Session 53 Financial Aid For Techies

2 Presented by… Wood Mason U.S. Department of Education Federal Student Aid COD Systems Operations Branch COD Customer Service

3 Objective What is Financial Aid, where did it come from and how does it work… How do I make the Financial Aid folks like me… What in Sam Hill do all those acronyms stand for anywho…

4 But First… It’s Picture Time!

6 History… U.S. Department of Education –1867 –Later became part of the U.S. Department of Health, Education and Welfare –Latest iteration PL Department of Education Organization Act –In business May, 1980

7 History… Harvard University –May 9, 1648 Lady Ann Radcliffe Mowlson endowed Harvard’s first scholarship fund –1840 Harvard’s first loan program

8 History… GI Bill –June 22, 1944 Serviceman’s Readjustment Act of 1944

9 History… 1950’s –Sputnik –PL created Nat’l Defense Education Act Nat’l Defense Student Loan Program (morphed into Perkins Loan Program)

10 History… Higher Education Act of 1965 –PL –Guaranteed Student Loan Program (Stafford Loan Program – Direct and FFELP) –Educational Opportunity Grant (Pell Grant)

11 In a Nutshell… Student applies We figure out how much the family should contribute to the effort School calculates how much he or she is eligible for and builds the award package Student benefits –As do all of us…an educated citizenry Loans repaid by borrower

12 Application Aid Eligibility Determination –FAFSA (Free Application for Federal Student Aid) –HS Diploma or GED –ATB (Ability to Benefit)

13 Application NOTE: All COD interfaces routed through EAI except DCS. SAIG Schools EFC Calc DB Matches Central Processing System Students * *FOTW – FAFSA on the web

14 Application Aid Eligibility Determination - CPS –EFC (Expected Family Contribution) –NSLDS (National Student Loan Database System) –Immigration, SSA, SSS, IRS, State Agencies

15 Application Output Documentation from CPS to School –ISIR (Institution Student Information Record) contains EFC and other data –SAR (Student Aid Report)

16 Awarding Aid Eligibility Determination at School –COA (Cost of Attendance) –EFA (Estimated Financial Assistance)

17 Awarding Grant Programs –Pell Grant Program –ACG (Academic Competitiveness Grant) –National SMART Grant (Science and Mathematics Assistance to Retain Talent)

18 Awarding Campus Based Programs –FSEOG (Federal Supplemental Educational Opportunity Grant) –FWS (Federal-Work Study Program) –Perkins Loan Program

19 Awarding Loan Programs –William D. Ford Federal Student Direct Loan Program –Federal Family Education Loan Program –Alternative loans MPN (Master Promissory Note) –paper –e-MPN (Electronic Master Promissory Note)

20 Awarding Loan Documents –Disclosure Statement Plain Language Disclosure Borrower’s Rights & Responsibilities

21 Awarding Loan Types –Subsidized Loan (undergraduate/graduate) –Unsubsidized Loan (undergraduate/graduate) –PLUS (Parent Loan Undergraduate Students) parent borrowers graduate and professional student borrowers

22 Awarding Award Package on Award Letter –Grants –Loans –Work –Scholarships –Other

23 The COD Boogie NOTE: All COD interfaces routed through EAI except DCS. SAIG Financial Mgt System (FMS) Loan Servicing System (DLSS) ACG, SMART, Direct Loan and Pell Origination, Change and Disbursement data Batch and web- generated Responses Central Processing System (CPS) Loan Bookings & Disbursements School Eligibility Data Funding Transactions Payment Transactions Student Level Pell Data Student Level Direct Loan Data FMSS / GAPS Schools Drawdowns Post Secondary Education Participant System (PEPS) Student Applicant Data Payment Transactions Student Data Storage (NSLDS) Common Origination & Disbursement (COD) Transaction Processing WebReports Customer Service Center Applicant Services Debt Collection Services (DCS) Student Pell Payment Data

24 Origination & Disbursement Common Origination & Disbursement (COD) –Pell –ACG –National SMART Grants –Direct Loans

25 Origination & Disbursement On-Line Batch –Common Record –Origination data –Disbursement Data pending and actual –Individual or the whole 9 yards

26 Origination & Disbursement Routing ID Number (RID) –Static ID across all COD programs –School, 3 rd Party Servicers, Corporate Office –Used in Entity ID tag Source Destination Reporting Attending

27 Origination & Disbursement Acknowledgements Response –Batch full standard –Web-generated

28 Origination & Disbursement GAPS - Grant Administration and Payment System Current Funding Level (CFL) –Advance Pay –Pushed Cash

29 Origination & Disbursement Booking Notification –Data sent to Direct Loan Servicing System and becomes Department of Education liability

30 Friends For Life Laugh at their jokes Appear sympathetic at their puzzled look and acute inability to speak coherently when you ask “what’s the matter?” Don’t boast about your “week-end to remember” as they as likely as not spent their week-end at their desk processing aid to get caught up…all the while cussing at the IT system for running at what appears to them to be pre-1960 clock speeds

31 Friends For Life Remember this phrase when talking to the Financial Aid Office folks…”Silly computer system…really, it’s not your fault…I’ll get right on it and you’ll be back up and running in no time”

32 Other Systems… Common Services for Borrowers –DCS (Debt Collection Services) –DLSC (Direct Loan Servicing Center) –DLCS (Direct Loan Consolidation Center)

33 Other Systems… PEPS (Postsecondary Education Participation System) NSLDS (National Student Loan Data System) CPS (Central Processing System) –R2T4

34 Other Systems… GAPS (Grant and Administrative Payment System) E-Apps (Eligcert)

35 Other Terms… POP (Potential Overaward Process) MRR (Multiple Reporting Record) FISAP (Fiscal Operations Report and Application to Participate)

36 Other Terms… ACA (Administrative Cost Allowance) CDR (Cohort Default Rate) School Participation Team

37 Other Terms… CSC (Customer Service Center) CSR (Customer Service Representative) SRC (School Relations Center)

38 Other Terms… FAA (Financial Aid Administrator) FAO (Financial Aid Office or Officer) FAD (Financial Aid Director)

39 Other Terms… IFAP (Information for Student Aid Professionals… And Finally…

40 Other Terms… ISYAGTIO (I’m Sure Y’all Are Glad This Is Over)

41 Questions? I appreciate your feedback and comments. I can be reached at: Name: Wood Mason Phone: