Federal Legislation The Deficit Reduction Act of 2005.
-
Upload
margery-osborne -
Category
Documents
-
view
213 -
download
0
Transcript of Federal Legislation The Deficit Reduction Act of 2005.
Federal LegislationFederal Legislation
The Deficit Reduction The Deficit Reduction Act of 2005Act of 2005
Deficit Reduction ActDeficit Reduction Act
Academic Competitiveness Academic Competitiveness & SMART Grants& SMART Grants
Stafford Loan Interest RatesStafford Loan Interest Rates Stafford Loan Borrowing Stafford Loan Borrowing
LimitsLimits Other Loan IssuesOther Loan Issues Need Analysis IssuesNeed Analysis Issues
Academic Competitiveness GrantAcademic Competitiveness Grant
11stst & 2 & 2ndnd Year Undergraduate Study Year Undergraduate Study• $750 for 1$750 for 1stst Year Year• $1,300 for 2$1,300 for 2ndnd Year Year
Criteria:Criteria:• Pell Grant EligiblePell Grant Eligible• Enrolled Full TimeEnrolled Full Time• Attend a High School whose programs Attend a High School whose programs
have been deemed rigoroushave been deemed rigorous• Maintain a 3.00 GPA (Annually)Maintain a 3.00 GPA (Annually)
Effective Date: 2006-2007Effective Date: 2006-2007
Science & Math Access to Retain Science & Math Access to Retain Talent Grant (SMART)Talent Grant (SMART)
33rdrd & 4 & 4thth Year Undergraduates Study Year Undergraduates Study• Award up to $4,000Award up to $4,000
Criteria:Criteria:• Pell Grant EligiblePell Grant Eligible• Enrolled Full-TimeEnrolled Full-Time• Major in Science, Math, Engineering, & Major in Science, Math, Engineering, &
specific Languagesspecific Languages• Must maintain a 3.00 GPAMust maintain a 3.00 GPA
Effective Date: 2006-2007Effective Date: 2006-2007
Student Loan Interest RatesStudent Loan Interest Rates
Interest rates will change from a Interest rates will change from a variable rate to a fixed rate on loans variable rate to a fixed rate on loans made from 7/1/2006.made from 7/1/2006.
Stafford & Direct loans will have a Stafford & Direct loans will have a fixed rate of 6.8%fixed rate of 6.8%• The variable rate this year is 5.3%The variable rate this year is 5.3%
Parent Loans will have a fixed rate of Parent Loans will have a fixed rate of 8.5%8.5%• The variable rate this year is 6.1%The variable rate this year is 6.1%
Student Loans LimitsStudent Loans Limits
Increase 1Increase 1stst Year loans from $2,625 Year loans from $2,625 to $3,500.to $3,500.
Increase 2Increase 2ndnd Year loan limits from Year loan limits from $3,500 t0 $4,500.$3,500 t0 $4,500.
No increase of loan limit for 3No increase of loan limit for 3rdrd & 4 & 4thth year loans.year loans.
The aggregate loan limit of $23,000 The aggregate loan limit of $23,000 does not increase.does not increase.
Other Loan IssuesOther Loan Issues
Phase out the 3% Origination Fee. Phase out the 3% Origination Fee. Authorize military deferments up to three Authorize military deferments up to three
years during war time & national disasters.years during war time & national disasters. Fix consolidation loan ratesFix consolidation loan rates
at 6.8%.at 6.8%. Eliminate in-school & spousal Eliminate in-school & spousal
consolidations.consolidations. These changes are effective These changes are effective
2006-2007.2006-2007.
Need Analysis ChangesNeed Analysis Changes
Increase the Income Protection Increase the Income Protection Allowance for dependent students from Allowance for dependent students from $2,200 to $3,000.$2,200 to $3,000.
For independent students increase the For independent students increase the allowance against income from $5,000 allowance against income from $5,000 to $6,050.to $6,050.
Reduce the percentage of a dependent Reduce the percentage of a dependent student’s assets from 35% to 20%.student’s assets from 35% to 20%.
Effective date: July 1, 2007.Effective date: July 1, 2007.
Other Need Analysis ChangesOther Need Analysis Changes
Simplified Needs TestSimplified Needs Test• Expand eligibility for the Simplified Needs Expand eligibility for the Simplified Needs
Test for students & parents who receives a Test for students & parents who receives a means-tested federal benefit programs (i.e. means-tested federal benefit programs (i.e. Food Stamps & School Lunch programs).Food Stamps & School Lunch programs).
Automatic Zero Expected Family Automatic Zero Expected Family Contribution (EFC)Contribution (EFC)• Expand the Automatic Zero EFC by raising Expand the Automatic Zero EFC by raising
the income cap from $15,000 to $20,000.the income cap from $15,000 to $20,000. Effective Date: July 1, 2006Effective Date: July 1, 2006
State LegislationState Legislation
The 2006-2007 New York The 2006-2007 New York State BudgetState Budget
2006-2007 New York State Budget2006-2007 New York State BudgetTopicsTopics
Two New Aid ProgramsTwo New Aid Programs• Math & Science Teaching Incentive Math & Science Teaching Incentive
ScholarshipScholarship• Part-Time TAPPart-Time TAP
Change in CircumstancesChange in Circumstances Ability to Benefit Ability to Benefit Change to Satisfactory Academic ChartChange to Satisfactory Academic Chart
Math & Science TeachingMath & Science TeachingIncentive ScholarshipIncentive Scholarship
PurposePurpose• Increase the number of middle and secondary Increase the number of middle and secondary
teachers in the fields of Math & Scienceteachers in the fields of Math & Science Conditions of the ScholarshipConditions of the Scholarship
• Available for both bachelor & master’s degree Available for both bachelor & master’s degree levelslevels
• Must enters into a contract with HESC to teach on Must enters into a contract with HESC to teach on a full-time basis for five years in math or sciencea full-time basis for five years in math or science
• Failure to comply with terms of contract will have Failure to comply with terms of contract will have the value of the award converted to a student loanthe value of the award converted to a student loan
Math & Science TeachingMath & Science TeachingIncentive Scholarship (Cont.)Incentive Scholarship (Cont.)
Number of AwardsNumber of Awards• A Maximum of 500 awards annuallyA Maximum of 500 awards annually
AmountsAmounts• Equal to SUNY Tuition Rate ($4,350)Equal to SUNY Tuition Rate ($4,350)• Awards made after one successful Awards made after one successful
completion of the academic year (1completion of the academic year (1stst payment made in 2007-2008)payment made in 2007-2008)
• Annual awards for 4 years of full-time Annual awards for 4 years of full-time undergraduate study and 1 year of full-undergraduate study and 1 year of full-time graduate studytime graduate study
Part-Time TAPPart-Time TAP
RequirementsRequirements• Student must be a Freshman in 2006-07Student must be a Freshman in 2006-07• Full-Time for two consecutive semestersFull-Time for two consecutive semesters• Maintain a “C” averageMaintain a “C” average• Hence, program will not start until 2007-Hence, program will not start until 2007-
20082008 QuestionsQuestions
• How is the award calculated?How is the award calculated?• What is the Award amount?What is the Award amount?
Part-Time TAP (Cont.)Part-Time TAP (Cont.)
Part-Time TAP vs. Aid for Part Time Part-Time TAP vs. Aid for Part Time Study (APTS)Study (APTS)• Part-Time TAP does not replace APTSPart-Time TAP does not replace APTS• APTS is fully funded at 14.6 millionAPTS is fully funded at 14.6 million• APTS is a campus based program APTS is a campus based program
whereas Part-Time TAP is an entitlement whereas Part-Time TAP is an entitlement program.program.
Change in Family CircumstanceChange in Family Circumstance
Adjustments to Family IncomeAdjustments to Family Income• Current conditions: death, permanent Current conditions: death, permanent
disability, or divorce of a parent/spousedisability, or divorce of a parent/spouse• New “catastrophic illness” of the applicantNew “catastrophic illness” of the applicant
Question: Who can Make the Changes?Question: Who can Make the Changes?• Is it left to the Financial Aid Officer or the Is it left to the Financial Aid Officer or the
Higher Education Services Corporation Higher Education Services Corporation (HESC)(HESC)
Ability to Benefit (ATB) ChangesAbility to Benefit (ATB) Changes
Students who do Students who do notnot have a high have a high school diploma or GED school diploma or GED mustmust pass a pass a federally approved ATB test in order to federally approved ATB test in order to receive any state aidreceive any state aid
The State Education Department will The State Education Department will provide guidance about the provide guidance about the independent testing and evaluation independent testing and evaluation process.process.
Accelerated StudyAccelerated Study
Students qualify for accelerated study Students qualify for accelerated study onlyonly upon the completion of 24 credits, upon the completion of 24 credits, or its equivalent, in the prior two terms.or its equivalent, in the prior two terms.
Implemented for terms beginning after Implemented for terms beginning after Jan. 1, 2007Jan. 1, 2007