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DEPARTMENT OF EDUCATION
Created in 1980 by combining offices from several federal agencies, the Department of Education’s (ED) mission is to promote student achievement and preparation for global competitiveness by fostering educational excellence and ensuring equal access. ED's 4,200 employees and $68.6 billion budget are dedicated to:
- Establishing policies on federal financial aid for education, and distributing as well as monitoring those funds.
- Collecting data on America's schools and disseminating research.
- Focusing national attention on key educational issues.
- Prohibiting discrimination and ensuring equal access to education.
Loans and Grants
In 2008, about $2.4 billion will be dedicated by the ED to help strengthen teaching and learning in colleges and other postsecondary institutions. Over $4 billion will support rehabilitation, adult education, research and development, statistics, and assessment. Approximately $1.5 billion will be contracted for goods and services necessary to carry out its mission.
Financial Aid
The ED will provide more than $83 billion this year in financial aid, with 60 percent dedicated to the millions of students seeking higher education opportunities. Some student financial assistance programs include:
- Grants: Financial aid you do not have to repay.
- Work-study: Financial aid you earn while enrolled in school that will help pay your educational expenses.
- Loans: Financial aid you borrow that you must repay with interest.
Higher Education Reconciliation Act of 2008
The Higher Education Act (HEA) authorizes the major federal student aid programs that are responsible for the majority of financial assistance to postsecondary students. To encourage growth and change, it must be re-approved or "reauthorized" by Congress, generally every five years. In addition to major reauthorization bills, Congress also considers many bills that may directly or indirectly impact the HEA.
Some of the changes that may affect your student aid are listed below. These changes are the result of a new federal law that went into effect on August 14, 2008. Read further to see if any changes may affect your student aid.
Active Duty Military
Section 112: prohibits a state from charging more than the instate tuition for attending a public institute of higher education (IHE) in that state to: (1) members of the armed forces who are on active duty for more than 30 days and whose domicile or permanent duty station is in such state; or (2) such members' dependents.
It also provides that, even if such members' permanent duty station is subsequently changed to a location outside the state, they or their dependents must continue to be charged no more than the instate tuition if they remain continuously enrolled at such IHE in the state.
Section 401: Eliminates the expected family contribution used in determining Pell Grant eligibility in the case of a student applicant whose parent or guardian was killed while performing military service in Iraq or Afghanistan after September 11, 2001.
Section 402: Prohibits veterans of the Armed Forces Reserves from being deemed ineligible to participate in TRIO programs because of age if they served on active duty for a period of more than 180 days or in support of a contingency operation on or after September 11, 2001.
Section 436: Requires the Secretary to accept documentation that the Department of Veterans Affairs has rated student borrowers as permanently and totally disabled as sufficient documentation for the discharge of their FFELs.
Section 465: Provides loan cancellation for such occupations and for service in the armed forces in an area of hostilities at the rate of 15% for the first or second year of service, 20% for the third or fourth year of service, and 30% for the fifth year of service.
Section 471: Expands the definition of an allowance for room and board to include an allowance for expenses reasonably incurred for board, but not for room, for those students who receive a military housing allowance or live on base.
Section 473: Excludes the value of on-base military housing or a military housing allowance from consideration as untaxed income or benefits in the need analysis formula. Reduces, for the first year a student receives veterans' education benefits, the factor in the eligibility formula representing estimated educational financial assistance already received by the student by the amount of military pay deductions made for such benefits.
Section 487: Requires IHEs to justify any policy requiring students who are a member of the Armed Forces and whose school attendance is interrupted by active duty to apply for readmission after the conclusion of such active duty.
Academic Competitiveness Grant
A new student aid grant program called the Academic Competitiveness Grant (ACG) was made available for the first time for the 2007-2008 award year. First-year undergraduate students will be eligible to receive up to $750. Second-year undergraduate students will be eligible to receive up to $1,300. The ACG eligibility criteria are listed below:
To be eligible for an ACG each academic year, a student must:
- Be a U.S. citizen
- Be Federal Pell Grant eligible
- Be enrolled full-time in a degree program
- Be enrolled in the first or second academic year of his/her program of study at a two-year or four-year degree-granting institution
- Have completed a rigorous secondary school program of study (after January 1, 2006, if a first-year student, and after January 1, 2005, if a second year student)
- If a first-year student, not have been previously enrolled in an undergraduate program
- If a second-year student, have at least a cumulative 3.0 grade point average on a 4.0 scale for the first academic year.
For additional information on military programs and grants, please check out the following links:
American Council on Education (ACE) – Military Programs
The American Council on Education (ACE) provides a collaborative link between the U. S. Department of Defense and higher education through the review of military training and experiences for the award of equivalent college credits for members of the Armed Forces.
New courses and occupations are continually being evaluated by ACE, and these entries are added on a daily basis to the online version. Thus, the information you view online is up-to-date at all times.
Army American Council of Education (ACE) Registry Transcript System (AARTS)
Provides transcripts of military training and experience to Soldiers and Veterans of the Army, Army National Guard and US Army Reserve. AARTS maintains a database of over 3,500,000 Soldier records and fills over 2,000 requests per week. Transcript requests are processed on the workday (M-F) they are received and mailed not later than two work days later (usually less) to academic institutions, Army Education Centers, and employers around the world.
Service Members Opportunity College – Army Degree (SOCAD)
SOCAD consists of colleges that offer associate and bachelor's degree programs on or accessible to Army installations worldwide. These colleges have joined together to form networks in which each college accepts credits from all the others. This guarantees that Army students and their adult family members can continue toward completion of their degrees even though the Army may transfer them several times. There are also degrees available by distance learning that require no classroom residency.