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6/13/2006
The Agenda Book for the upcoming June 16th Commission meeting is now available at collegezone.com. Included among the agenda items for this meeting is an action item for FY2007 Monetary Award Program (MAP) Recompute.
Each year, ISAC is responsible for adopting an allocation formula for MAP. Typically, once the governor and General Assembly take action on the budget (which was signed on May 22nd), the Commission revisits the MAP formula and approves a "recompute" formula that is updated from the formula used at start-up. The final FY2007 budget includes a larger-than-anticipated increase in MAP funding, a total of $34.4 million over the FY2006 appropriation. The total appropriation for FY2007 is $384.8 million, of which $354.3 million is from state general revenue funds, $26.8 million is from ISAC's Student Loan Operating Fund (SLOF) and $3.7 million is from federal LEAP/SLEAP funds.
Based on the increase in MAP funding, a recompute formula which replaces the existing 9% reduction factor with a 2% reduction factor is being recommended to the Commission. This recommended formula strikes a balance between the formula changes suggested by the ILASFAA Formula Committee and what is perceived to be the intent of the legislature when it approved the additional funds.
In summary, it is anticipated that the Commission will take action on an FY2007 recompute formula that contains the following elements:
- 2003-04 tuition and fees at 100%;
- 80% of Federal Pell Grant eligibility, as determined by the 2003-04 Pell Grant Payment Schedule (which contains a $4,050 maximum);
- minimum award of $500 (to ease administrative complexity for both MAP and the new MAP Plus program); and
- reduction of all awards by 2% (replacing the previous 9% reduction factor) for applicants with an expected family contribution (EFC) up to and including $8,999 (no award is provided to applicants who have an EFC of $9,000 or greater).
Current projections indicate that this proposed recompute formula would allow 2006-07 MAP award announcements to be made through the end of August. If approved by the Commission, the recompute formula will be available for award calculations at MAPnet in early July.
Executive Briefing Conference Call - Tuesday, June 20th
Executive Director Larry Matejka will offer an Executive Briefing Conference Call on Tuesday, June 20th to provide an update on a variety of ISAC-related topics, including an overview of the results of the Commission meeting. The conference call, for financial aid staff at the Director or upper management level, will be held at 10 a.m.
To participate, dial 888.767.9380 and enter passcode 9767339#.
Items which will be discussed during the call include:
- 2006-07 MAP recompute formula
- Other FY2007 Budget items
- Proposed Rules and Amendments
- State Legislative update
- Status of proposal relating to loan sale
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