Title: College Cost Reduction and Access Act CCRAA Draft Document as of 12307 Does not include ED guidance
1College Cost Reduction and Access Act
(CCRAA)Draft Document as of 12-3-07Does not
include ED guidance
- Prepared by the NCHELP Program Regulations
Committee - This presentation provides a summary of the
changes contained in the College Cost Reduction
and Access Act (CCRAA). Readers should refer to
the detail of the law and sub-regulatory guidance
from the U.S. Department of Education in
determining all relevant issues.
2Introduction
- The CCRAA was passed by the House and Senate on
Friday, September 7, 2007. - The bill was signed by President Bush on
September 27, 2007.
3Effective Dates and Triggers
- In general, the changes made by CCRAA have an
effective date of October 1, 2007. - However, certain changes have different effective
dates. - Many of the changes are effective in the future.
4Effective Dates and Triggers
- Knowing an effective date is not enough in many
cases. - To properly implement a change, you also need to
know the trigger event. - We are waiting on the DCL from the Department.
5School Issues
6Professional Judgment
- The examples of circumstances under which an FAA
may exercise professional judgment are expanded
to include - Unemployment of an independent student
- Change in housing that results in homelessness
as defined by the McKinney-Vento Homeless
Assistance Act - A family member who is a dislocated worker
- Trigger Event date
- ??? Event effective 7/1/2007 (2009 2010 award
year)
7Professional Judgment
- Allows an FAA to grant a dependency override for
unusual circumstances (e.g., abandonment) for
mid-year transfer students based on the
documented determination of another FAA during
the same award year. - Trigger Event date
- ??? Event effective 7/1/2007 (2009 2010 award
year) - 479A(a)
8TEACH Grants
- Program Established
- Effective 7/1/2008, and subject to regulations
promulgated by ED, a new TEACH Grant of up to
4,000 per academic year is available for
undergrad and post-baccalaureate students who are
teacher candidates, or for grad students who are
current or prospective teachers. - 420M(a)
9TEACH Grants
- Definitions
- Eligible Institution means an institution of
higher education as defined in section 102, that
the Secretary determines - provides high quality teacher preparation and
professional development services, including
extensive clinical experience as a part of
pre-service preparation - is financially sound
10TEACH Grants
- Provides pedagogical coursework, or assistance in
the provision of such coursework, including the
monitoring of student performance, and format
instruction related to the theory and practices
of teaching and - Provides supervision and support services to
teachers, or assistance in the provision of such
services, including mentoring focused on
developing effective teaching skills and
strategies.
11TEACH Grants
- Post-baccalaureate
- Program of instruction for individuals who have
completed a baccalaureate degree, that does not
lead to a graduate degree, and that consists of
courses required by a State in order for a
teacher candidate to receive a professional
certification or licensing credential that is
required for employment as a teacher in an
elementary or secondary school in that State,
except that school term shall not include any
program of instruction offered by an eligible
institution that offers a baccalaureate degree in
education.
12TEACH Grants
- Teacher Candidate
- Student or teacher described in subparagraph (A)
or (B) of section 420N(a)(2) - 420L
13TEACH Grants
- No less than 85 percent of any funds requested by
a eligible institution to pay TEACH Grants will
be advanced prior to the start of each payment
period until ED establishes regulations, subject
to public comment, for a disbursement system. - 420M(b)(1)
- Grant amounts may be paid directly to qualifying
students attending eligible institutions that
elect not to participate in EDs disbursement
system. - 420M(b)(2)
14TEACH Grants
- Grant amounts paid to a eligible institution may
be credited to the students account to pay
tuition, fees, room and board, if applicable, and
for other services or goods with the students
authorization. - 420M(b)(3)
- Grants for students enrolled less than full time
are ratably reduced in accordance with a schedule
published by ED. - 402M(c)(1)
15TEACH Grants
- An eligible teacher candidate may receive up to
4,000 for each academic year of attendance. - 420M(a)(1)
- The sum of a students annual TEACH Grant award
and other aid cannot exceed the cost of
attendance. - 402M(c)(2)
- Maximum aggregate TEACH Grant eligibility for an
undergraduate student is 16,000. A graduate
student is eligible for an additional, maximum
aggregate amount of 8,000. - 420M(d)(1)(B) 402M(d)(2)
16TEACH Grants
- Student Eligibility Undergraduate and
Post-Baccalaureate Program - Grant recipients must attend an eligible
institution determined by ED to have high quality
teacher preparation and development services. - Applicants must be Title IV eligible and have a
minimum 3.25 GPA (for first-year undergraduates,
GPA is based on the students cumulative
secondary eligible institution GPA), or score at
least in the 75th percentile in an undergraduate,
post-baccalaureate, or graduate admissions test. - 420N(a)(2)(A)
17TEACH Grants
- Student Eligibility Graduate Program
- Grant recipients must attend an eligible
institution and submit an application. - A graduate student must be a current teacher or a
retiree from another occupation with expertise in
a teacher shortage area or the applicant must be
or must have been a teacher using a high quality
alternative certification such as Teach for
America to get certified. - 420N(a)(2)(B)
18TEACH Grants
- Eligible coursework includes noncredit, remedial
and ESL courses that the eligible institution
determines are necessary, and study-abroad
programs. - 420M(d)(3)
19TEACH Grants
- Agreement to Serve
- TEACH Grant recipients must serve as a full-time
teacher in a low-income school for a total of at
least 4 academic years within 8 years after
completing the program for which the recipient
received a TEACH Grant.
20TEACH Grants
- A TEACH Grant recipient must be a highly
qualified teacher of math, science, foreign
language, bilingual education, special education,
or a reading specialist, or teach in another
high-need field as determined by the federal
government, a state government, or a local
educational agency, and approved by ED. - 420N(b)(1)(A)-(C)
21TEACH Grants
- Grant recipients must submit evidence of
employment (a certification by the chief
administrative officer of the school) upon
completion of each year of teaching service. - 420N(b)(1)(D)
- A TEACH Grant recipient who fails to complete any
of the teaching service requirements is required
to repay the grant amount, with interest, as a
Direct Loan. - 420N(c)
22College Access Challenge Grants
- Creates a new program that provides federal
matching funds to States (or philanthropic
organizations if the State does not apply or
cannot meet the matching funds requirement) for
the purpose of providing any of the following - Information about the benefits of postsecondary
education - Postsecondary education opportunities
- Planning for eligible institution
- Career preparation
23College Access Challenge Grants
- Information on financing an eligible institution
education - Financial literacy and debt management
- Outreach for students who are at risk of not
enrolling in an eligible institution - Assistance in completing the FAFSA
- Need-based grant aid for eligible institution
students - Professional development for high school
counselors - Student loan cancellation or repayment, or
interest rate reductions, for borrowers employed
in a high-need geographical area or a high-need
profession in a State - 771(f)(1)
24College Access Challenge Grants
- The federal share of the grant for a fiscal year
is 2/3rds of the cost of activities and services
carried out under the grant. No more than 6 of
the federal share may be used for administrative
purposes. - The non-federal share (1/3rd) may be cash or
in-kind and may be provided from State resources,
contributions from private organizations, or
both. The federal share will be reduced
proportionately to any amount of the non-federal
share that the State fails to provide. - 771(b)(2)
25 College Access Challenge Grants
- The minimum grant amount for a fiscal year is not
less than .5 of the total 66 million
appropriated for each year. - The State agency with jurisdiction over higher
education, or another agency designated by the
Governor, must submit an application to ED that
includes descriptions of - The grantees capacity to administer the program
- The grantees plan for using the funds
- How the grantee will provide or coordinate the
provision of the non-federal share - The structure in place to administer activities
and services, or the plan to develop that
administrative capacity - 771(d)(2)
26College Access Challenge Grants
- A grantee receiving a College Access Challenge
Grant will be required to prepare and submit an
annual report to ED on the activities and
services provided and on the implementation of
such activities and services. The report must
include the following components - A listing of each activity or service that was
provided to students and families over the course
of the year, - The cost of providing each activity or service,
- The number, and percentage, if feasible and
applicable, of students who received each
activity or service and - The total contributions from private
organizations included in the grantees
non-Federal share for the fiscal year. - 771(h)
27College Access Challenge Grants
- Funding
- 66 million is provided to fund this program for
federal fiscal year 2008 and 2009 only - Trigger Event Date
- ????????
- 771(a)
28Borrower Issues
29Interest Rates
- FFEL interest rate decrease
- Subsidized Stafford ONLY
- Undergraduates ONLY
- First disbursed on or after the respective July 1
- 7/01/08 through 6/30/09 6.00
- 7/01/09 through 6/30/10 5.60
- 7/01/10 through 6/30/11 4.50
- 7/01/11 through 6/30/12 3.40
- Returns to current rate of 6.8 as of 7/1/2012
- 427A(1)
30Loan Forgiveness for Public Service Employees (DL)
- ED will cancel the balance of interest and
principal outstanding at the end of the 10- year
period on any eligible Direct loan (Stafford
Subsidized Unsubsidized, PLUS and Consolidation
loan) - That is not in default
- Borrower must make 120 monthly payments on any
Direct loan after 10/1/07 - 455(m)
31Loan Forgiveness for Public Service Employees (DL)
- The borrower must make the monthly payments under
income-based, standard or income contingent
repayment plan - Additionally, the borrower
- Must be employed in a public service job at the
time of the cancellation, AND - Must have been employed in a public service job
during the period in which each of the 120
payments were made. - 455(m)
32Loan Forgiveness for Public Service Employees (DL)
- Definition of Public Service Job
- A full-time job in public emergency management,
government, military, public safety, public law
enforcement, public health, public education,
public early childhood education, public child
care, social work in a public child or family
service agency, public services for individuals
with disabilities, public services for the
elderly, public interest legal services
(including prosecution or public defense), public
library services, public school library sciences,
or other public school-based services or teaching
as a full-time faculty member of a Tribal
eligible institution or university. - 455(m)(3)(B)
33Loan Forgiveness for Public Service Employees (DL)
- Trigger event date
- The 120 payments must be made after 10/1/2007
- 455(e)(7) and bill adds new Sec. 455(m) and 428C
changes were made in Sec 203 of the bill
34Grad PLUS Eligibility for Income-Contingent
Repayment
- Grad PLUS loans are now eligible for
Income-Contingent Repayment - Trigger event date
- Requests received on or after 7/1/2009
- 455(d)(1)(D)
35Income Based Repayment
- A borrower of federal loan(s) (except parent PLUS
loans or consolidation loans used to pay parent
PLUS loans) regardless of the disbursement dates
of the loans with a Partial Financial Hardship
(PFH) (payments exceed the 15 threshold
described below) shall make payments that total
only 15 of the result of AGI minus 150 of the
poverty line for the family size. - For subsidized loans interest will be paid by
ED for the first three years. - Interest will be capitalized
- At the end of election for income-based
repayment, or - When the borrower begins making payments under
standard repayment schedule.
36Income Based Repayment
- Unpaid principal is deferred. Payment period can
exceed 10 years. - Holder of such loan shall apply a borrowers
payment first to interest, then fees, then
principal - A borrower repaying a FFELP or Direct loan under
income-based repayment may change to a standard
repayment plan at any time payment period can
exceed 10 years so new payment does not exceed
normal standard repayment amount.
37Income Based Repayment
- ED will repay or cancel any outstanding balance
of a Stafford or DL borrower (except parent PLUS
loans or consolidation loans used to pay parent
PLUS loans) qualifying under this section after
25 years if the borrower had made monthly
payments under a regular or reduced repayment
plan or was in economic hardship deferment - Special Allowance is calculated on the principal
balance on the loan and any accrued interest
unpaid by the borrower. - Borrower must requalify each year.
38Income-Based Repayment
- Trigger event date
- No trigger event, date 7/1/2009
- 493C
39Consolidation Eligibility Public Service Loan
Forgiveness
- A borrower is eligible to consolidate into Direct
Lending to participate in the public service loan
forgiveness program. - Trigger event date
- Consolidation application received on or after
7/1/2008 - 428C(b)(5)
40Consolidation Eligibility Income Based Repayment
- A borrower is eligible to consolidate into Direct
Lending if the borrower is unable to obtain a
consolidation loan from a lender with
income-based repayment terms acceptable to the
borrower from such a lender. - Trigger event date
- Consolidation application received on or after
7/1/2009 - 428(c)(b)(5)
41Re-Consolidation Public Service Loan Forgiveness
- An individual may obtain a subsequent
consolidation loan under the Direct Loan program
if the borrower wishes - To obtain an income contingent repayment plan and
only if the loan has been submitted for default
aversion, or - To participate in the public service loan
forgiveness program. - Trigger event date
- Consolidation application received on or after
7/1/2008 - 482C(a)(3)(B)(i)(V) 455(g)
42Re-Consolidation Income-Based Repayment and
Default
- An individual may obtain a subsequent
consolidation loan under the Direct Loan program
if the borrower wishes - To obtain an income-based repayment plan and only
if the loan has been submitted for default
aversion or is already in default. - Trigger event date
- Consolidation application received on or after
7/1/2009 - 428C(a)(3)(B)(i)(V) 455(g)
43Definition of Economic Hardship
- Definition changes from 100 of the poverty line
for a family of two to 150 of the poverty line
applicable to the borrowers family size. - Eliminates the debt burden eligibility criteria
for full-time working borrowers (retained in the
Final Regulations issued on 11/1/07) - Trigger event date
- HRD requests granted on or after 10/1/2007
- 435(o)
44Elimination of Debt Burden Criterion for Economic
Hardship Deferment
- Eliminates criterion for determining economic
hardship that qualified a borrower if (s)he is
working full-time and has a federal educational
debt burden that equals or exceeds 20 of such
borrower's adjusted gross income, and the
difference between such borrower's AGI minus (-)
such burden is less than 220 of the greater of - the annual earnings of an individual earning the
minimum wage under section 6 of the Fair Labor
Standards Act of 1938 or - the income official poverty line (as defined by
OMB, and revised annually in accordance with
section 673(2) of the Community Services Block
Grant Act) applicable to a family of two.
45Military Deferment
- Eliminates 3-year limit. Adds 180 days after the
demobilization date as an eligible timeframe.
Applies to FFEL, DL and Perkins. - Eliminates loan origination trigger regarding
limitation to loans made on or after July 1,
2001. All borrowers will now be eligible. - Trigger event date
- MIL requests granted on or after 10/1/2007
- 428(b)(1)(M)(iii) 455(f)(2)(C)
464(c)(2)(A)(iii)
46Loan Deferment following Active Military Duty
- Allows borrowers who are members of the National
Guard or other Armed Forces reserve (current or
retired members) and are called to active duty
while enrolled (or enrolled within 6 months of
the call to active duty) at an eligible
institution to defer their loan for 13 months
after completing their military service. - 493D(a)
47Loan Deferment following Active Military Duty
- For purposes of this section, active duty is
defined as full-time duty in the active military
service of the U.S., including State duty for
members of the National Guard. This does not
include active duty for training or attendance at
a service school. - Trigger event date
- MIL requests granted on or after 10/1/2007
- 493D
48Lender Issues
49Reduction of Lender Special Allowance (SAP)
- Definition of Not-for-Profit Holder
- Eligible lender that requests a special allowance
payment under 438(b)(2)(I)(vi)(II) and is a - State, or a political subdivision, authority,
agency, or other instrumentality thereof,
(including entities describes in section 1.103-1
of 26 CFR or section 144(b) of the IRS code) - An entity described in IRS Code 150(d)(2) that
has not elected conversion under 150(d)(3) or
501(c)(3) or - A trustee acting as an eligible lender on behalf
of such a entity - 438(b)(2)(I)(vi)
50Reduction of Lender Special Allowance (SAP)
- Trigger Event Loans first disbursed on or after
10/1/2007 - Amount of Special Allowance Payments will be
based on whether or not the lender is a
not-for-profit holder - A loan qualified for the special allowance
payment that is sold to a for-profit entity or an
otherwise ineligible not-for-profit holder shall
thereafter be calculated under a different
payment method. - 438(b)(2)(I)
51Reduction of Lender Special Allowance (SAP)
- For loans held by an entity other than an
eligible not-for-profit holder - Stafford loans not in repayment 55 bp (basis
points) reduction. SAP reduced from 1.74 to
1.19 - Stafford loans in repayment 55 bp reduction.
SAP reduced from 2.34 to 1.79 - PLUS loans 85 bp reduction. SAP reduced from
2.64 to 1.79 - Consolidation loans 55 bp reduction. SAP
reduced from 2.64 to 2.09
52Reduction of Lender Special Allowance (SAP)
- For loans held by an eligible not-for-profit
holder - Stafford loans not in repayment 40 bp reduction.
SAP reduced from 1.74 to 1.34 - Stafford loans in repayment 40 bp reduction.
SAP reduced from 2.34 to 1.94 - PLUS loans 70 bp reduction. SAP reduced from
2.64 to 1.94 - Consolidation loans 40 bp reduction. SAP
reduced from 2.64 to 2.24
53Elimination of Exceptional Performance Status for
Lenders
- Strikes all provisions relating to Exceptional
Performer status for servicers but not lenders - Trigger event Claims filed on or after 10/1/07.
- Refiles will be paid on the guarantee percentage
as of the original file date. - 428I, 428(c)(1), and 438(b)(5)
54Reduction of Lender Insurance Percentage
- Reduces the lender insurance rate from 97 to
95. - Trigger event date
- Loans first disbursed on or after 10/1/2012
- 428(b)(1)
55Increased Loan Fees from Lenders
- Provides for an increase in the lender
origination fee from 0.50 to 1.0 of the
principal amount of the loan with respect to any
loan made under FFELP. - Trigger event date
- Loans first disbursed on or after 10/1/07
- 438(d)
56Pilot Program to Auction Part B (FFEL) Parent
PLUS loans
- Pilot program planning will start from date of
enactment 9/27/07 through 6/30/09 - 7/1/09 ED will arrange for the origination
disbursement of all Parent PLUS loans using the
auction method. Lender retains the ability to
originate the loans until student leaves the
school or graduates. - Trigger event
- Loans made on or after 7/1/2009 to a new parent
PLUS borrower - Comment As written, it appeared that the
student has to be a new borrower.
57Pilot Program to Auction Part B (FFEL) Parent
PLUS loans
- Auction held in each state with lenders competing
every 2 years - Allows lenders selected to originate all FFEL
Parent PLUS loans at all schools within a state - Bidding is confidential
58Pilot Program to Auction Part B (FFEL) Parent
PLUS loans
- Prequalification Process for the auction will
include - Borrower benefits and servicing requirements
- Assessment of lender capacity to participate
- Winning bids will be from the two lenders bidding
the lowest second lowest SAP
59Pilot Program to Auction Part B (FFEL) Parent
PLUS loans
- If no one wins in a State, parent will be served
by a lender of last resort - Lenders can apply to be the lender of last resort
- The Secretary will set the SAP for a lender of
last resort based on the lowest bid submitted in
that State and the lowest bid submitted in a
similar State
60Pilot Program to Auction Part B (FFEL) Parent
PLUS loans
- Guarantee against default is 99
- ED will not collect a loan fee on Parent PLUS
loans originated through the auction pilot program
61Pilot Program to Auction Part B (FFEL) Parent
PLUS loans
- Consolidation of loans in the auction process
- Borrower needs to notify lender under this
program of - Intent to consolidate with another lender
- Terms and conditions of that other lenders loan
- Borrower may consolidate with another lender only
if the auction lender does not agree to match the
terms conditions of the other lender within 10
days of notice
62Pilot Program to Auction Part B (FFEL) Parent
PLUS loans
- Addition of loans to consolidation
- Direct loans lender must match terms
conditions available to Direct Loan borrowers
within 10 days - Parent PLUS loans lender must match terms
conditions of lender offering loan within 10 days - SAP will be the lower of
- Weighted average excluding SAP on any Direct PLUS
loan included in consolidation - 3-month commercial paper rate plus 1.59
63Pilot Program to Auction Part B (FFEL) Parent
PLUS loans
- Addition of loans to consolidation
- FFEL Parent PLUS loans consolidated will not be
subject to the interest payment rebate fee - 499(a) and (b)
64Definition of Eligible Not-for-Profit Holder
- Eligible lender that requests a special allowance
payment under 438(b)(2)(I)(vi)(II) and is a - State, or a political subdivision, authority,
agency, or other instrumentality thereof,
(including entities describes in section 1.103-1
of 26 CFR or section 144(b) of the IRS code) - An entity described in IRS Code 150(d)(2) that
has not elected conversion under 150(d)(3) or
501(c)(3) or - A trustee acting as an eligible lender on behalf
of such a entity - Trigger event and date
- No trigger event, effective 10/1/07
- 435(p)(1)
65Definition of Eligible Not-for-Profit Holder
- An eligible lender shall not be an eligible
not-for-profit holder unless the lender was a
State, a political subdivision, authority,
agency, instrumentality, or other entity as
described above, or that was an eligible lender
trustee on the date of enactment. - 435(p)(2)
66Definition of Eligible Not-for-Profit Holder
- No eligible not-for-profit shall be owned or
controlled in whole or in part by a for-profit
entity. A not-for-profit lender is not
considered to be owned or controlled by a
for-profit entity if an eligible lender trustee
only holds the loan and does not receive any
benefits beyond reasonable and customary fees.
The not-for-profit on whose behalf the trustee is
acting will not be deemed owned or controlled by
a for profit as a result of granting security
interest in, or otherwise pledging as collateral,
loans or the income form a loan to secure a debt
obligation in the operation of the trustee
relationship. - 435(p)(2)
67Definition of Eligible Not-for-Profit Holder
- An eligible not-for-profit must have been in
operation and serving as an eligible lender on
the date of enactment. In order for a trustee to
be defined as an eligible not-for-profit lender,
it must be acting on behalf of such an eligible
lender. A State may waive this requirement for a
new eligible not-for-profit holder that the State
determines is necessary to fill a public purpose.
A State may not waive any of the requirements
related to trustees. - 435(p)(2)
68Definition of Eligible Not-for-Profit Holder
- A loan qualified for the special allowance
payment that is sold to a for-profit entity or an
otherwise ineligible not-for-profit holder shall
thereafter be calculated under a different
payment method. - 435(p)(3)
69Guaranty Agency Issues
70Guaranty Agency Collection Retention
- Reduces Guaranty Agency collection retention from
23 to 16 - Trigger event date
- Payments received on or after 10/1/2007
- 428(c)(6)(A)
71Account Maintenance Fees
- Reduces Account Maintenance Fee (AMF) paid to
guarantors from 0.10 to 0.06 - Trigger event date
- Payments received on or after 10/1/2007
- 458(b)
72Student Eligibility
73Dependency Status
- Independent student definition expanded to
include - Students who are orphans, in foster care or a
ward of court when 13 years of age or older - Students who are emancipated minors or in legal
guardianship as determined by a court of complete
jurisdiction in applicants state of legal
residence - Students verified as unaccompanied youth who are
homeless children or an unaccompanied youth who
is at risk of homelessness and is also
self-supporting.
74Dependency Status
- Trigger Event Date
- Award year 2009-2010
- 480(d)
75Expected Family Contribution (EFC)
- Income Protection Allowance
- Increases in the income protection allowances for
certain students. - Increases in the income protection allowances for
independent students with dependents other than a
spouse - Tables can be found in the bill
- Trigger Event Date
- ???? Event effective July 1 2009
- 475(g)(2)(D)
76Expected Family Contribution (EFC)
- Permits a dependent student or independent
student with dependents other than a spouse to
qualify for zero EFC if the dependent students
parents, or the independent student and spouse,
if applicable, have received benefits under a
means-tested Federal benefit program at some time
during the prior 24 months (versus the current 12
months). - Effective date 7-01-09
- 479(b)(2)(A) 479(c)(2)
77Expected Family Contribution (EFC)
- Family income and zero EFC
- Increases the family income threshold that allows
a dependent student and an independent student
with dependents other than a spouse to qualify
for automatic zero EFC from 20,000 to 30,000,
and requires ED to make annual adjustments for
increases in the Consumer Price Index. - Effective date 7/1/09
- 479(c)(1)(B)479(c)(2)(B)
78Expected Family Contribution (EFC)
- Dislocated workers
- Permits a dependent student with one parent who
is a dislocated worker to qualify for automatic
zero EFC. - 479(c)(1)(A)
- Permits an independent student with dependents
other than a spouse to qualify for automatic zero
EFC if the student or the students spouse, if
applicable, is a dislocated worker. - 479(c)(2)(A)
79Expected Family Contribution (EFC)
- Untaxed income
- Redefines untaxed income as child support,
workmans compensation, veterans benefits
excluding education benefits, interest on
tax-free bonds, housing, food and other
allowances (excluding rent subsidies for
low-income housing) for military, clergy, and
others (including cash payments and cash value of
benefits) cash support or any money paid on the
students behalf, except funds provided by a
dependent students parents, untaxed portion of
pensions, payments to individual retirement
accounts and Keogh accounts excluded from income
for tax purposes, other untaxed income and
benefits such as Black Lung, Refugee Assistance,
or railroad retirement benefits. - 480(b)
80Expected Family Contribution (EFC)
- Special combat pay
- Excludes special (hazardous duty) combat pay
from income from the need calculation that
determines the students expected family
contribution and from estimated financial
assistance. - 480(e)(5)
81Pell Grants
82Pell Grants
- Tuition sensitivity
- Eliminates the tuition sensitivity rule
- Trigger Event and Date
- Award years beginning on or after 7/01/08
- 401(b)..
83Pell Grant
- Annual maximum award increases
- Mandatory funding that must supplement, not
supplant, annual discretionary appropriations,
for increases in the maximum authorized annual
Pell Grant award. - 4,800 for award year 2008-09 (increase of 490)
- 4,800 for award year 2009-10 (increase of 490)
- 5,000 for award year 2010-11 (increase of 690)
- 5,000 for award year 2011-12 (increase of 690)
- 5,400 for award year 2012-13 (increase of
1,090) - Provides for additional increases for award years
2013 2017
84Pell Grants
- Trigger Event Date
- Award years beginning on or after 7/1/08
- 401(b)(9)(B)
85Upward Bound
86Upward Bound
- Funds will be available for all Upward Bound
projects that received assistance in FY 2006 but
did not receive assistance in FY 2007 (other than
new applicants) with a grant score above 70. - Assistance will be 4-year grants.
87Upward Bound
- Funding for FY 2008 through 2011 is subject to
appropriation. - The authority to award grants under this
subsection shall expire at the end of Fiscal year
2011. - 402C
88Investment in Historically Black Eligible
Institutions and Universities and Minority
Serving Institutions
89Definition
- Eligible Institution An institution of higher
education is eligible to receive funds from the
amounts made available under this section if such
institution is - a part B institution (as defined in section 322)
- a Hispanic-serving institution (as defined in
section 502) - a Tribal eligible institution or University (as
defined in section 316) - an Alaska Native-serving institution or a Native
Hawaiian-serving institution (as defined in
section 317(b)) - a Predominantly Black Institution (as defined in
subsection (c) - an Asian American and Native American Pacific
Islander-serving institution (as defined in
subsection (c)) or - a Native American-serving nontribal institution
(as defined in subsection (c)).
90Allocation and Allotment
- 100,000,000 Hispanic-serving institutions
- 100,000,000 Historically Black eligible
institutions and Universities and Predominantly
Black Institutions (HBCUS and PBIS) - 55,000,000 Other minority-serving
institutions Tribal eligible institutions and
Universities, Alaska Native-serving and Native
Hawaiian-serving institutions, Asian American and
Native American Pacific Islander-serving
institutions, or Native American-serving
nontribal institutions - Effective for fiscal years 2008 and 2009