Docstoc

Federal Update

Document Sample
Federal Update Powered By Docstoc
					                                                          Federal Update

              KASFAA Spring Conference
                    Erlanger KY
                 April 11 & 13, 2012
                                                                             Budget Control Act of 2011
                                                                                      (BCA)
                  Federal Update                                                          GEN-11-16


                         Michael C. Roberts
                       Title IV Training Officer
                         Federal Student Aid




            BCA - Subsidized Loans                                           BCA - Repayment Incentives
 Elimination - Subsidized Loans for Graduate Students
                                                                      Elimination - Direct Loan Incentives
   Effective for loans made for loan periods beginning on
                                                                          • Terminates repayment incentives (“upfront rebate”)
    or after July 1, 2012.
                                                                            to encourage on-time repayment of loans
   Subsidized Loans for loan periods beginning before
    July 1, 2012 remain unchanged.                                        • Effective for loans first disbursed on or after July
   COD will edit for compliance                                            1, 2012
 Annual limits unchanged, all unsubsidized ($20,500)                        –COD will edit for compliance
 Students still eligible for subsidized loans for                           –An actual disbursement takes precedence over
  preparatory coursework and teacher certification                             an anticipated disbursement
  programs                                                                • Still allows interest rate reduction to borrowers who
                                                                            repay electronically

  3                                                                   4




                   BCA and COD
  Edits and business rules currently in place will
   remain until implementation of COD Release
   11.1 on July 6, 2012
      • Prior to implementation of COD code in incoming               Consolidation Appropriations Act
        Direct Loan award with Budget Control Act
        legislative changes will reject                                           of 2012
      • Schools with first loan disbursements or loan
        periods starting on or after July 1 will be asked to
                                                                                          GEN-12-01
        hold off submitting loan records in COD until after
        the 11.1 release
        – New edits in place and acceptance of updated
           criteria
        – If submitted incorrectly corrections may have to
           be made later
                                                    5




                                                   For discussion purposes only


                                                                                                                                    1
                                             Federal Update

       2012-2013 Pell Grant Amounts                           Auto-Zero EFC Income Threshold

  2012-2013 Pell maximum award - $5,550                   For the 2012-2013, reduces the income
  2012-2013 Pell minimum award - $550                      threshold for an automatic zero expected
  Maximum Pell eligible EFC is 4995                        family contribution (EFC) to $23,000
   • Eliminates eligibility of a student who                 • Was scheduled to be $32,000.
     was eligible for between five and ten                 FAFSA on the Web and CPS have been
     percent of maximum award.                              updated, and both began 2012-2013
  2012-2013 payment schedules posted                       FAFSA processing using $23,000 as the
   IFAP on January 12, 2012 (P-12-01)                       auto-zero EFC threshold.




          Ability-to -Benefit (ATB)                                Ability-to -Benefit (ATB)

 Eliminates Title IV eligibility for students           Students who are or were, enrolled in a Title
  without a high school diploma (or equivalent)           IV eligible program anytime prior to July 1,
  • Exceptions for                                        2012, may continue to qualify under one of
     – Home schooled students                             the ATB alternatives –
     – Students who were enrolled in a Title IV            • Passing an independently administered,
        eligible program of study prior to July 1,           approved ATB test
        2012                                               • Successfully completing at least six credit
                                                             hours or 225 clock hours




     Pell Grant Duration of Eligibility                       Pell Grant Duration of Eligibility
                                                        Calculate the equivalency by adding together
  Reduces the duration of a student’s                   each of the annual percentages of a student’s
   eligibility to receive Pell Grant from 18             scheduled award that was actually disbursed
   semesters (900%) to 12 semesters (600%)               to the student.
  Applies to all students effective with the            • LEU – Lifetime Eligibility Used
   2012-13 award year.                                   • Once LEU reaches 600%, student no
  Calculation includes all earlier years of the            longer eligible.
   student’s receipt of Pell                             • If LEU more than 500% but less than
                                                            600%, partial eligibility for next award year.




                                  For discussion purposes only


                                                                                                             2
                                                   Federal Update

      Pell Grant Duration of Eligibility                            Pell Grant Duration of Eligibility
 Electronic Announcements posted on February 17 and
  April 6, 2012:                                               Electronic Announcements posted on
   • On April 15, COD will begin sending –                     February 17 and April 6, 2012
       – Weekly reports to schools of their 2012-2013           Beginning in July 2012 –
           applicants who have LEUs of more than 500%
           but less than 600%                                     • COD will return LEU in the common
       – Emails to students who have LEUs of more than              record response
           500% but less than 600% or more than or equal          • COD will display LEU on the COD
           to 600%.                                                 website
   • The weekly report will be cumulative in CSV format
       and located in the school’s Pell newsbox on the
                                                                  • COD will edit and return warning edits
       COD Reporting Website (not sent to SAIG)                     when LEU is near or exceeds 600%.
       – Grouped by Federal School Code




     Pell Grant Duration of Eligibility                              Grace Period Interest Subsidy

 EA February 17 and April 6, 2012 (conti.)                       Temporarily eliminates the interest
  Beginning in July 2012 –                                       subsidy on Direct Subsidized Loans
    • NSLDS will display student’s LEU                            during the six month grace period
    • CPS will use comment codes on ISIRs                        Applies to new Direct Stafford Loans for
      and SARs to flag students whose LEU is                      which the first disbursement is made on
      close to or exceeds 600%.                                   or after July 1, 2012, and before July 1,
    • New COD page for LEU History                                2014
    • COD is the system of record for LEUs




                 Interest Rates

 CCRAA reduced the interest rate on
  subsidized loans made to undergrads in
  stages from 6.8 % to the current 3.4 %.                       Program Integrity Regulations
 The reduced rates end on July 1, 2012.
 Interest rate on subsidized loans first
  disbursed on or after July 1, 2012 to
  undergraduate students will be 6.8 percent




                                       For discussion purposes only


                                                                                                              3
                                                                  Federal Update

                      Program Integrity
     • Notice of Proposed Rulemaking issued 6/18/10 to
       improve integrity of the Title IV programs
     • Final regulations October 29, 2010
         Generally effective July 1, 2011 (11-12 award year)
              – Exception
                 Verification and Updating - July 1, 2012
                 State Authorizations – possible one year extensions
                   through July 1, 2012 and July 1, 2013
Electronic Announcement dated 9/2/11 –
     – Program Integrity regulation Q & A website
     – http://www2.ed.gov/policy/highered/reg/hearulemaki
       ng/2009/integrity-qa.html
19                                                                          20




                State Authorization of
                      Institution
 • If an institution is offering postsecondary education
   through distance or correspondence education to
   students in a State in which it is not physically located
   or in which it is otherwise subject to State jurisdiction
   as determined by the State, the institution must -                                    High School Diploma
          – Meet State requirements to be legally offering
            postsecondary distance or correspondence education in
            that State
 • Examples of legally authorized and not authorized
   schools in preamble of final federal register


21                              GEN-11-11




                 High School Diploma                                                        High School Diploma
  Schools must develop and follow procedures
   to evaluate the validity of a student's high                                   FAFSA will ask student to indicate
   school diploma if the school or the Secretary                                   high school.
   has reason to believe that the diploma is not
   valid or was not obtained from an entity that
   provides secondary school education.                                                 Being on the list does not mean
  If institution identifies a student who did not                                       “approved”
   possess a valid high school diploma when
   receiving Title IV aid for an award year prior                                       Not being on the list does not mean
   to 2011-12, contact its School Participation                                          “unapproved” or “questionable”
   Team (SPT).

     23
                             GEN-12-03                                            24




                                                   For discussion purposes only


                                                                                                                               4
                                                  Federal Update

                                                                      Repeated Coursework
                                                                 • Amends definition of full-time student to
                                                                   allow repeated coursework to count toward
                                                                   enrollment status in term-based programs
                                                                   – May repeat previously passed course ONCE
                                                                      • NO repetition of a previously passed course
                                                                        due to the student failing other coursework
                                                                        in a prior term
                                                                   – May repeat failed course until it is passed
                                                                      • A course is considered passed if the overall
                                                                        school academic requirements designate it
                                                                        as passed even if for a specific program the
                                                                        grade is not considered acceptable
25                                                          26




          Repeated Coursework
      • Applies to all enrollment statuses                        Return of Title IV Funds
      • Applies to graduate and                                              &
        undergraduate students
      • A “W” grade (withdrawal) is not
                                                                   Programs Offered In
        considered a repeat (since did not                               Modules
        complete course) and therefore
        does NOT count as the one repeat
                                                                              DCL GEN-11-14
        allowed after passing a course


27                                                          28




                                                                       Credit Hour Programs
            Program Definitions
                                                                        Offered in Modules
     • New rules define a program “offered in               • Student in modular program not considered a
       modules”                                               withdrawal if
       – A course or courses in program do not span               – Provides written confirmation of intent to
         entire length of payment period or period of               attend a future module in period of enrollment
         enrollment                                                  Must be provided at the time of withdrawal
       – Doesn’t matter what “modules” are called at              – Student may change return date in writing
         the institution                                             Must provide change prior to original return
     • Student considered to be a withdrawal if                       date
       does not complete ALL days scheduled to              • Future module must begin within 45 calendar
       complete within payment period/term                    days from end of module ceased attending in a
                                                              non-standard and non-term program
29                                                          30




                                      For discussion purposes only


                                                                                                                       5
                                                                Federal Update

             Is Student A Withdrawal?                                                      R2T4 Calendar Days
 1. Did the student cease to attend before completing or fail to begin
                                                                                            Modular Programs
    attendance in a course scheduled to attend?
                                                                               • Total calendar days include all days on which the student
     If yes, go to question 2.                                                  was scheduled to attend
     If no, student not a withdrawal
                                                                                  – Days of completed courses count if course does not
 2. When ceased to attend or failed to begin attendance in a                        span length of term
    scheduled course, was the student attending other courses?
                                                                                  – Exclude scheduled breaks of at least 5 consecutive
     If yes, student not a withdrawal
                                                                                    days when student not scheduled to attend a module or
     If no, go to question 3
                                                                                    other course offered during that period
 3. Did the student confirm attendance in a later module in the
    payment/enrollment period (45 day rule, if applicable)?
                                                                               • For a withdrawn student who has made schedule changes
     If no, student is a withdrawal.                                             – Do not count days of courses officially dropped prior
                                                                                    to complete cessation of attendance
     If not a withdrawal, Pell recalculations may apply
31                                                                        32




                Return After Withdrawal
                    (“undo” R2T4)
     • Modular term-based credit hour program
       – Withdrawn student may return to same program
         prior to end of payment period/period of enrollment
          • Student eligible for any Title IV funds for which
            eligible prior to withdrawal
     • Clock hour/nonterm credit hour program
       – Withdrawn student may return to same program
         within 180 calendar days
          • Student eligible for any Title IV funds for which
            eligible prior to withdrawal
33                                                                        34




                            SAP Policy                                                               SAP Policy
  Policy must include the following:                                           Policy must include the following:
        Pace of progression required to insure student                           Describe how student’s GPA and pace of
         completes within maximum time frame                                       completion affected by incompletes,
        Measurement of student’s progress at each                                 withdrawals, repetitions, or transfers of credits
         evaluation                                                                   Transfer credits accepted toward completion of
        Calculate the pace at which the student is                                    student’s program must count as both hours
         progressing by –                                                              attempted and hours completed
           Dividing the cumulative number of hours the student has
            successfully completed by
                                                                                  Student’s SAP evaluations, whether each
           The cumulative number of hours the student has attempted
                                                                                   payment period, annually or less often than
           Not required to include remedial courses                               each payment period, must occur at the end
                                                                                   of a payment period
35                                                                        36




                                                 For discussion purposes only


                                                                                                                                             6
                                                        Federal Update

                     Monitoring SAP                                                    Monitoring SAP
                   Each Payment Period
                                                                    • If measure each payment period –
      In general, a student who is not making SAP is                   – The payment period following a payment period in
       no longer eligible for Title IV aid                                which the student did not make SAP, the school may:
                                                                            • Place the student on Financial Aid Warning; or
      For an institution that chooses to evaluate SAP
                                                                            • Place the student on Financial Aid Probation
       at the end of each payment period, a “financial
       aid warning” status may be used                              • If evaluate SAP annually or less often than each
                                                                      payment period
         Student may continue to receive Title IV aid
                                                                        When student loses eligibility for Title IV aid
          for one payment period
                                                                             May be placed on Financial Aid Probation
         No appeal necessary

37                                                                 38




                       Monitoring SAP                                               SAP Policy - Appeal
• If on Financial Aid Warning -                                     Appeals
         After 1 payment period, student must make SAP; or              Process by which student who is not meeting school’s
                                                                          SAP policy petitions for reconsideration of eligibility for
         May be placed on Probation after successful appeal              Title IV
 To be placed on Probation (ONE payment period)                         Policy must specify the conditions under which a student
         Student expected to be making SAP in next payment               may appeal
          period; or                                                        Appeal must include:
         Be successfully following an academic plan designed                   Why the student failed to make SAP; and
          to ensure student will be able to meet SAP by a                       What has changed that will allow the student to make
          specific point in time                                                 SAP at the next evaluation
            Not required to develop academic plans                         May specify how often and how many appeals are
            Can set conditions on developing plans                          allowed
39                                                                 40




                                                                                   Gainful Employment
                                                                  • Notices of Proposed Rulemaking published 6/18/10 &
                                                                    7/26/10
                                                                  • Two sets of Final Rules published on 10/29/10 with
                                                                    effective date of 7/01/11
                                                                     – Program Integrity; GE Reporting and Disclosures
                                                                     – Gainful Employment – New Programs
                                                                  • Final Federal Register - June 13, 2011
                                                                     – Performance Metrics (effective July 1, 2012)
                                                                  • For gainful employment information and updates go to:
                                                                    http://ifap.ed.gov/GainfulEmploymentInfo/
                                                                                      (GE Web Page)
 41                                                                42




                                                For discussion purposes only


                                                                                                                                        7
                                                              Federal Update

                   Gainful Employment                                                   Gainful Employment
                                                                        • GE programs at public or not-for-profit schools
      Applies to certain programs that are Title IV
                                                                          include:
       eligible because they lead to gainful
       employment in a recognized occupation                                    Nondegree Title IV eligible programs in which
                                                                                 students can enroll in as a stand-alone program
      All programs at for-profit schools except for –                           and earn a certificate or diploma at the end of the
              Program leading to baccalaureate degree in                        program
               liberal arts (offered since Jan./2009 and
               regionally accredited since Oct./2007)
                                                                                Teacher certification programs leading to a
              Preparatory coursework necessary for
                                                                                 certificate awarded by the institution
               enrollment in an eligible program regardless if
               certificate awarded
43                                                                      44




                   Gainful Employment                                                   Gainful Employment
• Programs at public or not-for-profit schools that are                 • Programs at public or not-for-profit schools that are
  NOT GE programs:                                                        NOT GE programs:
   Degree Programs - programs leading to a degree                              Certificates imbedded in a degree program that
     • MEANs at end of program of study a degree is                              are NOT stand-alone but can only be received by
       earned by the student                                                     the student if they enroll in the degree program
      A non-credential transfer program of at least two years                   (degree seeking student) – GE EA #12
       that is acceptable for full credit toward a bachelor’s                   Preparatory coursework necessary for enrollment
       degree and qualifies the student for admission into the                   in an eligible program regardless if certificate
       third year of a bachelor’s degree program
                                                                                 awarded
        • 2 year programs that are specifically designed to be
                                                                                Teacher certification programs where school
          a transfer program and that do not lead to a
          certificate or other credential awarded by the                         does NOT award a certificate (State does)
          institution
45                                                                      46




                  Gainful Employment                                                     Gainful Employment
                      Disclosures                                                            Disclosures
                                                                              Disclosures must be in promotional materials made
  Institution is required to disclose for each GE                             available to prospective students and on website
   program:                                                                   Program home page website
          Occupations                                                           Information simple and meaningful
          Costs                                                                 Contain direct link to any other webpage with general,
          On-time completion rate                                                academic or admission information about the program
          Placement rate (NCES developing rate formula)                         Information in an open format that can be retrieved,
        Median loan debt (TIV, private education loans and                       downloaded, indexed and searched
         institution finance plans)                                                 Made available to public without restrictions
                       Effective July 1, 2011                                 ED developing disclosure form
                                                                                 Online Web application
47                                                                      48




                                                For discussion purposes only


                                                                                                                                           8
                                                         Federal Update

                  Gainful Employment –                                              Annual Submission
                     New Programs                                   Institution (even if do not participate in a loan program) annually
Reporting procedures:                                                submit information on students (TIV and non-TIV) enrolled in TIV
                                                                     eligible GE programs
 Must notify ED at least 90 days before the first day of class        Report includes :
 Electronic Announcement August 3, 2011 (GE EA #16)                       Student and Program identifying information
    Step by step instruction on how to report new GE                      Amounts from private education loans and from institutional
     programs on EAPP                                                       financing plans
NPRM – 9/27/11                                                             Enrollment information
                                                                           Tuition and Fees (Optional)
    Establish new regulations to streamline the application
                                                                       Use Enrollment Reporting Process in NSLDS
     and approval process for adding new GE programs
                                                                           GE EA #22 – Updated NSLDS GE User Guide
    Would not be effective until July 1, 2013
                                                                           GE EA # 26 – Submittal Template
       Continue to adhere to current rules                                NSLDS available 9/26/11
 49                                                                50




                                                                                  Gainful Employment
              GE - Annual Submission
                                                                                 “Performance Metrics”
       Reporting deadlines:
          2006-2007 through 2010-2011 award year information       • Establish minimal measures for determining whether
            Due by November 15, 2011                                 certain postsecondary programs lead to gainful
                                                                      employment in recognized occupations, and the
         2011-2012 award year information
                                                                      conditions under which these educational programs
            Due by October 15, 2012
                                                                      remain eligible for Title IV aid
            Federal register dated March 15, 2012
                                                                    • Minimum standards include (668.7):
***Not reporting GE programs as required indicates a lack of            – program’s annual loan repayment rate is at least 35 percent
administrative capability which will be considered in
                                                                        – program’s annual loan payment is less than or equal to--
connection with applications for recertification or to add new
programs/locations, and may subject your institution to                    • 30 percent of discretionary income; or
adverse administrative actions.                                            • 12 percent of annual earnings
***must apply to ED in advance for approval to add ANY new              Webinar Recording on IFAP (3/12/12)
educational program to its federal student aid participation
 51                                                                52




                         GE Metrics
   ED calculates Repayment Rate as –
      A percentage of the Title IV loan amounts
       that a GE Program’s former students are
       repaying.
                                                                           Two Factor Authentication
   ED calculates Debt to Earnings Ratios as –
      The median educational loan annual
       repayment amount as a proportion of the
       borrowers’ average annual income.
         • Informational Rates in 2012
         • First official rates in 2013
 53




                                              For discussion purposes only


                                                                                                                                           9
                                                        Federal Update


       Two Factor Authentication                                          Two Factor Authentication
 •Two Factor Authentication, or TFA, is a new                      •Systems required to use TFA include:
 security process through which all authorized
 users will be required to enter two forms of                          •AIMS - e-Campus-Based (eCB), eCDR Appeals,
 “authentication” to access Federal Student                            FAA Access to CPS Online, National Student
 Aid systems                                                           Loan Data System (NSLDS), and Student Aid
                                                                       Internet Gateway (SAIG) Enrollment
      •The first factor is known to the user - his or her
      UserID and Password                                              •COD
      •The second factor is one that an individual has –           •Tokens will be provided to each required user via
      a token that generates a One-Time Password                   month-by-month distribution
      (OTP)                                                        •Prior to use, tokens will need to be registered
      •Electronic Announcement January 13/18
      February 8 and March 12, 2012 (South Carolina)               •If an authorized user does not yet have a token,
                                                                   login with only UserID and Password
                                           55                                                          56




       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                                        Special Direct Consolidation
      •OTP is generated by pressing the white “power”
      button on the front of the token                                        Loans
      •OTP will display for 30 seconds




                                           57




  Regular Direct Consolidation Loan                                     Special Direct Consolidation Loan
                                                                   January 17 through June 30, 2012.
 Borrowers with any federal student loan
                                                                   Only for “Split Borrowers”
   FFEL, Direct Loan, Perkins, HHS                                    Loans held by ED and FFEL lender
 Direct Consolidation Loan
                                                                          ED Held Loans –Direct Loans and ‘PUT’
   Underlying loans paid off                                              FFEL Loans
   New Repayment Period                                           Only the commercial FFEL to be consolidated
   Interest Rate – Fixed                                          Underlying loans paid off
     Weighted average rounded up to the                           Underlying loans maintain identity
       next 1.8 percent
                                                                     Same terms, conditions, dates

 59                                                                60




                                        For discussion purposes only


                                                                                                                        10
                                             Federal Update

      Special Direct Consolidation Loan
Benefits –
   Single holder/servicer/bill/payment
   Loans maintain terms and conditions                      ”Pay As You Earn”
   Reduction in interest rate of 0.25%
      Additional 0.25% reduction for EFT
                                                         Income Driven Repayment
   Loans eligible for Public Service Loan                         Plans
    Forgiveness



 61




Income Based Repayment (IBR) Plan                        Income Contingent Repayment Plan

 Statutory - FFEL and Direct Loan                      Regulatory - Direct Loan Only
 Current Law –                                         Current Regulation -
    Maximum annual payment amount is 15% of              Regulatory defined formula
     discretionary income.                                  Complex
    Remaining balance forgiven after 25 years.             Loan amount and income
 New Law (SAFRA) – Effective 2014                          Remaining balance forgiven after 25
    Maximum annual payment amount is 10% of                 years.
     discretionary income                                   Limited “take-up” rate
    Remaining balance forgiven after 20 years.
 63                                                     64




          Revised Repayment Plan
 Amend ICR regulations to –
   Accelerate 2014 IBR changes
     Reduce from 15% of discretionary income to
      10%                                                           Additional DCLs,
     Reduce forgiveness time from 25 years to               Electronic Announcements, &
      20 years
    Negotiated rulemaking required
                                                                      Reminders
        Began in January 2012
    Expected effective date – Fall 2012

 65




                                 For discussion purposes only


                                                                                                   11
                                                             Federal Update

           Dear Colleague Letters                                               Dear Colleague Letters
•    P-12-01 – 12/13 Pell Disbursement Charts
•    GEN-12-06 – NSLDS Enrollment Reporting Process                         • GEN-11-17 – Fraud in Distance Education
•    GEN-12-04 – Federal Loan Issues                                          Programs
•    GEN-12-02 – Public Service Loan Forgiveness Form                       • GEN-11-14 – New R2T4 Regulations Q & As
                                                                            • GEN-11-07 – DL Guidance
                                                                              – PLUS adverse credit, program participation, PLUS
                                                                                FAFSA filing, borrowing limitations, and additional
                                                                                unsub to dependents




67                                                                     68




       Electronic Announcements                                             Electronic Announcements
      • 3/22/12 - FSA Conference – Orlando, FL
                                                                              • 2/27/12 – FY2010 DRAFT 2-year CDR
        November 27-30, 2012
                                                                              • 2/21/12 – Calculating 2012-12 Iraq and
         – http://fsaconferences.ed.gov/
                                                                                Afghanistan Service Grant Award
      • 3/22/12 – Sign up for GE Notification                                 • 2/10/12 – Federally-Owed Loan Transfers
        Package (for Program Rates) through SAIG                                continue through April 2012
        Website by 4/27/12
                                                                              • 1/17/12 - Late or missing Audit
      • 3/22/12 – new G-845 form to use for                                     submissions
        secondary paper confirmation                                             – After 12/31/11, may be subject to:
      • 3/5/12 – FY2009 DRAFT 3-year CDR                                            Provisional certification; Posting Letter
         – Indicates rate “challenge” process                                       of Credit; Heightened Cash Monitoring
                                                                              • 9/12/11 – FY09 Official CDRs (national
                                                                                average – 8.8%)
69                                                                     70




                Negotiated Rulemaking
                    January- March 2012
                                                                                  Negotiated Rulemaking
                   (Consensus Reached)                                                    January - April 2012
     1. Student loans:
                                                                            2. Teacher Preparation and TEACH Grants
         Income-Based Repayment and Income Contingent
          Repayment                                                           Institutional reporting & State accountability –
             Accelerate SAFRA IBR changes which aren’t                        quality of teacher preparation programs
              effective until 2014 (10% payment amount of                     “High Quality” Program and Services Definitions
              discretionary income and 20 years to forgive
                                                                               associated with school eligibility to participate in
              balance) by amending ICR
                                                                               TEACH Grant
         “Naturally readable” Direct Loan regulations
         Total and permanent disability                                      Service and Repayment obligations for TEACH
         Various aspects of defaulted borrowers
         Loan Rehabilitations
         Perkins loan issues – deferments,
71                                                                     72
          enrollment reporting, loan assignments…



                                                For discussion purposes only


                                                                                                                                      12
                                                                       Federal Update

           Special Direct Consolidation Loan                                                Special Direct Consolidation Loan
  January 17 through June 30, 2012.                                             Benefits –
  Only for “Split Borrowers”                                                           Single holder/servicer/bill/payment
      Loans held by ED and FFEL lender                                                 Loans maintain terms and conditions
         ED Held Loans –Direct Loans and ‘PUT’                                         Reduction in interest rate of 0.25%
          FFEL Loans                                                                       Additional 0.25% reduction for EFT
  Only the commercial FFEL to be consolidated                                          Loans eligible for Public Service Loan Forgiveness

 Underlying loans maintain identity                                                   Special Consolidation Website -
    Same terms, conditions, dates                                                     http://studentaid.ed.gov/PORTALSWebApp/students
                                                                                         /english/specialconsolidation.jsp
       NOT A REGULAR CONSOLIDATION LOAN
                                                                                       Electronic Ann. – March 2; 26, 2012
      73                                                                              74




              Rules, Regs and Reminders                                                                   Contacts
 HEOA –Financial aid offer forms                                                 • Atlanta School Participation Team
       ED working with community to develop model award letters
                                                                                           – Main Number:       404-974-9303
       Website to gather and share information
          http://www2.ed.gov/policy/highered/guid/aid-offer/index.html
                                                                                           – Laura Hall (IIS) – 404-974-9293
• Schools can make one loan disbursement in a Single Term                                  – Cassandra Weems (IIS) 404-974-9305
  Loan Period or not adhere to the 30 day loan delay for first-
  time, first-year borrowers if:                                                  • Atlanta Training Officers
           • Loan disbursements made on or after October 1, 2011, the                      – David Bartnicki – 404-974-9312
             school in which the student is enrolled has a cohort default rate             – Michael Roberts – 404-974-9313
             of less than 15% for each of the three most recent fiscal
             years, for which data are available                                  • Email – firstname.lastname@ed.gov
• TEACH Grant is funded for 2012-2013
 75                                                                              76




                            Thank You!


                      Feedback on Training
                         Thomas Threlkeld
                   Supervisor of Training Officers
               617-289-0144; thomas.threlkeld@ed.gov




 77




                                                       For discussion purposes only


                                                                                                                                              13

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:6
posted:4/28/2012
language:English
pages:13