Washington, DC – U.S. Sen. Cory Booker (D-NJ) today joined students and faculty at Rutgers University in Newark to highlight a bill he recently introduced to streamline the financial aid process and to discuss solutions to address the mounting student loan debt burdening millions of New Jerseyans.
“In order for a college education to be achievable, it must first be affordable,” Sen. Booker said. “Last week, I introduced the Simplifying Financial Aid for Students Act of 2014, which calls for practical improvements to an application process that is commonly underutilized and often overwhelming for families of the greatest need. Today, I was pleased to join faculty, alumni and students at Rutgers Newark to discuss challenges to college affordability. I look forward to working with colleges and organizations throughout our state to ensure that I continue to promote policies that support New Jersey’s young people.”
Last week, Senator Booker introduced the Simplifying Financial Aid for Students Act of 2014, legislation that simplifies the financial aid process and increases the accessibility and affordability of higher education for students and their families. Since its introduction, the bill has been endorsed by the National Association of Student Financial Aid Administrators (NASFAA), National Association for College Admission Counseling (NACAC), American Council on Education (ACE), National College Access Network (NCAN), the Council for Christian Colleges & Universities (CCCU), and the United Negro College Fund (UNCF).
Here are excerpts from letters of support from each organization:
“The goal of simplifying the financial aid application process is paramount to having more needy students receive the resources they need to gain access to and success in higher education. Your bill takes two important steps to help federal student aid work better for millions of students and families.” – NASFAA
“We believe the bill will help simplify the Free Application for Federal Student Aid (FAFSA) process, which will in turn will help students better understand their options to pay for and attend college.” – NACAC
“This legislation would make a valuable change to the determination of eligibility for federal financial aid. These modifications would significantly benefit the neediest students by both streamlining the application process, and ensuring that these students can receive the maximum possible aid available.” – ACE
“The Simplifying Financial Aid for Students Act of 2014 is a step forward in helping low-income, first generation students and students of color pursue their educational dreams.” – NCAN
“We believe that this legislation would help streamline the aid process for all students. In addition, we believe it would have a particular benefit for the neediest students by allowing them as much time as possible to gain access to scholarships and other alternative funding streams for college.” – CCCU
“Creating a streamlined, clear and coherent system could have a significant impact on college access and success for low-income students.” – UNCF
The Simplifying Financial Aid for Students Act of 2014 allows for the use of tax data from the preceding year. Currently, students can file the FAFSA to get the Pell Grant and Direct Loans at any point in the award year, but that is not the case for certain types of state aid, which are awarded on a first-come, first-served basis. Many institutions of higher education require students to file their FASFA “as soon as possible after January 1, 2012” in order to receive state aid. Employers do not have to provide W-2 forms until the end of January and many students are unable to complete the FASFA until February at the earliest, which can result in families not receiving the maximum aid they are eligible to receive. Basing eligibility on tax data from the prior year will ease the burden on these families by allowing them to submit tax forms they already possess and file for aid sooner.
The Simplifying Financial Aid for Students Act of 2014 would also return the Expected Family Contribution (EFC) income threshold from $23,000 to $30,000 which would ensure families with incomes of $30,000 or less will receive the maximum in Pell grant funding. Currently, families making $23,000 or less automatically qualify for the maximum Pell Grant. Nearly 75% of Pell Grant recipients had a family income of $30,000 or less in 2011-12. Among the recipients who received the maximum amount, 92% had a family income of $30,000 or less in 2011-12. Increasing the EFC threshold will help more students receive the maximum in grant funding.