Transcript 2015 PACE/USO TDN Conference

Federal Update
2015 PACE/USO TDN Conference
Angela Smith, Training Officer
U.S. Department of Education
2
2015-16 Verification
•
Same verification items and Verification Tracking
Groups to be verified as 2014-15
• Applicant will remain in original 2015–16
Verification Tracking Group for the entire award
year record
3
2015-16 V4/V5 Tracking Results
•
The V4/V5 tracking process in FAA Access that
began in the 2014-15 processing year WILL
CONTINUE for 2015-16.
•
Make sure you’re selecting the proper award year for which
you are providing results
https://faaaccess.ed.gov
4
2015-16 V4/V5 Tracking Results
Whom to report:
Applicant 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:
Within 60 days following the institution's first
request to the student to submit the required V4 or V5 identity and high
school completion documentation.
Changes to previously submitted Identity Verification Results must
be updated within 30 days
5
October 17, 2014 Electronic
Announcement
•
Alternative documentation allowed when tax filer
RECENTLY requested but unable to obtain an IRS Tax
Return Transcript using the IRS paper or on-line request
process
•
•
No alternative documents for telephone requests
Exception not permitted for transcripts unable to be obtained simply
because the IRS has not had time to process the data due to a
recent filing
For 2014-2015 award year
6
2014-15 – Transcripts Unavailable
•
In instances where tax filer recently requested a
IRS Tax Return Transcript and was unsuccessful:
•
•
Signed copy of relevant 2013 IRS tax return
AND
Communication from IRS stating request unsuccessful
– Letter from IRS (SIGNED AND DATED BY TAX FILER); or
– Screen shot print (SIGNED AND DATED BY TAX FILER)
•
AND
Completed and signed IRS Form 4506 T-EZ or 4506-T
listing institution as third party
•
7
Send to IRS only if doubt paper tax return accuracy
8
Introducing the FSA ID
The FSA ID will modernize access for students, parents and
borrowers to FSA systems
•
FSA is adopting the best practice of using a
username and password instead of personal
information
• The FSA ID
•
•
•
•
•
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
April 26, 2015 May 10, 2015
9
New FSA ID login
Will be
updated
Old PIN login
Introducing the FSA ID
Users still click the Sign in button. This directs them to the FSAID login
page. Once they enter their FSA ID, they are directed back to the
application landing page
Will be
updated
10
Introducing the FSA ID
•
What happens for new user?
•
•
•
What happens if I have a PIN already?
•
•
•
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?
•
11
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
•
Can users still access FAFSA by providing their Last name, SSN and
DOB?
•
•
•
Will customer support change?
•
•
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?
•
12
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
COD Updates
13
COD Updates:
Effective March 29, 2015
•
COD will allow COD Web users to create and
submit a Subsidized Usage inquiry to FSA for
Subsidized Usage cases that require FSA
intervention and can’t be resolved by a school
•
14
Done via new Create Subsidized Usage Inquiry page
COD Updates:
Effective March 29, 2015
•
COD will introduce a Subsidized Usage Calculator on
COD Web
•
•
•
15
Users will be able to enter loan data and estimate the students’
subsidized usage based upon the information entered and the loans
existing on the COD System
Will allow the user to model potential impacts to the student’s
subsidized usage and eligibility
Actions taken via the Subsidized Usage Calculator will NOT result
in any changes to the student’s loans on the COD System
COD Updates:
Effective March 29, 2015
Ability-To-Benefit tag re-named “Student Eligibility Code”
•
•
•
•
•
•
01-Ability To Benefit Testing Completed
02-College Credits
04-Home Schooled
06-High School Diploma
07-GED Certificate of State Equivalent Test
New codes for 2015-16
•
08-State Authorized High School Equivalent Certificate
• 09-Academic Transcript of a 2-Yr Program acceptable for full credit transfer to a
Bachelor’s Program
• 10-Program leads to at least an Associates Degree, Excelled in High School, and
met the Admissions requirements
16
COD Updates:
Effective March 29, 2015
Direct PLUS Loan program
• New applicants with an adverse credit decision on or after
March 29, 2015 will be required to complete a new PLUS
Counseling segment in StudentLoans.gov
•
•
17
The new mandatory PLUS counseling for certain applicants with
adverse credit history is a separate module
Does NOT fulfill the entrance counseling requirement for firsttime graduate/professional student Direct PLUS Loan applicants
COD Updates:
Effective March 29, 2015
Direct PLUS Loan program
•
•
•
Updated adverse credit history criteria for ALL credit
checks performed on or after March 29, 2015
COD system will update the number of days a credit
check is valid from 90 days to 180 days
New disbursement level edit - COD Reject Edit 217
•
18
“Actual disbursement submitted with no PLUS Counseling on file”
COD Updates:
Effective March 29, 2015
Direct PLUS Loan program
•
New “Credit Requirements Met” tag in common record, COD Web
and PLUS application responses and line item on certain COD
screens
•
Confirms all credit related requirements have been met
– An approved endorser or approved appeal
– PLUS Counseling has been completed
•
•
Can search for completed PLUS Counseling sessions on existing
COD Counseling Search page
New fields added to Credit Check Information page:
•
19
Appeal Status; PLUS Counseling Completed; PLUS Counseling
Completion Date
COD Updates:
Effective March 29, 2015
Direct PLUS Loan program
•
New weekly credit status report in COD Web in CSV
format
•
•
20
Indicate if borrower’s credit requirements met and if PLUS
Counseling has been completed
Contain borrowers that have a valid credit check and a PLUS
Request or Direct PLUS Loan on file who have not met the credit
requirements, or have met the credit requirements within the past
30 days
COD Updates:
Effective March 29, 2015
The COD System will accept 2015-2016 actual
disbursement records
•
•
For Grants: Schools will receive a CFL based on
accepted and posted actual disbursement records
For Direct Loans:
•
Schools using Advanced funding method that historically
report actual disbursements prior to July 1st will receive an
initial CFL for the 2015-2016 Award Year the week of April
6, 2015.
• All other Advanced funded schools will receive an initial
CFL for the 2015-2016 Award year in June 2015.
21
Regulatory Activity
22
Institutional Security & Crime
Reporting
•
The “Violence Against Women Act” (VAWA) amended the “Clery Act”
•
•
•
Final Rule published October 20, 2014
Effective July 1, 2015
GEN-14-13 & EA dated 8/1/14
•
•
Statute required institutions to include this new information in annual
security reports beginning with the October 1, 2014 report
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
•
Help Desk
•
800-435-5985
• [email protected]
23
Direct PLUS Loans
•
Final Rule published 10/23/14
•
•
•
Key elements
•
•
•
•
•
24
Federal Register Notice published 1/14/15
New PLUS loan regulations will be early implemented early as of March 29,
2015
New definitions for “charged off” and “in collection”
Amends what is considered adverse credit history
Requires PLUS loan counseling for approved borrowers with extenuating
circumstances or an endorser
Extends validity of credit check from 90 to 180 days
ED will collect and publish performance of PLUS loans, including default
rate information
“Charged Off” and “In Collection”
•
Charged off – a debt that a creditor has written off as a
loss, but that is still subject to collection action
•
In Collection – a debt that has been placed with a
collection agency by a creditor or that is subject to more
intensive efforts by a creditor to recover amounts owed
from a borrower who has not responded satisfactorily to
the demands routinely made as part of the creditor’s
billing procedures
25
Adverse Credit History
•
One or more debts with total outstanding balance greater
than $2,085 that are •
•
•
26
90 or more days delinquent as of date of credit report; OR
have been placed in collection or charged off during two years
preceding date of credit report
OR
Subject of default, bankruptcy discharge, foreclosure,
repossession, tax lien, wage garnishment or write-off of a
debt under title IV during the five years preceding date of
credit report
Performance of PLUS Loans
•
Will collect and publish (where appropriate)
information about performance of parent
and student PLUS loans, including
default rate information based on credit history
characteristics of PLUS loan applicants and
• individual institutional default rates
•
27
28
Third Party Servicers
“Third-Party Servicer Institutional Requirements
and Responsibilities”
•
Definition of a Third Party Servicer, 34 C.F.R. §668.2:
any individual or entity that contracts with or performs
work on behalf of an institution to administer, through
manual or automated processing, any aspect of an
institution’s responsibilities under the Title IV, HEA
programs.
DCL GEN-15-01
EA dated 2/12/2015
29
Third Party Servicers
All institutions must report the names of any/all third party
servicers to ED
• via the E-app process,
http://www.eligcert.ed.gov/ows-doc/eapp.htm
•
via the Third Party Servicer Data Form
•
Must be reported within 10 calendar days of the institution
entering into a contract (or any other written or oral agreement)
with the third party.
DCL GEN-15-01
EA dated 2/12/2015
30
Third Party Servicers
•
Check your contracts to ensure that all requirements are included!
•
•
In the contract, the third-party servicer must agree to comply with all
statutory and regulatory provisions applicable to the Title IV functions
provided by the third party
Your third party servicer
•
•
•
may be subject to FERPA requirements
is subject to the same information security requirements established by the
Federal Trade Commission (FTC) for financial institutions as your
institution.
must submit annual compliance audits to ED
Questions?
Contact the Third-Party Servicer Oversight Group
[email protected]
(816) 268-0543
31
Perkins
•
Barring any Congressional action, the
authority to make new Perkins loans will
end September 30, 2015
• For 2015-16, Perkins loans first disbursed
prior to 10/1/15 will be valid loans and all
subsequent disbursements for those loans
can be made during the award year
DCL GEN-15-03
32
Unusual Enrollment History (UEH)
•
For the 2015-16 FAFSA processing year, selection of
applicants for UEH Flag has expanded to consider–
•
•
An applicant’s prior receipt of, in addition to a Federal Pell Grant, a
Federal Direct Loan (not including Direct Consolidation Loans or
parent PLUS Loans)
Evaluation of the prior four award years, instead of three:
•
•
UEH Flag includes the 2011-2012, 2012-2013, 2013-2014, and 20142015 award years
A school may institutionally-select a student for UEH (not
selected by ED) if suspect enrollment problems
•
School-selected students treated as if have UEH 3 flag
DCL GEN-15-05
33
Loan Counseling
•
Reminders
•
Entrance counseling is required for first time borrowers
•
Institutions have the flexibility to augment the requirements for entrance
counseling
• Institutions may not unreasonably impede a student’s ability to borrow
•
The borrower makes the decision of whether to borrow and how
much to borrow (up to the statutory annual and aggregate limits)
and not the institution
•
•
Professional judgment may be used on a case-by-case basis to reduce
or refuse to originate a loan
Financial Awareness Counseling Tool available on
Studentloans.gov
DCL GEN-15-06
34
35
Ability to Benefit (ATB)
•
The Consolidated and Further Continuing Appropriations
Act, 2015 reinstated the ATB alternatives for Title IV
student eligibility for students enrolled in “career
pathway programs”
•
•
Applies to students who are enrolled or who first enroll in an eligible
program of study on or after July 1, 2014
OPE and OGC are currently reviewing the law and will
provide detailed guidance to schools in the near future stay tuned to IFAP!
DCL coming soon
36
Federal Pell Grant Program
Reconciliation
•
•
Pell Grant Reconciliation, defined: the process by which a school
reviews and compares Pell Grant data recorded on the Department
of Education’s (the Department’s) systems with the information in the
school’s internal records. This process should be performed on a
regular basis, and is recommended at least monthly.
Final Reconciliation of a Pell Grant Award Year
•
•
Data Submission Deadline: September 30, 2015, for the 2014-15 award
year
After this date, COD will not accept upward awards or disbursement
adjustments without prior approval for an extension to the established data
submission deadlines (downward adjustments will continue to be
accepted).
EA dated 1/23/2015
37
2013-14 Direct Loan Closeout
REMINDER!!
• The Direct Loan closeout deadline for the 20132014 Program Year is Friday, July 31, 2015.
• This is the last processing day of the program
year, so all school data must be received and
accepted by this date to be included in a school’s
final Ending. Cash Balance for the year
EA dated 2/2/2015
38
2015 FSA Training Conference!!
•
•
•
•
39
Tuesday, December 1 – Friday,
December 4, 2015
Mandalay Bay, Las Vegas, Nevada
fsaconferences.ed.gov (right-hand
side of IFAP website)
Conference and lodging registration
will open this summer – stay tuned
to IFAP!
The HEA turns 50!
Will it get reauthorized
for its birthday??
40
Active Contracts
Active Contracts list on ED’s OCFO’s
www2.ed.gov/about/offices/list/ocfo/contracts/active_contracts_list.xls
41
Your Feedback is Requested
To ensure quality training, we ask all participants
to complete an online evaluation for each session.
Using the link below, please complete an
evaluation of my presentation.
https://s.zoomerang.com/s/AngelaSmith-Reg5
Thank you!
Or, feel free to contact my supervisor:
JoAnn Borel
[email protected]
Questions about this presentation?
Feel free to contact me:
Angela Smith, Training Officer
[email protected]
312-730-1552