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U.S. Department of Education. Federal Update. UASFAA Spring Conference April 18, 2013. Title IV Program Budget. Title IV Aid Available. * President’s FY 2013 Budget Request. President’s Budget Request Fiscal Year 2014. $5,785 maximum Pell Grant

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U s department of education

U.S. Department of Education

Federal Update

UASFAA Spring Conference

April 18, 2013


Title iv program budget

Title IV Program Budget


Title iv aid available

Title IV Aid Available

* President’s FY 2013 Budget Request


President s budget request fiscal year 2014

President’s Budget RequestFiscal Year 2014

  • $5,785 maximum Pell Grant

  • Increase Federal Work Study by $150 million

  • Reform Campus-Based Aid to encourage value and completion

  • Provide a long-term fix for loan interest rates

  • Expand “Pay as You Earn”

  • Race to the Top: College Affordability and Completion - $1Billion


U s department of education

Sequestration

Electronic

Announcement

March 1, 2013

March 15, 2013


U s department of education

Sequestration – TIV Programs

  • 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


U s department of education

Sequestration – TIV Programs

  • 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% from the award amount the recipient would otherwise have been entitled

    • Iraq-Afghanistan Service Grant awards must be reduced by 37.8% from the award amount the recipient would otherwise have been entitled


U s department of education

Sequestration – TIV Programs

  • Federal Direct Loan Programs

    • Direct Subsidized and Unsubsidized loan fees are increased from 1.0 % to 1.051 %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% to 4.204%

      • For example, the fee on a $10,000 PLUS loan will increase by $20.40 from $400.00 to $420.40


U s department of education

Sequestration – TIV Programs

  • 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% and 4% fees and the revised fee amounts

      • If needed, ED work with the students/borrowers


U s department of education

Federal Pell

Grant Program


2013 2014 pell grant awards

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


Pell leu

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


Pell leu1

Pell LEU

  • Add each annual percentage of 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 is more than 500% but less than 600%, partial eligibility for next award year

  • COD release June 27 will include hard rejects for disbursements over 600%

  • Edits for 12/13 and beyond


U s department of education

2013-2014 CPS Enhancements

Pell Lifetime Eligibility Used (LEU)

  • 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%)


Pell leu2

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

  • There is no minimum payment


  • Pell leu example

    Pell – LEU (Example)

    • Student’s annual Pell award is $4800 (100%)

      • Student’s current LEU is 523.867% of 600% - Do not round %

      • Student has 76.133% LEU remaining

      • 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%)


    Cod reporting time frames

    COD Reporting Time Frames

    2/28/13 Federal Register & 3/15/13 Elect. Ann.

    • Pell, IASG, Direct Loans and TEACH disbursement records (or adjustments) made on or after April 1, 2013, must be submitted to COD no later than 15 days after making the disbursement (or becoming aware of an adjustment)

      (Prior to April 1, 2013, disbursement records had to be submitted within 30 days.)

    • Expect aFederal Register notice for 2013-2014 will require all reporting to be made within 15 days


    Declining a pell grant

    Declining a Pell Grant

    • 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

    • Note: An institution may not package

    • need-based Title IV aid to compensate.


    U s department of education

    2013-2014

    NSLDS

    Unusual Enrollment

    History Flag

    “separate from verification”


    Unusual enrollment history dear colleague letter gen 13 09

    Unusual Enrollment History Dear Colleague Letter GEN 13-09

    • New Unusual Enrollment History Flag (UEH Flag) on the 2013-2014 ISIR

    • ED Reviews Pell Grant disbursements over last 3 completed award years

    • School may have to review data to determine if valid reasons exist for student’s unusual enrollment history

    • School may have to deny further Title IV funds

    • Not related to verification tracking groups 4 or 5


    U s department of education

    NSLDS Identifies Records

    • Flag values

    • (N, Blank and 1- 3)

    NSLDS adds edits to identify records with unusual enrollment histories and sets an NSLDS Unusual Enrollment History Flag during Pre-screening process


    U s department of education

    Unusual Enrollment History

    Values for the NSLDS Unusual Enrollment History Flag


    Ueh flag n and ueh flag 2

    UEH Flag = N and UEH Flag = 2

    • UEH Flag value = N No action is necessary

    • UEH Flag value = 2 Must review student’s enrollment and financial aid records to determine if, during the 3award 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 unlessyou believe student 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.


    Ueh flag 3

    UEH Flag = 3

    • Must review student’s academic records to determine if student received academic credit at institutions student attended during the 3 award year period

      • Identify institutions attended through NSLDS

    • Use transcripts or grade reports for each of the previously attended institutions to determine 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.)


    Ueh flag 31

    UEH Flag = 3

    • Academic Credit Earned: If determine student earned any academic credit at each of the previously attended institutions during the relevant award years, no further action is required unlessinstitution has other reasons to believe student enrolls just to receive credit balances

    • If determine 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


    Ueh flag 32

    UEH Flag = 3

    • Academic Credit NOT Earned: If student did not earn academic credit at a previously attended institution, including your 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) that student did not enroll only to receive credit balances

    • To extent possible, obtain third party documentation to support student’s reasons


    Ueh flag 3 denying eligibility

    UEH Flag = 3 Denying Eligibility

    • Institution determines whether circumstances of failure to receive credit warrant continuation of Title IV Aid – if not, must deny further aid

    • Reasons must be documented and maintained

    • Written denial must be provided to the student

    • Student must be given opportunity to question and appeal the decision and information on how to regain eligibility

  • Institutional determinations are final and can not be appealed to the Department


  • Ueh continued eligibility

    UEH Continued Eligibility

    • Approving 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


    Regaining eligibility

    Regaining Eligibility

    • School must provide student information on how to regain Title IV eligibility

      • Successful completion of academic credit would be the basis for the student’s subsequent request for regaining Title IV eligibility

      • Could include meeting requirements of an academic plan

  • Authority

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

      • Student signs a Statement of Educational Purpose

      • Student certified that Title IV aid would only be used to meet educational costs


  • U s department of education

    Direct Loans

    Public Law 112-141

    Applies to “new” borrowers on or after July 1, 2013


    Subsidized loan limitation

    Subsidized Loan Limitation

    • When student has received subsidized loans for 150% of the published time of the academic program –

      • Student may not receive any additional subsidized loans, and

      • Subsidized loans received from July 1, 2013 lose their subsidy

    • Special calculation for transfer students

    • “Likely” that we will prorate for partial loans


    Subsidized loan limitation examples

    Subsidized Loan Limitation Examples


    U s department of education

    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 for the new program the time the student has already received subsidized loans


    U s department of education

    Subsidized Loan Limitation

    • Transfer Examples –

      • Student receives two years of subsidized loans while enrolled in a two-year program

        • Student transfers to a four-year BA program

        • Student has four 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


    U s department of education

    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 to COD & NSLDS

    • Schools will need to update and correct loan academic year dates and loan period dates


    College choice tools know before you go know before you owe

    College Choice ToolsKnow Before You GoKnow Before You Owe


    College scorecard

    College Scorecard

    College Scorecard

    An online tool that will make it easier for students and families to compare colleges by comparing information such as: net price; graduation rates; default rates; student loan debt; and earnings potential


    U s department of education

    Executive Order 13607

    Establishing Principles of

    Excellence for Educational Institutions

    Serving Service Members, Veterans,

    Spouses and other Family Members

    GEN-12-10

    EA – 6/29/12


    Financial aid shopping sheet

    Financial Aid Shopping Sheet

    Student Specific Information:

    Institutional Metrics:

    Graduation rate under “Student Right-to-Know”

    Most recent cohort default rate

    Median debt for completers

    Loan repayment information

    Cost of Attendance Elements

    Grants and Scholarships

    Net price After Grants

    Work Options

    Loan Options

    Other Options Including Family Contribution

    Contact information


    U s department of education

    Gainful

    Employment

    Programs


    Gainful employment

    Gainful Employment

    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!!!!


    Ge disclosure information

    GE Disclosure Information

    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


    U s department of education

    Cohort Default Rates


    Heoa changes

    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


    U s department of education

    45


    U s department of education

    • FY 2009 3-year

    • rate is 13.4%


    Transition period

    Transition Period


    Default sanctions

    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

    *ability to appeal/

    challenge rates

    48


    Loan exemptions

    Loan Exemptions

    • Schools are exempt from waiting 30 days to disburse 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

    49


    Default prevention

    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]

  • 50


    U s department of education

    studentloans.gov


    S tudentloans gov for 2013 2014

    studentloans.gov for 2013-2014

    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


    S tudentloans gov for 2013 20141

    studentloans.gov for 2013-2014

    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


    U s department of education

    Federal Registers


    Negotiated rulemaking hearings

    Negotiated Rulemaking Hearings

    • Cash management

    • State authorization for distance education programs

    • State authorization for foreign locations of domestic institutions

    • Clock to credit hour conversion

    • Gainful employment

    • Campus safety and security reporting

    • Definition of “adverse credit” for the direct PLUS loan program

    April 16 Federal Register


    Future federal registers

    Future Federal Registers

    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


  • Future federal registers1

    Future Federal Registers

    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


    Federal register 9 27 2012

    Federal Register – 9/27/2012

    • 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 20121

    Federal Register – 9/27/2012

    • 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


    Federal loan programs

    Federal Loan Programs

    • 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 programs1

    Federal Loan Programs

    • 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


    Federal loan programs2

    Federal Loan Programs

    • 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 programs3

    Federal Loan Programs

    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 programs4

    Federal Loan Programs

    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


    U s department of education

    Additional DCLs

    &

    Announcements


    State authorization

    State Authorization

    • GEN-13-4 34 CFR 600.9(a) and (b)

    • Schools must be legally authorized by the state to provide postsecondary education

    • States must provide oversight and approvals that meet regulations

    • States must have a process to review and act upon complaints

    • States that were not able to provide appropriate authorizations were given until July 1, 2013


    Dear colleague letters

    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


    Electronic announcements

    Electronic Announcements

    • 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


    U s department of education

    Training & Resources


    Training

    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


    Resources

    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]


    Training evaluation

    Training Evaluation

    To ensure quality training, we ask all participants to complete an online evaluation for each session

    • https://s.zoomerang.com/s/DeborahTarpley

      • Evaluation form is specific to Deborah Tarpley

    • Feedback is a tool to help us improve our training and to listen to our customers

    • Additional comments regarding training can be directed to [email protected]


    Contacts

    Contacts

    • Denver School Participation Team

      • Main Number: 303-844-3477

      • Leave a message, it will get routed

    • Denver Training Officers

      • Margaret Day – 303-844-3146

      • Rick Renshaw – 303-844-0433

      • Deborah Tarpley - 303-844-3683

    • Email – [email protected]


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