# Presentation: 691548

## New Era of Accountability

Diane Auer Jones
Assistant Secretary for Postsecondary Education
U.S. Department of Education

**Diane Auer Jones**
**Assistant Secretary for Postsecondary Education**
**U.S. Department of Education**

## Restoring Confidence

** ****Federal Student Aid Programs**
** ****Borrower Benefits/Choice**
** ****Transparency**
** ****Compliance**
-  Financial Aid Administrators
-  FFEL Lenders and Guarantee Agencies
-  Department of Education

## College Attendance Rates

## College Prices

| Institutional
Type | Average
Cost
1996-97 | Average 
Cost
2006-07 | Increase over past 10 years, % | Increase 2005/6 to 2006/7, $ | Increase in 2005/6 to 2006/7, % |
| --- | --- | --- | --- | --- | --- |
| 2 year
Public | $1,465 | $2,272 | 55% | $90 | 4% |
| 4 year    TF
Public | $2,975

$7,142 | $5,836

$12,796 | 96%

79% | $344

$681 | 6%

6% |
| 4 year    TF
Private | $12,994

$18,357 | $22,218

$30,367 | 71%

65% | $1,238

$1,624 | 6%

6% |

-  TF

- TFRB

- TFRB

- T (tuition); F (fees); R (room); B (board)

- Source:  College Board

## Helping Students MakeInformed Choices

-  FAFSA4Caster
-  College Navigator
-  FIPSE Student Achievement and     	Institutional Performance Pilot Project
- AAC&U, ASCU, & NASULGC

## Federal Student Aid

- * Estimate

## Pell Grant Maximum Awards

- 2000-2012
- _Fiscal Year_	_Award Year_	_Authorized_	_Appropriated_
**2000****	****	****   2000-01****	****	****    $4,800****	****	****   $3,300**
**2001****	****	****   2001-02****	****	****    $5,100****	****	****   $3,750**
**2002****	****	****   2002-03****	****	****    $5,400****	****	****   $4,000**
**2003****	****	****   2003-04****	****	****    $5,800****	****	****   $4,050**
**2004****	****	****   2004-05****	****	****    $5,800****	****	****   $4,050**
**2005****	****	****   2005-06****	****	****    $5,800****	**** ****	****   $4,050**
**2006****	****	****   2006-07****	****	****    $5,800****	****	****   $4,050**
**2007****	****	****   2007-08****	****	****    $5,800****	****	****   $4,310**
**2008****	****	****   2008-09****	****	****    --------****	****	****  + $490**
**2009****	****	****   2009-10****	****	****    --------****	****	****  + $490**
**2010****	****	****   2010-11****	****	****    --------****	****	****  + $690**
**2011****	****	****   2011-12****	****	****    --------****	****	****  + $690**
**2012****	****	****   2012-13****	****	****    --------****	****	****  +1,090**

## Academic Competitiveness Grants

**Pell Grant Eligible Enrolled Full-Time & U.S. Citizen **
**Rigorous Secondary School Program of Study**
-   Recognized State-submitted programs; or
-   Courses similar to State Scholars Initiative; or
-   2 AP Courses with test score of 3 or better; or
-   2 IB Courses with test score of 4 or better
**Award Size:**  $750/$1300
**2006****:**
-  $233,038,410 awarded to 299,089 students
- _http://www.ed.gov/admins/finaid/about/ac-smart/state-programs06.html_
- _[http://www.ed.gov/admins/finaid/about/ac-](http://www.ed.gov/admins/finaid/about/ac-)__smart/2007/state-programs-07.html_

## Academic Competitiveness Grants

**Innovative Strategies to Identify Eligible Students:**
**Institutions and states can establish a branded core curriculum for college admissions.**
**Example:  The University of California’s A-G coursework requirements for Admissions are well-known by high schools students throughout the State and constitute an ACG-approved course of study.**
**The state can certify AC Grant eligibility by sending to postsecondary institutions reports listing eligible students.**
**Example:  Students in the State of Florida who have completed the ACG-approved curriculum are eligible to receive the Bright Futures Scholarship.  Florida sends universities the names of Bright Futures recipients.   **
**Institutions can reach out to all Pell Grant recipients, not just students who self-identify as eligible.**
**Example:  Brigham Young University, Idaho, contacted all students who self-certified on their FAFSA as well as other students who appeared to be potentially eligible based on a review of transcripts and financial aid records. **

## National SMART Grants

**Eligibility: Pell Grant Eligible **
**Enrolled Full-Time & U.S. Citizen **
- 3rd and 4th year college students *enrolled in* and
*making progress toward* a degree in STEM or
- Critical Needs Foreign Language; GPA 3.0 or better.
**Award Size:**  $4000
- 2006 - *$195,544,735 awarded to 60,976 students*
**Changes**
- Additional SMART Majors added
- Enrollment requirements clarified

## 	   Institutional Aid

- $ thousands

## 	   State Aid

- $ thousands

- Federal Student Loan Volume
- (FFEL & Direct Loans)

- $ millions

## Average Federal Student Loan Debt Undergraduate students with a 4-Year Degree (Percent of students borrowing)

- 66%

- 62%

- 58%

- 40%

## Average Federal Student Loan Debt 

- Monthly
- Payment
- $207

- Monthly
- Payment
- $411

## Student Loans

- Stafford/Unsubsidized Stafford/PLUS
- Direct Loans/FFEL
- Competition yields better borrower benefits
- Private Loans
- Fill gap above Federal Student Loan limits
**Should not displace grant aid or Federal loans**
- Marketing Practices
- Dept. of Education - Interagency Group
- Ombudsman
- 877-557-2575 (borrowers)
- 202-377-3800 (Financial aid professionals)

- Presenter Name(s)

**       ****1990   1991    1992     1993    1994     1995    1996    1997   1998    1999    2000    2001    2002    2003   2004    2005   2006  2007**

**4.6**

**National Student Loan Cohort Default**** ****Rates**

**Percentage**

## Ripped from the Headlines

**Ripped from the Headlines**

**Lenders Misusing Student Database**
- Improper Searches Raise Privacy Fears

**Swimming With Student Loan Sharks**

**University named in report detailing student loan abuse**

**Rules proposed to curb loan abuse**

- Panel Finds Wide Abuse in Student Loan Program

## Compliance

**Dear Colleague Letters**
**Negotiated Rulemaking** – Began in 2006
**Publication of Final Rule** – Nov. 1, 2007

**College Cost Reduction & Access Act**
- _ __Changes Affecting FFEL Lenders and Guaranty Agencies_

- Effective October 1, 2007 --
-  Reduced:
- FFEL guaranty agency retention percentage from 23% to 16%.
- FFEL lender special allowance payments (SAP) by 55 basis points (40 for non-profit lenders).
- GA account maintenance fee from .10% to .06%
-  Increased lender loan fee from .50% to 1.0%.
- Eliminated Exceptional Performer Designation for FFEL lenders, servicers, and guaranty agencies.

- Increased Pell Grants
- TEACH Grants*
- Loan Forgiveness for Public Service Employees*
- PLUS Auction Pilot
- College Access Challenge Grants

**College Cost Reduction & Access Act**

- * - Requires negotiated rulemaking

**College Cost Reduction & Access Act**

**Negotiated Rulemaking**
- 	**Regional Hearings: **
- 		11/2 (LA); 11/14 (DC); 11/29 (CA)
- 	**Nominations: **November 29, 2007
- 	**Target Dates: **
- TEACH: Publication (6/1/08) and Implementation (7/1/08*)
- FULL PACKAGE: Publication (11/1/08) and Implementation (7/1/09)

- HEA
- Reauthorization?

- Thank you!