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					                                                                                 4/10/2012




                     COMMON ORIGINATION
                             &
                       DISBURSEMENT

                                                      Award Year 2012-2013


April 17, 2012                    NCASFAA Spring Conference                  1
                                    Wrightsville Beach, NC




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




April 17, 2012                    NCASFAA Spring Conference                  2
                                    Wrightsville Beach, NC




  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 17, 2012                    NCASFAA Spring Conference                  3
                                    Wrightsville Beach, NC




                                                                                        1
                                                                             4/10/2012




  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 17, 2012                         NCASFAA Spring Conference         4
                                         Wrightsville Beach, NC




  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 17, 2012                         NCASFAA Spring Conference         5
                                         Wrightsville Beach, NC




  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 17, 2012                         NCASFAA Spring Conference         6
                                         Wrightsville Beach, NC




                                                                                    2
                                                                    4/10/2012




  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 17, 2012                      NCASFAA Spring Conference   7
                                      Wrightsville Beach, NC




  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 17, 2012                      NCASFAA Spring Conference   8
                                      Wrightsville Beach, NC




  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 17, 2012                      NCASFAA Spring Conference   9
                                      Wrightsville Beach, NC




                                                                           3
                                                                           4/10/2012




  SPECIAL DIRECT CONSOLIDATION LOAN




April 17, 2012                       NCASFAA Spring Conference        10
                                       Wrightsville Beach, NC




  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 17, 2012                       NCASFAA Spring Conference        11
                                       Wrightsville Beach, NC




  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 17, 2012                       NCASFAA Spring Conference        12
                                       Wrightsville Beach, NC




                                                                                  4
                                                                             4/10/2012




  TWO FACTOR AUTHENTICATION
         •   ALL COD users will be eventually be required
             to employ TFA
                 •   North Carolina during the month of April 2012
                 •   Tokens will be provided to each COD user via
                     month-by-month distribution
                      •   Being sent now via UPS
                      •   You’ll receive notification of shipment
                 •   Prior to use, tokens will need to be registered via
                     a link on the COD web site


April 17, 2012                              NCASFAA Spring Conference   13
                                              Wrightsville Beach, NC




  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 17, 2012                              NCASFAA Spring Conference   14
                                              Wrightsville Beach, NC




  TWO FACTOR AUTHENTICATION




             Power Button




April 17, 2012                              NCASFAA Spring Conference   15
                                              Wrightsville Beach, NC




                                                                                    5
                                                  4/10/2012




  TWO FACTOR AUTHENTICATION




April 17, 2012   NCASFAA Spring Conference   16
                   Wrightsville Beach, NC




  TWO FACTOR AUTHENTICATION




April 17, 2012   NCASFAA Spring Conference   17
                   Wrightsville Beach, NC




  COD RELEASE 11.0


  COD New Award Year Setup (NAYS)




                  Award Year 2012-2013

April 17, 2012   NCASFAA Spring Conference   18
                   Wrightsville Beach, NC




                                                         6
                                                                                      4/10/2012




  COD RELEASE 11.0

         •   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 17, 2012                           NCASFAA Spring Conference               19
                                           Wrightsville Beach, NC




  COD RELEASE 11.0

         •   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 17, 2012                           NCASFAA Spring Conference               20
                                           Wrightsville Beach, NC




  COD RELEASE 11.0
         •   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 17, 2012                           NCASFAA Spring Conference               21
                                           Wrightsville Beach, NC




                                                                                             7
                                                                                  4/10/2012




  COD RELEASE 11.0
         •   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
                           •   Batch or web submission
                           •   Returned in the Common Record Response
                           •   Common Record will reject if missing

April 17, 2012                           NCASFAA Spring Conference           22
                                           Wrightsville Beach, NC




  COD RELEASE 11.0

         •   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 17, 2012                           NCASFAA Spring Conference           23
                                           Wrightsville Beach, NC




  NEW LEGISLATION


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

April 17, 2012                           NCASFAA Spring Conference           24
                                           Wrightsville Beach, NC




                                                                                         8
                                                                                                              4/10/2012




  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, for loans with an Earliest
                                  Disbursement Date (EDD) on or after July 1, 2012
                          •       Loss of eligibility for Subsidized loans for Graduate
                                  and Professional students (Grade Level 6 & 7) on
                                  loans with a loan period starting on or after July 1,
                                  2012


April 17, 2012                                            NCASFAA Spring Conference                      25
                                                            Wrightsville Beach, NC




  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 17, 2012                                            NCASFAA Spring Conference                      26
                                                            Wrightsville Beach, NC




  COD CODE CHANGE

          •    Weekend of April 14-15, 2012
                      •   Addresses the elimination of Direct Loan upfront
                          interest rebate
                      •   Origination fees remain unchanged
                                  •   PLUS 4%
                                  •   Subsidized & Unsubsidized 1%
                      •   Does NOT address the elimination for
                          Graduate/Professional Student Subsidized
                          Loans
                                  •   COD will identify any submitted and invalid
                                      Graduate/Professional Student Subsidized Loan and
                                      notify the school

April 17, 2012                                            NCASFAA Spring Conference                      27
                                                            Wrightsville Beach, NC




                                                                                                                     9
                                                                                                       4/10/2012




  COD CODE CHANGE
         •   Weekend of April 14-15, 2012
                     •   COD edits on upfront interest rebate and amount
                         vs. earliest disbursement date
                              •   EDD on or before June 30, 2012
                                    •   Upfront Interest Rebate percentage .5% for Subsidized &
                                        Unsubsidized loans
                                    •   Upfront Interest Rebate percentage 1.5% for PLUS loans
                              •   EDD on or after July 1, 2012
                                    •   Upfront Interest Rebate percentage 0% and amount $0 on
                                        all Direct Loans
                              •   MUST submit <InterestRebatePercent> and <Interest
                                  RebateAmount> tags and both must be populated
                                  with a value of 0


April 17, 2012                                       NCASFAA Spring Conference                    28
                                                       Wrightsville Beach, NC




  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 and amount both 0%


       Accepted                                                                  Rejected
April 17, 2012                                       NCASFAA Spring Conference                    29
                                                       Wrightsville Beach, NC




  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 and amount both 0%


       Accepted                                                                  Rejected
April 17, 2012                                       NCASFAA Spring Conference                    30
                                                       Wrightsville Beach, NC




                                                                                                             10
                                                                                   4/10/2012




  COD CODE CHANGE
         •   Weekend of April 14-15, 2012…
                 •   COD will generate a weekly report identifying
                     students who have received Pell Grant funding in
                     excess of 450%
                         •   Disbursements for 2011-2012 and upcoming
                             2012-2013 included
                         •   Available via the school NewsBox in CSV format
                              •   Those with proper COD access level
                         •   WILL NOT BE AVAILABLE VIA YOUR SAIG MAILBOX
                         •   Cumulative and students could drop off if
                             submissions to COD change the LEU

April 17, 2012                             NCASFAA Spring Conference          31
                                             Wrightsville Beach, NC




  COD CODE CHANGE

         •   Weekend of April 14-15, 2012…
                 •   This COD generated weekly report will be the
                     only means to identify LEU for “at risk” students
                     until COD Release 11.1 implementation July 6-7,
                     2012
                 •   COD will then be the “system of record” for Pell
                     LEU




April 17, 2012                             NCASFAA Spring Conference          32
                                             Wrightsville Beach, NC




  COD RELEASE 11.1

             Implementation July 6-7, 2012




April 17, 2012                             NCASFAA Spring Conference          33
                                             Wrightsville Beach, NC




                                                                                         11
                                                                                     4/10/2012




  COD RELEASE 11.1
        •   Adds functionality to address loss of eligibility
            for Subsidized loans for Graduate and
            Professional students
                 •   Grade Levels 6 & 7
        •   Adds editing functionality to address Pell
            Grant duration of eligibility from 18
            semesters (900%) to 12 semesters (600%)
        •    Adds “Financial Awareness Counseling Tool”
            to StudentLoans.gov website
April 17, 2012                           NCASFAA Spring Conference              34
                                           Wrightsville Beach, NC




  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 17, 2012                           NCASFAA Spring Conference              35
                                           Wrightsville Beach, NC




  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 17, 2012                           NCASFAA Spring Conference              36
                                           Wrightsville Beach, NC




                                                                                           12
                                                                                        4/10/2012




  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 17, 2012                              NCASFAA Spring Conference              37
                                              Wrightsville Beach, NC




  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 17, 2012                              NCASFAA Spring Conference              38
                                              Wrightsville Beach, NC




  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 17, 2012                              NCASFAA Spring Conference              39
                                              Wrightsville Beach, NC




                                                                                              13
                                                                         4/10/2012




  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 17, 2012                          NCASFAA Spring Conference   40
                                          Wrightsville Beach, NC




  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 17, 2012                          NCASFAA Spring Conference   41
                                          Wrightsville Beach, NC




  FINANCIAL AWARENESS COUNSELING TOOL
        •   Domestic and foreign schools receive
            acknowledgments of completion
                      •   Default is opted in
                      •   SAIG mailbox
                      •   COD Newsbox
                      •   COD search function for results
        •   If school opts out of notification student can
            still complete process

April 17, 2012                          NCASFAA Spring Conference   42
                                          Wrightsville Beach, NC




                                                                               14
                                                                                       4/10/2012




    NAYS FOR SCHOOLS


                          Award Year 2012-2013




April 17, 2012                                                                    43




  NAYS 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 17, 2012                                 NCASFAA Spring Conference          44
                                                 Wrightsville Beach, NC




  NAYS 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 17, 2012                                 NCASFAA Spring Conference          45
                                                 Wrightsville Beach, NC




                                                                                             15
                                                                                         4/10/2012




  NAYS 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 17, 2012                                  NCASFAA Spring Conference           46
                                                  Wrightsville Beach, NC




  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 17, 2012                                  NCASFAA Spring Conference           47
                                                  Wrightsville Beach, NC




  RESOURCES
          •   COD web screens and reports
                  •   cod.ed.gov
          •   Weekly monitoring e-mail to Financial Aid
              Administrator




April 17, 2012                                  NCASFAA Spring Conference           48
                                                  Wrightsville Beach, NC




                                                                                               16
                                                                             4/10/2012




  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 17, 2012                        NCASFAA Spring Conference         49
                                        Wrightsville Beach, NC




  RESOURCES
                 •   Loan Servicing Centers for students
                      •   Great Lakes Educational Loan Services, Onc.
                      •   Mohela (NFP)
                      •   NelNet
                      •   SallieMae




April 17, 2012                         NCASFAA Spring Conference        50
                                         Wrightsville Beach, NC




  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 17, 2012                         NCASFAA Spring Conference        51
                                         Wrightsville Beach, NC




                                                                                   17
                                                                           4/10/2012




  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 17, 2012                         NCASFAA Spring Conference      52
                                         Wrightsville Beach, NC




  RESOURCES
        •   COD Technical Reference
                 •   Volume II
                      •   Implementation Guide
                      •   Message Classes
                      •   Common Record Layout
                      •   Edits
                 •   Volume VI
                      •   Reports




April 17, 2012                         NCASFAA Spring Conference      53
                                         Wrightsville Beach, NC




  RESOURCES
        •   Information for Financial Aid Professionals
            (IFAP)
                 •   Electronic Announcements
                 •   Dear Colleague Letters
                 •   Web-based training




April 17, 2012                                                        54




                                                                                 18
                                                  4/10/2012




  QUESTIONS…




April 17, 2012   NCASFAA Spring Conference   55
                   Wrightsville Beach, NC




                                                        19

				
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