<p>If this is a repeat post... I will trust the moderators to delete, but I ran across this today and thought it had a place here for parents.</p>
<p>Applying</a> for Financial Aid Will Be Easier in 2010 - US News and World Report</p>
<p>Yes that has been talked about for a while. Personally I would as soon they waited to simplify it until after I am done with FAFSA. You know what happens when the Govt starts fixing things. I foresee glitches for years!! You just know they probably won’t get sufficient input from anyone who actually understands the process. Look at how many times they have changed the ACG and SMART grant rules, usually causing further complications.</p>
<p>The most terrifying words in the English language… “I’m from the government and I’m here to help.”</p>
<p>I agree, gave me a laugh with my morning coffee. : )</p>
<p>The changes for 10-11 are very subtle, and I doubt anyone will notice. The ability for a direct IRS download won’t be live until March, which is too late for many priority filing deadlines.</p>
<p>The proposed rules for 11-12 are the ones that will make applying much easier … but with the easier application are some proposed changes that will make many people hoping for aid less than thrilled. I won’t say much, because the proposals may very well not come to pass. However, there seems to be a move toward getting rid of loan subsidies for the future. ACG & SMART will most likely go by the wayside. New Pell rules this year are RIDICULOUS … I can’t explain 'em, and it’s even harder to apply them. The easier it gets, the harder it gets!</p>
<p>Now you have me wondering about the Pell rules!! Is it just because of the summer Pell or the rules in general?</p>
<p>It’s the whole year-round Pell thing. The new rule is that students can get a second Pell award, but there are so many caveats … schools have to look at the number of credits passed in the first-award semesters to determine if they have completed at least a years’ worth of credits. This means waiting for grades to come in & then reviewing them. If the student hasn’t completed the years’ worth of credits, he can get 2nd award IF he is enrolled in enough credits during the term in which he would receive the second Pell … but if he drops credits before the financial aid lock period is over and no longer carries enough credits to make it one more than a years’ worth of credits, the school has to take away the second Pell award. These things are VERY difficult to do from an administrative standpoint, especially when the award has to be reduced.</p>
<p>In addition, if a term includes July 1, schools have to look at the EFC from both years (for example, summer '11 means compare EFC for 10-11 & 11-12). The more beneficial EFC MUST be used (beginning in 10-11 award year). If the student hasn’t filed the FAFSA at the time the 2nd Pell is awarded, or if verification is incomplete at the time of awarding for the term, the prior year EFC is used. But if the student files the new year FAFSA/completes verification before some date the feds determine (maybe August, maybe September - who knows yet?), the school must go back & re-evaluate the award. The school MUST use the more beneficial EFC, even if it means adjusting aid months after awarding it (which may mean adjusting loans, too - and if sub is removed, we can’t increase unsub without the student’s okay, so we have to contact each & get them to increase unsub to avoid a balance). And to make it better … schools will still be summer header or summer trailer. So while the “better” EFC has to be used for Pell, all other awarding is based on the EFC for the year that header/footer falls in. This is a NIGHTMARE for processing.</p>
<p>This is going to be so very difficult to explain to students. Awards will go up & down. Prior term completion doesn’t have to be monitored yet (we will start doing it this summer), but the 2nd Pell has to be awarded if the student has used 100% already. This term, I have about 40 students who received 100% already due to receiving aid at another school in the summer. In the summer, I will have a whole lot more. When you have 30,000 students & MANY of them are Pell eligible, it’s so much harder to implement these rules than you can even imagine.</p>
<p>Wow… that does sound incredibly difficult, Kelsmom! =:O</p>
<p>
“Cough cough”. - case in point :rolleyes:</p>
<p>Perhaps I should have added “or the people who have to implement it”.</p>
<p>That is so strange about the having to use the most beneficial years EFC id aid crosses July 1st. I just assumed it would follow whether the school uses the summer header or trailer. (ie if the school considers summer 2010 as part of the preceding year - that would be trailer right? - the the EFC used would the 2009-2010 EFC). Too logical maybe?</p>
<p>My daughter did summer classes last year. I am not sure of her plans this summer. If she does do summer classes it will be interesting to see what happens with the Pell.</p>
<p>Input is actually part of the process (it’s called negotiated rulemaking). But soliciting input does not always mean much … :)</p>
<p>This summer, schools will have to award 2nd Pell if applicable for the student. However, some of the new rules associated with it won’t have to be implemented until next summer. We have chosen to NOT do the “most beneficial EFC” this year (whew), but we WILL do the “monitoring for completion” (since we think that auditors will expect that to be done). And yes, the most beneficial EFC is a radical departure from anything that has ever been done. From a systems standpoint & from an awarding standpoint, it’s mind-blowing.</p>
<p>Another issue is Perkins. It’s slated to become unsubsidized, but the rules are not yet officially official (“officially official” often occurs after FA offices have already awarded, believe it or not). Many FA folks think it will probably stay subsidized for 10-11. Here’s the problem … awarding Perkins as sub is completely different than awarding it as unsub. If it’s awarded as sub, it comes before Stafford sub & unsub … if unsub, it comes BETWEEN Stafford sub & unsub. Need is a factor in sub, not in unsub. FA offices are awarding aid NOW for freshmen. So if an office bases Perkins on being sub & it changes, they have to go back & review every aid package with Perkins & adjust … same if the office operates on the assumption it will change, but then it does not.</p>
<p>Gotta love our federal government. They know how to keep themselves in business.</p>