-FederalUpdate.pptVIP

Federal Update Dan Madzelan Office of Postsecondary Education Jeff Baker Federal Student Aid Title IV Program Budgets Appropriations Title IV Program Budgets Aid Available Title IV Program BudgetsStatus of Appropriations Title IV Program Budget Priorities Administration Pell Grants Eliminate Shortfall Mandate Annual Increases Establish $1,000 State Scholars Award Congress Pell Grants Shortfall Eliminated AC/SMART Grants Mandatory Spending Authorized: $4.53 Billion over 5 Years Title IV Program Budget Priorities Administration Make Active Duty Military Independent Clarify FAFSA “Drug Question” Revise CB Formulas Eliminate/Recall Perkins Congress Active Duty Military are Independent Applies to those in-school and receiving aid Not Addressed Not Addressed Loan Program Budget Priorities Administration Create 25 basis point Loan Holder Fee Reduce insurance to 95% Eliminate special SAP on tax-exempt financings Not proposed Congress Recapture excess interest earnings Lender insurance reduced to 97% Special SAP largely eliminated Phase-out origination fees Legislation Higher Education Reconciliation Act of 2005 Emergency Supplemental Appropriations Act for Defense, the Global War on Terror, and Hurricane Recovery, 2006 Second Continuing Resolution, 2007 Through December 8, 2006 Third Higher Education Extension Act of 2006 Through June 30, 2007 Third Higher Education Extension Act New restrictions on Eligible Lender Trustee arrangements with Postsecondary Institutions Definition of Hispanic-Serving Institution Clarification of GA Account Maintenance Fees New Loan Discharge for Survivors of 9/11 Victims Hurricane Help for Institutions Hurricane Education Recovery Act $95 Million to 18 Louisiana Institutions $95 Million to 38 Mississippi Institutions $10 Million to 99 U.S. Institutions $30 Million “Retained” by 18 Gulf Institutions Higher Education Recovery Awards $50 Million to 41 Gulf Institutions Natural Disaster Student Aid Fairness Act $28 Million Reallo