“Accessing College Through Comprehensive Early Outreach, State Partnerships, and Simplification Act”

Do you need to be concerned with what this Act would require if enacted?

Yes! Your State will be impacted by this Act and the potential simplification of the FAFSA!

Yes! Your state may be impacted by the Grants for Access and Persistence (GAP) component.

That’s what we’re here to discuss! How? That’s what we’re here to discuss!

FAFSA Related

Set auto-zero at $25,000 Currently at $15,000 AGI/income earned from work If eligible, skip questions: student and parent income and exemptions student and parent worksheets A, B & C student and parent assets. More students eligible for maximum Pell Impact on state programs?

Adjust auto-zero annually Use the consumer price index to determine the new threshold. Impact on state programs?

Expand simplified needs test Currently set at $50,000 AGI and filed or were eligible to file a 1040A or 1040EZ. If eligible, do not report assets.

Expand simplified needs test Have AGI of $50,000 or less Have participated in federal means-tested programs in last 24 months such as: Free/Reduced Price Lunch Programs TANF Food Stamps Impact on state programs?

EFC changes How will your state be affected by EFC changes? Can this be quantified?

Phase out full paper FAFSA Implement paper FAFSA-EZ for auto-zero eligible students. Phase out full paper form within five years Printable full FAFSA available on line Encourages FOTW usage Include state data elements only if state accepts auto zero/SNT. Impact in your state?

Reduce FOTW data elements Make FOTW smarter. Take into consideration state needs for data only if state uses auto zero/SNT. Collect information annually from states on their need for data and acceptance of auto zero/SNT. Impact on your state?

State Data elements “The Secretary shall include on the forms developed under this subsection, such State-specific nonfinancial data items as the Secretary determines are necessary to meet State requirements for need-based State aid. Such items shall be selected in consultation with States…..” Comments?

Notice to Secretary States must annually notify the Secretary if they are unable to permit applicants to file the FAFSA-EZ or simplified electronic form. Must indicate if law or policy and estimate of program costs if EZ use permitted. Notification of State-specific nonfinancial data also required.

Earlier Financial Aid Applications Allow Fall filing with estimates Consider allowing filing in the previous spring with estimates. In either case, provide early estimate of aid eligibility with final eligibility only after taxes are available and an update of FAFSA data is filed. Impact on your state?

Reduce FAFSA Data Elements Current possibilities Earned Income Tax Credit additional child tax credit TANF untaxed Social Security Benefits foreign income exclusion credit for federal tax on special fuels

Reduce FAFSA Data Elements Drug Conviction Selective Service Registration Need statutory change Impact on your state?

Protect more student earnings Increase Income Protection Allowance (IPA) by $1,000. Lower assessment rate to 40% for dependents and independent with dependents. Impact on your state?

Eliminate state/local tax allowance Maintain if IPA can’t be adjusted Phase in periodic updates Impact on your state?

Other things to think about What is the cost impact of these proposals? If the auto zero is implemented, how much in assets will be ignored in the aggregate and by states? What is the impact of using prior prior year data?

Other things to think about What information is available about the reliability/auditability of using other federal means tested programs for the SNT proposal?

Grants for Access and Persistence (GAP)

Early Awareness Activities General aid and academic information for middle school students Estimates of financial aid eligibility for high school students

Allotments to States Federal share will not exceed 66.66% 50% if partnership with degree granting schools whose combined FT enrollment is less than a majority of all students 57% if philanthropic organizations and private corporations are added 66.66% if majority of students, philanthropic organizations and private corporations are included.

Matching Funds Must come from state, institutional, philanthropic or private funds. Must supplement, not supplant, federal and nonfederal funds How would your state handle this requirement?

Additional requirements Provide early intervention, mentoring or outreach programs Provide administrative organizational structure Assurance that state can identify eligible low-income students and award state grant aid (e.g., use of auto zero)

Additional requirements Provide notification that grants are LEAP and funded by the federal government and the state Make determinations and early notifications of assistance Complete annual report

Required notices Notify low income students annually of their potential eligibility for student financial assistance, including funds under GAP Include information about intervention, mentoring or outreach programs available information that participation in such programs enhances access to GAP funds

Required notices Participation in other federal means-tested programs may indicate GAP eligibility Nonbinding estimate of financial aid, including GAP funds Any state-specific requirements Instructions on how to apply for GAP funds

Student Eligibility Zero EFC or comparable approved state criteria Participation in outreach, mentoring, early intervention Qualified for a free lunch, or at the state’s discretion a reduced price lunch Qualifies for maximum undergrad award Receives GAP award

Administrative Cost Allowance Not more than 3.5% of funds made available annually through the allotment How will the ACA be calculated and when will states receive these funds?

Other things to think about Is student pre-college tracking necessary? How will start up work? Will states be able to maintain funds for when the student reaches college age? Does the required LEAP notification create concerns (e.g., application of Title IV refund policy)?

Other things to think about How will the state report on the partnership’s progress in meeting the law? Can the multiple formulas in GAP be simplified?

Other things to think about Must renewal students have financial need? How will states provide assurances of matching funds years before these are needed?

Thank you for your participation and continued input on these critical issues!