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					                COMMON ORIGINATION
                        &
                  DISBURSEMENT




                  SCASFAA - A Full Court Press to Excellence
April 2, 2012
                     Celebrating 45 years of SCASFAA           1
                   WOOD MASON

              U.S. DEPARTMENT OF EDUCATION
           FEDERAL LOAN SCHOOL SUPPORT TEAM
                       770.383.9662
                   WOOD.MASON@ED.GOV



                  SCASFAA - A Full Court Press to Excellence
April 2, 2012
                     Celebrating 45 years of SCASFAA           2
  AGENDA

         •      Late changes for Award Year 2011-2012
                –   Adverse credit criteria
                –   Special Loan Consolidation Program
                –   Two Factor Authentication
         •      COD for AY 2012-2013
                –   What’s here & what’s coming…
         •      Resources


April 2, 2012                    SCASFAA Annual Conference 2012   3
  ADVERSE CREDIT CRITERIA

         •      Modified as of October, 2011
         •      Charge-off and collection accounts will result
                in status of “Declined” on credit check for
                PLUS awards
                 –   Within 5 years of the credit report date
                                       AND

                 –   Unpaid balance > $0



April 2, 2012                      SCASFAA Annual Conference 2012   4
  ADVERSE CREDIT CRITERIA
         •      Cannot increase 001 PLUS Loan if in receipt
                of a subsequent adverse credit decision
         •      Parent or Graduate/Professional Student
                must successfully appeal or secure an
                endorser
                •   You CAN
                     •   Fully disburse the 001 PLUS Loan
                                          or
                     •   Reduce remaining 001 disbursements to $0 and
                         offer dependent child unsubsidized funds
                                          or
                     •   The Parent borrower can forego PLUS Loan and
                         dependent child offered unsubsidized funds
April 2, 2012                        SCASFAA Annual Conference 2012     5
  SPECIAL DIRECT CONSOLIDATION LOAN

         •      NOT a program
         •      An opportunity for borrowers…
                •   With a loan(s) in repayment, deferment, or
                    forbearance
                •   Who have an ED-held loan(s) (Direct Loan or ED-
                    held FFELP Loan) that are not delinquent
                •   Who also have a commercially-held FFELP Loan
                •   Are facing payment to multiple loan holders


April 2, 2012                     SCASFAA Annual Conference 2012      6
  SPECIAL DIRECT CONSOLIDATION LOAN

         •      Benefits include
                 •   Single servicer
                 •   One bill and one payment
         •      Interest rate of underlying loan(s) reduced
                0.25% and fixed for life of loan
                 •   Additional 0.25% reduction for EFT
         •      Loans eligible for Public Service Loan
                Forgiveness Program

April 2, 2012                      SCASFAA Annual Conference 2012   7
  SPECIAL DIRECT CONSOLIDATION LOAN
         •      NOT the standard loan consolidation
                program
                 •   Borrowers should NOT apply at
                     loanconsolidation.ed.gov
         •      Servicers will notify eligible borrowers
                 •   Sallie Mae
                 •   FedLoan Servicing (PHEAA)
                 •   NelNet
                 •   Great Lakes

April 2, 2012                     SCASFAA Annual Conference 2012   8
  SPECIAL DIRECT CONSOLIDATION LOAN
         •      Opportunity window open January 17-June
                30, 2012
         •      Electronic Announcements dated December
                28, 2011, January 13, 2012, February 14,
                2012, February 27, 2012, & March 2, 2012
         •      Borrowers should direct questions to
                •   www.studentaid.gov/specialconsolidation
                •   FSAIC at 800.4FEDAID


April 2, 2012                    SCASFAA Annual Conference 2012   9
  SPECIAL DIRECT CONSOLIDATION LOAN




April 2, 2012   SCASFAA Annual Conference 2012   10
  TWO FACTOR AUTHENTICATION
         •      Two Factor Authentication, or TFA, is a new
                security process through which all authorized
                users will be required to enter two forms of
                “authentication” to access Federal Student
                Aid systems
                •   The first factor is known to the user - his or her
                    UserID and Password
                •   The second factor is one that an individual has –
                    a One-Time Password generated by an FSA
                    provided “token”


April 2, 2012                      SCASFAA Annual Conference 2012    11
  TWO FACTOR AUTHENTICATION
         •      Implemented to comply with new
                government-wide security requirements and
                to ensure security of FSA data systems
         •      Initial COD implementation January 29, 2012
         •      Schools phased in throughout 2012
         •      TFA electronic announcements
                •   January 13, 2012
                •   February 8, 2012
                •   March 12, 2012
April 2, 2012                    SCASFAA Annual Conference 2012   12
  TWO FACTOR AUTHENTICATION
         •      ALL COD users will be eventually be required
                to employ TFA
                •   South Carolina on April 9, 2012
                •   Tokens will be provided to each COD user via
                    month-by-month distribution
                •   Prior to use, tokens will need to be registered via
                    a link on the COD web site
                •   If an authorized user does not yet have a token,
                    login with only UserID and Password

April 2, 2012                      SCASFAA Annual Conference 2012     13
  TWO FACTOR AUTHENTICATION
         •      The TFA token is a small electronic device
                that looks like a “key fob” with a “power”
                button and a display screen on its front
                 •   The OTP is generated by pressing the white
                     “power” button on the front of the token
                 •   The OTP will display for 30 seconds
                 •   A different OTP will be generated each time the
                     white “power” button is pressed
         •      Contact TFA_communications@ed.gov


April 2, 2012                      SCASFAA Annual Conference 2012      14
  TWO FACTOR AUTHENTICATION




                Power Button




April 2, 2012                  SCASFAA Annual Conference 2012   15
  TWO FACTOR AUTHENTICATION




April 2, 2012   SCASFAA Annual Conference 2012   16
  TWO FACTOR AUTHENTICATION




April 2, 2012   SCASFAA Annual Conference 2012   17
  COD RELEASE 11.0…NEW AWARD YEAR SETUP



  COD New Award Year Setup for
       Award Year 2012-2013




April 2, 2012   SCASFAA Annual Conference 2012   18
  COD RELEASE 11.0…NEW AWARD YEAR SETUP

         •      Implementation March 9-10, 2012
                •   Schema 3.0e
                     •   System generated files returned with message class
                         award year designator “13”
                     •   Common Record response files returned in schema
                         of submission
                •   Award year designator changed to “13” where
                    appropriate elsewhere
                     •   MPN ID
                     •   Loan ID
                •   Funding method remains Advance Cash

April 2, 2012                         SCASFAA Annual Conference 2012          19
  COD RELEASE 11.0…NEW AWARD YEAR SETUP

         •      Current Funding Level (CFL)
                 •   Initial CFL generated late March
                      •   For schools that had Summer term AY 2011-2012
                          activity
                 •   Second CFL generated ~ June
                      •   ~ 60% of 2011-2012 activity
                 •   Third and last CFL generated ~ November
                      •   Remaining ~40% of 2011-2012 activity
                 •   Schools with no 2011-2012 activity or new to
                     program receive $0 CFL
                      •   Contact your COD CSR or your FLSST Point of Contact
                          for assistance
April 2, 2012                          SCASFAA Annual Conference 2012           20
  COD RELEASE 11.0…NEW AWARD YEAR SETUP

         •      Allow maintenance on, or change to, a
                Pended/Declined PLUS loan
                •   Web or batch
                •   Update award, person and disbursement fields
                •   Change of personal identifiers triggers a credit
                    check
                     •   Credit Check will use the borrower person identifier
                         change field values (SSN, DOB, Last Name)
                     •   New credit check/decision if none found on COD
                         under new identifiers and 90 days old or less

April 2, 2012                         SCASFAA Annual Conference 2012            21
  COD RELEASE 11.0…NEW AWARD YEAR SETUP

         •      Addition of Enrollment School Code
                •   Included in new schema 3.0e
                •   8-digit OPE ID to identify the physical location of
                    the student
                •   Enrollment reporting, delinquency monitoring,
                    and Gainful Employment information
                •   Disbursement level reporting
                        •   Sequence #01 of each disbursement



April 2, 2012                       SCASFAA Annual Conference 2012        22
  COD RELEASE 11.0…NEW AWARD YEAR SETUP

         •      New MPN <MPNStatusCode> “E”
                •   Included in new Schema 3.0e
                •   PLUS award linked to MPN and an Endorser
                     •   Single Loan MPN
                •   Returned in COD Common Record response
                •   Award Year 2012-2013 and forward
                     •   “I” returned for Award Years 2011-2012 and prior




April 2, 2012                         SCASFAA Annual Conference 2012        23
  NEW LEGISLATION


        The Budget Control Act of 2011
                      and
        The Consolidated Appropriations
        Act of 2012

April 2, 2012      SCASFAA Annual Conference 2012   24
  NEW LEGISLATION

        •   Budget Control Act of 2011
                •   Dear Colleague Letter GEN 11-16 dated August
                    31, 2011
                •   The Budget Control Act of 2011 was signed into
                    law on August 2, 2011
                     •   Termination of Direct loan Repayment Incentives, i.e.,
                         upfront interest rebate
                     •   Loss of eligibility for Subsidized loans for Graduate
                         and Professional students




April 2, 2012                          SCASFAA Annual Conference 2012             25
  NEW LEGISLATION
        •   Consolidated Appropriations Act of 2012
                •   Dear Colleague Letter GEN 12-01 dated January
                    18, 2012
                •   The Consolidated Appropriations Act of 2012 was
                    signed into law on December 23, 2011
                     •   Reduction of duration of Pell Grant eligibility from 18
                         semesters (900%) to 12 semesters (600%)
                     •   Eliminates Federal student aid eligibility for ATB
                         students
                     •   Temporarily eliminates subsidy on Stafford Subsidized
                         loans during grace period
                         •   Loans first disbursed on or after July 1, 2012 and prior to July
                             1, 2014


April 2, 2012                              SCASFAA Annual Conference 2012                   26
  COD CODE CHANGE
         •      Weekend of April 14, 2012
         •      Addresses the elimination of Direct Loan
                upfront interest rebate
         •      COD begins to send reports related to the
                Pell Grant Lifetime Eligibility Used (LEU)
                changes
                   •   Students who have received Pell Grant
                       funding in excess of 450%
                        •   Disbursements for 2011-2012 and upcoming
                            2012-2013 included
                        •   Generated weekly and posted to the school
                            NewsBox

April 2, 2012                       SCASFAA Annual Conference 2012      27
  COD CODE CHANGE
                •   Suggest holding ALL Direct Loan submissions
                    with an EDD on or after July 1, 2012, for award
                    years 2011-2012 and 2012-2013 until after the
                    April 14, 2012 implementation
                •   Schools need not wait to transmit loans with
                    earliest disbursement dates prior to July 1, 2012




April 2, 2012                     SCASFAA Annual Conference 2012    28
  COD CODE CHANGE
         •      After implementation a school can submit
                Direct Loan Subsidized and Unsubsidized
                loan origination records (LORs) with the
                appropriate upfront interest rebate
                percentage
                •   EDD on or before June 30, 2012…rebate
                    percentage .5%
                •   EDD on or after July 1, 2012…rebate percentage
                    0%
                     •   MUST submit <InterestRebatePercent> and <Interest
                         RebateAmount> tags and both must be populated
                         with a value of 0

April 2, 2012                        SCASFAA Annual Conference 2012      29
  COD CODE CHANGE
        •   Example
                •   Undergraduate subsidized loan for award year
                    2012/2013 submitted April 18, 2012
                     •   Academic Year start/end July 5, 2012-March 31,
                         2013
                     •   Award start/end July 5, 2012-March 31, 2013
                     •   Anticipated disbursement dates (1) July 5, 2012 and
                         (2) November 30, 2012
                     •   Origination fee 1.0% and instant upfront rebate
                         percentage 0%


       Accepted                                                        Rejected
April 2, 2012                         SCASFAA Annual Conference 2012              30
  COD CODE CHANGE
         •      After implementation a school can submit
                Direct Loan PLUS LORs with the appropriate
                upfront interest rebate percentage
                •   EDD on or before June 30, 2012…rebate
                    percentage 1.5%
                •   EDD on or after July 1, 2012…rebate percentage
                    0%
                     •   MUST submit <InterestRebatePercent> and <Interest
                         RebateAmount> tags and both must be populated
                         with a value of 0




April 2, 2012                         SCASFAA Annual Conference 2012         31
  COD CODE CHANGE
        •   Example
                •   Parent PLUS loan for award year 2012/2013
                    submitted April 18, 2012
                     •   Academic Year start/end August 31, 2012-May 31,
                         2013
                     •   Award start/end August 31, 2012-May 31, 2013
                     •   Anticipated disbursement dates (1) August 31, 2012
                         and (2) January 3, 2013
                     •   Origination fee 4.0% and instant upfront rebate
                         percentage 0%


       Accepted                                                        Rejected
April 2, 2012                         SCASFAA Annual Conference 2012              32
  COD RELEASE 11.1


                Implementation July 6-7, 2012




April 2, 2012             SCASFAA Annual Conference 2012   33
  COD RELEASE 11.1
        •   Adds functionality to address loss of eligibility
            for Subsidized loans for Graduate and
            Professional students
        •   Adds editing functionality to address Pell
            Grant duration of eligibility from 18
            semesters (900%) to 12 semesters (600%)
        •    Adds “In-School” counseling functionality



April 2, 2012                SCASFAA Annual Conference 2012   34
  COD RELEASE 11.1

        •   Loss of eligibility for Subsidized loans for
            Graduate and Professional students
                •   Loans with loan period beginning on or after July
                    1, 2012
                •   Loans with loan period beginning PRIOR to July 1,
                    2012 not affected
                •   Annual and aggregate loan limits for Grad and
                    Professional students remain the same
                     •   $20,500 Unsubsidized Loan


April 2, 2012                        SCASFAA Annual Conference 2012   35
  COD RELEASE 11.1
        •   Example
                •   Grad Subsidized award for award year
                    2011/2012 submitted May 1, 2012
                     •   Academic Year start/end May 5, 2011-February 28,
                         2012
                     •   Award start/end May 5, 2011-February 28, 2012
                     •   Anticipated disbursement dates (1) May 5, 2011 and
                         (2) October 31, 2011
                     •   Origination fee 1.0% and instant upfront rebate
                         percentage .5%


       Accepted                                                        Rejected
April 2, 2012                         SCASFAA Annual Conference 2012              36
  COD RELEASE 11.1
        •   Example
                •   Grad Subsidized award for award year
                    2012/2013 submitted July 9, 2012
                     •   Academic Year start/end dates September 18, 2012-
                         May 31, 2013
                     •   Award start/end dates September 18, 2012-May 31,
                         2013
                     •   Anticipated disbursement dates (1) September 18,
                         2012 and (2) January 10, 2012
                     •   Origination fee 1.0%, instant upfront rebate
                         percentage 0%

       Accepted                                                        Rejected
April 2, 2012                         SCASFAA Annual Conference 2012              37
  COD RELEASE 11.1
        •   Functionality for reduction of Pell Grant
            duration of LEU from 900% to 600%
                •   COD returns a warning edit when a student’s LEU
                    is near or exceeds 600%
                     •   COD will return LEU in the Common Record Response
                     •   COD web site display of historical Pell Grant data for a
                         student to determine how the LEU was calculated
                     •   Additional changes to CPS and NSLDS
                          •   Electronic Announcement February 17, 2012
                •   Cessation of weekly report

April 2, 2012                            SCASFAA Annual Conference 2012         38
  FINANCIAL AWARENESS COUNSELING TOOL
        •   Financial Awareness Counseling Tool
                •   Delivered via StudentLoans.gov
        •   Implementation with COD Release 11.1
                •   July 6-7, 2012
        •   Voluntary – NOT MANDATORY
                •   Can’t deny disbursement
        •   One type of counseling for both
            Undergraduate and Graduate awards
        •   Intent is to educate borrowers about their
            current indebtedness and management of
            their student loans
April 2, 2012                        SCASFAA Annual Conference 2012   39
  FINANCIAL AWARENESS COUNSELING TOOL
        •   Login to display real time data from NSLDS
                •   Can go through without login
                     •   No personal data pulled from NSLDS
                     •   No results sent to school(s)
        •   Basic money management
                •   Encouragement to borrow only what is necessary
        •   In school and post graduate budget
            awareness

April 2, 2012                         SCASFAA Annual Conference 2012   40
  FINANCIAL AWARENESS COUNSELING TOOL
        •   Repayment calculator
                •   Repayment plan side-by-side comparison
                •   CANNOT select repayment plan via in school
                    counseling
        •   Intent is to educate borrowers about their
            current indebtedness and manage their
            student loans
        •   Access to financial literacy tool and financial
            aid process overview
April 2, 2012                     SCASFAA Annual Conference 2012   41
  FINANCIAL AWARENESS COUNSELING TOOL
        •   Domestic and foreign schools can opt in to
            receive acknowledgments of counseling
            completion by students
                     •   SAIG mailbox
                     •   COD Newsbox
                     •   COD search function for results
                •   If school opts out of notification student
                    can still complete


April 2, 2012                        SCASFAA Annual Conference 2012   42
NEW AWARD YEAR SETUP FOR SCHOOLS


                Award Year 2012-2013




April 2, 2012         SCASFAA Annual Conference 2012   43
  NEW AWARD YEAR SETUP FOR SCHOOLS
                •   School General Information screens on COD
                    website
                     •   Program relationship data
                          •   Reporting/Attended school(s)
                          •   Software/Servicer
                          •   TG mailbox number
                     •   School general data
                          •   Grantee and Payee DUNS numbers
                     •   Main campus data
                          •   Academic calendar
                          •   Single disbursement exemption

April 2, 2012                          SCASFAA Annual Conference 2012   44
  NEW AWARD YEAR SETUP FOR SCHOOLS
                •   COD website “Options” screen
                     •   Award participation options
                          •   Award start/end dates
                          •   Parent and Graduate/Professional student PLUS
                              Request participation dates
                          •   Electronic process participation
                               •   eMPN
                               •   Entrance counseling
                          •   Reports
                               •   Delivery
                               •   Format
                               •   SAS
                          •   Unique additional location participation options
April 2, 2012                             SCASFAA Annual Conference 2012         45
  NEW AWARD YEAR SETUP FOR SCHOOLS
                •   School Contacts
                     •   School Financial Aid Contact Information
                         screen
                          •   Financial Aid Administrator, President, Chief
                              Financial Officer
                               •   Accurate contact data
                               •   Update via eligcert.ed.gov
                               •   CANNOT UPDATE ON COD WEBSITE
                               •   COD email traffic to FAA
                     •   Financial Aid Program Contacts
                          •   Updated and contact data accurate
                          •   Update via the COD Website

April 2, 2012                            SCASFAA Annual Conference 2012       46
  RESOURCES
        •   COD Customer Service
                •   Ad Hoc reports via request
                •   Primary Customer Service Representative
                •   800.848.0978 (D/L)
                •   800.474.7268 (Pell)
                •   codsupport@acs-inc.com
        •   The COD Reconciliation Team
                •   Monthly reconciliation/Program Year Closeout
                •   G5
April 2, 2012                     SCASFAA Annual Conference 2012   47
  RESOURCES
        •   COD web screens and reports
                •   cod.ed.gov
        •   Weekly monitoring e-mail to Financial Aid
            Administrator




April 2, 2012                    SCASFAA Annual Conference 2012   48
  RESOURCES
                •   Loan Servicing Centers for students
                     •   http://ifap.ed.gov/ifap/helpContactInformatio
                         nDetailedList.jsp?lsc=2
                     •   Cornerstone (NFP)
                     •   Direct Loan Servicing Center (ACS)
                     •   Department of Education Student Loan
                         Servicing Center (ACS)
                     •   ESA/EDFinancial (NFP)
                     •   FedLoan Servicing (PHEAA)

April 2, 2012                        SCASFAA Annual Conference 2012   49
  RESOURCES
                •   Loan Servicing Centers for students
                     •   Great Lakes Educational Loan Services, Onc.
                     •   Mohela (NFP)
                     •   NelNet
                     •   SallieMae




April 2, 2012                       SCASFAA Annual Conference 2012     50
  RESOURCES
        •   Federal Loan School Support Team
                •   Assigned Point of Contact for your school
                •   Dlops@ed.gov
                •   Electronic Announcement dated July 14, 2011
                    with all the details




April 2, 2012                     SCASFAA Annual Conference 2012   51
  RESOURCES
        •   Blue Book
        •   FSA Student Aid Handbook
                •   Volumes 3 & 4
        •   Direct Loan School Guide
        •   34 CFR
                •   Part 668 Subpart K – Cash Management
                •   Part 685 – William D. Ford Direct Loan Program



April 2, 2012                       SCASFAA Annual Conference 2012   52
  RESOURCES
        •   COD Technical Reference
                •   Volume II
                     •   Implementation Guide
                     •   Message Classes
                     •   Common Record Layout
                     •   Edits
                •   Volume VI
                     •   Reports




April 2, 2012                        SCASFAA Annual Conference 2012   53
  RESOURCES
        •   Information for Financial Aid Professionals
            (IFAP)
                •   Electronic Announcements
                •   Dear Colleague Letters
                •   Web-based training




April 2, 2012                    SCASFAA Annual Conference 2012   54
  QUESTIONS…




April 2, 2012   SCASFAA Annual Conference 2012   55

				
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