COHEAO Conference Call The Future of the Perkins Loan Program June 16, The Coalition of Higher Education Assistance Organizations

Transcription

1 COHEAO Conference Call The Future of the Perkins Loan Program June 16, 2014 The Coalition of Higher Education Assistance Organizations

2 Moderator: Lee Anne Wigdahl Manager, Loan Administration DeVry Education Group COHEAO Legislative Co-Chair Presenters: The Future of the Perkins Loan Program Maria Livolsi Director State University of New York (SUNY) COHEAO President Pamela Devitt Legislative Analyst University of Illinois COHEAO Perkins Task Force Chair Jan K. Hnilica Financial Services Manager Wheaton College COHEAO Legislative Chair Please your questions to: 2

3 Historical Information Higher Education Opportunity Act of 2008 Strong Support of the Perkins Loan Program SEC. 466: SENSE OF CONGRESS REGARDING FEDERAL PERKINS LOANS. It is the sense of Congress that the Federal Perkins Loan Program, which provides low-interest loans to help needy students finance the costs of postsecondary education, is an important part of Federal student aid, and should remain a campus-based aid program at colleges and universities. Student Aid and Fiscal Responsibility Act (SAFRA) 2010 Conversion to 100% Direct Lending Eliminated the FFEL Program Perkins was targeted but saved Administration s FY Budget Requests Create a $6 - $8 Billion Federal Direct Perkins Loan Program School determines eligibility; Department of Education services loans Current loan limits retained Otherwise, terms & conditions same as unsubsidized Direct Loan Program 3

4 Status of the Federal Perkins Loan Program DCL: GEN Issued due to conflicting information in HEA sections 461(b) and 466(b) regarding the duration of the Perkins Loan Program Section 466(b) provides that institutions participating in the Perkins program begin returning the federal share of collections after 10/1/12 Section 461(b) provides that Congress may appropriate funds for the Perkins Program through September 30, 2014 Department of Education concluded that Section 461(b) authorizes the Perkins Program through September 30, 2014 and it is eligible for an automatic one-year extension through September 30,

5 Perkins Loan Program Statistics National Perkins Program Statistics Perkins Fund value estimated at $8.67 Billion 1500 ~1700 Institutions participate in the Perkins Program Almost 500,000 students receive awards each year $950 Million in awards in Service Cancellations cumulative total close to $2 Billion o Teaching: 58% o Nurse/Med Tech: 20% o Early Intervention: 8% o Law Enforcement: 6% o Remaining: 8% 5

6 Perkins Loan Program Statistics SUNY s Perkins Program Statistics: 29 State campuses with centralized servicing Combined fund value: $178 Million Cumulative $ loaned: $800 Million Annual Expenditures: $21.4 Million Students awarded Perkins annually: 26,260 New York State Perkins Program Statistics: Fund value is $862 M (9.9% of national total) Annual Expenditures: $98 M (10.3% of national total) Students awarded Perkins annually: 80,000 (16%) 6

7 SUNY Advocacy Letter to Congressional Representatives Identify the institution and program you are writing about Highlight the major issue: The Perkins Program is in danger of being discontinued. Provide background info about the program national numbers as well as your individual program information Provide the impact on your students and campus if program is eliminated Mention that there is NOTHING to take the place of Perkins if it goes away! Loss of Perkins to the student means leaving school or high cost private loans Make it personal! Ask for their support 7

8 SUNY Example Letter 8

9 Federal Perkins Loan Program Statistics Federal Campus-Based Programs Data Book 2013 (ED.gov) abook2013.html Federal Student Aid Awarded - by State and Congressional District (NAICU) Campus-Based Funding (ED.gov) - by School and by State campus-based-funding-by-state/ Orange Book Perkins Loan Cohort Default Rates 9

10 Advocacy Do not discount your influence you, your institution, your students and your administration ALL play an important part in maintaining the Perkins program Contact your Congressional Representatives both in the House of Representatives and the Senate. To find your Representative (or that of your college or university) go to the COHEAO website, under the Resources tab, select Contact Your Congressional Representative : If you can t advocate on behalf of your school, do so on an individual basis or through your membership with a national association. 10

11 Advocacy Identify your Representative and your Senator - Google them and get to know some facts about them: What is their party affiliation? Democrats control Senate, Republicans control House. Is your institution their alma mater? If so, highlight that fact. Does he/she sit on any relevant Committees? Either House or Senate Education Committee or Budget Committee. House side getting language added at the subcommittee/committee level is critical! Senate action can happen during floor consideration. 11

12 Advocacy the Representative s education staffer (contact information attached) Sample letter attached make it your own! Do you have a presence in their state/district? Mention statistics about your Perkins program Make it personal! Members want to know how they are making a difference in their district or in their state - the more personalized you make the call or visit, the more effective you ll be. 12

13 Advocacy During a visit, mention key information about Perkins: Schools have skin in the game - ICC Accountability schools service the program Contact with borrower s throughout repayment Low-cost loan program - 5% fixed rate Subsidized interest through enrollment and grace Many options for cancellation Good for communities promotes careers in areas of need; i.e. teachers in low-income areas Only subsidized loan program available for graduate students 13

14 Key Members COHEAO Grassroots Key Congressional Focus List Name Branch Affiliation State Committee(s) Tom Harkin Senate Democrat Iowa HELP (Chair) Patty Murray Senate Democrat Washington Budget (Chair), Appropriations & HELP Committees Cathy McMorris-Rodgers Congress Republican Washington House Energy and Commerce Committee John Kline Congress Republican Minnesota Education & Workforce (Chair) Paul Ryan Congress Republican Wisconsin Budget (Chair) Virginia Foxx Congress Republican North Carolina Education & Workforce - subcommittee on Higher Ed Ruben Hinojosa Congress Democrat Texas Education & Workforce, Financial Services Committees Luke Messer Congress Republican Indiana Education & Workforce, Financial Services Committees John Boehner Congress Republican Ohio Speaker of the House Tim Bishop Congress Democrat New York Education & Workforce Committee Lamar Alexander Senate Republican Tennessee HELP Committee Dick Durbin Senate Democrat Illinois Senate Majority Whip, Appropriations - Subcommittee on Labor, HHS & Education, Judiciary Tim Scott Senate Republican South Carolina HELP, Commerce Science & Transportation, Small Business & Entrepreneurship, Tammy Baldwin Senate Democrat Wisconsin HELP and Budget Committees Barbara Mikulski Senate Democrat Maryland HELP and Appropriations Committees 14

15 Key Members Senate: Committee on Health, Education, Labor and Pensions (HELP): 15

16 Key Members CONGRESS: Members of the House Subcommittee on Higher Education and Workforce Training: Rubén Hinojosa, Texas (Ranking Member) Thomas E. Petri, Wisconsin Howard P. Buck McKeon, California Glenn Thompson, Pennsylvania Tim Walberg, Michigan Matt Salmon, Arizona Brett Guthrie, Kentucky Lou Barletta, Pennsylvania Joseph J. Heck, Nevada Susan W. Brooks, Indiana Luke Messer, Indiana Timothy H. Bishop, New York Frederica Wilson, Florida Suzanne Bonamici, Oregon Mark Takano, California Carolyn McCarthy, New York John Tierney, Massachusetts Rush Holt, New Jersey Susan A. Davis, California Richard Hudson, North Carolina 16

17 Reauthorization Proposal submitted to House and Senate Subcommittees Hill Visits COHEAO Action Meetings with representatives from National Higher Education Associations Targeted Outreach Key Member Schools Federal Updates from COHEAO Board Members COHEAO.com - Grass Roots Area 17

18 Next Steps: Educate Is your President aware of the impact to your institution if Perkins is eliminated? Is your government relations office familiar with the program and the issues it is facing. Provide them with information that they can share - as they often meet with or talk to key politicians. Rally your student groups they love to support a good cause. Notify other key offices on campus! They can be very helpful in getting students, parents and alumni involved. Incorporate information about the Perkins Program into your high school nights or open house presentations engage parents! 18

19 Next Steps: Take Action Put together statistics and impact statement for your campus Ask your University President and key campus colleagues to sign a letter of support Write, or call your Congressional Representatives Gather student, borrower and parent testimonials Students who were able attend because of Perkins Borrowers who have gotten their Perkins loan cancelled Visit your Congressional Representatives in their local offices Network with other colleges and inform them of the issue Continue to award Perkins loans - business as usual! Contact COHEAO with questions, for direction or advice 19

20 Q & A Please your questions to: COHEAO@gmail.com 20

21 Contact Information Washington Partners/COHEAO: Harrison Wadsworth, Wes Huffman and Laura Kaloi (202) Maria Livolsi Director, State University of New York President, COHEAO (518) Pamela Devitt Legislative Analyst, University of Illinois COHEAO Perkins Task Force Chair Jan K. Hnilica Financial Services Manager, Wheaton College COHEAO Legislative Chair (630) Lee Anne Wigdahl Manager, Loan Administration, DeVry Education Group COHEAO Legislative Co-Chair (630)