MASFAA Annual Conference Indianapolis, Indiana October 7, 2013 Dan Madzelan

MASFAA Annual Conference

Indianapolis, IndianaOctober 7, 2013

Dan Madzelan

RADD Deliverables

• The American Dream 2.0

• Public Opinion Research

• Technical Panel Report

American Dream 2.0: Coalition and Report

• Consensus on the problem: Aid should be more efficient and effective

• Make aid simpler and more transparent

• Spur innovation to lower costs

• Ask institutions, states and students to share responsibility for completion

College Is Worth It: Public Opinion Research• The country is ready for this conversation

• 95% of African American parents and 97% of Hispanic parents think earning degree is essential or very important

• 49% of engaged voters believe higher education needs major changes or a complete overhaul

• Debt is the most common concern

• 73% of engaged voters expressed support for financial aid reform focused on outcomes in principle when provided with the potential benefits and consequences

Doing Better for More Students: Technical Panel White Paper

• Simplify Financial Aid– One Grant, One Loan, One Tax Benefit

• Share Responsibility– Incentives for On-Time Completion

• Innovation and Experimentation– Invest in demonstration programs and

research

A Simpler More Effective System

• One Grant Program– Import IRS data, include look-up table

• One Loan Program– One loan with one set of terms– Automatic IBR– Market-based interest rate

• One Tax Benefit– Consolidate household tuition and fee

credits into a Lifetime Learning Credit

Share Responsibility: Incentives for On-Time Completion

• Limit the number of credits borrowers can accumulate

• Increase enrollment intensity to receive maximum aid

• Provide additional aid for increased course load

• Define metrics to be phased in for institutional eligibility

Innovation and Experimentation

• Pell-Ready Grant

• Competency-Based Demonstration

• Performance Contract Demonstration

• Investment in outcomes data

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Contact Information

Kristin Conklin, HCM Strategists

[email protected]

Dan Madzelan, At-Large

[email protected]

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QUESTIONS?