WASFAA Federal Relations CommitteeConference Call – March 16, 2017

Participants: Shellee Kilbride, Lissa Wayne, Vicki Shipley, Helen Faith, Anafe Robinson, Leo Vogel and Tami Sato.

Meeting started at 2:01p.m.

Welcome, FRC Members, Review February 23rd Minutes

  • Tami welcomed FRC members. There were no to do’s from the February minutes but we did get some things done that will be discussed later in the agenda.

This and That

  • Year-Round Pell – Speaker Paul Ryan spoke up in support of Year-Round Pell so it looks like this issue is getting traction for inclusion in RHEA. If we do get it we would want to make sure it does not have the same problems in the previous version. Anafe said one problem related to letting schools decide whether the summer was treated as a trailer or a header. The other had to do with acceleration.
  • GE additional time for appeals – So the deadline date was pushed back from March 10th to July 1. The reason could include allowing for more time to review or revisit the requirements for all this reporting. There are two lawsuits regarding the GE reporting requirements and consequences. Lissa mentioned the education teams including the higher education task force headed by Falwell. Their main focus is college deregulation. Vicki said that the Department is in flux with a transition team of temporary folks that may or may not remain. An Assistant to the Secretary should be appointed within 60-90 days.
  • H.R. 1193 – Tami thought this was a good bill because we have been advocating for additional mandatory loan counseling, but on reading it, it does not offer much more than an additional counseling before a disbursement.
  • IRS DRT down – I guess the big controversy was that the Department did not officially announce that this FAFSA tool was not functioning until about a week later. The latest word is that it will be “several weeks” until it is fixed. DE says the FAFSA can still be filled out manually, but this is a step backwards. It affects other things like the annual income documentation for IDR plans. DE’s wording makes it sound like a security issue on the IRS side. FRC thinks bigger problem is process to verify non-tax filing, which should be made easier.
  • Teach prep/grants repeal – This was predicted, and it was one that was repealed by CRA
  • President’s FY 18 Budget – The “skinny budget” was released and included some big cuts for financial aid programs including a significant cut to FWS. Tami had heard this might be as high as 50%. FRC was amazed as this program has always received bipartisan support. Indication is that the Pell surplus will be used for other purposes and only provide flat funding. There will be a more detailed budget in May. News media treating this differently and has not mentioned the usual “dead on arrival” like comments.

Hill Visit Results

  • NASFAA Interview – Daniel Reed and Anafe were interviewed by NASFAA staff for their Off Cuff series with some of the other 135 attendees who advocated on the hill. Anafe said that they were mostly first-timers and it was a good experience with the partnership with the various associations. Tami said that the impression she got was that although it is intimidating to do, once there they were all made to feel very comfortable and listened to.
  • Comments by Bryce and Jenny – Bryce was very articulate and knowledgeable about higher education issues. He did not agree with higher loan limits issue and felt FAA already had that ability with PJ. Both Bryce and Jenny did not back support for return of terms in ATB because of the cost and the ability to use career pathways. Anafe said they should look at the data from the experimental sites, which shows success of students with the previous ATB terms. Jenny also knew about higher education issues and listened to their issues.
  • Lissa’s re-cap - Lissa wrote up a good summary that was shared with FRC. Tami asked if the staffers had asked them any questions. Lissa said they asked if we could provide situations or examples of the redundancies and overlaps that occur with consumer disclosures we are required to provide students. There are requirements from the federal, state, accreditation and other agencies. She will work on this response.
  • Both staffers did not feel RHEA would happen this year. Vicki said that sadly changes could be made through the budget or reconciliation process. It is all about the money. They will have to make big decisions on loans. Could move from DE to the Treasury. The CFPB has had a lot of one-man power and could be replaced by a commission for enforcement.

WASFAA Conference Session

  • Our session on advocacy will be on April 10th from 1:30-2:30. Shannon and I have both developed outlines for a PPT and she will combine for a final draft. We may be using Star Wars quotes or Jedi headings.
  • NASFAA has a form members can fill out for an opportunity to make hill visits in DC. They are usually looking for specific segment representation. Vicki said that we can also go to the district offices of representatives to visit them when they are in town or to talk to the staffers that are there all the time. Other advocacy suggestions included inviting them on your campuses. CASFAA and CCCSFAAA have a Day at the Capitol event where they meet with representatives and staff in Sacramento.

Summary/Other Discussions

  • IDR – Tami said she has had graduates say that servicers are strongly suggesting going into an IDR repayment plan without consideration of the specific circumstance. Sometimes a forbearance or an extended plan would be simpler to use for a temporary situation. Lissa said that the IDR plans are complex and hopes in RHEA a streamlined repayment plan can be developed.
  • This is the last meeting for the 16/17 FRC. Appreciation was expressed for the chair and FRC members. The conference session will be the last task of this committee. Let Tami know if you would be interested in continuing for the 17/18 year. We will start again after the conference in April.