Federal Update
PASFAA
East/West
April 16 and 18, 2013
2012-13 Deadlines
 Federal Register Notice, 2/28/13
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ISIR with official EFC calculated by CPS no later
than student’s end date or 9/28/13
• Process date of ISIR is school’s receipt date
Corrections to 12/13 ISIRs, paper or electronic, no
later than 9/21/13
Pell and Iraq-Afghanistan Service Grant
disbursement records to COD no later than 9/30/13
Change to COD Disbursement Reporting
Applies to 2012-13 and 2013-14
• Actual disbursements and adjustments to
disbursements made on/after 4/01/13 must be
submitted to COD no later than 15 calendar days
after date of disbursement
• Applies to Pell Grant, Iraq-Afghanistan Service
Grant, TEACH Grant and Direct Loan
An institution's failure to submit disbursement records
within the required timeframe may result in the
Secretary rejecting all or part of the reported
disbursement. In addition, such failure may result in an
audit or program review finding.
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Sequestration
Federal Pell Grant Program
 No impact to either 2012-2013 or 2013-2014
FWS and FSEOG Programs
 No impact on 2012-2013 allocations
 2013-2014 allocations will be reduced
 Reflected in final allocations
5.52% decrease in 2013-2014 available funds in both
FWS and FSEOG
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Sequestration
TEACH Grant and Iraq-Afghanistan Service Grant
• Reductions apply only when the first disbursement
of the award is made after 3/01/13
 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
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Sequestration
Direct Loans
Increased Loan fees effective for loans first
disbursed on/after July 1, 2013
•
Direct Subsidized and Direct Unsubsidized loan fees
are increased from 1.0 percent to 1.051 percent
• Example -- fee on a $5,500 loan will increase
by $2.80 from $55.00 to $57.80
•
Direct PLUS loan fees (parent and graduate PLUS)
are increased from 4.0 percent to 4.204 percent
• Example -- fee on a $10,000 PLUS loan will
increase by $20.40 from $400.00 to $420.40
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New Loan Fees
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New fees effective based upon date of first disbursement,
not period of enrollment or award year dollars
Schools must revise any loans first disbursed before July
1, 2013 that were processed with new fees
• Make appropriate adjustments to students accounts
Schools must cancel any loans already submitted to COD
with first disbursements on/after July 1, 2013
COD will accept loans with higher fees beginning June
28,2013
No impact on loans with second/subsequent
disbursements after July 1, 2013
Sequestration
Direct Loan
• Systems (ED and school)will need modification
• FSA will include implementation time for those
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 will work with the students and
borrowers
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2013-2014 Pell Grant Payment Schedules
DCL GEN-13-06
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Maximum Scheduled Award is $5,645
Maximum Eligible EFC is 5081
Minimum Scheduled Award (formula) is $565
Minimum Scheduled Award (schedules) is
$582
No LEU Minimum
CPS Reprocessing began on 3/19/13
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2013-14 Funding
Pell and TEACH Grant are “records first”
• COD must have accepted disbursement record before
G5 will allow drawdown of funds
• Schools may report up to 7 calendar days in advance of
actual disbursement date
• Direct Loan
• School with history of “early” disbursements will receive
initial Direct Loan current funding level in G5 on/about
3/25/13
• All other schools will have current funding level in June
2013
• Update to current funding level in November 2013
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Pell Grant Lifetime Limits
Consolidated Appropriations Act, 2012
• Limits duration of individual student’s Pell Grant
eligibility to 12 semesters or equivalent
• ED defines as 600% of Pell Scheduled Award
• Includes BEOG disbursements back to 1973-74
• Effective for ALL students effective with 2012-13
 Law prohibits funding a student in excess of
600%
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NSLDS/COD & Pell LEU
NSLDS is being updated with COD Pell LEU data daily
• Warning Icons
• Lifetime Limit Flag
• Post-screening reason codes
BUT
COD IS THE SYSTEM OF RECORD
FOR PELL LEU DATA!!!!
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Pell LEU within NSLDS
Warning Icons New for 2013-14
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NSLDS is sending the Pell LEU% to CPS for
inclusion on the ISIR
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NSLDS Professional Access website to display Pell
Grant Warning Icons – “Close to Pell Grant LEU
Limit” and “Meets or Exceeds Pell Grant LEU Limit”
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NSLDS Pell Lifetime Limit Flag
New for 2013-14
NSLDS will provide reason codes to reflect the new Pell
LEU limits in pre and post screening
• Only students who are Pell Grant eligible will be considered for
post-screening with the following reason codes:
Code
Warning
Threshold
E
Meets or Exceeds Pell Grant LEU Limit
Greater than or equal to 600.000%
C
Close to Pell Grant LEU Limit
Between 500.001% and 599.999%
H
High Percentage Warning
Between 400.000% and 500.000%*
N
No Problem
Less than or equal to 399.999%
*previously between 450.000% and 500.000%
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NSLDS Post-screening
Reason Code
For Pell LEU, system generated ISIR in message
class IGSG13OP
• 20 – Pell eligible and met or exceeded limit
• 21 – No longer meeting or exceeding limit
• 22 – Pell eligible and close to limit
• 23 – No longer close to limit
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COD Edits
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HARD REJECT in COD beginning in summer 2013
• Will prevent Pell disbursements to students with LEU
greater than 600%
• Will apply to 2012-13 and forward
Modified COD warning edits
• 177 – Pell LEU equal/greater than 450% but
equal/less than 600%
• 178 – Pell LEU exceeds 600%
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Pell Grant LEU Report
•
2013-14 LEU report to be delivered via SAIG
– Message class is PGLEYYOP (YY is award year)
– File name example PGLE14OP for 13/14
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2012-13 LEU report posted to School NewsBox on
COD site through 10/05/13
Cohort Default Rates

FY 2011 2-year draft rates send 3/18/13 via SAIG

Challenge period began 3/26/13
FY 2010 3-year draft rates sent 3/25/13 via SAIG
 Challenge period began 4/02/13
Challenges must be submitted within 45 days, via
eCDR Appeals application,
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
Incorrect data
 Participation rate index

FY 2010 official 3-year rate (to be published 09/13)
equal/greater 30% requires Default Prevention Task
Force and plan
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Cohort Default Rates
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For purposes of 30 day delay and single
disbursement of one-term only loans, you can use a
mix of 2 year and 3 year rates to get three years
below 15%
FY 2011 2-year rate will be last 2-year rate calculated
As of 2014, we will have three 3-year rates
calculated
Grace Period Interest Subsidy
Consolidated Appropriations Act, 2012
• Temporarily eliminates interest subsidy on Direct
Subsidized Loans during 6 month grace period
• Effective for new Subsidized Loans first disbursed
on/after July 1, 2012 and before July 1, 2014
• COD will monitor for compliance
• Will only impact students whom you report as out
of school or less than half-time
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Resolving Inadvertent Overborrowing
Inadvertent student borrowing in excess of annual
or aggregate loan limits
ISIR reflects flags and comment codes
• Student regains eligibility by
Repaying excess amount in full
Making satisfactory payment arrangements
• Involves reaffirmation
DCL GEN-13-02
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Direct Loan & Student Attendance
Student must begin attendance to be Direct Loan
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eligible
Failure to begin attendance in any class
School must return any DL funds applied to student
account
Immediately notify loan servicer of non-attendance
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Failure to begin attendance on a less than half-time
basis
No return of funds required by school or student
No subsequent disbursements until student resumes at
least half-time status
 DCL GEN-13-02
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StudentLoans.gov For 2013-14
All FSA loan counseling tools together on this site
• Entrance Counseling
Subsidized, Unsubsidized, and
Graduate/Professional PLUS
• Exit Counseling
NSLDS will continue to provide detailed exit
counseling reports
• Financial Awareness Counseling
• New Repayment Estimator on “My Preferences”
screen
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StudentLoans.gov for 2013-2014
New features for signed-in students
• New landing page with guidance to help the student
select the right type of counseling
• Select schools to notify from a list of associated
schools
• Add new schools to notify
• Select preferred repayment plan in Exit Counseling
• Send notifications of previously completed counseling
sessions
 Entrance Counseling
 Financial Awareness Counseling
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Counseling Reports
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Posted to your School NewsBox on COD site
New counseling type indicators
“S” for Subsidized & Unsubsidized Entrance
Counseling
“P: for Subsidized, Unsubsidized, and PLUS
Entrance Counseling
“L” for Financial Awareness Counseling
“X” for Exit Counseling
StudentLoans.gov for 2013-2014
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StudentLoans.gov for 2013-2014
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Subsidized Loan Limitation
Public Law 112-141
• Sets new time limits on Direct Subsidized Loan eligibility
• Applies to “new borrowers” on/after 7/01/13
• “New borrower” is a borrower with no balance on FFEL
or Direct Loan on 7/01/13
• Subsidized loan eligibility ends when student has received
subsidized loans for 150% of the published length of
educational program
• Under certain conditions, borrower who loses eligiblity for
additional subsidized loans may lose interest subsidy on
subsidized loans received from 7/01/13
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Subsidized Loan Limitation
Transfers
 Student’s maximum time to receive subsidized
loans is established based on the length of the
student’s program
 Remaining subsidized eligibility is calculated by
subtracting from maximum eligibility the time the
student has already received subsidized loans
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Subsidized Loan Limitation
Example
• Student receives three years of subsidized loans
while enrolled in a two year AA program
• Student transfers to four year program BA program
• Total eligibility for four year program is 6 years
• Student has three years of remaining subsidized
eligibility in the four year program
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Subsidized Loan Limitation
Example
• Student receives three years of subsidized loans
while enrolled in a four year BA program
• Student transfers to a two year AA program
• Total eligibility for a two year AA program is three
years
• Student has no remaining subsidized eligibility for the
two year AA program
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Subsidized Loan Limitation Examples
Program Length
4-Year Bachelor’s
Degree
2-Year Associates
Degree
1-Year Certificate
Program
10 Week Certificate
Program
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Limitation on
Subsidized Loan
Eligibility
6 Years of subsidized
loan eligibility
3 Years of subsidized
loan eligibility
1 ½ Years of subsidized
loan eligibility
15 Weeks of subsidized
loan eligibility
Ability To Benefit (ATB)
Consolidated Appropriations Act, 2012
• Eliminated Title IV aid eligibility for students without a
high school diploma or equivalent (34 CFR 600.2)
• Effective for 2012-13 award year
 DCL GEN-12-01 and GEN-12-09
Exception explained in DCL
• Students who were enrolled in a Title IV eligible program
anytime prior to July 1, 2012, as ATB student, may
continue to qualify under one of the ATB alternatives
 Approved ATB test
 Completion of six credit or 225 clock hours
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COD & Ability To Benefit
Ability To Benefit Code Tag is required field on COD
records for 2013-14 and forward
• Valid values are
 01 – Testing Completed
 02 – College Credit
 04 – Home Schooled
 06 – High School Diploma
 07 – GED
DO NOT SUBMIT VALUES OF 03 and 05
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2013-14 CPS/FAFSA Changes
•
Income Threshold for Automatic Zero EFC
increased from $23,000 to $24,000
• The PIN signature option will display more
prominently
– “Sign Electronically With My PIN” will be the
default signature option for most applicants
– Students/parents can choose another option for
signing, and when selected, the system will
display options to use PIN, print a signature
page, or submit without signatures, along with
definitions for each
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Enhanced IRS DRT Questions
• The format of the
IRS Data
Retrieval Tool
filtering question
will be enhanced
• Question labels
will be improved
for clarity
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IRS Tidbits
•
2013-14 Tax Return Transcript Matrix published
IFAP E.A. 3/15/13
•
IRS Form 8863 – Education Credit Issue
IFAP E.A. 3/18/13
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Unusual Enrollment Patterns
NOT VERIFICATION – Separate Process
• Students identified based on history of receipt of Pell
Grant
• New ‘C’ Code added to ISIR
• New Unusual Enrollment History Flag (UEH FLAG)
added to ISIR
• Flag value will determine needed action
• Resolution guidance provided in DCL GEN-13-09
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2013-2014 Unusual Enrollment History
Flag
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:
Five flag values
(N, Blank and 1- 3)
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2013-2014 Unusual Enrollment History
Flag
•
Values for the NSLDS Unusual Enrollment
History Flag are described in the following table
NSLDS Unusual
Enrollment
History Flag
SAR C
Flag?
SAR
Comment
1
For Federal Student Aid Use Only
No
N/A
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
Record not sent for match
No
N/A
Blank
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Description
2013-2014 Unusual Enrollment History
ISIR/SAR Comment Codes
•
ISIR/SAR comments and the “C” Flag will be
generated for flags 2 and 3
Comment
No.
359
SAR Comment
Your school may request additional information to
determine your eligibility for federal student aid.
Note: This comment will generate a SAR C flag as already
documented.
360
Based upon data provided by the National Student Loan
Data System (NSLDS), your school will request additional
information to determine your eligibility for federal
student aid and before disbursement of funds can be
made.”
Note: This comment will generate a SAR C flag as already
documented.
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School Action to include
Action depends on whether the school is a new school for the
applicant for 2013-2014. If not a new school, school not
required to take any action but may look into the applicant’s
enrollment history. If new school for applicant, school must
take certain actions that will be developed by FSA and OPE
policy.
School must take certain enhanced actions that will be
developed by FSA and OPE policy.
2013-14 Unusual Enrollment History
Post-Screening Reason Code
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CPS will system-generate a new transaction with
Reason Code 24 for records that have a change in
the NSLDS Unusual Enrollment History Flag value
after the initial pre-screening
• The
new transaction will include the new value for
the NSLDS Unusual Enrollment History Flag and a
SAR Comment or C Flag as appropriate
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Unusual Enrollment Patterns
Resolving Unusual Enrollment History Flags
• An institution must take the following steps to resolve
an ISIR reported UEH Flag
 UEH Flag value is ‘2’: The institution must review the
student’s records to determine if, during the three
award year review period the student received a Pell
Grant at the institution that is performing the review
If yes, no additional action is required
If no, the institution must follow the guidance that is
provided for a UEH Flag of ‘3’
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Unusual Enrollment Patterns
Resolving Unusual Enrollment History Flags
• An institution must take the following steps to resolve an
ISIR reported UEH Flag
 UEH Flag value is ‘3’: The institution must review the
student’s records to determine if academic credit was
earned at each of the institutions during the award(s)
when the student received Pell Grant funds for
enrollment at that institution. Academic credit is
considered to have been earned if the academic records
show that the student completed any credit hours or
clock hours during the award year.
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Resolving Unusual Enrollment History
Flags
Academic Credit Earned
If academic credit was earned at each of the
previously attended institutions during the relevant
award years, no further action required
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Resolving Unusual Enrollment History
Flags
Academic Credit Not Earned
If academic credit was not earned at a previously
attended institution and, if applicable, at the institution
performing the review, obtain documentation from the
student explaining why the student failed to earn
academic credit.
Determine whether the documentation supports
(1) the reasons given by the student for the student’s
failure to earn academic credit; and
(2) that the student did not enroll only to receive credit
balance funds.
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Unusual Enrollment Patterns
Approval of Continued Eligibility
• If FAA approves student’s continued eligibility, the FAA may
choose to –
 Require student to establish an academic plan
 Counsel student about the Pell Grant duration of eligibility
provisions [Lifetime Eligibility Used (LEU)] and upcoming
time limitations on the receipt of subsidized loans
Denial of Continued Eligibility
• If FAA denies student’s continued eligibility, the student
must be provided with –
 An opportunity to question and appeal the decision and
 Information as to subsequently regain eligibility
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NSLDS Enrollment Reporting
•
New record layouts must be used effective 3/31/13
• NSLDS no longer accepting SSCR for Windows
software data
• Removed from FSA Download site 4/01/13
• Students being added• Pell Grant only recipients beginning with 12/13
• Perkins Loan recipients at any school if you report
them as in-school or in-school deferment
• Reporting required only once for student who has
Pell and loans or Perkins and other aid
DCL GEN-12-06
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NSLDS Enrollment Reporting
New Data To Be Reported
• Credential level code (GE) required when reporting
Graduated – “G”
• Student address
• Term dates (optional) of most recent enrollment
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NSLDS Enrollment Reporting
Remember to:
• Report on all students on roster. Recertify each time
even if status didn’t change
• Report graduation status when student completes
academic program
Example- Student graduates from Program A and
begins Program B
• If new program begins after graduation include two
transactions for student on same roster
• If new program begins before graduation, submit
roster with graduation first. Once processed,
submit new enrollment.
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NSLDS Enrollment Reporting
Remember To:
• Add transfer-in students to your roster
• Report anticipated graduation date for all students on
roster who are enrolled
• Update status on students previously reported as less
than half-time
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NSLDS - What Else Is New?
•
•
Students may report
• Own transfer and that will be added to current
school’s enrollment roster
• Current home address
Schools may manage multiple campuses with
enrollment reporting
• Identify campus with six-digit OPEID
• Receive either individual eight-digit OPEID rosters or
combined roster
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Experimental Sites 2013-14
New deadline is 4/30/13 for application to participate for
2013-14 award year
DCL GEN-13-03 and GEN-13-08
Experiment 1 – Federal Pell Grant Program – Eligibility
of students with bachelor's degrees who enroll in
vocational or career programs
• Experiment 2 – Federal Pell Grant Program – Eligibility of
students who enroll in certain short-term training
programs
• Experiment 3 – Direct Loan Program – Single
disbursement of a one-term loan for study abroad
students
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Experimental Sites 2013-14
Experiment 4 – Direct Loan Program – Early
disbursement for study abroad students and for students
enrolled in foreign institutions
• Experiment 5 – Direct Loan Program – Unequal
disbursements
• Experiment 6 – Direct Loan Program – Limiting
unsubsidized loan amounts
• Experiment 7 – Direct Loan Program – PLUS Loans for
parents of students with intellectual disabilities
• Experiment 8 – Student Eligibility – Eligibility of students
with intellectual disabilities who are also enrolled in high
school
•
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FWS Community Service Waiver
•
Deadline for waiver request is 4/19/13, via FISAP site
• School may request waiver of
7% community service requirement and/or
Reading tutor/family literacy requirement
• Must demonstrate that causes hardship for STUDENTS
• Penalty for failing to meet community service
requirements
Liability in amount of difference between what should
have spent and what actually spent on community
service and
Possible limitation, suspension, termination
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Financial Aid Shopping Sheet
•
•
•
Developed in cooperation with Consumer Financial
Protection Bureau
Notify FSA of intent to use at ShoppingSheet@ed.gov
Resources
IFAP E.A. September 28, 2012
DCL GEN-12-17, 08/12
DCL GEN-12-12, 07/12
DCL GEN-12-10, 07/12
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Financial Aid Shopping Sheet
•
If school signed Principles of Excellence, E.O. 13607, with
Defense/VA –
• Shopping Sheet must be provided to prospective
undergrad and graduate students who are eligible for
Federal military and veterans educational benefits if
those students have applied for Title IV aid using the
FAFSA
•
•
Prospective means prior to enrollment
Other schools may opt to use Shopping Sheet
• Expected that is provided to all undergraduate and
graduate students who apply for Title IV aid using the
FAFSA
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Financial Aid Shopping Sheet
Cost of Attendance
Elements
Grants and Scholarships
Net price After Grants
Work Options
Institutional
Metrics
Graduation rate
under “Student
Right-to-Know”
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Student Specific
Information
Most recent cohort
default rate
Median debt for
completers
Loan Options
Other Options Including
Family Contribution
Loan repayment
information
Contact information
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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
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Regulatory Activity
•
•
•
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Loan II Neg/Reg package
−Stand alone Direct Loan regulations
−Elimination of unnecessary FFEL regulations
−Reasonable and affordable payments for defaulted
loan rehabilitation
150% Direct Loan Subsidized Limitation
Fraud Prevention
−New Neg/Reg process spring 2013
Program Integrity Regulations Q&A Web Site
http://www2.ed.gov/policy/highered/reg/hearule
making/2009/integrity-qa.html
Includes• State authorization
• Repeating coursework
• Credit hour definition
• Ability-to-benefit
• Incentive compensation
• Misrepresentation
• R2T4
• Satisfactory academic progress
• Gainful employment
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Items To Note On IFAP
•
Perkins Loan default rates for 2011-12
4/12/13 IFAP Electronic Announcement
• New NSLDS Message Class Sent Via SAIG
4/12/13 IFAP Electronic Announcement
• Updates to FOTW as of 4/21/13
4/11/13 IFAP Electronic Announcement
• Availability of EDExpress version 2.0 for 13/14
4/10/13 IFAP Electronic Announcement
• 2012-13 Verification Status Code “W”
4/22/13 will reduce disbursement
4/09/13 IFAP Electronic Announcement
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QUESTIONS?
Gregory Martin
Training Officer
U.S. Department of Education
215-656-6452
Gregory.martin@ed.gov
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