1. NCHER Legislative Conference September 26, 2013

2. American Dream 2.0 Report and Coalition Consensus on the problem: Aid should be more efficient and effective Make aid simpler and more transparent Spur innovation to lower costs Ask institutions, states and students to share responsibility for completion

3. Doing Better for More Students: Technical Panel White Paper Simplify Financial Aid – One Grant, One Loan, One Tax Benefit Share Responsibility – Incentives for On-Time Completion Innovation and Experimentation – Invest in demonstration programs and research

4. A Simpler More Effective System One Grant Program – Import IRS data, include look-up table One Loan Program – One loan with one set of terms – Automatic IBR – Market-based interest rate One Tax Benefit – Consolidate household tuition and fee credits into a Lifetime Learning Credit

5. New features in the Comprehensive Single Loan Program help mitigate potential new risks to borrowers or taxpayers, such as: Repayment schedule assuring middle and higher- income earners pay back loans faster New institutional eligibility to reduce number of borrowers at high-risk institutions Eliminate interest-free benefits and routine forebearance Safety net of more generous income-based repayment terms Ability of institutions to restrict loan limits Easier counseling with one loan program

6. Good borrowing decisions by students would continue to be critical Local counseling to insure best match, improve odds of completion and repayment Independent 3rd party maximizes the public benefit of new single IBR loan program Save the government defaulted loan expenses

7. Pell-Ready Grant Proposal Pell-Ready Purpose: Test if it is possible to finance remediation in a more cost- effective way Competency-based remediation $1,800 grant for low-income students to purchase remediation from a provider States chosen by the Department to participate through competitive grant process

8. Performance Contract Demonstration Department could enter into performance based contracts with 10 states, systems of higher education, or large universities or consortia Department would provide multiple years of the federal aid allocation the entity would have received (averages adjusted for increases in cost) Grantee would agree to graduate more Pell students in less time – In return, the Department would grant flexibility – Rigorous evaluation and maintenance of access standards attached

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