The Department of Education has released updated editions of FSA COACH, both for domestic and foreign schools. These comprehensive and self-paced online courses, written at an introductory level, have been fully updated for the 2009-2010 Award Year. The courses are available on the Information for Financial Aid Professionals (IFAP) Web site.
"The state of Minnesota's fiscal woes could impact a cash-strapped government program that provides financial aid for needy college students," Minnesota Public Radio reports. "If lawmakers aren't able to find millions of dollars to prop up the program this session, thousands of college students could see a decrease in their financial aid next year. The Minnesota State Grant Program provides financial aid to college students from low and middle-income families. The average award is more than $1,700 dollars. Last fall 76,000 Minnesota college students received aid through the program, 20 percent more than the year before."
NASFAA recently received guidance from the Department of Education regarding the treatment of the new American Opportunity Tax Credit in need analysis. Since the new tax credit is in the same section of the Internal Revenue Code as the Hope and Lifetime Learning Tax Credits, it is treated the same way in need analysis -- as excludable income.
"Four months ago, it appeared all but certain that the White House and Democrats in Congress would succeed in overhauling the student loan business and ending government subsidies to private lenders," New York Times reports. "But an aggressive lobbying campaign by the nation’s biggest student lenders has now put one of the White House’s signature plans in peril, with lenders using sit-downs with lawmakers, town-hall-style meetings and petition drives to plead their case and stay in business. House and Senate aides say that the administration’s plan faces a far tougher fight than it did last fall."
The NASFAA Monthly Status Report for December 2009 and Jan 2010 is now available on the NASFAA Web site. The monthly status report contains a monthly summary of NASFAA activities, future plans, and highlights from NASFAA staff. The report is released to the NASFAA Board of Directors and is then made available to NASFAA members. A username and password is required to access the report.
A number of schools have asked whether decreases in their campus-based allocations might be in error. The Department of Education has not found any glitches in the allocation process, but encourages schools to check that the data submitted by the school on its FISAP was correct. This article explains a number of factors that can lower campus-based program allocations.
The deadline to request a waiver of the 2010-2011 Award Year penalty of Federal Work Study (FWS) and Federal Supplemental Educational Opportunity Grant (FSEOG) for the underuse of 2008-2009 Award Year funds is February 12, 2010. A school can determine if it has received an underuse penalty by reviewing its Campus-Based Tentative Funding Worksheet for 2010-2011. If a school received an underuse penalty, and it has a valid justification for having more than a 10 percent underuse of FSEOG and/or FWS funds in 2008-2009, the school should review its FISAP data to determine if it needs to request an underuse penalty waiver.
Federal offices as well as some of Title IV processors and call centers will be closed on Monday, February 15, 2010 to observe the Washington’s Birthday Federal holiday.
As part of the changes to the student loan programs made by the Higher Education Reconciliation Act of 2005 (the HERA), Pub. L. 109-171, the origination fee for Direct Subsidized Loans and Direct Unsubsidized Loans will again be reduced, as will the up-front interest rebate. In this announcement the Department of Education provides operational guidance for schools and third party software providers on implementing these latest reductions in the origination fee and the up-front interest rebate.
"In her eighth and final State of the State address last night, Democratic Gov. Jennifer Granholm announced her budget for the 2011 fiscal year would restore the Promise Scholarship and guard against further cuts to education," Michigan Daily reports. "However, Granholm did not reveal specific plans for funding the scholarship’s restoration. The scholarship was eliminated last November, when Granholm signed the final bills of the 2010 state budget. Granholm’s 2011 budget plan will be officially released next week when she submits it to the legislature for consideration."
Loan holders (lenders, guaranty agencies, and Perkins schools) that assign loans to the Department of Education for Total and Permanent Disability (TPD) discharge may no longer accept the previous version of the form from borrowers who are submitting their initial application for TPD discharge, beginning April 1, 2010.
"A scam disguised as financial aid information is making the rounds in Tennessee," Nashville Public Radio reports. "State Attorney General Bob Cooper says official-looking letters urge students and their parents to pay $50 or more to apply for college aid. He says the services offered in the letters are actually free. What’s more, responding to them opens families up to possible identity theft."
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