FAFSA Simplification - What Does That Mean and How Do We Get There? Carney McCullough Michele Brown...

FAFSA Simplification - What Does That Mean and How Do We

Get There?

Carney McCullough

 Michele Brown

Session 24

Federal Student AidPolicy Influencers Inform a Simpler

Paper Form

3

The Advisory Committee

• The Advisory Committee on Student

Financial Assistance issued the results of their

simplification study entitled “The Student Aid

Gauntlet” on January 23, 2005.

– www.ed.gov/about/bdscomm/list/acsfa/edlite-

about.html

4

The Advisory Committee

Four National Imperatives

 Empower Students

• To make sound decisions about higher education

 Make It Easy

• To ensure students get the financial aid they deserve

5

The Advisory Committee

Four National Imperatives (cont’d)

Lose The Paper

• To create an integrated web-based student aid system

Work Together

• To forge creative public-private access partnerships

6

The Advisory Committee

1. Create a System of Early Financial Aid

Information.

– Provide student from middle school through

adulthood with accurate and timely

information about financial aid, including

estimates of awards from multiple sources in

the context of college costs.

7

The Advisory Committee

2. Make Federal Need Analysis Transparent,

Consistent, and Fair.

– Reform four major structural weaknesses in

the current eligibility model: the treatment of

student earnings, college savings plans, state

and local taxes, and special circumstances.

8

The Advisory Committee

3. Expand Existing Simplification to More

Students.

– Extend the benefits of the automatic zero

Expected Family Contribution and the Simplified

Needs Test to as many low-and moderate-income

students as possible.

9

The Advisory Committee

4. Allow All Students to Apply for Financial Aid

Earlier.

– Align the financial aid application and college

admissions processes and allow student to

apply in order to receive estimates of their

eligibility earlier in the college preparation

process.

10

The Advisory Committee

5. Make the FAFSA Relevant and Understandable.

– Eliminate questions that are redundant or irrelevant to federal or state aid eligibility and simplify the language used on the form to make it more accessible to students and families.

11

The Advisory Committee

6. Create a Simpler Paper Form for Low-

Income Students.

– Provide low-income students with a paper EZ

FAFSA, a highly simplified paper

application, and maximize to the extent

possible the number of students who can use

this form.

12

The Advisory Committee

7. Phase Out the Full Paper Form and Increase

the Use of Technology.

– Establish a five-year timeline for phasing out

the complex, full paper FAFSA and move all

applicants to FAFSA on the Web.

13

The Advisory Committee

8. Simplify and Streamline FAFSA on the Web.

– Ensure that applicants complete a tailored,

on-line form that contains the minimum

number of questions necessary to deliver

federal and state aid and can sign their

application electronically without delay.

14

The Advisory Committee

9. Simplify the Verification Process.

– Create and implement a centralized, web-

based verification system to reduce burden on

students, lower costs to institutions, and

improve the quality of date use to ensure

program integrity.

15

The Advisory Committee

10. Create a National Partnership to Make Access

Simple and Certain.

– Strengthen public-private partnerships based

upon effective state models already in place in

order to fully implement the improvements

outlined above and lower unmet need.

16

Secretary’s Commission on the Future of Higher Education

Recommendations from the Secretary’s

Commission on the Future of Higher

Education released September 2006

17

Higher Education Reconciliation Action Act of 2005 (HERA)

• The Higher Education Reconciliation Act of 2005

(HERA) was signed by President Bush on

February 8, 2006. This bill made changes to the

current Higher Education Act (HEA) that will

affected borrowers, institutions, and lenders.

18

Higher Education Reconciliation Action Act of 2005 (HERA)

• Simplified Needs Test and Automatic Zero EFC

– Only parent’s type of tax return filed will be considered for dependent students

– Federal means-tested benefit program as alternative to tax return requirement

• Automatic Zero EFC Only

– Increases the income threshold from $16,000 to $20,000 to qualify for an automatic zero EFC

19

HERA – Need Analysis Changes

• Federal Means-Tested Benefit Programs --

students may now qualify for SNT or Auto

Zero EFC if, in addition to meeting the

relevant income thresholds, they or their

spouse or parents received benefits from a

means-tested Federal benefits program

20

HERA – Need Analysis Changes

• Supplemental Security Income (SSI)

• Food Stamps

• Free or Reduced Price Lunch

• Temporary Assistance for Needy Families

(TANF)

• Special Supplemental Nutrition Program for

Women, Infants and Children (WIC)

Historical FAFSA Simplification Efforts

22

1973

• First BEOG

application

• 2 pages long, asked 50

questions that required

up to 80 responses

23

1993

• Reauthorization required

single federal form

• Added state questions to

reduce numbers of states

with separate applications

• Used alpha-numeric

number scheme (e.g., 44a,

44b, 44c etc.)

24

1994

• FAFSA numbering

scheme changed, assigned

numbers to each response

• Went from an apparent 47

questions to 113 responses

(same questions as 1993

form)

25

1997-1999

• FAFSA was 16 pages

long- 4 page application,

12-page instruction book

• Began 2-year redesign

effort

• Worked with schools and

states to reduce data

elements

26

1999-2000

• Current format, 4-page application and 4-page Notes section

• Extensive usability testing- dropped SNT worksheets as too complex

• Eliminated 8 pages of instructions

• Plain-language approach

27

Reauthorization in 1992 and 1998, HERA in 2005

• Did not eliminate any statutory requirements and

added new questions, for example:

– Are you eligible to file a 1040A or EZ?

– Preparer’s Information

– Drug conviction question

– Receipt of federal benefits

– Active duty military question

28

Application Processing Statistics

For 2006-07 –

• 94% of applications filed

electronically

• 6% of applications filed

on paper FAFSA

Paper vs. Electronic Filers through Week 38

0

2000000

4000000

6000000

8000000

10000000

12000000

Electronic Apps Paper Apps

2004-05

2005-06

2006-07

29

Contact Us

We appreciate your feedback and comments.

We can be reached at:

Carney McCullough

Carney.McCullough@ed.gov

Michele Brown

Michele.Brown@ed.gov