Slide 1

Report
2012 Financial Aid Changes
WHAT’S CHANGING AND WHAT IT MEANS
FOR YOUR STUDENTS
A LOOK AT THE NUMBERS
BIG CHANGES
Unduplicated Numbers
Unduplicated Financial Aid Recipients
Unduplicated Financial Aid Recipients
1,045,112
891,984
610,112
2002-03
652,641
2003-04
714,004
732,362
732,321
2004-05
2005-06
2006-07
781,819
2007-08
2008-09
2009-10
8 Year Comparison
Credit Enrollment
Number of BOG
Fee Waivers
Dollar Value of
BOG Fee Waivers
Number of Pell
Grants
2002-03
2,690,594
597,286
$102,726,455
239,925
$533,720,693
$895,275,669
2003-04
2,453,486
639,105
$168,185,622
246,093
$566,248,344
$1,018,060,333
2004-05
2,439,443
699,015
$266,390,548
259,958
$605,956,126
$1,170,057,941
2005-06
2,471,501
716,796
$273,785,746
254,603
$589,892,151
$1,170,094,754
2006-07
2,529,893
715,516
$249,021,634
247,143
$573,914,323
$1,132,521,342
2007-08
2,687,314
761,968
$225,305,123
270,098
$668,170,200
$1,242,937,640
2008-09
2,816,261
870,318
$253,942,628
321,066
$881,680,875
$1,553,328,885
2009-10
2,675,379
1,023,645
$369,297,507
418,775
$1,356,231,619
$2,228,378,885
2010-11
2,551,209
1,130,845
$410,709,338
491,577
$1,623,367,005
$2,546,557,910
8 year +/-
-139,385
533,559
307,982,883
251,652
1,089,646,312
1,651,282,241
-5.2%
89.3%
299.8%
104.9%
204.2%
184.4%
Year
8 year % +/-
Dollar Value of Pell Dollar Value of All
Grants
Aid Programs
Policy Decisions and the Budget
 Decisions about Financial Aid eligibility and access
to college and other requirements should be made as
policy decisions—BASED ON DATA and what is best
for the STUDENTS.
 More and more the decisions develop as part of
budget policy.
 CASE IN POINT: The federal budget act passed in
mid-December included a number of dramatic
changes to Financial Aid policy.
FEDERAL CHANGES
HAPPENING NOW
6 FT Year Limit on Pell Grant
 6 FT Years or 600% of Pell in a LIFETIME
 At any college
 Department of Ed keeps the calculator and will block
anyone over 6 FT Years


So, some of your students are out of Pell or will run out before
they get their BA
Reinforces the SSTF recommendation to FOCUS the students
early
Elimination of ATB
Effective July 1, 2012, students must have a high
school diploma or the
equivalent (i.e. GED
or California High School
Proficiency Exam) to
be eligible to receive
federal student aid.
Interest Subsidy for Student Loans
 New loans made on or after July 1, 2012, and before
July 1, 2014, will not be eligible for interest subsidy
during the six month grace period.
 Interest on a student loan just rose to 6.8% despite
prime rate below 2%
Verification Changes
 Biggest Change is that some students and parents
can import their information from the IRS to their
FAFSA.
 If they opt not to, or are not allowed to, they will
have to get an IRS Tax Transcript.
 This will delay aid for some students.
 We must also start to verify child support and food
stamps as well.
Satisfactory Academic Progress
 Your campus probably made BIG changes this year.
 Minimum requirements are 2.0 GPA (term and cum.)
 Minimum completion rate of 67% (term and cum.)
 Your campus may opt to be stricter
 Students who are disqualified must go without aid except in
exceptional cases of unforeseen extreme issues which can
be verified.
Course Repeats
 THIS IS DIFFERENT FROM THE NEW STATE
RULES ON REPEATS!!
 A student may be paid federal aid to repeat a course
they did not pass, until they either pass the class or
are disqualified from aid.
 A student who passed the class (and the feds define a
‘D’ as passed) and want to improve their grade, can
only be paid to repeat it ONCE no matter what.
Cohort Default Rates
 They are going to 3 years from 2 years—so most
campuses will see dramatic increases!
 CCCs are ‘low participation’ colleges. With less than
40% of our students taking loans, we can apply for a
waiver of sanctions.
Clock Hours Changes
 There is still much negotiation on this but:
 New definition of Credit hour for Federal Aid purposes
 Also indicated that if a state or federal licensing agency
requires a certain number of hours before a student can take
an exam—the certificate or degree program must be in Clock
Hours
Gainful Employment Report
 Many of you have probably already been involved in
discussions about the requirement to report data on
all Vocational Certificate Programs.
But-did you know that the State of California passed
SB-70 which affects a schools ability to participate in
the Cal-Grant programs?
Proposals Floating
 Increase in Federal Work Study IF the institution
places students off campus
 Elimination of Auto Zero EFC which will reduce the
number of students receiving FT Pell
State Changes
COMING IN 2012-13
BOG Fee Waiver Changes
 No more $1 of need eligibility!
 Student must have $1104 dollars of need
24 units X $46= $1104
Dream Acts AB 130 and 131
 Effective January 1st 2013
 AB-130 allows institutions to grant NON-public
funds/scholarships to AB-540 students
 AB-131 makes AB-540 students eligible for BOG Fee
Waivers
 AB-131 also makes AB-540 students eligible for Cal
Grants.
SSTF Recommendations
 Max Unit Cap on BOG Fee Waivers-110?
 Student must meet A&R academic and progress
standards
 Students must declare a degree, certificate or career
advancement goal.
CIOs: Help Connect Faculty to FA Changes
 Ask questions and understand the implications
 Ensure communication to students (flyers, email,
Portal, etc.)
 Have FA director and staff interact with faculty
 Communicate with Academic Senate regularly
Some Dilemmas
 Should students be advised to get more than one
degree given Pell limitations?
 How soon can students realistically develop a
meaningful program of study?
 Should students be allowed multiple ed plans for FA
purposes?
 What can Instruction do to help students complete
courses faster?
Questions

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