1. 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
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2. 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

3. 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

4. FINANCIAL AID PACKAGE MAKEUP

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

6. 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 Academic Year.
EARLY FAFSA

7. 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
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

8. EXTENSION OF FEDERAL PERKINS
The Perkins loan program is scheduled to end after September 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

9. 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

10. 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

11. 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

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

13. The State Need Grant accounted for 90 percent of all state aid provided to college students in Washington in
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

14. 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

15. 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

16. 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

17. 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