Session 69. Blazing the Guaranty Agency Financial Report (ED Form 2000) Sandra Simmons Katrina Turner. Agenda. When to Submit the Guaranty Agency Financial Report (GAFR) Uses of the GAFR Data Changes to GAFR Reporting as a Result of the Higher Education Reconciliation Act (HERA)
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Blazing the Guaranty Agency Financial Report(ED Form 2000)
Minimum Reserve Ratio*
If a guarantor drops below the minimum reserve ratio of .25% for two consecutive years, they are required to submit and implement a Management Plan acceptable to the Department.
* Higher Education Act of 1965 (HEA, as amended), Section 428(c)(9)(C)
Minimum Reserve Ratio Calculation
Federal Fund Balance (AR-26) divided by Original Principal Outstanding (OPO)
* The historical calculation is used for evaluating a guaranty agency’s financial condition.
Federal Fund Balance (AR-26) + Loan Loss Liability (AR- 56) + FY06 and FY07 Reserve Recalls Not Returned divided by Original Principal Outstanding (OPO)
AR-1 (-) AR-2 (+) AR-3 (-) AR-4 (-) AR-5 (+) AR-6 (-) AR-7 (-) AR-8 (-) AR-9 (-) AR-10 (-) AR-11 (-) AR-12
Loans in Repayment (see calculation above)
5% Trigger (In Repayment) 5% of Calculated Value Above
9% Trigger (In Repayment) 9% of Calculated Value Above
Amount Requested Fiscal Year to Date FYTD Total MR-1 “Other Amount”
Dollars Paid Fiscal Year to Date FYTD Total MR-1 “Principal Amount”
Rehabilitated Loans Applied If a GA has an Rehabilitation Agreement – Cumulative total of MR-10 Rehabilitated Loan Principal Amount. If a GA has no Rehabilitation Agreement this Field would be zero.
Refunds Applied All GA’s receive credit for Partial Refunds (MR-7-A). GA’s with Repurchase Agreement – Receive credit for Repurchases – CFY,
MR-5-A, Defaults. W/agreement total for MR-5-A plus MR-7-A. W/out agreement total for MR-7-A only.
Trigger Basis Amount Represents the fiscal year to date amount of Dollars Paid FY to Date reduced by the amounts calculated for Rehabilitated Loans Applied and
Percent of Request Paid Dollars Paid FY to Date divided by Amount Requested FY to Date.
Trigger Rate Trigger Basis Amount divided by Loans in Repayment.