NASFAA Summary of HEA Technical Corrections Bill (H.R. 1777)
Late last week, President Obama signed into law the HEA Technical Corrections Bill (H.R.1777). The bill includes several provisions that NASFAA has been advocating for. Most notably, the bill:
- Excludes Expected Family Contribution (EFC) from information that must be given to students for the self-certification form to be filed with lenders by students applying for private education loans. NASFAA has been advocating for this provision.
- The list of programs included in the definition of VA Educational Benefits is expanded, and the effective date of exclusion of all of those benefits from estimated financial assistance is moved up to July 1, 2009. NASFAA has advocated for this provision so that the new Post-9/11 GI Bill benefits will not be counted against a student's estimated financial assistance.
- Extends the operation of experimental sites that have not been deemed "successful" to June 30, 2010 (from the previous discontinuation date of June 30, 2009), as NASFAA recommended. The bill directs ED to determine "success" based on the ability of the experimental site to reduce administrative burdens to the institution, as documented in ED's biennial report, without creating costs for the taxpayer; and whether the experimental site has improved the delivery of services to, or otherwise benefited, students.
- Clarifies that lenders and guaranty agencies may provide entrance counseling (on same basis as previously allowed exit counseling).
- Expands the Department's temporary authority to purchase loans to include rehabilitated loans and requires lenders to use proceeds of such sales to ensure continued participation in the FFEL Program.
- For non-Pell eligible students, creates the "Iraq and Afghanistan Service Grants" - effective July 1, 2010 - for students whose parent or guardian died as a result of military service in Iraq or Afghanistan after 9/11/01, if the student was under 24 years old at the time or enrolled in an institution of higher education at the time.
- For Pell-eligible students, sets the EFC at zero for children of soldiers killed in Iraq or Afghanistan after 9/11/01, if the student was under 24 years old at the time or enrolled in an institution of higher education at the time (effective July 1, 2009).
- Clarifies that "EZ FAFSA" and simplified FAFSA on the web need not be implemented until 2010-11.
Publication Date: 7/6/2009