In today’s webinar unveiling the National Conversation Initiative’s recommendations, I introduced the NCI this way:

It has been one year since the NASFAA Board of Directors, reacting to Dr. Day’s enthusiasm, foresight and recommendations, unanimously approved moving forward on National Conversation Initiative.  Make no mistake, this is a “game changer” for NASFAA and places NASFAA once again in the forefront as the national leader in defining financial aid policy and providing the necessary training opportunities for the nations’ students and the financial aid profession to be successful. The National Conversation Initiative clearly places financial aid professionals across this country in the position to Lead rather than Follow in the important financial aid policy discussions and decisions ahead for this nation.

In just seven short months, NASFAA has performed what I view as a minor miracle in developing the thirty recommendations.  NASFAA has tapped into the wealth of experience, know-how, and commitment reflected in our membership – the professionals who know best about what needs to be done to improve the current system of Student Aid in this country.  Special thanks to the NASFAA Board of Directors who spent considerable time and provided detailed input into the review of the document you see before you.  Also, words cannot express my appreciation for the tireless dedication of the NASFAA staff in synthesizing and distilling nearly 5,000 pieces of data inputs in such a short period of time to produce this document.

Please understand that while this appears to be the end of a process, it really represents only the beginning of a continuing dialog as those of us committed to access and choice for the nation’s students will continue to discuss and refine these recommendations over the next few years.

So, how do you react to the NCI recommendations?  Do you see this as a watershed event for NASFAA?  Please give NASFAA your reactions and continued input as the NCI moves forward into the NCI process’ third and fourth stages.

The Department of Education recently unveiled a proposal to simplify the student aid programs by simplifying the FAFSA, creating a Federal Student Aid Target (FSAT) that sets the maximum amount of aid the neediest student could receive, establishing a Federal Student Aid Commitment (FSAC) that determines a particular student’s eligibility, and consolidating aid programs into a single grant, loan, and work study.

Specifically the proposal includes six recommendations:

1. Use Internal Revenue Service Adjusted Gross Income and Number of Exemptions Claimed to determine a student’s eligibility for federal aid.
2. Connect AGI/Exemptions to the Department of Health and Human Services Poverty Levels to determine award size.
3. Replace the current FAFSA with a two-page, less than 30 question version that asks only for information that is easily obtainable, verifiable, and necessary to determine eligibility and award levels.
4. Establish a Federal Student Aid Target (FSAT) that is based on 100% of tuition and fees, books and supplies, and room and board at a public, two-year college.
5. Establish a Federal Student Aid Commitment (FSAC) that is based on 250% of respective poverty levels for grants and 400% of respective poverty levels for work study and subsidized loans.
6. Consolidate federal aid programs into single grant, work-study, and loan (FFEL and Direct Loan) programs.

While I fully support the Department of Education’s stated goals of simplifying the student aid program and targeting aid to the neediest students, I have heard several questions and concerns about the latest proposal.

1. Does the plan go far enough?
2. Are adjusted gross income and tax exemptions an effective way to identify need?
3. Will this plan force states and institutions to require additional aid applications?
4. What are the consequences of abandoning the cost of attendance?
5. How will basing the “Federal Student Aid Target” on public, two-year colleges affect student aid award amounts?

Clearly more details about the Department’s proposals are needed to be able to fully analyze it and the plan must be vetted among financial aid administrators to evaluate effectiveness.

Now it’s your turn. What do you think of the Department’s plan? What do you think about the questions and concerns I’ve listed? I look forward to reading your input.

With the College Board’s recent release of the report “Fulfilling the Commitment: Recommendations for Reforming Federal Student Aid” a panel of researchers, policy experts and higher education wonks deserve credit for igniting discussion on simplifying and reforming the student aid processes and programs.

NASFAA itself will shortly release findings from a simplification survey from members conducted earlier this summer. And, Phil Day has been in discussions with the College Board and others about moving this agenda forward as part of NASFAA‘s access initiative – the National Conversation Initiative (NCI). You will hear more about NCI in the coming months. If you plan to attend one of the regional association meetings, town halls have been set up for you to give NASFAA feedback on the issues that most concern you.

Here’s a short list of topics raised by the Rethinking Student Aid Group that I’m throwing out for discussion:

·         FAFSA -  Eliminate and obtain all information from the IRS;

·         Pell Grants – Based on family size and AGI; families receiving means-tested benefits would automatically qualify; link increases to the CPI; and, fold ACG, SMART and TEACH back in to Pell;

·         Tax Credits – Maintain, but consolidate into one program;

·         Loans – End in-school subsidy, directing the savings toward helping students repay their loans;

·         College savings accounts – Establish tax-free accounts for low-income children (potentially Pell Grant qualified);

·         Aid Programs – Eventually replacing the federal campus based programs, schools would receive block grants based on their proportion of Pell-eligible students enrolled and retained for a second year.

So put on your thinking caps.  Let’s call school into session and raise our voices on what reforms are necessary to simplify the process and the programs we work with.  Give NASFAA your feedback on the panel’s recommendations as well as other ideas you may have. You may contact NASFAA directly, your board representative, or come prepared to discuss these topics at your upcoming regional association meeting.  As financial aid practitioners our voices need to be heard.  By using NASFAA as the conduit for change, we will help students and families achieve increased levels of access and choice.