subsidies

NASFAA — Wed, 01 Feb 2012 00:00:00 GMT

"Obama, speaking at the University of Michigan in Ann Arbor on January 27, sketched out a plan for bringing the cost of college tuition down," Michael Tennant writes in The New American. "The President said he considers it an urgent need because 'tuition is going up faster than inflation, faster than even health care is going up.'"

President Obama’s Discussion of College Costs is Timely But Needs to be Expanded

NASFAA — Wed, 01 Feb 2012 00:00:00 GMT

"President Obama’s State of the Union address and his speech at the University of Michigan made broad sweeping comments about education and the issue of rising college costs," Rep. Virginia Foxx (R-N.C.) writes in The Hill's Congress blog. "As Chairwoman of the Higher Education Subcommittee, I share his concern about exploding college costs and the burden of student loans."

Accepted and Relieved, Until Thoughts Turn to Financial Aid

NASFAA — Wed, 01 Feb 2012 00:00:00 GMT

"My fears about meeting the application deadlines may have been clicked away, but the concerns over the cost of college remain and make me worry over where I will be able to attend," Cassie Dagostino, a student at Brooklyn Technical High School, writes in the New York Times Choice blog. "And so, it came time to fill out the C.S.S. Profile and the Fafsa."

Cost Looms Large for Obama's Student Loan Interest Rate Cut

NASFAA — Wed, 01 Feb 2012 00:00:00 GMT

"Last week President Obama called on Congress in his State of the Union address “to stop the interest rates on student loans from doubling in July," Jason Delisle writes in the New American Foundation's Ed Money Watch blog. "As President Obama demonstrated in his address last week, the rate cut issue will loom large this election year and Congress will be under a lot of pressure to stave off the rate hike."

Congressional Research Service Provides Comprehensive Overview of Federal Student Loans

NASFAA — Tue, 31 Jan 2012 00:00:00 GMT

A recent report by the Congressional Research Service provides an overview of federal student loan provisions related to borrower eligibility, loan terms and conditions, borrower repayment relief, and loan default and its consequences for borrowers.

01-30: Operational Implementation Guidance - Implementation of 2012-13 Federal Pell Grant Payment and Disbursement Schedules

NASFAA — Tue, 31 Jan 2012 00:00:00 GMT

The maximum Pell Grant award for the 2012-13 Award Year is $5,550, the same as for the 2011-12 Award Year. Therefore, for the vast majority of Expected Family Contributions (EFC) there is no change to the Scheduled Award amount. However, because of a recent statutory change, the maximum Pell Grant eligible EFC for 2012-13 is 4995, less than the 5273 EFC maximum for the 2011-12 Award Year. The result is that a small number of applicants who would have been Pell Grant eligible for the 2011-12 Award Year will not be eligible for the 2012-13 Award Year.

Saving Pell

NASFAA — Wed, 25 Jan 2012 00:00:00 GMT

Jan. 25, 2012 - "The time of unprecedented growth for the federal Pell Grant program couldn’t have come at a worse time for Congress," NASFAA Communications Director Haley Chitty writes for University Business. "As lawmakers were looking to cut federal spending to address the growing national deficit, record college enrollments, the economic downturn, and expanded Pell Grant awards and eligibility criteria combined to triple the cost of the program over five years."

Completing the FAFSA Form Just Got a Lot Easier

NASFAA — Tue, 31 Jan 2012 00:00:00 GMT

"Millions of American parents have wrestled with this federal financial aid form and many of them have made mistakes," CBS Money Watch reports. "Some of those errors have inadvertently cost lots of families financial aid that they were entitled to receive."

Hill Poll: Illegal Immigrants' Children Deserve Shot at Citizenship, Say Likely Voters

NASFAA — Tue, 31 Jan 2012 00:00:00 GMT

"Nearly half of registered voters say illegal immigrants brought to the United States as children should be offered a path to citizenship, and that rises to 73 percent for those who serve in the military, according to The Hill Poll," the Hill reports. "Both ideas stem from the DREAM Act, which congressional Republicans killed in 2010."

For-Profit College Executives Make Much More Than Their Higher Education Counterparts

NASFAA — Tue, 31 Jan 2012 00:00:00 GMT

"For-profit colleges have been in the hot seat over the past two years, with the federal government and more than a dozen state attorneys general probing fraudulent recruiting tactics and high student debt levels," the Huffington Post reports. "But there has been relatively little attention paid to how the Wall Street corporations that own many for-profit colleges pay those at the top."

Gingrich Urges Students to Get Part-Time Jobs - Apparently Unlike Himself

NASFAA — Tue, 31 Jan 2012 00:00:00 GMT

"Newt Gingrich thinks today’s youths have it way too easy. Then again, there was a day when some people thought that about young Newt himself," the Washington Post reports. "In a 1995 profile for Vanity Fair, author Gail Sheehy discovered that Gingrich financed his own education largely via the hard work of this then-wife."

Minnesota: Obama's Student-Aid Plan May Not Spark Game-Changing Reform Here, Initial Review Suggests

NASFAA — Tue, 31 Jan 2012 00:00:00 GMT

"Reaction was decidedly mixed among Minnesota higher-education officials to news that President Barack Obama wants to overhaul the student-aid system to tie colleges’ federal financial-aid eligibility to schools’ affordability and the overall value of the education they provide," the Minnesota Post reports. "Top officials at the University of Minnesota, the Minnesota State Colleges and Universities System (MnSCU) and the Minnesota Private College Council were still trying to learn the specifics of the proposal at close of business Friday."

In Wash., More Financial Aid, But Also More Need

NASFAA — Tue, 31 Jan 2012 00:00:00 GMT

"Despite signs that the state economy is improving, finding money to send children to college is still becoming more difficult," the Associated Press reports. "More students received financial aid last year, but even more families aren't getting the help they need, according to a new report from the Washington Higher Education Coordinating Board."

Wisconsin: As Costs Continue to Rise, Paying for College gets Tougher for Many Students

NASFAA — Tue, 31 Jan 2012 00:00:00 GMT

"Students are graduating each year with greater amounts of debt," The Wisconsin State Journal reports. "For public colleges, increasing costs to the student can be tied directly to decreases in state support."

Opinion: Is There a Media Blackout of the Student Loan Crisis?

NASFAA — Tue, 31 Jan 2012 00:00:00 GMT

"I was lucky enough to break what has turned out to be the most widely reported higher education media story of the last couple of years," founder of StudentLoanJustice.Org Alan Collinge writes for Forbes Magazine. "Namely, this was the fact that we now owe more on student loans than we do on credit cards, nationally."

Opinion: Doubling The Interest Rates On Student Loans Could Actually Be A Good Thing

NASFAA — Tue, 31 Jan 2012 00:00:00 GMT

"Right now, the interest rate on federal student loans is 3.4%, but if lawmakers don't vote to extend the cap, it'll jump to 6.8% after this year," Mandi Woodruff writes for Business Insider. "That this will increase the burden on college graduates paying off loan debt is a no-brainer, but one expert says it might help them in the long-run."

College Leaders Fail Obama’s Tuition Plan

NASFAA — Tue, 31 Jan 2012 00:00:00 GMT

Jan. 30, 2011 - Joanne Jacobs quotes NASFAA Communications Director Haley Chitty in an article on President Obama's blueprint for higher education in her Linking and Thinking in Education blog. Obama "threatened to cut some forms of federal aid to students at colleges that raise tuition or fail to provide 'good value.'"

Obama, Higher-Education Costs, and Student Aid

NASFAA — Tue, 31 Jan 2012 00:00:00 GMT

"Whatever else one might say about President Obama, he has good political instincts, so the heavy emphasis he is placing lately on college costs suggests this issue is breaking through the minimum threshold level of interest to make it a topic in the coming presidential/congressional campaigns," Richard Vedder writes in the Chronicle of Higher Education's Innovations blog.

Will President Obama’s Blueprint Cut College Costs?

NASFAA — Tue, 31 Jan 2012 00:00:00 GMT

"It is unclear how President Obama plans on paying for increases in student aid financing while Congress concentrates on cost-cutting," Mark Kantrowitz writes in the New York Times Choice blog. "Congress cut $8 billion a year out of the Pell grant program last year by ending the year-round Pell grant program, which allowed students in accelerated degree programs to get two Pell grants in a single year."

Are Students Drowning in Debt?

NASFAA — Tue, 31 Jan 2012 00:00:00 GMT

"President Obama used remarks at the University of Michigan in Ann Arbor on Friday to discuss the crushing student-loan burdens faced by many college graduates," former Congressman Chris Chocola writes in The National Review's Corner blog. "While it’s certainly a great goal to make quality education accessible to all Americans, the way to do it is to make education market-based and stop the government from distorting prices and propping up demand."

Repeating Coursework Questions and Answers

NASFAA — Mon, 30 Jan 2012 00:00:00 GMT

On Jan. 9, 2012, NASFAA published an article clarifying the Department of Education's determination that courses from which a student withdraws are not considered repeated coursework under the new regulations. AskRegs, NASFAA's regulatory guidance service, has since received a number of questions related to repeating coursework. We have compiled those questions and answers in this article.

National Study Will Examine the Use of Earlier Income Data in Student Aid Eligibility

NASFAA — Mon, 30 Jan 2012 00:00:00 GMT

Jan. 30, 2012 -- NASFAA has been awarded a grant from the Bill & Melinda Gates Foundation to study the use of prior-prior year (or two years prior) income data to determine eligibility for student financial aid.

2012-13 Award Year Deadline Dates: Federal Perkins Loan, Federal Work-Study, and Federal Supplemental Educational Opportunity Grant Programs

NASFAA — Mon, 30 Jan 2012 00:00:00 GMT

The Secretary announced the 2012-13 award year deadline dates for the submission of requests and documents from postsecondary institutions for the Federal Perkins Loan, Federal Work-Study (FWS), and Federal Supplemental Educational Opportunity Grant (FSEOG) programs (collectively, the "campus-based programs").

Request for Information: Promising and Practical Strategies to Increase Postsecondary Success

NASFAA — Mon, 30 Jan 2012 00:00:00 GMT

The Secretary of Education invites institutions of higher education (IHEs) to provide the Department of Education with information about promising and practical strategies, practices, programs, and activities that have improved rates of postsecondary success, transfer, and graduation.

Obama Outlines Incentive Plan to Reduce College Tuition Costs

NASFAA — Mon, 30 Jan 2012 00:00:00 GMT

Jan. 27, 2011 - The Washington Post interviews NASFAA Communications Director Haley Chitty about how the Obama administration would measure tuition rate increases against campus-based financial aid funding in its blueprint for college affordability. "That starts to get pretty sticky when you start to think of actual metrics," Chitty said.

Cash-Strapped States Cut College Financial Aid

NASFAA — Mon, 30 Jan 2012 00:00:00 GMT

"At least six states, including Illinois, Kentucky and Tennessee, now have 'until funds depleted' policies on grants, meaning late filers risk getting nothing," the Wall Street Journal reports. "Other states are shrinking the application window. Oklahoma, for example, moved its grant-application deadline to March 1 this year, two weeks earlier than last year."

College Presidents Wary of Obama's Cost-Control Tuition Plan

NASFAA — Mon, 30 Jan 2012 00:00:00 GMT

"President Obama's new plan to force colleges and universities to contain tuition or face losing federal dollars is raising alarm among education leaders who worry about the threat of government overreach," USA Today reports. "Particularly sharp words came from the presidents of public universities; they're already frustrated by increasing state budget cuts."

Aid Experts and Officials Question President's College-Affordability Plans

NASFAA — Mon, 30 Jan 2012 00:00:00 GMT

"So far, the outlines of the college-affordability proposals first mentioned in President Obama's State of the Union address last week have raised as many questions as they have answered," the Chronicle of Higher Education reports. "'We still don't have all the details, right?' said Cynthia A. Littlefield, director of federal relations at the Association of Jesuit Colleges and Universities. 'The devil's in the details.'"

Students Face Big Financial Aid Changes in 2012

NASFAA — Mon, 30 Jan 2012 00:00:00 GMT

"While the maximum Pell Grant will remain at its current level of $5,550 for the 2012-2013 school year, qualifying for the full award will be tougher," Fox Business reports. "Under current legislation, families with incomes of $30,000 or less automatically qualify for the full grant."

Obama Pushes For Financial Aid ‘Shopping Sheets’ That Clearly Spell Out College Costs

NASFAA — Mon, 30 Jan 2012 00:00:00 GMT

"President Barack Obama wants to make it easier to size up the cost of college," the Washington Post reports. "As part of his broad plans to make college more affordable, Obama said Friday that he would push for financial aid 'shopping sheets' that make it easier for families to comparison shop between schools."

Colleges Will Be Required to Use Standard Student-Aid Disclosure Form

NASFAA — Mon, 30 Jan 2012 00:00:00 GMT

"The Consumer Financial Protection Bureau described today the feedback it has received on a draft 'Financial Aid Shopping Sheet,' which it and the Education Department released in October, and the White House announced that use of the shopping sheet would be required of colleges," the Chronicle of Higher Education reports.

Your Money: Keep These Tips In Mind When You're Applying For Financial Aid

NASFAA — Mon, 30 Jan 2012 00:00:00 GMT

"Several states have reduced scholarships or toughened eligibility criteria for financial aid," the Indianapolis Star reports. "Eligibility for the maximum Pell grant, the largest source of federal financial aid, also has been tightened."

College Leaders Question Obama’s Tuition Plan

NASFAA — Mon, 30 Jan 2012 00:00:00 GMT

Jan. 27, 2011 - Daniel de Vise quotes NASFAA Communications Director Haley Chitty in a post in the Washington Post College Inc. blog about Obama's plan to tie campus-based financial aid to tuition costs. "Ultimately, you’re keeping funding from these students," Chitty said.

01-26: Gainful Employment Webinar #5 - Errors and Data Corrections in Gainful Employment Reporting on Jan. 11

NASFAA — Fri, 27 Jan 2012 00:00:00 GMT

The Department of Education has made available Gainful Employment Webinar #5 Errors and Data Corrections in Gainful Employment Reporting on January 11, 2012 in Microsoft PowerPoint format.

Obama College Aid Proposal Puts a Focus on Affordability

NASFAA — Fri, 27 Jan 2012 00:00:00 GMT

"President Obama is proposing a financial aid overhaul that for the first time would tie colleges’ eligibility for campus-based aid programs - Perkins loans, work-study jobs and supplemental grants for low-income students - to the institutions’ success in improving affordability and value for students, administration officials said," the New York Times reports. "Under the plan, which the president is expected to outline on Friday morning in a speech at the University of Michigan, the amount available for Perkins loans would grow to $8 billion, from the current $1 billion."

Congressman Joe Courtney Introduces Legislation to Help Stop Rate Increases on Subsidized Stafford Student Loans

NASFAA — Fri, 27 Jan 2012 00:00:00 GMT

"Congressman Joe Courtney today introduced legislation, H.R. 3826, to ensure that interest rates on certain student loans do not dramatically increase this year," LoanSafe.org reports. "In 2007, Congress made an historic investment in higher education when it passed the College Cost Reduction and Access Act."

Unemployed Grads Upset With Sallie Mae’s Late Payment Fees

NASFAA — Fri, 27 Jan 2012 00:00:00 GMT

"More than 50,000 people have signed a petition on the online advocacy platform Change.org calling for education financer Sallie Mae to stop charging fees for late student loan payments, Change.org announced," the Credit Union Times reports. "The campaign’s leader, Stef Gray of Brooklyn, N.Y., argues that the education-focused financial services company unfairly charges a fee of $50 per loan for every three-month delayed payment time period, which unemployed college graduates can’t afford."

Five Shifts Among College Freshmen: For One, They're More Studious

NASFAA — Fri, 27 Jan 2012 00:00:00 GMT

"College freshmen report more behaviors and attitudes that predict academic success than they did in recent years, according to a new national survey by the Higher Education Research Institute (HERI) at the University of California, Los Angeles," the Christian Science Monitor reports. "The survey also shows shifts in political views, use of social media, and strategies for paying for college."

Texas: Undocumented Students Reminded to Seek Legal Status

NASFAA — Fri, 27 Jan 2012 00:00:00 GMT

"Undocumented students who get in-state tuition rates at Texas community colleges and universities will get annual reminders about their obligation to seek legal status in exchange for the break in their education expenses," the Texas Tribune reports. "The Texas Higher Education Board voted unanimously Thursday to tweak the policy for tuition breaks that can save students about half the cost of college tuition and fees."

Do Pell Grants 'Cause' Tuition Inflation?

NASFAA — Fri, 27 Jan 2012 00:00:00 GMT

Jan. 26, 2012 - Higher education and economics expert David Feldman writes in the College of William & Mary's "Why Does College Cost So Much?" blog about his presentation at NASFAA's forum on "The State of College Access," and the perception that Pell Grants are the cause of price inflation in higher education.

Why Were Pell Grants Left Out of Obama’s Speech

NASFAA — Fri, 27 Jan 2012 00:00:00 GMT

"In his State of the Union Speech last night, President Obama proposed reducing the interest rate on federally subsidized student loans in the 2013 fiscal year, expanding the Federal Work Study program, making the American Opportunity Tax Credit permanent, and pressuring colleges to curb tuition growth," Stephen Burd writes in the Quick and Ed blog. "But he made no mention of Pell Grants."

College Grad Rates Are 'Bad Data'

NASFAA — Fri, 27 Jan 2012 00:00:00 GMT

"The collegiate graduation rate may well be the most poorly constructed and misunderstood statistic in all of higher education," the Washington Post reports. "The metric became fashionable in the 1990’s in an effort to track the academic condition of NCAA athletes who seemed to be leaving college in large numbers without graduating."

Jan. 31 Is Deadline to Report Foreign Gifts and Contracts

NASFAA — Thu, 26 Jan 2012 00:00:00 GMT

Higher education institutions that participate in the Title IV federal student aid programs must disclose by Jan. 31 and July 31 (whichever is sooner after the threshold is met) any foreign gifts or contracts with foreign sources that exceed $250,000.

NASFAA Graduate and Professional Issues Committee Submits Letter to CFPB on Private Loans

NASFAA — Thu, 26 Jan 2012 00:00:00 GMT

The NASFAA Graduate and Professional Issues Committee (GPIC) and the AAMC Committee on Student Financial Assistance (COSFA) submitted their comments regarding Regulation Z requirements to the Consumer Financial Protection Bureau (CFPB) on private student loans. Although in agreement that borrowers need to be adequately informed of their loan rights and responsibilities, GPIC and COSFA argue that this requirement for educational loans provided through the Department of Health and Human Services (Title VII and Title VIII of the PHS) has amassed confusion to the awarding and disbursement process of such loans.

01-25: Errata and Updates - Volume 5 - Overawards, Overpayments, & Withdrawal Calculations [2011-12 Federal Student Aid Handbook]

NASFAA — Thu, 26 Jan 2012 00:00:00 GMT

Federal Student Aid has made a substantive revision to Volume 5 – Overawards, Overpayments, & Withdrawal Calculations of the 2011-12 Federal Student Aid Handbook. The revision has been added to the Errata and Updates for 2011-12 Federal Student Aid Handbook page and the updated PDF files are now available.

01-25: Loan Servicing Information - ESA/Edfinancial Joins Federal Loan Servicer Team

NASFAA — Thu, 26 Jan 2012 00:00:00 GMT

The Department of Education (ED) will expand its federal loan servicer team through new federal loan servicing contracts awarded under the HCERA/SAFRA Not-For-Profit (NFP) Servicer Program solicitation. The solicitation offered NFP entities the opportunity to submit proposals individually and in teams for servicing borrower accounts on ED's behalf.

Look Out for These Federal Aid Changes in 2012

NASFAA — Thu, 26 Jan 2012 00:00:00 GMT

Jan. 26, 2011 - U.S. News and World Report interviews NASFAA President Justin Draeger about the July 2012 interest rate change on federal subsidized loans and the elimination of the six-month grace period subsidy for recent graduates. "This follows a pattern of changes to student aid that are probably not very clear and transparent to students," Draeger said.

Warnings of Unintended Consequences

NASFAA — Thu, 26 Jan 2012 00:00:00 GMT

"In his State of the Union speech Tuesday night, President Obama delivered a brief message to colleges and universities: they are 'on notice,' and risk losing some federal money if net tuition prices continue to increase," Inside Higher Ed reports. "Just as quickly, Obama moved onto the next policy proposal without providing any further detail, such as what would constitute 'skyrocketing' tuition prices or what federal money might be yanked if colleges do not fight them."

Survey Finds That Dwindling Financial Aid Contributes to Fewer College Options

NASFAA — Thu, 26 Jan 2012 00:00:00 GMT

"College freshmen entering school last fall were less likely to attend their first choice of college, a function of both competition and cost, than at any other time since 1974, and fewer received financial aid through grants or scholarships, according to an annual survey of nearly 204,000 high school students," the New York Times reports. "The survey also indicated that more students are focusing on academics and that more freshmen say they have adopted liberal social views."

Congressman Braley Introduces Bill To Keep Student Interest Rates Down

NASFAA — Thu, 26 Jan 2012 00:00:00 GMT

"Rep. Bruce Braley on Wednesday introduced legislation that would indefinitely keep the interest rate for federally subsidized student loans at the current level of 3.4 percent," KCRG reports. "Braley, a Democrat representing Iowa’s First District said unless Congress takes action, student loan interest for subsidized Stafford loans will double to 6.8 percent on July 1, 2012."

State of the Union: What Can Obama Do About College Tuition?

NASFAA — Thu, 26 Jan 2012 00:00:00 GMT

"President Obama hit hard on issues of college affordability in his State of the Union address Tuesday night," the Christian Science Monitor reports. "He called on states to raise the compulsory age of education to 18; called on Congress to extend the tuition tax credit, to stop the interest on student loans from doubling in July, and to pass the DREAM Act; and issued a threat to higher education institutions who fail to keep costs in check and keep tuition down."

Federal Student Loan Rate Set to Double

NASFAA — Thu, 26 Jan 2012 00:00:00 GMT

"Attention college students: The interest rate on federal student loans is scheduled to double this summer unless Congress acts soon," CNN Money reports. "Loans taken out for the current school year carried an interest rate of 3.4%, thanks to a 2007 law that phased in rate reductions for subsidized Stafford loans to undergraduate students."

A New Challenge for College-Aid Seekers

NASFAA — Thu, 26 Jan 2012 00:00:00 GMT

"College financial aid season has just kicked off, and experts say students seeking state grants had better act fast," Smart Money reports. "At least six states, including Illinois, Kentucky and North Carolina, now have 'until funds depleted' policies on grants, meaning late filers risk getting nothing. Other states are shrinking the application window."

Students, Fill Out Your FAFSA!

NASFAA — Thu, 26 Jan 2012 00:00:00 GMT

"While federal loans may not be sufficient to cover the entire cost of an undergraduate education due to caps in Stafford loan eligibility, this is no longer the case for graduate and professional students," according to U.S. News and World Report. "The Grad PLUS loan allows graduate and professional students to cover their costs without private loans."

New York: SUNY Trustees Support Tuition Aid for Illegal Immigrants

NASFAA — Thu, 26 Jan 2012 00:00:00 GMT

"State University of New York trustees unanimously approved on Wednesday a resolution supporting a plan to offer state-sponsored tuition assistance, grants and scholarships to college-bound illegal immigrants who want to enroll in state schools," the New York Times reports. "The resolution adds the State University of New York to the growing roster of supporters for several bills circulating in Albany that would extend financial benefits to illegal immigrants, toppling what has perhaps been their greatest barrier to acquiring a college diploma."

Opinion: The DREAM Act Struggles On, Nameless But Alive

NASFAA — Thu, 26 Jan 2012 00:00:00 GMT

"It may be tempting to parse every word of President Obama’s State of the Union address on Tuesday night, but the omissions are far more illuminating," Juliette Kayyem writes in the Boston Globe. " Instead of resurrecting the DREAM Act, as many immigration advocacy groups heralded Tuesday night, Obama is pushing the Republicans closer to a compromise that they can’t afford to oppose."

Obama Calls on Colleges to Rein in Costs, Urges Support for Students

NASFAA — Thu, 26 Jan 2012 00:00:00 GMT

Jan. 25, 2012 - Education Week interviews NASFAA President Justin Draeger about President Obama's plan to decrease federal support for colleges if tuition keeps rising. "We're always concerned about proposals that would penalize schools, and ultimately students, for tuition increases when many times what causes a tuition increase is out of a college's hands," said Draeger.

The Evolution of American Higher Education

NASFAA — Thu, 26 Jan 2012 00:00:00 GMT

"Universities are typically change resistant, but change is imperative to ensure that a college education remains relevant and desirable," Butler University President James M. Danko writes in U.S. News and World Report's Best Practices blog. "Let's shed old constraints and step outside our comfort zones. Today's students are creative and inventive, and the colleges and universities they attend must be creative and inventive, too."

What Are Common Mistakes on the Financial Aid Application?

NASFAA — Thu, 26 Jan 2012 00:00:00 GMT

"By far, the most common misconception about filing for financial aid is that one needs to file taxes before applying. Instead, families should gather up their financial data (pay stubs, bank receipts, etc.) and estimate," Unigo writes in U.S. News and World Report's College Admission Q&As blog. "On both the FAFSA and the CSS PROFILE, there is an option to indicate that while you intend to file taxes, you have not yet done so."

State Of The Union: Obama Touts College Affordability, Tough Love For Teachers

NASFAA — Thu, 26 Jan 2012 00:00:00 GMT

"In his speech, Obama proposed shifting federal financial aid away from colleges that don't tamp down their spiraling tuitions -- a policy that, with its incentive-based structure, mirrors his K-12 reforms," Joy Resmovits writes in the Huffington Post Education blog. "That same policy was articulated in U.S. Secretary of Education Arne Duncan's 2012 budget request, and would require a fundamental reworking of the higher education aid system."

Alternatives To College: Succeeding Without Higher Education

NASFAA — Thu, 26 Jan 2012 00:00:00 GMT

"A large number of our young people are wasting valuable time and money in college when they could be learning a trade, working as apprentices, becoming entrepreneurs, or working in community service," author Karin Kasdin writes in the Huffington Post Post50 blog. "Increasingly, large companies today offer programs to teach employees the skills they need to perform in the jobs for which they are hired."

Obama Proposes Penalties for Rising Tuition Rates in State of the Union Address

NASFAA — Wed, 25 Jan 2012 00:00:00 GMT

In his third formal State of the Union address, President Obama made college affordability and job-training a central tenant in his plan to improve the economy, proposing that Congress penalize institutions for increasing tuition rates, stop student loan interest rates from doubling in July 2012 and extend education tax cuts.

SimpleTuition Takes Action to Prevent Suspicious Emails

NASFAA — Wed, 25 Jan 2012 00:00:00 GMT

After seeing financial aid community emails reporting suspicious emails from collegebudget.com that linked to SimpleTuition, the company indefinitely suspended the use of its student loan content and search portal for collegebudget.com because that it appeared to violate SimpleTuition’s policies.

01-24: 2012-13 Application Processing System Specifications for Software Developers (Final)

NASFAA — Wed, 25 Jan 2012 00:00:00 GMT

The Department of Education has posted the final 2012-13 Application Processing System Specifications for Software Developers. Other than removing designations of this version as a “draft,” no changes have been made to the specifications since the last posting (see the specifications posted on Dec. 27, 2011 and no further updates are planned for this document.

01-24: G5 Website Now Available

NASFAA — Wed, 25 Jan 2012 00:00:00 GMT

The system maintenance that impacted the G5 website on Monday, Jan. 23, 2012 was completed early Tuesday, Jan. 24, 2012. The G5 website is now available and users can conduct financial transactions.

On Notice

NASFAA — Wed, 25 Jan 2012 00:00:00 GMT

Jan. 25, 2011 - Inside Higher Ed interviews NASFAA President Justin Draeger about President Obama's State of the Union address, in which he proposed that Congress stop the federal student loan interest rate on undergraduate loans from doubling in July 2012.

Obama Doubles Down on DREAM Act

NASFAA — Wed, 25 Jan 2012 00:00:00 GMT

"President Obama on Tuesday intensified his pressure on Congress to create a pathway to citizenship for illegal immigrant students," the Hill reports. "In his State of the Union speech, the president said it 'doesn't make sense' to kick promising kids out of the country when they could be contributing to its economic growth. 'Many were brought here as small children, are American through and through, yet they live every day with the threat of deportation,' Obama said."

Race Matters

NASFAA — Wed, 25 Jan 2012 00:00:00 GMT

"The Department of Education has acknowledged using flawed data in a study on the impact of race on student loan repayment rates, having omitted black students from its calculation," Inside Higher Ed reports. "The analysis was conducted during the debate over gainful employment regulations, in response to complaints that the rules would hurt colleges that enroll relatively high percentages of minority students.

Obama Would Take Federal Aid From Colleges That Don’t Keep Tuition Down

NASFAA — Wed, 25 Jan 2012 00:00:00 GMT

"President Barack Obama is proposing to keep college affordable by yanking federal aid from colleges that don’t keep tuition down and provide good value," the Washington Post reports. "Obama also called on Congress Tuesday to keep interest rates down on subsidized federal student loans. And he wants to make more work-study jobs available for students who are paying their own tuition."

Biden Focuses on College Costs - Foreshadowing Obama’s State of the Union

NASFAA — Wed, 25 Jan 2012 00:00:00 GMT

"Vice President Joe Biden has become somewhat of a surrogate spokesman for the Obama administration’s efforts to make college accessible and affordable," Campus Progress reports. "In recent weeks, Biden stopped by schools in Pennsylvania, Ohio, and Nevada, arguing in his remarks at each event that a college degree is still an important component to creating a strong, innovative, and competitive American middle class."

State of the Union: Fact Checking the President

NASFAA — Wed, 25 Jan 2012 00:00:00 GMT

"In his State of the Union speech tonight, President Obama said Congress should slow interest rates on student loans because 'Americans owe more in tuition debt than credit card debt,'" ABC News reports. "As of late 2010, that’s true."

Washington: Higher Ed Officials Press Lawmakers to Avoid More Cuts

NASFAA — Wed, 25 Jan 2012 00:00:00 GMT

"Trustees and regents from the state’s colleges and universities spent Tuesday at the Capitol urging lawmakers to prevent further cuts to higher education," the Seattle Times reports. "Twenty-eight regents and trustees met with members from the House and Senate higher education committees and Marty Loesch, Gov. Chris Gregoire’s chief of staff, among others."

California: 'Cash for College' Scholarship Opportunities

NASFAA — Wed, 25 Jan 2012 00:00:00 GMT

"Students in attendance at one the 'Cash for College' workshops held in January and February will be able to qualify to win a scholarship, courtesy of California Student Aid Commission (CSAC) and Educational Credit Management Corporation (ECMC)," the Santa Barbara Independent reports. "Student Opportunity and Access Program of Santa Barbara (Cal-SOAP SB) is also sponsoring these workshops."

Obama Pushes Chicago-Style Community College/Employer Partnerships

NASFAA — Wed, 25 Jan 2012 00:00:00 GMT

"President Barack Obama, in his State of the Union speech, called for community colleges and businesses to form partnerships to train students with skills employers in their area explicitly need--programs that community colleges in Chicago have in place," Lynn Sweet writes in the Chicago Sun-Times. "'Now you need to give more community colleges the resources they need to become community career centers - places that teach people skills that local businesses are looking for right now, from data management to high-tech manufacturing,' Obama said."

01-17: 2012-13 Student Aid Eligibility Worksheet

NASFAA — Wed, 18 Jan 2012 00:00:00 GMT

The 2012-13 Student Aid Eligibility Worksheet for Question 23 is now available in English and Spanish. Both versions are attached in Portable Document Format (PDF).

01-17: Citing Institutions for Late Annual Audit Submissions

NASFAA — Wed, 18 Jan 2012 00:00:00 GMT

In order to participate in federal student aid programs, schools must generally submit an audit conducted by an independent auditor that includes a compliance audit and audited financial statements in accordance with 34 C.F.R.§ 668.23. Audits not received (missing) or submitted after the due date (late) demonstrate a lack of administrative capability and financial responsibility and may indicate mismanagement of federal student financial aid funds.

CFPB Seeks Private Student Loan Information for Congressional Report

NASFAA — Tue, 17 Jan 2012 00:00:00 GMT

The Consumer Financial Protection Bureau (CFPB) is seeking information about private student loans from students, schools, the student loan industry, and other stakeholders to help prepare a report to Congress. The Dodd-Frank Wall Street Reform and Consumer Protection Act requires the CFPB and the Department of Education to produce this report by July 21, 2012. Comments must be submitted by Jan. 17, 2012.

01-13: High-Level Overview — New Technology Security Initiatives for Federal Student Aid Systems 2012

NASFAA — Tue, 17 Jan 2012 00:00:00 GMT

The Department of Education has provided a high-level summary of the new technology security initiatives that are currently underway at Federal Student Aid. The planned initiatives comply with mandated government-wide security requirements and are part of an ongoing effort to ensure the security of the Federal Student Aid data systems. Some of the planned initiatives were introduced to schools in earlier announcements on the Information for Financial Aid Professionals (IFAP) website or at the 2011 Federal Student Aid Conference.

01-13: Beta Test Volunteers Needed for EDExpress 2012-13, Release 2.0

NASFAA — Tue, 17 Jan 2012 00:00:00 GMT

The Department of Education (ED) is recruiting schools and servicers to participate in the beta test of EDExpress for Windows 2012-13, Release 2.0. Beta testing is scheduled to run from Jan. 30 through Feb. 10, 2012. Beta test participants will have the opportunity to test Federal Pell Grant, TEACH Grant, and/or Direct Loan functionality in Release 2.0.

01-13: Special Direct Consolidation Loan Information - Federal Loan Servicer Contact Will Begin On/About Jan. 17, 2012

NASFAA — Tue, 17 Jan 2012 00:00:00 GMT

Through a series of communications, the Department of Education (ED) has informed the financial aid community about the availability of the Special Direct Consolidation Loan opportunity for eligible borrowers through the Direct Loan Program. This short-term special consolidation opportunity will be available to eligible borrowers from Jan. 17 – June 30, 2012.

Remembering Ed Jacobson, Financial Aid Software Pioneer

NASFAA — Thu, 12 Jan 2012 00:00:00 GMT

Ed was instrumental in developing some of the first commercially available information systems devoted to institutional management of the Title IV student financial programs.

Student Loan Negotiated Rulemaking Committee Tackles Rehabilitation and Discharge Issues

NASFAA — Thu, 12 Jan 2012 00:00:00 GMT

The student loan negotiated rulemaking committee added three new items to the agenda Wednesday, for a total of 27 issues now scheduled for negotiation, although some may be combined during the course of negotiation. Federal and non-federal negotiators have so far addressed 17 issues in the weeklong regulatory brainstorming session. On Wednesday, negotiators focused on defaulted loan rehabilitation and loan discharge issues.

Debating Award Letters at the 2011 FSA Conference

NASFAA — Thu, 12 Jan 2012 00:00:00 GMT

Award letters have been a source of debate for over 20 years and this was the case at the 2011 Federal Student Aid (FSA) conference in December. U.S. Department of Education officials held an award letter session to solicit feedback from the financial aid community as part of their effort to develop a model award letter for higher education institutions to use.

ANN-12-02: Training Recording - Return of Title IV Funds (R2T4)

NASFAA — Thu, 12 Jan 2012 00:00:00 GMT

This letter announces Federal Student Aid’s recorded training session on the R2T4 calculation. This 90-minute training session is intended for individuals in the financial aid office who are unfamiliar with the R2T4 requirements, or individuals who would like to learn more about performing the R2T4 calculation.

01-11: 2012-2013 Student Aid Eligibility Worksheet

NASFAA — Thu, 12 Jan 2012 00:00:00 GMT

The Department of Education announces the 2012-2013 Student Aid Eligibility Worksheet for Question 23 is now available in English and Spanish. Both versions are attached in Portable Document Format (PDF).

01-11: Guidance for EDExpress 2012-2013 Packaging Users to Exclude Subsidized Loan Eligibility for Graduate and Professional Students

NASFAA — Thu, 12 Jan 2012 00:00:00 GMT

As a result of the Budget Control Act of 2011, SEC. 502, subsidized loans cannot be awarded to graduate and professional students (college grade level 6 and 7) if the loan period begins on or after July 1, 2012. The Department of Education would like to provide guidance to EDExpress for Windows 2012-2013 Packaging module users about different approaches to setting up and controlling the awarding of subsidized loans to graduate or professional students.

01-11: Reminder: FAA Access to CPS Online Login Issue May Be Resolved by Updating Web Browser Bookmark

NASFAA — Thu, 12 Jan 2012 00:00:00 GMT

The Department of Education announces a reminder that FAA access to CPS online login issue may be resolved by updating web browser bookmark.

Video: ED to Review R2T4 Regulations for HEA Reauthorization

NASFAA — Wed, 11 Jan 2012 00:00:00 GMT

At the 2011 FSA Conference, ED officials said that legislative action by Congress is needed to make substantial changes to R2T4 regulations and that the Department will review these regulations in anticipation of the next reauthorization of the Higher Education Act in 2014.

ED Clarifies ICR and IBR changes at Student Loan Negotiating Rulemaking Committee

NASFAA — Wed, 11 Jan 2012 00:00:00 GMT

The student loan negotiated rulemaking committee added two new items to the agenda Tuesday and began discussions on eight of the 24 issues now scheduled for negotiation. This first week of meetings in the process is designed to brainstorm the issues so that the Department of Education (ED) can begin to draft proposed rule language that will be the basis of negotiation during the second week-long session to be held next month.

Student Loan Negotiated Rulemaking Committee Proposes Adding More Than 20 Issues to Agenda

NASFAA — Tue, 10 Jan 2012 00:00:00 GMT

The student loan negotiated rulemaking committee kicked-off yesterday with agreement on the protocols, including clarification of the U.S. Department of Education’s consensus rules, and negotiators proposing more than 20 additional topics to be debated in addition to the proposed list of 22 topics.

NASFAA Task Force to Present Congress with Higher Education Act Policy Recommendations

NASFAA — Tue, 10 Jan 2012 00:00:00 GMT

Jan. 9, 2012 -- As the 2013 Higher Education Act expiration approaches, NASFAA has formed a task force to consult with NASFAA’s membership and other important groups and agencies to develop recommendations to the NASFAA board on policy issues and specific statutory changes in the federal student aid programs and their delivery systems.

Retaking Coursework: New Guidance

NASFAA — Mon, 09 Jan 2012 00:00:00 GMT

Courses from which a student withdraws are not considered repeated coursework under the new regulations. It was a statement so surprising for many financial aid administrators at the 2011 Federal Student Aid Conference, they kept coming up to the podium to ask if they had heard the representatives from the Department of Education (ED) correctly. To further explain, NASFAA provides a scenario in this article.

ANN-12-01: Reminder - Live Internet Webinar on Gainful Employment Data Corrections

NASFAA — Mon, 09 Jan 2012 00:00:00 GMT

This letter reminds the community about an upcoming instructor-led, online training session that provides information on correcting gainful employment data that had been submitted to NSLDS by institutions. Registration remains open.

01-05: Birthday of Martin Luther King, Jr. Federal Holiday Processing and Customer Service Hours

NASFAA — Fri, 06 Jan 2012 00:00:00 GMT

The Department of Education's federal offices as well as some of its Title IV processors and call centers will be closed on Monday, Jan. 16, 2012 to observe the Birthday of Martin Luther King, Jr. federal holiday. This announcement includes the various centers’ operation status on the holiday.

01-05: 2012-13 Expected Family Contribution (EFC) Formula Guide (Jan. 2012 Update)

NASFAA — Fri, 06 Jan 2012 00:00:00 GMT

The Department of Education (ED) has posted the updated 2012-13 EFC Formula Guide on the Information for Financial Aid Professionals (IFAP) website. The guide includes EFC worksheets and tables for the 2012-13 processing cycle. The worksheets and tables in this guide can be used to calculate an estimated EFC for students.

01-05: Default Rates for Cohort Years 2005-09

NASFAA — Fri, 06 Jan 2012 00:00:00 GMT

This announcement contains an explanation of the three types of Default Rates and a summary of these rates for the Cohort Years 2005-09. The three types of rates are Cohort Default Rate, Budget Lifetime Default Rate (as reflected in the latest estimates as of July 1, 2011), and Cumulative Lifetime Default Rate.

01-04: Lender and Lender Servicer NSLDS Borrower Access

NASFAA — Thu, 05 Jan 2012 00:00:00 GMT

To address the need for a lender or lender servicer to have access to loan information for a borrower who does not have a direct relationship with that lender or servicer, the NSLDS Student Access website has been updated to allow a borrower to grant permission for a lender or lender servicer, with whom the borrower does not currently have a relationship, to access the borrower’s loan history.

Interest Rates for Federal Subsidized Loans to Jump to 6.8% on July 1, 2012

NASFAA — Wed, 04 Jan 2012 00:00:00 GMT

Without Congressional intervention, the interest rate for Federal Direct Subsidized Loans will change from 3.4 percent to 6.8 percent beginning July 1, 2012. The reason why has a lot to do with decade-old, long-term interest rate calculations and 2007 legislation aimed at easing student loan debt.

12-30: 2012-13 FAFSA on the Web Worksheet

NASFAA — Tue, 03 Jan 2012 00:00:00 GMT

The 2012-13 FAFSA on the Web Worksheet is now available in English and Spanish. The worksheet helps applicants prepare to complete the online FAFSA. ED encourages schools continue to remind students and their parents that the worksheet is not a FAFSA and will not be processed if submitted by mail.

12-30: 2012-13 Free Application for Federal Student Aid (FAFSA)

NASFAA — Tue, 03 Jan 2012 00:00:00 GMT

The final version of the 2012-13 Free Application for Federal Student Aid (FAFSA) is now available in English and Spanish. The FAFSA PDFs can be downloaded by schools or students for submission.

12-27: Operational Implementation Guidance - The Consolidated Appropriations Act and January Start-Up of 2012-13 FAFSA on the Web, FAA Access CPS Online, and CPS

NASFAA — Tue, 03 Jan 2012 00:00:00 GMT

The recently enacted Consolidated Appropriations Act made several changes to the Title IV programs including a reduction in the maximum income that makes an applicant eligible for an auto-zero EFC from $32,000 to $23,000. The 2012-13 FAFSA on the Web and 2012-13 FAA Access to CPS Online Web sites will be available with the updated auto-zero EFC income threshold amounts. In addition, the CPS will begin processing 2012-13 FAFSAs on Jan. 3 using the updated amounts.

12-28: Special Direct Consolidation Loan Information - Updated Information in Preparation for Jan. 17 Start

NASFAA — Tue, 03 Jan 2012 00:00:00 GMT

The Special Direct Consolidation Loan opportunity the Department will offer through Direct Loan Program will be available to eligible borrowers from Jan. 17 to June 30. The Department has nearly completed implementation and will make the online application available to eligible borrowers on Jan. 17. This announcement provides additional and updated information in anticipation of the mid-January 2012 start.

12-27: 2012-13 Application Processing System Specifications for Software Developers (Updated Dec. 2011 Draft)

NASFAA — Tue, 03 Jan 2012 00:00:00 GMT

The Department posted an update to the 2012-13 Application Processing System Specifications for Software Developers. This version updates the parameter for the Auto Zero EFC edits (3005-3008, 3013-3020) from $32,000 to $23,000. Details on the changed calculation for determining an applicant’s eligibility for the minimum Pell award, as well as the 2012-13 Pell Grant payment and disbursement schedules, will be provided within the next two weeks.

12-30: COD Processing Update

NASFAA — Tue, 03 Jan 2012 00:00:00 GMT

January 2012 will begin another peak processing period for the 2011-12 Award Year. In a Dec. 14, 2011 Electronic Announcement on the IFAP website, Federal Student Aid provides COD System peak processing reminders to assist schools with planning and processing.

Comment Request: Immigration--Status Confirmation

NASFAA — Tue, 03 Jan 2012 00:00:00 GMT

The Department seeks input from institutions of higher education that must submit a United States Citizenship and Immigration Services Form G0845 when automated secondary confirmation of the applicant's immigration match status fails, and individuals who must submit evidence of eligibility to receive Title IV financial assistance. Interested persons are invited to submit comments on or before Feb. 27.

12-22: Gainful Employment Electronic Announcement #31 - Gainful Employment Placement Rates and NCES Methodology

NASFAA — Fri, 23 Dec 2011 00:00:00 GMT

The regulations at 34 CFR 668.6(b)(1)(iv) provide that institutions that prepare students for gainful employment in a recognized occupation must disclose the placement rate for students completing a GE Program, as determined under a methodology developed by the National Center for Education Statistics (NCES). In March, NCES convened a technical review panel (TRP).

ANN-11-29: Live Internet Webinar – Gainful Employment Data Corrections

NASFAA — Thu, 22 Dec 2011 00:00:00 GMT

On Wednesday, Jan. 11, 2012 at 1:30 p.m. (ET), the Department of Education (ED) will be presenting the fifth in a series of webinars designed to provide institutions that participate in the Title IV Federal student assistance programs with information on the regulatory requirements related to Title IV-eligible educational programs that lead to gainful employment in a recognized occupation (GE Programs).

12-20: Newsletter 36: Supplementary Information - Change to the Login Process for NSLDS Professional Access Website

NASFAA — Thu, 22 Dec 2011 00:00:00 GMT

This newsletter provides supplementary information about the change to the login process for the NSLDS Professional Access Website.

12-20: LLS-2011-06: Supplementary Information - Change to Login Process for NSLDS Professional Access Website

NASFAA — Thu, 22 Dec 2011 00:00:00 GMT

The Technical Update, LLS-2011-06: Supplementary Information - Change to Login Process for NSLDS Professional Access Website, is attached in Microsoft Word Format and in Portable Document Format (PDF). The PDF file requires version 4.0 or greater of the free Adobe Acrobat reader.

12-20: GA-2011-09: Supplementary Information - Change to Login Process for NSLDS Professional Access Website

NASFAA — Thu, 22 Dec 2011 00:00:00 GMT

The Technical Update GA-2011-09: Supplementary Information – Change to Login Process for NSLDS Professional Access Website, is attached in Microsoft Word Format and in Portable Document Format (PDF). The PDF file requires version 4.0 or greater of the free Adobe Acrobat reader.

Georgia Yuan To Be Named Deputy Under Secretary of Education

NASFAA — Wed, 21 Dec 2011 00:00:00 GMT

The Department of Education will announce that Georgia Yuan, current Deputy General Counsel for Postsecondary and Regulatory Service, will succeed James Kvaal as the Department’s Deputy Under Secretary for Education. Yuan’s appointment is effective Jan. 3, 2012. Kvaal will leave the Department to join President Obama’s reelection campaign. According to the Department, "Georgia joined the Administration in January 2010 as the Deputy General Counsel for Postsecondary Education and Regulatory Service in the Office of the General Counsel for the U. S. Department of Education where she was responsible for leading the teams providing legal services to the Office of Postsecondary Education and Federal Student Aid."

12-20: Issue Alert: Use Student Inquiry to Access FAA Correction Entry in 2011-12 FAA Access to CPS Online until 2012-13 Start-Up

NASFAA — Wed, 21 Dec 2011 00:00:00 GMT

The Department of Education (ED) is alerting all users of the FAA Access to CPS Online website that the dropdown option for 2011-12 is currently not available for the FAA Correction Entry function due to issues resulting from system updates ED implemented to the site on Dec. 18, 2011. All other correction functionality is available on the FAA Access to CPS Online website.

12-19: Availability of 2012-2013 CPS Web Demonstration (Demo) Site and 2012-13 CPS Mainframe Test System

NASFAA — Tue, 20 Dec 2011 00:00:00 GMT

The Department of Education announced that the 2012-13 Central Processing System (CPS) Web Demonstration (demo) site and the mainframe portion of the 2012-13 CPS Test System are now available for your use. Most of the features of the production versions of 2012-13 FAFSA on the Web and FAA Access to CPS Online (including Return of Title IV Funds) are available on the demo site.

12-19: Full Availability of New Login Process for NSLDS Professional Access Website Users on Dec. 19, 2011

NASFAA — Tue, 20 Dec 2011 00:00:00 GMT

Early yesterday, the Department of Education informed the community of a delay in availability for some National Student Loan Data System (NSLDS) users. ED has resolved the issues, and all NSLDS user records have now been loaded into AIMS. The NSLDS and its new login process are now fully available to all users.

Comment Request: TEACH Grant Program Agreement to Serve

NASFAA — Tue, 20 Dec 2011 00:00:00 GMT

The College Cost Reduction and Access Act (Pub. L. 110-84) (the CCRAA) established the Teacher Education Assistance for College and Higher Education (TEACH) Grant Program under Part A of the Higher Education Act of 1965, as amended (the HEA). As a condition for receiving a Teacher Education Assistance for College and Higher Education (TEACH) Grant, a student must sign an Agreement to Serve.

Comment Request: Fiscal Operations Report for 2011-12 and Application to Participate for 2013-14 Fiscal Operations Report and Application to Participate and Reallocation Form E40-4P

NASFAA — Tue, 20 Dec 2011 00:00:00 GMT

The data submitted electronically in the Fiscal Operations Report and Application to Participate (FISAP) through FISAP on the web is used by the Department of Education to determine the institution's funding need for the award year and monitor program effectiveness and accountability of fund expenditures.

New Toolkit Provides Resources to Help Unaccompanied Homeless Youth

NASFAA — Mon, 19 Dec 2011 00:00:00 GMT

The National Association for the Education of Homeless Children and Youth (NAEHCY) has a new resource available to assist FAAs in their work with unaccompanied homeless youth. This "Unaccompanied Youth Toolkit" is specifically designed for college and university financial aid administrators. It includes a series of 1-2 page briefs that provide tools and strategies to help unaccompanied homeless youth complete the FAFSA, determine their eligibility as independent students, and support their success in post-secondary education.

12-16: Gainful Employment Electronic Announcement #30 - Gainful Employment Data Corrections

NASFAA — Mon, 19 Dec 2011 00:00:00 GMT

On Nov. 16, 2011, the Department released Gainful Employment Electronic Announcement #28 that discussed the Nov. 15, 2011 Gainful Employment (GE) reporting deadline and information relating to GE reporting corrections after an institution had submitted its GE data. The purpose of this electronic announcement is to provide additional guidance on the corrections deadlines as well as to provide additional guidance on the resolution of Social Security Number (SSN) conflicts.

Congress Reaches FY 2012 Budget Deal to Maintain Max. Pell, with Likely Caveats

NASFAA — Tue, 13 Dec 2011 00:00:00 GMT

Lawmakers in the House and Senate reportedly reached a deal yesterday on nine appropriations bills to fund government programs through the rest of fiscal year (FY) 2012. The final FY 2012 budget bill is expected to be released sometime today and will set 2012-13 award year spending levels for the federal student aid programs. While the official language has not been released, there is indication that the bill will maintain the $5,550 maximum Pell Grant for the 2012-13 award year by cutting spending on other student aid programs and reducing the number of Pell eligible students.

ANN-11-28: Webinar Recordings - Direct Loan Reports and Direct Loan Primer

NASFAA — Tue, 13 Dec 2011 00:00:00 GMT

Department of Education posts the recorded versions of two online, instructor-led training sessions on the Direct Loan Program. These two webinars, "Direct Loan Reports" and "Direct Loan Primer," are intended for financial aid office, business office, and technical support staff who are new to the Direct Loan Program and are involved in Direct Loan processing. No registration is required to view the recorded training sessions.

What About The Interest Rate? – Federal Student Loans

NASFAA — Tue, 13 Dec 2011 00:00:00 GMT

"An item that has not been discussed recently is the fact that the interest rate charged to financially needy students is set to double on July 1, 2012," writes J. Randy Green, director of financial aid at Wittenberg University, at CheapScholar.org. "Currently, subsidized Federal Direct Student Loans are made at 3.4%. Unless Congress ... takes action, these loans will carry a rate of 6.8% for 2012-2013 and beyond.

12-09: OUTAGE ALERT - Federal Student Aid Website and System Outages Scheduled for Dec. 18, 2011

NASFAA — Mon, 12 Dec 2011 00:00:00 GMT

On Dec. 18, 2011, the Department of Education (ED) plans to implement annual system updates to the Student Aid Internet Gateway (SAIG) Enrollment website. The updates will add the 2012-13 Award Year to the appropriate services. In addition, users currently enrolled for 2011-12 batch services or FAA Access to CPS Online services will be automatically enrolled for those services for the 2012-13 cycle.

Comment Request: Discharge Application for FFEL Program, Federal Direct Loan Program, Federal Perkins Loan Program, and TEACH Grant Program

NASFAA — Mon, 12 Dec 2011 00:00:00 GMT

The Discharge Application: Total and Permanent Disability serves as the means by which an individual who is totally and permanently disabled applies for discharge of his or her Federal Direct Loan, Federal Family Education Loan (FFEL), or Federal Perkins Loan program loans, or Teacher Education Assistance for College and Higher (TEACH) Education Grant service obligation. Interested persons are invited to submit comments on or before Jan. 11, 2012.

Louisiana: Time of Financial Aid Disbursement Depends on School

NASFAA — Mon, 12 Dec 2011 00:00:00 GMT

Dec. 10, 2011 - The Shreveport Times interviews NASFAA Director of Communications Haley Chitty about when in the semester institutions disperse financial aid. Some schools, like Louisiana Tech University, wait until further into the quarter of the semester to disburse money. 'More schools are looking toward this type of thing to ensure program integrity,' Chitty said.

GEN-11-21: Expected Family Contributions of 99,999

NASFAA — Wed, 07 Dec 2011 00:00:00 GMT

The purpose of this letter is to describe the special actions that an institution must take, beginning with the 2012-13 Award Year, when the Expected Family Contribution (EFC) of a student is reported as 99,999. Over the past several years, there has been an increasing number of Free Application for Federal Student Aid (FAFSA) filers whose EFC equals or exceeds 100,000. However, the Department’s Central Processing System (CPS), the Institutional Student Information Record (ISIR), and the Student Aid Report (SAR) field lengths for EFC are only five digits. This means that a calculated EFC of 100,000 or more results in a CPS stored and ISIR/SAR reported EFC of 99,999.

2011-2012 Deadlines for Financial Aid Offices

NASFAA — Mon, 05 Dec 2011 00:00:00 GMT

This calendar will help you manage the major deadlines associated with maintaining your eligibility to receive federal student aid funds.

12-02: Upcoming Public Comment Period for NSLDS Enrollment and Gainful Employment Reporting Data Standards

NASFAA — Mon, 05 Dec 2011 00:00:00 GMT

The Department of Education (ED) alerts the community of an upcoming public comment period on proposed National Student Loan Data System (NSLDS) reporting data standards, including Extensible Markup Language (XML) schema for enrollment reporting and gainful employment reporting. In the coming year ED will offer XML as an NSLDS reporting option for schools to exchange enrollment and gainful employment data with the Department.

Some Students Are Leaving College with Huge Private Loans

NASFAA — Mon, 05 Dec 2011 00:00:00 GMT

Dec. 4, 2011 - The Baltimore Sun interviews NASFAA President Justin Draeger about student borrowing and the terms and conditions of all loans. Draeger said NASFAA will advise the consumer bureau to require that private loans be certified by schools to prevent overborrowing.

VOW to Hire Heroes Act Creates New Benefit for Unemployed Veterans

NASFAA — Wed, 23 Nov 2011 00:00:00 GMT

Congress passed, and the President has signed into law, the VOW to Hire Heroes Act of 2011. The new law Includes a provision creating the Veterans Retraining Assistance Program for unemployed Veterans. The Department of Veteran Affairs (VA) and the Department of Labor (DoL) are working together to roll out this new program on July 1, 2012. The new program will provide 12 months of training assistance to eligible, unemployed Veterans.

GEN-11-19: Revised Loan Discharge Application -- Unpaid Refund

NASFAA — Wed, 23 Nov 2011 00:00:00 GMT

This letter announces the approval of the revised version of the “Loan Discharge Application: Unpaid Refund” for use by borrowers in the Direct Loan Program, FFEL Program, and Perkins Loan Program. The revised form includes minor changes from the previous version. The form allows borrowers to apply for a loan discharge when a portion of a loan was not refunded in accordance with the regulations.

Updated Cohort Default Rate Guide

NASFAA — Wed, 23 Nov 2011 00:00:00 GMT

The Department has posted the updated Cohort Default Rate Guide. All sections were updated to reflect changes required by the Higher Education Opportunity Act. Additionally, information on the Electronic Cohort Default Rate Appeals is now reflected in the updated Guide.

Notice and Request for Information Regarding Private Education Loans and Private Educational Lenders

NASFAA — Thu, 17 Nov 2011 00:00:00 GMT

The Consumer Financial Protection Bureau (CFPB) is seeking information from students, schools, industry, and other stakeholders on the private student loan market. The CFPB plans to collect data on a series of issues impacting private student loans from origination to servicing to collection.

11-16: Update to Foreign School Assessments (Nov. 2011)

NASFAA — Thu, 17 Nov 2011 00:00:00 GMT

In Foreign School Update FS-2011-07, the Department of Education (ED) announced the availability of the Foreign School Assessments. This new compliance tool is designed to support a foreign school in the assessment and enhancement of its internal operations and services related to administering the Federal Direct Loan Program. ED has made two updates to the "Foreign Schools: Consumer Information Disclosures At A Glance" document within the Consumer Information assessment.

11-16: 2011-12 COD Technical Reference (Nov. 2011 Update)

NASFAA — Thu, 17 Nov 2011 00:00:00 GMT

The Department of Education has posted the updated 2011-12 Common Origination and Disbursement (COD) Technical Reference, which contains development information for the 2011-12 Award Year. For a complete list of updates, refer to the “November 2011 Change Tracking Log.”

Propose Interest Session Ideas for the 2012 National Conference

NASFAA — Wed, 16 Nov 2011 00:00:00 GMT

Got a great idea for an interest session topic for the 2012 NASFAA Conference, but don't have all the information to fill out our interest session proposal form? The Conference Committee recognizes that many members may have great ideas for session topics, but may not know the right financial aid professional to present or moderate the session. While we hope that members take the opportunity to submit interest session proposals, we don't want to exclude any great ideas. You can email your interest session topic ideas to your regional representative on the Conference Committee. Those email addresses are provided in this announcement.

11-15: Experimental Sites Initiative - Reminder of Dec. 12 Deadline and Q&As

NASFAA — Wed, 16 Nov 2011 00:00:00 GMT

On Oct. 27, 2011, the Department of Education published a notice in the Federal Register soliciting requests from postsecondary educational institutions to participate in one or more of eight experiments that will be conducted under the Experimental Sites Initiative. The deadline for an institution to respond to the solicitation is Dec. 12, 2011.

11-15: Direct Loan Processing Information - New Street Address for Mailing Paper Master Promissory Notes and Endorser Addenda Effective Dec. 19, 2011

NASFAA — Wed, 16 Nov 2011 00:00:00 GMT

On Dec. 19, 2011, the street address for sending paper Master Promissory Notes (MPNs) and Endorser Addenda to the Department of Education via express or overnight delivery will change. There is no change to the current P.O. Box address used for regular postal delivery.

11-10: OUTAGE ALERT - Federal Student Aid Website Outages Scheduled for Nov. 19-20

NASFAA — Mon, 14 Nov 2011 00:00:00 GMT

During the period of Nov. 19-20, 2011, the Department of Education plans to execute extended website maintenance and operating system upgrades to several Federal Student Aid websites in addition to routine maintenance that occurs each weekend. This announcement provides information about the websites that will be affected during the extended maintenance period.

11-10: Loan Servicing Information - First Quarter’s Customer Service Performance Results

NASFAA — Mon, 14 Nov 2011 00:00:00 GMT

As explained in previous communications, Federal Student Aid awarded four new contracts in June 2009 to provide additional servicing capacity for loans owned by the Department of Education (the Department). These loans include William D. Ford Federal Direct Loan (Direct Loan) Program loans and Federal Family Education Loan (FFEL) Program loans purchased by the Department under the authority granted the Secretary in the Ensuring Continued Access to Student Loans Act (ECASLA) and through methods commonly referred to as a “PUT.”

True Cost of Higher Education

NASFAA — Mon, 14 Nov 2011 00:00:00 GMT

Nov. 11, 2011 - PBS Nightly Business Report interviews NASFAA President Justin Draeger about financial aid award letters and whether they should be standardized. Draeger said "the draft is a good start. But, he says regulators should be careful about what disclosures they require of schools."

New Student Loan Plan: Who Qualifies and How to Enroll

NASFAA — Mon, 14 Nov 2011 00:00:00 GMT

Nov. 11, 2011 - Fox Business interviews NASFAA Communications Director Haley Chitty about the Obama administration's changes to Income-Based Repayment (IBR). "Basically, the new IBR plan is more generous for those who qualify," Chitty said. "Under the new program, eligible borrowers will have their monthly student loan payments limited to 10% of their discretionary income, down from 15% under the current program."

Majority of Adults Age 18-34 Opposed to Cuts to Pell Grants and Loan Subsidies

NASFAA — Thu, 10 Nov 2011 00:00:00 GMT

Most adults age 18 to 34 in the United States oppose cuts to the Federal Pell Grant program and view college as harder to afford today than it was five years ago, according to a the results of a survey conducted by Lake Research Partners and Bellwether Research and Consulting, which was commissioned by The Institute for College Access & Success (TICAS), Demos, and Young Invincibles. Three in four of the young adults surveyed do not want to see Pell Grants cut, and 73 percent oppose charging students with financial need interest on their federal loans before they graduate.

11-09: 2011 FSA Fall Conference Information

NASFAA — Thu, 10 Nov 2011 00:00:00 GMT

The majority of the session presentations for this year’s Federal Student Aid (FSA) conference have been posted online. The remaining presentations will be posted next week. In an effort to conserve natural resources, reduce waste, minimize its impact on the environment and lower conference costs, FSA will not be providing any printed session presentations at the conference. Please plan to print out the presentations of those sessions you wish to attend and bring them to the conference.

11-09: Thanksgiving Day Federal Holiday Processing and Customer Service Hours

NASFAA — Thu, 10 Nov 2011 00:00:00 GMT

Our Federal offices as well as some of our Title IV processors and call centers will be closed on Thursday, Nov. 24, 2011 to observe the Thanksgiving Day Federal holiday. In addition, some of the Title IV processors and call centers will be closed on Friday, Nov. 25, 2011. See the attachment for the various centers’ operation status on the holiday.

Comment Request: 2011-12 National Postsecondary Student Aid Study (NPSAS:12) Full Scale Student Data Collection

NASFAA — Thu, 10 Nov 2011 00:00:00 GMT

National Postsecondary Student Aid Study (NPSAS), a nationally representative study of how students and their families finance education beyond high school, was first implemented by the National Center for Education Statistics (NCES) in 1987 and has been fielded every three to four years since. This submission is for collection of student data in the eighth cycle in the series, NPSAS:12.

11-08: 2011 FSA Conference Presentations

NASFAA — Wed, 09 Nov 2011 00:00:00 GMT

Federal Student Aid has released its 2011 conference presentations. You can download and print the session presentations you plan to attend. Session handouts will not be available on-site.

Utilizing Reported Federal Financial Aid Data For Policy Research Presents Challenges

NASFAA — Tue, 08 Nov 2011 00:00:00 GMT

Ever wonder what happens to all the data the nation’s financial aid offices report to the Department of Education? Ideally all that information would be collected, analyzed and compared to paint a timely and comprehensive picture of student financial aid to inform future decisions on financial aid policy. Unfortuantely the limitations of these data sources, including Integrated Postsecondary Education Data System (IPEDS), Federal Student Aid (FSA) and the National Student Loan Data System (NSLDS), make it difficult "to gain a complete picture of the sources, types, and amounts of aid going to students at institutions of higher education and the relationship between aid and policy goals such as access and success," according to a study by the National Postsecondary Education Cooperative (NPEC) Working Group on Financial Aid Data.

11-07: Notice of Establishment of Negotiated Rulemaking Committee

NASFAA — Tue, 08 Nov 2011 00:00:00 GMT

On Oct. 28, 2011, the Department published a notice announcing its intent to establish a negotiated rulemaking committee to prepare proposed regulations governing the student loan programs. The notice also requests nominations for individual negotiators to serve on this committee. The deadline for submission of nominations is Nov. 28, 2012.

11-01: 2012-13 Federal School Code List of Participating Schools (Nov. 2011)

NASFAA — Wed, 02 Nov 2011 00:00:00 GMT

The Department of Education (ED) has made available the initial 2012-13 Federal School Code (FSC) List of Participating Schools on the Information for Financial Aid Professionals (IFAP) website. The Federal School Code List contains the unique codes assigned by ED for schools participating in the Title IV federal student aid programs. Students enter these codes on the Free Application for Federal Student Aid (FAFSA) to indicate which postsecondary schools will receive the processed application results.

10-31: Experimental Sites - Posting of Federal Register Notice

NASFAA — Tue, 01 Nov 2011 00:00:00 GMT

On Oct. 27, 2011, a notice was published in the Federal Register announcing the Secretary’s intent to solicit requests from postsecondary educational institutions to participate in one or more of eight experiments. The deadline for an institution to respond to the Secretary’s solicitation is Dec. 12, 2011.

Obama Administration Provides Additional Student Loan Plan Details

NASFAA — Tue, 01 Nov 2011 00:00:00 GMT

Obama administration officials provided additional details about their plans to provide relief for some student loan borrowers, but say that the U.S. Department of Education will use negotiated rulemaking to develop implementation details for the plan to offer more generous Income Based Repayment (IBR) terms in 2012.

November 6-7, 2011 - Las Vegas, Nevada

NASFAA — Wed, 19 Oct 2011 00:00:00 GMT

Agenda President’s Report Chair Elect’s Report Regional Reports Committee Reports Governance Committee Reports

10-18: 2012-13 ISIR Guide

NASFAA — Wed, 19 Oct 2011 00:00:00 GMT

The Department of Education has posted the 2012-13 ISIR Guide. The ISIR Guide assists financial aid administrators (FAAs) in interpreting student information on the Institutional Student Information Record (ISIR). ISIRs contain processed student information reported on the FAFSA, as well as key processing results and National Student Loan Data System (NSLDS) financial aid history information. ISIRs are sent electronically to institutions by the Central Processing System (CPS).

10-24: Availability of EDExpress for Windows 2011-12, Release 4.0

NASFAA — Tue, 25 Oct 2011 00:00:00 GMT

The Department of Education has posted EDExpress for Windows 2011-12, Release 4.0, on the Department's Federal Student Aid Download website. Release 4.0 includes updates to Global and App Express functionality to coincide with the Central Processing System (CPS) modification implemented on Oct. 23, 2011 that now assigns pseudo-Social Security Numbers (SSNs) starting with “666” to Pacific Island students.

Audio: Changing Federal Student Aid

NASFAA — Tue, 25 Oct 2011 00:00:00 GMT

Oct. 25, 2011 - NASFAA President Justin Draeger talks to NPR's Marketplace about the transition to the Direct Student Loan program. Draeger told NPR that "some schools miss the financial literacy and debt counseling programs private companies used to provide. 'We're working with the Department of Education right now to fill that gap, but schools have said that there's a noticeable absence of some of those materials that they relied heavily on in the past," Draeger said."

GEN-11-17: Fraud in Postsecondary Distance Education Programs - URGENT CALL TO ACTION

NASFAA — Fri, 21 Oct 2011 00:00:00 GMT

The purpose of this letter is to provide guidance to address potential fraud in the Federal student aid programs at institutions of higher education that offer distance education programs. This letter provides an overview of the fraud schemes that the Department’s Inspector General (IG) detected, and recommends immediate steps that institutions can take to detect and prevent fraud. In this letter, the Department of Education also describes further actions that institutions can take and that the Federal government is committed to taking, including increasing technical assistance to institutions of higher education, the convening of a Department-wide task force on distance education fraud, and plans for recommending legislative and regulatory changes to address the relevant issues.

10-17: 2012-13 CPS Test System User Guide Available on FSAdownload Website

NASFAA — Tue, 18 Oct 2011 00:00:00 GMT

The Department of Education (ED) has posted the 2012-13 CPS Test System User Guide on the Federal Student Aid Download (FSAdownload) website. This guide provides instructions for using the Central Processing System (CPS) Test System, which includes two testing environments: a mainframe test environment and a web demonstration site.

10-14: Additional COD System Implementation for 2011-2012 Award Year

NASFAA — Mon, 17 Oct 2011 00:00:00 GMT

During the period Oct. 21-22, the Department plans to implement additional COD System functionality for the 2011-12 Award Year. This announcement provides important information about COD batch processing suspension and website outage information and COD system processing function enhancements and modifications for 2011-12.

10-14: Loan Servicing Information - Direct Loan Servicing Center (ACS) Borrower Web Site Available Again (Update #11)

NASFAA — Mon, 17 Oct 2011 00:00:00 GMT

The new Direct Loan Servicing Center (ACS) borrower Web site (www.myedaccount.com) was taken down on Oct. 13, but the site is again operational. The Department will continue to closely monitor the functioning of the new website and keep the school community informed as necessary.As a result of the transition to the new Direct Loan Servicing Center (ACS) borrower website and start-up issues experienced this first week, many more borrowers than usual have been calling the Direct Loan Servicing Center for assistance. Due to the high volume, borrowers have then experienced difficulty getting through to the call center and/or longer than normal wait times. While it will not be immediate, ED anticipates steady progress towards acceptable call center access and response time now that the borrower website is available.

10-06:COD Common Record XML Schema Version 3.0e

NASFAA — Tue, 11 Oct 2011 00:00:00 GMT

During the period March 9-10, 2012, the Department of Education (ED) plans to implement Common Origination and Disbursement (COD) System functionality that will support the processing of Federal Pell Grant, Iraq and Afghanistan Service Grant, Teacher Education Assistance for College and Higher Education (TEACH) Grant, and Federal Direct Loan awards for the 2012-13 Award Year. In conjunction with this implementation, ED will begin using a new version of the COD Common Record Extensible Markup Language (XML) Schema. The new schema version is 3.0e.

10-07: Voluntary Flexible Agreement Proposals

NASFAA — Tue, 11 Oct 2011 00:00:00 GMT

On Friday, Oct. 7, 2011 the Department of Education posted to the Financial Partners Portal website the 22 Voluntary Flexible Agreement proposals that were submitted to the Department by FFEL Program Guaranty Agencies.

10-07: Operational Implementation Guidance - Implementation of Federal Student Aid System and Software Updates on October 23, 2011 for New SSA Guidelines

NASFAA — Tue, 11 Oct 2011 00:00:00 GMT

As described in the June 23, 2011 electronic announcement posted to the Information for Financial Aid Professionals (IFAP) website, the Social Security Administration (SSA) implemented new guidelines on June 25, 2011 for assigning Social Security Numbers (SSNs) that include assigning SSNs in previously unused numeric ranges. In a follow-up July 8, 2011 electronic announcement, the Department of Education provided interim guidelines for assisting students assigned SSNs after June 25, 2011, and indicated that a permanent solution would be implemented on Oct. 23, 2011.

Satisfactory Progress Assessments for Remedial Coursework

NASFAA — Thu, 06 Oct 2011 00:00:00 GMT

Recently questions have arisen regarding treatment of remedial coursework under the new Satisfactory Academic Progress (SAP) requirements. According to the Department of Education (ED), any Title IV-eligible coursework needs to be subject to an assessment of progress. However, if remedial coursework is auxiliary to, rather than part of, the student’s program of study, it does not necessarily have to be incorporated into the progress assessment of the regular program. Thus, a school may assess the remedial work under some different standard, as defined by the school’s SAP policies.

Report Finds Taxpayers Subsidizing Elite Schools More Than Other Higher Education Institutions

NASFAA — Thu, 06 Oct 2011 00:00:00 GMT

Average taxpayers provide more in subsidies, including state appropriations and research and development funding, to elite public and private schools than to the less competitive schools that their children are more likely to attend, according to a new report by the American Enterprise Institute for Public Policy Research (AEI). The report found that while public institutions generally receive a larger share of taxpayer subsidies through state appropriations - which has declined over the past few years - the cost per student increases at all types of institutions the more selective their admissions process. These selective institutions are, however, more likely to receive research and development funding, which increases taxpayer investment.

09-26: Removal of Data for Closed Award Years from Production Environment (Updated Oct. 4, 2011)

NASFAA — Thu, 06 Oct 2011 00:00:00 GMT

On Oct. 4, 2011, the Department of Education (ED) updated a Sept. 26 announcement to reflect the extension of the outage period associated with the removal of data for closed award years. ED will suspend batch processing beginning at 8 p.m. (ET) on Friday, Oct. 7, 2011. Records submitted after this will be held and processed after 2 a.m. (ET) on Sunday, Oct. 9, 2011. In addition to this outage, routine website maintenance that occurs each Sunday will also be completed as scheduled.

Higher Education Officials, NASFAA Members Talk Regulatory Burden with Advisory Committee

NASFAA — Mon, 03 Oct 2011 00:00:00 GMT

Higher education officials attending the regulatory burden portion of the Advisory Committee on Student Financial Assistance's (ACSFA) public hearing Friday unanimously agreed that duplicative and unnecessarily burdensome regulations take up too much time and too many resources in the their postsecondary institutions. ACSFA is currently in the process of producing a final report on regulatory burden in higher education, and invited members of the higher education community to provide their recommendations for the committee moving forward.

Congress Passes Stop-Gap Spending Bill to Prevent Shutdown

NASFAA — Wed, 05 Oct 2011 00:00:00 GMT

The House approved a stop-gap spending bill known as a continuing resolution (CR) Tuesday to maintain funding for federal programs through Nov. 18 and give Congress more time to the finalize fiscal year (FY) 2012 budget. President Obama plans to sign the CR today. The CR buys Congress a few more months to settle the fiscal year (FY) 2012 appropriations process, since they failed to pass individual appropriations bills before the beginning of FY 2012 on Oct. 1.

09-26: Gainful Employment Electronic Announcement #23 - Gainful Employment Reporting Functionality Now Available on NSLDS

NASFAA — Tue, 27 Sep 2011 00:00:00 GMT

Online reporting functionality for gainful employment is now available on the National Student Loan Data System (NSLDS), including the NSLDS Professional Access website. Detailed information about the use of NSLDS for reporting gainful employment data is provided in the NSLDS Gainful Employment User Guide, available on the NSLDS User Documentation page of the Information for Financial Aid Professionals (IFAP) website, as well as from the "Resources" section of the Gainful Employment Information Page.

09-20: Gainful Employment Electronic Announcement #21 - Live Internet Webinar - Additional Information on the NSLDS Gainful Employment Reporting Process

NASFAA — Wed, 21 Sep 2011 00:00:00 GMT

The Department of Education (ED) posted a Training Announcement (ANN-11-20) informing schools of an Oct. 13, 2011 webinar on the new gainful employment regulations. This webinar will provide an updated technical overview of the National Student Loan Data System (NSLDS) gainful employment reporting process and has been updated with the most current information.

President's Debt Plan Would Maintain Pell Grant Maximum Over 10 Years

NASFAA — Tue, 20 Sep 2011 00:00:00 GMT

President Obama's plan to reduce the deficit by increasing taxes on the wealthy and cutting entitlement spending went to the Joint Select Committee on Deficit Reduction, or the super committee, Monday. The plan includes $3 trillion in deficit reduction recommendations, twice as much as the super committee is tasked with finding, but many Republicans have already expressed opposition. Though the debt reduction plan does not make any cuts to education spending, it does provide an additional $50 billion in the adjusted baseline over 10 years to maintain the $5,550 maximum Federal Pell Grant award.

Students Paying a Greater Share of Higher Education Costs

NASFAA — Thu, 15 Sep 2011 00:00:00 GMT

Institutions continue to increase tuition to cover declines in other revenue sources like state appropriations so students and families continue to pay a larger share of higher education costs, according to a new report by the Delta Project, an organization dedicated to studying college spending with the aim of improving affordability. The increases in tuition revenue allows institutions to maintain, but rarely increase spending per full-time student. The report “Trends in College Spending 1999-2009: Where Does the Money Come From? Where Does It Go? What Does It Buy?” examines national college spending and revenue trends in the years leading up to and including the beginning of the current recession, from 1999 to 2009.

Obama’s Jobs Plan Includes Renovations for Community Colleges

NASFAA — Fri, 09 Sep 2011 00:00:00 GMT

President Obama proposed a new plan to stimulate the economy through job growth in front of a joint session of Congress last evening. The price tag associated with the package is a projected $447 billion, all of which would be paid for as part of the president's long-term deficit reduction plan. While the President only made a small reference to higher education, including a pitch for college access, his proposal includes $5 billion for infrastructure at community colleges.

09-08: EDExpress for Windows 2012-13 Packaging Technical Reference Available on FSAdownload Website

NASFAA — Fri, 09 Sep 2011 00:00:00 GMT

The 2012-13 Packaging Technical Reference provides instructions and record layouts for schools and other organizations that need to integrate their software or systems with the EDExpress 2012-13 Packaging module (available January 2012). Record layouts are included for all imports from external systems, such as Packaging Import External Add, Packaging Import External Change, and Packaging Import Add Funds. Packaging module setup guidance and setup worksheets are also provided.

09-02: POSTPONED-Full Conversion to New Debt Management and Collections System

NASFAA — Tue, 06 Sep 2011 00:00:00 GMT

Previously, in an August 24, 2011 Electronic Announcement posted on the Information for Financial Aid Professionals (IFAP) website, the Department of Education informed the financial aid community about the full conversion to a new debt management and collections system and its impact to processing during August and September 2011.

09-02: Program Integrity Information - Questions and Answers

NASFAA — Tue, 06 Sep 2011 00:00:00 GMT

On Oct. 29, 2010, the Department published in the Federal Register final regulations on program integrity issues (75 FR 66832). These final regulations make a number of changes to the regulations governing the student assistance programs authorized by Title IV of the Higher Education Act of 1965, as amended (HEA). The regulations were generally effective July 1, 2011, except for revisions to Subpart E of part 668 of the Student Assistance General Provision regulations, Verification and Updating of Student Aid Application Information, which are effective July 1, 2012.

08-30: 2011-2012 ISIR Guide (August 2011 Update)

NASFAA — Wed, 31 Aug 2011 00:00:00 GMT

The Department of Education has posted the updated 2011-12 ISIR Guide. The ISIR Guide assists financial aid administrators (FAAs) in interpreting student information on the Institutional Student Information Record (ISIR). ISIRs contain processed student information reported on the Free Application for Federal Student Aid (FAFSA), as well as key processing results and National Student Loan Data System (NSLDS) financial aid history information. ISIRs are sent electronically to institutions by the Central Processing System (CPS).

08-30: 2011-12 SAR Comment Codes and Text Guide (Aug. 2011 Update)

NASFAA — Wed, 31 Aug 2011 00:00:00 GMT

The Department of Education has posted the updated 2011-12 SAR Comment Codes and Text reference guide. The reference guide is designed as a stand-alone guide as well as a companion to the 2011-12 EDE Technical Reference. The guide includes a description of changes to the SAR comments for 2011-12, and also provides the complete text for all 2011-12 comments. The Aug. 2011 update includes a revision to add comment 147 as a result of the new Social Security Administration (SSA) guidelines for assigning Social Security Numbers (SSNs).

08-26: Direct Loan Processing Information - Master Promissory Note Print Option and Promissory Print Code Tag in Common Records

NASFAA — Mon, 29 Aug 2011 00:00:00 GMT

Over the past several months, Federal Student Aid (FSA) has observed that many schools are routinely requesting that the Common Origination and Disbursement (COD) System print and mail paper Master Promissory Notes (MPNs) to each borrower. To reduce the number of paper MPNs printed unnecessarily, FSA remind schools that a paper MPN should only be printed and mailed to a borrower when the borrower asks for paper MPN and the school does not print paper MPNs or does not have the paper form available.

Poor College Completion Rate Costs the U.S. Billions

NASFAA — Tue, 23 Aug 2011 00:00:00 GMT

The U.S. and state governments lose out on billions in tax revenue because four in 10 college students are unlikely to earn their degree within six years, according to a new report by the American Institute for Research (AIR). The AIR study finds that of the 1.1 million full-time students who entered a four-year college in 2002 seeking bachelor degrees, almost 500,000 did not graduate within six years. AIR estimates that in 2010 these students cost the U.S. $3.8 billion in lost income that would have resulted in $566 million more in federal income taxes and $164 million more in lost state income taxes. In all, the 40 percent of freshmen in 2002 who failed to earn their degree costs the country $4.5 billion in 2010.

08-22: State Authorization - Documentation of One-Year Extensions of Effective Date

NASFAA — Tue, 23 Aug 2011 00:00:00 GMT

This Electronic Announcement provides guidance regarding documentation of the one-year extensions of the effective date of the regulations at 34 CFR 600.9(a) and (b), which set forth the requirements for an institution of higher education, a proprietary institution of higher education, and a postsecondary vocational institution to be considered legally authorized by a State. The program integrity final regulations provide that institutions unable to obtain State authorization may receive a one-year extension of the effective date of the regulations to July 1, 2012, and if necessary, an additional one-year extension to July 1, 2013.

08-22: 2011-12 Supplemental Campus-Based Awards

NASFAA — Tue, 23 Aug 2011 00:00:00 GMT

Each year prior to Sept. 30, the Department of Education (ED) uses information collected on the Campus-Based Reallocation Form (ED Form E40-4P) to reallocate unexpended Federal Supplemental Educational Opportunity Grant, Federal Work-Study, and Federal Perkins Loan program funds from the previous award year as supplemental allocations for the current award year. Accordingly, ED will distribute the supplemental Campus-Based awards for the 2011-12 Award Year to schools that meet the required conditions for receipt of such funds.

Corrections: Institutions and Lender Requirements for Education Loans, Student Assistance General Provisions, Federal Perkins Loan Program, FFELP, and Direct Loan Program

NASFAA — Mon, 22 Aug 2011 00:00:00 GMT

This notice makes corrections to minor technical errors in the October 28, 2009 final regulations to implement requirements relating to education loans that were added to the Higher Education Act of 1965. The Department of Education amended regulations for the Student Assistance General Provisions, Federal Perkins Loan Program, Federal Family Education Loan Program, and Federal Direct Loan Program to implement certain provisions of the HEA that involve school-based loan issues and that were affected by the statutory changes.

CRS Report: More Funding Needed to Maintain Pell Awards

NASFAA — Tue, 16 Aug 2011 00:00:00 GMT

"Additional funding may still be required in order to maintain the current eligibility parameters of the [Pell Grant] program in FY2012," according to a new Congressional Research Service (CRS) report. Congress provided $17 billion in mandatory funding to shore up the Pell Grant program as part of the Budget Control Act of 2011 (BCA), but it may not be enough. The additional mandatory funds will make it easier to maintain the $5,550 maximum Pell, because lawmakers won't have to designate as much discretionary funding to the program to maintain the maximum award.

Debt Ceiling Law Provides $17 Billion for Pell and Ends Grad Student Loan Interest Subsidy

NASFAA — Wed, 03 Aug 2011 00:00:00 GMT

After months of intense deficit reduction negotiations, both chambers of Congress passed the Budget Control Act of 2011 just hours before the Aug. 2 debt ceiling deadline. The House passed the bill Monday with a 269-to-161 vote, and the Senate voted 74-26 today to pass the $2.4 trillion debt-ceiling bill. President Obama signed the bill shortly after the Senate vote. The package includes additional mandatory funding for the Pell Grant program for fiscal years (FY) 2012 and 2013, elimination of the in-school loan interest subsidy for graduate and professional students and elimination of Direct Loan repayment incentives. In this article, NASFAA provides a detailed summary of the bill and how it will affect federal student aid programs.

ANN-11-17: Training Workshops - Fundamentals of Title IV Administration

NASFAA — Wed, 03 Aug 2011 00:00:00 GMT

This letter announces Federal Student Aid's instructor-led, Fundamentals of Title IV Administration training workshops scheduled for October 2011 through September 2012. Each workshop is four and one-half days in length and is conducted at one of the Department of Education’s regional training facilities. This announcement provides important information about the Fundamentals of Title IV Administration training workshops.

07-18: Invitation to States for Participation in Application Programming Interface with FAFSA on the Web

NASFAA — Tue, 19 Jul 2011 00:00:00 GMT

The Department of Education, Federal Student Aid (ED/FSA) are inviting state student aid grant agencies, join the Department in providing financial aid applicants from your state the ability to leverage data provided through the online Free Application for Federal Student Aid (FAFSA) - FAFSA on the Web (FOTW) that will streamline the collection of information your state needs to determine applicants' eligibility for your state grant program(s).

07-15: Direct Loan and FFEL Interest Rates Effective July 1, 2011

NASFAA — Mon, 18 Jul 2011 00:00:00 GMT

The attachment to this announcement provides a summary of Direct Loan and FFEL borrower interest rates that will be effective beginning July 1, 2011. The top chart provides the rates for loans first disbursed on or after July 1, 2006 that have fixed rates for the life of the loan. The bottom chart provides rates for loans that were first disbursed between July 1, 1998 and June 30, 2006. These loans have variable interest rates that are reset each year.

07-15: 2012-2013 EDE Technical Reference (July 2011 Draft)

NASFAA — Mon, 18 Jul 2011 00:00:00 GMT

The Department of Education announces the posting of the draft 2012-2013 Electronic Data Exchange (EDE) Technical Reference, including the 2012-2013 Institutional Student Information Record (ISIR) Record Layout and the 2012-2013 ISIR Cross-Reference table. The EDE Technical Reference provides record layouts for schools or other organizations that need to design software systems to interface with Federal Student Aid's application processing system to process student financial aid applications.

Debt Ceiling Negotiations Could Impact Student Aid Funding

NASFAA — Wed, 13 Jul 2011 00:00:00 GMT

Negotiations between the White House and congressional leaders on a package that would raise the debt ceiling and lower the national deficit could directly impact student aid funding for fiscal year (FY) 2012. This week, President Obama will continue to meet with congressional leadership to negotiate a deficit reduction package that would include enough spending cuts to convince Republicans to raise the debt ceiling before the Aug. 2 deadline when the U.S. could begin defaulting on its debt.

Disagreements Over Gainful Employment Rules Persist Between Lawmakers

NASFAA — Mon, 11 Jul 2011 00:00:00 GMT

Members of the U.S. House of Representatives found themselves at odds, mostly along party lines, over the Department of Education's (ED) new Gainful Employment rule in a joint subcommittee hearing Friday. The Subcommittee on Higher Education and Workforce Training convened the joint hearing with the Oversight and Government Reform Subcommittee on Regulatory Affairs, Stimulus Oversight, and Government Spending to address ED's final regulations governing the definition of gainful employment, which will affect the eligibility of certain educational programs for Title IV student assistance at all types of institutions.

07-08: Gainful Employment Electronic Announcement #12: Certificates Awarded as Part of a Degree Program

NASFAA — Mon, 11 Jul 2011 00:00:00 GMT

In Gainful Employment Electronic Announcement #11, the Department of Education provided information on how an institution can determine whether an educational program is a Gainful Employment Program. This announcement provides guidance on the status of a degree program where a student may, in addition to earning the degree, also receive a certificate.

07-08: 2011-12 FAFSA Submission Guidance for Students Impacted by New SSA Guidelines

NASFAA — Mon, 11 Jul 2011 00:00:00 GMT

As described in the June 23, 2011 electronic announcement posted to the Information for Financial Aid Professionals (IFAP) website, the Social Security Administration (SSA) implemented new guidelines on June 25, 2011 for assigning Social Security Numbers (SSNs) that include assigning SSNs in previously unused numeric ranges. The Department of Education is continuing to evaluate the impact this change will have on all Federal Student Aid systems and processes.

Senate Introduces Bill to Block State Authorization, Credit Hour Rules

NASFAA — Tue, 05 Jul 2011 00:00:00 GMT

Senators Richard Burr (R-NC) and Ben Nelson (D-NE) introduced a bill that would repeal the state authorization and credit hour definition regulations that took effect July 1. The Protecting Academic Freedom in Higher Education Act is the Senate companion to House bill H.R. 2117, which passed last month by a bipartisan vote of 27-11.

07-01: Presentation - Reporting Gainful Employment Data to NSLDS Webinar

NASFAA — Tue, 05 Jul 2011 00:00:00 GMT

This presentation offers guidance to reporting Gainful Employment Data. Institutions must annually submit information on students enrolled in programs leading to gainful employment in a recognized occupation. The final Gainful Employment rule, published on June 13, 2011, defines "gainful employment" to be when a substantial number of the GE Program’s students are repaying their Title IV loans (repayment rate) and have a reasonable debt burden (debt to earnings ratio).

Department of Education Data: Federal Campus-Based Programs Data Book 2011

NASFAA — Wed, 29 Jun 2011 00:00:00 GMT

Each year in June, ED produces an overview of all three campus-based aid (CBA) programs for an award year: the Federal Supplemental Educational Opportunity Grant (FSEOG), Federal Work-Study (FWS) and Federal Perkins Loan programs. A good resource for those interested in national and state statistical comparisons, the Federal CBA Data Book 2011 provides information on fiscal and recipient data for the 2009-2010 award year as well as the institutional allocation data for the 2011-2012 award year.

06-28: Federal Stafford, Federal PLUS, Federal SLS, and Federal Consolidation Interest Rate Calculations for the Period July 1, 2011 - June 30, 2012

NASFAA — Wed, 29 Jun 2011 00:00:00 GMT

This announcement provides the variable interest rates applicable to the Federal Stafford, Federal SLS, Federal PLUS, and Federal Consolidation loan programs for the period July 1, 2011 – June 30, 2012. Interest rates for variable-rate loans under these programs are determined annually.

06-28: Direct Consolidation Loan Information - Treatment of Underpayments and Overpayments

NASFAA — Wed, 29 Jun 2011 00:00:00 GMT

This Electronic Announcement reminds all holders of loans eligible for consolidation into a Direct Consolidation Loan of the long-held policy for handling underpayments and overpayments that may occur when the Department of Education pays off the underlying loans. This guidance does not apply to payoffs of federally-owned loans serviced by the Department’s federal loan servicers. For both underpayments and overpayments, the tolerances provided below apply to the aggregate eligible balance of principal, interest, fees, and collections costs.

06-24: Gainful Employment Electronic Announcement #11 - Determining Whether an Educational Program is a Gainful Employment Program

NASFAA — Tue, 28 Jun 2011 00:00:00 GMT

In Gainful Employment Electronic Announcement #3 published on May 20, 2011, the Department of Education provided a correction to information in GEN-11-10 related to teacher preparation programs. GEN-11-10 identified both proprietary institutions and postsecondary vocational institutions together in the description of what educational programs are and are not GE Programs. However, any educational program that leads to a certificate or other non-degree credential awarded by a public or private non-profit institution, regardless of the length of the program, is a GE Program.

Education Budget Project Details Financial Aid Allocations and Outcomes for All Institutions

NASFAA — Tue, 21 Jun 2011 00:00:00 GMT

The New America Foundation's Education Policy Program has released the latest version of its Federal Education Budget Project (FEBP) website, designed to help you keep track of institutional financial aid numbers, demographics and outcomes. The FEBP also provides up-to-date information on every institution of higher education in the country, including the latest information on federal financial aid programs, trends and policy initiatives.

06-20: Availability of EDExpress for Windows 2011-2012, Release 3.0

NASFAA — Tue, 21 Jun 2011 00:00:00 GMT

The Department of Education announces the posting of EDExpress for Windows 2011-2012, Release 3.0, on the Department's FSAdownload website. Release 3.0 adds enhancements to the Federal Direct Loan module to store the new Previous Application ID field sent in PLUS Application Acknowledgment (CRSP12OP) files and require a valid SAR/ISIR transaction number on PLUS and Grad PLUS loan records. Additionally, Release 3.0 updates the 2011-2012 Federal Pell Grant Payment and Disbursement Schedules used by the Packaging and Pell Grant modules.

06-20: Availability of Direct Loan (DL) Tools for Windows, Release 11.0

NASFAA — Tue, 21 Jun 2011 00:00:00 GMT

The Department of Education announces the availability of Federal Direct Loan Tools for Windows, Release 11.0, a supplemental software product for Direct Loan participants. DL Tools is available for download on our Federal Student Aid Download website. Volume IV of the 2011-2012 Common Origination and Disbursement (COD) Technical Reference, which includes external import record layouts and other information for system administrators, is also available on the FSAdownload website.

Correction to Federal Need Analysis Methodology for the 2012-13 Award Year

NASFAA — Fri, 17 Jun 2011 00:00:00 GMT

The Department of Education makes two correction to the notice document 2010-12812 appearing on pages 30139 through 30142 in the issue of Tuesday, May 24, 2011.

House Education Committee Approves Bill to Repeal New Credit Hour and State Authorization Rules

NASFAA — Thu, 16 Jun 2011 00:00:00 GMT

The U.S. House Education & Workforce Committee approved a bill yesterday to repeal U.S. Department of Education’s regulations regarding the definition of a credit hour and state authorization for distance learning programs. The committee approved the Protecting Academic Freedom in Higher Education Act (H.R. 2117) by a bipartisan vote of 27-11. The bill would effectively block the Department’s current attempt to define a credit hour and would also prohibit them from doing so in the future. It would also prohibit the implementation of the state authorization regulation.

Northeastern University Convenes Perkins Discussion

NASFAA — Wed, 15 Jun 2011 00:00:00 GMT

The Perkins Loan Program is currently set to expire in 2014, however President Obama has proposed reforming — and thereby extending — the program in his fiscal year (FY) 2012 budget request. Department officials and campus leaders gathered in Washington, DC yesterday to discuss the Perkins Loan Program, the challenges it faces and reform efforts. The meeting was convened by Northeastern University and the U.S. Department of Education and the discussion was led by Northeastern’s president Joseph Auon and featured introductory remarks from the Department's Under Secretary Martha Kanter.

06-14: Gainful Employment Electronic Announcement #8 - Final Regulations on Gainful Employment Debt Measures

NASFAA — Wed, 15 Jun 2011 00:00:00 GMT

On June 13, 2011, the Federal Register published final regulations on Program Integrity: Gainful Employment - Debt Measures. Although these regulations go into effect July 1, 2012, the regulations published October 29, 2010 retain their effective date of July 1, 2011. The Department of Education has also identified two instances where internet links within the Federal Register document are incorrect.

06-14: Notification of Campus-Based Funding for the 2011-2012 Award Year

NASFAA — Wed, 15 Jun 2011 00:00:00 GMT

Awards for the Federal Work-Study (FWS), Federal Supplemental Educational Opportunity Grant (FSEOG), and Federal Perkins Loan (Perkins Loan) programs, authorized under Title IV of the Higher Education Act of 1965, as amended, for the 2011-2012 Award Year (July 1, 2011 through June 30, 2012) have been approved for the schools listed in the attached three reports. Each report covers specific states, and the schools are listed alphabetically within the state in which they are located.

NASFAA Signs Onto Letter to Block State Authorization and Definition of Credit Hour

NASFAA — Mon, 13 Jun 2011 00:00:00 GMT

NASFAA joined several other higher education associations in signing onto a letter supporting legislation that would halt the Department of Education's regulations on state authorization and the definition of a credit hour.

Final Rule: Program Integrity - Gainful Employment-Debt Measures

NASFAA — Mon, 13 Jun 2011 00:00:00 GMT

The Department of Education has a particularly strong interest in ensuring that institutions that are heavily reliant on Federal funding promote student academic and career opportunities. These final gainful employment regulations are designed to (1) provide institutions with better metrics and more time to assess their program outcomes and thereby a greater opportunity to improve the performance of their gainful employment programs before those programs lose eligibility for Federal student aid funds, and (2) identify accurately the worst performing gainful employment programs. At the same time, the final regulations require that these federally funded programs meet minimal standards because students and taxpayers have too much at stake to allow otherwise.

06-10: Direct Loan Processing Information - Direct Loan Program Funding Overview

NASFAA — Mon, 13 Jun 2011 00:00:00 GMT

This is second in a series of announcements that provides processing information for schools participating in the Federal Direct Loan Program. This announcement provides an overview of the Direct Loan funding process, including introductory funding definitions, initial funding, funding increases, requesting funds and contact information.

06-10: Transition to New Direct Loan Servicing Center (ACS) System and Websites Planned for Fall 2011

NASFAA — Mon, 13 Jun 2011 00:00:00 GMT

The Direct Loan Servicing Center (ACS), one of the Department of Education’s five federal loan servicers, plans to transition to a new loan servicing system in fall 2011. In addition to the new system, the Direct Loan Servicing Center (ACS) will launch new websites for schools as well as Federal Direct Loan borrowers and TEACH Grant recipients. This is the first in a series of announcements through which ED will inform the community of the transition.

Report Finds Too Much Flexibility and Lack of Comparability in Net Price Calculators

NASFAA — Fri, 10 Jun 2011 00:00:00 GMT

A new report finds that net price calculators (NPCs) have the potential to help students and parents gather and compare college expenses and financial aid information, but suffer from limitations due in part to a lack of comparability from institution to institution. The report, titled, "The Bottom Line: Ensuring That Students and Parents Understand the Net Price of College," was conducted by the Advisory Committee on Student Financial Assistance to advise the U.S. Department of Education on the implementation of NPCs in accordance with the Higher Education Opportunity Act (HEOA) of 2008, which requires each institution to provide an NPC on its website by fall 2011, using a Department of Education template as guidance.

Gainful Employment Summary Part 1 of 3: Repayment Rate

NASFAA — Thu, 09 Jun 2011 00:00:00 GMT

This article is the first of three summarizing the new gainful employment regulations. Part one introduces the final rule and details one of the three measures: repayment rate.

06-08: Federal Stafford, Federal PLUS, Federal SLS, and Federal Consolidation Interest Rate Calculations for the Period July 1, 2011 - June 30, 2012

NASFAA — Thu, 09 Jun 2011 00:00:00 GMT

This announcement includes charts showing the variable interest rates applicable to the Federal Stafford, Federal SLS, Federal PLUS, and Federal Consolidation loan programs for the period July 1, 2011 - June 30, 2012. Interest rates for variable-rate loans under these programs are determined annually.

GEN-11-12: Federal Student Aid Eligibility For Students Enrolled For A Trial Period That Leads To Enrollment

NASFAA — Wed, 08 Jun 2011 00:00:00 GMT

Some institutions are offering, or wish to offer, an opportunity for a student to attend a program for a relatively short period, which sometimes is called a "trial" or "conditional" period, without incurring program charges or receiving Federal Title IV student assistance, unless and until the student continues beyond the end of that period and enrolls as a regular student. To ensure equitable and consistent treatment of students when institutions offer such programs, this letter describes a type of trial period that provides an opportunity for a student to take classes on a trial basis before deciding to continue attending the program as a regular student.

No Changes to Origination Fee for Direct Subsidized or Unsubsidized Loans for 2011-12

NASFAA — Tue, 07 Jun 2011 00:00:00 GMT

In recent years, the origination fee for Direct Subsidized Loans and Direct Unsubsidized Loans has been incrementally reduced each July 1 as part of the changes to the student loan programs made by the Higher Education Reconciliation Act of 2005 (HERA). The up-front interest rebate has also been declining each July 1. The origination fee reduction made for loans first disbursed on or after July 1, 2010 was the last such reduction required under HERA. Therefore, the origination fee and up-front interest rebates will not change for loans first disbursed on or after July 1, 2011.

06-06: Title IV Eligibility for an Institution’s Comprehensive Transition and Postsecondary Program for Students with Intellectual Disabilities

NASFAA — Tue, 07 Jun 2011 00:00:00 GMT

Institutions that offer a Comprehensive Transition and Postsecondary (CTP) Program can apply to the Department’s Federal Student Aid office to have their CTP Program approved so that eligible students may be considered for Federal Pell Grant, Federal Work-Study, and Federal Supplemental Educational Opportunity Grant funds. This guidance includes the steps an institution must take to apply to have a CTP Program determined to be eligible to participate in the Title IV Federal aid programs.

06-06: Satisfactory Academic Progress Reviews for Students in Clock Hour

NASFAA — Tue, 07 Jun 2011 00:00:00 GMT

While the Department of Education is in the process of preparing additional Dear Colleague Letters on other topics of the October 29, 2010 regulations, we provide the following guidance related to satisfactory academic progress (SAP) reviews for students in clock hour programs. The institution’s SAP policy must establish the maximum timeframe and the pace component for students in an educational program. The required SAP evaluations ensure that the student is making appropriate academic progress to complete his or her program within the context of these time-based parameters.

06-03: Gainful Employment Webinar #1 Implementation of Disclosures and Reporting Requirements

NASFAA — Tue, 07 Jun 2011 00:00:00 GMT

The Gainful Employment Webinar #1 Implementation of Disclosures and Reporting Requirements presentation conducted on May 25 and May 26 is now available in PDF format. The webinar features guidance on gainful employment authorities, regulations, effective dates, disclosure and reporting requirements and resources.

Applications, Reports, and Other Records for the 2010-2011 Award Year

NASFAA — Tue, 07 Jun 2011 00:00:00 GMT

The Department of Education has announced deadline and submission dates for the receipt of documents and other information from institutions and applicants for the Federal student aid programs authorized under Title IV of the Higher Education Act of 1965, as amended, for the 2010-2011 award year.

Complying With the New Gainful Employment Regulations

NASFAA — Fri, 03 Jun 2011 00:00:00 GMT

The final gainful employment regulations retain the framework of the proposed regulations, but ED made significant modifications in response to many concerns expressed by the higher education community. This article provides an overview of the gainful employment measures defined in the final regulations, and the penalties institutions face if they don't meet the new standards. We will provide a more in-depth analysis of the rules next week and a webinar for members later this month.

06-01: Gainful Employment Electronic Announcement #5 - Procedures for Reporting New Educational Programs That Prepare Students for Gainful Employment in a Recognized Occupation

NASFAA — Thu, 02 Jun 2011 00:00:00 GMT

This Electronic Announcement provides operational guidance on the implementation of the new regulatory requirements related to the addition of a new gainful employment (GE) program by an institution. For new GE Programs where the first day of class will begin on or after July 1, 2011 and before Oct. 1, 2011, notification must be provided no later than July 1. For new GE Programs where the first day of class will begin on or after October 1, 2011, institutions must provide notification to the Department at least 90 days prior to the first day of class.

PJ Adjustments to EFC Data Elements Must be Submitted to CPS

NASFAA — Wed, 01 Jun 2011 00:00:00 GMT

In recent school reviews, the Department of Education (ED) has seen a few schools that are submitting their professional judgment (PJ) adjustments to the Central Processing System (CPS) without identifying them as PJ adjustments. This practice makes PJ adjustments indistinguishable from corrections. With the new targeted verification regulations effective for the 2012-13 award year, ED needs to know which changes are corrections so that it can properly identify error-prone data elements.

Lawmakers Considering Proposals to Reform Pell Grant Program

NASFAA — Wed, 01 Jun 2011 00:00:00 GMT

May 31 -- Congress is considering proposals to create a more sustainable maximum award level, roll back some of the need analysis changes enacted in previous legislation and set stricter lifetime time limits on eligibility for Pell Grant aid, according to a May 2011 Congressional Research Service (CRS) report. The report examines the current state of the Pell Grant program and the funding challenges for the fiscal year (FY) 2012 budget caused by the growing number of applicants and expanded eligibility.

Notice of Effective Date for Department of Education and Department of Veterans Affairs Computer Matching Program

NASFAA — Tue, 31 May 2011 00:00:00 GMT

Pursuant to the Privacy Act of 1974, as amended (Privacy Act) (5 U.S.C. 552a), the Office of Management and Budget (OMB) Final Guidance Interpreting the Provisions of Public Law 100-503, the Computer Matching and Privacy Protection Act of 1988, 54 FR 25818 (June 19, 1989), and OMB Circular A-130, Appendix I, notice is hereby given of the renewal of the computer matching program between the U.S. Department of Education (ED) (the recipient agency) and the U.S. Department of Veterans Affairs (VA) (the source agency). After the ED and VA Data Integrity Boards approve a new computer matching agreement (CMA), the computer matching program will begin on the effective date.

ED’s 2009-10 End-of-Year Pell Report Details Dramatic Expansion of Program

NASFAA — Fri, 27 May 2011 00:00:00 GMT

More than 8 million students received Pell Grants in 2009-10, up from 6.2 million in 2008-09, according to the U.S. Department of Education's 2009-10 Federal Pell Grant Program End-of-Year Report. The increase in Pell recipients fueled rising costs for the Pell program as total program spending increased from $18.3 billion in 2008-09 to nearly $30 billion in 2009-10. The current debate in Congress over reducing the deficit has made the growing Pell Grant program a target for spending cuts. Though Congress is just beginning the FY2012 budget process, the Republican-controlled House and the Democratic-controlled Senate will have to reach a compromise before they come to a final agreement on spending levels.

05-26: COD Computer-Based Training

NASFAA — Fri, 27 May 2011 00:00:00 GMT

Federal Student Aid is pleased to announce the availability of the Common Origination and Disbursement (COD) Computer-Based Training (CBT). The updated component simulations and CBTs will be posted over the next several months (May - September 2011). To assist a school in determining when each simulation or CBT is posted, we include the month and year after each file name.

Senate Votes Down House Budget Resolution

NASFAA — Thu, 26 May 2011 00:00:00 GMT

May 26 -The Senate rejected the House-passed budget resolution yesterday that would have reduced Pell Grant funding to fiscal year (FY) 2008 levels. As expected, the vote fell primarily along party lines, with all Democrats voting against the measure, along with five Republicans. The Budget Resolution passed in the House on April 15, and proposes deep cuts to all non-defense discretionary programs.

GAO Report: Higher Loan Limits Didn't Drive Up College Costs

NASFAA — Thu, 26 May 2011 00:00:00 GMT

The higher Stafford Loan limits enacted for the 2007-08 academic year (AY) didn't drive up the price of higher education, according to a Government Accountability Office (GAO) report published yesterday. In addition, GAO found that the higher loan limits didn't increase undergraduate enrollment. GAO also found that the percentage of borrowers taking out maximum loan amounts declined after loan limits were raised.

House Appropriations Committee Approves $18 Billion Cut to Labor, HHS and Education Programs

NASFAA — Wed, 25 May 2011 00:00:00 GMT

In the next step of the fiscal year (FY) 2012 budget process, the The House Appropriations Committee voted Tuesday to approve House-set FY 2012 spending limits for the 12 appropriations subcommittees. The spending limit for the Labor, HHS, and Education Appropriations Subcommittee - known as the 302(b) allocations - is $140 billion, nearly $42 billion less than President Obama proposed in his FY2012 budget request. It is up to the subcommittee to determine how to reduce program spending by that amount, but the size of the federal student aid programs will make them a likely target for cuts.

Higher Education Associations Urge ED to Reconsider Proposed FERPA Regulations

NASFAA — Wed, 25 May 2011 00:00:00 GMT

NASFAA joined 30 higher education associations to urge the U.S. Department of Education to reconsider its proposed changes to the Family Educational Rights and Privacy Act (FERPA) regulations.

05-23: Restored 2011-12 Perkins Loan Program Level of Expenditure Data on 2011-12 Campus-Based Final Funding Worksheets

NASFAA — Tue, 24 May 2011 00:00:00 GMT

The Final Funding Worksheets for the 2011-2012 Campus-Based Authorizations recalculated with funding levels provided in the Department of Defense and Full-Year Continuing Appropriations Act, 2011 were updated on May 20, 2011 to include 2011-12 Perkins Program Level of Expenditure data and are now available on the Self-Service page on the eCampus-Based (eCB) website. There were no changes to the 2011-12 Federal Supplemental Educational Opportunity Grant or Work Study final awards that were provided on May 17, 2011.

Notice of Revision of the Federal Need Analysis Methodology for the 2012-13 Award Year

NASFAA — Tue, 24 May 2011 00:00:00 GMT

The Secretary announces the annual updates to the tables that will be used in the statutory "Federal Need Analysis Methodology" to determine a student's expected family contribution (EFC) for award year 2012-2013 for the student financial aid programs authorized under title IV of the Higher Education Act of 1965, as amended (HEA). The Title IV programs include the Pell Grant, Perkins Loan, Work-Study, Federal Supplemental Educational Opportunity Grant, Direct Loan, and the Teach Grant Programs.

05-20: FY 2009 Draft Student Loan Cohort Default Rates

NASFAA — Mon, 23 May 2011 00:00:00 GMT

The draft FY 2009 national student loan cohort default rate is 8.9 percent. The draft rate increased from the national FY 2008 official rate of 7.0 percent and the national FY 2007 official rate of 6.7 percent. The FY 2009 draft cohort default rates represent the percentage of borrowers in the Federal Family Education Loan and Federal Direct Loan programs who began repaying their loans between October 1, 2008 and September 30, 2009, and who defaulted on or before September 30, 2010.

05-20: Gainful Employment Electronic Announcement #3 Correction of Dear Colleague Letter GEN-11-10 regarding Teacher Certification Programs

NASFAA — Mon, 23 May 2011 00:00:00 GMT

On April 20, 2011 the Department posted Dear Colleague Letter GEN-11-10 providing institutions with guidance on the new gainful employment program regulatory requirements. This Electronic Announcement corrects the information provided in the Dear Colleague Letter related to teacher certification programs at all types of institutions.

05-20: 2010-11 Federal Student Aid Handbook: Volume 6 - Managing Campus-Based Programs

NASFAA — Mon, 23 May 2011 00:00:00 GMT

Volume 6 is presented below as a master PDF file, comprising a table of contents and all chapters, followed by separate PDF files for each chapter of the Volume. Scroll down the page to see all the hyperlinked titles for each chapter (listed as attachments). Opening the PDF files requires version 4.0 or greater of the free Adobe Acrobat Reader software.

05-20: Gainful Employment - FAQ

NASFAA — Mon, 23 May 2011 00:00:00 GMT

The Department of Education has posted a list of Frequently Asked Questions to provide information and operational guidance on the requirements of the new gainful employment regulations. Institutions must review the final regulations as published in the Federal Register on October 29, 2010, to ensure that they are in compliance with all of the GE Program requirements.

All Non-Degree and Certificate Programs Are Subject to Gainful Employment Rules

NASFAA — Thu, 19 May 2011 00:00:00 GMT

Think that gainful employment rules don’t apply to public or private non-profit institutions? Think again! Gainful employment rules apply to all non-degree programs, including certificate programs, offered by public and non-profit institutions and virtually all academic programs offered by proprietary institutions.

05-16: 2011-12 ISIR Analysis Tool Web Application Now Available

NASFAA — Tue, 17 May 2011 00:00:00 GMT

The 2011-2012 version of the ISIR Analysis Tool is now available through the FAA Main Menu of the FAA Access to CPS Online website. The ISIR Analysis Tool is designed for any school that wants to review and analyze its Institutional Student Information Record (ISIR) data and better understand certain characteristics about its Title IV applicant population and verification process (either selected by the U.S. Department of Education or defined by the school).

05-10: Operational Guidance - COD System Changes to Remove Processing for Two Pell Grants in One Award Year

NASFAA — Wed, 11 May 2011 00:00:00 GMT

On May 15, 2011, the Department of Education plans to implement COD System functionality that changes how a school will use the Additional Eligibility Indicator (AEI) for the 2011-2012 Award Year and forward. Additionally, a school will no longer be able to award or disburse more than 100 percent of the student's Scheduled Federal Pell Grant (SFPG).

Register for Selective Service

NASFAA — Tue, 10 May 2011 00:00:00 GMT

If you're a male over the age of 18 and looking to apply for federal financial aid, you will be are required to register with Selective Service. Virtually all men living in the United States and U.S. citizens living abroad are required by law to register at the age of 18 with Selective Service. Failure to register for Selective Services law could harm your eligibility for federal student loans and grant programs, job training and employment.

05-06: Recalculated 2011-2012 Final Funding Authorizations for the Campus-Based Programs

NASFAA — Mon, 09 May 2011 00:00:00 GMT

The Department of Defense and Full-Year Continuing Appropriations Act, 2011 (P. L. 112-10), was enacted on April 15, 2011 and provided final FY 2011 appropriations for the Campus-Based programs. As a result of this legislation, Campus-Based Funding Authorizations originally announced in the Electronic Announcement dated April 1, 2011 were affected by the revised 2011-2012 funding levels and awards have been recalculated for all schools. Final funding worksheets and the 2011-2012 Statement of Account for each of the Campus-Based programs will be posted to the eCampus-Based (eCB) website during the week of May 9, 2011.

05-06: Effective Date of new R2T4 Regulations

NASFAA — Mon, 09 May 2011 00:00:00 GMT

On October 29, 2010, the Department published in the Federal Register final regulations on several program integrity issues. These regulations are (except for the new verification rules) effective July 1, 2011. The changes to §668.22, known as the Return of Title IV Funds regulations, apply to students who withdraw from payment periods or periods of enrollment that begin on or after July 1, 2011. This means that they do not apply to students who withdraw from a 2011 crossover payment period even if the student received Title IV, HEA program funds from the 2011-2012 award year for that crossover payment period.

04-29: Use of State Scholarships and Grants as the Non-Federal Share of FSEOG Awards for the 2011-12 AY

NASFAA — Mon, 02 May 2011 00:00:00 GMT

The Higher Education Act provides that the Federal share of awards made to students under the Federal Supplemental Educational Opportunity Grant (FSEOG) Program may not exceed 75 percent. The 25 percent non-Federal share of FSEOG awards must come from an institution's own resources, including institutional scholarships and grants, tuition or fee waivers, State scholarships and grants, and foundation or other charitable organization funds. In response to inquiries concerning the use of State scholarships for FSEOG matching purposes, the Department had determined that all State scholarship and grant amounts, except for amounts from the Leveraging Educational Assistance Partnership (LEAP) and the Grants for Access and Persistence (GAP) awards, are eligible to be used to meet the non-Federal share requirement for the FSEOG Program.

ED Releases Pell Guidance on FY 2011 Continuing Resolution

NASFAA — Thu, 28 Apr 2011 00:00:00 GMT

April 28 -- The Department of Education released guidance on the impact of the fiscal year (FY) 2011 long-term continuing resolution (CR) on the Pell Grant Program for award year 2011-12. The letter confirms that the long-term CR eliminates second scheduled Pell awards beginning with award year 2011-12, but also maintains a maximum award of $5,550 for the upcoming academic year.

How Can NASFAA Better Serve You?

NASFAA — Mon, 06 Jun 2011 00:00:00 GMT

NASFAA's leaders rely on members' input to strengthen the association. We encourage you to share any comments, concerns, issues or ideas related to the association with a NASFAA Representative-At-Large (RAL) on the NASFAA Board of Directors. The RALs deliver members' input on NASFAA's products and services and general federal aid policies and issues to the association's leadership. The process only works with your involvement, so let your voice be heard!

Prepare Now for 2012-13 Verification

NASFAA — Tue, 26 Jul 2011 00:00:00 GMT

On July 13th, the Department of Education (ED) published both a notice in the Federal Register and a Dear Colleague Letter (GEN-11-13) identifying the data elements from the Free Application for Federal Student Aid (FAFSA) that must be verified for the 2012-13 award year. The guidance also defines acceptable documentation for the items subject to verification. Revamped verification regulations become effective on July 1, 2012; schools must follow the new regulations for any verification they complete for the 2012-13 award year.

04-21: Direct Loan Processing Information – Direct Loan Overview

NASFAA — Fri, 22 Apr 2011 00:00:00 GMT

This is the first in a series of announcements providing processing information for schools participating in the William D. Ford Federal Direct Loan (Direct Loan) Program. Each announcement is intended to provide operational guidance about a particular aspect of the Direct Loan process.

06-23: LLS-2011-03: Lender/Lender Servicer NSLDS Borrower Access

NASFAA — Fri, 24 Jun 2011 00:00:00 GMT

The Department of Education has modified the NSLDS Professional Access website to permit lenders and lender servicers access to borrowers only when there is an existing relationship between the organization and the borrower on NSLDS. Lenders and lender servicers no longer have access to a borrower's information solely to determine if a relationship can be established.

06-24: Transition to New Direct Loan Servicing Center (ACS) System and websites Planned for Fall 2011 (Update #1)

NASFAA — Mon, 27 Jun 2011 00:00:00 GMT

The Direct Loan Servicing Center (ACS) will launch new websites for schools as well as Federal Direct Loan (Direct Loan) borrowers and Teacher Education Assistance for College and Higher Education (TEACH) Grant recipients. Questions and Answers (Q&As) about the transition to the new system and websites for the Direct Loan Servicing Center (ACS) are available for school customers in the News and Updates section of the current Direct Loan Servicing Online for Schools website.

06-24: Direct Loan Servicing Center (ACS) NSLDS Reporting Issue Update

NASFAA — Mon, 27 Jun 2011 00:00:00 GMT

In a May 27, 2011 Electronic Announcement on the Information for Financial Aid Professionals website, we provided an update on the completion of the initial wave of enhanced reporting of Federal Direct Loan Program loans serviced by the Direct Loan Servicing Center (ACS) under its new ED Servicer code, 583. The reporting was completed on May 29, 2011.

Budget Complexities Thicken: Does Perkins Reform Save or Cost Money?

NASFAA — Thu, 30 Jun 2011 00:00:00 GMT

Congress has required the Congressional Budget Office (CBO) to deliver two estimates on proposed changes to the federal Perkins Loan program. One estimate projects savings from Perkins reform while the other projects costs. Which will Congress choose and what do these conflicting estimates mean for the 2012-13 Pell Grant shortfall that was to be partially plugged with savings from Perkins? Read on to find out.

NASFAA Highlights Advocacy Principles Amid Talks of Financial Aid Cuts

NASFAA — Thu, 30 Jun 2011 00:00:00 GMT

Growing concern over cuts to the Pell Grant program has many in the higher education community examining ways to modify the program to mitigate cost and dissuade Congress from reducing the maximum award. In its advocacy efforts, and in evaluating any potential changes to student aid programs or funding, NASFAA adheres to a set of core principles, originally created by NASFAA members as part of the NASFAA Reauthorization Taskforce and updated during the National Conversation Initiative.

06-29: Release of the 2009-2010 Experimental Sites Initiative Data Analysis Report

NASFAA — Thu, 30 Jun 2011 00:00:00 GMT

The Department of Education announces the availability of the report, "Analysis of the Experimental Sites Initiative: 2009-10.” This report contains findings from 79 schools participating in the seven currently active experiments.

07-06: Federal Family Education Loan Program Special Allowance Rates for the Quarter Ending June 30, 2011

NASFAA — Thu, 07 Jul 2011 00:00:00 GMT

For the quarter ending June 30, 2011 the average rate used to compute special allowance will be 0.19 percent. For loans made prior to January 1, 2000, the Special Allowance rate is calculated by using the average of the bond equivalent rates of the 91-day Treasury bills as published by the Department of the Treasury. For the quarter ending June 30, 2011, the average of the rates is 0.05 percent.

07-07: Processing of Electronic Veterans Application Referrals by Nelnet Total and Permanent Disability Servicer Now Available

NASFAA — Fri, 08 Jul 2011 00:00:00 GMT

The Nelnet Total and Permanent Disability Servicer is now the one entity that processes and services all total and permanent disability discharge assignments and referrals—both general (non veterans) and veterans—for the Department of Education.

Court Rules Against Distance Ed Portion of ‘State Authorization’

NASFAA — Fri, 15 Jul 2011 00:00:00 GMT

The distance education provision of the state authorization rule was struck down by a U.S. District Court on grounds that institutions were not given proper time to comment or comply with the regulation. The ruling was part of larger lawsuit against the Department of Education (ED) by the Association of Private Sector Colleges and Universities (APSCU), challenging the validity of three areas of the program integrity rules that were released on Oct. 29, 2010: state authorization, misrepresentation, and incentive compensation.

07-14: Introducing the Federal Loan School Support Team

NASFAA — Fri, 15 Jul 2011 00:00:00 GMT

The Federal Loan School Support Team (FLSST) will enhance the administration of federally-owned loans by providing assistance to schools and soliciting feedback about processing experiences, from origination through repayment. The FLSST will augment—not replace—the Department of Education's established customer service call centers. Schools should continue to use the established customer service call centers to support their day-to-day operations.

Debt Ceiling and Student Aid Remain Uncertain

NASFAA — Thu, 21 Jul 2011 00:00:00 GMT

Despite the looming Aug. 2 debt ceiling deadline, the Obama administration and congressional leaders have not reached a compromise on spending cuts and tax reform. Several deficit reduction plans have emerged over the past week, but none of them include enough spending cuts to convince Republicans to raise the debt ceiling before the Aug. 2 deadline when the U.S. could begin defaulting on its debt. Negotiations between the White House and congressional leaders on a package that would raise the debt ceiling and lower the national deficit could include provisions to reduce student aid funding for fiscal year (FY) 2012.

GEN-11-14: Implementation of Program Integrity Regulations

NASFAA — Thu, 21 Jul 2011 00:00:00 GMT

This letter provides guidance on one area of the final regulations published on October 29, 2010, addressing program integrity issues: the Return of Title IV Funds. The enclosure to this letter provides additional guidance on one area of these final regulations: the Return of Title IV Funds - i.e., the provisions governing the treatment of Title IV, HEA grant and loan funds when a student withdraws from an institution.

07-21: 2010-11 Campus-Based Reallocation Form and Process

NASFAA — Fri, 22 Jul 2011 00:00:00 GMT

This announcement provides important information about the 2010-11 Campus-Based Reallocation Form and reallocation process. This form is used in the Federal Work-Study (FWS) and Federal Supplemental Educational Opportunity Grant (FSEOG) programs to release unexpended portions of a school’s 2010-2011 allocations or to request supplemental 2011-2012 FWS funds for community service jobs.

07-21: Federal Student Aid Handbook, Volume 1 - Student Eligibility

NASFAA — Fri, 22 Jul 2011 00:00:00 GMT

Volume 1 is presented below as a master PDF file, comprising a table of contents and all chapters, followed by separate PDF files for each chapter of the Volume. Scroll down the page to see all the hyperlinked titles for each chapter (listed as attachments). Opening the PDF files requires version 4.0 or greater of the free Adobe Acrobat Reader software.

07-21: NSLDS Enrollment Reporting Guide

NASFAA — Fri, 22 Jul 2011 00:00:00 GMT

The National Student Loan Data System (NSLDS) Enrollment Reporting Guide includes a table of contents, three chapters, and an appendix. This guide assumes reader familiarity with basic computer terminology and concepts. The NSLDS Enrollment Reporting Guide is attached in Microsoft Word Format and in Portable Document Format (PDF).

07-21: Information About Teacher Cancellation Low-Income Directory Updates

NASFAA — Fri, 22 Jul 2011 00:00:00 GMT

This announcement is to provide schools with information that we e-mail to state and territorial education agencies soliciting the submission of updated lists of low-income schools and educational service agencies for inclusion in the Directory of Designated Low-Income Schools for Teacher Cancellation Benefits. This directory is also known as the Teacher Cancellation Low-Income Directory (TCLI Directory). The website is now available to accept listings for the 2011-2012 school year as well as any changes to prior years, as appropriate.

07-22: Gainful Employment NASFAA 2011

NASFAA — Mon, 25 Jul 2011 00:00:00 GMT

This announcement contains the Department of Education's "Gainful Employment NASFAA 2011" presentation delivered at the National NASFAA Conference last week in Boston. The presentation is available in Microsoft Powerpoint (PPT) and Portable Document Format (PDF).

07-25: TEACH Grant Exit Counseling Now Available on NSLDS

NASFAA — Tue, 26 Jul 2011 00:00:00 GMT

TEACH Grant Exit Counseling is now available on the NSLDS Student Access website for students, and corresponding enhancements to the NSLDS Professional Access website are now available for schools. The addition of TEACH Grant Exit Counseling to NSLDS means that the Department of Education now offers a full range of exit counseling tools in one location.

GEN-11-15: Dependency Overrides

NASFAA — Thu, 28 Jul 2011 00:00:00 GMT

This letter reviews the conditions and documentation that support the use of dependency overrides by financial aid administrators and offers several examples of such dependency overrides. In unusual circumstances, financial aid administrators are given the authority to determine that a student is independent; this is a dependency override. Dependency override decisions must be made on a student-by-student basis, and the basis for each determination must be well documented in the student’s file.

House Republicans Cite Pell Grant Spending as Reason to Delay House Vote

NASFAA — Fri, 29 Jul 2011 00:00:00 GMT

The House postponed its vote on Speaker of the House John Boehner’s debt reduction plan Thursday. According to reports, House Republicans were unhappy that the House bill included $17 billion in supplemental spending for Pell Grants, which some compare to welfare. NASFAA strongly urges lawmakers to reject any proposals to balance the budget on the backs of low-income students.

07-28: Gainful Employment Electronic Announcement #14 - NSLDS Gainful Employment Submittal Template

NASFAA — Fri, 29 Jul 2011 00:00:00 GMT

One of the methods that schools can use to report required gainful employment data to the U.S. Department of Education is using the National Student Loan Data System (NSLDS) Professional Access website. When the online reporting option is implemented on Sept. 26, 2011, schools may use the NSLDS Gainful Employment Submittal Template to assist with the online reporting process.

Public Meeting on Recommendations for Improvement of Student Financial Aid Offer Forms, Development of Model Financial Aid Forms

NASFAA — Fri, 29 Jul 2011 00:00:00 GMT

The Department of Education (ED) will conduct a public meeting to discuss and offer recommendations for improvements to student financial aid offer forms, as required by section 484 of the Higher Education Opportunity Act (HEOA). To inform the discussion at the public meeting, ED invites written comments on how to improve the information to be included in financial aid offer forms. The meeting will be held on Sept. 13, 2011, from 9 a.m. to 4 p.m. at the U.S. Department of Education.

Tentative Debt Ceiling Agreement Reached

NASFAA — Mon, 01 Aug 2011 00:00:00 GMT

Late last evening congressional leaders agreed on a deficit reduction package that includes enough support to convince House Republicans to raise the debt ceiling, just days before its Aug. 2 deadline. The plan, which had not yet been voted upon as of early Monday morning, would take a two-step approach toward reducing the deficit by nearly $3 trillion over the next decade. With regard to student aid, the package provides additional funding to support the Pell Grant program for FY 2012 and FY 2013, and likely eliminates interest subsidies for graduate students.

Lay Down Your Burden Here

NASFAA — Mon, 01 Aug 2011 00:00:00 GMT

An Executive Order (EO) released by President Obama this past January directs federal agencies to conduct a retrospective review to identify outmoded, ineffective, insufficient, or excessively burdensome regulations. On July 6, the Department of Education released a preliminary plan to comply with the EO, to which NASFAA responded. NASFAA anticipates that the preliminary plan is an initial step in a longer project; we would like to prepare for future steps by getting your opinion about burdensome rules, guidance, and regulations.

08-01: 2011-12 Federal School Code List of Participating Schools

NASFAA — Tue, 02 Aug 2011 00:00:00 GMT

The Department of Education has made available the updated 2011-12 Federal School Code (FSC) List of Participating Schools on the Information for Financial Aid Professionals (IFAP) website. The Federal School Code List contains the unique codes assigned by the Department of Education for schools participating in the Title IV federal student aid programs.

08-03: Gainful Employment Announcement #16 – Updated Procedures for Reporting New Educational Programs

NASFAA — Thu, 04 Aug 2011 00:00:00 GMT

An update to the Procedures for institutional notification to the Department of new GE Programs using Federal Student Aid’s (FSA's) Application for Approval to Participate in the Federal Student Financial Aid Programs (E-App) is attached to this Electronic Announcement. These procedures, originally included with Gainful Employment Electronic Announcement #5, have been updated to reflect an E-App system update effective July 31, 2011. Institutions should now use these updated Procedures for Institutional Notification to the Department of New GE Programs to report new GE Programs.

08-03: Revised Master Promissory Note for Direct PLUS Loans

NASFAA — Thu, 04 Aug 2011 00:00:00 GMT

The Department of Education (ED) has made available a revised Federal Direct PLUS Loan Application and Master Promissory Note. In addition, ED is now offering the Direct PLUS Loan MPN in Spanish. Detailed implementation guidance for schools that will print the revised Direct PLUS Loan MPN is attached to this announcement.

08-14: Gainful Employment Announcement #17 - Updated NSLDS Gainful Employment User Guide

NASFAA — Fri, 05 Aug 2011 00:00:00 GMT

The Department of Education (ED) has updated the National Student Loan Data System (NSLDS) Gainful Employment User Guide, now available on the NSLDS User Documentation page on the Information for Financial Aid Professionals (IFAP) website. Institutions should use information in the updated guide to prepare their systems to submit required gainful employment information to the ED.

08-05: Federal Perkins Loan Portfolio Liquidation and Perkins Loan Assignment Procedures

NASFAA — Mon, 08 Aug 2011 00:00:00 GMT

This announcement and its attachments provide updated information about the required processes for liquidating a Federal Perkins Loan portfolio when a school ends participation in the Perkins Loan Program as well as processes for assigning Perkins Loans to the Department of Education. The assignment form, as approved by the Office of Management and Budget, and instructions for the form are also included.

08-05: Federal Perkins Loan Program Liquidation E-mail Address

NASFAA — Mon, 08 Aug 2011 00:00:00 GMT

The Department of Education has created a new e-mail address to facilitate the process for schools discontinuing participation in the Federal Perkins Loan Program and liquidating their Perkins Loan portfolios. The specific purpose of the new e-mail address is for communication between schools and the Department's Perkins Liquidation Team concerning the Perkins Loan portfolio liquidation process.

08-09: Gainful Employment Announcement #18 –Submitting An Explanation of Missing/Incomplete Gainful Employment Data

NASFAA — Wed, 10 Aug 2011 00:00:00 GMT

Final regulations published in the Federal Register on Oct. 29, 2010 require institutions that participate in the student financial assistance programs to report certain information about students who are enrolled in Title IV-eligible educational programs that lead to gainful employment in a recognized occupation (GE Programs). The purpose of this announcement is to provide institutions with more information on how to submit the explanation if there was an unusual situation (such as a natural disaster) that prevents an institution from providing all of the required information.

08-09: 2012-13 Application Processing System Specifications for Software Developers

NASFAA — Wed, 10 Aug 2011 00:00:00 GMT

Federal Student Aid announces the posting of the draft Application Processing System Specifications for Software Developers for the 2012-13 cycle. Testing of these specifications will not be complete until January 2012. Software developers should be prepared to receive updates to the specifications until that time.

08-10: Voluntary Flexible Agreement Submissions

NASFAA — Thu, 11 Aug 2011 00:00:00 GMT

The attached announcement provides information on the submission by FFEL Guaranty Agencies of proposals for Voluntary Flexible Agreements (VFAs) in response to a Federal Register notice that was published on May 31, 2011.

08-10: COD Computer-Based Training

NASFAA — Thu, 11 Aug 2011 00:00:00 GMT

Federal Student Aid announces the availability of the Common Origination and Disbursement (COD) Computer-Based Training (CBT). To prepare users for downloading and navigating the COD CBT, this announcement provides information on COD CBT components, system requirements, use and navigation.

Congressional Leaders Select Members of Deficit Reduction Committee

NASFAA — Fri, 12 Aug 2011 00:00:00 GMT

Congressional leadership has chosen the 12 members that will comprise the bipartisan Super Committee -— a group tasked with developing legislation to create at least $1.5 trillion in future deficit reduction by Thanksgiving. The Super Committee is mandated by the Budget Control Act of 2011 and could have a direct impact on future student aid funding levels.

08-11; PK-2011-01: Updates to Disability Discharge Reporting

NASFAA — Fri, 12 Aug 2011 00:00:00 GMT

This Federal Perkins Loan provider Technical Update provides clarification regarding the effective date to be reported to the National Student Loan Data System (NSLDS) in connection with loan status code “VA.” The update is in Microsoft Word Format and in Portable Document Format (PDF). The PDF file requires version 4.0 or greater of the free Adobe Acrobat reader.

08-11: GA-2011-04: Updates to Disability Discharge Reporting

NASFAA — Fri, 12 Aug 2011 00:00:00 GMT

This Guaranty Agency (GA) Technical Update provides clarification regarding the effective date to be reported to the National Student Loan Data System (NSLDS) in connection with loan status code “VA.” The update is in Microsoft Word Format and in Portable Document Format (PDF). The PDF file requires version 4.0 or greater of the free Adobe Acrobat reader.

Guaranty Agencies See New Opportunity Amid Uncertainty

NASFAA — Mon, 15 Aug 2011 00:00:00 GMT

The Obama administration’s revamped Voluntary Flexible Agreement (VFA) program provides guaranty agencies an opportunity to reinvent themselves.

08-15: Gainful Employment - FAQ

NASFAA — Mon, 15 Aug 2011 00:00:00 GMT

These Frequently Asked Questions provide information and operational guidance on the requirements of the new gainful employment regulations. Institutions must review the final regulations as published in the Federal Register on October 29, 2010, to ensure that they are in compliance with all of the GE Program requirements. The listing of Frequently Asked Questions will be updated periodically and include the date of the update. If you have questions that have not been addressed, please submit them to the GE Questions mailbox at GE-Questions@ed.gov.

College Degree Seen as Key to Landing a Good Job and Financial Security

NASFAA — Fri, 19 Aug 2011 00:00:00 GMT

Americans now overwhelmingly believe that college degrees are essential to addressing the employment and financial uncertainty facing our country, according to a new Gallup study done in conjunction with Lumina Foundation. The survey of 1,001 Americans finds that 95% think a postsecondary degree is very or somewhat important for financial security and 47% agree that people who have a college degree have a good chance of finding a quality job (10% disagree).

08-18: Increased Number of Connection Failures for SAIG Transfers

NASFAA — Fri, 19 Aug 2011 00:00:00 GMT

The Department completed an upgrade to the security encryption of the Student Aid Internet Gateway (SAIG) software on July 13 that resulted in an increased number of connection failures for SAIG users attempting to complete data transfers. Roughly one connection in a thousand gives SAIG users an error identified by a 234 error code in the activity or FTP log. The TDClient software will automatically retry the transfer until the connection is successful. EDconnect users should attempt to retry the transfer if this error is received. This issue will be eliminated when new versions of EDconnect and TDClient become available, but the Department doesn't have a release date for the new software. It will inform the community as soon as it can confirm the release schedule.

08-25: Second Pell Grant Administrative Cost Allowance Payments for 2010-11 Award Year

NASFAA — Fri, 26 Aug 2011 00:00:00 GMT

The second ACA payment for the 2010-11 Award Year is based on records that the COD System has processed from the date the Department of Education (ED) processed the first ACA payments for the 2010-11 Award Year (February 14, 2011) up to the date that ED process the second ACA payments for the 2010-2011 Award Year. ED began processing the second ACA payments for all schools on Aug. 22, 2011. Schools will begin to see these payments deposited directly into their bank accounts over the next few weeks.

08-25: Third and Final Pell Grant Administrative Cost Allowance Payments for 2009-2010 Award Year

NASFAA — Fri, 26 Aug 2011 00:00:00 GMT

The third and final ACA payment for the 2009-2010 Award Year is based on records that the COD System has processed from the date the Department of Education (ED) processed the second ACA payments for the 2009-2010 Award Year (August 23, 2010) up to the date that ED process the third and final ACA payments for the 2009-10 Award Year. ED began processing the third and final ACA payments for all schools on August 22, 2011. Schools will begin to see these payments deposited directly into their bank accounts over the next few weeks.

08-25: Loan Servicing Information - Second Year's Customer Service Performance Results and Third Year's Allocations

NASFAA — Fri, 26 Aug 2011 00:00:00 GMT

As explained in previous communications, Federal Student Aid awarded four new contracts in June 2009 to provide additional servicing capacity for loans owned by the Department of Education. These loans include Direct Loan Program loans and Federal Family Education Loan (FFEL) Program loans purchased by the Department under the authority granted the Secretary in the Ensuring Continued Access to Student Loans Act (ECASLA) and through methods commonly referred to as a “PUT.”

08-25: Upcoming SAIG Message Class File Update

NASFAA — Fri, 26 Aug 2011 00:00:00 GMT

On September 2, 2011, the Department of Education (ED) will send the message class "MESSAGTB" via the Student Aid Internet Gateway (SAIG) to all user mailboxes. The EDconnect transmission software will automatically request, download, and import this new message class table with a user's next connection to the SAIG network. Once the MESSAGTB file has been imported, the new message class table will be used from that point forward.

08-25: Emergency Preparation

NASFAA — Fri, 26 Aug 2011 00:00:00 GMT

In light of the recent earthquake in Virginia and storms in the Atlantic, a disaster may impact the ability of your institution or your students to fulfill obligations related to the Federal student assistance programs. The Department of Education (ED) encourages all institutions that have not done so already to provide ED with alternate contact information for critical personnel.

08-26: Loan Servicing Information - Transition to New Direct Loan Servicing Center (ACS) System and Websites Planned for Fall 2011 (Update #3)

NASFAA — Tue, 30 Aug 2011 00:00:00 GMT

The Direct Loan Servicing Center (ACS) will begin the first of three communication campaigns on August 29, 2011. Through this campaign, each borrower who has one or more web payments scheduled for debit after September 30, 2011 will receive an e-mail or a virtual phone message from the Direct Loan Servicing Center (ACS). The individual will be provided with the two options for handling the affected web payments. As always, borrowers may contact the Direct Loan Servicing Center (ACS) to ask questions and/or validate the legitimacy of the communication.

GEN-11-16: The Budget Control Act of 2011 - Direct Loan Provisions

NASFAA — Thu, 01 Sep 2011 00:00:00 GMT

This letter provides a summary of changes made to the Direct Loan Program by the recently enacted Budget Control Act of 2011. Effective for loans made for periods of enrollment (loan periods) beginning on or after July 1, 2012, graduate and professional students are no longer eligible to receive Federal Direct Subsidized Loans. The terms and conditions of Direct Subsidized Loans received by any student for loan periods beginning before July 1, 2012, for either graduate or undergraduate study, are not affected by this change.

08-31: Gainful Employment Electronic Announcement #19 - Preparatory Courses of Study Not Considered Gainful Employment Programs

NASFAA — Thu, 01 Sep 2011 00:00:00 GMT

This announcement provides further information on courses of study that are designed to provide students with coursework necessary for enrollment in a gainful employment program. Generally, to receive Federal student assistance from programs, a student must be enrolled in an educational program that leads to a degree, certificate, or other credential awarded by the institution. However, there is one exception to this statutory requirement, where an otherwise eligible student at a public, private nonprofit, or proprietary institution of higher education may receive Direct Loan Program funding for one period of 12 consecutive months during which the student is enrolled in a course of study.

08-31: COD Computer-Based Training - 2011 Updates Group 4

NASFAA — Thu, 01 Sep 2011 00:00:00 GMT

Federal Student Aid (FSA) has made the available the fourth group of updated modules of the Common Origination and Disbursement (COD) Computer‑Based Training (CBT). FSA will post the remaining CBT modules over the next several months.

NASFAA President Makes Recommendations to ED on Award Letters

NASFAA — Tue, 13 Sep 2011 00:00:00 GMT

NASFAA President Justin Draeger recommended to the Department of Education (ED) key elements and model formats to improve award letters for students and their families.

09-12: FY 2009 Official Cohort Default Rates Distributed Sept. 12, 2011

NASFAA — Tue, 13 Sep 2011 00:00:00 GMT

On Monday, Sept. 12, 2011, the Department of Education (ED) distributed the FY 2009 Official Cohort Default Rate (CDR) notification packages to all eligible domestic and foreign schools. In this announcement, ED provides information about distribution of the official rates and the begin dates for appealing the official rates.

09-12: Cohort Default Rate Guide for Lenders and Guaranty Agencies for FY 2009

NASFAA — Tue, 13 Sep 2011 00:00:00 GMT

This guide contains information about the publication of the Fiscal Year (FY) 2009 cohort default rates for originating lenders, current holders, and guaranty agencies participating in the Federal Family Education Loan (FFEL) Program, as mandated by the Higher Education Act of 1965, as amended. The term cohort default rate, for any fiscal year where 30 or more student borrowers enter repayment, is the percentage of those borrowers who enter repayment on certain FFEL Program loans during a particular fiscal year and default within the same fiscal year or within the next fiscal year.

09-12: Briefing on National Default Rates

NASFAA — Tue, 13 Sep 2011 00:00:00 GMT

This announcement provides a "Briefing on National Default Rates." Some schools have a small number of borrowers entering repayment. At other schools, only a small portion of the student body takes out student loans. In such cases, the cohort default rate should be interpreted with caution.

Continuing Resolution Would Give Congress More Time to Debate 2012 Budget

NASFAA — Fri, 16 Sep 2011 00:00:00 GMT

With only weeks until the end of fiscal year (FY) 2011 on Sept. 30 and Congress far from completing the FY 2012 budget, lawmakers are again looking to pass a Continuing Resolution to give them more time to finalize the FY 2012 budget. In compliance the Budget Control Act of 2011 passed this summer to raise the debt ceiling, House Appropriations Committee Chairman Hal Rogers (R-KY) introduced a FY 2012 Continuing Resolution (CR) that includes a 1.409 percent cut to projected FY 2012 spending to meet an overall $1.043 trillion cap. Though it is unclear how the House CR would affect the Department of Education’s budget, the Pell Grant Program and other financial aid programs will most likely not be affected by this short-term spending bill.

P-11-02: Impact of the DoD and Full-Year Continuing Appropriations Act 2011 on the Pell Grant Program

NASFAA — Thu, 28 Apr 2011 00:00:00 GMT

This letter provides institutions with information about the 2011-2012 Pell Grant Program Payment and Disbursement Schedules, changes made to the eligibility of students for second Scheduled Awards and changes to the requirements for awarding a Federal Pell Grant for a 2011 crossover payment period. In addition, this letter reminds institutions that 2010-2011 is the last award year for the Academic Competitiveness Grant (ACG) and National SMART Grant (SMART Grant) programs.

09-16: Direct Loan Processing Information - Master Promissory Notes

NASFAA — Mon, 19 Sep 2011 00:00:00 GMT

This is the third in a series of announcements providing processing information for schools participating in the Federal Direct Loan Program. Each announcement is intended to provide operational guidance about a particular aspect of the Direct Loan process.

09-16: Prior-Year LRDRs Not Included in FY 2009 Official Cohort Default Rate Package Sent to Some Schools

NASFAA — Mon, 19 Sep 2011 00:00:00 GMT

In a September 12, 2011 Electronic Announcement posted on the Information for Financial Aid Professional (IFAP) website, the Department of Education (ED) communicated that it distributed the fiscal year (FY) 2009 Official Cohort Default Rate (eCDR) notification packages to all eligible domestic and foreign schools via the Student Aid Internet Gateway (SAIG). The eCDR package consisted of a rate notification letter and the Loan Record Detail Report (LRDR) for Cohort Year 2009 in both report and extract format. ED has discovered an issue with the LRDRs for some schools.

09-16: Appointment of Federal Student Aid's Chief Operating Officer

NASFAA — Mon, 19 Sep 2011 00:00:00 GMT

On September 15, 2011, U.S. Secretary of Education Arne Duncan announced the appointment of James W. Runcie as Chief Operating Officer (COO) of the Department’s Federal Student Aid office (FSA). Runcie joined Federal Student Aid in 2009 as an advisor and was named Deputy Chief Operating Officer in 2010. He has served as the Acting Chief Operating Officer since June.

Senate Spending Bill Trims Undergrad Loan Subsidy to Fund Pell

NASFAA — Thu, 22 Sep 2011 00:00:00 GMT

The Senate Appropriations Committee's fiscal year (FY) 2012 Labor-H spending bill protects the maximum $5,550 Pell Grant for award year 2012-13 by eliminating the in-school interest subsidy on undergraduate federal student loans for the six-month grace period and redirects those savings into the Pell program. All other student aid programs, including the Supplemental Educational Opportunity Grant (SEOG), are funded at the same level as last year. Meanwhile, the House of Representatives rejected a temporary, stop-gap spending bill that would have maintained funding for federal programs from the end of FY 2011 on Sept. 30 through Nov. 18. With just a week until the end of the fiscal year and Congress far from completing the FY 2012 budget, lawmakers need to pass a continuing resolution (CR) to fund programs while they debate 2012 spending levels.

09-21: Federal Perkins Loan Default Reduction Assistance Program (DRAP)

NASFAA — Thu, 22 Sep 2011 00:00:00 GMT

The Default Reduction Assistance Program (DRAP) assists schools in bringing defaulted Federal Perkins Loan (Perkins Loan) borrowers back into repayment before their accounts are sent to collection agencies. A letter is sent from the Department of Education (ED) on official letterhead to defaulted Perkins Loan borrowers. It explains the serious consequences of default including the inability to obtain other federally supported financial assistance, withholding of federal and state income tax refunds, salary garnishment, and damage to credit history.

09-22: Gainful Employment Electronic Announcement #22 - Updated NSLDS Gainful Employment User Guide (September 22, 2011) and NSLDS Newsletter #34 Now Available

NASFAA — Fri, 23 Sep 2011 00:00:00 GMT

The Department of Education (ED) has made available an updated National Student Loan Data System (NSLDS) Gainful Employment User Guide, now available on the NSLDS User Documentation page of the Information for Financial Aid Professionals (IFAP) website. Institutions should use information in the updated guide to prepare their systems to submit required gainful employment information to ED.

09-22: Forthcoming COD System Update to Accept Single Disbursement Loans Based on Cohort Default Rate

NASFAA — Fri, 23 Sep 2011 00:00:00 GMT

During the period Oct. 21-22, 2011, the Department of Education (ED) will update the Common Origination and Disbursement (COD) System to begin accepting single disbursement loans from schools whose cohort default rate for each of the three most recent fiscal years for which data are available is less than 15 percent.

NACAC Recommends Changes To US News and World Report’s College Rankings

NASFAA — Mon, 26 Sep 2011 00:00:00 GMT

New survey shows college rankings produced by U.S. News and World Report leave students and families confused about college quality.

09-23: Letter from Federal Student Aid (FSA) Chief Operating Officer James W. Runcie to College Presidents Regarding Gainful Employment Reporting Requirements

NASFAA — Mon, 26 Sep 2011 00:00:00 GMT

This announcement contains a letter from FSA Chief Operating Officer James W. Runcie. The letter was emailed to presidents of institutions of higher education that are currently participating in the federal student aid programs. This letter discusses the gainful employment regulatory reporting requirements and the resources that are available to institutions to assist them with these requirements.

09-23: Loan Servicing Information - Transition to New Direct Loan Servicing Center (ACS) System and Web Sites Planned for October 10, 2011 (Update #5)

NASFAA — Mon, 26 Sep 2011 00:00:00 GMT

Since June 2011, the Department of Education (ED) has communicated that the Direct Loan Servicing Center (ACS), one of ED's six federal loan servicers, plans to transition to a new loan servicing system. In addition to the new system, the ACS will launch new websites for schools as well as Federal Direct Loan borrowers and Teacher Education Assistance for College and Higher Education (TEACH) Grant recipients. The implementation of the new system and websites is scheduled for Oct. 10, 2011.

09-23: Loan Servicing Information - New Servicers Join Federal Loan Servicer Team October 2011 - January 2013

NASFAA — Mon, 26 Sep 2011 00:00:00 GMT

Federal Student Aid (FSA) is moving into the next step in ensuring an efficient and effective multi-servicer, borrower-centric approach to servicing. FSA will further expand its federal loan servicer team through contracts awarded under the HCERA/SAFRA Not-For-Profit (NFP) Servicer Program solicitation. This solicitation offered NFP entities the opportunity to submit proposals individually or in teams for servicing borrower accounts on FSA's behalf. Whether individual or team award, FSA customers will know and face one servicer. The Department of Education will annually measure each servicer’s performance in the areas of borrower satisfaction and default management and use the results to assign additional volume when applicable.

Notice of Proposed Rulemaking: Adding New Educational Programs

NASFAA — Wed, 28 Sep 2011 00:00:00 GMT

In this notice of proposed rulemaking, the Department of Education (ED) proposes to eliminate the notification process for new gainful employment programs by amending the Gainful Employment—New Programs final regulations to establish a smaller group of gainful employment programs for which an institution must obtain approval from the Department. ED believes that with these changes, these proposed regulations will significantly reduce burden on institutions and the Department while still ensuring the effectiveness of the debt measures established in the Gainful Employment—Debt Measures final regulations.

No Interest Subsidy for Graduate Students Means No Verification…Sometimes

NASFAA — Thu, 29 Sep 2011 00:00:00 GMT

To cut federal spending, Congress eliminated subsidized loan eligibility for graduate and professional students effective with enrollment periods beginning on or after July 1, 2012. The elimination of Direct Subsidized Loan eligibility for graduate and professional students will mean a sharp increase in the number of students who are eligible for only unsubsidized student financial assistance and therefore, are not subject to ED’s verification requirements. Note, however, that graduate and professional students may still be selected for verification by the Central Processing System (CPS).

09-28: Gainful Employment Electronic Announcement #24 - NPRM: Application and Approval Process for New Programs

NASFAA — Thu, 29 Sep 2011 00:00:00 GMT

On Sept. 27, 2011, the Department of Education (ED) published in the Federal Register a Notice of Proposed Rulemaking (NRPM) that proposes changes to the regulations to streamline the application and approval process for new educational programs that qualify for student financial assistance under title IV of the HEA. The deadline for submitting comments to this NPRM is Nov. 14, 2011. Please carefully review the information in the NPRM for the procedures to be used for the submission and review of comments.

09-28: Gainful Employment Electronic Announcement #25 - Disclosures by Educational Program

NASFAA — Thu, 29 Sep 2011 00:00:00 GMT

This electronic announcement provides information on how institutions disclose information for gainful employment programs when the institution offers more than one educational program with the same CIP Code and Credential Level. The first thing an institution should do is to review the CIP Code it had assigned to its educational programs to ensure that it has assigned the most appropriate and descriptive CIP Codes.

ED Confirms Schools Must Notify ED by Oct. 1 if They Have No Gainful Employment Programs

NASFAA — Fri, 30 Sep 2011 00:00:00 GMT

Schools that do not have any academic programs subject to gainful employment regulations must report that fact to the Department of Education (ED) by October 1, 2011. NASFAA staff have confirmed this guidance with ED. Some schools mistakenly believe that gainful employment regulations do not apply to any of their programs. ED estimates that 5,000 out of the 6,000 Title IV-participating schools have at least one program subject to gainful employment rules (GE program).

How Do I Make This Work? Satisfactory Academic Progress Guidance

NASFAA — Tue, 04 Oct 2011 00:00:00 GMT

Schools may be clear on the changes to the satisfactory academic progress (SAP) regulations, however what may be less apparent is how to make them work for their student populations. Institutions may find themselves scratching their heads when dealing with students who left their institution years ago for SAP issues and are now returning. The questions: Under what status should these students return? If the school reviews SAP each payment period and the student was not making SAP when last enrolled, can the student be placed on financial aid warning for one payment period? Based upon guidance received from the Department of Education (ED), assuming students return under the same status they left, if an institution reviews SAP after each payment period, these students could return under financial aid warning for their first payment period.

10-03: Loan Servicing Information - MOHELA Joins Federal Loan Servicer Team

NASFAA — Tue, 04 Oct 2011 00:00:00 GMT

The Department of Education (ED) is expanding its federal loan servicer team. In this announcent, ED notifies the community that MOHELA is now a member of its federal loan servicer team. ED will transfer existing Federal Direct Loan Program borrower accounts to MOHELA beginning late Oct. 2011. The transferred accounts are currently assigned to the Direct Loan Servicing Center (ACS) and belong to borrowers who have no loans in an in-school or grace period. ED will include all of a borrower’s loans in the transfer to MOHELA.

Proposed Rules Would Alter Title IV Approval Process for New Academic Programs

NASFAA — Fri, 07 Oct 2011 00:00:00 GMT

The Department of Education (ED) has proposed changes to the rules under which institutions may add programs of study that are subject to gainful employment provisions. These rules affect all public and private nonprofit schools that offer non-degree (e.g., certificate or diploma) programs, whether at the undergraduate or graduate level, and all proprietary (for-profit) schools. All non-degree programs at public and non-profit schools and virtually all programs at proprietary schools are eligible for Title IV participation subject to a requirement that they prepare students for gainful employment in a recognized occupation.

Statutory Definition of ‘Net Price’ Underestimates True Cost of College

NASFAA — Wed, 12 Oct 2011 00:00:00 GMT

Mark Kantrowitz, publisher of Fastweb.com and FinAid.org, says "net price" is flawed and offers several recommendations to increase accuracy of college cost.

Percentage of Students Borrowing from Private Lenders Increases Three-Fold in 4 Years

NASFAA — Wed, 12 Oct 2011 00:00:00 GMT

The percentage of undergraduates taking out private loans nearly tripled from 5 percent in 2003–04 to 14 percent in 2007–08, according to a report by the National Center for Education Statistics. The statistical report, The Expansion of Private Loans in Postsecondary Education, examines trends in private student loans and in combination of both federal and private loans, as well as the characteristics of private student loan borrowers. The report found that of all institutions, students at for-profit institutions comprise the largest share of borrowers of private loans. Students from middle-income families also comprise a larger share of borrowers of private loans, compared to students from low- and high-income families.

10-11: Loan Servicing Information - New Direct Loan Servicing Center (ACS) System and Web Sites Implemented Oct. 11, 2011 (Update #7)

NASFAA — Wed, 12 Oct 2011 00:00:00 GMT

On October 11, 2011, the Direct Loan Servicing Center (ACS), one of the Department of Education’s federal loan servicers, implemented a new loan servicing system. In addition to the new system, the Direct Loan Servicing Center (ACS) launched new websites for schools as well as Federal Direct Loan borrowers and Teacher Education Assistance for College and Higher Education (TEACH) Grant recipients. The new system and websites are now operational.

10-12: 2011 NASFAA Presentations

NASFAA — Thu, 13 Oct 2011 00:00:00 GMT

The Department of Education has posted its presentations from NASFAA's 2011 National Conference in Microsoft Powerpoint (PPT) on the Information for Financial Aid Professionals (IFAP) website. Subjects include verification, gainful employment regulations and direct loan reporting, and much more.

10-12: 2012-13 EDE Technical Reference (Final)

NASFAA — Thu, 13 Oct 2011 00:00:00 GMT

The Department of Education has posted the complete version of the 2012-13 Electronic Data Exchange (EDE) Technical Reference. The EDE Technical Reference provides programmer specifications, record layouts, and other detailed information for schools or other organizations that need to design software systems to interface with Federal Student Aid's application processing system.

10-13: Gainful Employment Electronic Announcement #26 - Updated NSLDS Gainful Employment Submittal Template

NASFAA — Fri, 14 Oct 2011 00:00:00 GMT

The Department of Education has posted an updated National Student Loan Data System (NSLDS) Gainful Employment Submittal Template on the Federal Student Aid Download (FSAdownload) website, under the Software and Associated Documents link. Designed to be used with the Microsoft Office Excel spreadsheet application, the template provides schools with the option to upload and submit to NSLDS up to 50 records/rows of gainful employment data at a time.

10-13: Volume 3 - Calculating Awards & Packaging [2011-2012 Federal Student Aid Handbook]

NASFAA — Fri, 14 Oct 2011 00:00:00 GMT

Volume 3 of the 2011-12 Federal Student Aid Handbook, "Calculating Awards & Packaging," is now available. The Federal Student Aid Handbook consists of the Application and Verification Guide and six numbered volumes. Each volume is posted on the Information for Financial Aid Professionals (IFAP) website after being reviewed and approved by the appropriate offices in Federal Student Aid and the Office of Postsecondary Education.

10-13: Volume 5 - Overawards, Overpayments, and Withdrawal Calculations [2011-2012 Federal Student Aid Handbook]

NASFAA — Fri, 14 Oct 2011 00:00:00 GMT

Volume 5 of the 2011-2012 Federal Student Aid Handbook, "Overawards, Overpayments, and Withdrawal Calculations," is now available. The Federal Student Aid Handbook consists of the Application and Verification Guide and six numbered volumes. Each volume is posted on the Information for Financial Aid Professionals (IFAP) website.

NCES Report Documents Decline in Need-Based Aid, Increase in Merit Aid

NASFAA — Wed, 19 Oct 2011 00:00:00 GMT

The number of undergraduates receiving institutional merit aid exceeded the number receiving institutional need-based aid at public four-year institutions in 2007-08, according to a new report by the National Center for Education Statistics (NCES). In 1995–96, more students received need-based institutional grants from private nonprofit (43% need-based vs. 24% merit) and public four-year institutions (13% need-based vs. 8% merit), according to the report. By 2007-08, there was an increase in the prevalence of merit based aid. More students received merit-based institutional grants at four-year public institutions (18% merit vs. 16% need-based). At private nonprofit four-year institutions 42 percent received institutional merit aid and 44 percent received institutional need-based aid.

What’s in a Name?

NASFAA — Thu, 20 Oct 2011 00:00:00 GMT

By October 29, 2011, all postsecondary institutions receiving Title IV funding that enroll full-time, first-time degree- or certificate-seeking undergraduate students must have a Net Price Calculator (NPC) on their institution’s website. As the deadline fast approaches, you may be wondering if you have to label your school's calculator as a "net price calculator" on your website. You are not alone; several members have recently asked NASFAA this question. NASFAA recently received guidance from the National Center for Education Statistics, which is part of the Department of Education, on this subject.

10-18: Gainful Employment Webinar #3- Adding a New Gainful Employment Program

NASFAA — Thu, 20 Oct 2011 00:00:00 GMT

The Department of Education has posted the Gainful Employment Webinar #3, "Adding a New Gainful Employment Program," conducted on Sept. 26, 2011. An educational program is Title IV eligible only if the program is offered by a public or non-profit institution and leads to a degree; or is offered at any institution and "leads to gainful employment in a recognized occupation."

10-19: NSLDS Postscreening Data on 2011-12 ISIRs Incorrectly Indicated Default for Some FFEL Loans

NASFAA — Thu, 20 Oct 2011 00:00:00 GMT

The Department of Education notifies the community that a reporting error that triggered a National Student Loan Data System (NSLDS) postscreening for approximately 8,000 2011-12 Institutional Student Information Records (ISIRs). On Oct. 3, 2011 the Educational Credit Management Corporation (Guaranty Agency 706, ECMC-CA) incorrectly reported a loan status of DW (Default Write-off) for approximately 150,000 Federal Family Education Loan (FFEL) Program loans. The status of these loans had been previously reported in a status of DP (Default Paid) on NSLDS.

10-19: Gainful Employment Reporting Webinar #4 - Additional Information on the NSLDS Gainful Employment Reporting Process

NASFAA — Fri, 21 Oct 2011 00:00:00 GMT

The Department of Education (ED) has posted a PDF version of Gainful Employment Webinar #4, "Additional Information on the NSLDS Gainful Employment Reporting Process" from Oct. 13 and 14, 2011. ED has established a process to submit, view, and update GE data using the National Student Loan Data System (NSLDS). The NSLDS Gainful Employment User Guide provides instruction for GE reporting enrollment and file layout and submission instructions.

Obama Looks to Bypass Congress to Provide Student Loan Relief

NASFAA — Wed, 26 Oct 2011 00:00:00 GMT

Obama administration officials announced three initiatives aimed at lowering monthly student loan payments for certain borrowers and to better inform students before they borrow. This is an initial summary of the three initiatives.

NASFAA Members Testify on Successes and Challenges of Direct Loan Program

NASFAA — Wed, 26 Oct 2011 00:00:00 GMT

NASFAA members testified about the successful transition to Direct Loans yesterday before the House Subcommittee on Higher Education and Workforce Training.

GEN-11-18: Written Arrangements Between U.S. and Foreign Institutions

NASFAA — Wed, 26 Oct 2011 00:00:00 GMT

This letter provides guidance on the Title IV, Higher Education Act of 1965 (HEA) program eligibility of educational programs offered through written arrangements between U.S. and foreign institutions. These final regulations made a number of changes to the regulations, including provisions addressing written arrangements between two or more institutions, or organizations acting on behalf of a foreign institution, to have each of those parties provide part of an educational program.

Help Your Colleagues Get the Recognition They Deserve

NASFAA — Thu, 27 Oct 2011 00:00:00 GMT

Every year, NASFAA recognizes outstanding individuals, committees, and state and regional associations for their achievements and contributions to the profession. Award winners will be announced at the 2012 National Conference being held July 22-25 in Chicago. Nominations are due Feb. 28, 2012, but there is no need to wait. Submit your nominations online today.

Consumer Financial Protection Bureau and ED to Develop Model Financial Aid Disclosure Form

NASFAA — Thu, 27 Oct 2011 00:00:00 GMT

The Consumer Financial Protection Bureau (CFPB) announced on Oct. 26 that it is partnering with the U.S. Department of Education to launch a “Know Before You Owe” project to create a model financial aid disclosure form for students and parents.

Growing Financial Aid Keeps Net Tuition Price Down

NASFAA — Thu, 27 Oct 2011 00:00:00 GMT

Despite enrollment and tuition increases, the net cost of tuition and fees has only increased slightly as federal financial aid continues to grow to meet the demand, according to a College Board report released yesterday. “Between 2005-06 and 2010-11, federal grant aid to undergraduate and graduate students combined increased by 141 percent after adjusting for inflation, and savings to taxpayers through federal tax credits and deductions for education increased by 108 percent,” according to the latest Trends in Higher Education report.

10-26: Special Direct Consolidation Loan Information - Short-Term Consolidation Opportunity Offered from January - June 30, 2012

NASFAA — Thu, 27 Oct 2011 00:00:00 GMT

On Oct. 25, 2011, the Obama Administration announced several steps it is taking to increase college affordability by making it easier to manage student loan debt. Key initiatives include a “Pay As You Earn” repayment plan and a short-term consolidation opportunity that will be offered through the Department of Education (the Department) from January – June 30, 2012. This Electronic Announcement is the first in a series of communications through which we will inform the financial aid community about the availability of Special Direct Consolidation Loans.

10-26: Model Financial Aid Offer Forms - OPE Works with Consumer Financial Protection Bureau

NASFAA — Thu, 27 Oct 2011 00:00:00 GMT

On Oct. 26, 2011, the Consumer Financial Protection Bureau (the Bureau) will begin taking feedback on a Financial Aid Shopping Sheet—an effort to improve the financial aid offer form—and is especially looking for input from current and prospective college students and their families. The development of the Financial Aid Shopping Sheet—a model financial aid offer form—builds on the discussion at the Department of Education’s Sept. 13, 2011 public meeting.

10-26: COD Computer-Based Training

NASFAA — Thu, 27 Oct 2011 00:00:00 GMT

The Department of Education has made available Common Origination and Disbursement (COD) Computer-Based Training (CBT). The COD CBT consists of component simulations and CBTs. These simulations explain the COD website screens and functionality available to a school administrator. There are 14 lessons with text to guide a user through each area of the COD website. By entering fictitious data, the user can explore basic navigation and functions of the COD website and practice locating and creating information in a safe environment that includes tips for assistance.

Notice: Postsecondary Educational Institutions Invited To Participate in Experiments Under the Experimental Sites Initiative

NASFAA — Thu, 27 Oct 2011 00:00:00 GMT

This Federal Student Financial Assistance Programs notice invites postsecondary educational institutions to participate in experiments under the Experimental Sites Initiative. Each experiment will be designed to test whether proposed changes to current requirements improve the administration of the Title IV programs. Applications to participate in any experiment must be received by the Department of Education no later than Dec. 12, 2011 in order for an institution to receive priority to be considered for participation in an experiment.

Impact of Budget Control Act Across-the-Board Reductions

NASFAA — Fri, 28 Oct 2011 00:00:00 GMT

The National Education Association (NEA) estimates how federal education funding would be impacted by the 7.8 percent cut mandated by the Budget Control Act if Congress is unable to enact $1.2 trillion in budget savings by Jan. 15, 2012. The Pell Grant program is exempt from these cuts, but other programs face multi-million dollar cuts that would impact millions of students.

ANN-11-27: Live Internet Webinar - Direct Loan Primers

NASFAA — Fri, 28 Oct 2011 00:00:00 GMT

This letter announces Federal Student Aid's instructor-led, online training session that provides a primer on the Direct Loan Program and its systems. This webinar updates two sessions from the previously-offered Direct Loan Webinar Training Suite. Concepts, terminology, and other information needed to understand how the program works and how to manage and administer Direct Loans will be covered. Topics include processing responsibilities, origination, promissory notes, disbursement, funding, reconciliation and closeout, and servicing.

Notice: Negotiated Rulemaking Committee, Negotiator Nominations and Schedule of Committee Meetings-Student Loan Programs

NASFAA — Fri, 28 Oct 2011 00:00:00 GMT

The Department of Education (ED) announces its intention to establish a negotiated rulemaking committee to prepare proposed regulations governing the student loan programs authorized under title IV of the Higher Education Act. The committee will include representatives of organizations or groups with interests that are significantly affected by the topics proposed for negotiation. ED requests nominations for individual negotiators who represent key stakeholder constituencies for the issues to be negotiated to serve on the committee and we set a schedule for committee meetings.

New Tools Help Students Evaluate College Costs and Quality

NASFAA — Mon, 31 Oct 2011 00:00:00 GMT

Oct. 31, 2011 - NASFAA has published a new resource to help students and families evaluate colleges and universities and estimate the out-of-pocket costs, or "net price," of higher education. NASFAA's issue brief highlights some of the consumer information colleges provide and analyzes what this information says about a school and some of the limitations of the data.

10-28: Gainful Employment Webinar #4 - Additional Information on the NSLDS Gainful Employment Reporting Process on Oct. 14

NASFAA — Mon, 31 Oct 2011 00:00:00 GMT

The Department of Education has released the Oct. 14 Gainful Employment Webinar #4, regarding additional information on the NSLDS Gainful Employment Reporting Process. Certain institutions must annually submit information on students enrolled in programs leading to gainful employment in a recognized occupation.

2010 College Graduates Met With More Debt, More Unemployment

NASFAA — Thu, 03 Nov 2011 00:00:00 GMT

New report indicates grant aid continues to help offset lower income levels and higher tuition rates.

11-02: Reminder - Active Confirmation of TG Numbers (SAIG Mailboxes) Required by Dec.16, 2011 to Maintain Access to Federal Student Aid Systems

NASFAA — Thu, 03 Nov 2011 00:00:00 GMT

As a reminder, every organization enrolled for a Student Aid Internet Gateway (SAIG) account is required to review and validate its assigned TG numbers by Dec. 16, 2011. The Department of Education notified the community of this requirement in an electronic announcement posted to the Information for Financial Aid Professionals (IFAP) website on Oct. 12, 2011. Currently, approximately 67 percent of SAIG Mailbox accounts and 77 percent of FAA Access accounts still require validation.

11-02: 2012-13 SAR Comment Codes and Text Guide

NASFAA — Thu, 03 Nov 2011 00:00:00 GMT

The Department of Education has posted the 2012-13 SAR Comment Codes and Text reference guide. The reference guide is designed as a stand-alone guide as well as a companion to the 2012-2013 EDE Technical Reference. The guide includes a description of changes to the SAR comments for 2012-13, and also provides the complete text for all 2012-13 comments.

NASFAA Resources to Help Members Comply with Consumer Disclosure Requirements

NASFAA — Fri, 04 Nov 2011 00:00:00 GMT

In light of a new report that suggests some institutions are struggling to comply with new consumer information requirements, we would like to highlight the many resources NASFAA provides to help members comply with the complex and ever growing disclosure

11-03: Errata and Updates - Volume 3 - Calculating Awards & Packaging [2011-12 Federal Student Aid Handbook]

NASFAA — Fri, 04 Nov 2011 00:00:00 GMT

Federal Student Aid has made a substantive revision to Volume 3 – Calculating Awards & Packaging of the 2011-12 Federal Student Aid Handbook. The revision has been added to the Errata and Updates for 2011-12 Federal Student Aid Handbook page and the updated PDF files are now available.

Act Now to Prevent Cuts to Pell Grants

NASFAA — Mon, 07 Nov 2011 00:00:00 GMT

Recent budget deals have already cut $30 billion from the student aid programs, sacrificing some students’ benefits to pay for others. Here are several ways you can take action to save student aid.

NASFAA Supports NPRM Changing Requirements on New Gainful Employment Programs(2)

NASFAA — Thu, 17 Nov 2011 00:00:00 GMT

NASFAA supports the Department of Education’s (ED) proposed changes to the requirements related to new gainful employment programs and appreciates ED’s efforts to reduce administrative burden wherever possible, NASFAA President Justin Draeger wrote in official comments submitted on Nov. 14. Final rules published on Oct. 29, 2010 included requirements for institutions to notify ED before offering a new educational program that provides training leading to gainful employment in a recognized occupation (gainful employment program).

11-16: Gainful Employment Electronic Announcement #28 – Continued GE Data Reporting and Corrections

NASFAA — Fri, 18 Nov 2011 00:00:00 GMT

Nov. 15, 2011 was the required reporting date for submitting data on institutions’ Gainful Employment Programs. If your institution has not submitted all of its required gainful employment data, it must do so as promptly as possible. The Department of Education's Program Compliance teams will determine, on an individual institutional basis what sanctions, if any, may be imposed on an institution for its non-compliance with the Nov. 15, 2011 reporting date. One of the factors the teams will consider is how promptly the information was reported.

11-17: 2012-13 COD Technical Reference (Nov. 2011 Final)

NASFAA — Fri, 18 Nov 2011 00:00:00 GMT

11-18: Loan Servicing Information - Quarterly Customer Satisfaction Surveys Begin Dec. 5, 2011

NASFAA — Mon, 21 Nov 2011 00:00:00 GMT

To measure customer satisfaction with five of the Department of Education's federal loan servicers—Direct Loan Servicing Center (ACS), FedLoan Servicing (PHEAA), Great Lakes Educational Loan Services, Inc., Nelnet, and Sallie Mae, an independent vendor will conduct quarterly surveys of borrowers, schools, and federal personnel on behalf of the Department. The independent vendor plans to launch the second quarter telephone surveys of borrower and school customers on Dec. 5, 2011.

11-18: COD School Testing for the 2012-13 Award Year

NASFAA — Mon, 21 Nov 2011 00:00:00 GMT

The COD School Relations Center will conduct Common Record Manual Verification and Structured Application Testing for the 2012-13 Award Year from Jan. 3, 2012 through Oct. 31, 2012. Optional Unstructured Testing will be available April 2, 2012 through Dec. 3, 2012. The purpose of COD School Testing is to provide an opportunity to test Pell Grant, TEACH Grant, and Direct Loan business processes and system software with the COD System using COD Common Record XML Schema Version 3.0e. It also provides an opportunity to make corrections or enhancements to software applications and processes prior to sending data to the “live” production environment.

11-18: Preliminary Information About SAIG Upgrade Planned for February 2012

NASFAA — Mon, 21 Nov 2011 00:00:00 GMT

To comply with mandated government-wide security requirements, and as part of ongoing efforts to ensure the security of the Federal Student Aid data systems, the Department will implement an upgrade to all components of the Student Aid Internet Gateway (SAIG), including TDNgine, TDClient, TDCommunity Manager (SAIG Portal), and EDconnect. The upgrade is planned for February 2012.

Panel Set to Fail to Cut Deficit $1.2 Trillion

NASFAA — Mon, 21 Nov 2011 00:00:00 GMT

"It's just about over for a special deficit-reduction supercommittee, which appears set to admit failure on Monday in its quest to sop up at least $1.2 trillion in government red ink over the coming decade," the Associated Press reports. "The bipartisan 12-member panel is sputtering to a close after two months of talks in which key members and top congressional leaders never got close to bridging a fundamental divide over how much to raise taxes."

Refusing to Pay

NASFAA — Mon, 21 Nov 2011 00:00:00 GMT

"For two months, the Occupy protests have focused attention on student loan debt. Today, a group that started with the Occupy movement will propose a solution: stop paying," Inside Higher Ed reports. "Under the campaign -- which grew from the original Occupy Wall Street protest and is now known, inevitably, as Occupy Student Debt -- borrowers will pledge to stop repaying their student loans once 1 million people vow to do so as well."

Colleges' Data on Student Learning Remain Largely Inaccessible, Report Says

NASFAA — Mon, 21 Nov 2011 00:00:00 GMT

"Colleges and universities are posting more information on their Web sites about whether their students are learning, but most such data are still available only on internal sites, says a report released on Monday by the National Institute for Learning Outcomes Assessment," the Chronicle of Higher Education reports. "The report, 'Making Student Learning Evidence Transparent: The State of the Art,' is part of a broader effort by the institute to monitor how much information colleges and universities are providing upfront to parents and students.

Most 2-Year Students Quit

NASFAA — Mon, 21 Nov 2011 00:00:00 GMT

"Most City University of New York community college students drop out before graduating, squandering the system's resources as enrollment soars, according to a report set to be released on Monday," the Wall Street Journal reports. "The study by the Center for an Urban Future, a Manhattan think tank, highlights a problem with national implications: Too many students arrive at community colleges without having learned basic reading and math concepts."

Learning to Play the Game to Get Into College

NASFAA — Mon, 21 Nov 2011 00:00:00 GMT

"[A] free program helps low-income teenagers throughout the Northeast work the [SAT/ACT] system too, called Let’s Get Ready," the New York Times reports. "Students are given help filling out college applications, writing essays, practicing interviews and preparing for the SAT. They are also required to write an essay explaining why they want to participate in Let’s Get Ready."

Deficit Committee Dismantles Triggering Automatic Cuts in FY 2013

NASFAA — Tue, 22 Nov 2011 00:00:00 GMT

The Congressional deficit reduction "super committee" announced yesterday that they are unable to agree on how to reduce the federal deficit by $1.2 trillion over the next decade. The committee was charged with creating $1.2 trillion in budget savings by midnight on Nov. 23. Failure to develop a deficit reduction plan triggers automatic, across-the-board cuts to certain government programs in the 2013 fiscal year (FY). This gives Congress nearly a year to pass a bill to prevent the automatic cuts.

Stop-Gap Spending Bill Will Fund Federal Programs Through Dec. 16

NASFAA — Tue, 22 Nov 2011 00:00:00 GMT

Congress passed and President Obama signed another stop-gap spending bill -- known as a continuing resolution (CR) -- last week to keep the government funded through Dec. 16. The CR passed by a vote of 298-121 in the House and 70-30 in the Senate. Federal agencies have been operating under a a CR that expired on Nov. 18. Congress passed the CRs because it has been unable to agree to a fiscal year (FY) 2012 budget.

Customer Service: Tips for Delivering Bad News

NASFAA — Tue, 22 Nov 2011 00:00:00 GMT

The best thing about working in the financial aid office is delivering the great news to students and families that they are able to fund a higher education and improve their lives. However, with federal, state and institutional budgets being cut deeper all the time, you may find yourself having to deliver bad news to your students more often than you would prefer.

Now Accepting 2012 GE-Reagan Foundation Scholarship Applications

NASFAA — Tue, 22 Nov 2011 00:00:00 GMT

Exceptional student leaders are invited to apply for the 2012 GE-Reagan Foundation Scholarship Program, which honors the legacy of President Ronald Reagan. Twenty college-bound students who demonstrate exemplary leadership, drive, integrity, and citizenship will be awarded $10,000 renewable scholarships (up to $40,000 per recipient).

Loan Servicing Information - Direct Loan Servicing Center (ACS) Resumes NSLDS Reporting (Update #12)

NASFAA — Tue, 22 Nov 2011 00:00:00 GMT

The Department announces that the Direct Loan Servicing Center (ACS) started reporting again to the NSLDS on Nov. 19. In October, ACS implemented a new loan servicing system and web sites and temporarily suspended reporting. ACS is now working to catch up on the manual processing of transactions that could not be completed during the extended system outage period. Until that work is completed, schools and borrowers may notice some information pertaining to disbursement adjustments, requests for deferments and forbearances, enrollment status changes, and payment application may not be updated in the NSLDS.

No Pennies in Direct Loan Disbursements, Disbursement Adjustments, Refunds of Cash

NASFAA — Tue, 22 Nov 2011 00:00:00 GMT

The Department reminds schools that Direct Loan disbursements, disbursement adjustments, and refunds of cash should be reported or submitted in whole dollar amounts only. The use of pennies in Direct Loan processing will impact a school's ability to successfully complete its monthly reconciliation because its Net Drawdowns may not match the Net Disbursements reported to the Common Origination and Disbursement (COD) System.

11-21: NSLDS Transfer Student Monitoring/Financial Aid History Processes and Batch File Layouts for 2012-13

NASFAA — Tue, 22 Nov 2011 00:00:00 GMT

The National Student Loan Data System (NSLDS) Transfer Student Monitoring/Financial Aid History Processes (TSM/FAH) and Batch File Layouts for 2012-13 are attached in Microsoft Word and PDF Formats. The layouts describe the file formatting for the TSM/FAH batch files. These layouts replace the NSLDS TSM/FAH Processes and Batch File Layouts dated Oct. 27, 2010, and include description updates and layout changes.

Deficit Supercommittee's Failure Triggers Steep Cuts for Education and Research

NASFAA — Tue, 22 Nov 2011 00:00:00 GMT

Nov. 22, 2011-NASFAA President Justin Draeger talks to the Chronicle of Higher Education about the looming cuts to student aid.

GEN-11-20: Foreign Institutions That Do Not Directly Award Recognized Educational Credentials

NASFAA — Mon, 28 Nov 2011 00:00:00 GMT

As a result of recent regulatory changes, foreign institutions that are not legally authorized by the countries where they are located to directly award educational credentials are no longer eligible to participate in the Direct Loan Program. Institutions that have lost eligibility as a result of the new rules are not permitted to award Direct Loans to new students. However, they may continue to award Direct Loans to students who obtained such loans prior to the loss of institutional eligibility and who maintained continuous enrollment.

11-23: Special Direct Consolidation Loan Information - High-Level Overview for FFEL Lenders and Lender Servicers

NASFAA — Mon, 28 Nov 2011 00:00:00 GMT

The special consolidation initiative will offer eligible borrowers who currently have at least one Direct Loan Program loan or Department-held (also referred to as ED-held) FFEL Program loan and at least one commercially-held FFEL Program loan the opportunity to bring all of their loans together with one servicer by consolidating their commercially-held FFEL Program loans into a Special Direct Consolidation Loan. FFEL lenders and servicers will assist the Department in completing the Special Direct Consolidation Loan process, just as they do with the traditional consolidation process.

Notice of Proposed Information Collection Requests: Loan Verification Certificate for Special Direct Consolidation Loans

NASFAA — Mon, 28 Nov 2011 00:00:00 GMT

The Loan Verification Certificate (LVC) will serve as the means by which the Department of Education (ED) collects certain information from commercial holders of Federal Family Education Loan (FFEL) Program loans that a borrower wishes to consolidate into the Direct Loan Program under a special initiative announced by the White House in an Oct. 25, 2011 fact sheet titled "Help Americans Manage Student Loan Debt.'' Interested persons are invited to submit comments on or before Jan. 27, 2012.

Subcommittee Hearing Focuses on Lowering Tuition Costs While Improving Education Quality

NASFAA — Thu, 01 Dec 2011 00:00:00 GMT

College tuition is continuing to rise, but much faster than spending or costs, according to a report introduced by the Subcommittee on Higher Education and Workforce Training in a hearing yesterday. Yesterday’s subcommittee hearing, entitled "Keeping College within Reach: Discussing Ways Institutions Can Streamline Costs and Reduce Tuition," was supplemented with a report by the Delta Project, an independent non-profit policy research organization, that showed that even though the cost of tuition is rising – as much as 8.3 percent at public four-year universities in the past year - institutions enrolling the most students spend the least on their education.

NASFAA’s AskRegs Service: What Is It and How Do I Use It?

NASFAA — Thu, 01 Dec 2011 00:00:00 GMT

NASFAA members have a great resource for regulatory or compliance questions—and it doesn’t require you to search on the web or dig through all those papers and binders in your office. The AskRegs service gives financial aid administrators personal assistance with their regulatory and compliance questions. Your questions are fielded by financial aid experts in NASFAA’s division of Training and Regulatory Assistance, who thoroughly research each question and provide a comprehensive answer, including regulatory citations, if applicable.

Final Rule: Family Educational Rights and Privacy

NASFAA — Fri, 02 Dec 2011 00:00:00 GMT

The Secretary of Education amended the Family Educational Rights and Privacy Act (FERPA). These amendments aim to ensure that the Department of Education continues to implement FERPA in a way that protects the privacy of education records while allowing for the effective use of data. Improved access to data will facilitate States' ability to evaluate education programs, to ensure limited resources are invested effectively, to build upon what works and discard what does not, to increase accountability and transparency, and to contribute to a culture of innovation and continuous improvement in education. These regulations are effective Jan. 3, 2012.

12-05: Complete 2010-11 Federal Student Aid Handbook with Index Linked to Entries

NASFAA — Tue, 06 Dec 2011 00:00:00 GMT

The Department of Education (ED) has made available the indexed version of the 2010-11 Federal Student Aid Handbook. The Federal Student Aid Handbook consists of the Application and Verification Guide and six numbered volumes. Each volume is posted on the Information for Financial Aid Professionals (IFAP) website after being reviewed and approved by the appropriate offices in Federal Student Aid and the Office of Postsecondary Education..

12-05: Volume 2 - School Eligibility and Operations [2011-12 Federal Student Aid Handbook]

NASFAA — Tue, 06 Dec 2011 00:00:00 GMT

The Department of Education (ED) has made available Volume 2 – School Eligibility and Operations of the 2011-12 Federal Student Aid Handbook. The Federal Student Aid Handbook consists of the Application and Verification Guide and six numbered volumes. Each volume is posted on the Information for Financial Aid Professionals (IFAP) website after being reviewed and approved by the appropriate offices in Federal Student Aid and the Office of Postsecondary Education.

12-05: Errata and Updates - Volume 5 - Overawards, Overpayments, & Withdrawal Calculations [2011-12 Federal Student Aid Handbook]

NASFAA — Tue, 06 Dec 2011 00:00:00 GMT

12-05: 2012-13 Application Processing System Specifications for Software Developers (Dec. 2011 Draft)

NASFAA — Tue, 06 Dec 2011 00:00:00 GMT

The Department of Education (ED) has posted an update to the 2012-13 Application Processing System Specifications for Software Developers. In this version, ED revised the Complete Reject Edits section to update the parameters for Reject 20 edits (4030-4034).

12-05: Upcoming SAIG Message Class File Update

NASFAA — Tue, 06 Dec 2011 00:00:00 GMT

On Dec. 9, 2011, the Department of Education (ED) will send the message class "MESSAGTB" via the Student Aid Internet Gateway (SAIG) to all user mailboxes. The EDconnect transmission software will automatically request, download, and import this new message class table with a user’s next connection to the SAIG network. Once the MESSAGTB file has been imported, the new message class table will be used from that point forward.

12-07: Loan Servicing Information - Federally-Owned Loan Transfer Initiatives Planned for Dec. 2011

NASFAA — Thu, 08 Dec 2011 00:00:00 GMT

The Department of Education plans to implement two transfer initiatives related to borrowers who have more than one servicer of their Federal Direct Loan Program loans and Federal Family Education Loan (FFEL) Purchased loans, more simply referred to as their federally-owned loans. These initiatives involve Direct Loans and FFEL Purchased loans with multiple servicers and rehabilitated/reinstated loans with the Student Loan Servicing Center (ACS).

12-07: 2012-13 ISIR Guide (Dec. 2011 Update)

NASFAA — Thu, 08 Dec 2011 00:00:00 GMT

The Department of Education has posted update to the 2012-13 ISIR Guide. The ISIR Guide assists financial aid administrators (FAAs) in interpreting student information on the Institutional Student Information Record (ISIR). ISIRs contain processed student information reported on the Free Application for Federal Student Aid (FAFSA), as well as key processing results and National Student Loan Data System (NSLDS) financial aid history information.

Improper Pell Grant Payments Drop 13%

NASFAA — Thu, 08 Dec 2011 00:00:00 GMT

Dec. 7, 2011 - The Triangle Business Journal cites NASFAA regarding the rate of improper Pell Grant payments, which declined from 3.1 percent a year ago to 2.7 percent in 2011.

Fighting Pell Grant Fraud

NASFAA — Thu, 08 Dec 2011 00:00:00 GMT

Dec. 7, 2011 - The Community College Times interviews NASFAA Communications Director Haley Chitty about student financial aid fraud. Chitty said that "colleges are addressing the issue, though media reports rarely focus on the successes of preventing such crimes."

ED Announces When it Will Post Verification Worksheets, Application and Verification Guide, FAFSA Demo Site

NASFAA — Fri, 09 Dec 2011 00:00:00 GMT

The Department of Education (ED) expects to post 2012-13 Verification Worksheets to the Information for Financial Aid Professionals (IFAP) website within the next several weeks. “Because of the regulatory changes in verification that are effective with the 2012-13 Award Year, the Department of Education has been working extensively with the financial aid community, including NASFAA, to develop revised verification worksheets that schools can use at their option and/or modify to meet their requirements,” an ED official wrote in the Federal Student Aid (FSA) Tech Listserv yesterday.

ED Modifies Credit Criteria for PLUS Loans

NASFAA — Fri, 09 Dec 2011 00:00:00 GMT

The Department of Education (ED) added unpaid (with a balance greater than zero) collection accounts and charge offs in their review of PLUS applicants’ credit history, effective with the COD release at the end of October. An applicant has an adverse credit history if on the date of the credit report, the applicant is 90 or more days delinquent on any debt, or has been the subject of a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off of a debt under title IV of the Act during the five years preceding the date of the credit report.

12-08: 2012-2013 EDE Technical Reference (Dec. 2011 Update)

NASFAA — Fri, 09 Dec 2011 00:00:00 GMT

The Department of Education (ED) has posted the updated 2012-13 Electronic Data Exchange (EDE) Technical Reference. The EDE Technical Reference provides programmer specifications, record layouts, and other detailed information for schools or other organizations that need to design software systems to interface with ED's application processing system.

12-08: 2011 Federal Student Aid Conference Updated Presentations Posted

NASFAA — Fri, 09 Dec 2011 00:00:00 GMT

The final updated FSA Conference presentations have now been posted online. If you were not able to attend the FSA conference this year, all sessions were recorded and are now posted directly on FSA's website homepage.

12-08: Change to Login Process for NSLDS Professional Access Website Planned for Dec.18, 2011

NASFAA — Fri, 09 Dec 2011 00:00:00 GMT

The Department of Education announces an upcoming change to the login process for the NSLDS Professional Access website. Beginning Sunday, Dec. 18, 2011, National Student Loan Data System (NSLDS) users will no longer enter their NSLDS ID and password to log in to the website. Instead, a Federal Student Aid User ID (FSA User ID) and password will be used to authenticate each user’s identity prior to allowing access to the NSLDS Professional Access website.

Amid Attacks on Pell Grants, Improper Payouts Fell 13 Percent in 2011

NASFAA — Fri, 09 Dec 2011 00:00:00 GMT

Dec. 8, 2011 - Jon Christian and Abraham White cite NASFAA in an article in Campus Progress about efforts by some members of Congress to cut financial aid spending. "One of the critiques of the program, improper payments of Pell Grant funds, should be less of a worry now as such instances fell by 13 percent in 2011, according to the Office of Management and Budget. ...The National Association of Student Financial Aid Administrators also noted that the payment error rate for the Pell Grant program is lower than the 4.7 percent error rate for the rest of the government - and significantly lower than the 8.6 percent error rate for the Medicare fee-for-service program."

12-04: 2011- 12 COD System Peak Processing Reminders

NASFAA — Thu, 15 Dec 2011 00:00:00 GMT

In January 2012, the Department of Education (ED) will begin another peak processing period for the 2011-12 Award Year. All system-generated responses are processed once a day at 2:30 a.m. (ET) for activity that occurred the preceding day. As with batches, in the unlikely event system-generated response processing takes longer than 24 hours, the COD School Relations Center will contact affected schools on the next business day.

NASFAA Summary of Student Aid Changes in FY 2012 Budget Bill

NASFAA — Fri, 16 Dec 2011 00:00:00 GMT

Congress reached a deal on the fiscal year (FY) 2012 budget last night after several days of disagreement and stalemate. The deal included the nine remaining appropriations bills needed to fund the federal government for the rest of FY 2012. The bill includes award year 2012-13 funding levels for the federal student aid programs and maintains a $5,550 maximum Pell Grant for the 2012-13 award year by cutting spending on other student aid programs and restricting eligibility. The Senate has not yet voted on the bill due to policy disagreements outside of education, but student aid provisions are unlikely to change in any further negotiations.

12-15: Reminder - Change to Login Process for NSLDS Professional Access Web Site Planned for Dec. 18, 2011

NASFAA — Fri, 16 Dec 2011 00:00:00 GMT

This is a reminder of the upcoming change to the login process for the NSLDS Professional Access website. Beginning Sunday, Dec. 18, 2011, National Student Loan Data System (NSLDS) users will no longer enter their NSLDS ID and password to log in to the website. Instead, a Federal Student Aid User ID (FSA User ID) and password will be used to authenticate each user’s identity prior to allowing access to the NSLDS Professional Access website.

12-15: REMINDER - New Street Address for Mailing Paper Master Promissory Notes and Endorser Addenda Effective Dec. 19, 2011

NASFAA — Fri, 16 Dec 2011 00:00:00 GMT

As noted in a Nov. 15, 2011 electronic announcement posted on the Information for Financial Aid Professionals (IFAP) website, the Department of Education would like to remind schools that the street address for sending paper Master Promissory Notes (MPNs) and Endorser Addenda to the Department via express or overnight delivery changes Monday, Dec. 19, 2011.

Comment Request: Request for Title IV Reimbursement or Heightened Cash Monitoring 2

NASFAA — Fri, 16 Dec 2011 00:00:00 GMT

The purpose of the Request for Title IV Reimbursement or Heightened Cash Monitoring 2 form is to gather financial information from the institution in order to process claims for payment. The Department of Education (ED) Payment Analysts compare data on the form with disbursement records in the Common Origination and Disbursement System to determine what amount will be paid to the institution under the restricted method of payments.

ED Contemplating 2012 Budget Act Provisions

NASFAA — Fri, 13 Jan 2012 00:00:00 GMT

The U.S. Department of Education is expected to issue a Dear Colleague Letter (DCL) in the near future to explain the provisions of the 2012 budget agreement signed into law shortly before Christmas. NASFAA has raised a number of questions regarding effective dates, which may be addressed in the DCL.

Student Loan Negotiated Rulemaking Issues Could Bring More Consistency to Federal Loan Programs

NASFAA — Fri, 13 Jan 2012 00:00:00 GMT

The student loan negotiated rulemaking committee approved for consideration 25 student loan regulatory issues Thursday, allowing the Department of Education (ED) to draft proposed rule language that will form the basis of negotiation during the second week-long session next month and a final session in March. The ultimate result will be a package of proposed rules to be published for public comment before promulgation of final rules. Thursday’s discussion focused largely on bringing consistency to regulatory language across federal loan programs, regarding issues such as eligibility, criteria, payment standards, reporting requirements and metric standards.

P-12-01: 2012-13 Federal Pell Grant Payment and Disbursement Schedules

NASFAA — Fri, 13 Jan 2012 00:00:00 GMT

The Department posted Payment and Disbursement Schedules to determine Pell awards for the 2012-13 Award Year (July 1, 2012 through June 30, 2013) for full-time, three-quarter-time, half-time, and less-than-half-time students. All 2012-13 Pell awards must be based on the these schedules. The maximum award for 2012-13 is the same as 2011-12, so the vast majority of EFCs have the same Scheduled Award amount. However, statutory changes to minimum awards make 4995 the maximum Pell eligible EFC for 2012-13 , less than the 5273 EFC maximum for 2011-12.

01-12: 2012-13 FAFSA on the Web Preview Presentation

NASFAA — Fri, 13 Jan 2012 00:00:00 GMT

The Department has posted a PowerPoint presentation containing screen shots of the 2012-13 FAFSA on the website to help you with the 2012-13 processing cycle. The presentation does not contain shots of every screen, but it provides a detailed look at changes on the "live" version of FAFSA on the Web for 2012-13.

NASFAA Makes Recommendations for FSA’s 5-Year Strategic Plan

NASFAA — Thu, 19 Jan 2012 00:00:00 GMT

In a letter to the Department of Education, NASFAA stresses the value and function of financial aid administrators (FAAs) as Federal Student Aid (FSA) begins to finalize a Strategic Plan for Fiscal Years 2012-16. In the Jan. 17 letter, NASFAA recommends the Department more clearly define the role of financial aid administrators and their relationship with FSA, while making room for improved communication between the two groups and enhanced evaluation of administrative burden. NASFAA also recommended that the plan better address the complexities of rising college costs, and that FAAs be given more opportunity to provide feedback on FSA’s five-year strategic plan.

GEN-12-01: Changes Made To The Title IV Student Aid Programs By The Recently Enacted Consolidated Appropriations Act, 2012

NASFAA — Thu, 19 Jan 2012 00:00:00 GMT

This Dear Colleague Letter provides information on changes made to the Title IV student assistance programs in the fiscal year (FY) 2012 Budget Bill. The FY 2012 Budget Bill, enacted on Dec. 23, 2011, maintains a $5,550 maximum Pell Grant for award year 2012-13, but makes several substantive changes to student eligibility, need analysis, and student loans. This DCL seeks to provide institutions with information on implementation and interpretation of the following provisions:

• Auto-Zero EFC Income Threshold

• Ability-to-Benefit

• 2012-13 Federal Pell Grant Amounts

• Minimum Federal Pell Grant Award and Maximum EFC

• Federal Pell Grant Duration of Eligibility

• Grace Period Interest Subsidy

• Calculation of Special Allowance Program

ED is still examining how to identify students who have exhausted their Pell eligibility under the new provision to reduce eligibility from 18 to 12 semesters. NASFAA Chair Pam Fowler and NASFAA President Justin Draeger met with FSA Chief Operating Officer Jim Runcie yesterday afternoon to discuss the implementation of the new provisions of the budget bill. ED expects to have additional details on the identification and notification process in the coming weeks.

01-18: Special Direct Consolidation Loan Information — Federal Loan Servicer Contact Underway

NASFAA — Thu, 19 Jan 2012 00:00:00 GMT

The Department of Education (ED) announced the start of the application period for the Special Direct Consolidation Loan opportunity through the Federal Direct Loan Program. On Jan. 17, 2012, ED implemented the online application for this short-term special consolidation opportunity that will be available to eligible borrowers through June 30, 2012.

01-18: TFA Information - Two Factor Authentication Implementation Information for the COD Website

NASFAA — Thu, 19 Jan 2012 00:00:00 GMT

The Department of Education is implementing a number of technology security initiatives in 2012. One of the initiatives is a security process called Two Factor Authentication (TFA). Through TFA, when logging in to certain Federal Student Aid systems, an authorized user will be required to use a traditional User ID and Password as well as provide a One-Time Password (OTP).

How To Get the Best Student Aid Deal Now

NASFAA — Thu, 19 Jan 2012 00:00:00 GMT

Jan. 18, 2012 - Reuters interviews NASFAA Director of Communications Haley Chitty about seeking student financial aid for college. "Savvy consumers can minimize the financial burden of higher education by maximizing the amount of aid they go after, and there's a lot of money to be had," Chitty said.

Forum Panelists Debate Efficiency, Structure of Pell Grant Program

NASFAA — Thu, 19 Jan 2012 00:00:00 GMT

Jan. 19, 2011 - Diverse reports on NASFAA's college access forum on Capitol Hill. The article highlights the debate about the structure and sustainability of the Pell Grant program in the panel discussion "The Future Role of Federal Pell Grants."

ED to Release 2012-13 Verification Worksheets in Coming Weeks

NASFAA — Fri, 20 Jan 2012 00:00:00 GMT

In a message posted to the Federal Student Aid mailing list (FSATech listserv), the Department of Education (ED) said it expects to post the 2012-13 Verification Worksheets to the IFAP website in the next several weeks. ED also said it expects to post the Application and Verification Guide of the 2012-13 Federal Student Aid Handbook later this month.

01-19: Tentative 2012-13 Funding Levels for the Campus-Based Programs

NASFAA — Fri, 20 Jan 2012 00:00:00 GMT

Tentative funding levels and corresponding worksheets for the Campus-Based Programs for the award period July 1, 2012 through June 30, 2013 will be posted to the eCampus-Based (eCB) website by Feb. 1, 2012.

Student Loans Aren’t Going Away, but They Could Be Improved

NASFAA — Fri, 20 Jan 2012 00:00:00 GMT

Jan. 19, 2011 - Beckie Supiano writes in the Chronicle of Higher Education's Innovations blog about a NASFAA Perspectives series article written by Mark Kantrowitz on the Occupy Wall Street movement. "Kantrowitz writes that refusing to repay loans will hurt borrowers more than the government or other lenders, and that mass loan forgiveness is not the best way to stimulate the economy."

FP-12-01: Loan Verification Certificate for Special Direct Consolidation Loans

NASFAA — Mon, 23 Jan 2012 00:00:00 GMT

This letter announces the approval of a Loan Verification Certificate (LVC) for use in connection with the making of Special Direct Consolidation Loans through the Federal Direct Loan Program. It also provides Federal Family Education Loan (FFEL) Program lenders and lender servicers with guidance on completing the LVC and explains the LVC process.

1-20: Distribution of 2012-13 Renewal FAFSA Reminders

NASFAA — Mon, 23 Jan 2012 00:00:00 GMT

The Department has identified students eligible to receive a 2012-13 Renewal FAFSA and began distributing e-mail reminders and printed reminders on Jan. 18, 2012. Reminders distribution will continue through Feb. 10.

1-20: Follow @FAFSA on Twitter

NASFAA — Mon, 23 Jan 2012 00:00:00 GMT

Federal Student Aid (FSA) has launched its new Twitter account @FAFSA. FSA plans to use Twitter to support an ongoing conversation around student financial aid. To kick this off, Martha Kanter, the Under Secretary of Education, will host “FAFSA Office Hours” where she will answer students’ FAFSA questions live on Twitter. The event will take place on Jan. 26 at 4:30pm EST and will be the first in a monthly series of Q&A sessions that FSA will host on Twitter.

Rules and Regulations: Program Integrity - Correction to Gainful Employment-Debt Measures

NASFAA — Mon, 23 Jan 2012 00:00:00 GMT

On June 13, 2011, the Secretary of Education published a notice of final regulations in the Federal Register for Program Integrity: Gainful Employment--Debt Measures (Gainful Employment--Debt Measures) (76 FR 34386). In the preamble of the final regulations, the Department of Education (ED) used the wrong data to calculate the percent of total variance in institutions' repayment rates that may be explained by race/ethnicity. ED's intent was to use the data that included all minority students per institution.

States Push Even Further to Cut Spending on Colleges

NASFAA — Mon, 23 Jan 2012 00:00:00 GMT

"For nearly four years, governors and state legislators have focused on little else in higher education but cutting budgets to deal with historic gaps in revenue," the Chronicle of Higher Education reports. "Now, with higher-education support at a 25-year low, lawmakers are considering some policy changes that have been off-limits in the past, such as consolidating campuses and eliminating governing boards."

The College-Aid Shuffle

NASFAA — Mon, 23 Jan 2012 00:00:00 GMT

"It is the height of financial-aid season, that time of year when families scramble to grab grants, scholarships and loans to offset the rising cost of a college education," the Wall Street Journal reports. "Many will find themselves in a classic quagmire: They are considered too wealthy to qualify for help, but not wealthy enough to pay full freight."

For-Profit Colleges Under Attack for Treatment of Veterans

NASFAA — Mon, 23 Jan 2012 00:00:00 GMT

"For-profit colleges are coming under attack again, this time for allegedly preying on military veterans," the Chicago Tribune reports. "Sen. Dick Durbin, D.-Ill., is scheduled to hold a forum on the issue in Chicago Monday and plans to introduce legislation later in the day that would eliminate the financial incentive for-profit colleges have to recruit veterans aggressively into pricey programs."

State Higher Education Spending Sees Big Decline

NASFAA — Mon, 23 Jan 2012 00:00:00 GMT

"State funding for higher education has declined because of a slow recovery from the recession and the end of federal stimulus money, according to a study released Monday," the Associated Press reports. "Overall, spending declined by some $6 billion, or nearly 8 percent, over the past year, according to the annual Grapevine study by the Center for the Study of Education Policy at Illinois State University."

Despite Lawmaker Criticisms, Many Ideas from Obama’s Last Budget Made the Cut

NASFAA — Mon, 23 Jan 2012 00:00:00 GMT

"With President Obama set to unveil his 2013 budget in the coming days, a close look at last year’s document shows that some of Obama’s suggestions were implemented in the end," the Hill reports. "The maximum Pell Grant award was maintained while funding for summer school and for reduced interest payments were eliminated, as Obama had recommended."

North Carolina: Many College Students Say They Have to Take On High Debt to Stay in School

NASFAA — Mon, 23 Jan 2012 00:00:00 GMT

"Two years ago, the cost of James Jackson's freshman year at Fayetteville State University was covered by scholarships and grants," the Fayetteville Observer reports. "Now, Jackson is $5,000 in debt and worried about having enough money to graduate. He and thousands of other students in the state's university system are feeling a financial squeeze as tuition, fees, room and board, and other costs go up while federal financial aid goes down."

Opinion: State Universities Need a New Model for Paying the Bills

NASFAA — Mon, 23 Jan 2012 00:00:00 GMT

"State support has declined from 47 percent of the school’s operating budget in 1991 to 11 percent," the Washington Post editorial board writes. "Tuition has skyrocketed, faculty have been furloughed, classes are bigger and California students have been turned away in favor of out-of-state residents, who pay more."

College Affordability: Damned If You Go, Damned If You Don't?

NASFAA — Mon, 23 Jan 2012 00:00:00 GMT

"The reality is that college is becoming increasingly unaffordable," Education Trust Vice President for Higher Education Policy and Practice Jose Cruz writes in the Huffington Post's College blog. "Indeed, college tuition and fees are growing almost twice as fast as health care costs, and about four and a half times as fast as inflation."

The Choice on ‘Today’: Tips on FAFSA, and Net-Price Calculators

NASFAA — Mon, 23 Jan 2012 00:00:00 GMT

"The Choice blog occasionally collaborates with NBC’s 'Today' show on college admissions segments, and in our latest installment, Matt Lauer focused this morning on the hot-stove topic of the season for many families: financial aid," Jacques Steinberg writes in the New York Times Choice blog.

Negotiators Struggle to Define Institutional TEACH Grant Eligibility Requirement

NASFAA — Tue, 24 Jan 2012 00:00:00 GMT

Attempts to clarify the TEACH Grant requirement that an eligible institution provide a "high quality teacher preparation program" at the Teacher Preparation Negotiated Rulemaking committee meeting Friday were met with hesitation over the potential implications of overly prescriptive or burdensome language, particularly as the White House hopes to transform the program in the near future. The Obama administration has plans to establish a $185 million state teacher preparation reform grant program that would revamp and upgrade the $110 million TEACH Grant program. Negotiators at Friday’s meeting expressed concern that any regulatory language to define a "high quality teacher preparation program" as a matter of institutional eligibility for the TEACH grant program would likely form the basis for the regulatory language under the "Presidential Teaching Fellows" program, which may entail different intentions and objectives.

01-23: Reminder - Deadline for 2012-13 Underuse Penalty Waiver for the Campus-Based Programs is Feb. 10, 2012

NASFAA — Tue, 24 Jan 2012 00:00:00 GMT

As announced in the “Notice of the 2011-12 Award Year Deadline Dates for the Campus-Based programs,” published in the Federal Register Feb. 2, 2011, the deadline to request a waiver of the 2012-13 Award Year penalty of Federal Work Study (FWS) and Federal Supplemental Educational Opportunity Grant (FSEOG) for the underuse of 2010-11 Award Year funds is Feb. 10, 2012.

01-23: 2012-13 COD Technical Reference (Jan. 2012 Update)

NASFAA — Tue, 24 Jan 2012 00:00:00 GMT

The Department of Education has posted the updated 2012-13 Common Origination and Disbursement (COD) Technical Reference. The 2012-13 COD Technical Reference contains development information for the 2012-13 Award Year.

01-23: G5 Website Unavailable Jan. 23, 2012

NASFAA — Tue, 24 Jan 2012 00:00:00 GMT

On Monday, Jan. 23, 2012, the G5 website was unavailable due to system maintenance work that was not able to be completed during the regular weekend maintenance window. As a result, users are not able to access the G5 website to conduct any transactions. The Department of Education is working to complete its work and restore normal operations as soon as possible.

Outlook for Higher Education Remains Mixed, Moody's Says

NASFAA — Tue, 24 Jan 2012 00:00:00 GMT

"In a report released on Monday, Moody's Investors Service sticks with the mixed outlook for higher education that it established last year: For leading colleges that are well managed and diversified, the market is looking stable," the Chronicle of Higher Education reports. "For the rest, not so much."

College Students Face Stiff Competition for Financial Aid

NASFAA — Tue, 24 Jan 2012 00:00:00 GMT

"Several states have reduced scholarships or toughened eligibility criteria for financial aid," USA Today reports. "Eligibility for the maximum Pell grant, the largest source of federal financial aid, has also been tightened. Meanwhile, the number of families applying for financial aid has soared."

California: Financial Aid for Students

NASFAA — Tue, 24 Jan 2012 00:00:00 GMT

"The California Student Aid Commission is announcing the official start of the 2012 financial aid and Cal Grant application period. As part of the program, local high schools and community organizations are hosting Cash for College workshops," the Times-Standard reports. "Students and their families can receive one-on-one, bilingual assistance with the FAFSA (the Free Application for Federal Student Aid) and other financial aid forms."

Louisiana Connect Helps High Schoolers Plan for College and Careers

NASFAA — Tue, 24 Jan 2012 00:00:00 GMT

"The Louisiana Office of Student Financial Assistance is spreading the word about the new Louisiana Connect college access and career planning Web portal," the Town Talk reports. "'Louisiana Connect provides tools and resources to help students plan for life after high school, find colleges where they can be successful and launch rewarding careers,' a news release from LOFSA states."

Opinion: The Forgotten Middle Class

NASFAA — Tue, 24 Jan 2012 00:00:00 GMT

"The Pell Grant Program, enacted in its earliest form in 1972, provides financial assistance to lower-income students who otherwise would not be able to afford college," California State University at Stanislaus President Hamid Shirvani writes for Inside Higher Ed. "Award amounts depend on the family’s expected financial contribution and remaining financial need, with a current maximum award of $5,550 per year."

Opinion: Redoing Pell

NASFAA — Tue, 24 Jan 2012 00:00:00 GMT

"Despite its many accomplishments since its enactment in 1972, the Pell Grant program has strayed in key ways from the initial conception of the Senator for whom it is now named," higher education public policy consultant Arthur M. Hauptman writes for Inside Higher Ed. "Instead of disadvantaged students and their families knowing years in advance of their eligibility for aid, the process of applying for and receiving a Pell Grant (and federal student aid more generally) is excessively complicated and often serves as a barrier to access."

The Future of Pell Grants

NASFAA — Tue, 24 Jan 2012 00:00:00 GMT

Jan. 23, 2011 - Sandy Baum and Michael McPherson write in the Chronicle of Higher Education's Innovations blog about NASFAA's forum on "The State of College Access" and the future of the Pell Grant program.

Beware: Alternative Certification Is Coming

NASFAA — Tue, 24 Jan 2012 00:00:00 GMT

"The announcement of agreements between Burck Smith’s StraighterLine and the Education Testing Service (ETS) and the Council on Aid to Education (CAE) to provide competency test materials to students online is potentially very important, along with several other recent developments," Richard Vedder writes in the Chronicle of Higher Education's Innovations blog. "A little economics explains why this is so."

CSS Profile: How to Maximize Financial Aid

NASFAA — Tue, 24 Jan 2012 00:00:00 GMT

"Financial aid season is upon us, and in addition to filling out the Free Application for Federal Student Aid, or FAFSA, the form that qualifies students for federal grants, loans and work-study jobs, some students will also have to file the College Scholarship Service, or CSS, Profile," editor Christina Couch writes for Bankrate.com. "Used by more than 350 private institutions throughout the U.S., the CSS Profile is much more extensive than the FAFSA and can qualify students for enormous nonfederal financial aid packages funded by their college."

Funding Available to Support Financial Education and Encourage Savings