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Bi weekly of National Student Loan Program Bi weekly

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									National Student Loan Program - Bi-weekly                                                                        Page 1 of 5



News & Publications: Newsbriefs

Bi-weekly




                                                           SUBSCRIBE TO NEWSBRIEFS
June 19, 2009                                                      Connect with NSLP
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      Schools Requested to Update Federal School Code Information by June 30
      A Reference List of the July 1 Changes
      Mapping Your Future Reaches a New Milestone
      TEACH Grant Closeout Information
      Veterans Administration Publishes Initial List of Schools Participating in the Yellow Ribbon Program
      Lender Options for Determining Federal Consolidation Loan Interest Rates as of July 1
      Federal Perkins Loan Service Cancellation Reimbursement
      NSLP Reminds Schools of Preferred Lender Rules
      NSLP and Hilbert College Offer Students Passports to Financial Success
      NSLP Closes Briefly for Employee Appreciation Week Activities
      Dollars and Sense
      Compliance Corner
      Did You Know...
      Team NSLP. Recruiting Winners.
      Calendar of Events
      This and That and On That Note
      Subscribe to Newsbriefs

SCHOOLS REQUESTED TO UPDATE FEDERAL SCHOOL CODE INFORMATION BY JUNE 30
Federal Student Aid wants to remind all schools that their information on the Federal School Code (FSC) List of Participating
Schools must be kept current. Schools need to verify their (FSC) name, address, and contact information on the Electronic
Application (E-App) website for approval to participate in the Federal Student Financial Aid Programs. Any changes should be
made by June 30 to ensure that the changes will be incorporated in the upcoming list for the 2009-2010 award year.

Top

A REFERENCE LIST OF THE JULY 1 CHANGES
Many changes will go into effect on July 1, and NSLP wants to provide you an easy reference to these changes. For more
information about these changes please contact NSLP Policy at askpolicy@nslp.org or 1-800-735-8778 ext. 6873.

Top

MAPPING YOUR FUTURE REACHES A NEW MILESTONE
Mapping Your Future (MYF) now provides online counseling to 3,600 schools in the United States and around the world. This
milestone was reached on May 27, as the number of schools taking advantage of the online counseling continues to increase.

Thirty-five guaranty agencies of the Federal Family Education Loan Program (FFELP) support MYF and their Online Student
Loan Counseling. The sponsorship from the guaranty agencies and FFELP allows MYF to provide this free service for schools
and borrowers. You can read more about this milestone in the MYF press release.

Top

TEACH GRANT CLOSEOUT INFORMATION
On May 29, ED issued an electronic announcement detailing the process to closeout TEACH Grants for the 2008-2009 award
year. The TEACH Grant closeout deadline is September 30, 2009.

Please see the announcement and attachments for additional information. For questions about the closeout process, please
contact the COD School Relations Center by phone at 800-474-7268 or by e-mail.

Top




http://www.nslp.org/vnews/display.v/ART/4a2d3f7e93037                                                              6/16/2009
National Student Loan Program - Bi-weekly                                                                                 Page 2 of 5



VETERANS ADMINISTRATION PUBLISHES INITIAL LIST OF SCHOOLS PARTICIPATING IN YELLOW RIBBON PROGRAM
Recently the Veteran’s Administration (VA) published an initial list of schools that have elected to participate in the Post 9/11 GI
Bill Yellow Ribbon Program. The VA will update the list as additional information is received. Schools have until June 15 to elect
to participate in the Yellow Ribbon Program. The VA will publish the final list by June 22.

Top

LENDER OPTIONS FOR DETERMINING FEDERAL CONSOLIDATION LOAN INTEREST RATES AS OF JULY 1
Federal Consolidation Loans in the FFEL Program have fixed interest rates that are based on the weighted average of the
interest rates of the loans being consolidated. Many of the loans that borrowers may wish to consolidate over the next several
weeks have variable interest rates that will decrease significantly on July 1. To help borrowers obtain the lowest statutory
weighted average interest rate on their consolidation loans, the Department of Education is encouraging lenders to delay the
funding for applications received prior to July 1 until after July 1 so borrowers can benefit from the lower interest rates that will be
in effect.

Top

FEDERAL PERKINS LOAN SERVICE CANCELLATION REIMBURSEMENT
On May 29, ED issued an electronic announcement containing questions and answers on Federal Perkins Loan Service
Cancellation Reimbursement.

Federal Perkins loan program regulations, in the Code of Federal Regulations (34 CFR 674.63), detail the conditions under
which a Perkins borrower may have all or part of his or her loan cancelled due to certain forms of public service. The Department
of Education’s (ED) question and answer document explains the 2007-2008 reimbursement process.

Top

NSLP REMINDS SCHOOLS OF PREFERRED LENDER RULES
In May 2008, the Department of Education (ED) issued Dear Colleague Letter (DCL) GEN-08-06 that gave guidance on how a
school should handle its preferred lender list. This DCL also described what a school should do if it could not find three
unaffiliated lenders, or if the school only wanted to give general information about the lenders that work with the school.

NSLP is making this DCL available again as a reminder to schools of these rules.

Top

NSLP AND HILBERT COLLEGE OFFER STUDENTS PASSPORT TO FINANCIAL SUCCESS
As part of their national financial literacy month earlier this year, the Office of Student Finance at Hilbert College in Hamburg,
New York teamed up with NSLP to offer students a unique learning opportunity.

Throughout the week of April 27, students could meet with various financial representatives by visiting the Financial Literacy
Marketplace in the campus dining hall. NSLP, along with representatives from M&T Bank, Security Credit Systems, Consumer
Credit Counseling and other businesses were available to provide money management information to students.

Throughout the week students could also attend a variety of financial success presentations on budgeting, credit smarts, debt
management, identity theft, student loans, employee benefits and insurance. Anne Barton, one of NSLP’s Accredited Financial
Counselors, presented sessions on Frugal Living on a College Budget.

To boost participation, Hilbert gave each student a Passport to Financial Success and encouraged them to visit the marketplace
and attend presentations to collect passport stamps to win prizes and entries in prize drawings. Students who received the most
stamps had more chances to win prizes.

Hilbert was pleased with the turnout for the event. Student evaluations showed they liked the flexibility of gaining financial
knowledge while they enjoyed refreshments. Students also liked the chance to win prizes.

For more information about NSLP’s financial literacy services for your students, contact your NSLP business development
Regional Director at 800.735.8778, ext. 6618.

Top
NSLP CLOSES BRIEFLY FOR EMPLOYEE APPRECIATION WEEK ACTIVITIES
NSLP will close from 1-3pm CDT on Tuesday, June 23 for an all staff meeting. We will re-open at 3pm. NSLP will also close at
3:30 pm CDT Thursday, June 25, for NSLP's employee appreciation day. Even though we're closed, you may leave a message
or send an e-mail. You'll receive a prompt response when we re-open at 7:00 am the following day.




http://www.nslp.org/vnews/display.v/ART/4a2d3f7e93037                                                                      6/16/2009
National Student Loan Program - Bi-weekly                                                                              Page 3 of 5



You may send and receive electronic application files as usual. If you have questions, contact Customer Service.

Top

Dollars and Sense
NSLP's Financial Literacy team—experts on money management issues—provide helpful tips for your students in each edition of
Dollars and Sense.

ARE YOU OVERPAYING?
As we try to save more, we find ways to reduce expenses. There are also a number of instances where consumers overpay.
BillShrink.com is a website designed to help reduce expenses. The site lists ten things consumers commonly pay too much for.
Are you paying too much for any of these items?

  1. Pseudo health products - The protein bars that are advertised as low fat or all natural can be as unhealthy as candy bars
     because of their sugar content. Think twice before snacking on this sugar-packed treat; candy bars are less expensive.
  2. New technology - Technology prices come down considerably once new products have been on the market several
     months to a year. Waiting to purchase that new item allows time for other companies to release competitive technology
     and prices to fall.
  3. Bottled water – Water filters that convert tap water into filtered water are readily available at a low cost. However, millions
     of people choose to spend $1-$2 on this convenience item each day. Save your money buy purchasing a water filter and
     bringing your water from home.
  4. Pre-packaged food – Pre-packaged food items like sandwiches, sliced apples, or desert cups are more expensive then if
     you bought the ingredients individually and prepared them yourself. Take the time to prepare your meals and snacks; you
     get more food for your money.
  5. Brand accessories for computers – You can find computer accessories for your computer for a fraction of the cost of
     purchasing a new computer. Shop around for the right compatibility for your current computer.
  6. Faxing from a business center – Sending faxes from places like Kinkos can cost $1-2 per page. Consider another
     alternative. There are a number of free web-based fax services where all you need is an e-mail address and a scanner.
  7. Additional warranties on electronics - The typical lifespan of electronic products are 3-5 years. If you think you will
     upgrade the item within five years don’t purchase extended warranties that can cost up to 50 percent of the purchase
     price.
  8. Late and overdraft fees - Paying late fees on credit cards and overdraft fees on bank accounts can be costly. Late fees
     can be as high as $39. Overdrafts add up quickly as fees get charged for each transaction made while an account is
     overdrawn. Avoid paying these fees by budgeting your money wisely.
  9. Non-bank ATM fees - ATM fees can also add up. It is not unusual for an ATM convenience fee to cost $2.00, and then
     the card-issuing bank charges up to an additional $2.50 for use of a non-bank ATM. As a result, it may cost up $4.50 to
     withdraw $20.00.
 10. Gambling – When you choose to gamble the odds are against you. The odds are better when you deposit the money into
     your money market account.

These are just a few of many items where consumers are spending too much money. Reflect on where you are spending your
money and remember what Benjamin Franklin said, “A penny saved is a penny earned.”

Do you have a question about personal money management issues? Send it to Ask Financial Literacy, and our team of experts
will quickly respond with an answer you can rely on!

For more great advice from our Financial Literacy experts, subscribe to our biannual newsletter, AFC Money Watch, and get the
information you want sent directly to your inbox.

                                                                                                                                 Top

Compliance Corner
Compliance Corner is a recurring feature highlighting recent questions from schools and lenders. Read what your colleagues are
asking, and find answers to questions you may have.

   Q. What is the requirement of Stafford entrance and exit counseling for students that have completed both as an
   undergraduate and are returning to the same school as a graduate student? Must the student complete exit counseling for
   their undergraduate borrowing and then complete entrance counseling upon starting as a graduate student?

   A. For undergraduate students that have completed entrance counseling at an institution, and continues their education at
   that institution as a graduate student, you could choose to have them go through entrance counseling again. However, you
   would only be required to do so if, as a graduate student, they were to borrower a Grad/Professional PLUS loan.

   If the student borrows a Grad/Professional PLUS loan, they added a different loan type to their loan portfolio with different
   repayment options, interest repayment/capitalization options, interest rate, etc, than their Stafford loans. Under this scenario,




http://www.nslp.org/vnews/display.v/ART/4a2d3f7e93037                                                                   6/16/2009
National Student Loan Program - Bi-weekly                                                                           Page 4 of 5



    you would be required to perform entrance counseling again for the graduate student. When the graduate student completes
    his/her studies, or withdraws, you would at that time need to perform the exit counseling requirement to cover all types of
    ‘repayable’ aid the borrower received at your institution.

    The 08-09 FSA Hand Book (Vol.2, Ch. 6, Pg. 2-84) further explains the entrance counseling requirements for student PLUS
    borrowers.

    Top

Did You Know . . .
NSLP offers financial literacy courses and programs that empower schools to help students not only during school but throughout
their lifetimes. Financial Literacy Online is a comprehensive and convenient online learning center that teaches students the
basics of personal money management.

Top

Team NSLP. Recruiting Winners.
At various times, NSLP scouts for qualified candidates to join its winning team. Learn more about NSLP and career
opportunities online, or contact Human Resources for more information.

Top

Calendar of Events
You can view the Calendar and find NSLP's Business Development team exhibiting and presenting at many of the upcoming
events. Stop by our booth or call 800-735-8778, ext. 6618 for a personal consultation to learn how you can streamline your
student loan process.

This and That . . .
One billion seconds is about 32 years.

On That Note . . .
"Let him who would enjoy a good future waste none of his present."
-Roger Babson


Questions or Comments?
If you have questions or comments, contact NSLP Customer Service at 800-735-8778,
ext. 6300 or e-mail nslpcs@nslp.org.

Subscribe to Newsbriefs. . .
You can subscribe to Newsbriefs online at Connect with NSLP or e-mail newsbriefs@nslp.org and include your name,
organization, address, phone, fax, and
e-mail. To discontinue receiving Newsbriefs, e-mail newsbriefs@nslp.org

Download a PDF version of this issue

Add an RSS feed to your web browser

                                                                                                                             Top

NSLP is a private non-profit guarantor of loans made under the Federal Family Education Loan
Program. This publication is intended to provide NSLP's clients with current information on
guarantor policies and procedures. The information is not intended to be legal advice. NSLP
disclaims all responsibility for any claim arising from reliance on the information provided. Direct
questions, copy requests or address changes to:

                       NSLP Customer Service
                       P.O. Box 82507, Lincoln NE 68501-2507
                       phone 800-735-8778,
                       ext. 6300 402-475-8686
                       fax 402-479-6658 e-mail nslpcs@nslp.org




http://www.nslp.org/vnews/display.v/ART/4a2d3f7e93037                                                                6/16/2009
National Student Loan Program - Bi-weekly               Page 5 of 5




Editors: Carol Ash and Amanda Boltz




http://www.nslp.org/vnews/display.v/ART/4a2d3f7e93037    6/16/2009
IFAP - Electronic Announcements                                                     Page 1 of 2




Posted Date: June 2, 2009

Author: William Leith, Service Director, Program Management, Federal
Student Aid

Subject: Update Your Federal School Code Information by June 30, 2009

Federal Student Aid is preparing the quarterly update of the Federal School
Code List of Participating Schools and would like to remind all schools that
school information must be kept current. Please verify your Federal School
Code (FSC) name, address, and contact information on the Electronic
Application for Approval to Participate in the Federal Student Financial
Aid Programs (E-App) Web site (http://eligcert.ed.gov), and update the
information as necessary. To ensure your changes will be incorporated in the
upcoming update of the list for the 2009-2010 Award Year, please make your
updates no later than June 30, 2009.

The information you submit on the E-App Web site will be used to update the
Federal School Code List of Participating Schools and will also be added to
the FSC File on FAFSA on the Web (http://www.fafsa.ed.gov). Applicants
for federal student aid use these lists to find the Federal School Code(s) of the
school(s) they want to include on the Free Application for Federal Student Aid
(FAFSA).

Note: As we have informed you in the past, the Federal School Code List of
Participating Schools is only available electronically; we no longer distribute
the list in hard-copy format. This year we are providing it electronically in PDF
and Microsoft Excel (XLS) format. In addition to the Federal School Code
search that is already available on FAFSA on the Web, the electronic files
provide you with the most current FSC information available in a searchable
format. We will remind you quarterly to update your FSC information, after
which an updated file will be posted.

The updated electronic 2009-2010 Federal School Code List of Participating
Schools will be available August 3, 2009 on the Information for Financial
Aid Professionals (IFAP) Web site (http://ifap.ed.gov). It will also be posted
on the National College Access Network (NCAN) Web site
(http://www.collegeaccess.org/NCAN).

Submitting Updates to FSC Information



http://ifap.ed.gov/eannouncements/060209FederalSchoolCOdeDue.html                     6/3/2009
IFAP - Electronic Announcements                                                 Page 2 of 2



To update your FSC information, go to the E-App Web site
(http://eligcert.ed.gov). Click on "Update your Federal School Code
Addresses which are used by the FAFSA" on the left side of the page under
the "Other Features" section.

Note: A school can only have one city and state for each FSC. In addition,
changes to the FSC File do not update your school's name or address in any
other U.S. Department of Education database. If you need to change the
"Official Name or Address" of your school, you must submit an "Update"
application through the E-App Web site.

Contact Information

We appreciate your assistance in keeping your school's Federal School Code
information up to date. For help with the E-App Web site, contact the Federal
Student Aid School Participation Team for your state. Please see the E-App
home page for the phone number of your School Participation Team.




http://ifap.ed.gov/eannouncements/060209FederalSchoolCOdeDue.html                 6/3/2009
                       Federal Student Loan Changes
                                      Effective July 1, 2009


INCOME BASED REPAYMENT
Income Based Repayment (IBR) is a new repayment plan that is available for FFELP and Direct Loan
borrowers who demonstrate a partial financial hardship. IBR may be used for subsidized and
unsubsidized Stafford loans, Grad PLUS loans and federal Consolidation Loans. IBR does not apply
to loans in default, alternative loans or parent PLUS loans or a Consolidation Loan used to repay a
parent PLUS loan. This new repayment plan is effective July 1, 2009.

ECONOMIC HARDSHIP DEFERMENT
The Economic Hardship Deferment will continue to be a deferment option for borrowers; however,
effective July 1two eligibility criterion will be eliminated. The 20/220 criterion and the criterion that
allows a borrower “working less than full time” but making less than the established threshold to
receive this deferment.

No periods of economic hardship deferment may be granted based on the 20/220 criterion for any
deferment request received by the lender on or after July 1, 2009, if the deferment period begins on or
after the July 1, 2009 date.

JULY 1 INTEREST RATE CHANGES
Variable rate loans made to borrowers prior to July 1, 2006 will once again decrease on July 1st. The
variable loan interest rates for FFEL and Direct Loans originated prior to July 1, 2006 are as follows:

Stafford Loans (In-School / Deferment / Grace) – 1.88%
Stafford Loans (Repayment or Forbearance) – 2.48%
PLUS Loans – 3.28%

NSLP has also updated its interest rate chart for loans that are based on the 91-day Treasury Bill
auctioned annually before June 1. NSLP's updated interest rate chart is available on our website. We
will update the chart again after the 1-year constant maturity Treasury yield and the 91-day T-Bill
auction rates for the quarter ending June 30 are available. The rates that are not yet available are
highlighted in yellow on the interest rate chart.

As a reminder, the fixed subsidized Stafford interest rate for undergraduates will decrease to 5.6% for
loans first disbursed on or after July 1, 2009. All other fixed interest rates will remain unchanged, and
are as follows:

         subsidized Stafford loans (Graduate Students) - 6.8%
         all unsubsidized Stafford loans - 6.8%
         FFEL PLUS loans - 8.5%
         Direct Loan PLUS loans - 7.9%

DECREASE OF THE ORIGINATION FEE
For a Stafford loan first disbursed on or after July 1, 2009, the maximum origination fee will decrease
to 0.5%. This is decease from 1% for loans first disbursed on or after July 1, 2008.
IFAP - Electronic Announcements                                                  Page 1 of 2




Posted Date: May 29, 2009

Author: William Leith, Service Director, Program Management, Federal
Student Aid

Subject: TEACH Grant Closeout Information for 2008-2009 Award Year

As we approach the end of the award year, it is time to begin our process of
closeout for the 2008-2009 Teacher Education Assistance for College and
Higher Education (TEACH) Grant Award Year. As this process may be new to
many schools, this announcement and its attachments will provide initial
operational guidance about what closeout means and the tools a school can
use to complete it.

The TEACH Grant closeout deadline for the 2008-2009 Award Year is
Wednesday, September 30, 2009. This is the last processing day of the
award year, so all school data must be received and accepted by this date in
order to be included in a school's final Ending Cash Balance for the year. To
be considered successfully closed out, the school must-

  Have an Ending Cash Balance of $0 and Total Net Unbooked
  Disbursements of $0, as reflected on the TEACH Grant School Account
  Statement (SAS).

Explanation of Attachments

To assist schools in preparing for the TEACH Grant closeout process, we
provide additional closeout information in two attachments to this
announcement.

The attachment titled "2008-2009 TEACH Grant Closeout Guidance"
provides information about Balance Notification e-mails and tools a school can
use to complete TEACH Grant closeout.

The attachment titled "Process for Formatting and Printing the TEACH
Grant SAS" provides guidance for a school that currently does not have the
technical support to work with the Comma-Delimited with Headers format of
the TEACH Grant SAS.

Contact Information

We appreciate your cooperation as we work to close out the 2008-2009
TEACH Grant Award Year. If you have questions about this announcement or

http://ifap.ed.gov/eannouncements/052909TEACHGrantCloseout0809AY.html              6/2/2009
IFAP - Electronic Announcements                                            Page 2 of 2


its attachments or need assistance with closeout, contact the COD School
Relations Center at 800/474-7268. You may also e-mail CODSupport@acs-
inc.com.

Attachments/Enclosures:

2008-2009 TEACH Grant Closeout Guidance in PDF Format, 117KB, 2
Pages

Process for Formatting and Printing the TEACH Grant SAS in PDF
Format, 8KB, 1 page




http://ifap.ed.gov/eannouncements/052909TEACHGrantCloseout0809AY.html        6/2/2009
2008-2009 TEACH Grant Closeout Guidance (Attachment to
May 2009 Electronic Announcement)


Overview         The TEACH Grant closeout deadline for the 2008-2009 Award Year is Wednesday,
                 September 30, 2009. To be considered successfully closed out, the school must—

                 Have an Ending Cash Balance of $0 and Total Net Unbooked Disbursements of $0,
                 as reflected on the TEACH Grant School Account Statement (SAS).


Definitions      Closeout Deadline: The last processing day of the award year. All school data must
                 be received and accepted by this date in order to be included in a school's final
                 Ending Cash Balance for the year.

                 Ending Cash Balance (ECB): ECB equals Net Drawdowns (Cash Receipts-Refunds
                 of Cash) minus Total Net Booked Disbursements as recorded in the COD system and
                 reflected in the SAS.


Balance          Beginning in June 2009, Federal Student Aid will send monthly notices via Balance
Notification     Notification e-mails.
E-mails
                 The Balance Notification e-mail will provide a school's current Ending Cash Balance
                 and general information about the closeout process. It will be sent to the Financial
                 Aid Administrator and President at each school.

                 Any school that processed TEACH Grant awards or had cash activity for 2008-2009
                 will receive the initial Balance Notification e-mail. After the initial e-mail, a school
                 will only receive a subsequent e-mail if the school has a remaining balance or a
                 change in the balance since the prior month. A school that has zero balance will not
                 receive a subsequent e-mail.

                 After the closeout deadline, Federal Student Aid will bill any school with a
                 remaining balance.


Reconciliation   Reconciliation should be performed on at least a monthly basis, and the final
and Closeout     closeout stage should be the final reconciliation for the award year. As part of this
Actions          final reconciliation, all discrepancies and reasons for a school's Ending Cash Balance
                 should be identified and resolved, and any remaining funds must be returned to the
                 Department.

                 A key factor to an easy reconciliation and closeout is staying on top of the process.
                 We encourage schools to review the following information:

                        Compare internal student accounts and Business Office/Bursar records with
                         Financial Aid Office records and resolve any discrepancies.
                       Ensure that all drawdowns and refunds of cash are accounted for and applied
                        to the correct award year.
                       Ensure that all batches have been sent to and accepted by the COD System,
                        all disbursements and adjustments are accurately reflected on the COD
                        System, and all responses are imported into the school’s system.
                       Resolve all outstanding rejected records.
                       Return all refunds of cash to the Department.
                       Request any remaining funds owed to the school based on actual
                        disbursements accepted by the COD System.


Tools for       There are numerous tools available to assist schools in reconciliation and closeout
Schools         efforts. These tools are as follows:

                       TEACH Grant School Account Statement (SAS)*
                       Pending Disbursement Listing
                       G5 Web Site and Reports
                       Common Origination and Disbursement (COD) Web site (particularly the
                        School Summary Financial Information, Funding Information, Cash
                        Activity, and Refunds of Cash screens)
                       Customer Service Representative/Reconciliation Specialist Assistance

                *An additional attachment provides guidance for a school that currently does not
                have the technical support to work with the Comma-Delimited with Headers format
                of the TEACH Grant SAS.


Special Notes   1) If a school has been receiving a monthly TEACH Grant SAS only, it may wish
                   to update their TEACH Grant SAS options to receive a Year-to-Date (YTD)
                   SAS or both (monthly and YTD) for the purposes of performing its final
                   reconciliation. A school can do this on the COD Web site.

                Note: When a school makes a change to its TEACH Grant SAS options, it will be
                effective with the next SAS run.

                2) A school must be aware of its closeout status even if its TEACH Grant
                   processing is handled by a third party servicer. We encourage each school to
                   communicate regularly with your third party servicer to ensure closeout is
                   completed. It is the school’s responsibility to ensure that it finishes processing
                   and confirms closeout on time.


Contact         If you have questions or need assistance with TEACH Grant closeout process,
Information     contact the COD School Relations Center at 800/474-7268. You may also e-mail
                CODSupport@acs-inc.com.
                       Attachment to May 2009 Electronic Announcement
                   Process for Formatting and Printing the TEACH Grant SAS

In September 2008, we implemented additional functionality to support the processing of the
Teacher Education Assistance for College and Higher Education (TEACH) Grant Program. In
particular, we implemented the TEACH Grant School Account Statement (SAS). In order to
allow delivery of the TEACH Grant SAS as soon as possible after the implementation of the
TEACH Grant Program, we limited the format option of the SAS to Comma-Delimited with
Headers. This format option was selected over the other options because it was considered to be
more universally readable by schools with any database or spreadsheet software.

In this attachment, we provide assistance for a school that currently does not have the technical
support to work with the Comma-Delimited with Headers format of the TEACH Grant SAS. If a
school has experienced no issues with the Comma-Delimited with Headers format, the
information we provide in this announcement will likely be unnecessary.

Note to EDExpress Users: The TEACH Grant SAS can be imported into and printed from
EDExpress.

If a school currently does not have the technical support to work with the Comma-Delimited with
Headers format for the TEACH Grant SAS has not yet created an alternative method for working
with it, we suggest using a spreadsheet or database program to format and print the TEACH
Grant SAS. The following instructions describe a process for doing so using Microsoft Excel:

1. Open Microsoft Excel.
2. From the File menu, select Open.
3. From the Open dialog box, click on the drop-down menu labeled Look in. Navigate to where
   the TEACH Grant SAS files are saved. If a school is unsure where to locate its report files,
   check the EDConnect setup or check with the appropriate IT staff.
4. Click on the Files of Type drop-down menu at the bottom of the Open dialog box. Choose
   All Files (*.*). A school should now be able to view a list of all files in the folder chosen
   from the Look in: drop-down menu.
5. Choose the most recent TEACH Grant SAS file from the list. The message classes for the
   TEACH Grant SAS are THSM09OP (for a monthly detail file) and THSY09OP (for a Year-
   to-Date detail file). A school can identify the latest report based on either the file Modified
   date or by choosing the highest numbered file extension.
6. Click Open.
7. From the Text Import Wizard Dialog, under Original Data Type, choose Delimited. Click
   Next.
8. Under Delimiters, click the checkbox next to Comma. Click Finish.
After following these instructions, a school will be able to view the TEACH Grant SAS as a
spreadsheet in Microsoft Excel. The school can update the formatting as desired to view or print
it. In addition, all of the section and column headings will be included in the body of the TEACH
Grant SAS.
Volume 2 — School Eligibility and Operation, 2008-2009


                               Entrance Counseling for Student PLUS Borrowers
 A school must ensure that initial counseling is conducted with each graduate or professional student PLUS Loan borrower
 who has not received a PLUS Loan in the past. The counseling must be take place before the first disbursement of the
 loan. (Direct Loan schools may use an alternative counseling plan.)

 The initial counseling must inform the student borrower of sample monthly repayment amounts based on 1) a range of
 student levels of indebtedness, or 2) on the average indebtedness of student borrowers at the same school or in the same
 program of study at the same school. If you are providing an average amount of indebtedness, it must be based on the
 average indebtedness of borrowers who have received Graduate/Professional PLUS loans at your school.

 For a graduate or professional student who has received a prior Federal Stafford, or Direct Subsidized or Unsubsidized
 Loan, you must provide a comparison of—
          • The maximum interest rate for a PLUS Loan vs. a Stafford (or Direct Subsidized/Unsubsidized) Loan,
          • the periods when interest accrues on a PLUS Loan vs. a Stafford (or Direct Subsidized/Unsubsidized) Loan, and
          • The point at which a PLUS Loan enters repayment vs. a Stafford (or Direct Subsidized/Unsubsidized) Loan.

 For a graduate or professional student who has not received a prior Federal Stafford, or Direct Subsidized or Direct
 Unsubsidized Loan, you must—

    • Explain the use of the master Promissory note. If relevant at your school, explain the use of the multi-year feature
      of the MPN, and the borrower confirmation process. You should advise students to carefully read the MPN and the
      Borrower’s Rights and Responsibilities statement before signing the MPN. In addition, you should inform borrowers of
      their right to sign a new promissory note for each loan and opt out of the multi-year feature of the MPN.

    • Emphasize the importance of repayment. The regulations also require that entrance counseling emphasize the
      seriousness and importance of the repayment obligation. The lender or Direct Loan Servicing Center (DLSC) sends
      payment coupons or billing statements as a convenience for the borrower. Not receiving them does not relieve the
      borrower of his or her obligation to make payments. (Direct Loan borrowers are encouraged to set up electronic
      debiting of a bank account to repay their loans—electronic debiting is also available through many FFEL lenders.)

    • Describe the consequences of default. The regulations require that entrance counseling describe the
      likely consequences of default, including adverse credit reports, federal offset, and litigation. See additional
      recommendations listed under “Entrance Counseling for FFEL & DL Student Borrowers” earlier in this section.

    • Repayment required. Emphasize that the student borrower is obligated to repay the full amount of the loan even
      if the student borrower does not complete the program, is unable to obtain employment upon completion of the
      program, or is otherwise dissatisfied with or does not receive the educational or other services that the student
      borrower purchased from the school.

                                 Average Indebtedness for Student Borrowers

           If the student has taken out …                                    Average should be based on
                                                                             students who have borrowed
           Stafford only ....................................................................... Stafford only
           Stafford + Graduate/Professional PLUS .............................. Stafford and PLUS
           DL Subsidized/Unsubsidized only........................................ DL Subsidized, Unsubsidized only
           DL Subsidized/Unsubsidized
           + Graduate/Professional PLUS ............................................ DL Subsidized, Unsubsidized, and PLUS




2–84
                                     FOR IMMEDIATE RELEASE: Thursday,
                                                                May 28, 2009
                                     CONTACT: Sherry Hildebrand
                                              Communications Manager
                                              (512) 635-3315
                                              sherry@mappingyourfuture.org



3,600 schools in the United States and around the world now
use Mapping Your Future®’s Online Student Loan Counseling
More students will benefit from Mapping Your Future’s loan counseling with 3,600
schools now participating in this free service. This milestone was reached Wednesday,
May 27, when Xenon International Academy Kansas campus became the 3,600th school
to set up an Online Student Loan Counseling account.

“On behalf of the 35 guaranty agencies of the Federal Family Education Loan Program
that support Mapping Your Future and the Board of Directors, I am pleased to see the
number of Online Student Loan Counseling accounts continue to grow. This is evidence
that schools continue to see Online Student Loan Counseling as an effective tool in
educating their students,” said Julie Kubisiak, chair of the Mapping Your Future Board of
Directors and executive director of Student Loans of North Dakota.

Online Student Loan Counseling, a neutral, non-proprietary and non-commercial
resource, helps schools meet federal loan counseling requirements and helps student loan
borrowers understand their rights and obligations. An important default prevention tool,
Online Student Loan Counseling enhances the loan management education of the student
by actively involving them in the counseling and does not limit their choice of lenders
and/or guarantors.

Online Student Loan Counseling is a free service for schools and borrowers, thanks to the
sponsorship of the nation’s guaranty agencies and support of other organizations in the
Federal Family Education Loan Program.

Mapping Your Future released Online Student Loan Counseling in 1997 and today offers
18 different counseling sessions:
    • Stafford entrance counseling (English and Spanish)
    • Stafford exit counseling (English and Spanish)
    • Perkins entrance counseling
    • Perkins exit counseling
    • Stafford and Perkins combined entrance counseling
    • Stafford and Perkins combined exit counseling
    • Nursing entrance counseling
                                            -more-
   •   Nursing exit counseling
   •   Health Profession entrance counseling
   •   Health Profession exit counseling
   •   Grad PLUS entrance counseling
   •   Grad PLUS exit counseling
   •   Stafford and Grad PLUS entrance counseling
   •   Stafford and Grad PLUS exit counseling
   •   TEACH Grant initial and subsequent counseling (won’t be available for 2009-10
       academic year)
   •   TEACH Grant exit counseling

Visit the financial aid professional’s page at http://mapping-your-
future.org/services/fao.cfm for more information or to sign up to participate.

For more information about Online Student Loan Counseling, contact Beth Ziehmer at
feedback@mappingyourfuture.org or (573) 796-3730.

Based in Round Rock, Texas, Mapping Your Future is a neutral, public-service
organization of the financial aid industry - bringing together the expertise of the industry
to provide services online. Since 1996, Mapping Your Future has received a number of
awards, including recognition for its excellence in content and innovation in technology
services.

Mapping Your Future provides step-by-step instructions on career, college planning, and
financial aid. In addition, the site offers Online Student Loan Counseling, financial
literacy information and tools, chat events on college planning topics, and online
customer service for schools and their students.

                                             ##
IFAP - Electronic Announcements                                                    Page 1 of 4




Posted Date: May 29, 2009

Author: William Leith, Service Director, Program Management, Federal
Student Aid

Subject: 2007-2008 Federal Perkins Loan Service Cancellation
Reimbursement

Subpart D of the Federal Perkins Loan (Perkins Loan) Program regulations
sets forth the conditions for service-based cancellation of a Perkins Loan.
Under these conditions, a Perkins Loan borrower may have all or part of his or
her loan cancelled for engaging in teaching, military service, law enforcement
or corrections officer service, service as a nurse or medical technician, Head
Start service, service to certain types of high-risk children, and voluntary
service. Under 34 CFR 674.63, the Secretary reimburses a school its share of
principal and interest cancelled during an award year. The questions and
answers that follow explain the 2007-2008 reimbursement process.

                           QUESTIONS AND ANSWERS

Q1: How is a service cancellation reimbursement amount calculated?

A1: There are two categories of reimbursement under the Perkins Loan
Program. Reimbursement under each category is calculated as follows:

       Cancellations on loans made prior to July 1, 1972. The first category
       of loan cancellation reimbursement is a school's portion of principal and
       interest cancelled on loans made prior to July 1, 1972 for the National
       Defense Student Loan (Defense Loan) Program. This portion is
       calculated using the required matching percentage schools contributed
       for Defense Loans prior to 1972, which is approximately 10 percent for
       each school that cancelled loans in this category.

       Cancellations on loans made on or after July 1, 1972. The second
       category of loan cancellation reimbursement is both the Federal and
       school portions of principal and interest cancelled on loans made on or
       after July 1, 1972 for the National Direct Student Loan (NDSL) and the
       Perkins Loan programs. Schools are entitled to reimbursement of the
       total amount cancelled.

Both reimbursement calculations are based on information contained in the
2007-2008 Fiscal Operations Report (Part III, Section A, field 28 for the


http://ifap.ed.gov/eannouncements/052909PerkinsCancelReimbursement0708.html          6/1/2009
IFAP - Electronic Announcements                                                    Page 2 of 4


Defense Loan Program and fields 29 through 35 for the NDSL and Perkins
Loan programs).

Q2: Will a school receive the full reimbursement amount to which the
school is entitled?

A2: A school will receive all of the Defense Loan payments to which it is
entitled. However, due to insufficient funds in the Fiscal Year 2009
appropriation, schools will receive less than 100 percent of the reimbursement
due this year for the NDSL and Perkins Loan programs. The Department of
Education (the Department) will maintain a record of the amount owed to each
school and will include it in the calculation for next year.

Q3: Will there be one or two payments to cover the two reimbursement
categories?

A3: One payment will cover both categories of service cancellation
reimbursement.

Q4: When will the service cancellation reimbursement payment be
issued to the school?

A4: In June 2009, the service cancellation reimbursement payment will be
made by electronic funds transfer (EFT) to the bank account established by a
school in G5.

Q5: How will the school be notified of the service cancellation
reimbursement payment?

A5: Approximately one week before we send a school's payment, we will
notify a school by e-mail. We will send this e-mail to the school’s Financial Aid
Administrator, as provided in the school's most recently submitted FISAP or as
updated via the "Contact Info" page on the eCampus-Based (eCB) Web site.

In this e-mail, we will inform a school that its 2007-2008 Federal Perkins Loan
Service Cancellation Worksheet Listing-Fiscal Data (worksheet) has been
posted on the eCB Web site. The worksheet explains how the reimbursement
amount was determined.

To access the worksheet following receipt of this e-mail, log in to the eCB
Web site, select the "Self-Service" link from the top navigation bar, and scroll
to the "Campus-Based Notifications for All Available Award Years" section.
Then, scroll to the "Perkins Service Cancellation Awards" bullet and select the
"2009-2010" link next to it.

Q6: How may the school use the funds?


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IFAP - Electronic Announcements                                                       Page 3 of 4


A6: The portion of the reimbursement that represents cancellations of Defense
Loans (Line 8 of the Worksheet) belongs to a school and may be used for any
purpose. The portion of the reimbursement that represents NDSL and Perkins
Loan cancellations (Line 19 of the Worksheet) must be deposited into the
school's Perkins Loan Fund and can only be used for advances to borrowers
and for other allowable uses set forth in 34 CFR 674.8(b).

Q7: What portion of the service cancellation reimbursement must the
school report on the Fiscal Operations Report for the award year ending
June 30, 2009?

A7: The portion of the reimbursement that represents principal and interest
cancelled for Defense Loans (Line 8 of the Worksheet) should not be reported
on the Fiscal Operations Report, unless a school decides to contribute it to the
Perkins Loan Fund. If the school decides to contribute it to the Perkins Loan
Fund, it should report the contribution as additional Institutional Capital
Contribution in Part III, Section A, field 29.3 of its Fiscal Operations Report for
the award year ending June 30, 2009.

Reimbursement for cancelled NDSL and Perkins loans (Line 19 of the
Worksheet) must be included in Part III, Section A, field 33 of a school's Fiscal
Operations Report for the award year ending June 30, 2009.

Q8: What must the school do if either of the amounts calculated is
negative, but the net amount is positive?

A8: A negative amount in either of the reimbursement categories indicates
that a prior-year reimbursement to a school was calculated incorrectly as a
result of erroneous information contained in a previous Fiscal Operations
Report. The amount of the overpayment has been deducted from the total
2007-2008 Federal Perkins Loan service cancellation reimbursement.

       If the overpayment occurred under the first reimbursement
       category (Defense Loans), the school must now deposit into the
       Perkins Loan Fund from school funds an amount equal to the
       overpayment, so that the Perkins Loan Fund receives the full amount of
       its NDSL/Perkins Loan payment. This deposit must be shown as an
       increase in the cash on hand to be reported in Part III, Section A, field
       1.1 and in the cumulative amount of NDSL and Perkins Loan
       reimbursements to be reported in field 33 of the Fiscal Operations
       Report for the award year ending June 30, 2009.

       If the overpayment occurred under the second reimbursement
       category (NDSL and Perkins Loan), the school may withdraw from
       the Perkins Loan Fund an amount equal to the overpayment in order
       that the school may receive the full reimbursement due on its share of


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IFAP - Electronic Announcements                                                   Page 4 of 4


       Defense Loan cancellations. This withdrawal will result in a decrease in
       the cash on hand to be reported in Part III, Section A, field 1.1 and in
       the cumulative amount of NDSL and Perkins Loan reimbursements to
       be reported in field 33 of the Fiscal Operations Report for the award
       year ending June 30, 2009.

Contact Information

If you have questions regarding the 2007-2008 Perkins Loan service
cancellation reimbursement, contact the Campus-Based Call Center at
877/801-7168. Customer service representatives are available Monday
through Friday from 8:00 A.M. until 8:00 P.M. (ET). You may also e-mail
CBFOB@ed.gov.




http://ifap.ed.gov/eannouncements/052909PerkinsCancelReimbursement0708.html         6/1/2009

								
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