ON AUGUST 14, 2008, LIFE as financial aid officers knew it changed drastically. That day, President Bush signed the Higher Education Opportunity Act (HEOA) into law, setting into motion many changes that will directly affect operations in the financial aid office as well as operations in other offices on campus. The law touches just about every office on campus, including admissions, athletics, bookstore, campus security, career services, disability services, registrar, student activities, veterans’ affairs, and academic areas.
Will increased student
access and affordability
ultimately be achieved?
This remains to be seen.
Heather McDonnell, director of Financial Aid at Sarah Lawrence College (N.Y.), summarizes the far-reaching impact of the new law. “Once again, financial aid is the catcher for all the higher education concerns of the U.S. Congress. So much of my time is devoted to tracking compliance with campus offices that have absolutely nothing to do with getting students the resources they need to succeed at being college students,” she says.
Certainly, coordination among various offices will be critical to ensure that compliance with the regulations and eligibility for Title IV financial aid remains intact. For some higher ed institutions, a committee approach may be best for understanding the law and establishing an action plan for compliance.
At other IHEs, these efforts may be left to a single person to coordinate (aid directors, this means you!). Financial aid directors have a clear “front and center” role, regardless of the approach. Whether they are new to the profession or are veteran aid administrators, and regardless of institution type (public vs. private, nonprofit vs. for-profit, four-year vs. two-year), these administrators are being called to exercise extraordinary leadership. Although negotiated rulemaking, specific guidance, and interpretation will take some time, organizations such as the National Association of Student Financial Aid Administrators (NASFAA) and the American Council on Education (ACE) have already begun to provide training sessions and reference documents. These actions will continue throughout the fall as many state and regional associations conduct their annual conferences and workshops. Our advice: Get involved! Get educated! Get ahead!
INCREASED BURDEN
Initial reaction to the signing of the HEOA is a mixed bag. The regulations include burdensome new reporting and disclosure requirements, attempts to simplify the financial aid application process, provisions to provide transparency of college costs and net price, and attempts to address issues in student lending.
However, while the legislation includes provisions to increase the Pell Grant and provide loan forgiveness programs, Congress must complete a separate process in order to appropriate funding to support such initiatives. Consequently, whether or not increased student access and affordability will ultimately be achieved remains to be seen.
As Kristi Jovell, director of financial aid at Suffolk University Law School in Boston, notes, “The inclusion in the HEOA of several programs providing loan forgiveness for public interest lawyers is exciting for me as director of financial aid at a law school committed to assisting our students who pursue public service careers. Admittedly, these provisions will be more exciting if the programs actually receive funding.”
NEW REQUIREMENTS
Below is just a sampling of some of the new disclosure and reporting requirements that fall within the scope of several offices on campus and must be provided to the Department of Education, current and prospective students, and student loan borrowers.
--Textbook costs. Schools must disclose required textbook information, such as the International Standard Book Number (ISBN) and retail prices.
--Federal code of conduct. Each year schools must inform all employees who have responsibilities relating to student loans about the information contained in a new federal code of conduct.
--College affordability and transparency lists. The U.S. Department of Education will publish annual national lists naming the top 5 percent of institutions with the highest tuition and fees, the highest net price, the largest percent increase in tuition and fees, and the largest percent increase in net price. These institutions must submit a written report that includes reasons for the increases and the steps that will be taken to reduce costs.
