Uncertain path for financial aid reform

Though the government is likely to simplify the federal financial-aid program, next year's political turnover makes it hard to predict the possible changes.

As of now, shortening the Free Application for Federal Student Aid appears to be the change most likely to occur.

But, with a new Congress, a new Secretary of Education and a new administration in the White House this coming year, the time table for these simplification efforts remains unclear.

A Rethinking Student Aid panel made up of the country's top higher-education experts recently proposed a sweeping plan that includes eliminating the FAFSA, ending subsidies on student loans and condensing current campus-based financial aid programs.

The Higher Education Act - which was reauthorized by Congress last spring - sanctioned the simplification of the FAFSA, so "that part will happen," said Bill Andreson, head of Penn's Washington office.

This week, U.S. Secretary of Education Margaret Spellings unveiled her own proposal for simplifying the financial-aid process, which includes decreasing the FAFSA form from 145 to 27 questions and telling students how much aid they will qualify for before their senior year of high school.

A number of bills have suggested condensing student grant programs, Andreson said, and when Congress reconvenes next year, some of that legislation could be passed.

But every administration has its own priorities, and higher-education experts agree that it is hard to know what will become the Rethinking Student Aid panel's recommendations.

"I have no idea what an Obama or McCain administration would think of these proposals," Andreson said, adding that with competing demands for money "cost is going to be an issue."

Barmak Nassirian, executive director of the American Association of Collegiate Registrars and Admissions Officers, is hopeful that a new administration will be "more likely to embrace significant changes in financial aid policy."

Since Spelling has only a few weeks left in office, Nassirian called her efforts "too little, too late."

Changes could either come in the form of the next reauthorization of the Higher Education Act - which will not be for five years - or as a standalone bill, said Bill Schilling, Penn's director of financial aid.

According to Nassirian, there has to be enough public support for adjustments to financial aid for politicians to change current legislation.

"These are big ideas," Nassirian said, referring to the Rethinking Student Aid proposal, "But you need to energetically sell big ideas, they don't sell themselves."

Sandy Baum, co-chairwoman of the study group, wrote in an e-mail that she didn't expect the committee's proposal to lead to immediate change.

Her main goal, she wrote, is to engage people in a "constructive conversation about the future of federal student aid."

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