COMMON ORIGINATION & DISBURSEMENT SYSTEM UPDATE

Transcription

1 COMMON ORIGINATION & DISBURSEMENT SYSTEM UPDATE Wood Mason U.S. Department of Education Federal Student Aid Atlanta, GA

2 AGENDA Heads Up! Current state COD Release 13.0 New Award Year Setup (NAYS) Schema change and 100% XML validation 150% Phase 2 Pell LEU Appeal Portal COD Release

3 Access to the COD website, i.e., UserID and FSA Password, is now managed by FSA s Participation Management (PM) System, NOT COD A new User Role List screen was added for users with multiple roles Adding or deleting users and changing access level is done by your Primary Data Point Administrator (PDPA) via the SAIG Web Enroll website COD Services and COD Web Services 3

4 At the end of January, 2014, FSA posted to the COD website report readers to help you view the Pell Grant Year-To-Date file, the Pell Grant Reconciliation Report, and the Direct Loan School Account Statement Disbursement Detail On Demand Report in a more user friendly format Provides a simplified way to import and view the files for reconciliation purposes Imports into an Excel spreadsheet Request the files in a fixed-length format No need to login access via the Today s Update link on the lower COD website menu bar Electronic Announcement (EA) dated January 28, 2014 has full details and instructions 4

5 EdExpress Software Release v3.0 that will transmit 150% subsidized loan limit data to COD will not be available until June 23, 2014 EdExpress v. 2.0 will be released April 14, 2014 and will have full functionality, but you should NOT originate Direct Loan awards in v. 2.0 If you MUST originate and disburse prior to the release of EdExpress v. 3.0 you can do so via the COD website Enter borrowers and awards individually or via the Direct Loan Origination Tool, a utility embedded in the COD website Direct Loan Tools will be released in early July, 2014, and will allow you to build a resident EdExpress database with a Direct Loan Rebuild File EdExpress will be releasing EAs with full details and additional information 5

6 Pell Grant Program 6

7 COD will reject a Pell Grant award that will exceed a student s Pell Grant Lifetime Eligibility Used (LEU) limit of 600% Disbursement level reject edit code #201 Award Years and forward Warning edits 177 & 178 have NOT been modified The Pell Grant LEU Report is now delivered via your SAIG mailbox No longer posted to your school NewsBox Comma-delimited format 7

8 A Pell Grant LEU appeal process is now in place Disputes can be initiated for a student for whom an adjustment will result in a reduction of their Pell Grant LEU to <600% School contacts COD Documentation will be requested and required If approved the COD System will adjust the award Adjustments for approved Pell LEU Disputes are detailed on the student s Pell LEU History 8

9 Direct Loan Program 9

10 The loan origination fee on loans with an earliest disbursement date (EDD) on or after December 1, 2013 Subsidized and Unsubsidized loans 1.072% PLUS Loans 4.288% DCL GEN 13-22, published October 17, 2013, has details on Sequestration changes to the Title IV award programs Future changes should occur on October 1 of each year FSA has little notice of the new fee For now you must inactivate the award by reducing it to $0, change the fee, then reactivate the award Note: Calculation and truncation rules have not changed. 10

11 On July 6, 2012, Congress enacted the Moving Ahead for Progress in the 21 st Century Act (Public Law ) Limits the length of time a borrower can be enrolled in school and be eligible for subsidized loans or, in some cases, keep the subsidy on loans already disbursed, to 150% of the published length of the program in which he or she is currently enrolled Keep in mind that length of time is the key concept and NOT LOAN AMOUNT Brings new concepts to reporting direct loan data Maximum Eligibility Period Subsidized Usage Period Remaining Eligibility Period 11

12 Accurate reporting of academic year and award start/end dates is vital to accurate calculation of subsidized loan usage periods For Award Year and forward All loan types and borrowers Schools MUST change the anticipated dates if they differ from actual attendance Loan periods should include ONLY those terms/payment periods in which the borrower receives funds Dear Colleague Letter GEN 13-13, posted May 10, 2013 has the particulars 12

13 Why? The basic calculation # days in the loan period Subsidized Usage Period # days in the academic year Example Scheduled Academic Year (SAY) Fall/Spring September 10, May 10, 2015 with a corresponding loan period 242/242 = 1.0 Years But borrower doesn t return for the Spring Term so the school MUST update the loan period to reflect ONLY the Fall Term Our calculation is now 91/242 = 0.4 years Don t forget the enrollment status is a factor too! Loan periods should include ONLY those terms/payment periods in which the borrower receives funds 13

14 Phase 1 of the modifications to enforce the 150% limitation for Direct Subsidized Loans is in place COD evaluates borrowers for the new Subsidized Usage Limit Applies (SULA) flag The flag is set if the borrower has no outstanding loan balance at the time he or she receives an actual disbursement on a qualifying Direct Loan award with an EDD after June 30, 2013 A qualifying Direct Loan award is either a Direct Subsidized or Unsubsidized loan The flag is viewable as a date entered on a new field on the COD View Person Information screen COD will also return a new Warning Edit #200 that identifies this borrower as a First-time borrower and subject to SULA 14

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16 COD generates and sends a report identifying all students that have received the SULA flag SULA borrowers appear on the report for 90 days Delivered weekly via the school NewsBox in CSV format If no borrowers meet the report generation criteria it will not be generated and posted for that week 16

17 There is a very limited set of circumstances in which a first-time borrower could lose eligibility for Direct Subsidized Loans during the award year because Only applies to a first-time borrower on or after July 1, 2013 Most academic programs are at least 1 academic year in length resulting in a Maximum Eligibility Period of 1.5 year 17

18 But it could happen if the first-time borrower Already has a Direct Subsidized Loan and Another school is intending to award a subsequent Direct Subsidized Loan for the same award year and Only if the program length is shorter than 1.5 years, 10 months, or 40 weeks EA published November 12, 2013 provides details, examples of circumstances, and worksheet to determine if your student falls into this bucket 18

19 Also, there is a temporary solution to track those firsttime borrowers in a qualifying non-credential teacher certification program for the award year Schools can submit an ad Hoc document to COD identifying the borrowers The file layout is in the COD Technical Reference COD will hold the file and process it when Phase 2 of the 150% Subsidized Limitation release is implemented this coming Spring Electronic Announcement dated October 25, 2013 for details 19

20 StudentLoans.gov 20

21 StudentLoans.gov now provides ALL Federal Student Aid electronic loan counseling tools Financial awareness integrated into each module Includes information on 150% SULA Both English and Spanish language available Undergraduate and Graduate/Professional Student PLUS entrance counseling Exit Counseling NSLDS continues to generate detailed Exit Counseling reports reflecting demographic and reference information Financial Awareness Counseling NOT a regulatory requirement but a darn good idea 21

22 A stand-alone Repayment Estimator is available on StudentLoans.gov Mobile version is available Spanish and English Authenticated and non-authenticated access Authenticated users view estimated payments under various repayment plans based on several factors including loan balances pulled from NSLDS Loan type/balance Income/family size Where you live 22

23 Phase 1 of the new Direct Loan Consolidation Application process and Promissory Note are available on StudentLoans.gov Students with no defaulted loans or not ED-assigned defaulted loans Other borrowers use existing process Borrowers can combine loans of different types held by various servicers into a single loan held by one servicer chosen by that borrower Pre-populates existing loans based on NSLDS data 23

24 COD Release 13.0 Award Year

25 COD Release 13.0 for the award year will be implemented on April 14, 2014 New Award Year Setup New Schema 4.0a 150% SULA tags and data Full XML Common Record schema validation Phase 2 of the Direct Subsidized Loan 150% Limitation Enforcement of the 150% threshold A new Pell Grant LEU Dispute Portal on the COD website Some changes to a handful of Pell Grant reports A couple changes to StudentLoans.gov 25

26 The NAYS will include the normal changes from one award year to the next Funding method will remain Advance Funded System generated files returned with message class award year designator 15 Award year designator changed to 15 elsewhere as appropriate Master Promissory Note (MPN) ID Loan ID Agreement To Serve (ATS) ID 26

27 Schema 4.0a brings new 150% data reporting Currently Academic Year and Loan Period start/end dates New for Award Block Program Length Length of your Title IV academic year Special programs Credential level Disbursement Block Payment Period Start date CIP Code Enrollment Status 27

28 The new <SpecialPrograms> tag will assist in validating the type and length of program. Value P U T A B N Description Preparatory Coursework Graduate Professional Program Preparatory Coursework Undergraduate Program Non-Credential Teacher Certification Program Selective Admission Associate Program Bachelor s Degree Completion Program Not Applicable 28

29 COD will validate the <SpecialPrograms> tag against GL on an incoming LOR Special Programs Tag Value Valid Grade Levels Prep Grad P 5 Prep Undergrad U 1, 0 Teacher Cert T 5 Sel Adm Assoc Prog A TBD Bach Deg Completion Prgm B TBD Not Applicable N No GL validation Tag Not Submitted N/A No GL validation 29

30 The <ProgramCredentialLevel> tag will assist in validating the type/length of program. Description Program Credential Level Student Level Code Undergraduate certificate or diploma (Undergraduate) Associate s degree (Undergraduate) Bachelor s degree (Undergraduate) Post Baccalaureate certificate (Undergraduate) Master s degree (Graduate) Doctoral degree (Graduate) First Professional degree (Graduate) Graduate/Professional certificate (Graduate) Non-credential programs (preparatory coursework/teacher certification) (Undergraduate) 30

31 For award year and forward, COD will perform 100% XML Common Record schema validation 100% XML Common Record schema validation based on the Common Record XML schema version that is published Enforced: 3.0d, 3.0e, and 4.0a Retiring: 2.0e, 3.0a, 3.0b, and 3.0c EA dated October 29, 2013 provides Schema 4.0a details Examples of errors provided to software vendors and IT shops that were found in common records created by their product 31

32 For award year and forward, COD will perform 100% XML Common Record schema validation A new temporary Warning Edit #211 will be triggered and returned to indicate a schema validation issue On inbound common records with XML that doesn t meet 100% schema validation but would have been accepted under prior year rules The warning edit will be discontinued at a yet-to-be determined later date A new Reject Edit #210 will be triggered and returned if the schema validation fails Returned in <DocumentID> tag 32

33 Phase 2 of the modifications to enforce a 150% limitation for Direct Subsidized Loans will include Real-time processing of SULA data New SULA report New SULA edits The COD website will be updated to include, and display, the new SULA data New SULA Request and SULA Information screens on the COD website 33

34 Phase 2 of the 150% subsidized limitation will implement real-time SULA processing SULA data will be returned per award via the common record response On origination and maintenance submissions COD will process nightly a system generated response sent to schools reflecting a student s changed SULA data and the change was NOT initiated by that school School submitting the changed data will NOT receive this system generated acknowledgement Schools cannot opt out Blast file sent upon implementation 34

35 Phase 2 COD reporting modifications will include a new SULA report The Direct Subsidized Loan Usage Limit School Report will be discontinued A new Direct Loan Subsidized Usage Change Report Displays subsidized loans when a change to a calculated SULA value occurs Maximum/Actual Subsidized Eligibility Period Actual Non-Credential Teacher Certification Subsidized Eligibility Period Anticipated Subsidized/Non-Credential Teacher Certification Subsidized Eligibility Period Posted weekly on the COD website in your NewsBox CSV format Option to opt out 35

36 New award level edits Edit Program Trigger Reject 202 DL Cannot submit more than one tag for Published Program Length (Years, Months or Weeks) Reject 203 DL Incorrect Special Program submitted Reject 206 DL Sub Remaining Subsidized Eligibility Period is less than zero for this award Warning 207 DL Sub Maintenance to this tag may have caused the Remaining Subsidized Eligibility Period to drop below zero for this award Reject 208 DL Incorrect Student Level Code submitted Reject 209 DL Invalid value submitted for Weeks Programs Academic Year Note: Maintenance Record and Change Record are synonymous 36

37 New disbursement edits Edit Program Trigger Reject 204 DL & TEACH Incorrect Program CIP Code submitted Reject 205 DL Payment Period Start Date is outside the Award Begin and End dates Reject 207 DL Sub For HCM/Reimbursement schools, sequence issues Existing Edit 994 and Edit 996 will be triggered if a value is missing or not valid 37

38 COD will display two (2) new screens Subsidized Eligibility Information Screen Accessible via a link on the Person Direct Loan Information screen Subsidized Usage Limit Applies Request Allows a user to request the most recent SULA data via a new system generated acknowledgement Batch Tab Search by SSN or Entity ID 38

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41 COD will update screens to display SULA data and fields View Person Information screen Re-designed Pop-up on Personal History events give additional information Disbursement History Information screen Displays additional SULA data Enrollment Status Program CIP Code Payment Period Start Date 41

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45 COD 13.0 Release will further streamline the Pell Grant LEU dispute process with a new Pell Grant LEU Dispute Portal on the COD Web The Portal provides the ability to create, view, update, and even upload documentation for a Pell LEU dispute Pell LEU History page will display the Pell LEU dispute status Schools will no longer have an option to register a Pell Grant LEU dispute via the COD School Relations Center 45

46 The Expected Family Contribution (EFC) field length on all COD website screens, and on the Pell Grant documents below, will be expanded from 5 to 6 bytes to conform to a CPS change The Pell Grant Reconciliation Report The Pell Grant Multiple Reporting Record (MRR) The Pell Grant Year-To-Date Record The Pell Grant Lifetime Eligibility Used (LEU) Report 46

47 Pell LEU Dispute portal will allow schools to enter dispute information for Department of Education review 47

48 On the Pell LEU Dispute portal, the required dispute documentation should be uploaded to the COD Web 48

49 After a dispute has been approved, the student s Pell LEU History page will provide details of the dispute and adjustment. 49

50 StudentLoans.gov will require existing borrowers to reconfirm their E-Correspondence preferences the first time they log on to the StudentLoans.gov Web site following the April 11-14, 2014 implementation If a borrower selects to receive e-correspondence and a valid address is on file (or the borrower provides one when completing an action via the StudentLoans.gov Web site), SLG will Send the address to his or her servicer and send updates to his or her address when they occur Send an upon loan booking 50

51 StudentLoans.gov will modify the Direct PLUS Loan process to complete an endorser addendum Endorsers will need to provide the new Direct PLUS Loan Endorser Code OR the Direct PLUS Loan ID AND the Direct PLUS Loan Request borrower s last name Borrowers will receive a PLUS Endorser Code and a unique URL via their confirmation that must be given to the person endorsing the loan If a borrow does not have an address on file the Direct PLUS Loan Endorser Code can be obtained from his or her completed Direct PLUS Loan Requests Note: The Loan Reference Number will no longer be used to complete the endorser addendum 51

52 COD Release 13.1 Award Year

53 COD Release 13.1 is scheduled for early Summer, 2014 The plan is to Enhance the procedures to change the loan origination fee Update Master Promissory Notes (MPNs) Expiration date and SULA text Add a bit more SULA information to StudentLoans.gov Specifically Exit Counseling Implement a central communication portal for uploading school specific documents and eliminate the transmission of customized attachments to schools Update the TEACH Grant guide to include the SULA information 53

54 Resources 54

55 COD School Relations Center Grants: Direct Loans: Applicant Services: Foreign Schools: URL: 55

56 Electronic Announcements 5/16/2013 Interim Final Regulations Published 6/20/2013 Phase 1 of COD System Changes Scheduled for June 28-30, /30/2013 Prorating Subsidized Usage Periods Based on Enrollment Status for the Award Year 10/25/2013 Tracking Teacher Certification Programs for the Direct Loan processing year 11/12/2013 Limited School Calculation of Remaining Eligibility 11/25/2013 Availability of new NSLDS Enrollment Report file layouts (draft) 56

57 Electronic Announcements 12/20/2013 Establishment of IFAP SULA Information Page and first set of FAQs 1/17/2014 Final Regulations published 2/27/2014 New NSLDS Enrollment Reporting File Layouts (updated) 2/28/2014 Ad hoc Reporting of Non-Credential Teacher Certification Programs 3/10/2014 Updated Worksheet for Short-Term Program Calculations 57

58 FAQs First-time borrowers Maximum Eligibility Period Subsidized Usage Period Remaining Eligibility Period Loss of Eligibility Interest Subsidy 58

59 FAQs Entrance & Exit Counseling Preparatory Coursework Teacher Certification Notifications Academic Year & Loan Period Reporting Other 59

60 SULA Resources Reporting Academic Year & Loan Period Your Point of Contact (POC) on the Federal Loan School Support Team DCL GEN May 10, 2013 Webinar recordings ifap.ed.gov/150percentdirectsubsidizedloanlimitinfo/train ing.html COD Technical Reference NSLDS Newsletters 60

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