TASFAA-TN President's Blog

Getting Your Hands DRT-Y: Reflections on Year Two of the FAFSA and the IRS Data Retrieval Tool

Mon, 14 May 2012 22:30:20 GMT

Getting Your Hands DRT-Y: Reflections on Year Two of the FAFSA and the IRS Data Retrieval Tool

Linda Peckham, Senior Training Strategist, Great Lakes Higher Education Corporation and Affiliates

When Norman Caito first learned of the requirement that aid applicants pull their IRS data into their 2012-13 FAFSA data online, he was encouraged. “I was thrilled with the concept that I’d be able to review accurate application data early in the awarding cycle,” said Caito, Director of Financial Aid Operations and Services at the University of San Francisco, “At USF, verification of application data is critical to our mission of getting the right funds to the right students.”

The process is enabled by the Data Retrieval Tool (DRT), which was designed to pull actual tax return data into the FAFSA to make it easier on families to complete the applicationundefinedand to ease the verification process for aid administrators. Although the DRT was available in the 2011-12 application cycle, it was not mandatory. Effective with the 2012-13 processing cycle, the Department of Education adjusted the verification requirements to include that certain elements from the FAFSA could only be verified with DRT data, or through the use of an official IRS tax transcript submitted by the applicant.

Caito and other aid executives have learned the hard way that the regulation may have had the best of intentionsundefinedto simplify verification processes and reduce potential financial aid fraudundefinedbut its implementation has been challenging. Successful adoption of the process has required patience and out-of-the-box thinking, as well as some labor-intensive work-arounds when families are unable to successfully transfer their IRS data to the FAFSA.

Leslie Limper, Director of Financial Aid at Reed College, shares Caito’s observations. “Verification is very important here at Reed, so we communicated the new information about the DRT to families early and encouraged them to use it.”

Limper discovered that most families in her applicant pool followed their instructions faithfully and were happy to comply with the new process. However, continued snags between the IRS, the Central Processing System, and sometimes even the U.S. Postal Service resulted in process failures and lag times that have impacted aid offices’ ability to review and verify information in a timely manner. Limper adds: “The things we found out about how to really make this process work, we learned on our own. As a result, we’ve been adjusting our processes and dates all year long to accommodate families and the processing challenges we’ve encountered.”

Susan Fischer, Director of Student Financial Aid at the University of Wisconsin-Madison, says the new process has presented a new “balancing act between administrative burden and good customer service to families.” Her team spent many hours revising processing and verification requirements at the beginning of the year to ensure that their office could meet processing deadlines and help families with the new approach. “We are dancing as fast as we can,” says Fischer, who cautions fellow aid administrators to find the most efficient way to verify data and disburse aid prior to the academic year.

According to Caito, Limper, and Fischer, some of the most common problems that families encounter with the DRT include:

IRS data not being available for transfer within the 2-3 calendar days that had been promised (thus FAFSA processing was delayed).
Delays in receiving IRS transcripts when requested because of address match issues.
DRT or transcripts not being available to those who owed money to the IRS for 2011.
Delays in the availability of either the DRT or the transcript request for taxpayers who filed towards the end of the cycle in April.

To reduce some of the administrative burden caused by processing delays, the Department of Education recently adjusted its guidance to allow schools to use paper tax returns to verify data for filers “who have unsuccessfully attempted to use the DRT or obtain a transcript” until July 15^th. But many schools are continuing to ask families to use the tool or the transcript anyway. “The process is here to stay and we’d rather have families stay on this path whenever possible,” says Heather McDonnell, Associate Dean of Financial Aid and Admissions at Sarah Lawrence College.

Thinking ahead to next year, aid colleagues suggest the following tips to help better prepare your applicants for the DRT or transcript request process:

Clearly explain the DRT process to parents on your initial verification document or institutional application and ask them to “check off” which process they intend to use (DRT, transcript request, or non-tax filer status). Use this data to help track application results in your FAMS system and send targeted follow-up messages to families as needed.
Remind parents that the DRT or transcript request process works faster if they file their tax returns electronically, rather than by paper.
Inform joint tax filers that the IRS will only recognize data transfer requests from the filer whose name is first on the tax return and/or whose IRS PIN is being used to identify the IRS record. As an example, if the mother is helping the student file the FAFSA, but is not listed first on the parental joint tax return, and attempts to access and complete the IRS data transfer site, the IRS will neither recognize nor approve the data transfer.
Remind families that although FAFSA guidance indicates that the DRT or the transcript should be available around three weeks after they have filed, this timeframe is extended towards the end of the federal tax deadline in April. If FAFSA filers wait until April to file their returns, they can expect that the DRT or transcript request will take up to six weeks to process.
Explain that when requesting a paper transcript, the filer’s mail address must exactly match what the IRS system has on file. In cases where the postal service has abbreviated addresses or the filer has moved, the IRS may delay sending out a transcript until the issue is resolved.

###

Verification Relief Update - FYI

Mon, 16 Apr 2012 18:41:07 GMT

Publication Date: April 16, 2012

DCL ID: GEN-12-07

Subject: Acceptable Documentation for Verification

Summary: This letter updates the guidance provided to institutions concerning the documentation they must obtain to verify income and tax information.

Dear Colleague:

As of mid-April 2012, over two million students and parents have successfully used the IRS Data Retrieval Tool, making the 2012-2013 FAFSA verification process easier and quicker for them and reducing the administrative burden on thousands of institutions. In addition, hundreds of thousands more applicants have received and submitted to their schools IRS Tax Return Transcripts. As the April tax deadline approaches, we are aware that some students and families may not be able to immediately use the FAFSA-IRS Data Retrieval Tool or to obtain IRS Tax Return Transcripts needed to complete the verification process primarily because of the large volume of tax returns coming in at this time of year.

In the limited set of cases where an aid applicant, who has filed a tax return and attempted unsuccessfully to use the IRS Data Retrieval Tool or to obtain IRS Tax Return transcripts, needs a timely alternative for meeting the 2012-2013 verification requirements, institutions may, until July 15, 2012, use a signed copy of the relevant (i.e., applicant, spouse, or parent) 2011 IRS Tax Return (Form 1040, 1040A, or 1040EZ, as appropriate) as acceptable verification documentation for the 2012-2013 award year.

After July 15, 2012, institutions must comply with the acceptable documentation requirements included in the July 13, 2011 Federal Register notice and in DCL GEN-11-13.

The Department will require some institutions to obtain verification documentation in compliance with the current acceptable documentation requirements for a sample of the institution’s students whose information was verified using a paper copy of a tax return.

As noted, more than two million applicants and parents have successfully used the IRS Data Retrieval Tool to directly transfer IRS information into their FAFSA, vastly simplifying the process of applying for financial aid. Consequently, it remains important for institutions to communicate to all applicants that using the tool -- either when initially completing a FAFSA or by using the corrections functionality of FAFSA on the Web -- provides them with the fastest, easiest, and most secure solution for meeting verification requirements.

We remain committed to our goal of enhancing the verification process and will continue to work with the financial aid community toward that goal.

Sincerely,

David A. Bergeron

Deputy Assistant Secretary for

Policy, Planning, and Innovation

Office of Postsecondary Education

Borrower boot camp: Get your graduates in repayment shape with these five tips

Thu, 05 Apr 2012 13:39:13 GMT

Borrower boot camp: Get your graduates in repayment shape with these five tips

Doug Savage, TG Senior Regional Account Executive

Say you had the chance to send next semester’s graduates through a “basic training” in loan repayment - a regimen that taught them not only the essentials of responsible repayment, but offered tips on safeguarding their finances in a tough economy. What would you include in the course? How would you help borrowers focus on lean living, building financial muscle, and preparing for the endurance test that is, in essence, repayment?

Here is an “exercise plan” designed to suggest to borrowers a successful path to loan repayment. You could include many things in such a plan; this version offers just an example. Consider adapting these suggestions for your own campus needs, using the information as a supplement to exit counseling, or including it in future communications by mail or email.

Build your budget muscle - Strong, well-planned budgets do the heavy lifting for short- and long-term fiscal needs. To make sure income is put to “healthy” use, borrowers will need to establish a budget that takes adversity into consideration - a lay-off or prolonged job hunt, for example. There are numerous online calculators and off-the-shelf personal finance software applications that make creating and using a budget simpler. The more borrowers can anticipate and plan for their expenses in a budget - and adhere to budget requirements with the occasional splurge as a reward - the better off they’ll be.
Watch those spending calories - The temptation after getting a job and jumping several income brackets is to overindulge. Graduates used to a student’s Spartan existence may want to upgrade lifestyles without preparation; that is, without setting a spending plan. Instead of buying heedlessly, which can leave borrowers vulnerable to credit problems, they should devise a simple spending plan of purchases matched to income “calories” that takes into account long-term life goals. Such a plan can help borrowers cut unnecessary expenses and focus on saving.
Track loan “weight” via NSLDS - For a “weight scale” view of where borrowers stand with regard to repayment, the National Student Loan Data System (NSLDS) website (http://www.nslds.ed.gov/nslds_SA/) is invaluable. The site won’t be up-to-the-minute with loan amounts and statuses - for that, borrowers will have to contact individual servicers. But the site does offer a central place to track loan calories burned and find contact information for all loan holders. The site can be especially useful for borrowers with split loans.
Set a long-distance goal with a repayment plan - Half the battle with any lengthy endeavor like repayment is setting a goal that is appropriate given need and circumstance. The standard repayment plan is not always the best for some borrowers, given dramatic changes in income or a period of time without employment. In such cases, borrowers may do well to consider Income-Based Repayment or another plan that takes into account fluctuations in salary.
Talk to your repayment coaches, a.k.a., servicers and guarantors - Servicers and guarantors can offer guidance and information to borrowers in tough financial straits. They can also connect borrowers to such repayment options as forbearance and deferment, and explain the pros and cons of loan consolidation.

For help

For more suggestions on what to include in your basic training content for borrowers, contact your colleagues in the field, including guarantors. Guarantors work in all phases of the life of the loan and will likely have materials and ideas on what borrowers should keep in mind as they begin repayment.

Doug Savage is a senior regional account executive with TG. You can reach Doug at (800) 252-9743, ext. 6711, or by email at doug.savage@tgslc.org. Additional information about TG can be found online at www.tg.org.

Is Income-Based Repayment the Best Option for My Students?

Fri, 16 Mar 2012 02:44:40 GMT

Is Income-Based Repayment the Best Option for My Students?

You’ve heard a lot about Income-Based Repayment, or IBR, but is it a one-size-fits-all solution for every student loan borrower? Below are some things to consider as you advise your current and former students on this repayment option.

IBR Has Benefits

Under current provisions, the benefits of IBR include a lowered monthly payment amount, currently capped at 15 percent of the borrower’s discretionary income, and forgiveness of any balance that remains after 25 years and 300 payments. If the borrower is eligible for Public Service Loan Forgiveness, that forgiveness may take place after just 10 years. Additionally, if the borrower’s IBR payment does not cover the interest accruing on any subsidized loans, the government will pay the remaining interest for up to three consecutive years from the date the borrower begins IBR.

IBR Also Has Drawbacks

IBR can be more expensive for the borrower in the long run. The lowered payments can cost the borrower more interest over the life of the loan, thoughundefinedin most casesundefinedthe increase in interest will be less than the late fees and collection costs of a defaulted loan. Also, if the borrower’s income rises to the point that they no longer qualify for the lowered IBR payment, their payment will return to the standard payment level, and the borrower will begin to make more progress toward paying down their balance.

Identify Borrowers Who Benefit Most from IBR

While IBR isn’t the right option for every borrower, it is a plan that may work well for those with lower earnings, relative to their debt, looking for an affordable payment based on their income and family size. It is also a good option for borrowers entering public service careers, as they could also take advantage of Public Service Loan Forgiveness, and receive loan forgiveness sooner.

Not Every Borrower is Eligible

To qualify for IBR, borrowers must demonstrate a partial financial hardship. This means that their annual student loan payment amount is more than 15 percent of the difference between adjusted gross income and 150 percent of the poverty line for their state and family size. If the calculated IBR payment is lower than the borrower’s payment under the 10-year standard repayment plan, they qualify.

Not Every Loan Type is Eligible

IBR-eligible loans include FFELP and Direct Stafford, Grad PLUS, and Federal Consolidation loans, as well as Perkins loans included in a FFELP or Direct consolidation loan. However, Parent PLUS loans, consolidation loans that include a Parent PLUS loan, private and alternative loans, and defaulted loans are not eligible.

IBR Forgiveness Amounts Will Be Taxed as Income

As the regulations stand now, the forgiveness amount will be taxed as income. There has been legislation proposed to change this, but it has not made progress in congress since its introduction.

Changes to IBR Are on the Way

New borrowers, on or after July 1, 2014, will be eligible for two new IBR provisions. First, their payment will be limited to only 10 percent of their discretionary income, rather than the current 15 percent. Secondly, they will be eligible for forgiveness after 20 years, instead of 25.

The IBR Application Must Be Completed Annually

Borrowers must apply for IBR every year in order to receive reduced payments, and the application can be tricky to complete correctly. Some tips to help ease the process:

To offer proof of adjusted gross income, borrowers can submit a copy of their tax return or complete a 4506-T, or, if they are non-tax-filers, they may be required to submit other forms of documentation.
When married borrowers who file their taxes jointly, both spouses’ income and federal loan debt will be considered in the eligibility calculation. If they file separately, only the applicant’s income and debt will be considered.
The family size includes the borrower, his or her spouse, children, unborn children, and others who live with and receive greater than 50 percent of support from the borrower during a given year. The applicant must recertify this number each year, or it will default to a family size of one.

Understanding IBR is the key to making sure that this option is matched with the borrowers who can benefit most. IBR may not be the best option for every borrower, but for some it can be an ideal solution for making student loan payments more manageable in the long run.

Dave Bowman is a Regional Marketing Director with Great Lakes, serving schools in TASFAA. You can reach Dave at (888) 685-1604, or by e-mail at DBowman@glhec.org. Additional information about Great Lakes can be found online at www.mygreatlakes.org

Letter/Request from Claude Presnell

Wed, 14 Mar 2012 18:34:39 GMT

Dear Financial Aid Colleagues:

When Governor Bill Haslam released his proposed FY 13 budget to the General Assembly it he included an increase of $6.6 million for the Tennessee Student Assistance Award (TSAA). This is more than double last year’s request. $3.2 million is being recommended in the State’s core services budget and another $3.4 million is proposed in general appropriations. If the additional grant funds are appropriated, over 3,000 additional students could be served for this upcoming fall semester.

Additionally, both the recommended appropriations are in the ‘recurring’ column rather than the ‘non-recurring’ or one-time column. Consequently, if the improvements are adopted, it increases the program’s annual base funding for future budget considerations.

In order to help ensure that these improvements are passed by the Tennessee General Assembly, we need our TSAA recipients to send a ‘thank you’ notes for the grant program to their elected officials. Please do all you can to send your students to the Tennessee Student Aid Alliance website in order to send their notes of thanks electronically. It’s a very easy process that will only take a few moments of their time but may result in millions added to the TSAA program.

Here’s the TN Student Aid Alliance link: http://savestudentaid.tnsaa.org/5819/take-action-support-tennessee-students/

Or go to www.tnsaa.org and click on Action Center.

Please feel to contact me!

Claude

Dr. Claude Pressnell

President

Tennessee Independent Colleges and Universities Association

1031 17th Avenue South

Nashville, Tennessee 37212

615-242-6400, ext. 201 direct voice line

615-242-8033 fax

Reviewing the Accuracy of Your Cohort Default Rate Reports

Tue, 07 Feb 2012 16:56:02 GMT

Reviewing the Accuracy of Your Cohort Default Rate Reports

By Dave Bowman, Regional Marketing Director

Great LakesEducational Loan Services, Inc

Recently, the first draft three-year cohort default rates (CDRs) were sent to schools. The switch from a two-year rate to a three-year rate means that this calculation includes an additional year of defaulted loans. The draft calculation includes the percentage of borrowers who first entered repayment between October 1, 2008, and September 30, 2009, who subsequently defaulted on or before September 30, 2011. With the additional year included, almost every school is seeing a higher three-year CDR.

The draft three-year rates are for informational purposes only and are not challengeable. However, the Department of Education has provided them to give schools a preview of what to expect once the three-year rates become real. While not every school will need to challenge the information used to calculate their three-year rate once they are officially released, every school should want to ensure that its newly-released rate is accurate and become familiar with the challenge/appeal process before next year. Take time to make sure that correct information was used to calculate your school’s CDR, so that your official rate, when released, is as accurate as possible.

Know what the cohort default rate package contains.

The cohort default rate package comes to you in an electronic format and arrives via the Student Aid Internet Gateway, and is issued in early February of each year. You will find a cover letter and two types of Loan Record Detail Reports (LRDR), the extract-type and the reader-friendly version. The extract-type file is best used for loading CDR data into a database while the reader-friendly version is best used for schools that wish to simply view the information.

Know how to read the LRDR.

Many of the challenges that are submitted to the Department every year are unwarranted. Save your school time and effort by ensuring you are reading your school’s LRDR correctly.

The LRDRundefinedcreated for the Department by the National Student Loan Data System (NSLDS) using the information that schools, data managers, and various offices within the Department have submitted to the NSLDSundefinedlists specific information for each loan that was included in your school’s CDR.

In addition to demographic information about your school, you will be able to find information about the borrowers included in the CDR calculation, and the date the CDR was calculated.

Be aware of the codes used by the Department on this form, including:

•· Loan type codes

•· Enrollment status codes

•· Usage codes

•· Claim reason codes

•· Loan status codes

•· Academic level codes

•· Data manager codes

•· Guarantor/Servicer

More information about theses codes is available at http://ifap.ed.gov/DefaultManagement/guide/attachments/Ch2pnt3LRDRpt2.doc, page 2.3-7 and 8.

Know what actions to take.

Save a copy of all of your school’s LRDRs:

•· To use in the event of a challenge, adjustment, or appeal

•· To compare draft and official rates

•· To compare rates from one fiscal year to the next

Also, take the time to review the accuracy of the data used to calculate the draft CDR. Compare the information in the LRDR to your school records to ensure that the students on your system match those listed in the report.

Take action if you find an error.

If any of the information used in the draft rate is inaccurate, your school should file the appropriate challenge. Be aware that a school that fails to challenge the accuracy of its draft CDR may not contest the accuracy of the data in the official CDR. Incorrect data can be resolved by taking these steps:

•· Locate the Guarantor/Servicer number on the LRDR, and use it to obtain the name and address of the data manager who is responsible for the loan. You will need to have this information in order to submitting a challenge, adjustment, and/or appeal. Be aware that there could be a cost for review of your information by a servicer.

•· There are several categories of errors, and it is important to find the correct category for the error you have found. Note that incorrect data challenges apply to the draft rate, while adjustments and appeals apply to the official rate. More information on these categories can be found at http://ifap.ed.gov/DefaultManagement/CDRGuideMaster.html.

•· You must use the eCDR Appeals System to submit a draft rate challenge. The eCDR process includes registering for a user account, creating an organizational and individual profile, creating a new case, uploading the applicable LRDR extracts, adding detail, and submitting the case.

•· If additional documentation is requested, you will be contacted via email by the data manager or the Department of Education, depending on the type of challenge or appeal.

Analyze your default management plan

Always take the time to look at the borrowers from your school who have defaulted. What do borrowers who have defaulted have in common, and how do they compare to your broader student body? Think about what steps you could take to lower your default rate, so that your school can avoid sanctions and benefit from a lower CDR, and your former students can avoid the consequences of default while building a more solid financial future.

Dave Bowman is a Regional Marketing Director with Great Lakes, serving schools in TASFAA. You can reach Dave at (888) 685-1604, or by e-mail at DBowman@glhec.org. Additional information about Great Lakes can be found online at www.mygreatlakes.org

Tips for getting students thinking about repayment while they’re still in school

Thu, 12 Jan 2012 03:05:55 GMT

Tips for getting students thinking about repayment while they’re still in school

Doug Savage, TG Senior Regional Account Executive

With student debt balances higher than usual and a job market that remains challenging, worsening cohort default rates are a worry on many campuses.

Raul Lerma, interim executive director of financial aid and veterans affairs at El Paso Community College, says that his school’s numbers have been bucking the trend. Here are some tips he offers based on his experience. These three methods all involve ways schools can engage current students now to actively prevent default later.

Start repayment now

“The basic challenge,” he says, “is to help the students understand that they really do have to pay this money back. Sometimes it doesn’t seem real to them that they actually will need to make payments at some point.

“Therefore, it’s a good idea to get them making payments while they’re still in school. That might just be $50, but it’s still a good idea, because it creates two benefits. First, it chips away at the amount a little, and that’s obviously good, but the second benefit is more important: that tiny payment creates the habit and makes repayment real for them.”

Use in-person entrance counseling

Another strategy Lerma uses to manage default rates is to require in-person entrance counseling every academic year. “A lot of schools do this counseling online,” he says, “or it’s in-person the first year and online after that. But I think in-person counseling makes more of an impact, so we require it every academic year.”

Besides the impact of being in a session with an actual instructor, Lerma notes that there is also the benefit of teachable moments as students can ask questions, with an expert to answer at that moment.

Reinforce with brochures or even intermediate sessions

Lerma says that his office has also been employing a tactic of reinforcing loan repayment concepts often. “Whenever a student comes in our office for any reason,” he says, “we ask if they have loans. If they do, we give them an informative booklet.” The idea is that it might take several attempts to gain the student’s deep attention and have them engage the subject matter. Reinforcing the material with the brochure boosts the likelihood that students will read and understand the important information they need to grasp.

He adds, “We’re also considering the idea of getting students in for intermediate counseling sessions to reinforce what they may have forgotten from entrance counseling.”

In short, getting students to start repaying their loans while still in school (even if it’s only $50 per month), using in-person rather than online entrance counseling, and reinforcing the importance of repayment at every opportunity, may be effective ways to keep cohort default rates under control. The results at El Paso Community College seem to confirm that they are.

Doug Savage is a Senior Regional Account Executive with TG serving schools in TASFAA. You can reach Doug at (800) 252-9743, ext. 6711, or by email at doug.savage@tgslc.org. Additional information about TG can be found online at www.TG.org.

Union University and Fall Training Workshop

Wed, 09 Nov 2011 16:16:44 GMT

Good Glorious Morning TASFAA Colleagues,

I am in Jackson, TN with approximately 60 of our colleagues for the first of the three training events in our Fall series. Brent Tener (Vanderbilt) and Michelle Baird (Lincoln Memorial) are leading the discussion on SAP.

Looking forward to hearing from our friends at TSAC and the Department of Ed later today! If you haven't had a chance to register, we will be in Nashville on Monday the 14th and Knoxville on Tuesday the 15th.

See some of you at the workshops and some of you at FSA in Las Vegas - Lester and Tricia are going to the real Vegas - not just CookeVegas - which we affectionately call our home of Cookeville!

Drop me an email if you are going so we can make plans for a TN lunch/dinner while there!

Have an awesome day!!!

Lester

TASFAA President

Transition Updates

Wed, 09 Nov 2011 00:36:24 GMT

Congratulations are in order for all our following colleagues!

Trevecca Nazareene University is happy to announce that Kylie Pruitt has rejoined the Financial Aid staff as Associate Director of Financial Aid (she was previously Director of FA at Aquinas). Angie Register, Financial Aid Counselor is expecting a new baby in January.

Columbia State: Brenda Burney became the new FA Director at the end of April (formerly at Art Institue of TN). Bill McCord (who formerly was at Nashville State then Morehead State) is back in TN as the Technical Coordinator at Columbia State. Tammy Noragon is now Scholarship Coordinator (previously with Witchita State University). Rakida Sims is the FA Coordinator for the Columbia State Williamson County Campus (previously with Art Institute of TN).

South College: Kim Cintron became Mrs. Jeff Long on a beautiful October day (October 21, 2011).

Rhodes College: Kim Prestridge (Assoc. Director of FA) will be giving birth to a son (Zachary) scheduled Friday Nov. 11th via C-section, and will return to work in January.

MTSU: MTSU's scholarship staff moved to a separate office in April. The new Scholarship Office is located in James Union Building, room 206. The Financial Aid Office has two new employees: Trina Wilson joined MTSU in May and is the Assistant Director responsible for the loan programs. Joanie Walker joined MTSU full-time in September as a Coordinator after serving as the lead person in the school's Call Center this past summer. Leann Eaton has moved up to Associate Director of Operations.

FSA Conference

Wed, 02 Nov 2011 16:30:12 GMT

The annual FSA conference is upcoming Nov. 29 - Dec. 2, 2011 in LAS VEGAS! See www.fsaconferences.ed.gov for more information.

Not too late to register for Fall Training Workshops

Wed, 02 Nov 2011 16:27:54 GMT

It's not too late to register for one of the TASFAA/TSAC Fall Training Workshops to be held Nov. 9th (Jackson-Union University), Nov. 14th (Nashville-Lipscomb University) and Nov. 15th (Knoxville-South College). See the Fall Training tab (left) for details and registration info.

Save Student Aid - Posted by Ron Gambill

Tue, 25 Oct 2011 19:06:27 GMT

----------------------

We are at a turning point on federal student aid funding and I am writing to ask you to sign on to a simple statement of support that calls on our lawmakers to Save Student Aid.

Because of our nation's historic economic downturn, we've already seen $30 billion cut from our federal student aid programs. The Joint Select Committee on Deficit Reduction, also known as the Super Committee, has until Nov. 23 to come up with a plan to reduce the nation's debt. Federal student aid could very well be on the chopping block and students need your voice to defend the programs that grant access to postsecondary education.

As you know, this is an incredibly challenging time for students all over the country, including those you serve on a daily basis. The recession has driven more students back to campus to improve their skills and job prospects, and a lot of those students have higher economic needs. Meanwhile, federal and state governments have cut back their support. It is critical to preserve what financial aid is still available for deserving students so they can better qualify for the jobs that will help our economy grow.

As student aid administrators you see evidence of these situations everyday on your college campus. But Super Committee members and other members of Congress need to hear more-and they need to hear it from as many people as possible, particularly those of you who work directly with students.

That's why the Student Aid Alliance, a coalition of national higher education organizations representing thousands of campuses and millions of presidents, students, faculty and administrators has organized a campaign to Save Student Aid. The campaign will reach to out to all campus constituencies, encouraging grassroots involvement. As one of the founding members of the Alliance, NASFAA encourages you to join us in this campaign.

As the Super Committee's deadline nears, we need your help. Please sign our statement of support, expressing the opinion that for our country's short- and long-term economic health, student aid funding must be preserved. This is a simple and easy step to make your voice heard.

If you're interested in getting more involved after you've signed on, you'll see other options for actions you can take by visiting NASFAA's Save Student Aid Facebook campaign.

Your voice is powerful and students need it now more than ever. Please join your fellow administrators as well as the students from across the country in asking the Super Committee and our lawmakers to Save Student Aid.

Statement of Support link:

http://action.studentaidalliance.org/5371/save-student-aid-statement-support/

Dear Colleague GEN-11-17 submitted by Ron Gambill

Mon, 24 Oct 2011 14:54:12 GMT

Publication Date: October 20, 2011

DCL ID: GEN-11-17

Subject: Fraud in Postsecondary Distance Education Programs - URGENT CALL TO ACTION

Summary: The purpose of this letter is to provide guidance to address potential fraud in the Federal student aid programs at institutions of higher education that offer distance education programs. This letter provides an overview of the fraud schemes that the Department's Inspector General (IG) detected, and recommends immediate steps that institutions can take to detect and prevent fraud. In this letter, we also describe further actions that institutions can take and that the Federal government is committed to taking, including increasing technical assistance to institutions of higher education, the convening of a Department-wide task force on distance education fraud, and plans for recommending legislative and regulatory changes to address the relevant issues.

Dear Colleague:

We appreciate the efforts that institutions routinely take to protect the integrity of the Federal student aid programs. Some of the fraud described in this letter was detected as a direct result of vigilant efforts pursued by institutions that have implemented comprehensive internal controls and fraud detection measures. Despite these efforts, more needs to be done by all institutions to prevent, identify, and report suspected distance education fraud in the Federal student aid programs and enable the successful prosecution of offenders. As evidenced by our recent work with the community on program integrity, we are committed to being a strong steward of the taxpayer investment in the student assistance programs and to ensuring their integrity. For these reasons, the Department determined a swift response was necessary and, through this Dear Colleague Letter (DCL), we are asking for your continued partnership to eliminate this and other attempts to defraud the Federal st udent aid programs. It is imperative that institutions comply with all existing statutory and regulatory requirements to disburse aid only to eligible students, to identify and resolve discrepancies in student information, to ensure that all requirements regarding "regular student" status are met, and to report any suspected fraud to the Department's IG. In doing so, your efforts will help curb these abuses and ensure that Federal student aid is provided to needy students as intended.

On September 26, 2011, the Department's IG issued a report about fraud rings operating on distance education programs offered by institutions participating in the Federal student aid programs (http://www2.ed.gov/about/offices/list/oig/invtreports/l42l0001.pdf). The IG's report identified an increasing number of cases involving large, loosely affiliated groups of individuals (fraud rings) who conspire to defraud title IV programs through distance education programs. These fraud rings generally target institutions with low tuition in the context of distance education programs and involve a ringleader who:

Obtains identifying information from straw students - individuals who willingly provide the information - including some who were incarcerated, by promising financial gain.

Completes multiple financial aid applications using the information collected (name, Social Security number, date of birth, etc.).

Applies for admission under the institution's open admissions program, where little or no third-party documentation is required.

Participates in the amount of on-line interaction necessary to establish participation in the academic program and secure disbursements under an institution's procedures.

Once the ringleader has submitted the Federal student financial aid application and completed enrollment at the institution, the institution draws down Federal student aid funds, deducts the institutional charges assessed the straw student, and disburses the credit balances to the straw student by check or debit card. Straw students then give a portion of the proceeds to the ringleaders while keeping the remaining portion. If needed to secure disbursements under an institution's procedures, a ringleader may also participate as the straw student in sufficient academic work to appear to be an eligible student.

The IG's report found that complaints about distance education fraud rings are expected to continue, given that distance education is the fastest growing segment of higher education. Institutions offer the front line of protection and are essential to the Department's efforts to thwart fraud and protect taxpayer dollars. As you know, accrediting agencies are required to review the policies and procedures institutions have in place to verify the identity of the students enrolled in those courses and programs (34 CFR 602.17(g)). Affected institutions should follow these reviewed processes to help detect efforts to defraud the Federal student aid programs. We also expect institutions to take steps necessary to ensure that students are academically engaged prior to disbursing Title IV student aid funds. If students do not begin attendance, Title IV funds must be returned (34 CFR 668.21(a)). We strongly encourage institutions that suspect potential fraud to question an appl

icant's intent to seriously pursue the academic program by requiring the student to demonstrate that he or she has an academic purpose in order to establish eligibility for Federal student aid. If a student does not demonstrate academic purpose or resolve other concerns regarding identity or eligibility, the institution should not disburse Title IV funds.

Detecting fraud before funds have been disbursed is the best way to combat this crime. We therefore seek the help of institutions and advise that you take the following additional actions to identify and prevent the kind of student aid fraud identified in the IG's report:

Implement automated protocols that monitor information in your student information data system to identify instances where a number of students -

Use the same Internet Protocol (IP) address to complete and submit an admissions application.

Use the same IP address to participate in the on-line academic program.

Use the same e-mail address to submit an admissions application.

Use the same e-mail address to participate in the on-line academic program Appear to reside in a geographic location that is anomalous to the locations of most students in the program.

Modify your disbursement rules for students participating exclusively in distance learning programs, which would immediately reduce the amount that fraud ring participants can receive. Institutions have the authority to:

Delay disbursement of Title IV funds until the student has participated in the distance education program for a longer and more substantiated period of time (e.g., until an exam has been given, completed, and graded or a paper has been submitted).

Make more frequent disbursements of Title IV funds so that not all of the payment period's award is disbursed at the beginning of the period.

Our recent program integrity rules include two additional requirements that help identify potential fraud. First, we now require institutions to have procedures in place to address what may appear to be a fraudulent claim of high school completion (34 CFR 668.16(p)). Since we now collect high school completion information on the Free Application for Federal Student Aid (FAFSA), institutions can use these procedures to help detect potential fraud. In addition, in the future, we may in our annual verification notice (which we publish in the Federal Register pursuant to recently-revised verification regulations found in Subpart E of 34 C.F.R. Part 668) specify certain additional items that would need to be verified, including high school diploma information and applicant identity for all or some of an institution's Title IV applicants who are engaged in distance education. The selection of these applicants for verification may be based on common addresses and other patterns and discrepancies noted in the OIG's investigations. Institutions are encouraged to verify identity of individuals whenever the institution, through use of similar methods and triggering events, finds cause for doing so as a best practice for preventing fraud.

The Department is taking this issue very seriously and has established a Department-wide anti-fraud ring task force, chaired by Jeff Baker, Director, Policy Liaison and Implementation in Federal Student Aid, to address the issues raised in the IG's report as well as emerging future threats. If you have comments and suggestions that you believe will help us address fraud rings or have specific concerns that do not rise to a level that you believe appropriate to refer to the IG, please contact the task force at FraudTaskForce@ed.gov or call 202-377-4340.

Finally, we have added sessions to the upcoming FSA Conference in Las Vegas scheduled for November 29-December 2, 2011, to more fully discuss the IG report and possible institutional responses. We plan to release additional guidance after those sessions and will also consider suggestions for additional statutory and regulatory changes to help institutions combat fraud and protect students and taxpayers from fraudulent activity.

Sincerely,

James W. Runcie

Chief Operating Officer

Federal Student Aid

Eduardo M. Ochoa

Assistant Secretary

for Postsecondary Education

Happy Financial Aid Day

Wed, 19 Oct 2011 13:29:24 GMT

Today, October 19, 2011 is nationally recognized as Financial Aid Day. As President of this association it brings me great honor to wish each member, colleague and friend a Happy Financial Aid Day.

Please take a moment to celebrate what we have accomplished over the last 40 years but more importantly the last 2 years and the changes to our profession. We have handled that transition with class and dignity, said goodbye to a number of friends and colleagues in the lending industry - and welcomed some of them back to our side of the fence!

Enjoy this day and make sure to update your social media sites to reflect today's events - we're having a party here at Tech! Enjoy!!!

Fall Training Events

Wed, 12 Oct 2011 19:45:19 GMT

TASFAA FALL TRAINING WORKSHOPS

Hello friends and colleagues! TASFAA and TSAC are once again partnering together to provide training opportunities for financial aid administrators that will take place in three locations across the state.

http://www.tasfaatn.com/Fall

Workshop West Union University Jackson, TN November 9^th

Workshop Central Lipscomb University Nashville, TN November 14^th

Workshop East South College Knoxville, TN November 15^th

Updates

Wed, 28 Sep 2011 14:16:47 GMT

Some Fall Training News - will share more in the next few weeks about when and where.

We plan to hold three training workshops. These will be drive in one day sessions. The sessions will include a discussion on SAP using NASFAA training materials and and afternoon session with Wood Mason, DOE on loan reconciliation and DL Q & A.

If you would like to assist by presenting or sitting on panel group - please send me your name and I will get you involved!

Lester

Dept. of Educ. Gainful Employment Letter to College Presidents submitted by Jan Lassiter

Mon, 26 Sep 2011 19:59:33 GMT

We have been asked by the Department of Education to share this letter recently sent to College Presidents with our members.

Click the link to view the attachment

Attachment 1: Gainful Employment Letter http://www.sasfaa.org/ListLock/fDhc6faES3SRZrs9.pdf

Another Bartnicki Bulletin submitted by Ron Gambill

Wed, 21 Sep 2011 15:47:50 GMT

Clock Hour Definition

Under 34 CFR 668.8(k)(2) the Department formally defines what a clock hour program is for undergraduate programs. If your program meets the definition, then, for Title IV purposes, it is considered a clock hour program and all clock hour requirements apply. HOWEVER, policy recently clarified that 668.8(k)(2) does NOT apply to non-GE programs. So it would apply to nondegree programs at all school types and, at for-profit institutions, it would also apply to their degree programs.

I am stressing this since I know within my region there are some public schools that have been converting degree programs to clock hour programs for Title IV purposes since it met the new clock hour definition. Based on policy’s new guidance those degree programs at our public institutions would not have to administer Title IV aid in clock hours since they are not considered GE programs.

Gainful Employment

This is a reminder that ED will be hosting an upcoming Webinar on adding new GE programs. This training will take place on September 26, 2011. Please see the Dear Colleague Letter ANN-11-19 for more information.

Also, don’t forget that schools will be able to start reporting GE data through NSLDS as of September 26, 2011. Please make sure your school will be able to gather and report to ED all the required GE data by October 1 (2006/2007-2009/2010 data) and November 15 (2010/2011 data), respectively. For more information about reporting processes and timeframes please see the GE webpage at http://www.ifap.ed.gov/GainfulEmploymentInfo/index.html.

Net Price Calculator

Please don’t forget that all required schools must have a net price calculator up and running on their website by October 29, 2011. Please see the Department’s NPC webpage for further assistance - http://nces.ed.gov/ipeds/resource/net_price_calculator.asp

FSA Handbook Changes

Based on some recent questions I have been receiving, this is just a reminder that our publication group often moves items around or removes information within the FSA HDBK to clarify data or enhance existing sections. Please remember that just because a line item has been removed does not necessarily mean that the rule no longer applies. It may have been redundant, or moved to a section better suited to describe the topic. Any true changes in guidance will usually be accompanied by a CHANGE sign or a NEW sign designation. And as always, staying up-to-date with the entire FSA HDBK is a must to properly administer aid.

The FISAP is Due

Mon, 19 Sep 2011 09:12:44 GMT

For quite some time I have been running around my office yelling the FISAP is due, the FISAP is due - in your mind's eye see chicken little yelling this if it helps! Well now my fined feathered friends and coworkers, the FISAP is due! We just got our SIS system upgrade that included the FISAP tables yesterday evening at 5 pm and so I am up at this bright hour of 4 AM working on it. I know a lot of you have this and many other things on your plate right now so let me leave you with a few words I find particularly helpful...

"Enjoy the little things in life, for you just may realize too late that they were the big things!"

Enjoy today!

Lester

Bartnicki Bulletin

Fri, 16 Sep 2011 19:05:26 GMT

Hope everyone's September is going well. I am in the middle of renovating a kitchen and all of a sudden financial aid does not seem as difficult as picking out colors, tile, paint, appliances, etc. And somehow our final decisions all seem to be what my wife wanted in the first place. Of course that might be my subconscious kicking into survival mode and leading me down the path of least destruction.

Anyway, I have a few topics I wanted to share. For those schools with undergraduate programs subject to the new clock hour definition please pay careful attention to some updated guidance provided below.

Clock Hour Definition

I am stressing this since I know within my region there are some public schools that have been converting degree programs to clock hour programs for Title IV purposes since it met the new clock hour definition. Based on policy's new guidance those degree programs at our public institutions would not have to administer Title IV aid in clock hours since they are not considered GE programs.

Gainful Employment

Also, don't forget that schools will be able to start reporting GE data through NSLDS as of September 26, 2011. Please make sure your school will be able to gather and report to ED all the required GE data by October 1 (2006/2007-2009/2010 data) and November 15 (2010/2011 data), respectively. For more information about reporting processes and timeframes please see the GE webpage at http://www.ifap.ed.gov/GainfulEmploymentInfo/index.html.

Net Price Calculator

Please don't forget that all required schools must have a net price calculator up and running on their website by October 29, 2011. Please see the Department's NPC webpage for further assistance - http://nces.ed.gov/ipeds/resource/net_price_calculator.asp

FSA Handbook Changes

I hope you have a great weekend.

DAVE

David Bartnicki

Federal Training Officer

ED/FSA/Atlanta