1. Louisiana Association of Student Financial Aid Administrators
Federal Update
Louisiana Association of Student Financial Aid Administrators
October 9, 2014
Kevin Campbell U.S. Department of Education

2. Copies of Presentation
All FSA presentations will be made available to LASFAA next week for publication/dissemination

3. Training Opportunities

4. FSATRAINING.INFO New website with FSA Training SAP Default Management
Introduction to FSA
COACH
Consumer Info
School Eligibility
Student Eligibility
EDExpress
Recorded webinars
And MORE!

6. Default Rates

7. Transition Period 7

8. Cohort Default Rate

9. National Default Rates
On September 22, 2014, the Department electronically distributed FY Year official cohort default rates to all eligible schools
Time period for appealing FY Year Official Cohort Default Rates (34 C.F.R Part 668, Subpart N) begins on Tuesday, September 30, 2014 for all schools

10. Electronic Announcement – dated 9/23/14
FY2011 CDR Calculations
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
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

11. Default Sanctions* (3-year rates)
Default Prevention Plans
1st year CDR is equal to or greater than 30%:
Establish a default prevention task force; and
Develop and submit a default prevention plan to ED
2 consecutive CDRs equal to or greater than 30%:
Revise and submit default prevention plan
ED may require specific adjustments/actions
3 consecutive CDRs equal to or greater than 30%:
Lose Direct Loan AND Pell Grant eligibility
FY2011 or later CDR above 40% lose DL eligibility
*ability to appeal/challenge rates

12. GEN-14-03 Provides a summary of: Cohort Default Rate calculations
Consequences of high default rates
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
CDR challenges, adjustments and appeals
Detailed discussion and chart on participation rate index challenges and appeals

13. Default Management Resources
Default Prevention Resource Webpage
Right-hand side of IFAP website
Cohort Default Rate Guide
Default Prevention questions can be sent to:
Default Management Website
Cohort Default Rate questions should be directed to:
(202) ;
Default Prevention and Management Course
fsatraining.info (under training by topics)

14. Perkins 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, Unless Congress enacts legislation that specifically repeals the authorization of the program, the Perkins Loan Program will continue at least through the award year.

15. INTEREST RATES: Bipartisan Student Loan Certainty Act of 2013 (EA – May 15, 2014)

16. 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 16

17. 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% 17

18. Sequestration
(GEN-14-10)

19. Sequestration

20. Sequestration

21. Sequestration

22. Verification &

23. Transcript Requests – 2014-2015
Online IRS Transcript requests
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
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 ( ), or paper Form 4506 or 4506-T
These request methods will result in a paper transcript
DCL – GEN-14-05

24. Identity Theft –
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 ( )
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)
The TRDBV is an official transcript that can be submitted to the school to meet verification requirements
DCL – GEN-14-05

25. 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
Among the Verification Tracking Groups first established for the FAFSA processing year (see DCL GEN-12-11), groups V4 and V5 required schools to verify, among other things, the identity and high school completion status of selected students. We have now developed a process where, beginning with the FAFSA processing year on January 1, 2014, schools will be required to report the verification results of those students’ identify and high school completion status.
Institutions will use the FAA Access to CPS Online website ( to report the verification results using a new Identity Verification Results feature. Note that this reporting is in addition to and does not replace normal required verification reporting to the Common Origination and Disbursement (COD) System.

26. 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
changes to previously submitted Identity Verification Results must be updated within 30 days

27. V4/V5 Tracking Results – 2014-2015
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
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

28. 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
changes to previously submitted Identity Verification Results must be updated within 30 days

29. V4/V5 Tracking Results – 2014-2015
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
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

30. Statement of Educational Purpose
14-15 Statement of Educational Purpose (In Person)
…the Federal student financial assistance I may receive will be used only for educational purposes…
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)
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)

31. 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– Verification Tracking Group for the entire 2015– award year regardless of subsequent corrections to the applicant's record
Just like in the 13/14 and 14/15 award years, once a student is placed in a verification tracking group in 15/16, they will remain in that tracking group throughout 15/16. Students will not be switched from one tracking group to another.

32. 2015-16 Verification Federal Register published June 25, 2014
GEN published June 30, 2014
ED will provide suggested text - Fall 2014
Same items to be verified as
Same Verification Tracking Groups as

33. 2014-15 Verification References & Resources
Federal Register Notice - June 13, 2013
DCL GEN June 13, 2013
DCL GEN – 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)
king/2009/integrity-qa.html

34. FAFSAs
&
ISIRs

35. Update NSLDS Fraud Loan Flag
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:
Records will receive Reject Reason 24 and SAR Comment 272
Effective for and

36. 2014-2015 FAFSA (GEN-13-12) 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”
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

37. 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 )
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

38. Updated SAR Comment Codes Guide
SAR Comment Codes and Text Guide (October 2014 Update)

39. New ISIR Guide New ISIR Guide for 2015-16

40. The FSA PIN Replacement
FSA ID:
The FSA PIN Replacement
Person Authentication
Service (PAS)

41. 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 on 4/25/15
New FSA ID login
Will be updated
Old PIN login
PIN used SSN DOB and 2 characters of last name.
Needed to create a new pin when user changed name due to marriage or divorce

42. Introducing the FSA ID What happens for new user?
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
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?
If the user links their PIN, they will have access to previous FAFSA submissions

43. Introducing the FSA ID
Can users still access FAFSA by providing their Last name, SSN and DOB?
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.
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?
This is only for users who are accessing their own information such as students, parents, borrowers and applicants
1. Access for privileged users, most of you, which allows you to see information for parents, students, borrower and applicants will not change. You will still be required to provide your login information and use your hard token.

44. NSLDS Enrollment Reporting

45. Enrollment Reporting Transition
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

46. 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
Schools may choose to receive reports more frequently

47. NSLDS Program-Level Reporting
GEN (new enrollment status guidance)
Academic 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

48. NSLDS Program-Level Reporting
GEN (new enrollment status guidance)
Must 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
Six examples provided in Dear Colleague Letter

49. Enrollment Reporting
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
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

50. Enrollment Reporting Requirement
§ 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.
b addresses Summer
addresses R2T4
b and c separate required to take attendance and not required
A student not attending has withdrawn for Title IV purposes

51. Enrollment Resources…
New Enrollment Reporting Layouts: February 27, 2014
GEN (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 51

52. Gainful Employment

53. 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
Generally, all non-degree programs must lead to gainful employment
Generally, all programs at for-profit institutions must lead to gainful employment
Any institution and “to prepare students for gainful employment in a recognized occupation”

54. 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 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) or

55. Gainful Employment - Regulations
Notice of Proposed Rulemaking (NPRM)
Federal Register - March 25, 2014
OPE Website with discussions and materials associated with GE negotiated rulemaking:
Final Federal Register “expected” by November 1, 2014
Effective date would be July 1, 2015

56. Campus Security

57. 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

58. 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

59. Institutional Security & Crime Reporting
GEN & 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

60. Campus Security Policy Resources
The Handbook for Campus Safety and Security Reporting
Online tutorial
FSATC Presentation in December
Jim Moore

61. Proposed Rules and DCLs of Interest

62. Dear Colleague Letters
GEN – Recognized Equivalent of a HS Diploma
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 State-authorized examination will receive official notification of a passing or failing score used to determine if a State will issue a high school equivalency certificate

63. 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)

64. 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

65. What’s New in the 14/15 FSA Handbook

66. New Appendices Appendix A―Federal Student Aid Glossary
Appendix B―Acronyms
Appendix C―Technical Resources and Assistance
Appendices A, B and C brought over from The Blue Book
Appendix D―Actions a School Should take When a Student Dies
All FSA guidance on how a school should proceed when a currently enrolled Title IV recipient dies
 Appendix E―HEA Table of Contents
Was Appendix A in the 13/14 FSA HDBK

67. Active Page Links
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

68. Active Page Links The first two links are Glossary and Acronyms
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
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:

69. Need Help? Research and Customer Care Center Reach FSA 800.433.7327
Feedback link on IFAP
Reach FSA
855.FSA.4FAA number to reach 10 contact centers!
Campus Based Call Center eZ-Audit
COD School Eligibility Service Group
CPS/SAIG Foreign Schools Participation Division
NSLDS Research and Customer Care Center
G Nelnet Total & Permanent Disability Team

70. Contact Information
Your Region VI Regional Training Officers:
Trevor Summers
Rick Renshaw
Kevin Campbell

71. AASFSA Symposium
Training Feedback
To ensure quality training we ask all participants to please fill out an online session evaluation
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

72. Thank You, LASFAA! Hope to see You in Atlanta!