california student aid commission tae kang cal grant operations manager justin watkins cal grant...
TRANSCRIPT
California Student Aid Commission
Tae Kang
Cal Grant Operations
Manager
Justin Watkins
Cal Grant Operations
Mgmt. Services Tech
Bryan Dickason
Program Administration
Manager
Presenter In Chat Room In Chat Room
To hear the audio portion of this webinar, Please call:
1-877-669-3239
Enter Access Code: 664 757 977
Today’s Webinar…. Phones will be muted until the end.
If you have any questions, please use the Q & A feature to the right (Bryan and Tae are available to answer questions).
At the end of today’s session, you will be prompted to complete a brief survey.
This presentation is currently available at www.csac.ca.gov under the link “About Senate Bill 70”
SB 70 UpdateAs of 8/3/2011
1. Cohort Default Rate (CDR)
2. How SB 70 affects New Cal Grant Applicants
3. How SB 70 affects Renewal Cal Grant Recipients
4. Changes to processing Renewal Recipients
SB 70 – 1. CDR
1. Senate Bill (SB) 70, the education finance trailer bill for the 2011 Budget Act, requires Cal Grant-participating institutions with more than 40 percent of their undergraduate students borrowing federal student loans to maintain a three-year Cohort Default Rate (CDR) of less than 24.6 percent in the 2011-12 academic year and less than 30 percent for each year following.
SB 70 – 1. CDR
List of all Cal Grant participating Institutions
Institutions with MORE than 40% borrowing Federal Student Loans
Institutions with 40% or LESS borrowing Federal Student Loans
These institutions are NOT affected by SB 70’s CDR requirement
These Institutions must maintain a three-year Cohort Default Rate (CDR) of less than 24.6% in the 2011-12 and less than 30% for each year following.
CSAC Homepage
SB 70 – 2. New Applicants
How does SB-70 affect New Cal Grant
Applicants?
SB 70 – 2. New Applicants
00 4 94 0 Patten College
Student fills outs FAFSA
Student Lists an ineligible school on their FAFSA
SB 70 – 2. New Applicants
Recipient’s Cal Grant Award on Hold
SB 70 – 2. New Applicants
SB 70 – 2. New Applicants
Student must log on to WebGrants for Students and requests a school change to an eligible school
SB 70 – 2. New Applicants
Student chooses school change to an eligible institution.
SB 70 – 2. New Applicants
Leave of Absence
SB 70 – 2. New Applicants
New Students who attend an ineligible CDR Institution……
Will remain on roster, but not payable. They can only do a school change.Should the school become eligible, they
can receive payment.Schools can customize roster to identify
all new recipients.
SB 70 – 3. Renewals
How does SB-70 affect Renewal Cal Grant
Recipients?
SB 70 – 3. Renewals
Requires renewal Cal Grant recipients to meet the same maximum income and asset ceilings that initial Cal Grant recipients must meet.
Requires renewal Cal Grant recipients to meet the same financial need requirements that initial Cal Grant recipients must meet.
Renewal students who decide to remain at an affected institution will see a 20% reduction in their Award amount.
SB 70 – 3. Renewals
The adjusted maximum levels in place in the year of renewal
The levels in place in the 2010-11 academic year
The income and asset levels renewals must meet shall be the greater of:
The adjusted maximum levels in place in the year of renewal
The levels in place in the year of the initial Cal Grant award.
Scenario 1: Recipient is awarded a Cal Grant before the 2011-12 budget year
Scenario 2: Recipient is awarded a Cal Grant in the 2011-12 year and each year following.
The income and asset levels renewals must meet shall be the greater of:
SB 70 – 3. Renewals Example
Student awarded Cal Grant A in 2009-10
Income Ceilings for a family of four
2009-10 - $79,700
2010-11- $80,200
2011-12 - $78,100
2012-13 - $81,500
Scenario 1
SB 70 – 3. Renewals Example
Student awarded Cal Grant B in 2012-13
Income Ceilings for a family of Five
2015-16 - $48,000
2012-13 - $49,200
2013-14 - $50,000
2014-15 - $50,600
Scenario 2
SB 70 – 3. Renewals
SB 70 – 3. Renewals (Need)
What is the old renewal need?
$100
What is the new renewal need under SB70?
Cal Grant A- Cal Grant A award amount + $1,500
Cal Grant B- At least $700
Cal Grant C- Cal Grant C award amount + $1,500
SB 70 – 3. Renewal Need
20% Reduction in Cal Grant Award
**Only T/F has been reduced, Cal Grant B Access remains unaffected
SB 70 – 3. Renewals (Award)
SB 70 – 4. New Changes
What changes have been made to the renewal
process due to SB 70?
SB 70 – 4. New Changes
Making Grant Record Changes◦Withdrawing ineligible students◦Renewal corrections
New WebGrants reports available
School Changes
New Correspondence
SB 70 – 4. New Changes
Making Grant Record Changes
Schools may use the Grant Record Change process to withdraw renewal students who fail to meet income/asset ceilings or minimum need during the federal verification process.
In the past, schools could simply insert an annual need amount of less than $100 on the roster to withdraw a renewal student. However, since the minimum need formulas have changed through SB 70, schools can use the Grant Record Change process in WebGrants to withdraw ineligible renewal students.
SB 70 – 4. New Changes
Making Grant Record Changes
As indicated in the renewal disqualification letter, a student may be re-evaluated for the renewal process due to changing financial circumstances or an error on the FAFSA.
Non University of California (UC) institutions:
Students are instructed to contact the financial aid office of their school of attendance. Financial aid administrators who determine a FAFSA error has been made or approve professional judgment for disqualified Cal Grant students must make the ISIR correction for renewal consideration by the Commission. For the renewal cycle, the Commission will only automatically process ISIR corrections submitted by any school.
University of California (UC) institutions:
Students are instructed to make the ISIR correction themselves on the www.fafsa.gov website and not contact the UC financial aid office. UC financial aid administrators will determine if the ISIR correction submitted by the student will impact their Cal Grant eligibility. The UC financial aid administrator should submit a grant record change (G-21) in WebGrants for any disqualified students who need renewal re-processing. Complete the G-21 with the pertinent data, including which ISIR transaction number is to be processed in the “reason” section.
SB 70 – 4. New Changes (Grant Record Changes)
WebGra
nts
Paper F
orm
SB 70 – 4. New Changes (Report)
The Disqualified Renewal Students Report
This new report lists prior year Cal Grant recipients/students who were disqualified for failing to meet the income and asset ceilings and/or minimum need requirements.
Data file format available as of August 1.File layout under Help section in WebGrants.
SB 70 – 4. New Changes (Report)
SB 70 – 4. New Changes (School Changes)
School Changes
If a renewal student, who currently attends an SB 70 school, changes his/her school of attendance from that institution, they will not be able to change it back to the SB 70 school.
Once a school change from an affected institution is made, that student will no longer be able to receive payment at the SB 70 school
SB 70 – 4. New Changes (CORR)
Renewal DisqualificationLetter
Students who did not meet the income and asset ceilings and/or minimum need criteria during the renewal process were notified of their disqualification from the Cal Grant program through a new correspondence letter (enclosed) that lists the reason(s) for their disqualification.
SB 70 – 4. New Changes (CORR)
Renewal CDR School
Although SB 70 does not allow the payment of new Cal Grant awards for students attending a Cal Grant school that fell below the 24.6 percent CDR rate, a limited exception is made for students enrolled at the affected institution during the academic year before the 2011-12 academic year.
The renewal students at these affected institutions are mailed this letter notifying them of the potential decrease in their Cal Grant award if their application meets the renewal financial requirements.
