1. Getting Your Perkins PhD May 17, 2012 Financial Aid has Awarded Perkins – Now What?

2. We Fear That Which We Do Not Understand RegulationsRegulations Auditors’ FindingsAuditors’ Findings Cohort Default CalculationCohort Default Calculation

3. Share KnowledgeShare Knowledge Support for AuditsSupport for Audits Annual Review of Program Setup to Ensure Continued ComplianceAnnual Review of Program Setup to Ensure Continued Compliance Forge a School-Billing Servicer Partnership

4. The Beginning: Making the Loan, In-School Status Entrance InterviewsEntrance Interviews Prom NotesProm Notes 34CFR 674.3134CFR 674.31 DCL CB-06-11DCL CB-06-11 TILA, Reg ZTILA, Reg Z Annual DisclosuresAnnual Disclosures 34CFR 674.16(a)34CFR 674.16(a) 34 CFR 674.19(e)(4)(iii)34 CFR 674.19(e)(4)(iii) Red Flag RulesRed Flag Rules FTC 16 CFR 681FTC 16 CFR 681 Tax FormsTax Forms IRS Publication 970IRS Publication 970

5. 34 CFR 674.42(b) HEOA section 488(b) HEA section 485(b)(1)(A) GraduatesGraduates Withdrawn or LTHTWithdrawn or LTHT Notification of need to go through exit processNotification of need to go through exit process Exits: Online / MailedExits: Online / Mailed 34 CFR 674.42(b)34 CFR 674.42(b) The Next Step: Exit Process

6. The Calm Before the Storm: Grace Grace Audit NoticesGrace Audit Notices 34 CFR 674.42(c)34 CFR 674.42(c) Should you do more?Should you do more? Multiple Grace Periods?Multiple Grace Periods? NSLDS ReportingNSLDS Reporting

7. Billing: Monthly vs. Quarterly, etc.Billing: Monthly vs. Quarterly, etc. 34 CFR 674.41(a)34 CFR 674.41(a) 34 CFR 674.4334 CFR 674.43 Multiple payment optionsMultiple payment options Consolidation and LVCsConsolidation and LVCs HEA Section 428C(a)(3)HEA Section 428C(a)(3) Uh-Oh: Here Comes Repayment

8. DefermentsDeferments CancellationsCancellations 34CFR 674.5234CFR 674.52 ForbearanceForbearance Interest due at end of ForbearanceInterest due at end of Forbearance Death and DisabilityDeath and Disability Whew: Deferments, Cancellations, Etc.

9. 60-Day Final Demand Letters and 90-Day Due Diligence Calls60-Day Final Demand Letters and 90-Day Due Diligence Calls 34 CFR 674.43(b)34 CFR 674.43(b) 34 CFR 674.43(c)34 CFR 674.43(c) Definition of DefaultDefinition of Default Cohort Default and the Orange BookCohort Default and the Orange Book http://ifap.ed.gov/perkinscdrguid e/1011PerkinsCDR.htmlhttp://ifap.ed.gov/perkinscdrguid e/1011PerkinsCDR.html Skip-TracingSkip-Tracing 34 CFR 674.4434 CFR 674.44 Say It Isn’t So: Delinquency & Default

10. Far from the Pathway: Looking into the Abyss Government AssignmentGovernment Assignment HEA Section 463(a)(5)HEA Section 463(a)(5) State Tax OffsetState Tax Offset IRS Reform Act of 1998IRS Reform Act of 1998 Perpetual BillingPerpetual Billing SettlingSettling Can you collect after 7 years?Can you collect after 7 years?

11. Pre-CollectionsPre-Collections InternalInternal ExternalExternal Credit Bureau Reporting and E-OSCARCredit Bureau Reporting and E-OSCAR 34 CFR 674.45(a)(1)&(b)34 CFR 674.45(a)(1)&(b) DRAPDRAP Dear Colleague Letter CB-05-11Dear Colleague Letter CB-05-11 RehabilitationRehabilitation AccelerationAcceleration Collection AgenciesCollection Agencies To the Rescue: Pre-Collections and Collection Agencies

12. Prom Notes vs. PIF LettersProm Notes vs. PIF Letters 34 CFR 674.19(e)34 CFR 674.19(e) Retention of Original NotesRetention of Original Notes 34CFR 674.19(e)(4)(iii)34CFR 674.19(e)(4)(iii) Replenishes your Perkins ProgramReplenishes your Perkins Program They key to success? Communication with your borrowers.They key to success? Communication with your borrowers. Successful Conclusion: Paid in Full

13. CONGRATULATIONS GRADUATES !! Sal Flores, Chapman University Laurelle Swan, ECSI