Quality in Student Financial Aid Programs A New Approach (1993) / Chapter Skim
Currently Skimming:
9 Further Initiatives for Improvement in the System
9 Further Initiatives for Improvement in the System
Pages 163-176
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From page 163... ...
REAUTHORIZATION OF THE HIGHER EDUCATION ACT The most recent reauthorization of the Higher Education Act occurred in 1992, as the panel was engaged in its deliberations. One of the main goals of the reauthorization legislation was to simplify the student aid programs.
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From page 164... ...
This section is designed to improve accountability and integrity in the student aid programs without precluding needy students from receiving the education they deserve and without preventing quality institutions from providing the educational services that foster productive and contributing citizens. Section H
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From page 165... ...
Thus, this student's application could be chosen for verification by all five of the schools. Imagine five student financial aid officers all sitting next to each other verifying the same file.
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From page 166... ...
the cause of much of "student error" lies in the complicated application process, and (3) data items that must be forecast (e.g., estimated income, household size, and number in college)
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From page 167... ...
In the past, applicants had to estimate income for the current year, an obviously error-prone activity. Yet, several states still have aid programs that require applicants to apply for federal aid early in January.
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From page 168... ...
To some extent, other real estate and investment value have diminished as causes of error in the federal application process because they are not reported unless income exceeds $50,000. The panel is concerned that some state and institutional aid programs will continue to require these data items, which will complicate the application process as it appears to the student who must explore all sources of aid.
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From page 169... ...
Requiring a match of the data elements used to determine student aid eligibility with tax requirements would help. Otherwise, nonmatches would require personal attention in verification to ensure a fair determination of eligibility.' The timing of applying for aid and filing tax forms also needs attention.
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From page 170... ...
Development of a system that requires applicant data to be matched with IRS data should receive top priority. Reducing "Institutional Error" Each error item associated with students in Department of Education contract studies generally had the same level of award error in all the aid programs (Pell, Campus-Based, and Stafford Loans)
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From page 171... ...
The automated checks on such items as Selective Service registration and student loan default could determine the records that will need further verifying documentation. Rather than flagging the record for institutional action during verification, the SAR could request corrections that are currently made much later in the process.
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From page 172... ...
Therefore, the need to redesign the Department of Education's management of these programs so that they focus on students, parents, and recipient institutions is greater than ever before. In general, the panel believes that the same remedies recommended in this report for other parts of the Title IV student financial assistance programs also hold for the loan programs.
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From page 173... ...
In some respects, the department's procedures for dealing with these entities are even more highly skewed toward inspection than those problematic systems dictated by federal rules for institutions of higher education. Considering the level of federal expenditure to leverage capital into the student aid loan programs that rely on private enterprise and nonprofit organizations, the panel believes the following comments on the need for greater use of quality systems in this part of the program are in order.
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From page 174... ...
In recent years, the positions of assistant secretary for postsecondary education and deputy assistant secretary for student financial assistance, for example, were often filled by someone in an acting capacity or by a regular appointee of short tenure. During this time there was also a major reorganization of the Office of Postsecondary Education and a number of shifts in line management assignments.
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From page 175... ...
Thus, the panel requests that Congress take action to help make this possible. Recommendation 9-5: Congress should ensure that there is adequate funding and staffing to develop the quantitative information needed to manage and review the student financial aid programs effectively.
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From page 176... ...
A thorough understanding of a system as complex as the student financial aid programs takes time. Recommendation 9-6: To ensure the development of and commitment to long-term planning, the politically appointed position in charge of the student financial aid programs (the assistant secretary for postsecondary education)
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