mdhe and state updates

MDHE and State Updates

Presented by:Jim Matchefts, Assistant Commissioner and General CounselLeroy Wade, Assistant Commissioner

Missouri Association of Student Financial Aid PersonnelMarch 9, 2007

Agenda: Missouri News and Updates Loan program advisory committees Commissioner and staff updates Default Fee updates Default rates announced Missouri legislative updates State aid administrative rule changes The latest from the State SFA

CommitteeMissouri Association of Student Financial Aid PersonnelMarch 9, 2007

Rumors and Myths Dispelled Fact or fiction: “The MDHE <Jim

coming up with something . . . .>”– Fiction!– Fact: The MDHE . . .


MDHE Staff Announcements Dr. Robert Stein appointed

commissioner effective December 16, 2006

Other new staff


Advisory Committee Recommendations Two meetings conducted in January MDHE should:

– Remain Missouri focused, including a focus on state and local legislation and compliance issues

– Expand its training services while keeping training free

– Maintain and expand its focus on outreach and early awareness

Next meetings scheduled for JuneMissouri Association of Student Financial Aid PersonnelMarch 9, 2007

MDHE Default Fee Subsidy Updates About 94% of MDHE’s guarantees

received an FDF subsidy to date– Lender code list:

http://www.dhe.mo.gov/defaultfeelist.shtml Close to $4 million has been added to

reserve fund, which is used to buy defaulted loans


http://www.dhe.mo.gov/defaultfeelist.shtml

FFY05 Draft Default Rates Federal loan program participants

received draft FFY05 CDRs in February– MDHE’s final 2004 CDR was 4.73% – Draft 2005 CDR is 4.26%

2004 national average 5.1% 2005 national average is estimated at 4.9%

2006 trigger rate: 2.18%


Missouri Legislative Updates

Missouri Senate Bill 389 Senator Gary Nodler of Joplin

introduced on January 29 First public hearing January 31 Other updates


Bill Highlights Access Missouri Financial Assistance Program

& repeal of Gallagher and College Guarantee State need-based aid may not exceed the

COA Uniform competencies for entry level courses

in certain subject areas to ensure transfer credit

Higher Education Student Funding Act CBHE authority Lewis and Clark Discovery Initiative Other provisions


Rumors and Myths Dispelled Fact or fiction: “The MDHE is requiring

private/independent colleges and universities to pay an administrative fee in order to continue participating in the Missouri state aid programs.”– Fiction!– Fact: The MDHE has sent several

communications regarding Fast Track Implementation for the new grant program, if signed into law


Fast Track Implementation Updates Implementation costs estimated at $207,000 Letter sent December 29 to Missouri

institutions’ presidents requesting contributions– Contributions would be refunded if implementation

supplemental appropriations are passed– Contributions are completely optional

Follow up email sent January 16, 2007 Tier Technology contracted on February 23 to

assist with FAMOUS changes


Other Missouri Legislation H.B. 250 – would double Bright Flight from

$2,000 to $4,000 S.B. 362 – would repeal Gallagher & College

Guarantee, create a new need-based program, and double Bright Flight awards

S.B. 430 – would create the Smart Start Scholarship Program

H.B. 612 – would expand the Vietnam Veteran’s program

AppropriationsMissouri Association of Student Financial Aid PersonnelMarch 9, 2007

For Missouri Legislative Updates . . .

Visit the MDHE’s website weekly


MDHE Digest Articles January 2007: Update on Fast Track

Implementation of Proposed Single Need Based Program

February 2007: Missouri Senate Bill 389

March 2007 will also feature an update article– March issue should be available next week


MDHE E-Distribution Messages Bright Flight funding status (2/22/2007) Technology changes affecting FAMOUS

(2/2/2007)– Microsoft Vista operating system– Extended daylight savings time hours

Higher education bill introduced (1/31/2007) 2006-07 Marguerite Ross Barnett funding

status (1/31/2007) State need-based aid packaging (1/25/2007)


State Aid Administrative Rule Changes

Rumors and Myths Dispelled Fact or fiction: “Although the Missouri

state aid programs will now have a renewal criteria requiring a CGPA of 2.5, students will have a brief ‘grace period’ to allow time for them to bring up their grades, if necessary.”– Fact!– The new CGPA requirement will be

enforced for the 08-09 academic year


Administrative Rule Changes Requested Changes published in the Missouri Register

dated February 15, 2007– 2.5 CGPA renewal criteria for Bright Flight, Ross

Barnett, and Gallagher– Ross Barnett program enrollment status change

to include half-time and three-quarter time 30 day public comment period Changes expected to be effective July 30,

2007– New CGPA requirement will be enforced for

2008-09Missouri Association of Student Financial Aid PersonnelMarch 9, 2007

State Aid Student Communications

Bright Flight– Award letter (new recipients)– No PSI letter (no school choice listed)– Renewal letter

State Aid Programs Application Status Letter

These communications will include:– New 2.5 CGPA renewal criteria– July 31st FAFSA correction deadline


More State SFA Information

State Aid Totals 2006-07

As of Thursday, 3/1/2007– 21,110 students have received state aid

funds– $37.3 million disbursed


State SFA Committee (SSFAC)


Questions?

3515 Amazonas DriveJefferson City, MO 65109-5717(800) 473-6757(573) 751-3940Fax: (573) 751-6635www.dhe.mo.gov

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