financial aid rulemaking · –new financial aid manual •administrative rules help communicate...
TRANSCRIPT
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Financial Aid Rulemaking
Presented by Josh Garrison
June 9, 2016
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Background
• In 2012, the Commission merged with State Student Aid Commission of Indiana (SSACI) and took over the administration of state financial aid.
• The Commission inherited the statutes and administrative rules governing state financial aid.
• SSACI’s administrative rules were prescriptive.
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Background
• At the time of the merger, SSACI’s rules were set to expire at the end of 2013.
• Executive Order 13-03 placed a moratorium on new rules.
• The Commission faced a decision to renew existing rules or let the rules lapse.
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Background
• The Commission allowed the inherited rules expire to provide time to evaluate the program administration and enact credit completion.
• The Commission has operated under the authority of IC 21-18.5.
• At the beginning of 2015-2016 school year, the Commission staff began preparing new administrative rules.
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Proposed Rules Overview
• The proposed rules outline:– How the Commission shall administer aid
– How students become and maintain eligibility
– How institutions elect to participate
• Incorporate the suggestions of the Attorney General’s Office.
• Flexible enough to allow the Commission to react to the needs of students and institutions.
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Why Adopt Rules Now?
• Timing:– New ScholarTrack
– Beginning of Prior-Prior FAFSA
– New Financial Aid Manual
• Administrative rules help communicate the expectations for students, families, institutional partners and the Commission.
• 21st Century Scholar’s statute requires the Commission to outline how new institutions may participate.
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Adoption Timeline
• Request exemption from regulatory moratorium from OMB/SBA
– Requested and waiting for response
• Publish notice of intent to adopt rule in the Indiana Register
– Must be published for 28 days
• Publish proposed rule in Indiana Register
– Must be published for at least 21 days
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Adoption Timeline
• Hold hearing and collect public feedback– No timeline to hold the hearing
• Review of proposed rule by Attorney General’s Office– 45 days to review
• Review of proposed rule by the Governor’s Office– Up to 30 days to review
• Rule goes into effect– 30 days after submission to publisher
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21st Century Scholars Income Verification
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Income Verification Process
• In 2013, the legislature required the Commission to determine whether 21st Century Scholars continued to have financial need before releasing the scholarship.
• The Commission evaluated the existing income verification process at the time of application and found significant improvements could be made.
• The new process will start with the class of 2020.
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Income Verification Process
• A new MOU with the Indiana Department of Revenue allows the Commission to compare income listed on the 21st Century Scholars Application and tax income.
• Only students showing as over income or with incorrect parent SSN verified.
• The process is completed online using the existing appeals process.
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Income Verification Process
• In June, applicants will be notified they are potentially ineligible.
• After June, new applicants will be notified at the end of each month.
• Applicants are given the opportunity to provide their tax information before they are removed from the program.