The Advisory Committee on Student Financial Assistance presented to Congress its interim legislative recommendations for the Special Study of Simplification of Need Analysis and Application for Title IV Aid. Congress charged the Committee to conduct this study in the FY2004 Consolidated Appropriations Act, in order to identify ways to streamline the financial aid system to make it easier, more responsive, and fairer for students and families.
In the transmittal letter, Advisory Committee Chair Clare M. Cotton said, "In carrying out the study, Congress directed us to focus on the needs of low- and moderate-income students and to identify and assess any potential adverse effects of proposed changes on program costs, integrity, delivery, or distribution of awards. In authorizing the Simplification Study, members of Congress recognized the importance of simplifying the application process for Title IV programs in order to improve college access. Simplifying the Free Application for Federal Student Aid (FAFSA) helps ensure that application complexity does not hinder access to higher education for any student. Eliminating barriers posed by application complexity is particularly important for low- and moderate-income students, who may already face significant academic and financial barriers to college and may have the least resources available to assist them in completing the FAFSA. "
NASFAA President Dallas Martin applauded the recommendations. "NASFAA hopes that Congress will seriously consider these suggestions, many of which align with or complement NASFAA's own reauthorization recommendations. Given the importance of ensuring access to postsecondary education for all qualified citizens, we believe that simplifying the financial aid process should be carefully considered and fundamentally addressed in this reauthorization." Martin presented a statement at the Committee's February 5, 2004 hearing in Washington, DC.
Following is a list of the recommendations made by the Advisory Committee. See the complete document for details.
- Expand the automatic-zero EFC (auto-zero) by increasing the income threshold to $25,000.
- Adjust the auto-zero income threshold annually using the Consumer Price Index.
- Expand and streamline the Simplified Needs Test.
- Implement a paper FAFSA-EZ and phase out the full paper FAFSA.
- Reduce the number of data elements required in FAFSA on the Web.
- Expand and integrate the use of appropriate technology.
- Implement a comprehensive system of early awareness of financial aid information.
- Allow all students to apply for financial aid earlier.
- Reduce application complexity by eliminating data elements and questions wherever possible.
- Eliminate the drug conviction and Selective Service registration questions.
- Minimize the work penalty on student earnings.
- Eliminate the unfairness associated with updates to the state and local tax allowance.
In the conclusion of his letter, Cotton stated that, "The Advisory Committee looks forward to working with Congress on the further development and implementation of these interim legislative recommendations. In accordance with the charge from Congress, we will also continue to develop additional legislative recommendations, as well as regulatory recommendations, which will be delivered to Congress and the Secretary on January 23, 2005. "
Posted August 17, 2004 on www.NASFAA.org, the Web Site of the
National Association of Student Financial Aid Administrators (NASFAA).
Copyright 2004. Redistribution to non-NASFAA institutions is prohibited
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