Federal Update from FSATC 2021

By Rick Cox

Negotiated Rulemaking just concluded, and negotiators were unable to reach consensus on all of the issues of college affordability, school responsibility, and student loans. We should expect proposed rules next spring.

The 2024-2025 award year should be when financial aid professionals begin to see the new Student Aid Index, which will replace EFC.

The SAI will only use income from the Internal Revenue Service.

The Department of Education is making provisions related to Public Service Loan Forgiveness to allow payments that normally would not count for PSLF purposes. The limited waiver only applies to student borrowers who have a Direct Loan, have consolidated into the Direct Loan Program, or will consolidate into the Direct Loan Program by Oct. 31, 2022.

The department intends to use phone calls, text messages, emails, and social media to reach borrowers about the resumption of loan payments.

For 2022-2023, the department has asked colleges and universities to identify Adjusted Gross Incomes of $1. Institutions should request the IRS Record of Account from the applicant (or parent) to resolve this.

For IPEDs reporting, HEERF funds and FSEOG Emergency Grant funds should be counted as federal aid but not Title IV aid. This will ensure net cost information is not affected by these additional funds.

Rick Cox is Global’s Executive Director of Regulatory Affairs and Compliance.