Perkins Grassroots AdvocacyCOHEAO’s Plan

The Coalition of Higher Education Assistance Organizations

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Lori HartungTodd, Bremer & Lawson Regional ManagerCOHEAO Agenda Chair & Treasurer803-371-2394lori.hartung@TBandlL.com

Presenter

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• Section 461(b) of the Higher Education Act authorizes the Perkins Program through September 30, 2014 with an automatic one-year extension through September 30, 2015

• Perkins will expire on September 30, 2015 unless Congress takes action to extend the program

• Two possible options for extension:

• Reauthorization of the Higher Education Act

• Free-standing one year extension

Perkins Loan Program Expiration Issues

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COHEAO submitted an official proposal to reauthorize the Perkins Loan program to both the House and the Senate authorizing Committees

COHEAO’s Proposal - Campus Flex• Creates one appropriation for the 3 campus-based programs (Work Study,

SEOG and Perkins)• Allows schools to decide each year which program(s) receive funds• Achieves the goal of simplification but maintains all three campus based

programs• Allows percentage of annual interest collected on Perkins loans to be used

for SEOG and FWS• Unites proponents of the campus-based programs to work together for

annual appropriations• Received interest on the Hill

COHEAO Action

COHEAO Advocacy Call

• On June 16th, COHEAO held an advocacy conference call

• The result was far reaching and successful - over 600 individuals signed up to participate in the call to action

• Three COHEAO Board Members presented information about how to:

• Advocate in Congress and with your elected representatives

• Advocate in your own state

• Advocate on your campus

• COHEAO is using the list of participants to organize calls to Members and their staff on key Education Committees or in key Perkins districts

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COHEAO Hill Visits

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• Since 2013 COHEAO Board members, institutional members and commercial members have made over 100 hill visits on both the House and Senate side

COHEAO visits have either been with the elected official or relevant staff members

COHEAO’s visits have brought attention to the Perkins issue, educated members and staff and have kept Perkins “on the radar”

House and Senate Committee staff have reached out to COHEAO for further statistics on the program as well as legislative language for the Campus Flex program

COHEAO Hill Visits

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COHEAO Board members have held meetings and phone calls with the following Higher Education Associations:

– National Association of Student Financial Aid Administrators (NASFAA)

– National Association of Independent Colleges and Universities (NAICU)

– Association of American Universities (AAU)

– American Council on Education (ACE)

– Association of Jesuit Colleges and Universities (AJCU)

– The Community College Association (CCA)

– Council of Graduate Schools

– University of California System

COHEAO Visits with Higher Ed Associations

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COHEAO Next Steps

• Send response to Senator Harkin’s call to comment on Campus-based programs – Done!

• Draft legislative language on Campus Flex for Chairman Kline and Chairman Harkin – Discussed not Drafted

• Work with Congressman Bishop on independent legislation to extend Perkins – Debating

• Continue efforts to educate Congressional Members and staff on benefits of the Perkins Loan Program – On Going

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• Gather Statistics

• Educate

• Engage

• Advocate

• Act Now!

Your Next Steps

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Perkins Program National Statistics:

• Perkins Fund value estimated at $8.67 Billion

• 1500 ~1700 Institutions participate in the Perkins Program

• Almost 500,000 students receive awards each year

• $950 million in annual awards

• Public Service Cancellations - cumulative total close to $2 Billion

• Teaching: 58%• Nurse/Med Tech: 20%• Early Intervention: 8%• Law Enforcement: 6%• Remaining: 8%

100%

Gather Statistics

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Minnesota State Statistics:

• Fund value is $194 M (2.2% of national total)

• Annual Expenditures: $37 M (2.31% of national total)

• Students awarded Perkins annually: 18,954 (3.9% of national)

MnSCU Statistics:

• 31 state campuses (24 Tech & CC and 7 Universities) with centralized servicing

• Combined fund value:

• Cumulative $ loaned:

• Annual Expenditures:

• Students awarded Perkins annually:

Gather Statistics

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Perkins Fund Value by State

KeyTop 10 - $4.5 B

11-20 - $1.8 B

21-30 - $1.2 B

31-40 - $780 M

41-48 - $350 M

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Federal Campus-Based Programs Data Book 2013 (ED.gov)http://www2.ed.gov/finaid/prof/resources/data/databook2013/databook2013.html

Federal Student Aid Awarded - by State and Congressional District 2013-14 (NAICU)

http://www.naicu.edu/special_initiatives/page/federal-student-aid-awarded-by-state-and-congressional-district

2012-13 Campus-Based Funding (ED.gov) - by School and by State

http://www.coheao.com/resources/facts-figures/2011-12-campus-based-funding-by-state/

Orange Book – Perkins Loan Cohort Default Rateshttp://www.ifap.ed.gov/perkinscdrguide/1213PerkinsCDR.html

Gather Statistics

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Make your President aware of the impact to your institution if Perkins is eliminated.

Inform your government relations office of the issues the Perkins Program is facing. Provide them with information that they can share - as they often meet with or talk to key Congressional Members and staff.

Discuss the issue with other offices affected – financial aid, business office and admissions are just a few examples of offices impacted.

Educate

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Share key information about Perkins:

• Risk Sharing: Schools have “skin in the game” – ICC

• Self-sustaining: The revolving fund continues even without federal contribution

• Financial Literacy: Schools award, counsel, disburse and service the loans – providing assistance to borrowers throughout repayment

• Accountability: Schools are responsible for their cohort default rates and in managing their revolving fund

• Affordability: Low-cost loan program - 5% fixed rate, subsidized interest throughout enrollment and grace; many deferment options; the only subsidized loan program available for graduate students

• Workforce & Community Benefits: Perkins contains many options for full or partial forgiveness - promotes careers in areas of economic need as well as shortage areas

Educate

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Countering the One-Grant/One-Loan Concept:

• COHEAO’s Campus Flex proposal works within the confines of One-Grant/One-Loan – by adding One Campus-Based.

• Many simplification proposals sound great in theory, but do not account for the realities on the ground.

• Loss of campus-based grants and loans removes the flexibility of the financial aid office to assist low-income and lower-middle income students who need additional low-cost aid options.

• Subsidized loans are critical for this population of borrowers.

• Many Perkins recipients would not be eligible for private loans, or if eligible, would pay a much higher rate of interest.

• Loss of cancellation benefits will be detrimental to both borrowers and communities.

Educate

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• Incorporate information about the Perkins Program into your high school nights or open house presentations – engage future students and parents

• Engage your student groups – they love to support a good cause - provide a sample letter they can send.

• Work with other key offices on campus that have contact with students, parents and alumni; they can be very helpful in getting students, alumni and parents involved

• Contact colleagues from institutions in your district and/or state to join together

• Work with local, regional, or national education association groups

Engage

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• Contact your Congressional Representatives – both in the House and the Senate. Visit their local office, send an email with a letter attached, make a phone call to follow-up.

• To find your Representative (or that of your college or university) go to the COHEAO website, under the Resources tab, select “Contact Your Congressional Representative”http://www.coheao.com/resources/letters-to-congress/

• Google them and get to know some facts about them: – What is their party affiliation? Democrats control Senate,

Republicans control House.– Is your institution their alma mater? If so, highlight that fact.– Does he/she sit on any relevant Committees – such as the

House or Senate Education Committee or Budget Committee?

Advocate

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• Do not discount your influence – you, your institution, your students and your administration ALL play an important part in maintaining the Perkins program.

• If you can’t advocate on behalf of your school, do so on an individual basis as a constituent or through your membership with a national association.

• Make the contact personal! Members want to know how they can make a difference in their district or in their state - the more personalized you make the letter, call or visit, the more effective you’ll be.

Advocate

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Advocate

Writing to Your Congressional Representatives:

• Quickest way for receipt of your letter is to email it to the Representative’s education staffer

• Identify your institution and the program you are writing about

• Highlight the major issue: The Perkins Program is in danger of being discontinued!

• Provide background info about the program – national numbers as well as your individual program statistics and those for your Member’s district or your state

• Make it personal – include any info that ties your institution to the member

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Writing to Your Congressional Representatives:

• Provide the impact on your students if the program is eliminated - loss of Perkins to the student means leaving school or higher cost private/alternative loans

• Provide the impact on your institution if the program is eliminated – i.e. decrease in enrollment, loss of revenue, loss of jobs

• Mention that there is NOTHING to take the place of Perkins if it goes away

• Ask for their support – tell them what you want them to do

• Follow-up! Stay in touch by email or phone

Advocate

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SUNY & New York State Action:• Letter writing campaign

• COHEAO, SUNYFAP & NYSFAAA - Ad Hoc Committee

• Get core group of Presidents to unite

• Engage government relations

• Emails to engage membership

• Targeted action in NYS districts with largest loan volume

Commercial Member Action:• Meetings on Capitol Hill and home district

• Letters to Representatives

• Sharing the advocacy process with clients

• Participate in COHEAO organized phone calls in key member states & districts

• Ongoing support of COHEAO

Advocate

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Your Action Checklist:

Put together statistics and an impact statement for your campus

Educate your colleagues and ask for their support

Ask your University President and key campus colleagues to write or sign a letter of support

Engage - students, borrowers and parents – gather testimonials Current and former students who were able attend your school because

of Perkins

Parents who depend on Perkins to fund the cost of attendance

Borrowers who have benefitted from a Perkins loan cancellation

Visit your Congressional Representatives in their local offices

Write, email and call your Congressional Representatives (share communications with COHEAO)

Network with local colleges and higher education groups

Continue to award Perkins Loans - business as usual!

Contact COHEAO with questions, for direction or advice

Act Now!

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Thoughts…

Ideas…

Feedback…

Discussion

Contact Information

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Washington Partners/COHEAO:Harrison Wadsworth, Wes Huffman and Laura Kaloi(202) 289-3900Email: HWadsworth@WPLLC.net; WHuffman@WPLLC.net; LKaloi@WPLLC.net:http://www.coheao.org

Maria LivolsiDirector, State University of New YorkPresident, COHEAO(518) 525-2628mlivolsi@albany.edu

Pamela DevittLegislative Analyst, University of IllinoisCOHEAO Perkins Task Force Chairdevitt@uillinois.edu

Jan K. HnilicaFinancial Services Manager, Wheaton CollegeCOHEAO Legislative Chair(630) 752-5180Jan.Hnilica@wheaton.edu

Lee Anne WigdahlManager, Loan Administration, DeVry Education GroupCOHEAO Legislative Co-Chair(630) 645-1178lwigdahl@devrygroup.com