Software Developers Conference Orlando, FL October 29, 2006

Welcome Katie Blot

Agenda Welcome2:00 PM – 2:20 PM Higher Education Reconciliation Act Overview2:20 PM – 2:40 PM Central Processing System Update2:40 PM – 3:10 PM Break3:10 PM – 3:25 PM Common Origination and Disbursement Update 3:25 PM – 3:55 PM Round Table3:55 PM – 4:25 PM Closing4:25 PM – 4:40 PM Adjourn4:40 PM

4 I appreciate your feedback and comments. I can be reached at: Name:Katie Blot Phone: Contact Information

CPS and COD Update Higher Education Reconciliation Act (HERA) Overview and Annual Release Update Sue O’Flaherty and Marilyn LeBlanc

6 Topics HERA Overview Central Processing System Update Common Origination and Disbursement Update National Student Loan Data System Questions and Answers

Higher Education Reconciliation Act (HERA) Overview Sue O’Flaherty

8 HERA Overview Completed releases: –Changes to Need Analysis –ACG Website, ISIR/SAR Comment Codes, and notifications to students –COD release 5.1A: Grad PLUS Electronic and Paper Promissory note processing –COD release 5.1B: ACG/SMART CFL and CFL Adjustments

9 HERA Overview Completed releases, continued –R2T4 on the WEB released –EDEXpress 2.0 Grad PLUS –COD 5.2A Grad PLUS –EDEXpress 3.0 –DL Tools

10 HERA Overview Upcoming HERA Releases: –EDExpress 4.0: December 15, 2006 –COD 5.2B: December 16, 2006 –NSLDS: December 17, 2006 –CPS Annual Release with HERA Changes: January 1, 2007 –EDExpress 5.0: April 1, 2007 –COD 6.0: April 14, 2007

11 Technical References COD Technical reference releases since August 3, 2006, include: – , COD Technical Reference August – , COD Technical Reference August – , COD Technical Reference Second Update – , COD Technical Reference September

12 Technical References CPS Technical References since August 3, 2006, include: –EDE Technical Reference, Record Layouts, August – , Developers Specifications 8/15/06 –SAIG Message Classes release August

13 Technical References Upcoming Technical Reference and information updates will be available on or about: –COD - 11/17/ COD Technical Reference - Update COD Technical Reference - All Sections (except Vol. IV: Direct Loan Tools, Vol. VI, Sec. 3 Pell Grant Calculation Table) Tentative date for future Technical Reference publication –COD - 02/16/ COD Technical Reference - Update

14 Information Updates Upcoming CPS References: October –ISIR Guide –Summary of Changes for Application Processing System –EDE Technical Reference - update

15 Information Updates Upcoming CPS References: November –School Electronic Processing Guide –SAR/ISIR Comment Codes and Text –Student Web Application Products Process Guide –Federal School Code List

16 ACG and SMART Regulations Interim Final regulations published on July 3, 2006, for the award year. Based on public comments received, anticipate publishing final regulations by November 1, 2006, for the award year. Regulations for the third and subsequent years will be developed through negotiated rulemaking.

17 Academic Year Definition Update Academic year is defined in section 481(a) of the HEA. For credit hour programs, requires completion of at least 24 semester or 36 quarter credits, and Minimum of 30 weeks of instruction.

18 Academic Year Definition Update Credit completion: institution to determine minimum credit completion required. May or may not coincide with institution’s academic grade level progression (ex. Freshman, Sophomore, etc)

19 Academic Year Definition Update 30 Week Determination: Institution’s can assume that there was 30 weeks of instruction time for each increment of credit hours Institution must determine actual weeks of instruction if requested by student.

20 Academic Year Definition Update 30 Week Determination In determining actual weeks, institution may not assign weeks of instruction for Advance Placement (AP) or International Baccalaureate (IB) coursework AP and IB credits do not have to be included in total credits when determining ACG/SMART eligibility.

21 Academic Year Definition Update For and , the Fourth Year National SMART Grant eligibility ends when the student has completed the minimum number of credits required for completion of their academic program. Example, the fourth academic year of an engineering program that requires 130 credits ends when the student has earned 130 credits

Central Processing System (CPS) Update Marilyn LeBlanc

FAFSA The FAFSA received OMB clearance on September 29, 2006 Final check with IRS for tax form references completed. Printing scheduled to start October 27

FAFSA Changes from August draft include: –Renumbered pages Form itself now numbered pages –State deadline changes for LA, OK & TN –2006 IRS line changes for 1040A, 1040EZ, and Worksheet B references –Notes on investment questions clarified –Notes for “are you a veteran” reorganized

Software Developer Specifications Draft specifications posted August 15 Update posted September 1 –Correction made to EFC State and Other Tax Allowance table –Notes added to clarify changes to IPA and Asset Conversion rates in EFC calculation

Software Developer Specifications Update posted September 1, continued. –IPA table for independents with dependents is no longer the same as the table for parents of dependent students –Asset conversion rate updated for independent and dependent student but not for parents of dependent students

ISIR Draft record layout posted August 4 Record length increased from 2600 to 2975 bytes Deleted data elements –Interested in student loans –Interested in work study

ISIR Added data elements –Type of Aid Interested in Receiving –Active Military Duty –Student/Parent SSI Benefits –Student/Parent Food Stamps –Student/Parent Free Reduced Price Lunch –Student/Parent TANF Benefits –Student/Parent WIC Benefits

ISIR Fields were reordered and renumbered to match FAFSA NSLDS Financial Aid History Data expanded –Grad PLUS MPN Indicator added –ACG and SMART Grant data added Other annual changes made

ISIR Reminder - New CPS Internal Field number assigned to each data element will be used for submitting EDE corrections –Replaces SAR field number on correction record –Matches Application/SAR field number up to First College Choice field (field #97)

32 CPS Test System Test files will be provided in November for self testing. Test System available beginning November 20, 2006, and remains available through end of processing cycle User Guide will be posted to Federal Student Aid Download Web site (FSAdownload.ed.gov) by the end of October

33 CPS Test System Questions on specifications or testing? Name:Teri Hunt Phone:

34 CPS Contact Information We appreciate your feedback and comments. We can be reached at: Phone:

36 I appreciate your feedback and comments. I can be reached at: Name:Marilyn LeBlanc Phone: Contact Information

Common Origination and Disbursement (COD) Update Sue O’Flaherty

38 Topics Covered COD 5.2B Release –Financial Award ID review –Student Level Code –Testing COD 6.0 Release –Key Changes –Reports

39 Financial Award ID Review Financial Award ID & Financial Award Number are new concepts for grant program –Assists in properly directing overpayment information at Collections –Comparable to Loan ID

40 Financial Award ID –Helps COD distinguish multiple awards for the same student at the same school for the same Award Year Financial Award Number –The last 3 positions of the Award ID

41 Financial Award ID Elements or the Financial Award ID –Current SSN –Award Type (A=ACG, T = National SMART) –Award Year (07) –Pell School ID –Award Sequence Number (Financial Award Number) –21 characters in length

42 Financial Award ID & Financial Award Number Example 1 - Student A Student level code of 1 receives an ACG Award $750 Fall Disbursement $375 Award ID xxxxxxxxxA07xxxxxx001 Financial Award Number 001 Spring Disbursement $375 Award ID xxxxxxxxxA07xxxxxx001 Financial Award Number 001

43 Example 2 - Student B Student level code of 1 receives an ACG Award $750 Fall Disbursement $375 Award ID xxxxxxxxxA07xxxxxx001 Financial Award Number 001 Progresses to student level code of 2 receives an ACG Award $1300 Spring Disbursement $650 Award ID xxxxxxxxxA07xxxxxx002 Financial Award Number 002 Financial Award ID & Financial Award Number

44 Financial Award ID & Financial Award Number Example 3 - Student C Student level code of 3 receives a SMART Award $4000 Fall Disbursement $2000 Award ID xxxxxxxxxT07xxxxxx001 Financial Award Number 001 Spring Disbursement $2000 Award ID xxxxxxxxxT07xxxxxx001 Financial Award Number 001

45 Financial Award ID & Financial Award Number Example 4 - Student D Student level code of 3 receives a SMART Award $4000 Fall Disbursement $2000 Award ID xxxxxxxxxT07xxxxxx001 Financial Award Number 001 Progresses to student level code of 4 and receives a SMART Award $4000 Spring Disbursement $2000 Award ID xxxxxxxxxT07xxxxxx002 Financial Award Number 002

46 Student Level Code For Direct Loans, student level code is part of the loan key block. For ACG and SMART, student level code is part of the ACG/SMART award blocks For ACG and SMART, student level code is within the award blocks because it helps to determine eligibility and the amount.

47 Student Level Code If the student changes grade level in the award year, schools needs to submit a new award with the new grade level. Schools can send full award amount mid year or can adjust the award amount to equal remaining amount for the award year.

48 Student Level Code The student level code for ACG and SMART have the same values as DL. Valid Values are; 0, 1, 2, 3, 4, 5, 6, and 7.

49 COD 5.2B Testing Manual Validation Testing, Open Enrollment: November 1, 2006 Structured Testing, Open Enrollment: January 8, 2007

50 COD 5.2B Record Submission ACG and National SMART record can be sent to COD beginning December 16, Schools must begin submitting ACG and National SMART records by January 17, –Spring funds will be held until fall records are sent to COD –30-Day Disbursement Waiver is over on January 17, 2007

51 COD Release Key Changes MPN Expiration Date returned on MPN Acknowledgements Increase Direct Loan Annual Loan Limits New Origination Fees for Direct Loan New Identity Theft Discharge Type “No Pell” Deobligation Process New ACG/National SMART Reports

52 COD Release 6.0 ACG and National SMART Reports 6.0 April 14, 2007 –ACG and National SMART Multiple Reporting Record (MRR) Message Class: AGMR07OP (ACG) Message Class: SGMR07OP (National SMART) Applies to concurrent enrollment only

53 ACG/National SMART Phased COD Implementation 6.0 ACG and National SMART Reconciliation Report –Message Class: AGRC07OP (ACG) –Message Class: SGRC07OP (National SMART)

54 ACG/National SMART Phased COD Implementation 6.0 ACG and National SMART Year-to-Date (YTD) Record –Message Class: AGYR07OP (ACG) –Message Class: SGYR07OP (National SMART)

55 ACG/National SMART Phased COD Implementation 6.0 ACG and National SMART Text File –Message Class: AGTX07OP (ACG) –Message Class: SGTX07OP (National SMART)

56 ACG/National SMART Phased COD Implementation 6.0 Data Requests –Message Class: AGRQ07IN (ACG) –Message Class: SGRQ07IN (National SMART) Data Request Responses –Message Class: AGRA07OP (ACG) –Message Class: SGRA07OP (National SMART)

57 ACG/National SMART Phased COD Implementation 6.0 SSN/Name/Date of Birth Change Report –Consolidated Pell, ACG and National SMART report –Message Class: PGSN07OP

58 ACG/National SMART Phased COD Implementation 6.0 ACG and National SMART Pending Disbursement Report –Message Class: AGPD07OP (ACG) –Message Class: PGPD07OP (National SMART)

59 ACG/National SMART Phased COD Implementation 6.0 Global Jobs –Warn and Reduce Disbursements for “No Pell” System Generated Negative Disbursements Global Jobs –Reduce CFL to Accepted Records

National Student Loan Data System (NSLDS) Sue O’Flaherty

62 NSLDS and ACG/SMART NSLDS will begin: –Receiving ACG/SMART Grants from COD on December 17, 2006 –Displaying ACG/SMART Grants on the website on December 18, 2006 –Using a new file format for Transfer Student Monitoring/Financial Aid History on January 1, 2007

63 NSLDS and ACG/SMART No ACG/SMART Grant award data will appear on ISIRs Beginning on January 1, 2007: –CPS will start receiving ACG/SMART Grant award data from NSLDS as part of pre-screening – ACG/SMART Grant disbursement data will appear on ISIRs –ISIR Financial Aid History will display up to three ACG and SMART Grant disbursements for the award year

64 NSLDS and ACG/SMART Beginning on January 1, 2007: –ACG/SMART overpayment information will appear on ISIRs Comment codes will be included on ISIRs for records that are in ACG or SMART overpayment Overpayment contact information will be included in Financial Aid History information on ISIRs

65 NSLDS and ACG/SMART Beginning on January 1, 2007: – Information associated with Fraud Convictions will appear on ISIRs L oan Type Code ‘F’ added Loan Status Codes ‘FR’ and ‘FD’ added Overpayment Flags Value of ‘F’ added (will be treated the same as a value of ‘Y’ = in overpayment) New post-screening reasons added – 17 - Fraud Conviction added – 18 - Fraud Conviction resolved

66 Transfer Monitoring for ACG/SMART For ACG/SMART –TSM will begin on January 3, 2007 –Schools should continue to register students for Transfer Monitoring the same as they have done in the past. –Schools can look up ACG/SMART award data on NSLDS Web site

67 No changes to the INCOMING file record layout (Length= 150) Changes to the OUTBOUND/PROCESSED file record layouts (Length = 260) If new fields are added, they will be added at the end of each record type’s file or in current filler positions to minimize overall changes. TSM/FAH Processes and Batch File Layouts

68 A.TSM Alert/FAH Detail Record Type 1- Aggregate, Perkins, Flags Record Layout Added ACG Change Flag (field positions ) Added SMART Chang Flag ( ) Added PLUS Grad/Prof. PLUS MPN FLAG ( ) Added Fraud Flag ( ) Added PLUS Grad/Prof. OPB ( ) Added PLUS Grad/Prof. Total ( ) Updated FILLER at end of record type ( ) TSM/FAH Processes and Batch File Layouts- Outbound/Processed

69 B. TSM Alert/FAH Detail Record Type 3- Overpayment Record Layout References to “Pell” changed to “Grant” Updated Overpayment Type definition to include ACG/SMART (field positions 74-75) Updated Overpayment Indicator to include Fraud (76-76) TSM/FAH Processes and Batch File Layouts- Outbound/Processed

70 C.TSM Alert/FAH Detail Record Type 4- Grant Payment Record Layout References to “Pell” changed to “Grant” Definitions expanded for Grant type usage Moved Percent of Eligibility Used (field positions ); changed to FILLER Added Percent of Eligibility Used, expand from 5 to 7 characters ( ) Added Grant Type ( ) Added Eligibility Payment Code ( ) TSM/FAH Processes and Batch File Layouts- Outbound/Processed

71 C.TSM Alert/FAH Detail Record Type 4- Grant Payment Record Layout- continued Added High School Program Code (field positions ) Added Year In School Code ( ) Added Award ID ( ) Added CIP Code ( ) Added Pell Payment Period Limit ( ) Reserved for future use, “N/A” until then Added Grant Sequence Number ( ) Updated FILLER at end of record type ( ) TSM/FAH Processes and Batch File Layouts- Outbound/Processed

72 D.TSM Alert/FAH Detail Record Type 2- Name History Record Layout- no changes E. TSM Alert/FAH Detail Record Type 5- Loan Detail Record Layout- no changes TSM/FAH Processes and Batch File Layouts- Outbound/Processed

74 I appreciate your feedback and comments. I can be reached at: Name:Sue O’Flaherty Phone: Contact Information

Round Table

76 I appreciate your feedback and comments. I can be reached at: Name:Katie Blot Phone: Contact Information Thank you very much for your input!