Federal Update

1
Federal Update

• Deborrah Glenn-Long
• Connecticut Student Loan Foundation

Note In order to minimize file size, all
background graphics, photos and clipart
have been removed from this presentation.
2
Agenda

• 2006-07 FAFSA Update
• Profile Application Changes
• Reauthorization

3
FAFSA Updates

• 2006-07 Colors
• Blue for students
• Purple for parents
• Taxes paid questions Removed Total amount to
  reduce confusion
  
• Clarified reporting of combat pay
• Clarified that foster parents are not considered
  parents for federal aid

4
Student Aid Report

• Printed on blue paper
• Questions will appear in the same order as the
  paper FAFSA
  
• Text on second page will emphasize the importance
  of not sharing PIN with others

5
FAFSA on the Web

• Links added back
• State deadlines
• School code search
• New printable checklist of items needed to
  complete the FAFSA
  
• Reformatted FAFSA on the Web Pre-Application
  Worksheet
  
• Improved PIN Website

6
Profile App. Fee Waivers

• Eliminate registration payment
• 5 registration fee
• Minimum of 18 to send information to at least
  one college
  
• Increase the number of school reports from 3 to
  6
  
• Unused waivers available for college reports
  added later
  
• Fee waiver eligibility reported to colleges

7
Who Qualifies for Waiver?

• USDA reduced price lunch guidelines
• Parent net assets must be 28,660 or less
• Orphans and wards of the court automatically
  eligible
  
• Student is ineligible if all parent income
  questions zero or blank

8
Profile Applicant Support

• Draft tax forms available on site
• Tax references for 2 years provided
• Glossary of terms in both English and Spanish
• FAQs for self-employed parents

9
Noncustodial Profile

• Permit students to check whether noncustodial
  parent has submitted application
  
• Students can opt to have the College Board notify
  the noncustodial parent directly if that parents
  e-mail address is provided
  
• Will display institutional filing deadlines on
  the NC Profile

10
Reauthorization General Agreement

• No new money
• Less old money
• Increased loan limits
• Expanded auto zero EFC
• Creation of EZ FAFSA
• Higher costs on Consolidation Loans (to
  borrowers)
  
• Increased Pell Grant authorization

11
Items to Watch

• Interest rates
• 7/1/2006 Stafford rate fixed at 6.8
• 7/1/2006 PLUS rate fixed at 7.9
• House wants to keep current variable rate Senate
  wants to move to fixed rate
  
• Lender/guarantor returns may change borrower
  benefit programs and value-added services
  
• Increased aid for math science