Today's News

Today's News for Monday, July 21, 2014 
 
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For nearly 30 years, Inceptia/NSLP has been developing and providing solutions schools need to help their students succeed. We have worked with over two million students and 5,500 schools, providing services including financial education and default prevention services. As a non-profit our focus is helping students, their families, and institutions.


NEWS FROM NASFAA

ED's Current Application Reprocessing to Make Most Affected Students Ineligible for Federal Grants

In an electronic announcement posted on Friday, Federal Student Aid announced that just under 200,000 financial aid applications will be reprocessed this evening due to a likely applicant error in entering income earned from work. In cases where the error caused a much higher contribution from income, correcting the error could significantly reduce the EFC and increase Pell eligibility. Conversely, these errors could make some students currently showing as eligible for Pell Grants and other subsidized aid ineligible. For this initial reprocessing, it appears from the electronic announcement that most applicants will fall into the latter.

Bi-Partisan Legislation Proposes Employer Withholding And Automatic IBR For Loan Repayment

Republican Senator Marco Rubio (R-FL) and Democratic Senator Mark Warner (D-VA) introduced the Dynamic Student Loan Repayment Act last week. The bill would replace current loans, subsidies, deferments, forbearances, and repayment options with a single loan called the Income Dependent Education Assistance (IDEA) Loan, and would be repaid through income-based repayment and employer withholding. Under this restructuring, all federal loans made to student borrowers would eventually move to the IDEA Program (with limited grandfathering of current Direct Loan borrowers). Federal Direct PLUS loans would continue to be made to parent borrowers, through Parent PLUS, under the current Direct Loan Program.

Report: Tax Credits Show 'Little Evidence' of Making Impact on College Affordability

Despite the widespread use of various tax credits to address college affordability, the tax code is not the right tool to make college more affordable and increase access to higher education, the Tax Foundation states in a new report.  The Foundation argues that the tax credits "violate the principles of sound tax policy" and should be eliminated within a comprehensive tax reform package. Check out the report and share your thoughts in the comments section!

NASFAA.org System Upgrades And Maintenance Nearly Complete

The majority of upgrades and maintenance to NASFAA’s membership database and related systems is now complete. The online AskRegs Knowledgebase, registration for Webinars and NASFAA University Courses, access to your myNASFAA account and online directories, and the NASFAA University Testing Center should now be available. The online NASFAA store is still being updated. We apologize for any inconvenience these upgrades may have caused and thank you for your patience.

AskRegs Knowledgebase Answers: NASFAA Conference Q&A: How Is the Subsidized Usage Period (SUP) Calculated If a Student Has Multiple Enrollment Statuses Within a Single Loan Period?

Learn the answer to this question and learn how to instantly find credible and reliable solutions to your most pressing regulatory and compliance questions with NASFAA's AskRegs Knowledgebase. The Knowledgebase guide and video tutorials highlight the many features of this tool.

U.S. DEPARTMENT OF EDUCATION

7-18: FAFSA Filers Under the Age of 13

The Department has been contacted by a small number of institutions asking whether students under the age of 13 who are otherwise eligible can apply for and receive Title IV, HEA program assistance. This electronic announcement responds to those questions.

7/18: Issue Alert - Upcoming CPS Reprocessing of Records with Questionable Income Earned from Work Values

A number of schools have reported that they are finding a high number of applicants with incorrect Income Earned From Work values on 2014-2015 Institutional Student Information Records (ISIRs). Even though the above enhancements will eliminate these types of errors in the future, the Department must ensure that applicants who had made these errors are identified, so that their institutions can work with them to make any necessary corrections. To do so, on the evening of Monday, July 21, 2014, the Central Processing System (CPS) will create system-generated transactions for these applicants.

7-18: HEAL Program Information - Maximum HEAL Program Interest Rates for Quarter Ending September 30, 2014

The maximum HEAL Program interest rates for the quarter ending September 30, 2014 are available in the “Current Maximum Interest Rates” section of the HEAL Interest Rates page.

7-18: COD Processing Update

The COD Processing Update provides information related to COD System processing and includes the following sections: COD News and Updates, Current Issues (with a subsection for All Programs, Direct Loans, and Grants), and Reminders.

HEADLINES

National News

The Next Big Jobs Collapse: Higher Education

"Predicting the economic future is difficult, but lucrative. … But you don't have to be a Wall Street big-wig to benefit from foresight. The biggest bet most of us will make in our lives is on the career paths we choose, and if you're working primarily to achieve financial security, choosing the right industry is essential," Fortune reports.

Opinions

Opinion: Why Picking A Major Based On Salary Will Cost You Money

"I was reading a Kiplinger's article on 10 Graduate Degrees Worth the Debt, and got to thinking: 'what happens when someone chooses a major only because they'll make more money?'" Reyna Gobel writes in a Forbes opinion piece.

Opinion: Creating Opportunities In The Aloha State

"As I watch and listen to recent national conversations about education reform, I can't help but think about my family," House of Representatives candidate Mark Takai (D-HI) writes in The Huffington Post.

Blogs and Think Tanks

Education Dept. Appoints Former U.S. Attorney To Monitor Corinthian's Close

"The U.S. Department of Education has appointed Patrick Fitzgerald, a former U.S. attorney in Illinois, to oversee Corinthian Colleges' closure of its campuses, according to a news release from the department," The Chronicle of Higher Education's The Ticker reports.

The Great Student Loan Pander

"There's been a lot of buzz lately about the Democrats' young voter problem. Fewer than half of 2012 Obama voters say they'll vote Democrat in this year's election," Evan Feinberg, president of Generation Opportunity, writes in The Hill's Congress Blog.

A Student Loan Is A Loan... Really?

"The Brookings Institution recently published a report that finds little evidence that a student loan bubble exists. This has caused a dust up with those who believe a bubble is already here," Bob Hildreth, founder and executive director of FUEL Education, writes in The Huffington Post's The Blog.

The Education Apocalypse--20 Years Of Ongoing Fall Out

"This year marks the twenty-year anniversary of the 1994 Omnibus Crime Bill, the legislative bombshell that effectively eliminated higher education in prison," SpearIt, associate professor at Texas Southern University's Thurgood Marshall School of Law, writes in The Huffington Post's The Blog.

NASFAA CAREER CENTER

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