Session C-06

Higher Education Opportunity Act of 2008: An Update

David BergeronU.S. Department of Education

Office of Postsecondary Education

Cynthia HammondU.S. Department of Education

Office of Legislation and Congressional Affairs

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Agenda

• Background• Possible Discussion Topics

– Unsubsidized Loans for Dependent Students– EFC for Children of Deceased Veterans– Eligibility of Intellectually-Disabled Students– Year-Round Pell Grants– Veterans’ Education Benefits Treatment– Compliance Calendar– Textbooks– Model Financial Aid Offer Form

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BackgroundHigher Education Opportunity Act (HEOA)

• Higher Education Act of 1965 expired in 2004

• Reauthorized HEA after 16 extensions• Signed by the President on August 14, 2008• Became Public Law 110-315

– House Bill (H.R. 4137) passed 2/7/2008– Senate Bill (S. 1642) passed 7/24/2007

• Website: http://www.ed.gov/heoa

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Agenda

• Background• Possible Discussion Topics

– Unsubsidized Loans for Dependent Students– EFC for Children of Deceased Veterans– Eligibility of Intellectually-Disabled Students– Year-Round Pell Grants– Veterans’ Education Benefits Treatment– Compliance Calendar– Textbooks– Model Financial Aid Offer Form

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Unsubsidized Loans for Dependent Students

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Unsubsidized Loans for Dependent Students: What Does the Law Say?

• Section 479A maintains the authority of the financial aid administrator to make professional judgment decisions• A dependent student may receive an Unsubsidized Stafford loan if:

• The aid administrator verifies that the parent(s) have “ended financial support” and•The parents “refuse to file” the FAFSA

• However, this does NOT make a dependent student independent•**Effective 8/14/2008**

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Unsubsidized Loans for Dependent Students: Practical Considerations

• How do we identify affected students?– How do we define

refusal?– At what point does a

parent’s refusal to supply information become a reason to not include it at all?

• How do we document something that doesn’t exist (i.e. financial support)?

REMINDER: the law gives the authority; it’s not a requirement

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Unsubsidized Loans for Dependent Students: Other Implementation Issues

• Currently, no database matches if parental information isn’t present

• Change in the works to address this

• FISAP implications?

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EFC for Children of Deceased Veterans

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EFC for Children of Deceased Veterans: What Does the Law Say?

• The expected family contribution is 0 for the Pell Grant for a student:– Whose parent/guardian died from service in Iraq

or Afghanistan and– Who was less than 24 years old or was enrolled

full- or part-time at IHE at the time of the death• IMPORTANT: Only affects Pell Grants, and only

applies to post 9/11/2001 service• **Effective 7/1/2009**

EFC = 0

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EFC for Children of Deceased Veterans: Practical Considerations

• Requires coordination with Federal and non-Federal Programs

• Veterans’ Affairs and Department of Defense will help identify students

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Eligibility of Intellectually-Disabled Students: What Does the Law Say?

• The HEOA authorizes grant programs in Title VII, including a transition and postsecondary program

• Authorizes new eligibility for Pell Grants, FSEOG, and FWS

• Defines intellectual disability as– Mental retardation, or– Intellectual impairment, and– Currently or formerly eligible for free public

education under IDEA• **Effective 8/14/2008**

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Eligibility of Intellectually-Disabled Students

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Eligibility of Intellectually-Disabled Students: What Does the Law Say?

To receive Title IV funds, student must:• Enroll/be accepted in a transition and

postsecondary program at an IHE• Maintain SAP• Meet additional general requirements:

– Must not owe refund or be in default– File statement of educational purpose– Be a citizen/eligible non-citizen– Have completed necessary repayment if

convicted of fraud

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Eligibility of Intellectually-Disabled Students: What Does the Law Say?

Eligible transition and postsecondary program:• Degree, certificate, or non-degree program• Offered by an IHE• Supports academic, career and technical, and

independent living instruction• Includes advising and curriculum structure• Requires at least half-time participation in one or

more of the following– Regular enrollment in credit-bearing courses– Audited courses– Enrollment in noncredit, nondegree courses– Internships or work-based training

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Eligibility of Intellectually-Disabled Students: Practical Considerations

• How do you develop the program?

• How do you define a ½ time student?

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Year-Round Pell Grants

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Year-Round Pell Grants: What Does the Law Say?

• A student may receive up to two Scheduled Federal Pell Grant awards during a single award year if eligible student is enrolled:– At least half-time for more than one academic

year or more than two semesters or the equivalent time during a single award year; and

– In a certificate, associate degree, or baccalaureate degree program.

• **Effective 7/1/2009**

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Year Round Pell Grants: Practical Considerations

• How do we choose the award year from which to draw funds? Is there ever a situation in which payment would be drawn from the upcoming award year?

• How do we track and handle students that come and go (particularly at community colleges)?

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Veterans’ Education Benefits Treatment

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Veteran’s Education Benefits Treatment: What Does the Law Say?

• Veterans’ education benefits excluded from:– Total income (for calculating EFC) and– Estimated financial assistance (for packaging and

for determining loan eligibility).• Value of on-base military housing or basic housing

allowance excluded from untaxed income and benefits

• Unchanged from prior law-- veteran’s education benefits excluded from untaxed income and benefits

• Beginning in the 2010-2011 award year, VA benefits will not affect Title IV aid.

• **Effective 7/1/2010**

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Veterans’ Education Benefits Treatment: Practical Considerations

• There is the potential for veterans receiving aid in excess of COA.

• Are there any unintended operational consequences?

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Compliance Calendar

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Compliance Calendar: What Does the Law Say?

• The Secretary is required to provide a list of HEA-required reports and disclosures, including:– Required completion date;– Required recipients;– Content description;– Statutory/regulatory references; and– Other pertinent information

• The calendar will be provided prior to the beginning of each award year.

• **Effective 8/14/2008**

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Compliance Calendar: Practical Considerations

• What should the calendar look like?

• To whom should it be targeted?

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Textbooks

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Textbooks: What does the Law say?

• The HEOA includes a series of requirements to ensure that

students have timely access to affordable course materials– Publishers to faculty: price, copyright, and descriptive

information on textbooks– Institutions to students: ISBN (or identifying information)

on internet course schedule, and reference to same on written schedule; and

– Institutions to bookstores: course schedule and ISBN or identifying information

• Recommended information from institutions to students:- Renting textbooks - Buy-back programs- Buying used textbooks - Alternative content

delivery programs- **Effective 7/1/2010**

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Textbook Information:Practical Considerations

• Are the appropriate offices aware of these requirements?

• Which office will coordinate the information?• Who at the institution will monitor to ensure that faculty

have the needed information from publishers?

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Model Financial Aid Offer Form

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Model Financial Aid Offer Form: What Does the Law Say?

• By 2/14/2009, the Secretary shall convene a representative group to make recommendations– To improve financial aid offer forms, and– That include COA details, a description of

financial aid offered, the need equation, where to seek clarification on aid offered, and any additional information the Secretary determines is needed to help students make informed borrowing decisions

• By 9/14/2009, the Secretary shall:– Submit recommendations to

Congressional authorizing committees, and

– Make recommendations and model format widely available

• **Effective 9/14/2009**

Here is the aid that you are eligible to receive…

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Regulations Subject to Negotiation

Notice Announcing Formation of Committees and Solicitation of Nominations to Serve as Non-Federal Negotiators 11/08

Negotiating Committees Established 12/08 Negotiations 2/09-4/09 Draft NPRM Prepared 4/09-6/09 NPRM Submitted to OMB for Clearance 7/09 NPRM Published in the Federal Register 8/09 Public Comment Period Ends 9/09 Final Regulation Prepared 9/09-10/09 Final Submitted to OMB for Clearance 10/09 Final Published in the Federal Register 11/1/2009

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Contact Information

We appreciate your feedback and comments. I can be reached at:

• Phone: 202-502-7815• Email: David.Bergeron@ed.gov• Fax: 202-502-7873