ED Invites Ideas to Improve Federal Recordkeeping and Reporting Requirements

The U.S. Department of Education reached out to education leaders and stakeholders last week inviting them to offer ideas to reduce the burden of some administrative recordkeeping and reporting requirements tied to federal funding and to better promote existing flexibility that can reduce burden in low-income schools.

State, local and tribal governments that administer federally funded programs must follow federal recordkeeping and reporting requirements intended to ensure the proper use of federal dollars. One example of these requirements is time-and-effort reporting, which verifies that an individual whose salary is supported by a federal program is spending the appropriate amount of time carrying out allowable activities of that program. Completing these requirements can often be time consuming and provide little information on the impact of services supported through the program.

In an effort to reduce administrative burdens while still ensuring the proper use of federal funds, the Department is seeking ideas to improve administrative recordkeeping and reporting protocols regarding the use of federal funds, including those pertaining to time-and-effort reporting. Ideas submitted should consider alternative evidence that could replace applicable recordkeeping and reporting requirements, increase the use of data and development of data systems, or encourage reforms that create long-term improvements around efficiency and productivity. For example, within the context of time-and-effort reporting, interested education leaders and stakeholders may wish to offer suggestions that will improve the quality and content of the information reported, such as demonstrating the valuable impact federally funded positions have on improving student achievement, school services and community involvement in education.

The Department is also interested in ideas to better promote existing flexibility called “Schoolwide schools” that can permit schools with large numbers of low-income students to reduce requirements associated with time-and-effort reporting, in addition to providing other benefits. Yet, districts and schools rarely take advantage of this flexibility. Last March, the Department released promising practices for productivity and flexibility, encouraging States to take advantage of this available alternative. To help further these efforts, the Department invites education leaders and stakeholders to offer ideas that will help promote or improve guidance around existing flexibility.

In a memorandum sent to federal departments last February, the President urged federal agencies to work with state and local officials on increasing efficiency and reducing costs of protocols tied to federal dollars while maintaining accountability. Soliciting ideas from local, tribal and State governments as well as the general public as part of the Department’s ongoing outreach to engage local officials in an open dialogue about ways the federal government can better serve their needs.

To submit an idea or learn more, visit http://www.ed.gov/blog/2011/10/granting-administrative-flexibility-for-better-measures-of-success.

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Federal Government Consolidations

Federal government student loan consolidations are available to students and parents who have borrowed money to finance education and want to pay off the debts in a manner that is easier and cheaper. While there are many advantages to consolidating loans, there are also some factors to consider before finalizing a plan for federal government student loan consolidation program. Rates may be similar. However, there may be some incentives worth looking into in order to lower the interest rate for one's college debts.

It is important to know who qualifies for this consolidating. Either a parent or a student may apply for federal government student loan consolidation. However, the student must be enrolled less than half time in order to qualify. In addition, the college attendee needs to be in a repayment period with their loan, or in a grace period, which is typically the six months after leaving school. Furthermore, to qualify, the borrower must not have previously consolidated their loans. However, if the borrower has lending that has not yet been consolidated with their other loans, they still may be eligible for federal government student loan consolidations.

While there are several advantages to participating in these programs, there are some additional things to consider before consolidating. The advantages include getting a lower, fixed interest rate, a lower monthly payment and flexible repayment options. These benefits to federal government student loan consolidations are in addition to the other benefits one probably already has: no fees, charges or repayment penalties and no credit checks or co-signers. On the other hand, the longer repayment term may increase the total amount of finance charges paid over the term. Furthermore, borrowers will not be able to consolidate again, even if the interest rates drop.

Some lenders offer additional incentives to bring the interest rate down. If borrowers allow electronic payments to be taken automatically from a bank account, they can qualify for a decrease in the interest rate. If they make 36 consecutive on-time payments, borrowers may be eligible for additional reductions of interest rates for federal government student loan consolidations. Finally, if the borrower consolidates during the grace period, they also can lower interest rates.

Deciding whether to participate in such a program is a decision that should take some serious consideration. Not only should one plan on doing research and comparison of federal government student loan consolidation companies, but one should also seek advice from others who can help weigh the decision. Most importantly, borrowers need to pray and consult the Lord who, when we acknowledge him in decisions, "shall direct our paths" (Proverbs 3:6)

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Federal Student Loan Consolidations

Federal student loan consolidation is a means of relief for students who find themselves unable to pay their existing student loans. Whether they are in default or have reached the point where they will soon be in default, this option is worth exploring. Once borrowers are approved for federal student loan consolidations, the old loans disappear. Payments are set up based on yearly family incomes, and if the family earns less than $900 above the poverty line, no payment is required at all. Perhaps the best feature of this plan is that the old loan will no longer be listed as a default on credit records, and collection efforts will cease. Applications are free, and the forms can be received by calling a number listed on the Internet. If the current ones are already in default when application is made for federal student loan consolidation, the student is required to either make three reasonable and affordable payments on the account or accept a payment plan based on income information obtained from the IRS.

Once the consolidation is granted, the individual is again eligible for other financial aid packages, including grants, that he or she might need to finish the education. Of course, it is wise to apply for a federal student loan consolidation before the original agreements are in default. This avoids the damage to credit rating that results from a default, which could include loss of tax credits and garnishment of wages and further penalties. There are some restrictions to these programs that must be understood. First, the borrower must certify that he or she could not get a Federal Family Education Loan (FFEL) with a satisfactory repayment schedule. Oddly, the borrower does not actually have to apply for the FFEL and, in fact, is discouraged from doing so when applying for consolidation. Federal student loan consolidations have lower interest rates and lower payments than does the FFEL.

It is in the borrower's best interest when paying off a federal student consolidation loan to pay more than the minimum required payments. As with any credit agreements, low or minimal payments will not cover the interest accruing, and the borrower ends up paying interest on interest, thus increasing the amount of money paid significantly. Borrowers have the option of seeking a deferment if necessary, and during that period the United States government pays the accrued interest. In all cases, these agreements have a cap on the interest that may be charged. Another advantage with federal student loan consolidations is that after twenty-five years of payments, the debt is forgiven. If there have been periods of forbearance or deferment when payments were not made, they do not count in the calculation of the twenty-five years, and when federal student loan consolidations are forgiven, the amounts of the loans have to be counted as income on the tax returns of the borrowers. "For I know the thoughts that I think toward you, saith the LORD, thoughts of peace, and not of evil, to give you an expected end," (Jeremiah 29:11).

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US Federal Student Loan

US federal student loans are financial aid funds guaranteed by the national Government for the sole purpose of helping a college enrollee get the necessary funding to complete his or her course of education. Qualifying for this financial assistance has advantages, but students are encouraged to also attempt aid from other sources when applying for a US federal student loan. Individual states within the United States oversee and administrate them. Students can get more information about government assistance, how to qualify, and their State's restrictions by searching online with the Internet.

There is a lengthy application and process to be completed when applying for this government student aid. Students can get a Free Application for Federal Student Aid (FAFSA) at their college financial aid department or apply directly online. Students encouraged to search for additional grants and scholarships that can aid them with funding, however completing the FAFSA will evaluate the student's family's financial status and preapprove them for numerous types of financial aid. A US federal student loan should be used as a last resort in completing tuition and other costs. However, the availability of these funds guarantees that financing a college education is not the reason for anyone to not be able to go to college.

The Stafford Loan is one US federal student loan and also is a guaranteed form of funding. There are special interest fees and payment terms with Federal Stafford funding. With the Stafford US federal student loan, interest fees are waived for the time that a person is attending classes at least part time and for a six months period of grace after their enrollment drops below part time or they graduate. Guaranteed loans may have variable or fixed rates for interest fees once the grace period is terminated. The administrating institution determines their own rates based on government guidelines.

Monies extended to students through the college financial aid system are routed through the college which will deduct all fees, tuition and any other monies owed the college. The enrollee should keep in contact with the Financial Aid office and the administrating financial institution throughout the college years to stay aware of the amount of funds to be repaid after graduation. "The preparations of the heart in man, and the answer of the tongue is from the Lord" (Proverbs 16:1). Repayment of US federal student loans are not due until six months following the college graduation. Keeping these payments current will be very important. Although the government guaranteed the aid, the assistance still does have to be repaid by the borrower. There can be serious penalties charged that can including loss of tax refunds, paycheck confiscations and a damaged credit report when US federal student loans are delinquent.

Contact any college to get a FAFSA for assistance on college tuition. Applications can be submitted to the financial aid office or online, as well. Students will need to have their own, as well as parental information, from their tax return and personal assets, as the application calls for extensive financial information from students and their parents. Both should read all documentation and make sure that they completely understand the terms as set forth by the US federal student loans programs.

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Consolidate Federal Student Loans

To consolidate federal student loans is a wise decision because borrowers can combine several college debts into one and only have one payment per month to meet. The new payment tends to be lower than the combined payment of all the previous lending. The borrower might also save on interest when consolidating. It is much easier to make one payment instead of two or three, as many people may have taken out three or even more college debts to pay for their education. Most any lender will be able to help by offering programs to consolidate federal student loan. This will relieve the stress of having to make several payments each month.

Especially if the interest is high, consolidation can lower the overall interest rate. In this instance, when people consolidate federal student loans, it will save them hundreds of dollars in interest over the term. There are a variety of programs available to suit one's needs. The Internet is a great place to begin searching for options to consolidate federal student loan packages. There are many different search engines to assist borrowers in finding programs.

To be eligible for consolidation, the applicant must either be out of school or enrolled less than half time. They also must be actively repaying student loans or still in the grace period in order to consolidate federal student loan packages. Usually, a minimum amount of college debt is required. This will vary from lender to lender, but the median amount is ten thousand dollars. The interest on federal college lending is tax deductible, whereas with private lending, it is not. So when considering whether or not to consolidate federal student loan, borrowers should not do so with any private loans or they will not have the advantage of deducting the interest on the next income taxes.

Some federal student lending will allow for borrowers to defer the payments until graduation. Additionally, they might allow the borrower to defer if they graduate but return to school at a later date. If the college attendee decides to consolidate federal student loans, he or she should choose a lender with a low interest rate and reasonable payment terms. "If the iron be blunt, and he do not whet the edge, then must he put to more strength: but wisdom is profitable to direct" (Ecclesiastes 10:10).

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Federal Student Loan Consolidations

Federal student loan consolidation is a means of relief for students who find themselves unable to pay their existing student loans. Whether they are in default or have reached the point where they will soon be in default, this option is worth exploring. Once borrowers are approved for federal student loan consolidations, the old loans disappear. Payments are set up based on yearly family incomes, and if the family earns less than $900 above the poverty line, no payment is required at all. Perhaps the best feature of this plan is that the old loan will no longer be listed as a default on credit records, and collection efforts will cease. Applications are free, and the forms can be received by calling a number listed on the Internet. If the current ones are already in default when application is made for federal student loan consolidation, the student is required to either make three reasonable and affordable payments on the account or accept a payment plan based on income information obtained from the IRS.

Once the consolidation is granted, the individual is again eligible for other financial aid packages, including grants, that he or she might need to finish the education. Of course, it is wise to apply for a federal student loan consolidation before the original agreements are in default. This avoids the damage to credit rating that results from a default, which could include loss of tax credits and garnishment of wages and further penalties. There are some restrictions to these programs that must be understood. First, the borrower must certify that he or she could not get a Federal Family Education Loan (FFEL) with a satisfactory repayment schedule. Oddly, the borrower does not actually have to apply for the FFEL and, in fact, is discouraged from doing so when applying for consolidation. Federal student loan consolidations have lower interest rates and lower payments than does the FFEL.

It is in the borrower's best interest when paying off a federal student consolidation loan to pay more than the minimum required payments. As with any credit agreements, low or minimal payments will not cover the interest accruing, and the borrower ends up paying interest on interest, thus increasing the amount of money paid significantly. Borrowers have the option of seeking a deferment if necessary, and during that period the United States government pays the accrued interest. In all cases, these agreements have a cap on the interest that may be charged. Another advantage with federal student loan consolidations is that after twenty-five years of payments, the debt is forgiven. If there have been periods of forbearance or deferment when payments were not made, they do not count in the calculation of the twenty-five years, and when federal student loan consolidations are forgiven, the amounts of the loans have to be counted as income on the tax returns of the borrowers. "For I know the thoughts that I think toward you, saith the LORD, thoughts of peace, and not of evil, to give you an expected end," (Jeremiah 29:11).

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Chicago News Cooperative: A Federal Lifeline for Hard-Pressed School Districts

Since the money came after the school year started — too late to hire new teachers — the district went in another direction. Farmington officials decided to leave the money untouched. Unsure about whether the state will come through with what it owes the district, school officials decided to wait and watch the budget process take shape in Springfield over the next few weeks.

If the state falls even further behind on payments to schools, the federal money from the Education Jobs Fund will be used as a small safety net, said Mark Doan, Farmington schools superintendent. “If the state comes and says we don’t have the funds, at that point, I’d turn around and say we’ll use those Education Jobs funds,” Mr. Doan said.

After the Education Jobs Fund was announced in August, the federal government and Gov. Pat Quinn encouraged districts to quickly spend their portion of the $415 million. But, technically, districts do not have to use the money until Sept. 30, 2012.

By Dec. 1, only about 20 percent of school districts had spent all their federal jobs money, according to Illinois State Board of Education reports. In addition, as of Dec. 10, Illinois schools still had $300 million remaining of the $415 million assigned to them.

Many districts said they planned to use the money this fiscal year, but had not yet submitted the paperwork. Others said they might stretch the money into the next fiscal year.

The Education Jobs Fund program highlights just how difficult the fiscal situation is for Illinois schools. When the federal government sent Illinois the money to save teachers’ jobs in September, the tough choices had already been made and staffing plans had been put in place. But as the state did not pay school districts the money it owed them, some schools started to look at the federal money as a small lifeline.

In southwestern Illinois, Sparta District 140 used its $526,000 to cover the September and October payroll for teachers, Superintendent Larry Beattie said.

“We were running out of money,” Mr. Beattie said. “We’re all getting short on cash because of what happened last year” with the state falling significantly behind on reimbursing school districts.

Using the federal money for payroll expenses allowed the district to avoid other cuts, he said.

Earlier this month, Christopher Koch, the state schools superintendent, sent local school officials some good news: Districts would not have to sue the State of Illinois to get the money owed to individual districts for the 2010 fiscal year, which ended six months ago. In early December, Illinois used proceeds from the sale of tobacco revenue bonds to pay off an outstanding $368 million it owed to the schools.

Schools are now waiting for at least $706 million in late payments for the current fiscal year. When the state is late on payments, districts must sometimes borrow to pay their bills, adding to their own financial hardships. Next year may be difficult because no large federal spending packages are on the horizon, and Illinois is constrained by a projected budget deficit of $13 billion, according to the governor’s office.

Chicago Public Schools, which has $104 million of the state’s total allotment of Education Jobs Fund money, is using its money to pay teachers to keep high school classes the same size, restore bilingual education positions and create special-education jobs, said Frank Shuftan, a district spokesman.

In south-suburban Blue Island, the timing worked out better than it did for many other districts. There, Cook County District 130 will use its $877,000 in Education Jobs Fund dollars this fiscal year to pay the salaries for 10 teachers, as well as the costs for three new counselors for its middle schools, said Allan McDonald, the district administrator for business services.

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