Each year, the Office of Federal Student Aid (FSA) hosts a training conference for financial aid professionals to share the latest policy and FSA operational updates. The 2021 conference was held virtually,
from Nov. 30 through Dec. 2, and here are some of the key takeaways from the event.
Day 1 Keynote: Universal FAFSA Policy Endorsement from FSA COO
This year’s conference opened with a welcome and remarks from Richard Cordray, FSA’s chief operating officer. He iterated the three most pressing challenges for FSA at this time: 1) overhauling student loan servicing, 2) improving the Public Service Loan Forgiveness (PSLF) program,
and 3) preparing borrowers for student loan payments to restart in early 2022 after a nearly two-year hiatus due to the pandemic.
Cordray also pointed out two troubling indicators for higher education: fewer students have completed a Free Application for Federal Student Aid (FAFSA) in the current cycle (as compared to this time last year), and Pell Grant disbursements are down for
this academic year.
Then came music to the ears of the college access and success field. The head of FSA endorsed universal FAFSA policies at the state level. There are currently seven states that require FAFSA completion for high school graduation. Universal FAFSA with
completion supports is one of NCAN’s state policy priorities – check out our recommendations for how states can effectively implement such a policy.
.@FSACOO encourages #FSATC2021 attendees to push state officials—both legislators and education officials—to
change state law to mandate FAFSA® completion as a requirement for high school graduation. Seven states have done this already.
U.S. Secretary of Education Miguel Cardona gave the keynote address on the second day of the conference. He highlighted three priority challenges for the department: 1) ensuring an equitable recovery from the pandemic, 2) pushing for historic investments
in college affordability, and 3) implementing policies to help institutions of higher education commit to equity.
Secretary Cardona also said he was proud that the Build Back Better legislation (which has passed the House
and is currently being considered by the Senate) includes a $550 increase to the maximum Pell Grant and would extend federal aid eligibility to DACA recipients.
Day 3 Keynote: Double Pell Commitment
Undersecretary of Education James Kvaal opened the final day of the conference with a message that reiterated Secretary Cardona’s priority challenges. He shared that we have seen 700,000 fewer students enroll in higher education since the start of the
pandemic, and this may “signal the potential for a permanent dent in the country’s higher ed attainment.” Kvaal also shared insight into ways that higher education institutions have used pandemic relief funds: to provide emergency grants to students,
to help meet COVID-19 public health needs, to provide electronic devices and internet access, and to prevent staffing cuts.
Perhaps our favorite message was that the current administration is committed to doubling the maximum Pell Grant and the increase included in the Build Back Better Act is the first major step toward that goal. Double Pell is another NCAN policy priority.
Breakout Sessions
The conference offered several breakout sessions focused on specific areas of aid administration and updates to the studentaid.gov website and mobile app. Several highlights for the college access and success field include:
Verification for the 2021-22 academic year was suspended (except for the V4 group) in July for the remainder of the academic year. FSA’s target verification rate for the current year was 18%. The suspension has dropped the selection rate to 3-4% of
current filers. FSA estimated that this suspension may clear the path to enrollment for up to 200,000 students.
At this time, the department is not extending the verification waiver provided for the 2021-22 academic year to the 2022-23 academic year. However, FSA did remove verification of high school completion for the year. The department left a small window
of hope indicating that if it makes any adjustments to verification requirements, those changes will be shared in a future announcement.
FSA has enhanced the look and feel of the studentaid.gov website and mobile app for a more consistent user experience. Students may now modify their school list without it being a correction requiring a parent's signature. FSA has also made many enhancements
to the borrower module of the mobile app.
Various officials addressed the upcoming changes to the FAFSA and filing process as a result of the FUTURE Act and the FAFSA Simplification Act. Some changes that FSA has already implemented include SULA and the drug conviction and selective service
questions being disconnected from federal aid eligibility. FSA will continue to make adjustments in phases, with full implementation coming in the 2024-25 academic year (the FAFSA that will open Oct. 1, 2023). Ultimately, FSA will make critical
changes to the federal student aid calculation methodology. These changes will include the elimination of several (unnecessary) questions and the addition of two ways to determine Pell Grant eligibility (making it easier for students to know earlier
how much aid they may qualify for). NCAN will continue to keep our members updated as details are determined for the new FAFSA process.
The attendance at the last two FSA conferences, both virtual, has been extremely high. As a result, FSA may use a hybrid in-person and virtual approach to its conferences moving forward. There is no cost to attend the FSA Training Conference. NCAN encourages
our members to participate in the conference each year, if possible, to receive even more detailed insights into Federal Student Aid’s policies and practices.
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