US Department of Education Latest Changes in the FSA Index System

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1 Federal Update: New Releases and Trailers US Department of Education Agenda NSLDS Enrollment Reporting Cohort Default Rates Experimental Sites Verification Campus Crime Reporting and the Violence Against Women Act (VAWA) Gainful Employment PLUS Credit Criteria Pay As You Earn (PAYE) FAFSA Update Federal Student Aid ID and Password 2 NSLDS Enrollment Reporting US Department of Education 1

2 Enrollment Reporting Transition Schools must have implemented the new enrollment reporting processes and file layouts by October 1, 2014 Schools must report program-level enrollment information retroactive to July 1, Enrollment Reporting Frequency Beginning July 1, 2014 ED will request enrollment information every 60 days Schools will be required to respond to those requests within 15 days of the date that ED sent the enrollment reporting roster to the school Schools may choose to receive reports more frequently 5 Campus-Level Record Type 001 Campus-Level Student SSN 8-digit OPEID Student Name and DOB Certification Date Enrollment Status Effective Date Enrollment Status Anticipated Completion Date (ACD) Term Begin and End Dates Student Permanent Address Student Phone Number NEW! Move To OPEID Program Indicator NEW! 6 US Department of Education 2

3 Program-Level Record Type 002 Program-Level Classification of Instructional Programs (CIP) Code CIP Year Program Credential Level Published Program Length Published Program Length Measurement Weeks in Title IV Academic Year Program Begin Date Special Program Indicator Program Enrollment Status Program Enrollment Effective Date 7 NSLDS Program-Level Reporting GEN (new enrollment status guidance) o Academic program is defined as the combination of: Institution OPEID number Program Classification of Instructional Program (CIP) code Credential Level Published Program Length o Dual Majors Each major is considered an academic program and reported separately Doesn t matter if get separate degrees or one degree A degree minor is not a separate program 8 NSLDS Program-Level Reporting GEN (new enrollment status guidance) o Must report a student s active enrollment status based on the total number of credit or clock hours in which the student is enrolled, regardless of whether courses apply to the program o Institutions should report the same active enrollment status at both the campus level and at the program level 9 US Department of Education 3

4 Address Record Type 003 Student Student Address Can report multiple addresses One address per record type 003 Optional field 10 Enrollment Reporting New Enrollment Status Code of Q for ¾-time enrollment If the student changes his or her primary location to one of the institution s other campuses, the NSLDS enrollment reporting process is used to move the student o Enrollment should not be certified at more than one campus location Schools should make every effort to add enrolled students who were not included on the NSLDS enrollment roster provided by the Department, but who received Title IV aid at another school 11 Enrollment Reporting Resources Enrollment Reporting Layouts: February 27, 2014 GEN (NSLDS Enrollment Updates): April 14, 2014 NSLDS Newsletter #45: April 24, 2014 Spreadsheet Submittal: July 16, 2014 Enrollment Reporting Guide: July 23, 2014 ANN-14-16: Webinar Recordings #4 & #5 (NSLDS program-level enrollment reporting requirements): August 7, US Department of Education 4

5 Cohort Default Rates Transition Period 14 National Default Rates On September 22, 2014, the Department electronically distributed FY Year official cohort default rates to all eligible schools Time period for appealing FY Year Official Cohort Default Rates (34 C.F.R Part 668, Subpart N) began on September 30, US Department of Education 5

6 Cohort Default Rate For training/discussion purposes only National Student Loan Default Rates 15.0% Issue Year % 14.5% 14.0% 13.7% 13.5% 13.4% 13.0% 12.5% FY 2009 Official FY 2010 Official FY 2011 Official 16 FY Year Official National Cohort Default Rates Fiscal Year 2009 Official Fiscal Year 2010 Official Fiscal Year 2011 Official # of Borrower # of # of # of Borrower # of # of # of Borrower # of # of Schools Default Borrowers Borrowers Schools Default Borrowers Borrowers Schools Default Borrowers Borrowers Rate Defaulted Entered Rate Defaulted Entered Rate Defaulted Entered (%) Repayment (%) Repayment (%) Repayment Public 1, % 196,032 1,778,645 1, % 250,661 1,922,773 1, % 292,012 2,252,334 Less than 2 yrs % 1,202 7, % 1,315 7, % 1,196 8, yrs % 94, , % 125, , % 158, ,073 4yrs(+) % 99,885 1,252, % 123,582 1,315, % 132,712 1,476,511 Private 1, % 63, ,492 1, % 72, ,269 1, % 70, ,156 Less than 2 yrs % 950 4, % 1,097 5, % 1,644 6, yrs % 2,357 16, % 2,305 16, % 2,026 16,861 4yrs(+) 1, % 59, ,142 1, % 68, ,032 1, % 66, ,728 Proprietary 2, % 229,315 1,006,190 2, % 277,088 1,270,965 2, % 288,126 1,500,812 Less than 2 yrs 1, % 27, ,235 1, % 34, ,921 1, % 38, , yrs % 64, , % 71, , % 77, ,649 4 yrs(+) % 137, , % 170, , % 171, ,954 Foreign % 646 8, % 449 9, % ,488 Unclassified 1 0.0% % % 0 3 TOTAL 5, % 489,040 3,629,109 5, % 600,545 4,082,570 6, % 650,727 4,732,793 FY2011 CDR Calculations Electronic Announcement: September 23, 2014 Due to concerns with split-servicing, ED adjusted all three of the most recent official 3-year official CDRs for any institution that otherwise would have been subject to potential loss of eligibility due to FY 2011 rates oexcluded certain borrowers who defaulted on a loan but had one or more other Direct /FFEL loans in repayment, deferment, or forbearance for at least 60 consecutive days and that did not default during the applicable CDR monitoring period 18 US Department of Education 6

7 FY2011 CDR Appeals Electronic Announcement, September 23, 2014: 19 During the draft CDR challenge process this past spring, some data managers rejected a school s submission of a change in a borrower s enrollment status under Incorrect Data Challenge (IDC) process because of lack of timeliness of the requested change ED is advising all data managers that receipt of an Erroneous Data Appeal based on incorrect enrollment information should, if otherwise correct, be approved without regard to when the enrollment change occurred GEN Provides a summary of: Cohort Default Rate calculations Consequences of high default rates CDR challenges, adjustments and appeals 20 Direct PLUS Loan Institution-level PLUS default rate publication 21 US Department of Education 7

8 Default Management Resources Default Prevention Resource Webpage Default Prevention questions can be sent to: Default Management Website Cohort Default Rate questions should be directed to: ; Default Prevention and Management Course fsatraining.info (under training by topics) 22 Experimental Sites Experimental Sites Current Experiments 167 schools opell Grant Eligibility of students with bachelor s degrees and eligibility of short-term programs ostudy Abroad - Early and single disbursement ounequal disbursements of Direct Loans oreduced Unsubsidized loan amounts otwo experiments for students with intellectual disabilities Still opportunity to participate osee DCLs GEN and GEN US Department of Education 8

9 Experimental Sites Federal Register Notice July 31, 2014 ofederal student aid to students enrolled in competencybased education programs omodified Direct Assessment Programs oallowing Federal student aid to be used to pay for assessments of prior learning to evaluate students knowledge owaives FWS matching requirement for near-peer counselling Applications due September 29, Verification Acceptable Documentation Update Electronic Announcement: October 17, 2014 In cases where an IRS tax return transcript can not be obtained, a signed copy of the 2013 federal tax return will be considered acceptable documentation for Verification and related purposes o Student/parent must have requested a transcript using IRS form 4506 or the online request tool, and received a response indicating the request was unsuccessful Signed and dated copy of IRS correspondence Signed and dated screen print from IRS website 27 o Form 4506-T or 4506-EZ must be completed, listing the school as the transcript recipient, and kept on file by the institution US Department of Education 9

10 Campus Crime Reporting and the Violence Against Women Act Campus Crime Reporting The Violence Against Women Act (VAWA) amended the Clery Act o Negotiations finished in April 2014 consensus reached o NPRM published on June 20, 2014 o Final rule published October 20, Campus Crime Reporting Highlights o New statistics required to be maintained about dating violence, domestic violence, sexual assault, and stalking o New categories of hate crimes o Development of primary and ongoing prevention and awareness programs and campaigns o Improved disciplinary processes and descriptions Tracking of unfounded claims o Outline various protective measures 30 US Department of Education 10

11 Campus Crime Reporting GEN and Electronic Announcement: August 1, 2014 Statute requires institutions to have included new information in annual security reports beginning with the October 1, 2014 report Schools must have made a good-faith effort to comply with the statutory provisions as written Should use the statute as the basis for revising or developing policies, procedures, and programs Must ensure appropriate authorities on campus are aware of these changes 31 Gainful Employment Gainful Employment Rulemaking Notice of Proposed Rulemaking (NPRM) ofederal Register - March 25, 2014 oope Website with discussions and materials associated with GE negotiated rulemaking: 12/gainfulemployment.html Final Rules expected by November 1, 2014 oeffective date would be July 1, US Department of Education 11

12 Gainful Employment Disclosures Schools must still disclose certain GE Program data o Schools must use the ED s Disclosure Template to provide all GE disclosures o Schools must post information no later than January 31, 2015 Updated Disclosure Template released o Electronic Announcement, September 11, Gainful Employment Disclosures Template updates include: improved printing capabilities, updated SOC codes, optional context boxes, graduate certificate option, school name on output screen, bulk upload tool used if certain criteria met with different length programs Technical questions: (855) or gedt@inovas.net 35 PLUS Credit Criteria US Department of Education 12

13 Negotiated Rulemaking Program Integrity and Improvement o Cash management (debit cards, etc.) o State authorization for distance education and foreign locations of domestic schools o Clock- to credit-hour conversion o Repeat Coursework o Adverse credit for PLUS loan borrowers 37 Direct PLUS Loan NPRM published on August 8, 2014 Comments due by September 8, 2014 Final Rule published October 23, 2014 o Purpose: update the standard for determining if a potential parent or student borrower has an adverse credit history for purposes of eligibility for a Direct PLUS Loan (PLUS loan) 38 Direct PLUS Loan Adverse credit history includes: o applicant having one or more debts with total combined outstanding balance greater than $2,085 o These debts are 90 or more days delinquent, or placed in collection or charged off during preceding 2 years PLUS applicant with an adverse credit history, but who documents to Secretary s satisfaction that extenuating circumstances exist, must complete PLUS loan counseling Extension of credit check validity time frame 39 US Department of Education 13

14 PAYE Pay As You Earn June President announced new executive actions to further lift the burden of student loan debt oincentives for Loan Contractors to Serve Students Well oensure Active-Duty Military Get Relief Entitled To owork with Private Sector to Promote Repayment Options oinnovative Strategies to Help Vulnerable Borrowers ocollaborations to Improve Data for Students and Families February 2015 Anticipated Negotiated Rulemaking Sessions 41 Pay As You Earn Federal Register September 3, 2014 o Develop proposed regulations to allow more student Direct Loan borrowers to use the Pay as You Earn Repayment Plan in accordance with the June 2014 Presidential Memorandum Two public hearings: o10/23/14 - U.S. Department of Education, 1990 K Street NW., Eighth Floor Conference Center, in Washington D.C. o11/4/14 Marriott Anaheim, 700 West Convention Way, in Anaheim, CA Goal is to have repayment plan available by 12/31/15 Written comments must be received by 11/4/14 42 US Department of Education 14

15 FAFSA Update : Updates in Progress To encourage students from the Freely Associated States to use their assigned identification numbers from year to year o Electronic Announcement: November 20, 2013 To alter skip logic to ensure foster care youth are informed about potential resources available to them To create an infographic to assist dependent applicants in determining what parental information to report on the FAFSA : Updates in Progress To update and expand IRS help topics and review authentication guidance To create an infographic to promote the IRS Data Retrieval Tool (DRT) and provide clearer information about timelines Text changes and messaging o List of schools on ISIR o Gender at birth o Selective Service System o Deferred Action for Childhood Arrivals (DACA) o Amended tax returns o Definition of parent 45 US Department of Education 15

16 Reprocessed ISIRs Issue: Inflated Income Earned from Work values due to entry of cents in this field on the FAFSA Solution: Changed the entry format to right-justified Dropped decimal point and additional digits when input by the applicant o Fixes implemented July 1, 2014 o Electronic Announcement: July 18, 2014 Schools must review AGI and Income from Work 46 Reprocessed ISIRs Issue: Inflated Adjusted Gross Income (AGI) values due to entry of cents in this field on the FAFSA Solution: ISIRs reprocessed based on outlier AGI figures Excluded transactions previously reprocessed o Electronic Announcement: September 4, 2014 Schools may review AGI and other fields 47 Reprocessed ISIRs Reprocessing Criteria FAFSA submitted online prior to July 1, 2014 Not reprocessed previously, per the July 18 Electronic Announcement One of the following criteria were met: o The student s reported AGI was greater than $100,000; o The parent s reported AGI was greater than $500,000; o The parent s reported AGI was greater than $100,000 and the parent indicated that they filed an IRS 1040A or 1040EZ 48 US Department of Education 16

17 : Possible Future Updates Draft FAFSA posted for comment o Electronic Announcement: August 28, 2014 o Comment period open until October 27, 2014 o Key issues o Confusion about whose information should be reported for parents of dependent students o Confusion about high school completion question 49 Timeline and References Electronic Announcement : July 24, 2014 o Electronic Data Exchange (EDE) Technical Reference Draft (including the ISIR Record Layout and ISIR Cross-Reference) Electronic Announcement : July 30, 2014 o Application Processing System Specifications for Software Developers Draft Electronic Announcement : August 28, 2014 o Notice of the Draft Federal Student Aid Application Materials 50 Timeline and References Electronic Announcement: September 2, 2014 o EFC Formula Guide October 7, 2014 o CPS Test System User Guide October 7, 2014 o ISIR Guide October 8, 2014 o Electronic Data Exchange (EDE) Technical Reference - Final 51 US Department of Education 17

18 Timeline and References November 2014 o SAR Comment Codes and Text November 2014 o Summary of changes for Application Processing Guide (SCAPS) December 2014 o The CPS Test System is made available 52 Introducing the FSA ID: The PIN Replacement References Electronic Announcement : October 1, US Department of Education 18

19 Introducing the FSA ID The FSA ID will modernize access for students, parents and borrowers to FSA systems FSA is adopting the best practice of using a username and password instead of personal information The FSA ID Requires users to enter less information (2 fields instead of 4) Provides more secure access to information Links to PIN information during registration Offers self service capability (name change) The FSA ID (username and password) will replace PIN for students, parents and borrowers accessing FSA systems starting on April 25, 2015 New FSA ID login Will be updated Old PIN login 55 Introducing the FSA ID Users still click the Sign in button. This directs them to the FSAID login page. Once they enter their FSA ID, they are directed back to the application landing page Will be updated 56 Introducing the FSA ID What happens for new user? o Registration requests the same required information as PIN o New users will be directed to the registration page to create an FSA ID (username and password) similar to today s PIN creation page What happens if I have a PIN already? o During account creation, the user will be asked for their PIN. o As long as the PIN information matches their other information, the account will be linked to the FSA ID account Will the changes affect a user s ability to access previous FAFSA submissions? o If the user links their PIN, they will have access to previous FAFSA submissions 57 US Department of Education 19

20 Introducing the FSA ID Can users still access FAFSA by providing their Last name, SSN and DOB? o FAFSA functionality will not change except that the FSA ID will replace the PIN information o Users will not be able to sign or correct their application without their FSA ID Will customer support change? o Customer support will not change. Similar to PIN, all users will be directed to call the FSAIC helpdesk for login related issues Will my FSA access to other people s information require a new username and password? o This is only for users who are accessing their own information 58 Introducing FSA ID For more information about the FSA ID and a demonstration of the new functionality, please attend one of the three Introducing FSA ID sessions Introducing the FSA ID -- the FSA PIN Replacement This session will include a demonstration of the new functionality for creating and managing an FSA ID, along with logging in to FAFSA, Studentloans.gov, and NSLDS. Days, times, and locations: Day 1, 12:30 p.m. 1:45 p.m. A311/A312 Day 3, 10:30 a.m. 11:45 a.m. B302/B303/B304 Day 4, 12:00 p.m. 1:15 p.m. Sidney Marcus Auditorium 59 FSA ID Demonstration: Selected Screens US Department of Education 20

21 Login User clicks on Sign In button from application Home page 61 Studentaid.gov PIN Login User enters PIN information, SSN, DOB and first two letters of last name 62 FSA ID Login DRAFT TEXT Will be updated User enters FSA ID (Username and Password) and clicks on Login to access FSA systems 63 US Department of Education 21

22 Login Landing Page 64 Create Account DRAFT TEXT Will be updated 65 Create Account DRAFT TEXT Will be updated 66 US Department of Education 22

23 Create Account DRAFT TEXT Will be updated 67 Create Account DRAFT TEXT Will be updated 68 Create Account DRAFT TEXT Will be updated 69 US Department of Education 23

24 FSA Training Conference Atlanta, Georgia December 2-5, 2014 See IFAP Announcement of May 30, Questions? Thanks! 71 We Appreciate Your Feedback To ensure quality training we ask all participants to please fill out an online session evaluation: This evaluation tool provides a means to inform us of areas for improvement, and to support an effective process for listening to our customers. Additional feedback about training can be directed to annmarie.weisman@ed.gov. 72 US Department of Education 24

25 Department of Education Contacts Region I Training Officers (New England) Pam Gilligan pam.gilligan@ed.gov Anita Olivencia anita.olivencia@ed.gov Department of Education Contacts Research and Customer Care Center fsa.customer.support@ed.gov Reach FSA 855.FSA.4FAA -- 1 number to reach 10 contact centers! Campus Based Call Center COD CPS/SAIG NSLDS G5 ez-audit School Eligibility Service Group Foreign Schools Participation Division Research and Customer Care Center Nelnet Total & Permanent Disability Team 74 US Department of Education 25