COD System and StudentLoans.gov Update: Pell Grant, Direct Loans, and TEACH Marie Fitzpatrick Wood Mason U.S. Department of Education 1

Agenda Grants COD Update 2012 Pell LEU Recap 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 Recap COD Release Direct Loan Update COD Release 11.2 Direct Loan Update COD Release 12.0 Direct Loan Update Reminders 2

On December 23, 2011, President Obama signed into law the Consolidated Appropriations Act, 2012.* Reduces the duration of a student’s Pell Grant eligibility from 18 semesters to 12 semesters -Pell Lifetime Eligibility Used(LEU) equivalent of 900% to 600% Applies to ALL Pell-eligible students effective with the award year Numerous Pell LEU communications *Federal Pell Grant Duration of Eligibility - Public Law amended HEA section 401(c)(5) CAA 2012 Pell Grant Changes Recap 3

On April 16, 2012, COD began performing outreach to impacted FAFSA Pell- eligible applicants. Targeted messages sent to FAFSA Pell-eligible applicants near, or exceeding, an LEU percentage of 600% Pell LEU applicant outreach continued through June 30, Spring 2012 Pell Grant LEU Recap

The Pell LEU Report identifies Pell- eligible CPS applicants with LEUs greater than or equal to 450%. Each school’s report includes students who listed a Federal School Code on their FAFSA Generated weekly in school’s Pell newsbox on COD Reporting website CSV format so it can be easily imported and sorted Generated for award year until 6/30/13 5 COD Pell LEU Report

For an applicant to appear on a school’s “Pell Lifetime Eligibility Used ” report, the following are required: Submitted a FAFSA Pell-eligible for the award year as determined by CPS LEU greater than or equal to 450% as determined by the COD System 6 COD Pell LEU Report

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With Release 11.1, on July 7, 2012, the COD System modified the following LEU functionality: COD returns the Pell LEU in the common record response for ALL Pell recipients -Common Record Response tag returned on Pell Grant responses -Pell Grant awards for Award Year forward Modified current COD Warning Edits to reflect new limits 8 COD Release 11.1 Pell LEU Recap

Two Pell LEU warning edits were modified: #MessageUpdated Trigger 177Lifetime Percentage of Eligibility Used is near the lifetime limit For Pell Awards in AY forward when a student’s LEU is greater than/equal to 450% and less than/equal to 600% 178Lifetime Percentage of Eligibility Used has exceeded the lifetime limit For Pell Awards in AY 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 Grants to a student with an LEU of > 600%. 9 COD Release 11.1 Pell LEU Recap

COD also provides the LEU on the following Pell Grant SAIG preformatted reports for and forward: Pell Grant Multiple Reporting Record (MRR) Pell Grant Reconciliation Report Pell Grant Year to Date Report 10 COD Release 11.1 Pell LEU Recap

With Release 11.1, the COD website was modified to provide additional Pell Grant LEU information: COD displays LEU on the COD Web for all Pell Grant recipients A new COD Pell LEU History page available on the COD Web site allows schools to view historical Pell Grant student data to determine how the LEU was calculated 11 COD Release 11.1 Pell LEU Web Changes

COD Web 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 CSV format Note: COD has the most reliable Pell historical data for a student’s Pell LEU. Schools should consider COD as the system of record for Pell LEU data. 12 COD Release 11.1 Pell LEU Web Changes

13 COD Release 11.1 Pell LEU Web Changes

14 COD Release 11.1 Pell LEU Web Changes

15 COD 11.1 Pell Grant LEU Web Changes

16 From the Pell LEU History Page users can export data to XLS format COD 11.1 Pell Grant LEU Web Changes

COD calculates Pell LEU for all Pell recipients and sends it to NSLDS. NSLDS records updated with the COD LEU data Displays LEU on the Professional Access-Grant Page, Student Access Grant Section, and on Transfer Monitoring/FA History files NSLDS will provide LEU information to the CPS via the pre-screening and post-screening process COD should be considered the system of record for Pell LEU data 17 Pell LEU Update - NSLDS

Addition of a new Pell Grant Lifetime Limit Flag in pre-screening match between NSLDS and the CPS: E = Limit met or exceeded (= or > 600%) C = Close to limit (> 500% but < 600%) H – High % warning (= or > 450% but < or = 500%) N = No problem 18 Pell LEU Update - NSLDS/CPS

New NSLDS post-screening Reason Codes for match between NSLDS and CPS: Reason CodeDescription 20Pell Grant eligible and met/exceeded Pell LEU limit 21No longer meeting/exceeding Pell Grant LEU limit 22Pell Grant eligible and close to Pell LEU limit 23No longer close to Pell Grant LEU limit 19 Pell LEU Update - NSLDS/CPS

In July 2012, the CPS began reporting Pell LEU information for award year on ISIRs and SARs. Pell Information reported using comment codes -To alert schools and applicants who are close to or have exceeded 600% LEU -Avoided mid-cycle changes to the ISIR record layout -Refer to the reissued SAR/ISIR Guide Pell Grant LEU limit flag WILL NOT be added to the ISIR until Pell LEU Update - NSLDS/CPS

COD Release 11.2 on November 9, 2012 will implement functionality for Experimental Sites pertaining to Pell Grants which includes: COD will allow approved schools to submit Pell Grant records for students with a bachelor's degree enrolled in vocational/career programs -Only schools that have been approved for this experiment will have this capability -Processing via batch or web starting with COD Release 11.2 Grant Update 21

The COD Release 12.0 on March 8, 2013 will modify the Ability to Benefit (ATB) tag. Impacts all COD Programs: Pell, DL, and TEACH Applies to all applicable award years: and forward The tag will be required Changes to the valid values COD Release 12.0 Grant & DL Update 22

tag modifications for Release 12.0 include new and modified edits: 23 COD Release 12.0 Grant & DL Update New TriggerEdit If is NOT submitted Reject Edit 994 Values of 03 “State” or 05 “Other” is submittedReject Edit 198 If value submitted to COD does not match “H.S. Diploma or Equivalent” value from CPS New Warning Edit TBD

Release 12.0 will also provide new valid values for the tag: 24 COD Release 12.0 Grant & DL Update Valid ValueDescription 06High School Diploma 07GED

Agenda Grants COD Update 2012 Pell LEU Recap 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 Recap COD Release Direct Loan Update COD Release 11.2 Direct Loan Update COD Release 12.0 Direct Loan Update Reminders 25

26 During Spring 2012, the COD System implemented the following functionality to address legislative changes to repayment incentives, i.e.: Edits in place for validation of a Direct Subsidized or Unsubsidized Loan Earliest Disbursement Date (EDD) against the submitted interest rebate Loan Origination Fee remains 1.0% COD Spring 2012 Direct Loans Recap

27 During Spring 2012, the COD System implemented functionality to accept upfront interest rebate values of 0% or 1.5% on Parent and Graduate/Professional Student Direct PLUS Loan EDD on or after July 1, 2012 upfront interest rebate percentage 0% EDD on or before June 30, 2012 upfront interest rebate percentage 1.5% NO CHANGE TO ORIGINATION FEE…4.0% COD Spring 2012 Direct Loans Recap

28 COD Spring 2012 Direct Loan Recap Implemented May 13, 2012 Identifies Direct PLUS loans with incorrect rebate percentage

On July 8, 2012 COD Release 11.1 implemented the following functionality Graduate and Professional Students’ loss of Eligibility for Direct Subsidized Loans Automated extended processing requests for the Direct Loan Program Modified the Weekly School Monitoring Report Implemented Financial Awareness Counseling (FAC) on StudentLoans.gov 29 COD Release 11.1 Direct Loans Recap

30 Due to Legislative modifications, Graduate and Professional Students are no longer eligible for Direct Subsidized Loans COD will reject Graduate and Professional Student Direct Subsidized Loans with an Award Begin Date on or after July 1, Grade Levels 6 & 7 Does NOT impact annual loan limit of $20,500 in Unsubsidized dollars

31 Direct Loan Extended Processing requests for closed award years can be made via the COD Similar request process as Grants Once logged into COD Web, click on School menu then “Request Post Deadline/Extended Processing” link Direct Loan is now available in the Program dropdown menu COD Release 11.1 Direct Loans Recap

With the COD Release 11.1 the Weekly School Monitoring Report was modified Contains virtually the same important information as the original ed report Distributed weekly via your school’s… -SAIG Mailbox in a preformatted text file (SCHMONOP) -COD Newsbox (Direct Loan or Pell) in PDF format Allows for increased access to reports by authorized users at the school COD Release 11.1 Direct Loans Recap 32

Financial Awareness Counseling on the StudentLoans.gov website was developed to Educate borrowers about their current indebtedness and management of their student loans Provide a centralized, online source of financial literacy information to students 33 COD Release 11.1 Direct Loans Recap

Financial Awareness Counseling on the StudentLoans.gov website was developed to Assist borrowers in making informed postsecondary funding decisions Support the government-wide efforts through the Financial Literacy Education Commission 34 COD Release 11.1 Direct Loans Recap

35 Financial Awareness Counseling is optional counseling that provides personalized loan education For borrowers that login to StudentLoans.gov, their NSLDS loan history is displayed within the counseling session Login NOT required to start a session CANNOT link completion of Financial Awareness Counseling to disbursements COD Release 11.1 Direct Loans Recap

Your Student Loans Loan Basics Free Money First Types of Student Loans Your Student Loans Loan Basics Free Money First Types of Student Loans Manage Your Spending While in School Live Within Your Means Borrow Smart Manage Your Spending While in School Live Within Your Means Borrow Smart Estimate What You Will Owe, Spend, and Earn Understand Repayment Estimate What You Will Owe, Spend, and Earn Understand Repayment Avoiding Default Postpone or Lower Your Payments Forgive or Cancel Your Debts Delinquency and Default Avoiding Default Postpone or Lower Your Payments Forgive or Cancel Your Debts Delinquency and Default Plan for the Future Your Income & Taxes Your Credit & Identity Credit Cards & Other Borrowing Plan for the Future Your Income & Taxes Your Credit & Identity Credit Cards & Other Borrowing Understand Your Loans Manage Your Spending Plan to RepayAvoid Default Make Finances a Priority 36 COD Release 11.1 Direct Loans Recap

37 Schools can choose to receive Financial Awareness Counseling acknowledgements via the “Options” screen on the COD website. “Y” or “N” Daily or on-demand “Y” and daily are the default settings COD Release 11.1 Direct Loans Recap

The existing Entrance Counseling Report was modified to include Financial Awareness Counseling data Renamed the “Counseling Report” -Posted weekly to school’s COD Reporting NewsBox in CSV format New Counseling Type Indicator differentiates counseling type There can be multiple Entrance Counseling or FAC records per Borrower 38 COD Release 11.1 Direct Loans Recap

39 COD Release 11.1 Direct Loans Recap

COD Release DL Update FSA is creating an electronic IBR application with an IRS data retrieval function that will be available on the StudentLoans.gov website Intent is to meet the business need to increase the efficiency and take-up rate of placing and maintaining borrowers on the IBR plan Will utilize similar IRS data retrieval capability currently available for FAFSA on the Web to allow IBR applicants to retrieve and transfer income information into their online IBR application 40

With COD Release 11.2 on November 9, 2012 COD will implement Final modifications for ending eligibility for upfront Direct Loan interest rebates on Direct PLUS Loans -COD system will edit on EDD and interest rebate percentage on submitted loan origination data Experimental Sites for Direct Loans Retirement of Warning Edit COD Release 11.2 Direct Loans Update

COD Release 11.2 will implement functionality that will reject a Direct Parent or Graduate Student PLUS Loan If the EDD is on or after July 1, 2012 and the interest rebate percentage is greater than 0% If the EDD is on or before June 30, 2012 and the interest rebate percentage is any other value than 1.5% Origination Fee remains at 4% 42 COD Release 11.2 Direct Loans Update

43 COD Release 11.2 will implement Experimental Sites functionality for Direct Loans Single disbursement of a one term loan for study abroad students at approved Domestic and Foreign schools EDD for study abroad students at approved Domestic schools and students enrolled in Foreign institutions up to 30 days before start of classes (before the award begin date) COD Release 11.2 Direct Loans Update

44 COD Release 11.2 will retire Warning Edit 111 Applies to all award years For the Direct Loan and Perkins programs Edit #Message 111First 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 COD Release 11.2 Direct Loans Update

With COD Release 12.0 on March 8, 2012 COD will implement the following functionality Award Year New Award Year Set-Up Direct Loan and TEACH School Account Statement (SAS) disbursement detail available On Demand Direct Loan Origination Tool Enhancements 45 COD Release 12.0 Direct Loans Update Stay Tuned For Details!

46 Direct Year Program Year Closeout deadline for award year is Tuesday, July 31, First time for many schools $0 Ending Cash Balance -D/L funds received = D/L funds disbursed $0 unbooked disbursements Financial Aid data matches Business Office data and both match COD data Reminder

47 Reminder 47

Grants: Marie Fitzpatrick Phone: Direct Loans: Wood Mason Phone: Contact Information 48

COD School Relations Center URL: Phone - Grants: Phone - Direct Loans: Direct Loan Operations Contact Information 49

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