Common Origination and Disbursement (COD) System Update Dan Sullivan Wendy Jerreld

Agenda Grants COD Update Direct Loans COD Update COD Spring 2012 Grant Recap COD Release 11.1 Grant Update COD Release 11.2 Grant Update COD Release 12.0 Grant & Direct Loan Update Direct Loans COD Update COD Spring 2012 Direct Loan Recap COD Release 11.1 Direct Loan Update COD Release 11.2 Direct Loan Update COD Release 12.0 Direct Loan Update COD Technical Reference Updates 2

COD Spring 2012 Grant Recap On December 23, 2011, President Obama signed into law the Consolidated Appropriations Act, 2012*.  To reduce the duration of a student’s eligibility to receive a Federal Pell Grant from 18 semesters to 12 semesters Pell Lifetime Eligibility Used (LEU) equivalent of 900% to 600% Applies to ALL Federal Pell Grant eligible students effective with the 2012-2013 award year Pell LEU information on IFAP Publications: Dear Colleague Letter GEN- 12-01, and Electronic Announcements -- February 17, 2012, April 6, 2012, June 2012, and July 2012 and in the 2012-2013 COD Technical Reference.    *Federal Pell Grant Duration of Eligibility - Public Law 112-74 amended HEA section 401(c)(5)

COD Spring 2012 Grant Recap Pell LEU Report A New Pell Lifetime Eligibility Used (LEU) School Report identifying 2012-2013 Pell Eligible CPS applicants greater than or equal to 450% LEU available April 16, 2012. Each school’s report includes only those students who listed an applicable Federal School Code on their 2012-2013 FAFSA Federal School Code field was added on June 8, 2012 Data sorted ascending by Social Security Number CSV format Generated weekly on Saturday’s in school’s Pell newsbox on COD Reporting Website Will be generated for remaining 2012-2013 award year until June 30, 2013 4

COD Spring 2012 Grant Recap Pell LEU Report For an applicant to appear on a school’s “Pell Lifetime Eligibility Used 2012-2013” report, the following are required: Submitted a 2012-2013 FAFSA Pell Eligible for Award Year 2012-2013 as determined by CPS LEU greater than or equal to 450% as determined by the COD System After the June 8, 2012 COD System LEU data upgrade, additional students will meet the selection criteria for schools’ Pell LEU report Note: If a school has no applicants for the 2012-2013 Award Year with an LEU greater than or equal to 450%, a report will not generate. 5

COD Spring 2012 Grant Recap FAFSA Applicant Outreach   On April 16, 2012, COD began performing outreach to the impacted 2012- 2013 FAFSA Pell eligible applicants. COD sent targeted email messages to all 2012-2013 FAFSA applicants who appear to be Pell Grant eligible and that are near or exceeding an LEU percentage of 600% As of May 27, 2012, COD has generated the following number of emails to 2012-2013 applicants: Email Subject # of Generated Emails Applicants that have LEUs of greater than 500% but less than 600% 168,028 Applicants that have LEUs of greater or equal to 600% 108,362

COD Spring 2012 Grant Recap FAFSA Applicant Outreach   This Pell LEU applicant outreach will continue through June 30, 2012. The emails are generated based on the following: Most accurate Pell historical data available through COD New additional students may receive these emails on June 8, 2012 and forward Weekly generation for new FAFSA filers and for filers making corrections to their FAFSA information If a student does not provide an email address on their FAFSA, they will not receive an email notification

COD Release 11.1 Grant Update LEU Modifications   With Release 11.1, the COD System will modify the following LEU functionality on July 6th, 2012: COD will return LEU in the common record response for ALL Pell recipients Common Record Response tag <LifetimeEligibilityUsed> will be returned on Pell responses Pell awards for Award Year 2010-2011 forward No new schema modifications COD Warning Edits to reflect new limits Award warning edit 177 triggers when a student’s LEU is between 450% to 600% Award warning edit 178 triggers when a student’s LEU is greater than 600%

COD Release 11.1 Grant Update LEU Modifications Two Pell LEU warning edits will be modified: # Message Updated Trigger 177 Lifetime Percentage of Eligibility Used is near the lifetime limit For Pell Awards in AY 2008-2009 forward when a student’s LEU is greater than/equal to 450% and less than/equal to 600% 178 Lifetime Percentage of Eligibility Used has exceeded the lifetime limit For Pell Awards in AY 2008-2009 forward when a student’s LEU is greater than 600% Note: There is NO HARD REJECT EDIT in COD that prevents a school from disbursing Pell to a student with an LEU of > 600%. Schools must monitor LEU closely.

Report Position for LEU COD Release 11.1 Grant Update LEU Modifications COD currently provides the LEU on the following Pell Grant SAIG preformatted reports for 2010-2011 and forward: COD Pell Grant Report Report Position for LEU Pell Grant Multiple Reporting Record (MRR) Includes POP and concurrent enrollments 451 to 457 Pell Grant Reconciliation Report 98 to 104 Pell Grant Year to Date Report 207 to 213 Note: A student must have been disbursed a Pell Grant in an award year for the student’s LEU to populate on a school’s report.

COD Release 11.1 Grant Update LEU Modifications With Release 11.1, the COD System will modify the following LEU functionality on July 6th, 2012: Display LEU on the COD Web for all Pell recipients Pell LEU notification emails for applicants no longer sent A new COD Pell LEU History page available on the COD Web to allow a school to view historical Pell Grant student data to determine how the LEU was calculated

COD Release 11.1 Grant Update LEU Modifications COD Web will be modified to provide additional Pell LEU information to the schools. Those pages include: Person Pell Information page Pell LEU History Search Pell LEU History Export capability in Excel format Note: COD has the most complete Pell historical data for a student’s Pell LEU (more complete than NSLDS). Schools should consider COD as the system of record for Pell LEU data. 12

COD Release 11.1 Grant Update LEU Modifications 13

COD Release 11.1 Grant Update LEU Modifications 14

COD Release 11.1 Grant Update LEU Modifications 15

COD Release 11.1 Grant Update LEU Modifications

COD Release 11.1 Grant Update LEU Modifications - NSLDS COD will send the new Pell LEU data for all Grant Recipients to NSLDS in early July 2012. Calculated LEU including Pell data from the beginning of the BEOG*/Pell Program sent to NSLDS as a one time data feed NSLDS records updated with the COD LEU data Using the LEU from the COD System, the NSLDS will provide LEU information to the CPS Via the pre-screening process and the post-screening process Once COD Release 11.1 is implemented (July 6, 2012), COD includes the Pell Grant LEU on all Pell Grant records sent to the NSLDS COD should be considered the system of record for Pell LEU data * Basic Educational Opportunity Grant

COD Release 11.1 Grant Update LEU Modifications - CPS   In July 2012, the Central Processing System (CPS) will begin to report Pell Grant LEU information on 2012-2013 award year ISIRs and Student Aid Reports (SARs). To alert schools and applicants who are close to or have exceeded 600% LEU To avoid making mid-cycle changes to the ISIR record layout, this information will be reported using comment codes Similar to other past mid-cycle changes

COD Release 11.2 Grant Update With Release 11.2 on November 9, 2012, the COD System will implement functionality for Experimental Sites. The experimental functionality pertaining to Pell Grants includes: COD will allow approved schools to submit and accept Pell Grant records for students with a bachelor's degree that are enrolled in vocational or career programs Only schools that have been approved for this experiment will have this capability Ability to process Pell Grants with the CPS Applicant Pell Eligible flag = No (N) when the award is submitted by a school that has an appropriate PEPS experimental site flag set Processing can be performed via batch or Web for the 2012-2013 award year and forward 19

COD Release 12.0 Grant & Direct Loan Update With Release 12.0, the COD System will implement the following functionality on March 8, 2013: New Award Year Set-Up for 2013-2014 Ability to Benefit (ATB) modifications for all applicable award years (2011-2012) and forward Reject Edit 198 if the <AbilityToBenefitCode> tag is submitted on origination with values equal to 05 “Other” and 03 “State” for all COD programs (Pell, Direct Loans and TEACH) for origination and maintenance 20

COD Release 12.0 Grant & Direct Loan Update With Release 12.0, the COD System will implement modifications to Ability to Benefit (ATB) for 2013-2014 and forward on March 8, 2013: New valid values for <AbilityToBenefitCode> tag include: 06 = High School Diploma 07 = GED <AbilityToBenefitCode> tag required field Reject Edit 994 will be triggered if the <AbilityToBenefitCode> tag is not submitted on origination for Pell, Direct Loans and TEACH awards New warning edit xxx (TBD) when <AbilityToBenefitCode> tag value submitted does not match the High School Diploma or Equivalent value from the CPS Transaction Number data submitted to COD For 2013-2014 and forward

Agenda Grants COD Update Direct Loans COD Update COD Spring 2012 Grant Recap COD Release 11.1 Grant Update COD Release 11.2 Grant Update COD Release 12.0 Grant & Direct Loan Update Direct Loans COD Update COD Spring 2012 Direct Loan Recap COD Release 11.1 Direct Loan Update COD Release 11.2 Direct Loan Update COD Release 12.0 Direct Loan Update COD Technical Reference Updates 22

COD Spring 2012 Direct Loans Recap In response to Legislative changes, Direct Loans with an Earliest Disbursement Date that is on or after July 1, 2012 must have a 0% interest rebate percentage and disbursements must include $0 in the amount. During Spring 2012, the COD System implemented the following functionality changes to prepare for the new interest rebate: Batch processing began to accept an interest rebate percentage of 0% Validation of the a loan’s EDD against the submitted interest rebate Modifications to the edits for Subsidized and Unsubsidized Loans are currently in Production Edits for PLUS Loans will not be modified until November 2012 New Interest Rebate Percentage Report generated weekly for schools 23

COD Spring 2012 Direct Loan Recap Interest Rebate Percentage Report On May 13, 2012, the COD System began to generate the Interest Rebate Percentage Report for schools to identify Direct PLUS Loans with an incorrect Interest Rebate Percent was created. Displays Direct Loan PLUS awards with an EDD before 07/01/2012 where the Interest Rebate Percent is not 1.5% Displays Direct Loan PLUS awards with an EDD on or after 07/01/2012 where the Interest Rebate Percent is not 0% Generated weekly in CSV format until November 3, 2012 Data elements: SSN, award ID, award year, award amount, EDD, and interest rebate percent Available in a school’s Direct Loan Reporting Newsbox on COD Web 24

COD Release 11.1 Direct Loan Update With Release 11.1, the COD System will implement the following functionality on July 8th, 2012: Financial Awareness Counseling provided on StudentLoans.gov End Graduate and Professional Students’ Eligibility for Direct Subsidized Loans 25

COD Release 11.1 Direct Loans Update Financial Awareness Counseling Studentloans.gov will be expanded to include a new Financial Awareness Counseling for borrowers. Optional counseling to provide students with loan education that is personalize for each user NSLDS loan history is displayed within the counseling session Schools can receive responses for a student’s completion of a session New School Options will be provided COD Web Entrance Counseling Report modified to be an inclusive Counseling Report 26

COD Release 11.1 Direct Loans Update Financial Awareness Counseling Schools will be provided options for the Financial Awareness Counseling responses. Receive responses for borrowers’ completed Financial Awareness Counseling sessions Receive responses ‘On-Demand’ or ‘Daily’ Defaulted to ‘Yes’ and ‘On-Demand’ Options will be listed in the COD Web’s School Option, StudentLoans.gov table 27

COD Release 11.1 Direct Loans Update Financial Awareness Counseling 28

COD Release 11.1 Direct Loans Update Financial Awareness Counseling The existing Entrance Counseling Report will be modified to include Financial Awareness Counseling data. Existing Direct Loan Entrance Counseling Report has been renamed the Counseling Report There can be multiple Entrance Counseling or Financial Awareness Counseling records per Borrower New Counseling Type Indicator field to differentiate the type of counseling Continue to be delivered in a school’s Direct Loan Reporting Newsbox on COD Web as a CSV format 29

COD Release 11.1 Direct Loans Update End Graduate Eligibility for Direct Subsidized Loans Due to Legislative modifications, the COD System will reject Direct Subsidized Loans made to graduate and professional students with award begin dates after June 30, 2012. If a student’s grade level is 6 or 7, COD will reject Direct Subsidized Loans with award begin dates that are on or after July 1, 2012 Reject Subsidized loan originations with existing Edit 150 Reject a maintenance on a Subsidized loan award with existing Edit 150 30

COD Release 11.2 Direct Loan Update The COD System will implement the following functionality with Release 11.2 on November 9, 2012. Final modifications for ending eligibility for upfront Direct Loan interest rebates Modify existing Reject Edit 140 to be triggered if the EDD of a Direct Loan is before 07/01/2012 and the Interest Rebate Percentage is a value other than 1.5% Modify existing Reject Edit 140 to be triggered if first disbursement date of a Direct Loan is after June 30, 2012, and the rebate percentage is greater than 0%. New Direct Loan Experimental Sites for COD Retire Warning Edit 111 31

COD Release 11.2 Direct Loans Update Direct Loan Experimental Sites With Release 11.2, the COD System will implement functionality for Experimental Sites. The experimental functionality pertaining to Direct Loans includes: Single disbursement of a one term loan for study abroad students Available for approved Domestic and Foreign schools Early disbursement date for study abroad students at Domestic schools and for students enrolled in Foreign institutions Edit 51 will allow approved schools to submit Direct Loan disbursements that are dated up to 30 days before start of classes (before the award begin date) 32

COD Release 11.2 Direct Loans Update Retire Warning Edit 111 Starting with the 2013-2014 Award Year, COD will retire Warning Edit 111. Apply to all award years For the Direct Loan and Perkins programs Edit # Message 111 First Actual Disbursement was submitted less than 5 days prior to the first disbursement date without an indication that the school printed/provided a disclosure statement 33

COD Release 12.0 Direct Loan Update With Release 12.0, the COD System will implement the following functionality on February 15th, 2013: Award Year 2013-2014 New Award Year Set-Up Direct Loan and TEACH SAS disbursement detail available On Demand 34

COD Release 12.0 Direct Loans Update SAS Disbursement Detail on Demand Starting with the 2013-2014 Award Year, COD will provide schools the option to request TEACH and Direct Loan SAS Disbursement Detail on an On Demand basis. Stay tuned for more details!! 35

Technical Reference Updates COD Technical Reference Updates Date Technical Reference Updates Spring 2012 COD System began accepting the new 3.0e schema and posted a revised Technical Reference Summer 2012 Revised Technical Reference will be posted based on Summer and Fall 2012 system modifications Fall 2012 Technical Reference to be posted including the 3.0f schema 36

We appreciate your feedback and comments. We can be reached at: Grants: Dan Sullivan Phone: (202) 377- 3114 Email: daniel.sullivan@ed.gov Direct Loans: Wendy Jerreld Phone: (202) 377- 4135 Email: wendy.jerreld@ed.gov Contact Information 37

COD School Relations Center URL: http://www.cod.ed.gov Email: CODSupport@acs-inc.com Phone - Grants: (800)474-7268 Phone - Direct Loans: (800)848-0978 Contact Information 38

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