application processing system update marilyn leblanc director of application processing

Application Processing Application Processing System UpdateSystem Update

Marilyn LeBlancDirector of Application Processing

Michele Brown Director of Applicant Products

and Customer Service

Today’s Topics• Implementation of the 2005 Higher Education Reconciliation Act

(HERA) for 2006-07 and 2007-08– FAFSA– Application Processing System

• 2007-08 Application Processing System Changes– Paper FAFSA– Paper SAR, online SAR, and ISIR– FAFSA on the Web and the Federal Student Aid PIN Web site– FAFSA on the Web Worksheet and Student Application Resources– Application Edits– NSLDS Financial Aid History Information– Important Dates

Implementation of HERA Implementation of HERA Provisions Provisions

2006-07 and 2007-082006-07 and 2007-08

The FAFSA The FAFSA

The Application Processing SystemThe Application Processing System

HERA of 2005• Other interest sessions that include HERA information

– Session 5 - ACG and National SMART Grant: Student Eligibility and Academic Year Issues

– Session 6 - ACG and National SMART Grant: Transfer Student and Rigor/Major Issues

– Session 10 - General Provisions Update: Changes made by the HERA

HERA of 2005• Other interest sessions that include HERA information

– Session 11 - Return of Title IV Funds: HERA Policy and Implementation Changes

– Session 15 - NSLDS: Changes for 2006 and 2007

– Session 17 - ACG/SMART: Reporting from CPS to COD; Funding Levels and Institutional Reports

– Session 20 - FFEL and Direct Loan Policy Update

HERA Implementation Approach and Considerations

• Many provisions effective beginning in 2006-07

• Implementation approach and considerations –

– Limit amount of change to 2006-07 Central Processing System, the FAFSA, SAR and ISIR

– Implement changes as quickly as possible

– Provide customer software providers enough time for development

– Leverage existing functionality wherever possible

New Grant Programs

Implementation for 2006-07 and 2007-08

HERA of 2005

• HERA Created Two New Grant Programs

– Academic Competitiveness Grant (ACG)

– National Science and Mathematics Access to Retain Talent (SMART) Grant

• Implementation goal was to design a process to help schools identify students who are potentially eligible for ACG

Academic Competitiveness Grant2006-07 Implementation

• On July 1, 2006, sent letters and e-mails to all 2006-07 applicants (Web and paper filers) who appeared to meet minimum ACG requirements

• E-mails and letters informed applicants how to provide ACG information –– Web site

– Federal Student Aid Information Center (FSAIC)


• Web site “screens” applicants (U.S. citizen, Pell eligible) and asks “Did or will student complete high school program of study after 1/1/05?”

– If student answers ‘yes’ to this question, Web displays additional ACG questions

• FSAIC Customer Service Representatives will follow similar process on the phone to collect ACG data


• When ACG information is submitted –– Student Aid Report (SAR), with comments, sent to

student

– Central Processing System (CPS) notifies all institutions of student’s potential ACG eligibility via –

• Comment codes on ISIR, and

• Flat file


• ISIRs sent in new “pushed” message class (IGAA07OP) to all institutions listed on the transaction

• Flat file sent in new message class (ED2007OP)– Includes: SSN, Name ID, ISIR Transaction Number,

student’s name and date of birth, answers to ACG questions, rigorous program code


• On or after July 1, 2006 – Students who apply using–

• Online Application – FAFSA on the Web “screens” applicants for potential eligibility and gives applicants option to provide ACG information

• Paper Application – No change to paper 2006-07 FAFSA; filers sent comment on SAR directing them to Web site or FSAIC to provide ACG information

– FAAs can enter ACG information in FAA Access to CPS Online


• FAFSA on the Web and FAA Access to CPS Online will “screen” applicants for potential eligibility and give students and FAAs option to provide ACG information

• Paper filers who appear to be potentially eligible for ACG will be sent a comment on the SAR directing them to FSAIC to provide additional information over the phone

Academic Competitiveness Grant2006-07 and 2007-08 Implementation

• SARs, with comments, sent to students

• ISIRs sent in existing message class IGSA0XOP or IGSG0XOP to all institutions listed on the transaction

• Flat file sent in new message class (ED200XOP)

• Student ACG data may be viewed on –– FAFSA on the Web

– FAA Access to CPS Online

Need Analysis Changes


Need Analysis Changes• Simplified Needs Test (SNT) and automatic zero

Expected Family Contribution (EFC) Criteria

• Active Duty Military Independence Criterion

• Treatment of Qualified Education Benefits

• Treatment of Small Business Assets

• 2007-08 Income Protection Allowances (IPA) and Asset Assessment Rates

SNT and Auto Zero EFC Criteria

• SNT and automatic zero EFC –

– Only parent’s type of tax return filed considered for dependent students

– Means-tested federal benefit program an alternative to tax return requirement

• Automatic zero EFC only –

– Income threshold increased to $20,000

SNT and Auto Zero EFC Criteria 2006-07 Implementation

• On May 19, 2006, two changes made to CPS –

– For dependent students, updated system to look only at type of tax return parent filed to qualify for SNT or automatic zero EFC

– Increased automatic zero EFC income parameter in system from $16,000 to $20,000 for –

• Parents of dependent students

• Independent students with dependents other than a spouse


• CPS reprocessed students who applied for aid prior to May 19th and now meet new HERA criteria for SNT or automatic zero EFC

• Applicants who applied on or after May 19 had new criteria applied to their application data


• New means-tested federal benefits program criteria

• Students may now qualify for SNT or automatic zero EFC if they or their parents (or anyone in the household) –

– Received benefits from a means-tested federal program

– Meet relevant income thresholds


• 2006-07 Web and paper FAFSA not revised to collect means-tested federal benefit information

• If institution learns that member of student’s household received a means-tested federal benefit, correct to ‘Yes’ FAFSA question 34 or 72 (was student or parent eligible to file a 1040A or 1040EZ?)


• New SNT/automatic zero EFC criteria (tax return and auto zero income parameter) rolled forward into 2007-2008 CPS

• Means-tested benefits questions will be asked on both 2007-08 paper and online FAFSA

Treatment of Qualified Education Benefits• Qualified Education Benefits

– Consistent treatment– Now treated as an asset

• 2006-07 Implementation– No change to paper or Web instructions

• 2007-08 Implementation– Paper and online FAFSA instructions for investment

net worth questions will describe how to report qualified education benefits

Treatment of Small Business Assets• Exclude family-owned and controlled small businesses

from asset net worth• 2006-07 Implementation

– No change to paper or Web instructions• 2007-08 Implementation

– 2007-08 paper and online FAFSA instructions for investment questions describe how to report family-owned and controlled small businesses

IPA and Asset Assessment Rates2007-08 Only

• Increase in Income Protection Allowances– From $2,200 to $3,000 for dependent students– From $5,000 to $6,050 for independent students (single) without

dependents and married students (without dependents) with a spouse enrolled at least ½ time

– From $8,000 to $9,700 for independent (married) students without a dependent whose spouse is not enrolled

• Decrease in Asset Assessment Rates– From 35% to 20% for dependent students and independent students without

dependents– From 12% to 7% for independent students with dependents other than a

spouse

Student Eligibility


Definition of an Independent Student

• Students serving on active duty in the U.S. Armed Forces for other than training purposes are now considered independent

Definition of an Independent Student2006-07 Implementation

• No change to paper or online FAFSA

• If institution becomes aware that an otherwise dependent student is serving on active duty it must submit a “dependency override” to CPS

• CPS will recalculate EFC using independent student formula


• New SAR comment (comment code 119) informing dependent students of new active duty military independence criterion –– Comment on SARs sent to dependent students as part of

May 19, 2006 reprocessing

– Comment on SARs for all dependent student applications and corrections submitted on or after May 19th


• Paper and online FAFSAs will include new dependency status question in Step 3

Drug Offenses

• Student eligibility provision modified –students lose eligibility for federal student aid only if the drug-related offense for which they were convicted occurred during a period of enrollment for which the student was receiving Title IV aid

Drug Offenses2006-07 Implementation

• On July 1, 2006, revised –• Drug question wording and instructions on FAFSA on the Web

• Drug Conviction Worksheet on the Web

• FSAIC automated response system

• Question on paper FAFSA not reworded, but paper filers will receive SAR with revised paper Drug Conviction Worksheet

Drug Offenses2006-07 Implementation

• All students who applied on or before June 30, 2006 (paper and Web) and answered ‘Yes’ (either ‘2’ - partial ineligibility, or ‘3’ - full ineligibility) to drug question, or left question blank –– Received e-mail or letter about change to drug conviction

provision

– Instructed to –• Complete revised Drug Conviction Worksheet

• Correct their response to the drug question, if necessary

Drug Offenses 2007-08 Implementation

• Both paper and online FAFSA drug offense wording updated

• Help text on FAFSA on the Web updated

2007-08 FAFSA and

Application Processing System Changes

2007-2008 Application Processing System Changes

• Processing Statistics

• Paper FAFSA

• Paper SAR, Online SAR, and ISIR

• FAFSA on the Web

• FAFSA on the Web Worksheet

• Toolkit/Student Resources

2007-2008 Application Processing System Changes

• Federal Student Aid PIN Web Site

• Renewal Application Process

• FAA Access to CPS Online

• New Application Edits

• NSLDS Aid History Information

• Important 2007-08 Dates

• 2007-08 Web Demonstration Site

01,000,0002,000,0003,000,0004,000,0005,000,0006,000,0007,000,0008,000,0009,000,000

10,000,00011,000,00012,000,00013,000,00014,000,000

Applications through Week 44

2005-06 2006-07

That’s a 1.16% increaseThat’s a 1.16% increase

Application Volumes 2005-06 and 2006-07 Processing Statistics

•12,012,07112,012,0712005-06 FAFSAs processed as of October 29, 2005•12,151,73612,151,7362006-07 FAFSAs processed as of October 29, 2006

Application Processing Statistics Paper vs. Electronic Filers through Week 44

0

2000000

4000000

6000000

8000000

10000000

12000000

ElectronicApps

Paper Apps 2004-052005-062006-07

For 2006-07 –• 94.3% of applications

filed electronically

• 5.7% of applications filed on paper FAFSA

Application Processing Statistics

• Applications received by State – For 2005-06 and 2006-07

– Available in Excel and PDF formats on IFAP

– http://ifap.ed.gov/eannouncements/0816AppsbyState.html

• Applications received by school– For 2005-06 and 2006-07

– Available in Excel and PDF formats on IFAP

– http://www.ifap.ed.gov/eannouncements/0816AppsbySchool.html

http://ifap.ed.gov/eannouncements/0816AppsbyState.html

http://www.ifap.ed.gov/eannouncements/0816AppsbySchool.html

The 2007-08 Paper FAFSA

• 60-day public comment period ended on 8/7/06

• Final 30-day comment period ended on 9/18/06

• FAFSA approved on 9/29/06


• 2007-08 FAFSA– YellowYellow for Students

Pantone 108 CVU – PurplePurple for Parents

Pantone 263 CVU

• New packaging– Cover and Notes pages 1 through 6– Form pages numbered 7 through 10– Expanded instructions, one page of “Tips”


• States that do not specify priority deadline dates have been moved to the top of the list on front page

The 2007-08 Paper FAFSA• Enrollment status question 25 reformatted and will follow

“grade level in college?”

• Notes for question 25 describe enrollment status choices

The 2007-08 Paper FAFSA• Work-study and loan questions (27 and 28 on 2006-07

FAFSA) combined and reformatted into single question (#26) to create space for new questions required by HERA

• Notes for question 26 describe work-study and loan choices

The 2007-08 Paper FAFSA• Four college and housing code choices• Colleges re-numbered on the paper FAFSA to 97a – 97h

• Web continues to include six college and housing code choices

The 2007-08 Paper and Online SAR• Paper SAR

– Yellow in color– DRN in top right hand corner of

SAR; same position as online SAR– ‘BLANK’ printed when answer left

blank, but is required• SAR information on the Web

– Changing return address to [email protected]

– Changing e-mail subject line to “FAFSA Results – 2007-2008 SAR”

mailto:[email protected]


2007-08 Institutional Student Information Record (ISIR)

• 2007-08 ISIR record layout posted on 8/4/2006

• ISIR will follow order of 2007-2008 paper FAFSA

• Includes new data elements for new FAFSA questions and reformatted responses to questions

• Date fields incremented

2007-08 Institutional Student Information Record (ISIR)

• Will include up to six school and housing codes

• Will continue to include new ACG Comment Codes (267 – 271)

• ACG flat file will be sent along with ISIRs

• No new message classes

• 2007-08 ISIR in flat file format only (no XML ISIR)

2007-08 FAFSA on the Web• Year of minimal change• Applicants must enter SSN twice to

verify accuracy• Implement Automatic Zero EFC and

SNT skip logic enhancements for new means-tested federal benefits questions

• New stand-alone “add/modify a school” functionality added

• Will partially mask preparer’s SSN• Common look and feel for Federal

Student Aid Suite of Application Products

2007-08 FAFSA on the Web Worksheet• Added question numbers to match paper

FAFSA numbers• Changes correspond to changes made on

FAFSA on the Web• Reordered to accommodate new questions

and new Web flow logic• Header updated to reflect common look and

feel• Available for order now on FSAPubs Web

site http://www.ed.gov/offices/OSFAP/services/fsapubshome.html

• Scheduled to begin shipping at the end of October

http://www.ed.gov/offices/OSFAP/services/fsapubshome.html

http://www.ed.gov/offices/OSFAP/services/fsapubshome.html

2007-08 Student Application Resources

• Options available include:

– FAFSA on the Web Poster

– Start Here: Federal Student Aid Bookmark• One side in English• One side in Spanish

– FAFSA Tips Brochure


• We continue to promote online filing

• We have included messaging to help students understand they should apply beginning January 1

• We have also included a fill-in box where counselors and other community partners can fill in their respective state filing deadlines


• Redesigned FAFSA on the Web Tips Card, sized to fit in a standard business envelope

• FAFSA Tips provides a list of steps for applying online and information on how to get free help online, by phone, or in person

• The bookmark tag line - “Financial Aid for College Starts Here.” In recent focus groups, we heard that the mention of dollars for college resonates with students and parents, thus the reference to $80 billion in aid annually

2007-08 FSAPubs Web site• Completely re-designed home

page, now consistent with the latest look and feel

• Publication descriptions updated to describe the intended audience

• Publication-specific “alerts” inform users of companion items whenever appropriate

• When logged in, postsecondary institutions can view their FAFSA filing statistics

2007-08 PIN and PIN Web site• Renamed to “Federal Student Aid PIN Web site”• Users now required to enter their SSN twice on new PIN

applications• PIN e-mail address updated to

[email protected]• Common look and feel for the Federal Student Aid PIN

Web site


2007-08 Renewal Application Process• In October 2006, reminders were sent to schools to have

students update postal and e-mail address with CPS

• Renewal Reminders will be sent in early January 2007 (instead of once in November and again in February)– Students with a valid e-mail address will receive e-mail reminders

– If no e-mail address or e-mail is undeliverable, paper reminder letter will be sent to applicant

• Will not convert “Do you want work-study or loans?” questions

2007-08 FAA Access to CPS Online• New look and feel matches other FSA school web sites

• Entry screens changed to mimic changes to paper FAFSA

2007-2008 Edit Changes

• Transactions resulting from FAA Adjustment –– New school code cannot be added to

transaction that contains an FAA Adjustment Flag

– Other schools cannot view transactions in FAA Access to CPS Online containing an FAA Adjustment done by another school

2007-08 Edit Changes

• New warning edits if—

– Parents’ or independent student’s tax return status is “Will not file” and sum of earned income is within required range to file a return

– Parents’ AGI equal to student’s AGI

– Dependent student’s AGI equal to Worksheet A

– Parent or student reports receiving TANF or SSI but does not report an amount on Worksheet A

Financial Aid History Information from NSLDS

• NSLDS will send ACG and National SMART Grant data to CPS• Up to 3 ACG and National SMART Grant records will be

included on pre-screening record• New ACG and National SMART Grant Overpayment Contact

Information will be added• New Grad PLUS loan status codes of D3 and GB added• Grad PLUS MPN flag added to the pre-screening process

– A change in MPN status will generate a post-screening record to CPS; any change will generate a post screening reason code of “16”

Financial Aid History Information from NSLDS

• Value of “F” (Fraud Conviction) added as a valid value for Pell, FSEOG, ACG, National SMART Grant and Perkins Overpayment flags– Will be treated the same as a value of “Y”

• New post-screening reasons added– 17-Fraud Conviction added– 18-Fraud Conviction resolved

• Loan Status Codes “FR” and “FD”, and Loan Type Code “F” added

Important 2007-08 Dates

October 2006

– 2007-2008 CPS Test System User Guide

– Summary of Changes for the Application Processing System 2007-2008

Important 2007-08 DatesNovember 2006

– SAR/ISIR Comment Codes and Text– 2007-2008 EDE Technical Reference updated (including

revised ISIR Layout)– 2007-2008 ISIR Guide – School Electronic Processing Guide– Student Web Application Products Process Guide– Federal School Code List

December 2006– 2007-2008 EFC Formula Guide

Important 2007-08 Dates

January 2007

• January 1: FAFSA on the Web, Renewal FAFSA on the Web, Corrections on the Web available

• January 1: FAA Access to CPS Online

• January 2: Application processing system starts up

2007-08 Web Demonstration Site

• FAFSA on the Web and FAA Access demonstration sites available December 3, 2006– To access sites, go to http://fafsademo.test.ed.gov– Enter:

• User Name: eddemo• Password: fafsatest

• Click on FOTW or FAA Access to CPS Online Demo System button

• Available through December 2007

http://fafsademo.test.ed.gov/

Support for Students, Parents, and FAAs

• Federal Student Aid Information Center– Phone: 800/4FED-AID (800/433-3243)– TDD/TTY services: 800/730-8913 – E-mail: [email protected]

• Representatives are available:– Monday through Friday, 8 a.m. to 12 Midnight, Eastern

Standard Time – Saturday, 9 AM – 6PM, Eastern Standard Time– Extended Weekend Hours, based on time of year and

need

CPS/SAIG Technical Support

We appreciate your feedback and comments.We can be reached at:• Phone: 800/330-5947 • TDD/TTY services: 800/511-5806 • E-mail: [email protected] • Representatives are available Monday through

Friday, 7 a.m. to 7 p.m., Central Standard Time

Contact Us!We welcome your feedback, comments and questions.We can be reached at:• Marilyn LeBlanc, Director of Application Processing

– (202) 377-3205– [email protected]

• Michele Brown, Director of Applicant Products and Customer Service– (202) 377-3203– [email protected]

Application Processing Sessions• Session 7 - Citizenship Issues: Handling Situations for Applicants with

Undocumented Parents

• Session 18 - EDExpress Changes for HERA and 2007-2008

• Session 21 - Responding to Student Inquiries – Tools and Techniques

• Session 24 - FAFSA Simplification – What Does That Mean and How Do We Get There?

• Session 27 - Using Return of Title IV Funds on the Web: A Hands-On Overview

• Session 28 - FAA Access to CPS Online for New Users (Hands-On)

HERA Dear Colleague Letters• GEN-06-02 (3/10/2006)–Enactment of HERA 2005• GEN-06-03 (3/14/2006)-Correction to GEN-06-02• GEN-06-04 (4/5/2006)-ACG and National SMART Grant• GEN-06-05 (4/27/2006)-Changes to student and institutional

eligibility• GEN-06-06 (5/2/2006)-National SMART Grant-eligible majors• GEN-06-08 (5/3/2006)-Implementation guidance for the ACG and

National SMART Grant• ANN-06-05 (5/30/2006)-HERA Training Opportunities• ANN-06-06 (6/20/2006)-Implementing HERA provisions

HERA Dear Colleague Letters• Interim Final Regulations (7/3/2006)-ACG and National SMART Grant• GEN-06-11 (6/21/2006)-Notice of HERA changes to foreign schools• HERA FAQs (7/14/2006) – General Eligibility/Change to Eligibility• Interim Final Regulations (8/9/2006) - HERA• GEN-06-15 (8/25/2006)-National SMART Grant – Revised List of

Eligible Majors• ANN-06-10 (9/01/2006)-HERA Training Announcement – one day

workshops• ANN-06-11 (10/12/2006)-2006-2007-FSA Coach-Newly updated edition

of FSA Coach contains HERA requirements

HERA Electronic Announcements Operational Guidance

• 5/5/06-High-level overview of operational implementation

• 5/11/06-Upcoming CPS Reprocessing

• 5/17/06-CPS Reprocessing Reminder

• 5/19/06-Updates to R2T4 on the Web and Archival of PC Product

• 5/23/06-Notice of Reprocessing Issue and Resolution

• 6/7/06-First Draft of 2007-08 FAFSA available for comment

• 6/14/06-Student Eligibility requirement for drug-related offenses


• 6/21/06-Notice of issue with May 24, 2006 reprocessing

• 6/23/06-Additional reprocessing scheduled for June 23, 2006

• 6/23/06-Updated guidance for Direct PLUS Loans for Graduate and Professional Students

• 6/26/06-R2T4 PC Product archival reminder

• 6/26/06-Update to 2006-07 SAR Comment Codes and Text Guide

• 6/27/06-2006-07 Revised EDE Technical Reference

• 6/30/06-Final 2006-07 Drug Worksheets

• 6/30/06-R2T4 Worksheets


• 6/30/06-Implementation Guidance – ACG and National SMART Grant

• 7/13/06-Updates related to ACG recognized Rigorous Secondary School Program of Study requirement

• 7/17/06-Update to 2006-07 EFC Formula Guide

• 7/24/06-Update to 2006-07 ISIR Guide

• 8/1/06-ACG and National SMART Grant Initial Authorizations

• 8/7/06-Availability of enhanced R2T4 on the Web Application


• 8/9/2006-Procedure for Fall 2006 adjustments to ACG and National SMART Grant Initial Authorizations

• 8/31/06-Availability of EDExpress 2006-07 Release 3.0

• 9/1/06-Availability of DL Tools Release 6.0 Enhancement for PLUS Loans for Graduate /Professional students

• 10/6/06-COD/HERA-related testing for the 2006-2007 Award Year

• 10/6/06-Internal Fiscal Year Accounting Activity Performed for ACG and National SMART Grant Funding

• 10/11/06-R2T4 on the Web Data Edits Functioning Incorrectly on Post-Withdrawal Tab

application processing system update marilyn leblanc director of application processing

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