Things You Need to Know About the New Higher Education Opportunity Act

The Higher Education Opportunity Act of 2008, which was signed into law on August 14 2008 by former President George W. Bush, is five years overdue. Perhaps that's because it's about 20 times longer than the Higher Education Act of 1965 that it modifies or simply the sticky wheels of Congress.

Assuming you won't sit down and read the entire act (it's 1,158 pages!), here are 10 things you need to know about the new law. So let’s cut through the clatter and puff and get right down to it.

1. The Higher Education Opportunity Act encourages colleges to decrease costs and increase transparency. To promote greater accountability, colleges will now be required to report their reasons for tuition increases. Plus, colleges must provide information such as tuition prices, graduation rates, and popular majors right on their Web sites. College sites will also feature calculators so students can compare schools and estimate their college costs.

2. The Higher Education Opportunity Act strives to restore integrity and accountability to student loan programs. In order to protect students from aggressive marketing practices, lenders must now disclose all of their borrowing options for taking out and repaying student loans, including the terms and conditions of both federal and private student loans.

3. The Higher Education Opportunity Act strives to simplify the federal student aid application process. The Free Application for Federal Student Aid (FAFSA) process will be streamlined and low-income families will be able to utilize a two-page FAFSA-EZ form.

4. The Higher Education Opportunity Act strives to make textbook costs more manageable. Students and faculty must be given advance information on textbook pricing to help them plan for their expenses. Publishers are also required to provide pricing information on unbundled versions of every bundled textbook they sell.

5. The Higher Education Opportunity Act strives to expand college access and support for low-income, minority, and nontraditional students. Students can now receive Pell Grants year-round instead of just once per academic year. Funding has also been expanded for TRIO and GEAR UP college readiness and support programs, as well as graduate student programs at Historically Black Colleges and Universities, Hispanic Serving Institutions, and Predominately Black Institutions.

6. The Higher Education Opportunity Act strives to increase college aid and support for military families. Active duty military personnel and family members can benefit from a new scholarship program, and veterans can take advantage of new support centers to help them succeed in and graduate from college.

7. The Higher Education Opportunity Act strives to ensure equal college opportunities for students with disabilities. Students with disabilities will have greater access to Pell Grants and other need-based aid, as well as improved education materials and facilities.

8. The Higher Education Opportunity Act strives to boost campus safety and disaster readiness plans. All colleges will develop and implement state-of-the-art emergency systems and campus safety plans. There will also be a National Center for Campus Safety at the Department of Justice as well as a disaster relief loan program to help schools recover and rebuild in the event of a disaster.

9. The Higher Education Opportunity Act encourages colleges to adopt sustainable and energy-efficient practices. Colleges will benefit from a grant program to help them design and implement sustainable practices; they can also participate in a first-ever higher education summit on sustainability.

10. The Higher Education Opportunity Act strives to strengthen America's workforce and competitiveness. New loan forgiveness programs will encourage students to enter public service occupations such as firefighter, teacher and nurse.  Teachers will also be actively recruited for high-demand science, technology, and foreign language fields. 

It is important to know what the rules are so that we can utilize the system to your advantage. It is kind of like if you don’t know the rules to football, and you are sitting 6 inches away from a first down. Now if you did not know the rules you may attempt a passing play instead of just taking a half step forward.

Knowing when to rush, run or pass is critical in the college financial aid game. The difference can be in stretching that dollar out as far as possible by getting another first down.

J.D. Wyczalek (why-zall-ick) is quote "If you know how the financial aid and college admittance game is played you can stack the deck in your favor legally."

For months we at AZCollegePlanning.com have been saying that people who would otherwise qualify for Pell Grant money arent even bothering to apply for financial aid.  In the Herald, Mark Rosenberg, the former chancellor of Floridas State University System, confirmed this by citing a recent study that “a significant group of Pell-eligible students attending universities did not take the time to apply for the grant”. 

In other words, they didnt complete a FAFSA when they should have.  And had they completed a FAFSA, they would have qualified for free money!

So, why didnt they submit a FAFSA?  For starters, they probably thought they make too much money to qualify for federal aid. 

This is the number one reason why people dont bother applying. Perhaps you think you make too much money to qualify.  Perhaps you would be wrong.

A second reason could be that parents are intimidated by the form itself.  One parent who came into our office started the FAFSA then stopped when it came to the networth question. If this form is filled out incorrectly the likelihood of financial aid is not very good.

According to a recent NY Times article, President Obamas Secretary of Education, Arne Duncan, explained during his confirmation hearing that “You basically have to have a Ph.D. to figure" out the FAFSA.

There are many other reasons why people dont complete a FAFSA.  But what you need to think about is why you should complete one when your student is applying for college:  You can get free money and other assistance that will make college more affordable.

In his article, Rosenberg calls for an “invigorated effort” to get the word out that financial assistance is available. 

Certainly we at AZ College Planning have put forth an “invigorated effort”, offering free workshops to the public on financial aid and how to pay for college.  We have one more workshop this month, and three more scheduled for April. The Civic Center Library filled up completely. Hopefully the Fire Marshall wont cringe at the at-capacity workshop.

If you have college-bound high school students, and youre wondering how the heck youre going to pay the college bill, dont miss this chance to see us live and in person. 

Register for the workshop now, click the RSVP Workshop button.

Well I stuck my neck out and ended up getting hit smack in the kisser! Sometimes you have to step in front and take the bull by the horns.

I was going to post pictures of my black and blue badge of pride on the blog, but alas my wife said not to.

Returning from my indoor soccer game to a bag of ice and some (very little) sympathy, I explained the situation of how instead of heading the ball it was more of a face-er.

So now I am sticking my neck out one more time. (Will he ever learn?)

In the college workshops parents have been starving for information about how the entire college financial aid process, admission and everything else works. Needing more because with more information and knowledge then and only then can you the parent and the student make smart intelligent decisions about college, career and major.

The final and finishing touches on the new project and website are being concluded as we speak. The launch date is set for May 1st. A pre-launch date (TBA) is set before the official launch.

This website has everything that you want to know and need to know about selecting a career, major and college (in that order!) as well as strategies on how to not go broke paying for college.

Assessment tools, PDF documents, videos, college-cost calculators, tons and tons of information and links to help guide you and your student through choosing a career (even if you have an idea or no idea at all about what career to go into), and information on selecting the right major and finally strategies on selecting a college. Selecting a good fit college can mean the difference between busting the bank or not.

Must have information that you need to make smart decisions about careers, colleges and majors.

Are we in hot water concerning the Obama administration's proposal for student loans?

First and foremost, the key is positioning of both student and assets to capitalize on what is available. Understanding the intricacies of how the financial aid system works will give you that slight edge and it will make a difference.

Okay here are the highlights on the proposal:

• The Obama administration has proposed the broadest overhaul of federal college aid programs in decades
• Congress still has to vote and approve it
• The earliest the change could take effect is July 2010
• Pell Grant maximums would increase from $4,731 to $5,550
• Perkins/Stafford loan amounts would increase 
• Qualifications for these loans would lax allowing more to qualify
• Due to higher number of qualified applicants, deferred subsidization would be eliminated

Article in the New York Times  What's in the New Student Loan Proposal

Learn the intricacies of how the financial aid system works at a local workshop. Click the RSVP workshop button for dates and locations.

AZCollegePlanning.com your one source for college news, tips and the latest on financial aid!

President Obama promised to make college affordable. Governor Schwarzenegger promised to make California the great economic state that it once was.

Trouble is afoot in sunny Cal. Reminiscent of the sit-ins from the 60’s and 70’s UC Davis students decided to protest in a most unusual way.

Students from UC Davis posed a mock funeral, faux-funeral as a representation of the exorbitant fees charged to attend UC Davis. Fees high enough to kill them and make them slaves to debt.

We will see if anyone from Capitol Hill or the Capitol of California is listening.

This article was published by MSNBC.

Fake Funeral Questions College Affordability University Of California Students Pay More Than Texas, SUNY

DAVIS, Calif. - 3-2-09 It'll never rival the pubs, but with another tuition hike looming next fall, the financial aid office at the University of California, Davis is a popular student stop.

Almost two-thirds of UC Davis students receive some form of assistance. But a growing number of university students feel the promise of affordable education is dying, so they staged a mock funeral Monday to dramatize their view.

"Accessibility is definitely in danger in the UC. We've had tuition and fees go up, while aid is being cut," UCLA student Brandon Harrison said.

A year's tuition at the University of California is about $9,500, about $1,000 more than the University of Texas and roughly double the tuition at the State University of New York.

The University of California disputes the argument that students are being shut out of access to higher education, pointing in part to an ongoing financial aid program aimed primarily at students from low-income families.

"What we're saying is, if you make $60,000 or less and you're in your first four years of college, you will be covered for your fees," interim financial aid direct Katy Maloney said.

But that leaves out a large group -- middle-income students, who take out student loans. And that's where the real burden lies: The students garner heavy debt to be paid off years into the future.

In response to these concerns, a Democratic lawmaker from Los Angeles authored a new bill that would tax millionaires in California to provide more funding for state universities. That measure would require a two-thirds vote to pass in the California Legislature.

original article

Don't rush college admissions process, report says

By Mary Beth Marklein USA Today

New research offers yet another argument for why high school students should avoid the college early-admissions frenzy: They may be more likely to regret their decision later in life.
Bad timing is the culprit. "Many young people are being pressured into making college choices before they are developmentally ready," says Michigan State University sociologist Barbara Schneider, author of a report released last week that examines the psychological and social implications of admission policies.

Though she says that case "has yet to be made empirically," she cites her forthcoming research suggesting "students who make these choices very early, without having opportunities to explore other options, (in their 20s) report some dissatisfaction with their college choices and lives."

David Hawkins of the non-profit National Association for College Admission Counseling says the findings support some members' concerns that students are being rushed. The group's 2005 survey found that 25 percent of responding colleges accept some applicants before they start their senior year. Some recruiters have waived application fees or offered priority housing to students who apply as juniors.

The group now bars colleges from admitting a student until after they get a junior year transcript. Harvard, Stanford and other selective schools have softened binding early-admission policies so that admitted students could apply elsewhere, too.

Traditionally, students applied early if they were sure they would enroll there. Adam Sapp, an admissions official at Claremont McKenna College in Claremont, Calif., says that's still a good reason. But, he says, "perhaps this study will cause students and families to take more seriously the idea that (admissions) is more about fit than getting into (a selective school) four months ahead of their neighbor."

J.D.'s Comments: Choosing a college specifically for brand name is not the best reason to select a college. Fit, amenities and career contacts are excellent reasons to select a college. Research a college before applications are sent in. Visit the campus, and ask yourself "Is this where I could spend the next four years, do the kids on campus look like they could be friends of mine?"

original article

      

I had prepared days before and reviewed my notes the night before. Teleprompters and light filled the studio and every thought jumped out of my brain. However, at the last moment some coherent sounds were spoken.   

 

 

 

• Good Morning Arizona Episode 1 air date 8/27/08 http://www.azfamily.com/video/gmaz-index.html?nvid=276518 College is expensive, where should you start
• Good Morning Arizona Episode 2 air date 9/16/08 http://www.azfamily.com/video/gmaz-index.html?nvid=283170 Application, Essay and Interview Tips
• Good Morning Arizona Episode 3 air date 3/2/09 http://www.azfamily.com/video/gmaz-index.html?nvid=337286&shu=1 FAFSA, scholarships and the economy 

(call or send me an email if you would like an interviw for your publication, TV or radio.)

How the Stimulus Act affects your college savings...

The $787 billion American Recovery and Reinvestment Act of 2009, signed by President Obama, could have an impact on how you build and spend your 529 college savings account. One change made by the Act: The list of eligible 529 expenses is expanded to include purchases of computer technology and equipment, along with Internet access for students and their families. However, this expansion applies only to the years 2009 and 2010; starting again in 2011, computers etc. do not qualify unless required by the educational institution as a condition of enrollment or attendance.

For students attending post-secondary school in 2009 and 2010, the Hope Scholarship credit is beefed up under the Act. The new temporary version, called the American Opportunity Tax Credit, is available to more families than was the old Hope credit. It can be used for the third and fourth years of college in addition to the first two years; course materials are included as an eligible expense; and the credit phases out at a higher range ($160,000-180,000 for joint filers and $80,000-90,000 for all others). Furthermore, the maximum annual credit amount increases from$1,800 in 2008 to $2,500 for this year and next (100% of the first $2,000 of eligible expenses plus 25% of the next $2,000 of eligible expenses); it can be applied against the alternative minimum tax; and it is up to 40% refundable for students not subject to the kiddie tax.

Families with a choice between the American Opportunity/Hope credit, the Lifetime Learning credit, and the above-the-line tuition deduction will almost always opt for the American Opportunity/Hope credit.

Under the anti-double-dipping rules, families will have less opportunity to take tax-free withdrawals from their 529 plans as compared with the old Hope credit because the new credit will consume more of their qualified expenses ($4,000 versus $2,000). However, they will have greater opportunity to take tax-free withdrawals from their 529 plans as compared with the Lifetime Learning credit, which uses up $10,000 in tuition costs to generate a maximum $2,000 credit.

Finally, the Act provides an incentive for your college freshman to move off campus and purchase a home by November 30, 2009. First-time homebuyers receive a 10% tax credit on the purchase price of the home, up to a maximum $8,000 credit. The tax credit must be repaid if the buyer moves away in less than three years, so beware if your child later wants to transfer schools. Housing costs qualify for tax-free 529 treatment, although the student must be enrolled at least half-time, and the eligible amount for an off-campus student is capped each year to the amount reported by the school in its "cost of attendance" summary.

 ( Article By Joe Hurley)

 Also review the Recovery website http://www.recovery.gov/

Read the entire act here all 407 pages 

Obama would spend more to make college affordable
By LIBBY QUAID and JUSTIN POPE -

WASHINGTON (AP) - President Obama on Thursday proposed a huge expansion of the government's role in making college more affordable and putting it within reach of more students.

In his budget plan, Obama seeks to link growth of the Pell Grant program to inflation for the first time since the program began. It would grow by more than 75 percent over the next decade.

Obama also seeks to overhaul the student loan system by ending a massive program of government-subsidized loans made by private lenders. Instead, he would boost direct lending by the government in an attempt to save money and protect students from turmoil in financial markets.

"Our basic thought is, rather than continue to subsidize banks, we want to help dramatically more students get more access to more aid," Education Secretary Arne Duncan said on a conference call with reporters.

The changes in federal aid, an Obama campaign promise, would transform a long-standing partnership between the government and the private sector.

Last year, private lenders made $56 billion in loans to about 6 million students under the subsidized Federal Family Education Loan, or FFEL, program. The government set the terms of and backed the loans, and supporters say it helped students by giving them private-sector capital and good customer service.

Obama's plan would end subsidized student loans in 2010, though officials said private-sector lenders would still be hired to service direct government loans. Last year, the government made $14 billion in loans to 1.5 million students.

Another $18 billion is borrowed directly from private lenders, usually after students have maxed out on their eligibility for federal loans.

The budget announcement sent shares of student lending companies plummeting. Shares of SLM Corp., better known as Sallie Mae, sank 31 percent; Student Loan Corp. fell 22 percent; and Nelnet Inc. dropped 54 percent in trading Thursday.

Kevin Bruns, a spokesman for the trade group America's Student Loan Providers, said the subsidized program has given families uninterrupted access to student loans.

"It has been a rare source of stability," Bruns said. "Now is not the time to talk about abolishing it."
The budget plan was embraced by Democrats on Capitol Hill, where House Education and Labor Committee Chairman George Miller of California said the student loan overhaul would save billions of dollars and make student loans more reliable. Massachusetts Sen. Ted Kennedy, D-Mass., chairman of the Senate Health, Education, Labor and Pensions Committee, said, "The doors to college will be far more open."

Democrats applauded Obama's effort to keep Pell Grants growing. Lawmakers have frequently failed to do so, even as college costs zoomed.

In the 1980s, the maximum Pell Grant covered half the average cost of a public four-year college; by 2006, it covered less than a third. Pell Grants mostly support students from families earning under $30,000 a year.

Obama proposes to take Pell Grants out of lawmakers' hands, giving the program a mandatory stream of dollars like Social Security and Medicare, and to index Pell Grants to the annual inflation rate.

The newly enacted economic stimulus bill will raise the maximum grant, currently $4,731, to $5,350 on July 1 and to $5,550 next year.

J.D.'s Comments: Although the student loan system does need reform and to trim the fat, most of Obama's proposals will benefit families and individuals living under the poverty line. Statistics show that less than 10% of Americans live below the poverty line. So what about the other 90%? From a governmental perspective it is a good move to help those who are under the poverty line. Simply stated if they (people & individuals under the poverty line) earn a degree, certificate or trade and are employed, these people will make more money thus pay more taxes. So the other 90% are left to fend for themselves and pay full sticker price for college unless they understand how the system works and use it to their advantage legally.

orignial article & another related article

5 questions for Harvard's admissions dean
By Tracy Jan, Globe Staff | February 24, 2009

Five questions for William R. Fitzsimmons, Harvard University's dean of admissions and financial aid.

Q: You recently lead a high-profile commission that recommended de-emphasizing the SAT and ACT from admission requirements. A number of colleges have already made the tests optional. Do you see this ever happening at Harvard?

A: We do not foresee a time that Harvard would be test optional. Only a few years ago we were receiving applications from about 5,000 high schools each year and now the number has grown to over 8,000. We need some common yardsticks that enable us to gauge in a rough way what is being learned in an ever-increasing and diverse high school context, not to mention the increasing number of students who are home-schooled.

We continue to believe that the College Board's Subject Tests, along with either the SAT or ACT with the writing tests, allow students the best opportunity to demonstrate what they have learned thus far. Advanced placement and international baccalaureate results are also helpful.
J.D.'s comment: there are over 750 colleges that do not require standardized testing, while some schools exempt students who meet grade-point average or class rank criteria.

Q: Starting in March, students who take the SAT have the option of only reporting their best scores to colleges. The "Score Choice'' policy, which you support, is controversial. What is your response to high school students and counselors who say it helps the wealthiest students, who can afford to take the SAT multiple times?

A.: Score Choice rests on the same principle that has supported our admissions process for decades: that applicants should be free to present their own best case. We have always counted an applicant's highest test scores and have allowed students to decide whether they wanted to send all their test scores. That same belief to choose how best to make the case for admission underlies our long-standing invitation to submit essays, CDs, academic or creative projects or anything else that best represents academic, extracurricular, and personal accomplishments.

We seek to bring to Harvard students with the maturity and independent mindedness to exercise choice responsibly. The fact that test results will not automatically be part of the permanent record may also help to alleviate some of the stress that pervades the college admissions process and distorts the junior and senior years of high school.

Standardized tests are only one factor among many in Harvard's holistic admissions process. The Committee on Admissions has always taken into account the fact that test scores can be affected by such factors as schooling, intensive test preparation and socioeconomic background. We have long been aware that the test-taking experience of students may be affected by their financial and educational resources. In particular, we recognize that students from modest economic backgrounds have a limited number of fee waivers for tests and may not be able to take them as many times as affluent students.
J.D.'s comment: having money or not is not a good excuse for poor grades or test scores. Free resources are available to help any student. Check with a local library for SAT prep books, online resources like number2.com or collegeboard.com have an ACT or SAT question of the day.

Q: You recently recruited students in China, saying there is no limit on the number of international students Harvard may accept. What would you say to a student from a small town in Massachusetts who's afraid of being supplanted?

A: First and foremost, Harvard will always be a Massachusetts and New England institution. We work extremely hard on our recruiting and outreach in Massachusetts and New England because we feel it is vital for Harvard to play an important role in educating the future leaders from the place that has done so much to shape its mission. We have always had a policy of admitting a Boston or Cambridge student over others when the credentials are approximately equal.

In the same way, we pay special attention to students from Massachusetts and the rest of New England. Students from our home area benefit enormously by living with and learning from classmates who come from all parts of the United States and abroad. We will continue to seek the best students from around the nation and throughout the world.
J.D.'s comment: no comment

Q: Do you think Harvard's recent financial-aid initiative succeeded in making the incoming classes more economically diverse?

A: Our recent financial aid enhancements have had a dramatic effect on the economic diversity with the incoming classes. Under our new financial aid initiative, families with incomes of $60,000 or less are not required to contribute to the cost of a Harvard education -- while those with annual family incomes of $60,000 to $180,000 incomes are

asked to contribute 0-10 percent of their incomes. Students are not required to take out loans and we do not take home equity into account in calculating financial aid.

There has been an increase of approximately 30 percent in the number of students from families of incomes of $80,000 a year and below. In addition, approximately 60 percent of the incoming freshman class this year is receiving need-based grant/aid, compared to less than 50 percent only a few years ago.
J.D.'s comment: Interesting move. Other colleges are following in suit and reevaluating their financial aid packages and system.

Q: What would you like Harvard's student body to look like in 10 years?

A: In the next decade and beyond we will continue to reach out to students from near and far to attract those who bring academic, extracurricular and personal excellence to Cambridge. We anticipate that financial aid will become even more important in the years ahead and that more students from low- and middle-income families will need< financial assistance to be able to attend college.

Original post