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April 15-17, 2013 1 Federal Update For discussion purposes only TASFAA Spring Conference U.S. Department of Education Federal Update TASFAA Spring Conference April 17, 2013 2 2013-2014 Pell Grant Awards GEN-13-06 Maximum Pell award is $5,645 Minimum award amount for a full-time student is $582 Maximum Pell Grant eligible expected family contribution (EFC) is 5081 3 Pell - LEU LEU Lifetime Eligibility Used Reduces the duration of a student‟s eligibility to receive Pell Grant to 12 semesters (600% - 6 full Scheduled Awards) Applies to all students effective with the 2012-13 award year. Calculation includes all earlier years of the student‟s receipt of Pell NO “grandfather” clause 4 Pell - LEU Calculate the equivalency by adding together each of the annual percentages of a student‟s scheduled award that was actually disbursed to the student Once LEU reaches 600%, student no longer eligible for Pell May impact FSEOG eligibility If LEU more than 500% but less than 600%, partial eligibility for next award year COD release June 27/28 will include hard rejects for disbursements over 600% Edits for 12/13 and beyond 5 for 2013-2014 includes: Adding the Pell Lifetime Limit Flag from NSLDS to the ISIR Adding the Pell LEU percentage to the NSLDS pre- screening data and to the ISIR The Pell LEU % will be a 7-character field with an implied decimal (example: xxxx.xxx%) 2013-2014 CPS Enhancements Pell Lifetime Eligibility Used (LEU) 6

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Page 1: PowerPoint Presentation FED updat… · Title: PowerPoint Presentation Author: user ce Created Date: 4/3/2013 1:49:17 PM

April 15-17, 2013

1

Federal Update

For discussion purposes only

TASFAA Spring Conference

U.S. Department of Education

Federal Update

TASFAA Spring Conference April 17, 2013

2

2013-2014 Pell Grant Awards

GEN-13-06

Maximum Pell award is $5,645

Minimum award amount for a full-time

student is $582

Maximum Pell Grant eligible expected

family contribution (EFC) is 5081

3

Pell - LEU

LEU – Lifetime Eligibility Used

Reduces the duration of a student‟s eligibility

to receive Pell Grant to 12 semesters (600%

- 6 full Scheduled Awards)

Applies to all students effective with the

2012-13 award year.

Calculation includes all earlier years of the

student‟s receipt of Pell

NO “grandfather” clause

4

Pell - LEU

Calculate the equivalency by adding together each of

the annual percentages of a student‟s scheduled

award that was actually disbursed to the student

Once LEU reaches 600%, student no longer

eligible for Pell

May impact FSEOG eligibility

If LEU more than 500% but less than 600%, partial

eligibility for next award year

COD release June 27/28 will include hard rejects for

disbursements over 600%

Edits for 12/13 and beyond

5

for 2013-2014 includes:

• Adding the Pell Lifetime Limit Flag from NSLDS to the ISIR

• Adding the Pell LEU percentage to the NSLDS pre-

screening data and to the ISIR

• The Pell LEU % will be a 7-character field with an implied decimal

– (example: xxxx.xxx%)

2013-2014 CPS Enhancements Pell Lifetime Eligibility Used (LEU)

6

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April 15-17, 2013

2

Federal Update

For discussion purposes only

TASFAA Spring Conference

Pell - LEU

• If less than 100% eligibility remaining, handle

award like a transfer student • Pay up to full amount allowed in first payment

period/term

• Pay remaining balance in subsequent payment

periods

• May round cents but cannot exceed 600% – COD reaching out to those schools with 12/13

disbursements >600% through email campaign

7

Pell – LEU (Example) Student‟s annual Pell award is $4800 (100%)

• Student‟s current LEU is 523.867% of 600%

• Student has 76.133% LEU remaining

• Do not round percentages

• 76.133% of the student‟s annual award is $3654.384

Disburse 50% of annual award ($4800) 1st term = $2400

(assuming full-time student)

Disburse remainder of annual award in second term, up

to the remainder of their LEU = $1254.384 (26.133%)

• May round the dollar amount down to $1254 (26.125%), or

award the cents $1254.38 (26.133%)

8

COD Reporting Time Frames

2/28/13 Federal Register & 3/15/13 Elect. Ann. For 2012-2013 award year, in COD, for disbursements

(or adjustments to previous disbursements) made on

or after April 1, 2013, a school must submit Pell,

IASG, Direct Loans and TEACH disbursement records

no later than 15 days after making the disbursement

(or becoming aware of an adjustment)

Prior to April 1, 2013, disbursements records had to

be submitted within 30 days.

Expect the corresponding Federal Register notice for

2013-2014 award will require all reporting to be made

within 15 days

9

10

Dear Colleague Letter, GEN-12-18

A student may:

• Decline all or a part of a Pell Grant award

• Return, during an award year, all or a part of a

disbursement already made within the same award year

The student must provide a signed, written statement:

• Clearly indicating his/her decline/return of Pell Grant funds

• Acknowledges that funds may not be available at a later

date

School must submit any required adjustment records for

the student to the COD System

Declining a Pell Grant

Note: An institution may not package

need-based Title IV aid to compensate.

Federal Register – May 2, 2012

Removed regulations pertaining to a 2nd scheduled Pell

Grant (2 Pells in one award year)

Crossover Payment Period (period in 2 award years)

Removed requirement to compare ISIRs from both award

years and pay from the year with the higher payment

The school will determine which award year the payment

period will be placed (34 CFR 690.64)

Ability to meet need‟s of the student and maximize eligibility

The entire payment period must be considered in ONE award

year and the entire disbursement must be paid out of the

award year in which it was placed

Final Summer Cross-

Over Rules soon 11

12

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April 15-17, 2013

3

Federal Update

For discussion purposes only

TASFAA Spring Conference

GEN-13-09 - Unusual Enrollment History New Unusual Enrollment History Flag (UEH Flag) on the

2013-2014 ISIR.

Concerned about the student that has a pattern of

attending multiple institutions over a period of time where

they stay long enough to receive title IV credit balance

funds but then leave without completing the enrollment

period

Review Pell Grant disbursements over last 3 completed

award years

Depending on codes (N, 2, or 3) school may have to review

data to determine if valid reasons exist for student‟s

unusual enrollment history

13

NSLDS will add edits to identify records with unusual

enrollment histories and set a new NSLDS Unusual

Enrollment History Flag

• Pre-Screening - Unusual Enrollment History Flag:

2013-2014 - Unusual Enrollment History

Five flag values (N, Blank and 1- 3)

14

• Values for the NSLDS Unusual Enrollment History

Flag are described in the following table

2013-2014 - Unusual Enrollment History

NSLDS Unusual Enrollment History

Flag

Description SAR C Flag? SAR Comment

2 Unusual Enrollment History 2 (Possible enrollment pattern problem, school may need to resolve)

Yes 359

3 Unusual Enrollment History 3 (Questionable enrollment pattern, school must resolve)

Yes 360

N Enrollment pattern not unusual (No school action required)

No N/A

15

GEN-13-09 - Unusual Enrollment History

UEH Flag value is „N‟: No action is necessary

• UEH Flag value is „2‟: Must review student‟s

enrollment and financial aid records to determine if,

during the 3 award year review period (10/11,11/12,

12/13), student received a Pell Grant at the institution

that is performing the review

• If so, no additional action is required unless reason to

believe student is one who remains enrolled just long

enough to collect student aid funds. In this case, must

follow guidance provided for a UEH Flag of „3‟.

• If not, must follow guidance provided for a UEH Flag of „3‟

16

GEN-13-09 - Unusual Enrollment History

• UEH Flag value is „3‟: Review student‟s academic

records to determine if student received academic

credit at institutions student attended during the 3

award year period (10/11,11/12,12/13).

• Identify institutions where the student received Pell Grant

funding over the past three award years through NSLDS

• Must determine (through transcripts or grade reports), for each

of the previously attended institutions, whether academic credit

was earned during the award year in which the student

received Pell funds

Academic credit is considered earned if academic records

show student completed any credit hours or clock hours.

17

GEN-13-09 - Unusual Enrollment History

• UEH Flag value is „3‟:

• Academic Credit Earned: If determined student earned

any academic credit at each of the previously attended

institutions during the relevant award years, no further

action is required unless institution has other reasons to

believe student enrolls just to receive credit balances

• If it is determined that academic credit was NOT earned

at one or more of the previously attended institutions OR

the school had reasons to believe student just enrolls for

TIV funds, the institution must follow the “Academic

Credit Not Earned” guidance

18

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April 15-17, 2013

4

Federal Update

For discussion purposes only

TASFAA Spring Conference

GEN-13-09 - Unusual Enrollment History • UEH Flag value is „3‟:

• Academic Credit NOT Earned: If student did not earn

academic credit at a previously attended institution,

including current school, must obtain documentation from

student explaining why failed to earn academic credit

• Must determine whether the documentation supports

• (1) the reasons given by the student for the student‟s failure

to earn academic credit; and

• (2) student did not enroll only to receive credit balance funds

• Institutional determinations are final and not appealable to

the Department, and reasons for the decision must be

documented and maintained for possible review

19

GEN-13-09 - Unusual Enrollment History

• Approval of Continued Eligibility

• If school approves student‟s continued eligibility, may:

• Require student to establish academic plan, like (SAP),

• Counsel student about the impact of the student‟s

attendance pattern on future Pell Grant eligibility

• Denial of Continued Eligibility

• If a student did not earn academic credit and does not

provide acceptable explanation and documentation,

school must deny student any additional title IV

• Student must be provided an opportunity to question and

appeal decision, similar to SAP appeals

20

GEN-13-09 - Unusual Enrollment History

• Regaining Aid Eligibility

• Provide student information on how to regain title IV eligibility.

• expected that successful completion of academic credit

would form the basis for the student‟s subsequent request for

renewal of title IV eligibility

• could include meeting requirements of an academic plan

• Authority

• 484(a)(4)(A) of the Higher Education Act of 1965

• requires the student to sign a Statement of Educational Purpose

• by signing Statement of Educational Purpose (on FAFSA), student

certified would use title IV aid only to meet educational costs

21

22

GEN-11-16

Graduate Students

Subsidized Loans eliminated for Graduate Students

Effective for loans made for loan periods beginning on

or after July 1, 2012.

Subsidized Loans for loan periods beginning before

July 1, 2012 remain unchanged

COD will edit for changes.

Annual limits unchanged, all unsubsidized ($20,500)

Students still eligible for subsidized loans for

preparatory coursework and teacher certification

programs

23

Upfront Rebates

Elimination of Direct Loan Incentives

Terminates repayment incentives (“upfront rebate”)

to encourage on-time repayment of loans

Effective for loans first disbursed on or after July 1,

2012

COD will edit for compliance

An actual disbursement takes precedence over

an anticipated disbursement

Still allows interest rate reduction to borrowers who

repay electronically

24

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April 15-17, 2013

5

Federal Update

For discussion purposes only

TASFAA Spring Conference

Grace Period Interest Subsidy

Temporarily eliminates the interest subsidy

on Direct Subsidized Loans during the six

month grace period

Applies to new Direct Stafford Loans for

which the first disbursement is made on or

after July 1, 2012, and before July 1, 2014

10/19/12 Electronic Announcement Addendum discussing temporary loss of

interest subsidy

25

Interest Rates and Sub Eligibility 3.4% interest rates for subsidized loans disbursed on

or after 7/1/12 & before 7/1/13 Subsidized loan interest rates set to go up to 6.8% for

loans first disbursed on or after July 1, 2013 unless

Congressional legislative change

New Subsidized limits:

New borrowers on or after July 1, 2013 will be

eligible for Subsidized Loans up to 150% of

published program length

Once 150% limit reached, ineligible for subsidized

loans and interest subsidy benefits on all

subsidized loans first disbursed on or after 7/1/13

26 EA dated 7/10/12

Subsidized Loan Limitation Examples

Program Length Limitation on Subsidized

Loan Eligibility

4-Year Bachelor’s Degree 6 Years of subsidized loan eligibility

2-Year Associates Degree 3 Years of subsidized loan eligibility

1-Year Certificate Program 1 ½ Years of subsidized loan eligibility

10 Week Certificate Program

15 Weeks of subsidized loan eligibility

27

28

Subsidized Loan Limitation

Transfers –

Students maximum time to receive subsidized

loans is established based on the length of the

program the student is enrolled in

Remaining subsidized eligibility is calculated

by subtracting from maximum eligibility the

time the student has already received

subsidized loans

29

Subsidized Loan Limitation

Transfer Examples –

Student receives three years of subsidized loans

while enrolled in a two-year program

Student transfers to a four-year BA program

Student has three years of remaining

subsidized loan eligibility

Student receives three years of subsidized loans

while enrolled in a four-year BA program

Student transfers to a two-year AA program

Student has no remaining subsidized loan

eligibility

30

Subsidized Loan Limitation

FSA will track, calculate, and inform

students and institutions.

Likely to be codes and comments on

SARs and ISIRs.

COD editing and enforcement.

Schools will need to provide program

information, including length of program

Probably as part of COD reporting

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April 15-17, 2013

6

Federal Update

For discussion purposes only

TASFAA Spring Conference

31

Electronic Announcement March 1, 2013

March 15, 2013

32

Federal Pell Grant Program

No impact to either 2012-2013 or 2013-

2014

FWS and FSEOG Programs

No impact on 2012-2013 campus

allocations

2013-2014 allocations will be reduced

Will show in final allocations

Sequestration – TIV Programs

33

TEACH Grant and Iraq-Afghanistan Service Grant

Programs

Reductions apply only when the first disbursement

of the award is made after March 1, 2013

TEACH Grant awards must be reduced by 12.6

percent from the award amount the recipient would

otherwise have been entitled

Iraq-Afghanistan Service Grant awards must be

reduced by 37.8 percent from the award amount

the recipient would otherwise have been entitled

Sequestration – TIV Programs

34

Federal Direct Loan Programs

Direct Subsidized and Unsubsidized loan fees are

increased from 1.0 percent to 1.051 percent. For example, the fee on a $5,500 loan will increase

by $2.80 from $55.00 to $57.80

Direct PLUS loan fees (for parent and graduate

student borrowers) are increased from 4.0 percent

to 4.204 percent. For example, the fee on a $10,000 PLUS loan will

increase by $20.40 from $400.00 to $420.40

Sequestration – TIV Programs

35

Federal Direct Loan Programs Pending further guidance, schools should continue to

award, disburse, and report using 1% and 4%

Both ED‟s and schools‟ systems (or contractor‟s

systems) will need to be modified Will include implementation time for modifications

before the new fee structure will be required

Institutions will NOT be liable for the difference

between the 1 percent and 4 percent fees and the

revised fee amounts

If needed, ED work with the students/borrowers

Sequestration – TIV Programs

36

GEN-12-21

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April 15-17, 2013

7

Federal Update

For discussion purposes only

TASFAA Spring Conference

37

Non-Institutionally Owned Bookstores

Institution may credit a student‟s account with

Title IV, HEA funds to pay for educationally related

goods and services purchased by the student at a

bookstore as long as:

(1) Institution has a written contract or other

legal agreement with the entity operating the

bookstore under which the student is able to

charge educationally related goods and

services, and

(2) Institution obtains the student‟s

authorization

38

Non-Institutionally Owned Bookstores

This contract-based approach is an

extension of the policy we established for

non-institutionally owned student housing

Under a contractual agreement, for both

housing and books and supplies, we view

the institution as providing the goods and

services itself

39

GEN-12-10 EA – 6/29/12

E.O. 13607

• Signed April 27, 2012

• Designed to ensure information, support and

protections put in place for those students enrolled in

post-secondary programs receiving federal military

educational benefits

• Schools participating in certain federal military

education benefits enter into an

agreement/understanding with DOD and VA

• 6/29/12 EA provides a link to recorded webinar and

the executive order

40

E.O. 13607

• GEN-12-10 provides a series of Q & As to address

how TIV schools can comply with EO 13607

• Standardized cost form – ED‟s “Shopping Sheet”

• Aid Information – provides sample language

• State Authorization and recruitment – follow existing ED

regulations around state authorization,

misrepresentation, recruitment and incentive

compensation

• Accreditation – follow accreditation requirements

• Readmission – follow ED‟s guidelines for returning

service members

41

E.O. 13607

• GEN-12-10 provides a series of Q & As to address

how TIV schools can comply with EO 13607

• Withdrawals – treat VA and DOD funds similar to R2T4

and nonTIV schools develop refund policy similar to

R2T4

• Individual education plans – definitions/terms, degree

requirements and transfer hour procedures

• Advising points of contact – basic understanding of

benefits and services for military/service and family

members and contact information for additional help

42

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April 15-17, 2013

8

Federal Update

For discussion purposes only

TASFAA Spring Conference

43

GEN-13-05 GEN-12-12 GEN-12-17

EA – 9/11/12 EA – 9/28/12 EA – 1/18/13

Shopping Sheet – 2013-2014

• ED developed model format to deliver financial aid

information to students - section 484 of HEOA

• Encouraged to be used by schools starting in 13/14

• If will use sheet, send email to [email protected]

with institutional name and institution‟s OPE ID number

• Required to be used by schools that agree to comply

with Executive Order 13607 (principles of excellence)

• Provide prospective veteran/service member who have

applied for Title IV aid with information describing program

costs and potential Federal educational benefits and financial

aid prior to enrollment

44

Shopping Sheet – 2013-2014

• An annotated shopping sheet, along with background

information about the sheet, can be found at –

• http://www2.ed.gov/policy/highered/guid/aid-offer/index.html

• The sheet is for undergraduate and graduate students

• September 28, 2012 Electronic Announcement

• Provides PDF version, HTML specifications and download

button feature in XML used by schools/software providers

• January 18, 2013 Electronic announcement

• Contains institutional metrics file - graduation rate, loan

default rate, and median borrowing figures

45

GEN 13-05 – Q & As

• Question #1:

• Do I need to revise the Shopping Sheet when a student‟s aid

package changes?

• Answer #1:

• No. However, we encourage schools to use it when aid

packages are revised.

• Question #2:

• When should the Shopping Sheet be provided to prospective

students?

• Answer #2:

• Should be provided prior to enrollment

46

GEN 13-05 – Q & As

• Question #4:

•Will EDExpress be able to produce a

Shopping Sheet?

• Answer #4:

•Yes. We anticipate this capability will be

available in EDExpress in the spring of

2013.

47

GEN 13-05 – Q & As

• Question #5:

• May schools modify the Shopping Sheet?

• Answer #5:

• No. All components on the Sheet should remain on

the form

–Exception: Graduate schools can remove Pell/DL

Sub and use graduate student graduation rates

and borrowing metrics if available

• May include supplemental information in the

customized information box at the bottom of the form

48

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April 15-17, 2013

9

Federal Update

For discussion purposes only

TASFAA Spring Conference

49

Gainful Employment Information

Gainful Employment Page on IFAP at:

http://ifap.ed.gov/GainfulEmploymentInfo/

or from IFAP Homepage (right-hand side)

Regulations and Federal Register Notices

Dear Colleague Letters and Electronic

Announcements

Frequently Asked Questions

Training, including webinars

Resources

50

Gainful Employment

51

We are currently reviewing the recent legal decision about the Gainful Employment regulations. We are unable to respond to any questions related to Gainful Employment at this time,

but will provide additional guidance in the near future

Electronic Announcement dated July 6, 2012 (GE EA #39) • Provides background on decision • Current school requirements

• Do not have to report annual data for 11/12 • Additional GE data not required to included for adding new GE programs • Disclosure requirements still in affect

Stay tuned to IFAP for Updates!!!!

Electronic Announcement – 11/23/12

(GE EA #42)

• By January 31, 2013 all schools must update their

disclosures for each of their GE Programs for the

2011-2012 award year

• Until the ED template is available, institutions must

make their GE Program disclosures using an

institutionally-determined format

52

GE Disclosure Information

53

HEOA Changes

Increased CDR monitoring period from two to three

years

Beginning with the 2009 cohort, the calculation will be:

Borrowers who default in that federal fiscal year or by

the end of the next two federal fiscal years.

Establishes a three-year transition period for

sanctions

On 9/17/12 - released the FY 2010 2-Year CDRs to schools

On 9/24/12 - released the FY 2009 3-Year CDRs to schools

Draft FY2011 2-yr and FY2010 3-yr released March 2013

54

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April 15-17, 2013

10

Federal Update

For discussion purposes only

TASFAA Spring Conference

17.6%

17.2%

21.4%

22.4%

17.8% 15.0%

11.6%

10.7% 10.4%

9.6%

8.8%

6.9%

5.6% 5.9%

5.4% 5.2%

4.5% 5.1%

4.6%

5.2%

6.7% 7.0%

8.8% 9.1%

0

5

10

15

20

25

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Coh

ort

Def

au

lt R

ate

Cohort Years

FY 2010 2-Year Official National Student Loan Default Rates 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Issue

Date

New

55

11.0%

16.2%

18.3%

7.9% 7.5%

23.1%

14.5%

7.3%

22.7%

21.5%

22.9% 23.0%

7.3%

0% 0

5

10

15

20

25

FY 2009 3-Year Official National Cohort Default Rates by Sector

Co

ho

rt D

efa

ult

Ra

te (

%)

Sector

Pu

bli

c

Pu

bli

c

Pu

bli

c

Pu

bli

c

Pri

vate

Pri

vate

Pri

vate

Pri

vate

Pro

pri

etary

Pro

pri

etary

Pro

pri

etary

Pro

pri

etary

Fore

ign

56

Transition Period

57

Default Sanctions*

Default Prevention Plans

1st year CDR is equal to or greater than 30%:

Establish a default prevention task force; and

Develop and submit a default prevention plan to ED

2 consecutive CDRs equal to or greater than 30%:

Revise and submit default prevention plan

ED may require specific adjustments/actions

3 consecutive CDRs equal to or greater than 30%:

Lose Direct Loan AND Pell Grant eligibility

1 CDR above 40% lose Direct Loan eligibility

58 *ability to appeal/ challenge rates

Loan Exemptions

Schools are exempt from waiting 30 days for 1st

disbursement to first-time, first year borrowers and

from providing multiple disbursements for a single term

loan if:

3 official default rates below 15% for each of the three

most recent fiscal years for which data are available

Official CDRs can all be from the same rate calculation

(e.g. all 2-yr rates) or from either the 2 or 3 year rates as

long as they are from different fiscal years

For example, a school could meet the exception with the

following rates – FY09 2-yr; FY10 3-yr rate; FY11 2-yr

59

Default Prevention

ED‟s Default Prevention Resource Center

http://ifap.ed.gov/DefaultPreventionResourceInfo/index.html

[email protected].

Right-hand side of IFAP home page

Webinar Recordings –Default Prevention Conference

Several different presentations

ANN-12-18 (http://ifap.ed.gov/dpcletters/ANN1218.html)

ED Cohort Default Rate contacts

(202) 377-4259; [email protected]

60

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April 15-17, 2013

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Federal Update

For discussion purposes only

TASFAA Spring Conference

61

62

Studentloans.gov has brought ALL FSA loan

counseling tools together on one website

• Entrance Counseling

Subsidized & Unsubsidized and

Graduate/Professional Student PLUS

• Exit Counseling

NSLDS will continue to provide detailed Exit

Counseling reports and you‟ll continue to obtain

demographic and reference information from that

website as you do today

• Financial Awareness Counseling

studentloans.gov for 2013-2014

63

New “Repayment Estimator” to the website

• On the “My Preferences” screen

• Authenticated users will see loan data from NSLDS,

the prospective eligibility of each loan for a particular

repayment plan, and estimate the payment for a

particular plan based on several factors including…

Loan type

Loan balance

Income

Family size

Where you live

studentloans.gov for 2013-2014

64

Federal Loan Programs

65

NPRM – July 17, 2012

Final Federal Register - November 1, 2012

Effective date – July 1, 2013

Federal Register - December 7, 2012

Early implementation of Pay as You

Earn repayment plan effective 12/21/12

Federal Loan Programs

66

Maintain current Income Contingent Repayment

plan (ICR) with adjustments in notification

documentation and loan forgiveness process

Create new ICR plan based on future changes to

IBR - Pay As You Earn repayment plan

Max annual payment capped at 10% of discretionary

income; loan forgiveness after 20 years of qualifying

payments; partial financial hardship requirements;

adjustments for married borrowers depending on

filing status

Electronic application – studentloans.gov

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April 15-17, 2013

12

Federal Update

For discussion purposes only

TASFAA Spring Conference

Federal Loan Programs

67

• Modify IBR plan to incorporate SAFRA Act

Changes

Becomes effective July 1, 2014

Redefine new borrower and partial financial hardship

Maximum monthly payment limited to 10% of

discretionary income

Loan forgiveness after 20 years of qualifying payments

Improve notification requirements

Revised repayment requirements for borrowers who

leave IBR

Federal Loan Programs

68

Total and Permanent Disability Discharge

Perkins, FFEL and Direct Loans

Borrowers representative can be involved in entire

process

Borrowers apply for discharge directly to ED who will

notify all lenders

ED to create an OMB form for reporting earnings

Ensure application process for veterans with VA

documentation similar to non-veteran process

Revise provisions to require payments by borrowers

after discharge is granted be returned to the borrower

Federal Loan Programs

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Total and Permanent Disability Discharge

Permit a TPD discharge based on a borrower‟s

Social Security Administration (SSA) notice of

award for Social Security Disability Insurance

(SSDI) benefits or Supplemental Security Income

(SSI) benefits IF classified as permanently

impaired—medical improvement not expected

(reviewed by SSA every 5-7 years)

Borrowers still subject to the three-year

discharge review that is currently in place

Federal Register – 9/27/2012

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• Updated Waivers to HEROES Act

– Assist military service members called to active duty or

qualifying National Guard duty

– Assist those residing or working in a declared disaster area

tied to a national emergency, war or military operations

– Waivers and Modifications include:

- No grant overpayments owed under R2T4

- Signed statements of tax extensions

- LOA requests to not have to be in writing

- Credit balance timeframe met if contact attempted

- Can hold balance up to 45 days

Federal Register – 9/27/2012

71

• Updated Waivers to HEROES Act

–Waivers and Modifications include:

- 60 day loan cancellation period

- verbal authorizations allowed

- various loan statuses and payment requirements

- parental verification & FAFSA signature

requirements

- Effective 9/27/12 through 9/30/17

Future Federal Registers

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Teacher Preparation and TEACH Grants

Institutional reporting & State accountability –

quality of teacher preparation programs

“High Quality” Program and Services

Definitions associated with school eligibility to

participate in TEACH Grant

Service and Repayment obligations for TEACH

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April 15-17, 2013

13

Federal Update

For discussion purposes only

TASFAA Spring Conference

Future Federal Registers

73

Other Student Loan Issues

“Naturally readable” Direct Loan regulations

Various aspects of defaulted borrower process

Loan Rehabilitations

Perkins loan issues – deferments, enrollment reporting,

loan assignments…

Spring 2013 Negotiated Rule-Making

• May 1, 2012 Federal Register Notice

• Topics – preventing fraud; use of debit cards and other

banking mechanisms for disbursing TIV; improve and

streamline campus-based programs

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Dear Colleague Letters

• GEN-13-07– Net Price Calculator

• Q & As; References

• GEN-13-02 – Direct Loan Funds

• inadvertent overborrowing; failure to attend

• GEN-13-01 – Only two types of DCLs (GEN & ANN)

• GEN-12-19 – New Perkins MPN

• Must use by January 1, 2013

75

Electronic Announcements

76

• 3/25/13 - Transition to New NSLDS Enrollment

Reporting File Layouts and Retirement of SSCR

Software

• 3/8/13; 3/12/13 – changes to log-in process for specific

ED systems including rules of behavior and annual

security training and COD access criteria

• 1/18/13 – ED social media tools to promote FAFSA

completion

• 1/18/13 – enhancements to MyStudentData download

on NSLDS

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Training

• 2012 FSA Conference

• http://fsaconferences.ed.gov/

• Download presentations; view recorded sessions

• FSA Fall Webinar Series – October 2012

• R2T4 Modules, R2T4 Clock Hours, Clock Hour Issues,

Campus-Based Programs, future Q & A session

• ANN-12-21 (recordings will be posted to IFAP)

• Fundamentals of Federal Student Aid Administration

• ANN-12-22

• New requirements – CEO/owner must attend entire training;

to register participants must complete online training

78 78

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April 15-17, 2013

14

Federal Update

For discussion purposes only

TASFAA Spring Conference

Resources

• 2013 BLUE BOOK

• http://ifap.ed.gov/ifap/BlueBook.jsp?year=2013

• Designed to provide guidance to business and fiscal

officers on accounting, recordkeeping, managing,

and reporting federal student aid programs

• IFAP.ed.gov website

• “My IFAP” – left-hand side

• Campus-Based Call Center

• 877-801-7168; [email protected]

79 79

Contacts

• Kansas School Participation Team

• Main Number: 816-268-0410

• Tom Beckerle (IIS) - 816-268-0418

• Jan Brandow (IIS) – 816-268-0409

• Atlanta Training Officers

• David Bartnicki – 404-974-9312

• Michael Roberts – 404-974-9313

• Email – [email protected]

80 80

“NEW” - Training Feedback

To ensure quality training we ask all participants to

please fill out an online session evaluation

• Go to http://s.zoomerang.com/s/DavidBartnicki

• Evaluation form is specific to David Bartnicki

• This feedback tool will provide a means to educate and

inform areas for improvement and support an effective

process for “listening” to our customers

• Additional concerns about training can be directed to

[email protected]

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