Federal Update

Kay Jacks
Jeff Baker
Dan Madzelan
 Agenda
EAC Federal Update

• Welcome and Introduction

• Getting Aid Right at Point of Application
• Getting Aid Right – Origination,
Disbursement and Reporting
• Getting Aid Right - Legal and Policy Issues
• Things to Remember

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 Agenda
EAC Federal Update

• Welcome and Introduction

• Getting Aid Right at Point of Application
• Getting Aid Right – Origination,
Disbursement and Reporting
• Getting Aid Right - Legal and Policy Issues
• Things to Remember

3
 Application Processing Statistics:
Application Volume
2002-03 and 2003-04
• 10,692,665
2002-03 FAFSAs
processed as of 12,000,000

November 17, 2002 11,000,000

10,000,000

(week 46) 9,000,000

• 11,533,158
8,000,000

7,000,000

2003-04 FAFSAs 6,000,000

processed as of
5,000,000
2002-03 2003-04

November 16, 2003

(week 46) That’s an 7.8% increase!
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 Application Processing Statistics:
FAFSA on the Web Volume
2002-03 and 2003-04
ƒ 4,781,810
2002-03 FAFSA on
the Web Apps
processed as of
October 27, 2002
(week 43)
ƒ 6,773,099
2003-04 FAFSA on
the Web Apps
processed as of
October 26, 2003
(week 43) That’s a 41% increase!
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 CPS Changes

Multi-Year Applicant Database

CPS re-engineered to:
• Perform cross-year edits to detect possible
inconsistencies across application years
• Produce warning comments if edit is hit
– Number of Family Members or Number in College
– Parents’ Total Income
– Parents’ Taxes Paid

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 The 2004-05 Application Process:
ISIR Datamart

“Pushed” ISIRs
ƒ Certain ISIRs automatically “pushed” regardless of
option selected by institution
– EFC changes
– SAR C Code changes
– System-generated transactions –
• NSLDS post-screening
• INS automated secondary confirmation
• Reprocessing

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 The 2004-05 Application Process:
ISIR Datamart

“Must See” ISIRs

ƒ Schools must look at all “pushed” ISIRs

ƒ Schools must request ISIRs for all enrolled

students

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www.studentaid.ed.gov

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www.studentaid.ed.gov

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www.studentaid.ed.gov

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www.studentaid.ed.gov

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www.studentaid.ed.gov

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www.studentaid.ed.gov

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Dear Colleague Letter
GEN-03-11

Inclusion of School
Information on FSA’s
Student Aid on the Web

Publication Date
September 15, 2003

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 Agenda
EAC Federal Update

• Welcome and Introduction

• Getting Aid Right at Point of Application
• Getting Aid Right – Origination,
Disbursement and Reporting
• Getting Aid Right - Legal and Policy Issues
• Things to Remember

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 Prior State
- Packaged Solution
- EDExpress
Institution
INSTITUTION Solution
SOLUTION - Homegrown System

Student
Eligibility/ Direct Campus
Pell
Demo Loan Based

FFEL

FFEL GAs/
RFMS

DLOS
Lenders
CPS

CBS
NSLDS

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 COD – Target State - Packaged Solution
INSTITUTION SOLUTION - EDExpress
- Homegrown System
Common Record

FFEL
Student Origination
Eligibility/ and
Demo Disbursement

PORTAL / FFEL GAs/

SAIG Lenders

Origination and
Disbursement
Student Applicant Data
(Pell, Campus-Based,
Direct Loans) Financial
Manage-
ment
School Eligibility Data Loan Servicing

NSLDS Version 2.0

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 COD – Target State - Packaged Solution
INSTITUTION SOLUTION - EDExpress
- Homegrown System
Common Record

FFEL
Student Origination
Eligibility/ and
Demo Disbursement

PORTAL / FFEL GAs/

SAIG Lenders

Origination and
Disbursement
Student Applicant Data
(Pell, Campus-Based,
Direct Loans) Financial
Manage-
ment
School Eligibility Data Loan Servicing

NSLDS Version 2.0

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 COD – Target State - Packaged Solution
INSTITUTION SOLUTION - EDExpress
- Homegrown System
Common Record

FFEL
Student Origination
Eligibility/ and
Demo Disbursement

PORTAL / FFEL GAs/

SAIG Lenders

Origination and
Disbursement
Student Applicant Data
(Pell, Campus-Based,
Direct Loans) Financial
Manage-
ment
School Eligibility Data Loan Servicing

NSLDS Version 2.0

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 COD – Target State - Packaged Solution
INSTITUTION SOLUTION - EDExpress
- Homegrown System
Common Record

FFEL
Student Origination
Eligibility/ and
Demo Disbursement

PORTAL / FFEL GAs/

SAIG Lenders

Origination and
Disbursement
Student Applicant Data
(Pell, Campus-Based,
Direct Loans) Financial
Manage-
ment
School Eligibility Data Loan Servicing

NSLDS Version 2.0

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 COD Successes
• Since launch in April 2002:
– 1.3 million batches with 47.4 million records
– $26.5 billion grants and $22.5 billion originated
– $15.6 billion in grants, $15.5 billion in loans disbursed
– 532,000 eMPNs (44%)
• Decreased average processing time from
days to minutes

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 COD Successes
Program Integrity
• CPS/ DL match
• 99.9% of funds drawn substantiated by schools
Integrated
• Common business processes for Pell and Direct Loan
• Single customer service call center
• Integrated data views
– School
– Student
– Program
• Middleware enabled interfaces 31
 COD Successes
Simplified
• Flexibility and choices in record processing
• Industry standards for XML data exchange
• Reduced
– Records from 15 to 1
– Data elements reported from 643 to 135
– Edits from 274 to 120
• Implemented Common Record compatible
EDExpress software
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 Common Record Estimated
Implementation Schedule

Common Record – COD v

02-03
1.0g
Common Record –COD 2.0c
03-04
(changed all tag names)
Common Record –COD 2.0d
04-05
(+2 new tags – 6 old tags)
Common Record – ISIR Common Record – COD 3.0
05-06 1.0a Align with standard
Align with standard (XML Required)
Common Record – ISIR
06-07 1.0a Common Record – COD 3.0a
(XML Required)
Common Record – ISIR Common Record – COD 3.0b
07-08
1.0a
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 POP Process
What is POP?

• Pell Overpayment Project

• More than one schools reporting Pell

disbursement for a student in a given
award year

• Total Pell paid exceeds student’s annual

eligibility
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 POP Process
Why New POP Process?
• School Feedback
• Complaints indicated improvements
were needed

• Non responsive schools won

• Restricted flow of funds

• Processes needed to provide:

– Early warning on unofficial withdrawals
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 POP Process

OLD

X
Pell did not allow overawards Overawards allowed to exist
for any period of time for 30 days

Required submission of a If after 30 days the situation

X
negative disbursement from has not been remedied, all
ineligible school first and then schools involved will receive a
a positive disbursement from negative disbursement. Eligible
the eligible school school can submit a positive
disbursement at any time

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 POP Process
Students in POP*

2001-2002 2002-2003
Blocked At One
88,890 22,572
Time
Resolved 48,020 22,083
Still in Conflict 25,645 489

* As of October 2003
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 Campus-Based Calendar
2004 – 2005 Award Year

FISAP & Combined Certification Due October 1, 2003

FISAP Edit Corrections Due December 15, 2003

Tentative Awards Posted February 1, 2004

Final Awards Issued April 1, 2004

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 Agenda
EAC Federal Update

• Welcome and Introduction

• Getting Aid Right at Point of Application
• Getting Aid Right – Origination,
Disbursement and Reporting
• Getting Aid Right - Legal and Policy Issues
• Things to Remember

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 National
Cohort Default Rate

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 Title IV Program Budgets

FY 2002 FY 2003 FY 2004*

Program (AY 02-03) (AY 03-04) (AY 04-05)
Pell Grant $ 11,314,000,000 $ 11,364,646,000 $ 12,006,738,000
(Max Award) $4,000 $4,050 $4,050
FSEOG $ 725,000,000 $ 760,028,000 $ 770,455,000
FWS $ 1,011,000,000 $ 1,004,428,000 $ 998,502,000
Perkins $ 100,000,000 $ 99,350,000 $ 98,764,000
(Cancellations) 67,500,000 67,061,000 66,665,000
LEAP $ 67,000,000 $ 66,565,000 $ 66,172,000

* Conference Report (H. Rept. 108-401), 11/25/2003

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 IRS Data Match - Status

• President’s Management Agenda

• ED’s Blueprint for Management Excellence
• Current HEA Authority Inadequate
• ED/Treasury/OMB Legislative Proposal to Amend
Internal Revenue Code--August 2002
• On-going Discussion with Congressional
Committees
• Early Internal Discussions on Implementation

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 Upcoming Policy Letters

• Use of Electronics
• Return of Title IV Aid
• Disaster Relief

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 Agenda
EAC Federal Update

• Welcome and Introduction

• Getting Aid Right at Point of Application
• Getting Aid Right – Origination,
Disbursement and Reporting
• Getting Aid Right - Legal and Policy Issues
• Things to Remember

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 Things to Remember
Recent Letters
ƒ GEN-03-12 (Oct) NSLDS Aggregate Calculation
ƒ GEN-03-11 (Sep) Student Aid on the Web
ƒ GEN-03-10 (Aug) Foreign Schools
ƒ GEN-03-09 (Jul) XML Transition
ƒ GEN-03-08 (Jul) Long-Term Debt
ƒ GEN-03-07 (May) Dependency Overrides

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IRS Implementation

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 Things to Remember
ƒ NSLDS Transfer Monitoring
ƒ NSLDS Enrollment Reporting
ƒ Pell Reporting
ƒ Return of Title IV Aid Transactions
ƒ Release of Credit Balances
ƒ Use of eNotes
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