Federal Update
Louisiana Association of Student
Financial Aid Administrators
October 9, 2014
Kevin Campbell
U.S. Department of Education
Copies of Presentation
All FSA presentations will
be made available to
LASFAA next week for
publication/dissemination
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FSATRAINING.INFO
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New website with FSA Training
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SAP
Default Management
Introduction to FSA
COACH
Consumer Info
School Eligibility
Student Eligibility
EDExpress
Recorded webinars
And MORE!
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Transition Period
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National Student Loan Default Rates
15.0%
Issue
Year
2012
2013
2014
14.7%
Cohort Default Rate
14.5%
14.0%
13.7%
13.5%
13.4%
13.0%
12.5%
FY 2009 Official
FY 2010 Official
FY 2011 Official
National Default Rates
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On September 22, 2014, the Department
electronically distributed FY 2011 3-Year official
cohort default rates to all eligible schools
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Time period for appealing FY 2011 3-Year
Official Cohort Default Rates (34 C.F.R Part
668, Subpart N) begins on Tuesday, September
30, 2014 for all schools
FY2011 CDR Calculations
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Due to concerns with split-servicing, ED adjusted all three
of the most recent official 3-year official CDRs for any
institution that otherwise would have been subject to
potential loss of eligibility due to FY 2011 rates
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excluded certain borrowers who defaulted on a loan but had
one or more other Direct /FFEL loans in repayment, deferment,
or forbearance for at least 60 consecutive days and that did not
default during the applicable CDR monitoring period
60 consecutive days must have been between date loan on
which borrower defaulted entered repayment and date when
borrower defaulted on that loan
Electronic Announcement – dated 9/23/14
Default Sanctions* (3-year rates)
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Default Prevention Plans
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1st year CDR is equal to or greater than 30%:
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Establish a default prevention task force; and
• Develop and submit a default prevention plan to ED
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2 consecutive CDRs equal to or greater than 30%:
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Revise and submit default prevention plan
• ED may require specific adjustments/actions
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3 consecutive CDRs equal to or greater than 30%:
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Lose Direct Loan AND Pell Grant eligibility
FY2011 or later CDR above 40% lose DL eligibility
*ability to appeal/challenge rates
GEN-14-03
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Provides a summary of:
• Cohort Default Rate calculations
• Consequences of high default rates
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CDR challenges, adjustments and appeals
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NOTE: An institution’s decision to stop participating in the
Direct Loan Program does NOT eliminate the possibility that it
will lose eligibility to participate in the Pell Grant Program.
CDRs, and possible consequences, continue until no more of
the institution’s former students enter repayment on their DL
or FFEL loans taken for attendance at the institution
Detailed discussion and chart on participation rate index
challenges and appeals
Default Management Resources
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Default Prevention Resource Webpage
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www.ifap.ed.gov/DefaultPreventionResourceInfo/index.html
Right-hand side of IFAP website
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Default Prevention questions can be sent to:
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Cohort Default Rate Guide
defaultpreventionassistance@ed.gov
Default Management Website
www.ifap.ed.gov/DefaultManagement/DefaultManagement.html
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Cohort Default Rate questions should be directed to:
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Default Prevention and Management Course
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(202) 377-4259; fsa.schools.default.management@ed.gov
fsatraining.info (under training by topics)
Perkins
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Perkins Loan Program Receives Automatic One-Year
Extension
The Perkins Loan Program, which has not received a
Federal Capital Contribution (FCC) since fiscal year (FY)
2005 or cancellation reimbursements since FY 2010,
received an automatic one-year extension through
September 30, 2015. Unless Congress enacts legislation
that specifically repeals the authorization of the program,
the Perkins Loan Program will continue at least through
the 2014-15 award year.
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Interest Rates
• The Administration worked with Congress to
reach agreement on a plan to reverse the
interest rate increase
• New rate structure applies to all loans first
disbursed after June 30, 2013
• Annual fixed rates based on 10 Year T-Bill plus
add-on
• Applies to loans first disbursed between July 1
and June 30
• Rate applies for the life of the loan
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Interest Rates 2014-2015
• Undergraduate Students - Sub and Unsub
• 4.66% (last year’s Sub and Unsub was 3.86%)
• Add-on of 2.05% with cap of 8.25%
• Graduate students – Unsubsidized Loans only
• 6.21% (last year’s Grad Unsub – 5.41%)
• Add-on of 3.60% with cap of 9.5%
• PLUS Loans (parent and grad/professional)
• 7.21% (last year’s – 6.41%)
• Add-on of 4.60% with cap of 10.5%
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Sequestration
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Sequestration
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Sequestration
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Transcript Requests – 2014-2015
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Online IRS Transcript requests
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Beginning with tax year 2013, once an online transcript
request is validated, the IRS will return in real-time, a
transcript in portable document format (pdf) through
the new “Get Transcript Online” tool
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Tax filer can print/save/forward pdf transcript as needed
Other Transcript Requests
Tax filers can submit requests via - IRS2GO mobile app,
online “Get Transcript by Mail”, automated phone tool (1800-908-9946), or paper Form 4506 or 4506-T
• These request methods will result in a paper transcript
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DCL – GEN-14-05
Identity Theft – 2014-2015
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Beginning with the 2013 tax year, a tax filer who is
not able to request an IRS Tax Return Transcript
because of identity theft, will be able to call a
special IRS toll-free number (1-800-908-4490)
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Upon verification of identity, the tax filer can request
the IRS provide a paper copy of an alternative
document unique to identity theft issues (Tax Return
Data Base View - TRDBV)
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The TRDBV is an official transcript that can
be submitted to the school to meet
verification requirements
DCL – GEN-14-05
V4/V5 Tracking Results – 2014-2015
Issue:
Provide an efficient method for FAAs to report the
verification results for records selected with the V4 and V5
Verification Tracking Groups
Solution:
FAA Access has been updated to add Identity Verification
Results functionality to allow FAAs to enter results
individually or by file upload starting January 1, 2014
Electronic Announcements -11/13/13; 6/18/14
Federal Register 7/11/14
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https://faaaccess.ed.gov
V4/V5 Tracking Results – 2014-2015
Whom to report: student for whom school received an
ISIR with a Verification Tracking Group of V4 or V5 AND
for whom school requested verification documentation
• Do NOT include students the school selected for
verification of identity or high school completion status
When to report: 60 days following the school's first
request to the student to submit the required V4 or V5
identity and high school completion documentation
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changes to previously submitted Identity Verification
Results must be updated within 30 days
V4/V5 Tracking Results – 2014-2015
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Dropdown options/values will be #1-#5:
#1 - Verification completed in person, no issues found
#2 - Verification completed remotely, no issues found
#3 - Verification attempted, issues found with identity
#4 - Verification attempted, issues found with HS
completion
#5 - No response from applicant or unable to locate
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If issues found with BOTH identity and HS completion,
school will indicate issues found with identity (#3)
6/18/14 EA - provides information on when to use each
value based on specific circumstances
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V4/V5 Tracking Results – 2014-2015
Whom to report: student for whom school received an
ISIR with a Verification Tracking Group of V4 or V5 AND
for whom school requested verification documentation
• Do NOT include students the school selected for
verification of identity or high school completion status
When to report: 60 days following the school's first
request to the student to submit the required V4 or V5
identity and high school completion documentation
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changes to previously submitted Identity Verification
Results must be updated within 30 days
V4/V5 Tracking Results – 2014-2015
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Dropdown options/values will be #1-#5:
#1 - Verification completed in person, no issues found
#2 - Verification completed remotely, no issues found
#3 - Verification attempted, issues found with identity
#4 - Verification attempted, issues found with HS
completion
#5 - No response from applicant or unable to locate
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If issues found with BOTH identity and HS completion,
school will indicate issues found with identity (#3)
6/18/14 EA - provides information on when to use each
value based on specific circumstances
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Statement of Educational Purpose
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14-15 Statement of Educational Purpose (In Person)
…the Federal student financial assistance I may receive will be
used only for educational purposes…
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14-15 Statement of Educational Purpose (Notary)
…the Federal student financial assistance I may receive will only
be used for educational purposes… (See FR 6/13/13)
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15-16 Statement of Educational Purpose (In Person and Notary)
…the Federal student financial assistance I may receive will only
be used for educational purposes… (See FR 6/25/14)
2015-16 Verification
• Non tax filers
• If an institution questions a claim that the individual is
not required to file, must require applicant to submit a
“Verification of Nonfiling” (4506-T or online)
• A Verification of Nonfiling Letter for the 2014 tax
year must be dated on or after June 15, 2015
• An applicant will remain in the original 2015–2016
Verification Tracking Group for the entire 2015–
2016 award year regardless of subsequent
corrections to the applicant's record
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2015-16 Verification
• Federal Register published June 25, 2014
• GEN-14-11 published June 30, 2014
• ED will provide suggested text - Fall 2014
Same items to be verified as 2014-2015
Same Verification Tracking Groups as 2014-2015
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2014-15 Verification
References & Resources
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Federal Register Notice - June 13, 2013
DCL GEN-13-16 - June 13, 2013
DCL GEN-14-05 – March 25, 2014
14/15 FSA HDBK, AVG Section, Chapter 4
EA dated 11/8/13 – suggested text
EA dated 11/13/13; 6/18/14 – FAA Access tracking V4 & V5
EA dated 4/4/14 – FAA Access flat file procedures
EA dated 4/17/14 – 14/15 Tax Return Transcript Matrix
Program Integrity Q & A Website (verification topic)
• http://www2.ed.gov/policy/highered/reg/hearulema
king/2009/integrity-qa.html
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13/14 and 14/15 ISIRs
Update NSLDS Fraud Loan Flag
Issue:
NSLDS receives records from the Office of Inspector
General (OIG) that indicate someone has been convicted of
fraudulently obtaining Federal Loans and is no longer eligible
for aid
Solution:
Beginning January 1, 2014:
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Records will receive Reject Reason 24 and SAR Comment 272
Effective for 2013-14 and 2014-15
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2014-2015 FAFSA (GEN-13-12)
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New parental data collection:
Dependent students will be required to include FAFSA
income and other information from the dependent
student’s legal parents, regardless of the parents’ marital
status or gender, if those parents live together
• Legal parent means biological or adoptive
• New marital status response for dependent student’s
parents - “Unmarried and both parents living together”
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If divorced parents (biological or adoptive) of a dependent
student still live together, they complete the FAFSA as
"unmarried and living together" with information from both
2014-2015 FAFSA
Tax Filing Status
Issue - marital status conflicts with the tax filing status
Solution - students/parents begin reporting tax filing status on
FAFSA. System will compare tax filing status with marital status
(comment codes 361-368)
EA dated 5/15/14: comment codes are NOT conflicting
information and though ED encourages schools to review the data
associated with these comment codes, schools are NOT required
to review the comment codes (can be case-by-case)
- if review and no problems, simply annotate the file
- if review and problems, correct as appropriate and maintain
documentation
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Updated SAR Comment Codes Guide
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2014-2015 SAR Comment Codes
and Text Guide
(October 2014 Update)
http://ifap.ed.gov/sarcommcodestxt/
1415SARCommCodesTxtOctober2
014Update.html
New ISIR Guide
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New ISIR Guide for 2015-16
http://ifap.ed.gov/isirguide/attachments/1516ISIRGuide.pdf
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Introducing the FSA ID
The FSA ID will modernize access for students, parents and
borrowers to FSA systems
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FSA is adopting the best practice of using
a username and password instead of
personal information
The FSA ID
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Requires users to enter less information (2 fields
instead of 4)
Provides more secure access to user’s
information
Links to PIN information during registration
Offers self – service capability (name change)
The FSA ID (username and password)
will replace PIN for students, parents
and borrowers accessing FSA systems
starting on 4/25/15
New FSA ID login
Will be
updated
Old PIN login
Introducing the FSA ID
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What happens for new user?
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What happens if I have a PIN already?
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During account creation, the user will be asked for their PIN.
As long as the PIN information matches their other information, the
account will be linked to the FSA ID account
Will the changes affect a user’s ability to access
previous FAFSA submissions?
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Registration requests the same required information as PIN
New users will be directed to the registration page to create an FSA
ID (username and password) similar to today’s PIN creation page
If the user links their PIN, they will have access to previous FAFSA
submissions
Introducing the FSA ID
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Can users still access FAFSA by providing their
Last name, SSN and DOB?
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Will customer support change?
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Customer support will not change. Similar to PIN, all users will be
directed to call the FSAIC helpdesk for login related issues
Will my FSA access to other people’s information
require a new username and password?
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FAFSA functionality will not change except that the FSA ID will replace
the PIN information
Users will not be able to sign or correct their application without their FSA
ID.
This is only for users who are accessing their own information such as
students, parents, borrowers and applicants
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Enrollment Reporting Transition
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All schools must have implemented the new
enrollment reporting processes and file layouts
by October 1, 2014
• Schools that report using the new enrollment
reporting file layouts after July 1, 2014 must report
program-level enrollment information retroactive
to July 1, 2014
• must
report student’s current enrollment status for
any program in which student is or was enrolled
between July 1, 2014 and when institution begins
reporting under new format
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Enrollment Reporting Frequency
Beginning July 1, 2014, ED will
request enrollment information from
schools every 60 days and schools
will be required to respond to those
requests within 15 days of the date
that ED sent the enrollment reporting
roster to the school
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Schools may choose to receive
reports more frequently
NSLDS Program-Level Reporting
• GEN-14-17
• Academic
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(new enrollment status guidance)
program is defined as the combination of:
Institution OPEID number
Program Classification of Instructional Program (CIP) code
Credential Level
Published Program Length
• Dual
Majors
• For students enrolled in more than one major, each major is
considered an academic program and reported separately
• Doesn’t matter if get separate degrees or one degree
• Enrollment in a “minor” is not a separate program
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NSLDS Program-Level Reporting
• GEN-14-17
(new enrollment status guidance)
report a student’s “active enrollment status”
(full-time, three-quarter time, etc.) based on the total
number of credit or clock hours in which the student
is enrolled at the institution, regardless if any specific
credit applies to the reported academic program
• Institutions should report the same active enrollment
status (full-time, three-quarter-time, withdrawn, etc.)
at both the campus level and at the program level
• Must
Six examples provided in Dear Colleague Letter
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Enrollment Reporting
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New Enrollment Status Code of “Q” for three-quarter-time
enrollment
If the student changes his or her primary location to one of the
institution’s other campuses, the school will use the NSLDS
enrollment reporting process to provide the “move to” location
of the campus to which the student transferred
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Enrollment should not be certified at more than one campus
location
Schools should make every effort to add to their enrollment
reporting any of their enrolled students who were not included
on the NSLDS enrollment roster provided by the Department
but who received Title IV aid at another school
Enrollment Reporting Requirement
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§685.305 Determining the date of a student's
withdrawal.
(a) Except as provided in paragraph (b) of this section, a
school must follow the procedures in §668.22(b) or (c), as
applicable, for determining the student's date of
withdrawal.
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b addresses Summer
668.22 addresses R2T4
b and c separate required to take attendance and not required
A student not attending has withdrawn for Title IV
purposes
Enrollment Resources…
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New Enrollment Reporting Layouts: February 27, 2014
GEN-14-07 (NSLDS Enrollment Updates): April 14, 2014
NSLDS Newsletter 45: April 24, 2014
New Spreadsheet Submittal: July 16, 2014
New Enrollment Reporting Guide: July 23, 2014
ANN-14-16: Webinar Recordings #4 & #5 (NSLDS
program-level enrollment reporting requirements):
August 7, 2014
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The HEA provides that to be Title IV eligible
an educational program must be offered by:
A public or non-profit
postsecondary
educational institution
and leads to a degree;
or
Any institution and “to
prepare students for
gainful employment in a
recognized occupation”
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
Generally, all nondegree programs
must lead to gainful
employment
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Generally, all
programs at for-profit
institutions must lead
to gainful employment
Gainful Employment - Disclosures
Court left regulations (34 CFR 668.6(b)) in place that
require schools to disclose certain GE Program data
• Schools must use the Department’s GE Disclosure
Template to provide all GE disclosures
• Schools must update their GE program disclosures with 1314 information no later than January 31, 2015
• GE Electronic Announcement #50 (9/11/14)
• Template updates include: improved printing capabilities,
updated SOC codes, optional context boxes, graduate
certificate option, school name on output screen, bulk upload
tool used if certain criteria met with different length programs
• Technical questions: (855) 359-3697 or gedt@inovas.net
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Gainful Employment - Regulations
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Notice of Proposed Rulemaking (NPRM)
Federal Register - March 25, 2014
• OPE Website with discussions and materials
associated with GE negotiated rulemaking:
• http://www2.ed.gov/policy/highered/reg/hearul
emaking/2012/gainfulemployment.html
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Final Federal Register “expected” by
November 1, 2014
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Effective date would be July 1, 2015
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Institutional Security & Crime Reporting
• The “Violence Against Women Act” (VAWA)
amended the “Clery Act”
• Negotiations finished in April 2014 – consensus
reached
• NPRM published on June 20
• Final expected by November 1, 2014
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Institutional Security & Crime Reporting
• NPRM highlights
• new statistics required to be maintained around
dating violence, domestic violence, sexual
assault, and stalking
• new categories of hate crime
• new definitions
• development of primary and ongoing prevention
and awareness programs and campaigns
• improved disciplinary processes and descriptions
• outline various protective measures
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Institutional Security & Crime Reporting
• GEN-14-13 & EA dated 8/1/14
• Statute requires institutions to include this new
information in annual security reports beginning with the
October 1, 2014 report
• Though regulations have not been finalized yet,
institutions must make a good-faith effort to comply with
the statutory provisions as written
• should use the statute as the basis for revising or
developing policies, procedures, and programs in
advance of the report that must be issued by 10/1/14
• make sure appropriate authorities on campus are aware
of these changes
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Campus Security Policy Resources
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http://www2.ed.gov/admins/lead/safety/campus.html
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The Handbook for Campus Safety and Security Reporting
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Online tutorial
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FSATC Presentation in December
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Jim Moore
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Dear Colleague Letters
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GEN-14-06 – Recognized Equivalent of a HS Diploma
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A State-authorized examination that the State recognizes as
the equivalent of a high school diploma is considered a
recognized equivalent of a high school diploma
State authorized exams include not only the GED test but now
also include the High School Equivalency Test (HiSET) and the
Test Assessing Secondary Completion (TASC)
As of Jan. 2014, some States replaced GED with different
State-authorized exams or offer choices of authorized exams
A student who takes the HiSET, TASC, or other Stateauthorized examination will receive official notification of a
passing or failing score used to determine if a State will issue a
high school equivalency certificate
Direct PLUS Loan - Proposed
• NPRM published on August 8, 2014
• Comments due by September 8, 2014
• Purpose:
– update the standard for determining if a potential
parent or student borrower has an adverse credit
history for purposes of eligibility for a Direct PLUS
Loan (PLUS loan)
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Program Integrity and Improvement
• Negotiations began February 2014 (ended May
2014 without reaching consensus) Final Regs
expected by November 1, 2014.
• Topics:
• Cash management (debit cards, etc.)
• State authorization for distance education and
foreign locations of domestic schools
• Clock-to-credit hour conversion
• Definition of adverse credit for PLUS loan
borrowers
• Repeat Coursework
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New Appendices
Appendix A―Federal Student Aid Glossary
• Appendix B―Acronyms
• Appendix C―Technical Resources and Assistance
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Appendix D―Actions a School Should take When a
Student Dies
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All FSA guidance on how a school should proceed when
a currently enrolled Title IV recipient dies
Appendix E―HEA Table of Contents
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Appendices A, B and C brought over from The Blue Book
Was Appendix A in the 13/14 FSA HDBK
Active Page Links
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Active links have been inserted at the top of each
page in the seven Handbook volumes
For 14/15, active links are only in the Indexed Handbook
which is coming soon…
• May include links in individual volumes for future years
depending on school feedback
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Active Page Links
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The first two links are Glossary and Acronyms
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Links will take readers encountering a word or acronym
for the first time directly to the Glossary and Acronym
Appendix
The second set of links are DCL and CFR
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Links will take readers to pages where they can search
for the dear colleague letter or federal regulation
referenced in the Handbook
Comments on the changes to this year’s Handbook
should be sent to: FSAschoolspubs@ed.gov
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Need Help?
Research and Customer Care Center
800.433.7327
fsa.customer.support@ed.gov
Feedback link on IFAP
Reach FSA
855.FSA.4FAA -- 1 number to reach 10 contact centers!
Campus Based Call Center
COD
CPS/SAIG
NSLDS
G5
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eZ-Audit
School Eligibility Service Group
Foreign Schools Participation Division
Research and Customer Care Center
Nelnet Total & Permanent Disability Team
Contact Information
Your Region VI Regional Training Officers:
Trevor Summers
trevor.summers@ed.gov
214.661.9468
Rick Renshaw
rick.renshaw@ed.gov
214.661.9506
Kevin Campbell
kevin.campbell@ed.gov
214.661.9488
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Training Feedback
To ensure quality training we ask all participants to please
fill out an online session evaluation
https://s.zoomerang.com/s/KevinCampbell-TX
•
Feedback is a tool to help us improve our training and to
listen to our customers
Please provide any comments regarding this training or the trainer to:
Jo Ann Borel, Title IV Training Supervisor
joann.borel@ed.gov
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Thank You,
LASFAA!
Hope to see
You in Atlanta!
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