What’s the latest news about MAP grants (including the MAP 2+2 pilot program), Pell grants, student loans, and funding for these programs? This session will provide an overview of the changes to state and federal financial aid programs for the 2012-13 school year, as well as provide updates on state and federal legislative, operational, and budgetary issues.

1. Honoring the past – Embracing the future
IACAC 2012 Conference
ISAC Update: State
and Federal
Financial Aid Issues
Presented by Sam Nelson and
Sarah Wahab Ghazi

2. “Making college accessible and affordable for
Illinois students.”
‐ Mission Statement
The Illinois Student Assistance Commission (ISAC) is the financial aid
agency in the state of Illinois that administers scholarship, grant, and
prepaid tuition programs.
CollegeIllinois.org

3. What We Know – Setting the Context
• U.S. lags other countries in higher education
completion
• Lifetime earnings are greater for those with more
education
• Annual income increases with additional education
• Unemployment during recessions is worst for those
with least education
• By 2018, 54% of Illinois jobs will require associate’s
degree or more
• Currently, 41% of Illinois residents age 25‐64 have an
associate’s degree or more

4. Percentage of Young-Adults
(Age 25-34) with College Degrees
U.S. ranks
10th among
industrial
nations
(39%)

5. Students-in-Need Do Not Complete College
% Of Students Who Complete Within 12 Years Of Graduating 8th
Grade By Income Quintile
60% 52%
50%
39%
40%
30% 24%
20%
11%
10%
0%
Lowest 2nd Lowest Top 3 Overall Average
Income Quintiles
Source: Goldberger, Susan, “Doing the Math: What It Means to Double the Number of Low‐Income College Graduates,” Minding the Gap: Why
Integrating High School with College Makes Sense and How to Do It, 2007.

6. Summary of the Problem
Source “The Illinois Public Agenda for College and Career
Success.” Illinois Board of Higher Education, 2004, p4.

7. National Goal
President Obama has set the goal:
“By 2020, America will once again have the highest
proportion of college graduates in the world.”
February 24, 2009
Vice President Biden issues call to action to boost
college graduation rates nationwide and releases
College Completion Took Kit
March 22, 2011

8. ISAC’s Big Goal
Help Illinois Increase to 60% the Proportion of Adults
with a Postsecondary Credential by 2025
Specifically, Help Illinois Increase to at Least 45% the
Postsecondary Completion Rate of Low‐Income
Students

9. ISAC’s Goal Is Consistent with
Major Foundation Goals
• Lumina’s “Big Goal”
• Gates Foundation Goal
• Complete College America
• Illinois P‐20 Council
• Illinois Public Agenda for College and Career Success

10. ISAC Can Help Illinois
Meet College Attainment Goal
• Improve high school to college transition
• Support students in college or returning to college
• Help families pay for college
• Provide high quality, informed research
• Build external support to foster systemic change
• Align agency financial strategies and support
services with program goals

11. College Changes Everything Conference
• Statewide college access and success conference
• July 12, 2012 – save the date
• Tinley Park Holiday Inn/Convention Center
• More details and registration information to come

12. FAFSA Completion and MAP Update
• Continue to encourage students to
complete the FAFSA
• 2012 ‐ 13 Suspension date for MAP ‐
March 20, 2012
• 2012 ‐ 13 MAP appropriation ~$387
million (Governor’s proposed
budget)
• 2012 ‐ 13 MAP awards determined
after state budget is approved
*Every dollar allocated to ISAC from state funds goes
t t d t i th f f t id

13. State Legislative Update
• MAP 2+2
• Illinois DREAM Commission
• College Illinois Prepaid Tuition Program

14. ISACorps
Funded by U.S. Department of
Education
Federal College Access Challenge
Grant
39 community college districts
More than 80 “near peer” mentors
Up to 2 in each community college
district
From a wide variety of backgrounds
and experiences

15. The Corps in Action
• During the 2010‐11 school year, Corps members, with your help,
reached about 156,000 people, provided one‐on‐one assistance to
almost 12,000 students, and had on‐going mentoring relationships
with almost 8,000 students.
• Between January and March of this year ISAC staff and Corps
members conducted 651 FAFSA completion workshops assisting
just under 10,000 students and their families.
• The Corps will also be key to administering the Illinois College
Planning Act. This program provides early college planning for
students from families without prior college experience. Through
the plan they can receive ongoing structured college planning
assistance beginning in 8th grade and continuing through and
including postsecondary enrollment.

16. Consolidated Appropriations Act
– 2012
See DCL GEN-12-01

17. 2012-2013 Pell Grant Amounts
• 2012‐2013 Pell maximum award ‐ $5,550
• 2012‐2013 Pell minimum award ‐ $550
• Maximum Pell eligible EFC is 4995
• Was 5273 in 11‐12

18. Auto-Zero EFC Income Threshold
• Reduces the income threshold for an automatic zero
expected family contribution (EFC) from $30,000 to
$23,000
• For the 2012‐2013 award year was scheduled to be
$32,000
• FAFSA on the Web and the Central Processing System
(CPS) have been updated, and both began 2012‐
2013 FAFSA processing using $23,000 as the auto‐
zero EFC threshold

19. Ability-to-Benefit (ATB)
• Eliminates Title IV eligibility for students without a
high school diploma (or equivalent)
• Exceptions for
• Home schooled students
• Students who were enrolled in a Title IV
eligible program of study prior to July 1,
2012

20. Ability-to-Benefit (ATB)
• Students who are or were, enrolled in a Title IV
eligible program anytime prior to July 1, 2012, may
continue to qualify under one of the ATB
alternatives –
• Passing an independently administered,
approved ATB test
• Successfully completing at least six credit hours
or 225 clock hours

21. Pell Grant Duration of Eligibility
• Reduces the duration of a student’s eligibility to
receive Pell Grant from 18 semesters (or its
equivalent) to 12 semesters (or its equivalent)
• Applies to all students effective with the 2012‐13
award year
• Calculation includes all earlier years of the student’s
receipt of Pell

22. Pell Grant Duration of Eligibility
• Calculate the equivalency by adding together each
of the annual percentages of a student’s scheduled
award that was actually disbursed to the student
• LEU – Lifetime Eligibility Used
• Once LEU reaches 600%, student no longer
eligible
• If LEU more than 500% but less than 600%,
partial eligibility for next award year

23. Grace Period Interest Subsidy
• Temporarily eliminates the interest subsidy on
Direct Subsidized Loans during the six month
grace period
• Applies to new Direct Stafford Loans for which the
first disbursement is made on or after July 1,
2012, and before July 1, 2014

24. CCRAA of 2007 Interest Rate Reductions
First disbursement of a loan: Interest rate on the
unpaid balance
Made on or after And made before
July 1, 2008 July 1, 2009 6.0 percent
July 1, 2009 July 1, 2010 5.6 percent
July 1, 2010 July 1, 2011 4.5 percent
July 1, 2011 July 1, 2012 3.4 percent

25. CCRAA of 2007 Interest Rate Reductions
• Will sunset on June 30, 2012
• All Stafford Loans, grad and undergrad, sub and
unsub, first disbursed on July 1, 2012 or later
• WILL HAVE INTEREST RATE OF 6.8%
• 6.8% WAS THE PRE‐CCRAA RATE
• Requires change in law to prevent automatic
increase

26. President’s FY 13
Proposed Budget

27. FY 13 Proposed Budget
 $5,635 maximum Pell Grant award for 2013‐2014
 Maintain the subsidized loan interest rate for
undergraduate students at 3.4 percent for
undergraduates until July 1, 2013
 Limit the duration of the Stafford Loan in‐school
interest subsidy to 150 percent of the normal time
required to complete the borrowers’ educational
program

28. FY 13 Proposed Budget
 Expand and improve the Perkins Loan program to
provide $8.5 billion in loans annually
 Provide $150 million in new funds for the Work‐
Study Program
 Reform and expand Federal allocations in the
campus‐based programs

29. Verification

30. Required Verification Items
Which elements must be verified?
1. 2. Number 3. Food
Household Enrolled in Stamps
Size College (SNAP)
5. U.S. 6. Non‐
4. Child Income Tax tax Filers
paid/Certain
Support Untaxed Income
paid Income & From
Benefits Work
Federal Student Aid (FSA) will give notice of data elements that must be
verified. Items will be listed on the Student Aid Report. In addition, a school
can choose to verify any other application items, requiring any necessary
documentation, in accordance with consistently applied institutional policies.

31. Verification Worksheet
A school is not required to use ED’s verification worksheets. It
may use its own or none at all.

32. Acceptable Documentation
Household Size Number Enrolled in Food Stamps (SNAP)
• Signed statement College • Documentation deemed
• Name & age of each • Signed statement sufficient by the
household member • Name, age of students, institution
• Relationship to applicable institutions • Ex: documentation from
applicant • Institutional statement providing agency
• Only if reason to believe
household members
attending elsewhere
• Not needed if number in
college is one

33. Acceptable Documentation
Child Support paid U.S. Income Tax paid Non Tax‐Filers
• Signed statement • IRS Data Retrieval • W‐2s
• Child’s name, amount • Tax return transcript • Signed statement
and recipient’s name • W‐2s certifying:
• Inaccurate information: • Dependent status: ‐ Individual has not filed
• Decree/custody order parents’ W‐2s and not required to file
• Copies of child support • Independent status: ‐ Sources and amounts
checks or receipts student’s W‐2 of income earned from
• Statement from support • Extension filers work as reported on the
recipient FAFSA
• Copy of IRS Form 4868
• Amendments
• Tax account
transcript

34. Acceptable Documentation for Verification
Update as of April 16th, 2012:
In the limited set of cases where an aid applicant, who
has filed a tax return and attempted unsuccessfully to
use the IRS Data Retrieval Tool or to obtain IRS Tax
Return transcripts, needs a timely alternative for
meeting the 2012‐2013 verification requirements,
institutions may, until July 15, 2012, use a signed copy
of the relevant 2011 IRS Tax Return as acceptable
verification documentation for the 2012‐13 award year.
(GEN‐12‐07)

35. Conflicting Information
A school must resolve all conflicting information before
disbursing FSA funds, except when a student dies.
Discrepant
Other Offices Subsequent ISIRs
Tax Data
EXAMPLES: Missing high Required to review subsequent Obligated to know:
school diploma; Academic transactions for a student for the (1) who is required to file
Progress; Enrollment Status; entire processing year, even if (2) the correct filing status
etc… verification has been conducted (3) limits on who can be
in an earlier transaction. claimed as an exemption
A school has an internal system to identify conflicting information that may affect a student’s
eligibility – regardless of the source and regardless of whether a student is selected for
verification.

36. IRS Data Retrieval Tool

37. IRS Tax Return Transcript & IRS Tax
Account Transcript
Both are free and can be requested online, via telephone or by mail.
An IRS Tax Return Transcript is a typed copy of what was entered on an
applicant’s original federal tax return. Most line items should be reflected –
including IRS calculations and the final determination of the amount on each
line item.
An IRS Tax Account Transcript shows basic information from an applicant’s
federal tax return including his or her marital status, return type, AGI, and
taxable income. The IRS Tax Account Transcript also reflects any changes
made after the initial filing of the tax return, including changes made by the
IRS or the applicant, such as the filing of an amended tax return.
Applicants should receive the transcript within 5 to 10 calendar days after
their request has been received.

38. Requesting an IRS Tax Return Transcript or
IRS Tax Account Transcript
Tax filers can request either a 2011 tax return transcript or a tax account transcript
from the IRS in one of three ways:
Online Request
• Available on the IRS Web site
at www.irs.gov
Telephone Request
• Available from the IRS by
calling 1‐800‐908‐9946
Paper Request
• Download IRS Form 4506T at
http://www.irs.gov/pub/irs‐
pdf/f4506t.pdf
• Mailed or faxed to:
• RAIVS Team Stop 37106
Fresno, CA 93888
• (559) 456‐5876
* Please note that tax transcripts are not the same as copies of tax returns.

39. Stay Connected
ISAC’s e‐Messaging Service
• Notifies you when new
information and/or
announcements are added to
College Illinois
• Summaries of new information,
along with links, will be sent to
your e‐mail
Get Printed Materials
• ISAC Printed Materials – www.collegeillinois.org
• FSA Publications Ordering System (FSAPubs) – www.FSAPubs.org

40. Making college accessible and affordable for Illinois students.
‐ ISAC’s Mission Statement
Deerfield
1755 Lake Cook Road
Deerfield, IL 60015‐5209 ISAC's Big Goal:
Springfield
500 W. Monroe, 3rd Floor
Increase the proportion of Illinois
Springfield, IL 62701‐1876
adults with a postsecondary
Chicago
James R. Thompson Center
100 W. Randolph, Suite 3‐200
credential to 60 percent by 2025
Chicago, IL 60601‐3219
800.899.ISAC (4722)
www.collegeillinois.org .................................................. College Illinois
The official Web site of the Illinois Student Assistance Commission (ISAC)