Financial Aid Federal and State Updates Session 9/29/2017 Financial Aid Federal and State Updates Session Brian Dixon, M.B.A Washington State University Assistant Vice President Student Financial Services Johanna Dwyer, M.B.A South Puget Sounds Community College Dean of Student Financial Services Template D Plain-white-dark 1

Removing financial barriers and providing access for students by effectively managing and advocating for the continued investment of federal, state, institutional and private resources; Recognizing innovative awarding strategies to help recruit, retain, and graduate a diverse and talented student body; and Resourcing students with the financial knowledge that will allow them to contribute to the enhancement of state, national, and global communities. OUR ROLE

INCREASED AFFORDABILITY 9/29/2017 Stagnant earnings for low-/middle-income families A permanently higher median unmet need of freshmen Rising health insurance costs for needy students Increasing high school graduation rates for both the Washington State and the U.S. Fluctuations in state and federal funding policies INCREASED AFFORDABILITY https://www.washingtonpost.com/news/education/wp/2016/10/17/nations-high-school-graduation-rate-reaches-new-record-high/

FINANCIAL AID PACKAGE MAKEUP

FEDERAL ISSUES Early FAFSA Extension of Perkins Loan Pell Grant Funding Borrower Defense Act Reauthorization of HEA FEDERAL ISSUES

In September of 2015, President Obama passed an executive action that will allow students to use Prior- Prior Year (PPY) tax information to complete the FAFSA and WASFA in preparation for the 2017-2018 Academic Year. EARLY FAFSA

Students will no longer need to estimate income, since prior-prior year income will be used on the FAFSA Admission Application timeline will match Financial Aid Deadlines 2017-18 FAFSA can be completed/submitted as early as October 1st, 2017 using 2015 federal tax data Financial aid packages will be developed & delivered earlier Families will have more time to prepare for meeting college costs EARLY FAFSA

EXTENSION OF FEDERAL PERKINS The Perkins loan program is scheduled to end after September 2017 if Congress doesn’t take action. Two year extension granted in December 2015. If this program is eliminated, future students will not be able to receive these loans that have favorable interest rates, repayment requirements, and loan forgiveness options. EXTENSION OF FEDERAL PERKINS

Maximum Pell Grant award increased by $40 in 2016-17 The Federal Pell Grant program is critical, especially for students and families who rely on need based aid Possible Year around Pell option to provide flexibility to accelerate degree competition. FEDERAL PELL GRANT

BORROWER DEFENSE REGULATIONS These final regulations put in place a borrower defense process that is easier to understand and more accessible for borrowers. Facilitates collection and review of evidence for resolving claims; and that ensures claims are processed more efficiently, transparently, and fairly. The regulations replace a complicated, uneven, and burdensome standard for assessing claims that is based on the application of various State laws with a new Federal standard that will make relief available when there is: A breach of contractual promises between a school and its students; State or Federal court judgments against a school related to the loan or the educational services for which the loan was made; or A substantial misrepresentation by the school about the nature of the educational program, the nature of financial charges, or the employability of graduates. BORROWER DEFENSE REGULATIONS

REAUTHORIZATION OF HEA Campus Based Aid Programs SEOG, PERKINS Loan, Federal Work Study Competency-based education Flexible Option program Streamline Administrative Burden for Institutions Comprehensive Approach to Title IV Aid Reforms REAUTHORIZATION OF HEA

STATE ISSUES State Need Grant State Work Study Tuition/Aid Allocation Timeline STATE ISSUES

The State Need Grant accounted for 90 percent of all state aid provided to college students in Washington in 2013-14. More than a third of students statewide receive Federal Pell Grant and/or State Need Grant Nearly 1 in 3 students that were State Need Grant eligible went unserved state wide. Eligible middle-income students are less likely to receive the grant due to a lack of state funds. Services the needs of non traditional students like veterans and students with families STATE NEED GRANT

State Work Study allows students to develop valuable experience and career connections while employers have access to a well-educated workforce at a reduced-cost. Research indicates that students who work between 10 and 19 hours per week tend to persist in their degree programs at higher rates than other financially needy students. Students and employer demand for State Work Study exceeded program resources. STATE WORK STUDY

TUITION/FUNDING POLICY TIMELINE Goal of early FAFSA/WASFA to aligning aid resources and cost Delays in the state budget process create uncertainty for institutions, students, and parents. Institutions to provide earlier financial aid awards for students and families Washington public institutions to compete nationally for Washington Students. TUITION/FUNDING POLICY TIMELINE

INSTITUTIONAL DEBT REDUCTION Tuition Payment Plans Expanded Scholarship Search More Private Scholarship Support Financial literacy Resources understand loans, debt, repayment rules and options. Communications on cumulative debt Comprehensive career counseling Some majors more costly than others Increased grant initiatives INSTITUTIONAL DEBT REDUCTION

TIPS FOR FINANCIAL AID STUDENTS Stay informed on opportunities, deadlines, and announcements Apply for scholarships! Budget - make a plan and stick to it! Borrow what you need - understand loans, debt, your repayment rules and options. Don’t forget to factor in your career choice. Some majors more costly than others Appeals and Changes in Financial Situation TIPS FOR FINANCIAL AID STUDENTS