1. Admissions Administrators Legislative Update Curt Gaume Director of Financial Aid Canisius College

2. Topics for Discussion Where have Been Where have Been Need Analysis ChangesNeed Analysis Changes Loan IncreasesLoan Increases ACG/SMART GrantsACG/SMART Grants Where are we Going Where are we Going 2008-2009 FAFSA2008-2009 FAFSA Budget ReconciliationBudget Reconciliation Reauthorization of HEAReauthorization of HEA

3. Where Have We Been

4. Need Analysis Changes Increase Student Income Protection Allowance Increase Student Income Protection Allowance Reduce the % of student contibution from assets from 35% to 20% Reduce the % of student contibution from assets from 35% to 20% Elimination of Family Owned & Controlled Business from asset considerations Elimination of Family Owned & Controlled Business from asset considerations

5. Loan Limit Increases 1 st Year/2 nd Year Loan Limits Increase 1 st Year/2 nd Year Loan Limits Increase 1 st Year - $2,615 to $3,5001 st Year - $2,615 to $3,500 2 nd Year - $3,500 to $4,5002 nd Year - $3,500 to $4,500 No Change to the Aggregate Loan Limit No Change to the Aggregate Loan Limit Fixed Interest vs. Variable Rate Fixed Interest vs. Variable Rate 6.8% for Loans disbursed after 7/1/066.8% for Loans disbursed after 7/1/06

6. Aggregate Loan Limits LoanLimits Aggregate Limits 1 st Year $3,500$3,500 2 nd Year $4,500$4,500 3 rd Year $5,500$5,500 4 th Year $5,500$5,500 5 th Year $5,500$4,000 Total$24,500$23,000

7. ACG/SMART Common Student Eligibility U.S. Citizen Only – Eligible Non-Citizens Do Not Qualify Pell Grant Recipient During Same Award Year Full-time Enrollment for Payment Period Enrolled in Degree Program Progression by Student Academic Year Only One Scheduled Award for Each Academic Year

8. ACG National SMART 1 st & 2 nd academic years of a two or four year degree program. 3 rd & 4 th academic years of a four year degree program. Requires completion of rigorous high school program of study. Requires student to be in a designated major. 1 st Academic Year- $ 750 2 nd Academic Year- $1300 3 rd Academic Year- $4000 4 th Academic Year- $4,000 GPA of at least 3.0 as of the end of 1 st academic year only. GPA of at least 3.0 at each disbursement. ACG/SMART

9. Rigorous H.S. Program Graduate from H.S. with an Advanced or Honors Diploma (i.e.. Regents with Honors) Graduate from H.S. with an Advanced or Honors Diploma (i.e.. Regents with Honors) Minimum of two AP or IB courses with scores of 3 for AP & 4 for IB. Minimum of two AP or IB courses with scores of 3 for AP & 4 for IB. Passing Grades in the following courses: Passing Grades in the following courses: 4 Years of English4 Years of English 3 Years of Math (Algebra I and higher)3 Years of Math (Algebra I and higher) 3 Years of Science (2 must be Biology, Chemistry or Physics)3 Years of Science (2 must be Biology, Chemistry or Physics) 3 years of social studies3 years of social studies 1 year of a foreign language1 year of a foreign language

10. Negotiated Rulemaking ACG/SMART  Rigorous secondary school programs. Generally same as current.Generally same as current.  Mandatory institutional participation.  No eligibility of certificate programs.  Use of grade point average  Academic year progression  Determination of eligible SMART majors

11. Where Are We Going

12. FAFSA 2008-2009 Color is Orange/Purple (New Color) Color is Orange/Purple (New Color) Question 21 Selective Service Question 21 Selective Service Applicant must bubble either male/femaleApplicant must bubble either male/female Question 27 High School Graduation Requirement Question 27 High School Graduation Requirement Must answer H.S. Diploma, GED, Home Schooled, or OtherMust answer H.S. Diploma, GED, Home Schooled, or Other

13. FAFSA 2008-2009 (Cont.) Instructional Notes Instructional Notes Question 16 - Student’s Marital Status: Tells student that if the marital status changes after filing it can’t be changedQuestion 16 - Student’s Marital Status: Tells student that if the marital status changes after filing it can’t be changed Questions 71-75 & 92-96 – Federal Means Test – Explains to filer that by answering ‘Yes” will not reduce eligibility for student aid or federal benefitsQuestions 71-75 & 92-96 – Federal Means Test – Explains to filer that by answering ‘Yes” will not reduce eligibility for student aid or federal benefits

14. Budget Reconciliation First Steps House Education and Labor Committee House Education and Labor Committee Chair – Congressman MillerChair – Congressman Miller College Cost Reduction Act (H.R. 2669)College Cost Reduction Act (H.R. 2669) Senate Committee on Health, Education, Labor, & Pensions Senate Committee on Health, Education, Labor, & Pensions Chair – Senator KennedyChair – Senator Kennedy Higher Education Access Act of 2007Higher Education Access Act of 2007

15. Budget Reconciliation Provisions – Pell Grants Senate Senate $5,400 for academic year 2008-2009$5,400 for academic year 2008-2009 $5,700 for academic year 2009-2010$5,700 for academic year 2009-2010 $6,000 for academic year 2010-2011$6,000 for academic year 2010-2011 $6,300 for academic year 2011-2112$6,300 for academic year 2011-2112 House House Increase awards by at least $500 over the next five years to a maximum of $$5,200Increase awards by at least $500 over the next five years to a maximum of $$5,200

16. Budget Reconciliation Provisions – Student Loans House House Increase Annual Loan Limit – from $5,500 to $7,500 for 3 rd,4 th, & 5 th yearsIncrease Annual Loan Limit – from $5,500 to $7,500 for 3 rd,4 th, & 5 th years Increase Aggregate loan limits from $23,000 to $30,500Increase Aggregate loan limits from $23,000 to $30,500 Reduce fixed interest rtae from 6.8% in 2007-2008 to 3.4% in 2012-2103Reduce fixed interest rtae from 6.8% in 2007-2008 to 3.4% in 2012-2103

17. Budget Reconciliation Provisions – Student Loans Senate Senate Economic hardship deferments – extended from three to six yearsEconomic hardship deferments – extended from three to six years Increase minimum requirements for hardship deferments from 100% of the poverty line to 150%Increase minimum requirements for hardship deferments from 100% of the poverty line to 150% Income-based repayment plan – monthly repayment equal to 15% of average gross incomeIncome-based repayment plan – monthly repayment equal to 15% of average gross income Forgiveness of loans after 25 years of repayment (hardship deferments would be excluded from 25 year time period.Forgiveness of loans after 25 years of repayment (hardship deferments would be excluded from 25 year time period.

18. Budget Reconciliation Other Provisions Increase Auto-Zero EFC Threshold from $20,000 to $30,000 (H & S) Increase Auto-Zero EFC Threshold from $20,000 to $30,000 (H & S) Worksheet A would no longer be considered as untaxed income (H) Worksheet A would no longer be considered as untaxed income (H) 529 Plans, Prepaid tuition plans, and Coverdell Education Savings Accounts would be exempt from need analysis (H) 529 Plans, Prepaid tuition plans, and Coverdell Education Savings Accounts would be exempt from need analysis (H) Eliminate the drug question from the FAFSA (S) Eliminate the drug question from the FAFSA (S)

19. Reauthorization of HEA Senate Only Grant Increases (Pell Grant & SEOG) Grant Increases (Pell Grant & SEOG) Simplifying the Student Aid Process Simplifying the Student Aid Process Create an EZ FAFSACreate an EZ FAFSA Phase-out of the paper FAFSAPhase-out of the paper FAFSA Prohibition Against Inducements Prohibition Against Inducements Annual reporting to the DEAnnual reporting to the DE Additional Disclosures to Students Additional Disclosures to Students Direct-to-Consumer Marketing Regulated Direct-to-Consumer Marketing Regulated