The Effective Use of NSLDS (At Least It’s Not A Financial Aid Transcript) Presented by Katie Harrison Fall 2006 NCASFAA-SCASFAA Conference November 6-8, 2006; Asheville

2 NSLDS….What is it? N ever S imple L oan D isbursement S ummary? N ever S imple L oan D isbursement S ummary? N ational S anity L oss D atabase S erver? N ational S anity L oss D atabase S erver? N otice! S tudent L oans D eserve S crutiny? N otice! S tudent L oans D eserve S crutiny? N ever-ending S tudent L oan D iscrepancy S cenarios? N ever-ending S tudent L oan D iscrepancy S cenarios? (Actually…It’s the N ational S tudent L oan D ata S ystem)

3 NSLDS A national database of Title IV aid recipients, enrollment data, loan information, Federal Pell Grants, and overpayments on student aid disbursed under Title IV of the Higher Education Act of 1965, as amended. Data in NSLDS is provided by schools, guaranty agencies, and ED agencies. A national database of Title IV aid recipients, enrollment data, loan information, Federal Pell Grants, and overpayments on student aid disbursed under Title IV of the Higher Education Act of 1965, as amended. Data in NSLDS is provided by schools, guaranty agencies, and ED agencies.

4 What can you do with it? View student enrollment history View student enrollment history Obtain Pell Grant disbursement information Obtain Pell Grant disbursement information Report and view grant overpayments Report and view grant overpayments Mid-year transfer monitoring Mid-year transfer monitoring Determine remaining Stafford and Perkins loan eligibility by reviewing loan history Determine remaining Stafford and Perkins loan eligibility by reviewing loan history Establish contacts for your institution and obtain contact information for other schools, lenders, and agencies Establish contacts for your institution and obtain contact information for other schools, lenders, and agencies Run pre-set reports Run pre-set reports View current and prior Cohort Default Rates View current and prior Cohort Default Rates View upcoming and past data provider schedule information View upcoming and past data provider schedule information

5 Enrollment History Schools are required to confirm and report the enrollment status of students who receive Federal student loans. This process is called Enrollment Reporting (formerly the Student Status Confirmation Report). This enrollment information is merged into the NSLDS database and provided to guarantors, lenders, and servicers of student loans. Federal regulations governing Title IV student aid programs require institutions, lenders, guarantors, and the Direct Loan servicer to monitor and update the enrollment status of students who receive Federal student loans. Completion of Enrollment Reporting satisfies the regulatory requirements for schools only [34 CFR (c)].

6 Enrollment History Many schools utilize the National Student Clearinghouse to satisfy Enrollment Reporting requirements. For institutions that do not report through the Clearinghouse, the Enrollment Reporting roster file is available in the designated SAIG mailbox monthly. Schools may set up their schedule using the Enrollment Reporting Schedule section of the NSLDS web site. Responses to the Enrollment Reporting roster file are due within 30 days of creation of the file. When the Enrollment Reporting roster is updated, the school returns it online or as a submittal file.

7 Enrollment History Most recent enrollment status only

8 Enrollment History Shows all enrollment statuses reported by each school

9 Enrollment History Shows enrollment sorted by time period

10 Pell Grant Disbursements Allows schools to verify whether a student has received a Pell grant at another institution Allows schools to verify whether a student has received a Pell grant at another institution Shows percentage of Pell grant award received at prior school(s) Shows percentage of Pell grant award received at prior school(s) Indicates ISIR transaction number and EFC at which Pell award was disbursed Indicates ISIR transaction number and EFC at which Pell award was disbursed

11 Grant Overpayments View grant overpayments reported by schools or the Department of Education View grant overpayments reported by schools or the Department of Education Confirm satisfactory repayments of overpayments; allows aid administrators to verify Title IV eligibility Confirm satisfactory repayments of overpayments; allows aid administrators to verify Title IV eligibility Report overpayments caused by student error Report overpayments caused by student error

12 Transfer Monitoring and Alerts Replaced Financial Aid Transcript Replaced Financial Aid Transcript (Effective July 1, 2001) Schools must inform NSLDS Schools must inform NSLDS of mid-year transfer students Schools may rely on NSLDS information Schools may rely on NSLDS information when determining transfer student eligibility

13 Transfer Monitoring and Alerts Using financial aid history data from NSLDS, you can determine: Whether the student is in default or owes an overpayment on a federal loan or grant Whether the student is in default or owes an overpayment on a federal loan or grant The student's balance on all loans The student's balance on all loans The student's scheduled Federal Pell Grant, ACG and/or National SMART Grant (forthcoming) amount already disbursed for the current award year The student's scheduled Federal Pell Grant, ACG and/or National SMART Grant (forthcoming) amount already disbursed for the current award year The amount of, and period of enrollment for, all loans for the current award year The amount of, and period of enrollment for, all loans for the current award year

14 Transfer Monitoring and Alerts School Responsibilities: When a student transfers from one school to another, the new school must obtain a financial aid history for the student before it disburses or delivers federal financial aid funds. When a student transfers from one school to another, the new school must obtain a financial aid history for the student before it disburses or delivers federal financial aid funds. For students transferring in at the beginning of an award year, schools may use the NSLDS information contained on the student's ISIR or SAR, or they may access the information directly from the NSLDS database. For students transferring in at the beginning of an award year, schools may use the NSLDS information contained on the student's ISIR or SAR, or they may access the information directly from the NSLDS database.

15 Transfer Monitoring and Alerts School Responsibilities: The school must identify students who are transferring to their school mid-year by submitting a list of transfer students to NSLDS. This requires the school to set up a School Transfer Profile on the NSLDS website. The school must identify students who are transferring to their school mid-year by submitting a list of transfer students to NSLDS. This requires the school to set up a School Transfer Profile on the NSLDS website. Each time a school receives an alert for a student, it must review the updated information and determine whether it affects the student's eligibility. Each time a school receives an alert for a student, it must review the updated information and determine whether it affects the student's eligibility.

16 Transfer Monitoring and Alerts The Role of NSLDS: NSLDS monitors students on a school's Inform list for changes from other schools in the student's financial aid history, and alerts the school when: A new loan is originated A new loan is originated A new disbursement is made on a loan, or a loan disbursement is cancelled A new disbursement is made on a loan, or a loan disbursement is cancelled A Federal Pell Grant, ACG or National SMART Grant (forthcoming) is awarded or reduced A Federal Pell Grant, ACG or National SMART Grant (forthcoming) is awarded or reduced A new disbursement is made or a disbursement is cancelled on a Federal Pell Grant, ACG or National SMART Grant (forthcoming) A new disbursement is made or a disbursement is cancelled on a Federal Pell Grant, ACG or National SMART Grant (forthcoming)

17 Transfer Monitoring and Alerts The Role of NSLDS: When NSLDS creates an alert for a student, it also sends an notice to the school's designated contact person. When NSLDS creates an alert for a student, it also sends an notice to the school's designated contact person.

18 Loan Information, Disbursements, and Determining Eligibility NSLDS prescreens applicants for Title IV Aid eligibility to identify applicants who are in default on an existing Title IV loan, who owe overpayments on Pell grants, FSEOGs, or Perkins loans, or who may have already borrowed the maximum amount allowed under individual or cumulative loan limits. The results of the NSLDS match are provided on the NSLDS Financial Aid History section of the SAR and in the FAA Information Section of the ISIR.

19 Loan Information, Disbursements, and Determining Eligibility NSLDS scans or "post screens" its database weekly to find cases in which a student's eligibility status has changed since the time of their original aid application. NSLDS scans or "post screens" its database weekly to find cases in which a student's eligibility status has changed since the time of their original aid application. If NSLDS finds a change that affects eligibility, it notifies the CPS. The CPS sends an updated ISIR with updated NSLDS data and transaction number to the school. If NSLDS finds a change that affects eligibility, it notifies the CPS. The CPS sends an updated ISIR with updated NSLDS data and transaction number to the school.

20 Loan Information, Disbursements, and Determining Eligibility NSLDS Post Screening Codes 01Default added 02Overpayment added 03Default resolved 04Overpayment resolved 05MPN Status Change (Direct Loans) 06Loan discharged 07Loan out of discharged status 08Closed school 09Exceeds subsidized loan limit 10Exceeds combined loan limit 11No longer exceeds subsidized loan limit 12No longer exceeds combined loan limit 13Change in type of discharged loan 14Loan entered active bankruptcy 15PLUS MPN status change 16Grad/Professional PLUS loan status change (NEW) 99Other (NSLDS requests for individual reprocessing, NSLDS error reprocessing, etc.)

21 Loan Information, Disbursements, and Determining Eligibility So Many Loan Codes, So Little Time! What do they mean?

22 Loan Information, Disbursements, and Determining Eligibility ProgramCodeDescription FFELCL FFEL Consolidation FFELGB FFEL PLUS Grad/Prof FFELPL FFEL Parent PLUS FFELSF FFEL Stafford Subsidized FFELSL Supplemental Loan (SLS) FFELSU FFEL Stafford Unsubsidized FDLPD1 Direct Stafford Subsidized FDLPD2 Direct Stafford Unsubsidized FDLPD3 Direct PLUS Grad/Prof FDLPD4 Direct Parent PLUS

23 Loan Information, Disbursements, and Determining Eligibility ProgramCodeDescription FDLPD5 Direct Consolidation Unsub FDLPD6 Direct Loan Subsidized FDLPD7 Direct PLUS Consolidation FISLFI Federally Insured Loan PerkinsDU National Defense Loan PerkinsEU Perkins Expanded Lending PerkinsIC Income Contingent (ICL) PerkinsNUNDSL PerkinsPU Federal Perkins

24 Loan Information, Disbursements, and Determining Eligibility Loan Code Status Eligible for Title IV? AL Abandoned Loan Yes BC Discharged Bankruptcy Claim No Prior Default Yes BK Active Bankruptcy claim No Prior Default Yes CACanceledYes CS Closed School Discharge Yes DADeferredYes DB Defaulted, Then Bankrupt (Active); Chapter 13 No (Refer to GEN 95-40) DC Defaulted, Compromise Yes DD Defaulted, Then Death No

25 Loan Information, Disbursements, and Determining Eligibility Loan Code Status Eligible for Title IV? DEDeathNo DF Defaulted, Unresolved No DIDisabilityYes DK Defaulted, Then Bankrupt (Discharged); Chapter 13 Yes (Defaulted loan has been discharged) DL Defaulted, In Litigation No DN Defaulted, Then Paid in Full Through Consolidation Loan Yes DO Defaulted, Then Bankrupt (Active); Chapters 7, 11, 12 No (Refer to GEN 95-40) DP Defaulted, Then Paid in Full Yes

26 Loan Information, Disbursements, and Determining Eligibility Loan Code Status Eligible for Title IV? DR Defaulted Loan Included in Roll-up Loan Yes DS Defaulted, Then Disabled Yes DT Defaulted, Collection Terminated No DU Default, Unresolved No DW Defaulted, Write-Off No DX Defaulted, Satisfactory Arrangements & Payments Yes (assuming student complies with repayment plan or gets forbearance) DZ Defaulted, Made Six Consecutive Payments, Then Missed a Payment No (Loan reverts to active default status)

27 Loan Information, Disbursements, and Determining Eligibility Loan Code Status Eligible for Title IV? FBForbearanceYes FC False Certification Discharge Yes IA Loan Originated Yes ID In School or Grace Period Yes IG In Grace Period Yes IM Military Grace Period Yes IP Post-Deferment Grace Period (Perkins Only) Yes MO Military Deferment Yes

28 Loan Information, Disbursements, and Determining Eligibility Loan Code Status Eligible for Title IV? OD Defaulted, Then Bankrupt (Discharged); Chapters 7, 11, 12 Yes (Defaulted loan has been discharged) PC Paid in Full (Consolidation) Yes PF Paid in Full Yes PM Presumed Paid in Full Yes PN Non-defaulted, Paid in Full Through Consolidation Yes RFRefinancedYes RP In Repayment Yes UA Temporarily Uninsured, No Default Claim Requested Yes

29 Loan Information, Disbursements, and Determining Eligibility Loan Code Status Eligible for Title IV? UB Temporarily Uninsured, Default Claim Denied Yes (Temporarily uninsured loans are not considered federal loans) UC FFEL: Permanently Uninsured, Non-defaulted Yes UC Perkins: Non-defaulted Loan Purchased by School Yes UD FFEL: Permanently Uninsured, Defaulted Yes (Loan is no longer federal) UD Perkins: Defaulted Loan Purchased by School Yes (Loan is no longer federal) UI Uninsured / Unreinsured Yes XD Defaulted, Satisfactory Arrangements & Payments Yes (assuming student complies with repayment plan or gets forbearance)

30 Loan Information, Disbursements, and Determining Eligibility Definition of Common NSLDS Terms: Guaranteed Amount (FFEL): Original loan amount, before any cancellations/refunds. Guaranteed Amount (FFEL): Original loan amount, before any cancellations/refunds. Approved Amount (Direct/Perkins): Original loan amount, before any cancellations/refunds. Approved Amount (Direct/Perkins): Original loan amount, before any cancellations/refunds. Disbursed Amount: Cumulative net amount of the loan actually disbursed to the borrower. Disbursed Amount: Cumulative net amount of the loan actually disbursed to the borrower.

31 Loan Information, Disbursements, and Determining Eligibility Definition of Common NSLDS Terms: Aggregate Outstanding Principal Balance (Agg OPB): The loan amount that counts against the student’s overall loan limits. How this value is calculated depends on the loan type and when the loan was issued. Aggregate Outstanding Principal Balance (Agg OPB): The loan amount that counts against the student’s overall loan limits. How this value is calculated depends on the loan type and when the loan was issued. Outstanding Principal Balance (OPB): The cumulative dollar amount due on a loan. This amount may include capitalized interest (indicated by a red “C” to the left of the OPB label). Outstanding Principal Balance (OPB): The cumulative dollar amount due on a loan. This amount may include capitalized interest (indicated by a red “C” to the left of the OPB label).

32 Loan Information, Disbursements, and Determining Eligibility Definition of Common NSLDS Terms: Academic Level (Acad Lv): Student’s academic level at the time the loan was provided. Academic levels are defined as follows: Academic Level (Acad Lv): Student’s academic level at the time the loan was provided. Academic levels are defined as follows: UndergraduateGraduate 1 Freshman/First YearA First Year Grad/Prof 2 Sophomore/Second YearB Second Year Grad/Prof 3 Junior/Third YearC Third Year Grad/Prof 4 Senior/Fifth YearD Beyond Third Year 5 Fifth Year/OtherG Year of Study Unknown N Not available (only used if date of first disbursement is prior to July 23, 1992)

33 Loan Information, Disbursements, and Determining Eligibility Useful Tips for Determining Loan History & Eligibility Sorting Options Sorting Options

34 Loan Information, Disbursements, and Determining Eligibility Filtering (Display) Options Filtering (Display) Options

35 Loan Information, Disbursements, and Determining Eligibility Up to 20 loans can be displayed per page. If a borrower has more than 20 loan entries on NSLDS, click the Next Group arrow icon ( ) Up to 20 loans can be displayed per page. If a borrower has more than 20 loan entries on NSLDS, click the Next Group arrow icon ( ) to view the next set of loans. To obtain detailed information (including refunds and disbursement cancellations) for each loan, click the number to the left of the loan header or the Loan Detail button to the right of the header. To obtain detailed information (including refunds and disbursement cancellations) for each loan, click the number to the left of the loan header or the Loan Detail button to the right of the header.

36 Loan Information, Disbursements, and Determining Eligibility When reviewing underlying loans making up a consolidation, use the disbursed amount of loans that have been consolidated. When reviewing underlying loans making up a consolidation, use the disbursed amount of loans that have been consolidated. ◊ It is good practice to check the loan detail page on all underlying loans, in $1468order to take any refunds or cancellations $1468order to take any refunds or cancellations - $614into consideration. - $614into consideration. $854 $854

37 Loan Information, Disbursements, and Determining Eligibility When loans have not been consolidated, the Aggregate OPB amount is used to calculate loan eligibility. When loans have not been consolidated, the Aggregate OPB amount is used to calculate loan eligibility. Review any pending disbursements to determine their impact, if any, on eligibility. Review any pending disbursements to determine their impact, if any, on eligibility.

38 Loan Information, Disbursements, and Determining Eligibility Review prior loans to determine whether borrower received additional unsubsidized Stafford loans as a dependent student (usually due to a parent PLUS denial). If this is the case, the additional unsub loans do not count toward the student’s base loan limit and can be excluded from the aggregate total. Review prior loans to determine whether borrower received additional unsubsidized Stafford loans as a dependent student (usually due to a parent PLUS denial). If this is the case, the additional unsub loans do not count toward the student’s base loan limit and can be excluded from the aggregate total. Some students borrow loans as undergraduates and graduates, then return to school as an undergraduate. In this case, the student is subject to undergraduate aggregate limits, but the graduate level loan amounts can be excluded when determining eligibility. Some students borrow loans as undergraduates and graduates, then return to school as an undergraduate. In this case, the student is subject to undergraduate aggregate limits, but the graduate level loan amounts can be excluded when determining eligibility.

39 Loan Information, Disbursements, and Determining Eligibility Case Study Student A: School receives an ISIR with NSLDS post screen 9 (exceeds sub limits). The student has several consolidation loans listed, and has received sub and unsub funds at various institutions. Review NSLDS to determine student’s current eligibility. Student A: School receives an ISIR with NSLDS post screen 9 (exceeds sub limits). The student has several consolidation loans listed, and has received sub and unsub funds at various institutions. Review NSLDS to determine student’s current eligibility.

40 Loan Information, Disbursements, and Determining Eligibility Case Study Student B: NSLDS prescreens student as being over combined loan limits as a dependent undergraduate. Student has received unsubsidized loans as a result of PLUS denials in previous years. Prior to certifying a new loan, review NSLDS to determine current year eligibility. Student B: NSLDS prescreens student as being over combined loan limits as a dependent undergraduate. Student has received unsubsidized loans as a result of PLUS denials in previous years. Prior to certifying a new loan, review NSLDS to determine current year eligibility.

41 Other NSLDS Functions Run reports (available in SAIG mailbox) Run reports (available in SAIG mailbox) Establish contacts for your school, and view other school’s contact information Establish contacts for your school, and view other school’s contact information View your institution’s current and prior Cohort Default Rates View your institution’s current and prior Cohort Default Rates View your institution’s upcoming and past data provider schedule information View your institution’s upcoming and past data provider schedule information

42 Recent and Upcoming NSLDS Updates Graduate Plus loan reporting Graduate Plus loan reporting -FFEL loan type code is GB -Direct loan type code is D3 Currently, NSLDS may convert these loan types to “PL” (FFEL) and “D4” (Direct) in order to exchange data elements with trading partners who are not equipped to accept the updated loan codes. Such loans can be identified by a graduate academic level (A,B,C,D or G). After January 1, 2007, all Grad/Professional PLUS loans will be reported as they are displayed with the updated loan type codes. New post-screen 16 indicates a change in Grad/Professional PLUS loan status New post-screen 16 indicates a change in Grad/Professional PLUS loan status For , there is a new loan type code of “F” for fraud. This identifies students who have fraudulently obtained Title IV funds (includes grants and loans). These students must repay any fraudulently disbursed Title IV aid in full before regaining eligibility. There is no provision for satisfactory repayment arrangements. For , there is a new loan type code of “F” for fraud. This identifies students who have fraudulently obtained Title IV funds (includes grants and loans). These students must repay any fraudulently disbursed Title IV aid in full before regaining eligibility. There is no provision for satisfactory repayment arrangements.

43 Recent and Upcoming NSLDS Updates Ability to report ACG and SMART grant overpayments (effective July 1, 2006) Ability to report ACG and SMART grant overpayments (effective July 1, 2006) ACG and SMART grant disbursement information (to be implemented after Phase II NSLDS update) ACG and SMART grant disbursement information (to be implemented after Phase II NSLDS update) New military deferment type of MO will identify loans eligible for Active Duty Military Deferment, as defined by HERA guidelines New military deferment type of MO will identify loans eligible for Active Duty Military Deferment, as defined by HERA guidelines

44 Resources Pell Grant Disbursements and Payments: IFAP Student Aid Handbook , Volume 3, Chapter 3 IFAP Student Aid Handbook , Volume 3, Chapter 3 Grant Overpayments: GEN 00-18, GEN GEN 00-18, GEN IFAP Student Aid Handbook , Volume 5, Chapters 1 (general overpayments) and 2 IFAP Student Aid Handbook , Volume 5, Chapters 1 (general overpayments) and 2 (overpayment due to Title IV return) Transfer Monitoring: GEN GEN IFAP Student Aid Handbook , Volume 1, Chapter 3; pp 44 – 66 IFAP Student Aid Handbook , Volume 1, Chapter 3; pp 44 – 66

45 Resources Determining Loan Eligibility: IFAP Student Aid Handbook , Volume 1, Chapter 3 IFAP Student Aid Handbook , Volume 1, Chapter 3 IFAP Student Aid Handbook , Volume 3, Chapter 4 IFAP Student Aid Handbook , Volume 3, Chapter 4 NSLDS Newsletter 7 (How NSLDS calculates eligibility when a PLUS loan denial is present) NSLDS Newsletter 7 (How NSLDS calculates eligibility when a PLUS loan denial is present) NSLDS Newsletter 8 (How NSLDS calculates aggregate loan totals when graduate and NSLDS Newsletter 8 (How NSLDS calculates aggregate loan totals when graduate and undergraduate loans are present) Common Manual Chapter 5, Section 5.1 (General Borrower Eligibility) Common Manual Chapter 5, Section 5.1 (General Borrower Eligibility) Common Manual Chapter 6, Section 6.11 (Loan Limits) Common Manual Chapter 6, Section 6.11 (Loan Limits) Contacting NSLDS: Phone: (800) Phone: (800) Monday-Friday 8 a.m. to 9 p.m. EST Monday-Friday 8 a.m. to 9 p.m. EST (Excluding Federal holidays) (Excluding Federal holidays)

46 NSLDS N ever N ever S top S top L aughing L aughing D espite D espite S etbacks S etbacks

47 Questions