Top 5 Takeaways from Recent Financial Aid Regulation Announcements

Over the last few months there have been a few key announcements worth mentioning to ensure you remain compliant. Following these will ensure compliance. Here are a few of the top takeaways from recent Department of Education updates. 

1. FAFSA Simplification changes effective for the 2023-2024 award year: Changes to professional judgment includes distinguishing between Special Circumstances and Unusual Circumstances, requiring schools to have a publicized policy and prohibiting an institution from having a policy to deny PJs. 

2023-2024 Cost of attendance changes including language changes from Room & Board to Food & Housing counting as living expenses. Along with changes to 1st professional credential is included with a few other changes. 

Student Eligibility changes officially remove the code for selective service and drug convictions aligns with SULA being eliminated. 

1. 90/10 Final Rules released: Identifying which federal funds can no longer be counted in the 10% revenue requirement and addresses loopholes that schools can use to adjust the timing of when revenue is received. The biggest change being veteran and service member benefits (such as the GI Bill) will no longer count toward the 10%. 
2. Prison Education Programs Questions and Answers: Starting July 1, 2023 incarcerated students will have access to Federal Pell Grants at qualified institutions and are eligible for the Fresh Start initiative. 
3. Deadline for 2023–24, Underuse Penalty Waiver: Deadline to request a waiver for underspent Campus Based Funds is February 6th. Institutions that failed to spend more than 90% of its 2021- 2022 Campus Based funding can apply for an underuse waiver including detailed information on circumstance that caused underuse of allocation, why the circumstance was beyond school control, and how it will be prevented in the future. 
4. Reorganization of the Federal Student Aid Handbook for 2023-2024: The Department announced on January 11th the 2023-2024 Federal Student Aid (FSA) Handbook will be reorganized. The new structure will have the Application and Verification Guide, nine numbered volumes and appendices. The major change is removing duplicate content and placing all campus based program information together. 
   

Of course, these are just a few highlights of information over the last few months. Let our financial aid  and compliance experts help your department boost its efforts. Contact us today to explore options. Get FA Solutions and ECM today!  

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