<p>I located a New York Times article from September 7th saying Congress passed and the President is expected to sign the bill. The maximum Pell Grant will increase from the current $4310 to $5400 over the next five years.</p>
<p>OK, after reading all this, I am SO happy my son is at Hillsdale. No government forms, loans... nothing. And, still, tuition is reasonable and FinAid is great.</p>
<p>The debt load for some of these kids, even with cheap govt loans, is just fantastic.</p>
<p>oh, by the way, not all of the amendments to h.r.2669 will be in effect on october 1st.</p>
<p>i have read that some will be effective oct 1st of this year while most of it---at least what i've read so far--will be effective july 1, 2009!</p>
<p>am i reading it correctly or am i mistaken?</p>
<p>I read it the same way. The one I noticed is the changes to simplified needs test and automatic zero calculations are not effective until July 2009. </p>
<p>I wonder if that means the January 2009 FAFSA EFCs will be calculated using the old methodology then changed or it the calculation will actually incorporate the change in jan 2009 as the EFC is for the 2009-2010 schoolyear.</p>
<p>Also the increase in student income protection is not till 2009.</p>
<p>maybe they will slowly phase it in like they did with HERA and the efc recalculation.</p>
<p>or maybe the 2009-2010 fafsa application will show the changes...who knows!!</p>
<p>is there anybody in forum-land that might know more than swimcatsmom and me?</p>
<p>if so please chime in.</p>
<p>To be honest, I should know more....as Financial Aid is my life...but I know even less. The highlights posted on the websites listed in this thread aren't even being covered or discussed in Financial Aid Administration circles. No one seems to know about the increase to 3rd and 4th year loans or to the aggregate loan limits. I even spoke with a couple of Directors who hadn't heard about those provisions. Something is wrong somewhere...because the front line hasn't been informed!</p>
<p>i found this on hewi.net:</p>
<h1>9/24/07 PRESIDENT TO SIGN EDUCATION BILL THURSDAY</h1>
<p>At an enrollment ceremony last Tuesday, House Speaker Nancy Pelosi signed H.R. 2669, the College Cost Reduction and Access Act, and the bill will go Thursday the President Bush for his signature. The bill:</p>
<pre><code>* Cuts interest rates in half on subsidized student loans over the next four years
* Guarantees that borrowers will not have to pay more than 15 percent of their discretionary income in loan repayments, and allowing borrowers to have their loans forgiven after 25 years.
* Increases the maximum Pell Grant scholarship to $5400 over the next five years, up from $4050 in 2006.
* Expands eligibility through needs analysis to include and serve more students with financial need.
* Eliminates tuition sensitivity to help the neediest students at the most cost efficient schools.
* Provides upfront tuition assistance to qualified undergraduate students who commit to teaching in public schools in high-poverty communities or high-need subject areas.
* Provides loan forgiveness after 10 years for public servants, including military service members, first responders, firefighters, nurses, public defenders, early childhood educators, librarians, and others.
* Establishes a partnership with federal, state and local government entities and philanthropic organizations through matching challenge grants aimed at increasing the number of first generation and low-income college students.
</code></pre>
<p>just when you thought a veto was coming, this happens:</p>
<p>White House Cancels Veto Threat Of College Cost Reducting Bill</p>
<p>September 26, 2007 4:21 p.m. EST</p>
<p>Ayinde O. Chase - AHN Staff
Washington, D.C. (AHN) - President Bush will sign the College Cost Reduction and Access Act, H.R. 2669, into law on Thursday morning. The move comes amid overwhelming bipartisan support for the bill in Congress and among the public, the White House is now backing down from previous veto threats.</p>
<p>The bill has been supported by both political parties and a wide range of groups that represent millions of students, parents and recent college graduates. Including the National Education Association, US PIRG, NAACP, Rock the Vote, American Medical Student Association. Opponents of the bill included big banks and other private and commercial lenders, including Sallie Mae, Citibank and Nelnet.</p>
<p>Congress sent the legislation to the president last week with veto proof majorities in both houses. It was approved 292-97 in the House and 79-12 in the Senate. The legislation provides the largest increase in student aid since the G.I. Bill, cutting $20 billion in subsidies to student loan providers and redirecting the funds to students. Changes will begin to take effect on Monday, Oct. 1.</p>
<p>New government data shows that the cost of college is rising and for many its growing further and further out of reach for more American families.</p>
<p>According to a report recently released by the Campaign for America's Future undergraduate tuition and fees for a public four-year institution increased by 37 percent over the last six years, while median household incomes fell in that same period.</p>
<p>looks like the signing of the bill is gonna happen ladies and gents!</p>
<p>i anticipate bedlam among those in the student loan and financial aid communities as they try to interpret this important piece of legislation.</p>
<p>Thank you for the update baker :)</p>
<p>Now I just need to wait for the finaid website to process and update the information - they usually put it in terms I can understand. Well actually I think I understand most of it but some bits need to be put into real peoples English so I can be sure I am really understanding it.</p>
<p>i am sure the update will occur soon swimcatsmom. the financial aid community is usually quick to update anything that is passed by congress and signed by Bush.</p>
<p>you might want to check ifap.ed.gov soon to see if they have updated information---this is the site that i referred to when HERA went into effect (it's for financial aid administrators, but i sometimes check it for new information (i feel it's beneficial to stay a step or two ahead of my financial aid counselor--they are constantly amazed as to what i know before they know it)).</p>
<p>another good site to check from time to time is studentaid.ed.gov (that is the site for parents and students). they usually post updates to the financial aid process there.</p>
<p>You sound a bit like me - I have both those sites bookmarked already ;) I just really like to know how things work so like to keep up to date with the EFC formula. Just drives me nuts to put in numbers and have a figure come out and not know how it was arrived at. </p>
<p>And I have found knowledge in this case to be a valuable thing. Last year we missed the simplified needs test because we had to file a regular 1040 because my DH overpaid State taxes a few dollars the *previous*year and the rebate was taxable - and the only way to report it is on the 1040. That few dollars overpayment cost us more than a few dollars in financial aid! Course now that I understand it all they are changing it.</p>
<p>i also keep up to date with the EFC formulas as they change from year to year.</p>
<p>i am glad that in 2009, if i read the rules right, i wont have to report my social security and ssi benefits on the fafsa anymore. reporting them cost me hundreds of dollars in lost financial aid every year, and i am very happy that in 2009 i can look forward to seeing a zero EFC on my student aid report!</p>
<p>swimcatsmom:</p>
<p>it's official!!!</p>
<p>bush has signed the bill (h.r. 2669) into law.</p>
<p>now here comes the fallout from the student loan lenders.</p>
<p>you should see an update shortly from the federal financial aid websites, so keep checking!</p>
<p>Thank you for the update. Sure wish those interest rate reductions on federal loans were going to be speedier - my kids will only benefit a little. So far we have not had to contend with any private lenders thankfully.</p>
<p>(Sec. 604) Excludes untaxed distributions from qualified education benefits as income or assets in computing expected family contributions in student aid calculations. <a href="http://www.thomas.gov/cgi-bin/bdquer...:@@@L&summ2=m&%5B/url%5D">http://www.thomas.gov/cgi-bin/bdquer...:@@@L&summ2=m&</a></p>
<p>Does this mean that funds withdrawn from a 529 plan are not to be added toward income or asset on the FAFSA?</p>
<p>if i read that section correctly, i would have to say yes.</p>
<p>I thought they already were not added to income for FAFSA so long as they were for qualified expenses. This year is our first time withdrawing money from the 529 account and somehow i had the idea it would not affect next years EFC - am I (or hopefully was I if it has changed) in for an unpleasant surprise?</p>
<p>i will have to look at the new rules and get back to you on that one swimcatsmom.</p>
<p>here's what i have found out:</p>
<p>Treats a qualified education benefit as: (1) the parent's asset when considering the family contribution for a dependent student; and (2) the student's asset when considering such contribution for independent students
.
Excludes from need analyses any untaxed distributions from state prepaid tuition plans or Coverdell education savings accounts. </p>
<p>i hope that answers your question...</p>
<p>Thanks Baker - I guess i had thought the distributions were already not included in the FAFSA calculations. Hmm - where did I get that idea. Well the law has caught up with what I already thought it was - that doesn't happen often ;)</p>