Scribd
Upload
65 views8 pages

Description: Tags: Fotint-Pt2

If school's cohort default rate is 25% or more, then a zero default penalty (no allocation) w if default rate is 50% or more for the three most recent award years, then: (c)loss of program participation (c)liquidation of portfolio Federal Perkins Loan Changes w Elimination of Expanded Lending Option w Extension of deferments and cancellations currently in statute to all borrowers with outstanding loans w Incentive repayment program w 5% discount of unpaid principal balance

Uploaded by

anon-119850
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
65 views8 pages

Description: Tags: Fotint-Pt2

If school's cohort default rate is 25% or more, then a zero default penalty (no allocation) w if default rate is 50% or more for the three most recent award years, then: (c)loss of program participation (c)liquidation of portfolio Federal Perkins Loan Changes w Elimination of Expanded Lending Option w Extension of deferments and cancellations currently in statute to all borrowers with outstanding loans w Incentive repayment program w 5% discount of unpaid principal balance

Uploaded by

anon-119850
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 8

Notes

Federal Perkins Loan


Changes
Beginning with FY 2000:
w If school’s cohort default rate is 25% or more, then
a zero default penalty (no allocation)
©default reduction plan not required
w If school’s cohort default rate is 50% or more for
the three most recent award years, then:
©loss of program participation
©liquidation of portfolio

12

Federal Perkins Loan


Changes (cont’d)
w Elimination of Expanded Lending Option
©Instead:
• Increase in annual loan limits at all participating
schools
» $4,000 for undergraduate students
» $6,000 for graduate students
• Increase in aggregate loan limits at all participating
schools
» $40,000 for graduate students
» $20,000 for undergraduates who have completed 2 years
toward a B.A. degree
» $8,000 for all other students
13

June 1999 Fiscal Officer Training • Participant’s Guide Introductory Session — 9


Notes

Federal Perkins Loan


Changes (cont’d)
w Extension of deferments and cancellations currently
in statute to all borrowers with outstanding loans
w Incentive repayment program
©Lower interest rate (4%) after 48 consecutive payments
©5% discount of unpaid principal balance if paid early
©Federal money may not be used to fund these incentives
w Title IV eligibility restored to borrowers with
satisfactory repayment arrangements. Borrowers
may receive this benefit only once.
14

FFEL and Direct Loan


Changes
w No multiple disbursement required if:
©School has default rate of less than 10% for 3 years and loan
period is not more than one semester, one trimester, one
quarter, or four months or
©Study abroad student and school has cohort default rate of less
than 5%
w No delayed disbursement required if:
©School has default rate of less than 10% for 3 years or
©Study abroad student and school has cohort default rate of less
than 5%
w Master promissory note required
15

10 — Introductory Session Fiscal Officer Training • Participant’s Guide June 1999


2. Recipient Financial Management System
Notes
(RFMS)
• Beginning July 1, 1999, schools will use the new Recipient
Financial Management System (RFMS) to report student
payment information to ED for the Federal Pell Grant
Program.

a. Records

Recipient Financial
Management System
(RFMS)
Four types of records that a school sends to RFMS:
w origination records
w disbursement records
w special disbursement records
w data request records

16

Origination Records
w Include demographic data about the school and
any branches
w Used to report an expected award amount and
expected disbursement dates for each student who
may receive a Federal Pell Grant
w Must be sent before or at the same time as the
disbursement record
w Can be sent as early as the spring before the award
year
17

June 1999 Fiscal Officer Training • Participant’s Guide Introductory Session — 11


Notes

Disbursement Records
w Used to report how much was or will be disbursed
and when the disbursement occurred or will occur
w Can be sent to RFMS up to 30 days (beginning
July 1) before and 30 days after the actual
disbursement
w Have a direct effect on a school’s Federal Pell
Grant authorization level
w Will not be accepted unless an accepted
origination record is on file
18

Special Disbursement
Records
w Required for schools on reimbursement payment
method
w Contain more data than a regular disbursement
record
w May also be used by schools to track their Federal
Pell Grant funding on a payment-period basis

19

12 — Introductory Session Fiscal Officer Training • Participant’s Guide June 1999


Notes

Data Request Records


w Used to track how the Federal Pell Grant Program
is administered
w Include Multiple Reporting Records (MRRs),
batch replacements, Electronic Statements of
Account (ESOAs), and Year-to-Date (YTD) data

20

Acknowledgements
The acknowledgement record from ED includes an action
code that specifies one of three statuses:
w Accepted: All data were accepted. No further action
required.
w Corrected: RFMS corrected one or more data fields.
Review record to ensure no corrections are needed.
w Rejected: Errors in one or more data fields or a
duplicate record result in a rejection. Correct and
resubmit records; resubmit duplicates only if data
changes. 21

June 1999 Fiscal Officer Training • Participant’s Guide Introductory Session — 13


b. Funding
Notes

Funding
w Initial funding amounts are estimated by ED and
authorizations are created and posted to RFMS.
w RFMS generates an Electronic Statement of
Account (ESOA) and sends it to the school.
w This initial authorization is the amount against
which school draws down funds.
w RFMS goal is to have funds available for
drawdown within 24 to 36 hours of receiving the
school’s data transmission.
22

• Accepted disbursement records drive the funding level in


GAPS, providing funds for schools to draw down.
• The RFMS goal is to have funds available for drawdown
within 24 to 36 hours of receiving the school’s data
transmission.

Just-in-Time Payment Pilot

w Pilot for 1999-2000 award year with a small


number of schools.
w Schools using just-in-time payment method have
funds directly deposited into their bank account
once RFMS accepts a student’s disbursement
record.
w To sign up to participate during the next pilot year,
2000-01, send an email to #[email protected].

23

14 — Introductory Session Fiscal Officer Training • Participant’s Guide June 1999


c. Requesting Data
Notes

Electronic Statements of
Account (ESOAs)
w Generated by RFMS at the time of the initial
authorization.
w Generated when a school sends in disbursement
records that result in an adjustment to the school’s
account.
w Can also be requested by the school.

24

Multiple Reporting Records


(MRRs)
w Sent automatically when a potential overpayment
or concurrent enrollment occurs.
w Potential overpayment occurs when two or more
schools send a disbursement record for a student
and the percentage of the student’s Federal Pell
Grant eligibility used is greater than 100%.
w Concurrent enrollment occurs when two or more
schools send in origination and disbursement
records for the same student with enrollment dates
within 30 days of each other. 25

• Schools can also request an MRR to obtain information


about other schools that may have submitted origination
or disbursement records for their students.

June 1999 Fiscal Officer Training • Participant’s Guide Introductory Session — 15


Notes

Year-to-Date (YTD) Records


w Replace the Student Payment Summary (SPS).
w Contain origination and disbursement records for
every student processed by the school.
w Only sent on request.

26

d. Benefits

Benefits of RFMS
Benefits of new system include:
w an entirely electronic process
w reduced turnaround time
w all records are acknowledged
w ED can forecast funding needs more accurately
w flexibility in submitting records

27

3. Access America for Students


• Access America for Students will provide electronic, Web-
based access to government services.
• Access America for Students also tests key concepts of the
Modernization Blueprint (formerly Project Easy Access
for Students and Institutions).
• The timeline for implementing the Access America for
Students pilot project is aggressive, with the pilot project
scheduled to begin in the 1999-2000 funding year.
• More information is available at http://easi.ed.gov

16 — Introductory Session Fiscal Officer Training • Participant’s Guide June 1999

You might also like