1. State Education Assistance Authority
State Update
Elizabeth McDuffie
State Education Assistance Authority
November 8, 2017

2. Today’s Topics State of Aid in NC Legislation Update Outreach
Proposed federal tax changes
State Grants for
New State Loan Program
Red because I need to edit once done.

3. NC State Grants – Undergraduates 2000-01 to 2017-18 (est)

4. Average Debt at Graduation
Source: Project on Student Debt

5. Forgivable Education Loans
Forgivable Education Loans for Service (FELS)
Disbursed ~ $24 million in 15-16
Disbursed ~ $21.5 million in 16-17
Anticipate ~ $19 million in 17-18
Eligible fields of study—fields experiencing critical shortages of workers
Allied Health
Medicine/Dentistry
Nursing
Teaching in shortage fields

6. NC FAFSA Trend As of 11/23/xx

8. 2017 State Legislation

9. Legislation Tuition Grants for NCSSM Graduates
Must enroll at a UNC institution as a full-time student for the academic year
Tuition only (not fees)
Grant must be reduced if total aid exceeds COA
Currently, grant authorized for the year only
SEAA will work with NCSSM to capture the students who intend to enroll at a UNC
SEAA will rely on UNC campuses to provide information about tuition costs for each student
$1.5m appropriated—360 possible graduates…

10. NC Teaching Fellows Redux
Recruit, prepare and support students for preparation as highly effective teachers
Administered jointly by Teaching Fellows Commission and the State Education Assistance Authority
Director of Program-- Sara Ulm, UNC General Administration
Program revived with:
Broader student eligibility
1) Incoming freshmen, 2) cc transfer students, 3) college students with credits who decide to enter education field, & 4) individuals seeking licensure only

11. NC Teaching Fellows (cont)
Fewer recipients – Anticipate ~200 to be selected
Limited to five participating colleges/universities to be identified by 11/ 15 by the Teaching Fellows Commission
Narrower licensure fields—Only STEM and Special Education
DPI must submit list of licensure shortage areas
Increased award value of up to $8,250/year for tuition/fees, books
Freshmen funded for up to 4 years
Transfer students funded for up to 3 years
Remaining students funded for up to 2 years

12. NC Teaching Fellows (cont)
Different service requirement from original program
One year of service in a low-performing school for each year of funding OR
Two years of service for each year of funding in other public schools
Applications available --December 1, 2017
Recipients to be notified by April 1, 2018

13. Outreach SEAA School counselor advisory group
Ceasing the summer counselor internship program in college financial aid offices
Replace internship program with intensive training for counselors about financial aid
Finish the FAFSA and other FAFSA completion activities

14. FINISH the FAFSA!
SEAA led initiative providing information to high school counselors about the FAFSA status of their seniors
Using tools available on CFNC.org, counselors can see which of their high school seniors have completed the FAFSA and prod non-completers
results: Participating high schools had 64% of their students complete the FAFSA compared to 57% at non-participating high schools
Over 300 high schools participating for the cycle

15. CFNC.org/fafsaday
Information to enable students to contact aid offices for assistance

16. Federal Tax Proposals

17. H. R. 1—Tax Cut and Jobs Act Education Impact
Tax credit for qualified expenses
Repeal the Hope Tax Credit and Lifetime Learning tax Credit
Expand American Opportunity Tax Credit
Currently limited to $2,500 year for first 4 years
Calculated at 100% of first $2,000 and 25% of next $2,000 of qualified expenses
Add 5th year at one-half value--$1,250

18. Proposed Tax changes (cont)
No new contributions to Coverdell Education Savings Accounts
Currently earnings are tax-exempt and can be used for education expenses in K-12 as well as higher education
Proposal:
Option to roll accounts to 529 programs AND
Modify 529 programs to allow up to $10,000/annually to spend on private K12

19. Proposed Tax changes (cont)
Repeal:
Student loan interest payment deduction
Tuition and Related expense deduction ($4,000 maximum)
Interest on savings bonds when used for higher education expenses
Tuition reductions provided by institution to employees, spouses, dependents
Employer-provided education assistance $5,250/year

20. Grants Update and Timeline

21. Pell Grant Possibilities
If Congress level-funds the program: Pell Schedules = Pell Schedules
If Congress provides an increase in funding, the Pell Schedules would reflect that increase
Senate proposed $100 increase to the maximum Pell Grant award
The House version did not include increase
Source: NASFAA Today’s News, Oct 23, 2017

22. Grants for 2018-19 State grants are linked to Pell Payment Schedule
Continuing Resolution for budget passed in September –pushed budget deadline to December
In December, pass budget or delay to 2018
Master ED calendar requires publishing Pell Payment Schedules by February 1

23. State Grant Schedule
December 1: Deadline for certifying state grants for the fall semester
Anticipate mid-January release of payment schedules
If you choose to estimate grants, may use schedules as a guide
Remember that if the Pell Grant increase occurs ~ $100, the state grant may be reduced by $100.

24. New Loan Program
for
Students and Parents

25. Student Assist Loan Parent Assist Loan
Fixed rate loans for students and parents with North Carolina nexus
NC resident enrolling in out-of-state college
Out-of-state resident enrolling in a NC institution
Credit-based loan– If student does not have credit or credit score is too low, will need a co-signer with eligible credit score
Loan will provide an option to PLUS loan for parents and graduate students
Administered by College Foundation, Inc.

26. NCSEAA and CFI Unique relationship existing for decades
CFI was established before NCSEAA
College Foundation, Inc is a 509(a)(3) nonprofit organization – designated as a supporting organization within IRS code.
The “supporting organization” designation recognizes that CFI’s operations lessen the burdens of government by administering centralized grant programs, loans, and related specialized services for the State’s financial aid programs and the State’s 529 plan.

27. Questions?