Education Department News RSS

2009 Federal Student Aid Conference Information
The training sessions for the 2009 Federal Student Aid Fall Conference have been posted. In the coming weeks, the Department will post the conference schedule followed by the conference sessions in early November. In an effort to conserve natural resources, reduce waste, minimize our impact on the environment and lower conference costs, the Department will not be providing any session presentations at the conference. Attendees should print out the presentations of sessions they wish to attend and bring them to the conference.

ANN-09-29: Training Recording - Pell Calculations for Clock-Hour Programs
The Department has posted a recorded training session that provides detailed information about calculating Pell Grant awards for students enrolled in clock-hour programs. This one-hour training session is intended for financial aid administrators at clock-hour institutions with a beginning to intermediate level of knowledge of Pell Grant calculations using Formula 4.

COD Processing Update (09/25/09)
The COD Processing Update includes COD News, Reports and Data Requests, Resolved Issues, Resolved Issues In Clean Up, and Current Issues. A new edition of the COD Processing Update is posted on the COD Web site on business days when there is a change to the previously posted edition and each Friday.

FEDERAL REGISTER

Proposed Information Collection Request: Annual Performance Report for Partnership and State Projects for GEAR UP
The Annual Performance Report for Partnership and State Projects for GEAR UP is a required report that grant recipients must submit annually. The purpose of this information collection is for accountability. The data is used to report on progress in meeting the performance objectives of GEAR UP, program implementation and student outcomes. The data collected includes budget data on Federal funds and match contributions, demographic data, and data regarding services provided to students. Interested persons are invited to submit comments on or before Nov. 27, 2009.

2010-11 Application Processing System Specifications for Software Developers (September 2009 Draft)
Federal Student Aid has posted an update to the draft of the Application Processing System Specifications for Software Developers for the 2010-11 cycle. In this draft, updates have been made to the list of 2010-11 reject codes to reflect renumbering of some of the reject edits that were included in the initial August 2009 draft. Please note testing of these specifications will not be complete until Jan. 1, 2010. Software developers should be prepared to receive updates to the specifications until that time.

FISAP Data Entry Issues
Some schools are receiving edits in error when completing the current FISAP in the eCampus-Based system (eCB). The two identified errors and the related work-around solutions are described in this announcement. The deadline for submitting the Fiscal Operations Report for 2008-09 and the Application to Participate for 2010-11 (FISAP) for the Perkins Loan, Federal Supplemental Educational Opportunity Grant, and Federal Work-Study programs is Oct. 1, 2009.

EDExpress for Windows 2010-11 Packaging Technical Reference Available on FSADownload Web Site
Federal Student Aid announced the posting of the 2010-11 EDExpress for Windows Packaging Technical Reference in PDF format on the Federal Student Aid Download (FSAdownload) Web site. The Packaging Technical Reference provides instructions and record layouts for schools and other organizations that need to integrate their software or systems with the EDExpress 2010-11 Packaging module (available January 2010).

NASFAA Submits Comments on General and Non-Loan Programmatic NPRM
Yesterday, NASFAA submitted comments on proposed rules on various general and non-loan provisions that were added to the HEA, by the Higher Education Opportunity Act of 2008 (HEOA). The proposed regulations would amend the regulations for Institutional Eligibility under the HEA, the Student Assistance General Provisions, the Federal Work-Study (FWS) Programs, the TEACH Grant Program, the Federal Pell Grant Program, and LEAP. These regulations were drafted by the Department after federal and nonfederal negotiators failed to reach consensus during the negotiated rulemaking process (Team V).

GAO Report on Proprietary School Aid Recommends Stronger Oversight by Department
A new report on student financial aid practices at proprietary schools released by the General Accountability Office (GAO) concludes that the Department of Education should strengthen its monitoring and oversight of institutions in the for-profit sector. The study, Proprietary Schools: Stronger Department of Education Oversight Needed to Help Ensure Only Eligible Students Receive Federal Student Aid, found areas of fraud and abuse in the "ability-to-benefit" and high school diploma requirements and linked these weaknesses to the potential for greater default rates in unqualified students who do not succeed in college because they are not adequately prepared.

2009-10 Supplemental Campus-Based Awards
Each year, prior to Sept. 30, the Department use information collected on the Campus-Based Reallocation Form to reallocate unexpended FSEOG, Federal Work-Study, and Perkins Loan program funds from the previous award year as supplemental allocations for the current award year. Accordingly, the Department has distributed supplemental FSEOG and FWS awards for the 2009-10 Award Year to schools that meet the required statutory conditions for receipt of such funds. Because there were no new Perkins Loan funds appropriated for the 2008-2009 Award Year, there are no Perkins Loan funds available to be awarded through the supplemental award process.

Upcoming SAIG Message Class File Update
On October 1, 2009, the Department will send the message class "MESSAGTB" via the Student Aid Internet Gateway (SAIG) to all user mailboxes. The EDconnect transmission software will automatically request, download, and import this new message class table with a user's next connection to the SAIG network. Once the MESSAGTB file has been imported, the new message class table will be used from that point forward.

GEN-09-11: Minor Prior Year Charges
Generally, the Higher Education Act requires that current year Title IV funds be used only for current year charges. On Nov. 1, 2007, the Department published final regulations amending the cash management provisions that allow institutions to use current year Title IV funds to pay for minor prior year charges. This Dear Colleague letter clarifies several issues that have been raised with respect to compliance with those regulatory provisions.

ANN-09-28: Demonstration Recordings - Electronic Cohort Default Rate Appeals 2.2 Demonstration Sessions
The Department of Education announces the availability of the electronic Cohort Default Rate Appeals (eCDR Appeals) demonstration sessions. These are electronic recordings that demonstrate how to use various aspects of the eCDR system. The New Data Adjustment demonstration has been updated to reflect the latest implementation of eCDR Appeals Release 2.2 on Sept. 14, 2009.

COD Processing Update (09/18/09)
Summary: The COD Processing Update includes COD News, Reports and Data Requests, Resolved Issues, Resolved Issues In Clean Up, and Current Issues. A new edition of the COD Processing Update is posted on the COD Web site on business days when there is a change to the previously posted edition and each Friday.

Secretary Duncan Names 72 Jacob K. Javits Fellows
U.S. Secretary of Education Arne Duncan today named 72 Jacob K. Javits fellows to pursue graduate study within selected fields of the arts, humanities, and social sciences. Selected from 764 applicants, fellows are chosen on the basis of superior academic achievement, exceptional promise, and financial need. They will attend 28 institutions of higher education. Fellows are selected by panels of academic scholars selected by the Jacob K. Javits Fellowship Board, which is comprised of distinguished scholars selected by the Secretary. Each fellow will receive a stipend in the amount of $30,000, and the institution he or she attends will receive a payment of $13,552, which is adjusted annually based on the Consumer Price Index.

FEDERAL REGISTER

Proposed Information Collection Request: Student Aid Report (SAR)
The Secretary of Education requests comments on the Student Aid Report (SAR) that the Secretary proposes to use for the 2010-11 award year. The SAR is used to notify Free Application for Federal Student Aid (FAFSA) applicants of their eligibility to receive Federal student aid under the student financial assistance programs authorized under Title IV of the Higher Education Act of 1965, as amended, and to provide an opportunity for applicants to correct or update the information they provided on their FAFSA. Interested persons are invited to submit comments on or before Nov. 17, 2009.

Support Counselor Training in Your State
National Training for Counselors and Mentors (NT4CM) planning is currently underway for academic year 2010-11. NT4CM works with states to help provide free training and support for high school counselors, college access program staff, and mentors who assist students and their families in preparing financially for college. NT4CM participation is voluntary and is intended to supplement, not replace, your state's current high school counselor financial aid training programs. If your state elects to participate in NT4CM, you and your financial aid staff can support the effort in many ways, such as providing a site for training, volunteering to be a trainer, or offering to be a resource for participants after the training is completed.

Student Loan Default Rates Increase
U.S. Secretary of Education Arne Duncan today announced that the FY 2007 national student loan cohort default rate increased to 6.7 percent, up from the FY 2006 rate of 5.2 percent. The rate announced today is a snapshot in time, representing the cohort of borrowers whose first loan repayments came due between October 1, 2006 and September 30, 2007, and who defaulted before September 30, 2008. Some 3.3 million borrowers entered repayment during this time, and more than 225,300 borrowers went into default. They attended 5,776 participating institutions. "The economic downturn likely had a significant impact on the borrowers captured in these rates," Duncan said.

Briefing on National Default Rates
The "Briefing on National Default Rates" in Microsoft Power Point format and Portable Document Format (PDF). The presentation includes a graph of the cohort default rates over the past two decades, the number of schools that have been subject to sanctions due to their default rate, a comparison of FY 2007 rates to the FY 2006 and FY 2005 rates, and a breakdown of default rates by institution type.

FY 2007 Official Cohort Default Rates Distributed Sept. 14
Eligible domestic and foreign schools enrolled in the Electronic Cohort Default Rate (eCDR) process were sent FY 2007 Official Cohort Default Rates and accompanying documentation via the Student Aid Internet Gateway (SAIG). School not enrolled in eCDR may download their cohort default rate and accompanying Loan Record Detail Reports from the National Student Loan Data System (NSLDS). The time period for challenging the FY 2007 Official Cohort Default Rates begins on Tuesday, Sept. 22 for all schools.

Availability of Electronic Cohort Default Rate Appeals Process (eCDR Appeals) Release 2.2
The Department announced the availability of Release 2.2 of the Electronic Cohort Default Rate Appeals process (eCDR Appeals) for the FY 2007 official season. The application allows schools to electronically submit these challenges and adjustment requests during a cohort default rate cycle, and allows guaranty agency, Direct Loan Servicing Center, and Federal Student Aid personnel to electronically view and respond to these challenges and adjustment requests. The application tracks the entire life cycle of each challenge/adjustment request from the time the case is submitted until the time a decision is made and the case is closed.

Cohort Default Rate Guide for Lenders and Guaranty Agencies for FY 2007
This guide contains information about the Fiscal Year 2007 cohort default rates for originating lenders, current holders, and guaranty agencies participating in the FFEL Program. The Higher Education Act requires the Department to publish the cohort default rates of lenders, subsequent holders, guaranty agencies and Colleges and Universities participating as a lender in the FFEL Program. This guide provides the student loan industry with information on the calculation of the cohort default rates.

COD Processing Update (9/11/09)
The COD Processing Update includes COD News, Reports and Data Requests, Resolved Issues, Resolved Issues In Clean Up, and Current Issues. A new edition of the COD Processing Update is posted on the COD Web site on business days when there is a change to the previously posted edition and each Friday.

Release of Policies and Procedures Manual Guidance
The Department of Education announces the availability of "A Guide to Creating a Policies and Procedures Manual." This guide will assist schools in creating and revising written documentation about how they comply with federal regulations pertaining to the administration of the Title IV programs. The guide features activities designed to help a school meet the minimum general requirements with regard to documented policies and procedures.

NCES Updates College Navigator with New Data
The National Center for Education Statistics (NCES) has updated the College Navigator Web site to include all the new data items required by the Higher Education Opportunity Act. The update includes new financial aid categories, federal loan data by type, default rates, and a new Multi-Year Tuition Calculator. The College Navigator site makes the latest data from the Integrated Postsecondary Education Data System (IPEDS) accessible to students and parents.

GEN-09-11: Minor Prior Year Charges
Generally, the Higher Education Act requires that current year Title IV funds be used only for current year charges. On Nov. 1, 2007, the Department published final regulations amending the cash management provisions that allow institutions to use current year Title IV funds to pay for minor prior year charges. The purpose of this Dear Colleague letter is to clarify several issues that have been raised with respect to compliance with those regulatory provisions.

Additional TEACH Grant Closeout Information for the 2008-09 Award Year
In a May 29, 2009 Electronic Announcement, the Department provided TEACH Grant Closeout information for the 2008-09 Award Year. This announcement provides additional information to supplement the previous guidance. As a reminder, to be considered successfully closed out, a school must have an ending cash balance of $0 and total net unbooked disbursements of $0, as reflected on its TEACH Grant School Account Statement (SAS) report. The processing deadline to submit records is 8:00 P.M. (ET) on Wednesday, Sept. 30, 2009.

2009 Federal Student Aid Conference Information
The Federal Student Aid conference is scheduled for December 1 - 4 in Music City USA - Nashville, Tennessee.  This year's conference will focus on the significant changes that will impact the Title IV Programs over the next year.  These include the transition to the Direct Loan Program, FAFSA Simplification and the new Perkins Loan Program, among others. This letter provides an update on this year's Federal Student Aid Conference.

FY 2007 Official Cohort Default Rates Release Scheduled for Sept. 14
On September 14, 2009, the Department plans to release the FY 2007 Official Cohort Default Rates to all eligible schools. After the Department releases the official rates, it will post an Electronic Announcement on the Information for Financial Aid Professionals (IFAP) Web site. All schools, both domestic and foreign, enrolled in the Electronic Cohort Default Rate (eCDR) process will receive their FY 2007 Official Cohort Default Rate and accompanying documentation electronically via their Student Aid Internet Gateway (SAIG) mailbox.

FEDERAL REGISTER

Notice of Establishment of Negotiated Rulemaking Committees
The Department announces its intention to establish two negotiated rulemaking committees to prepare proposed regulations under Title IV of the Higher Education Act. Each committee will include representatives of organizations or groups with interests that are significantly affected by the subject matter of the proposed regulations. We request nominations for individual negotiators who represent key stakeholder constituencies that are involved in the student financial assistance programs authorized under Title IV of the HEA to serve on these committees. The Department must receive nominations for negotiators to serve on the committees on or before Sept. 25.

Reminder of Perkins Loan Master Promissory Note Update Status
The current Perkins Loan Master Promissory Note (MPN) expired on June 12 and the updated version of the has not been cleared by the Office of Management and Budget (OMB). The Department of Education provided guidance to remind schools that the current Perkins MPN -- with the June 30, 2009 expiration date -- remains valid for use until the revised Perkins MPN has been approved by OMB and made available to schools.

Federal Perkins Loan Default Reduction Assistance Program (DRAP)
The Default Reduction Assistance Program (DRAP) assists schools in bringing defaulted Perkins Loan borrowers into repayment. The Department mails a letter, using the Department of Education's letterhead, to a borrower identified by a school as being in default on repayment of a Perkins Loan. This letter informs the Perkins Loan borrower of the serious consequences of default and encourages him or her to contact the school to initiate repayment arrangements. The intent of DRAP is to get the defaulted Perkins Loan borrower back into repayment before the account goes to a collection agency.

COD Processing Update (9/4/09)
The COD Processing Update includes COD News, Reports and Data Requests, Resolved Issues, Resolved Issues In Clean Up, and Current Issues. A new edition of the COD Processing Update is posted on the COD Web site on business days when there is a change to the previously posted edition and each Friday.

Law Enforcement Officials Announce Results of Million Dollar Student Loan Fraud Prosecution Initiative
Steven Phillips, age 38,of Huntington, West Virginia, was sentenced to 18 months imprisonment, and ordered to make restitution totaling $344,908.00 following his guilty plea conviction on federal student loan fraud charges arising out of a scheme in which Phillips was alleged to have used the identities of innocent third parties to apply for more than $340,000 in federal educational benefits. Dennis Pfannenschmidt, United States Attorney for the Middle District of Pennsylvania, stated that the conviction of Steven Phillips is only the latest success in an on-going law enforcement initiative aimed at ensuring integrity in federal education programs. This initiative has been spearheaded by the United States Department of Education, Office of Inspector General, and the Pennsylvania Higher Education Assistance Agency (PHEAA), throughout the Commonwealth of Pennsylvania.

U.S. DEPARTMENT OF EDUCATION

Implementation of New Web Site for Total and Permanent Disability Discharge
A new Web site has been implemented for the Total and Permanent Disability (TPD) Discharge process. Borrowers seeking a disability discharge of their FFEL Program loans, Direct Loan Program loans, Federal Perkins Loan Program loans, and Teacher Education Assistance for College and Higher Education (TEACH) Grant service obligations will find complete information at the new TPD Discharge Web site.

2009-10 EDE Technical Reference (September 2009 Update)
Federal Student Aid announces the posting of the updated 2009-10 Electronic Data Exchange (EDE) Technical Reference. The EDE Technical Reference provides programmer specifications, record layouts, and other detailed information for schools or other organizations that need to design software systems to interface with the U.S. Department of Education's application processing system. The September 2009 update includes revisions to the Record Layouts section and the Overview section.

FEDERAL REGISTER

Proposed Information Collection Request: 2010-11 FAFSA
The Secretary of Education requests comments on the FAFSA for the 2010-11 award year. Much of the Department's recent improvements have focused on FAFSA on the Web which maximizes 'skip logic' and previously submitted FAFSA data, to dramatically reduce applicant's burden. For 2010-11, FAFSA on the Web and the Pre-filled FAFSA will be further improved by the implementation of significant enhancements facilitated by a Web technology upgrade. The Department has also simplified the paper application process by grouping like questions together; incorporating previously supplemental worksheets into the application; improving the layout of the form; and clearly delineating between student and parental questions. Interested persons are invited to submit comments on or before Nov. 3, 2009.