Future of Direct Lending Chuck Knepfle Director of Financial Aid Clemson University.
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Transcript of Future of Direct Lending Chuck Knepfle Director of Financial Aid Clemson University.
Future of Direct Lending
Chuck KnepfleDirector of Financial Aid
Clemson University
A little about me for you Bingo boards….
• I have worked outside of South Carolina
• I have 3 or more pets
• I have a tattoo
Direct Lending Trivia
• What school was the first to originate a Direct Loan?
– BONUS: What date? July 1, 1994
Direct Lending Trivia
• What was the Congressional trade-off for the 150% rule we are all working to implement?
3.4% Interest for one year
Direct Lending Trivia
• Under what president was Direct Lending created?
Direct Lending Trivia
• Which South Carolina Congressional members are on the education committees?– Tim Scott (Senate)– Joe Wilson (House)– Trey Gowdy (House)
National Direct Student Loan Coalition
• The National Direct Student Loan Coalition (the Coalition) is an alliance of schools dedicated to the continuous improvement and strengthening of the federal Direct Loan program. Coalition members are practicing financial aid professionals. The Coalition's goals are to: – Advocate high standards in the delivery of student loans by all participants in
the process;– Facilitate efficient delivery of loans by providing a liaison to the US
Department of Education on behalf of schools;– Provide an effective communication network among participating schools to
improve program administration;– Educate public officials, the financial aid community, professional
associations, the media and the general public on student lending; and,– Promote policies to minimize the use of student borrowing and improve loan
terms for those who borrow
Upcoming Legislation
• Student Loan Borrower Bill of Rights– Various disclosures for private loans– Refinance private loans– Requires school certification– Changes bankruptcy protection
• Know Before You Owe Student Loan Act – Requires schools to certify private loans
• ExCEL Act (Earnings ContingentEducation Loans Act)– Establishes IDEA Loan, with pay-
ments taken directly from income
Reauthorization Proposals
• National Direct Student Loan Coalition:– http://
www.directstudentloancoalition.org/media/pdfs_autogen/Reauth-Comp_9-2013.pdf
• NASFAA (Loan Task Force on Loan Indebtedness)– http://www.nasfaa.org/indebtedness-report.aspx
Reauthorization Proposals
• Simplification of the DL Servicing interface• Common portal• Standardized look to communications• Equal service levels across servicers
• Single income driven repayment plan• Increased loan limits, but with school option
to limit
Reauthorization Proposals
• Elimination of loan proration• Elimination of loan forgiveness as a taxable
event• Re-thinking loan subsidies• Separate GRAD Plus and Parent PLUS
Carnac the Magnificent talks Direct Lending…..
Carnac the Magnificent talks Direct Lending…..
• One combined Income Based Repayment method
• More attention to private loans• Increased focus on CDR• Elimination of Subsidized Loans• More clarity and consistency to DL servicing• More schools leaving DL for
default rate concerns
Negotiated Rulemaking
• State authorizations for distance education• State authorization of foreign locations• Debit / Stored Value cards• Definition of adverse credit in PLUS program
Negotiated RulemakingFinancial aid administrators
David SheridanColumbia University in the City of New York
Paula LuffDePaul University
Minority serving institutions
David SwintonBenedict College
George FrenchPresidentMiles College
Two-year public institutions
Brad HardisonSanta Barbara City College
Melissa GregoryMontgomery College
Four-year public institutions
Chuck KnepfleClemson University
J. Goodlett McDanielGeorge Mason University
Private, non-profit institutions
Elizabeth HicksMassachusetts Institute of Technology
Joe WeglarzMarist College
Private, for-profit institutions
Deborah BushwayCapella University
Valerie MendelsohnAmerican Career College
Interested in being more involved?
• Read NASFAA’s news, Insidehighered.com and The Chronicle
• Join the National Direct Student Loan Coalition• Look for SCASFAA/SASFAA/NASFAA
opportunities• Write to your local member of Congress
Questions?