Application Processing System Update

1

• Application Processing System Update
• Marilyn LeBlanc
• Director of Application Processing
• Michele Brown
• Director of Applicant Products
• and Customer Service

2
Todays Topics

• Implementation of the 2005 Higher Education
  Reconciliation Act (HERA) for 2006-07 and 2007-08
• FAFSA
• Application Processing System
• 2007-08 Application Processing System Changes
• Paper FAFSA
• Paper SAR, online SAR, and ISIR
• FAFSA on the Web and the Federal Student Aid PIN
  Web site
• FAFSA on the Web Worksheet and Student
  Application Resources
• Application Edits
• NSLDS Financial Aid History Information
• Important Dates

3

• Implementation of HERA Provisions
• 2006-07 and 2007-08

The FAFSA The Application Processing System
4
HERA of 2005

• Other interest sessions that include HERA
  information
• Session 5 - ACG and National SMART Grant Student
  Eligibility and Academic Year Issues
• Session 6 - ACG and National SMART Grant
  Transfer Student and Rigor/Major Issues
• Session 10 - General Provisions Update Changes
  made by the HERA

5
HERA of 2005

• Other interest sessions that include HERA
  information
• Session 11 - Return of Title IV Funds HERA
  Policy and Implementation Changes
• Session 15 - NSLDS Changes for 2006 and 2007
• Session 17 - ACG/SMART Reporting from CPS to
  COD Funding Levels and Institutional Reports
• Session 20 - FFEL and Direct Loan Policy Update

6
HERA Implementation Approach and Considerations

• Many provisions effective beginning in 2006-07
• Implementation approach and considerations
• Limit amount of change to 2006-07 Central
  Processing System, the FAFSA, SAR and ISIR
• Implement changes as quickly as possible
• Provide customer software providers enough time
  for development
• Leverage existing functionality wherever possible

7

• New Grant Programs
• Implementation for 2006-07 and 2007-08

8
HERA of 2005

• HERA Created Two New Grant Programs
• Academic Competitiveness Grant (ACG)
• National Science and Mathematics Access to Retain
  Talent (SMART) Grant
• Implementation goal was to design a process to
  help schools identify students who are
  potentially eligible for ACG

9
Academic Competitiveness Grant2006-07
Implementation

• On July 1, 2006, sent letters and e-mails to all
  2006-07 applicants (Web and paper filers) who
  appeared to meet minimum ACG requirements
• E-mails and letters informed applicants how to
  provide ACG information
• Web site
• Federal Student Aid Information Center (FSAIC)

10
Academic Competitiveness Grant2006-07
Implementation

• Web site screens applicants (U.S. citizen, Pell
  eligible) and asks Did or will student complete
  high school program of study after 1/1/05?
• If student answers yes to this question, Web
  displays additional ACG questions
• FSAIC Customer Service Representatives will
  follow similar process on the phone to collect
  ACG data

11
Academic Competitiveness Grant2006-07
Implementation

• When ACG information is submitted
• Student Aid Report (SAR), with comments, sent to
  student
• Central Processing System (CPS) notifies all
  institutions of students potential ACG
  eligibility via
• Comment codes on ISIR, and
• Flat file

12
Academic Competitiveness Grant2006-07
Implementation

• ISIRs sent in new pushed message class
  (IGAA07OP) to all institutions listed on the
  transaction
• Flat file sent in new message class (ED2007OP)
• Includes SSN, Name ID, ISIR Transaction Number,
  students name and date of birth, answers to ACG
  questions, rigorous program code

13
Academic Competitiveness Grant2006-07
Implementation

• On or after July 1, 2006
• Students who apply using
• Online Application FAFSA on the Web screens
  applicants for potential eligibility and gives
  applicants option to provide ACG information
• Paper Application No change to paper 2006-07
  FAFSA filers sent comment on SAR directing them
  to Web site or FSAIC to provide ACG information
• FAAs can enter ACG information in FAA Access to
  CPS Online

14
Academic Competitiveness Grant2007-08
Implementation

• FAFSA on the Web and FAA Access to CPS Online
  will screen applicants for potential
  eligibility and give students and FAAs option to
  provide ACG information
• Paper filers who appear to be potentially
  eligible for ACG will be sent a comment on the
  SAR directing them to FSAIC to provide additional
  information over the phone

15
Academic Competitiveness Grant2006-07 and
2007-08 Implementation

• SARs, with comments, sent to students
• ISIRs sent in existing message class IGSA0XOP or
  IGSG0XOP to all institutions listed on the
  transaction
• Flat file sent in new message class (ED200XOP)
• Student ACG data may be viewed on
• FAFSA on the Web
• FAA Access to CPS Online

16

• Need Analysis Changes
• Implementation for 2006-07 and 2007-08

17
Need Analysis Changes

• Simplified Needs Test (SNT) and automatic zero
  Expected Family Contribution (EFC) Criteria
• Active Duty Military Independence Criterion
• Treatment of Qualified Education Benefits
• Treatment of Small Business Assets
• 2007-08 Income Protection Allowances (IPA) and
  Asset Assessment Rates

18
SNT and Auto Zero EFC Criteria

• SNT and automatic zero EFC
• Only parents type of tax return filed considered
  for dependent students
• Means-tested federal benefit program an
  alternative to tax return requirement
• Automatic zero EFC only
• Income threshold increased to 20,000

19
SNT and Auto Zero EFC Criteria 2006-07
Implementation

• On May 19, 2006, two changes made to CPS
• For dependent students, updated system to look
  only at type of tax return parent filed to
  qualify for SNT or automatic zero EFC
• Increased automatic zero EFC income parameter in
  system from 16,000 to 20,000 for
• Parents of dependent students
• Independent students with dependents other than a
  spouse

20
SNT and Auto Zero EFC Criteria 2006-07
Implementation

• CPS reprocessed students who applied for aid
  prior to May 19th and now meet new HERA criteria
  for SNT or automatic zero EFC
• Applicants who applied on or after May 19 had
  new criteria applied to their application data

21
SNT and Auto Zero EFC Criteria 2006-07
Implementation

• New means-tested federal benefits program
  criteria
• Students may now qualify for SNT or automatic
  zero EFC if they or their parents (or anyone in
  the household)
• Received benefits from a means-tested federal
  program
• Meet relevant income thresholds

22
SNT and Auto Zero EFC Criteria 2006-07
Implementation

• 2006-07 Web and paper FAFSA not revised to
  collect means-tested federal benefit information
• If institution learns that member of students
  household received a means-tested federal
  benefit, correct to Yes FAFSA question 34 or 72
  (was student or parent eligible to file a 1040A
  or 1040EZ?)

23
SNT and Auto Zero EFC Criteria 2007-08
Implementation

• New SNT/automatic zero EFC criteria (tax return
  and auto zero income parameter) rolled forward
  into 2007-2008 CPS
• Means-tested benefits questions will be asked on
  both 2007-08 paper and online FAFSA

24
Treatment of Qualified Education Benefits

• Qualified Education Benefits
• Consistent treatment
• Now treated as an asset
• 2006-07 Implementation
• No change to paper or Web instructions
• 2007-08 Implementation
• Paper and online FAFSA instructions for
  investment net worth questions will describe how
  to report qualified education benefits

25
Treatment of Small Business Assets

• Exclude family-owned and controlled small
  businesses from asset net worth
• 2006-07 Implementation
• No change to paper or Web instructions
• 2007-08 Implementation
• 2007-08 paper and online FAFSA instructions for
  investment questions describe how to report
  family-owned and controlled small businesses

26
IPA and Asset Assessment Rates2007-08 Only

• Increase in Income Protection Allowances
• From 2,200 to 3,000 for dependent students
• From 5,000 to 6,050 for independent students
  (single) without dependents and married students
  (without dependents) with a spouse enrolled at
  least ½ time
• From 8,000 to 9,700 for independent (married)
  students without a dependent whose spouse is not
  enrolled
• Decrease in Asset Assessment Rates
• From 35 to 20 for dependent students and
  independent students without dependents
• From 12 to 7 for independent students with
  dependents other than a spouse

27

• Student Eligibility
• Implementation for 2006-07 and 2007-08

28
Definition of an Independent Student

• Students serving on active duty in the U.S. Armed
  Forces for other than training purposes are now
  considered independent

29
Definition of an Independent Student2006-07
Implementation

• No change to paper or online FAFSA
• If institution becomes aware that an otherwise
  dependent student is serving on active duty it
  must submit a dependency override to CPS
• CPS will recalculate EFC using independent
  student formula

30
Definition of an Independent Student2006-07
Implementation

• New SAR comment (comment code 119) informing
  dependent students of new active duty military
  independence criterion
• Comment on SARs sent to dependent students as
  part of May 19, 2006 reprocessing
• Comment on SARs for all dependent student
  applications and corrections submitted on or
  after May 19th

31
Definition of an Independent Student2007-08
Implementation

• Paper and online FAFSAs will include new
  dependency status question in Step 3

32
Drug Offenses

• Student eligibility provision modified students
  lose eligibility for federal student aid only if
  the drug-related offense for which they were
  convicted occurred during a period of enrollment
  for which the student was receiving Title IV aid

33
Drug Offenses2006-07 Implementation

• On July 1, 2006, revised
• Drug question wording and instructions on FAFSA
  on the Web
• Drug Conviction Worksheet on the Web
• FSAIC automated response system
• Question on paper FAFSA not reworded, but paper
  filers will receive SAR with revised paper Drug
  Conviction Worksheet

34
Drug Offenses2006-07 Implementation

• All students who applied on or before June 30,
  2006 (paper and Web) and answered Yes (either
  2 - partial ineligibility, or 3 - full
  ineligibility) to drug question, or left question
  blank
• Received e-mail or letter about change to drug
  conviction provision
• Instructed to
• Complete revised Drug Conviction Worksheet
• Correct their response to the drug question, if
  necessary

35
Drug Offenses
2007-08 Implementation

• Both paper and online FAFSA drug offense wording
  updated
• Help text on FAFSA on the Web updated

36

• 2007-08 FAFSA
• and
• Application Processing System Changes

37
2007-2008 Application Processing System Changes

• Processing Statistics
• Paper FAFSA
• Paper SAR, Online SAR, and ISIR
• FAFSA on the Web
• FAFSA on the Web Worksheet
• Toolkit/Student Resources

38
2007-2008 Application Processing System Changes

• Federal Student Aid PIN Web Site
• Renewal Application Process
• FAA Access to CPS Online
• New Application Edits
• NSLDS Aid History Information
• Important 2007-08 Dates
• 2007-08 Web Demonstration Site

39
Application Volumes 2005-06 and 2006-07
Processing Statistics

• 12,012,071
• 2005-06 FAFSAs processed as of October 29, 2005
• 12,151,736
• 2006-07 FAFSAs processed as of October 29, 2006

Thats a 1.16 increase
40
Application Processing Statistics Paper vs.
Electronic Filers through Week 44

• For 2006-07
• 94.3 of applications filed electronically
• 5.7 of applications filed on paper FAFSA

41
Application Processing Statistics

• Applications received by State
• For 2005-06 and 2006-07
• Available in Excel and PDF formats on IFAP
• http//ifap.ed.gov/eannouncements/0816AppsbyState.
  html
• Applications received by school
• For 2005-06 and 2006-07
• Available in Excel and PDF formats on IFAP
• http//www.ifap.ed.gov/eannouncements/0816AppsbySc
  hool.html

42
The 2007-08 Paper FAFSA

• 60-day public comment period ended on 8/7/06
• Final 30-day comment period ended on 9/18/06
• FAFSA approved on 9/29/06

43
The 2007-08 Paper FAFSA

• 2007-08 FAFSA
• Yellow for Students
• Pantone 108 CVU
• Purple for Parents
• Pantone 263 CVU
• New packaging
• Cover and Notes pages 1 through 6
• Form pages numbered 7 through 10
• Expanded instructions, one page of Tips

44
The 2007-08 Paper FAFSA

• States that do not specify priority deadline
  dates have been moved to the top of the list on
  front page

45
The 2007-08 Paper FAFSA

• Enrollment status question 25 reformatted and
  will follow grade level in college?
• Notes for question 25 describe enrollment status
  choices

46
The 2007-08 Paper FAFSA

• Work-study and loan questions (27 and 28 on
  2006-07 FAFSA) combined and reformatted into
  single question (26) to create space for new
  questions required by HERA
• Notes for question 26 describe work-study and
  loan choices

47
The 2007-08 Paper FAFSA

• Four college and housing code choices
• Colleges re-numbered on the paper FAFSA to 97a
  97h
• Web continues to include six college and housing
  code choices

48
The 2007-08 Paper and Online SAR

• Paper SAR
• Yellow in color
• DRN in top right hand corner of SAR same
  position as online SAR
• BLANK printed when answer left blank, but is
  required
• SAR information on the Web
• Changing return address to FederalStudentAidFAFSA_at_
  cpsemail.ed.gov
• Changing e-mail subject line to FAFSA Results
  2007-2008 SAR

49
2007-08 Institutional Student Information Record
(ISIR)

• 2007-08 ISIR record layout posted on 8/4/2006
• ISIR will follow order of 2007-2008 paper FAFSA
• Includes new data elements for new FAFSA
  questions and reformatted responses to questions
• Date fields incremented

50
2007-08 Institutional Student Information Record
(ISIR)

• Will include up to six school and housing codes
• Will continue to include new ACG Comment Codes
  (267 271)
• ACG flat file will be sent along with ISIRs
• No new message classes
• 2007-08 ISIR in flat file format only (no XML
  ISIR)

51
2007-08 FAFSA on the Web

• Year of minimal change
• Applicants must enter SSN twice to verify
  accuracy
• Implement Automatic Zero EFC and SNT skip logic
  enhancements for new means-tested federal
  benefits questions
• New stand-alone add/modify a school
  functionality added
• Will partially mask preparers SSN
• Common look and feel for Federal Student Aid
  Suite of Application Products

52
2007-08 FAFSA on the Web Worksheet

• Added question numbers to match paper FAFSA
  numbers
• Changes correspond to changes made on FAFSA on
  the Web
• Reordered to accommodate new questions and new
  Web flow logic
• Header updated to reflect common look and feel
• Available for order now on FSAPubs Web site
  http//www.ed.gov/offices/OSFAP/services/fsapubsho
  me.html
• Scheduled to begin shipping at the end of October

53
2007-08 Student Application Resources

• Options available include
• FAFSA on the Web Poster
• Start Here Federal Student Aid Bookmark
• One side in English
• One side in Spanish
• FAFSA Tips Brochure

54
2007-08 Student Application Resources

• We continue to promote online filing
• We have included messaging to help students
  understand they should apply beginning January 1
• We have also included a fill-in box where
  counselors and other community partners can fill
  in their respective state filing deadlines

55
2007-08 Student Application Resources

• Redesigned FAFSA on the Web Tips Card, sized to
  fit in a standard business envelope
• FAFSA Tips provides a list of steps for applying
  online and information on how to get free help
  online, by phone, or in person
• The bookmark tag line - Financial Aid for
  College Starts Here.  In recent focus groups, we
  heard that the mention of dollars for college
  resonates with students and parents, thus the
  reference to 80 billion in aid annually

56
2007-08 FSAPubs Web site

• Completely re-designed home page, now consistent
  with the latest look and feel
• Publication descriptions updated to describe the
  intended audience
• Publication-specific alerts inform users of
  companion items whenever appropriate
• When logged in, postsecondary institutions can
  view their FAFSA filing statistics

57
2007-08 PIN and PIN Web site

• Renamed to Federal Student Aid PIN Web site
• Users now required to enter their SSN twice on
  new PIN applications
• PIN e-mail address updated to FederalStudentAidPIN
  _at_cpsemail.ed.gov
• Common look and feel for the Federal Student Aid
  PIN Web site

58
2007-08 Renewal Application Process

• In October 2006, reminders were sent to schools
  to have students update postal and e-mail address
  with CPS
• Renewal Reminders will be sent in early January
  2007 (instead of once in November and again in
  February)
• Students with a valid e-mail address will receive
  e-mail reminders
• If no e-mail address or e-mail is undeliverable,
  paper reminder letter will be sent to applicant
• Will not convert Do you want work-study or
  loans? questions

59
2007-08 FAA Access to CPS Online

• New look and feel matches other FSA school web
  sites
• Entry screens changed to mimic changes to paper
  FAFSA

60
2007-2008 Edit Changes

• Transactions resulting from FAA Adjustment
• New school code cannot be added to transaction
  that contains an FAA Adjustment Flag
• Other schools cannot view transactions in FAA
  Access to CPS Online containing an FAA Adjustment
  done by another school

61
2007-08 Edit Changes

• New warning edits if
• Parents or independent students tax return
  status is Will not file and sum of earned
  income is within required range to file a return
• Parents AGI equal to students AGI
• Dependent students AGI equal to Worksheet A
• Parent or student reports receiving TANF or SSI
  but does not report an amount on Worksheet A

62
Financial Aid History Information from NSLDS

• NSLDS will send ACG and National SMART Grant data
  to CPS
• Up to 3 ACG and National SMART Grant records will
  be included on pre-screening record
• New ACG and National SMART Grant Overpayment
  Contact Information will be added
• New Grad PLUS loan status codes of D3 and GB
  added
• Grad PLUS MPN flag added to the pre-screening
  process
• A change in MPN status will generate a
  post-screening record to CPS any change will
  generate a post screening reason code of 16

63
Financial Aid History Information from NSLDS

• Value of F (Fraud Conviction) added as a valid
  value for Pell, FSEOG, ACG, National SMART Grant
  and Perkins Overpayment flags
• Will be treated the same as a value of Y
• New post-screening reasons added
• 17-Fraud Conviction added
• 18-Fraud Conviction resolved
• Loan Status Codes FR and FD, and Loan Type
  Code F added

64
Important 2007-08 Dates

• October 2006
• 2007-2008 CPS Test System User Guide
• Summary of Changes for the Application Processing
  System 2007-2008

65
Important 2007-08 Dates

• November 2006
• SAR/ISIR Comment Codes and Text
• 2007-2008 EDE Technical Reference updated
  (including revised ISIR Layout)
• 2007-2008 ISIR Guide
• School Electronic Processing Guide
• Student Web Application Products Process Guide
• Federal School Code List
• December 2006
• 2007-2008 EFC Formula Guide

66
Important 2007-08 Dates

• January 2007
• January 1 FAFSA on the Web, Renewal FAFSA on
  the Web, Corrections on the Web available
• January 1 FAA Access to CPS Online
• January 2 Application processing system starts
  up

67
2007-08 Web Demonstration Site

• FAFSA on the Web and FAA Access demonstration
  sites available December 3, 2006
• To access sites, go to http//fafsademo.test.ed.go
  v
• Enter
• User Name eddemo
• Password fafsatest
• Click on FOTW or FAA Access to CPS Online Demo
  System button
• Available through December 2007

68
Support for Students, Parents, and FAAs

• Federal Student Aid Information Center
• Phone 800/4FED-AID (800/433-3243)
• TDD/TTY services 800/730-8913
• E-mail Studentaid_at_ed.gov
• Representatives are available
• Monday through Friday, 8 a.m. to 12 Midnight,
  Eastern Standard Time
• Saturday, 9 AM 6PM, Eastern Standard Time
• Extended Weekend Hours, based on time of year and
  need

69
CPS/SAIG Technical Support

• We appreciate your feedback and comments.
• We can be reached at
• Phone [phone]
• TDD/TTY services 800/511-5806
• E-mail CPSSAIG_at_ed.gov
• Representatives are available Monday through
  Friday, 7 a.m. to 7 p.m., Central Standard Time

70
Contact Us!

• We welcome your feedback, comments and questions.
• We can be reached at
• Marilyn LeBlanc, Director of Application
  Processing
• [phone]
• Marilyn.LeBlanc_at_ed.gov
• Michele Brown, Director of Applicant Products and
  Customer Service
• [phone]
• Michele.Brown_at_ed.gov

71
Application Processing Sessions

• Session 7 - Citizenship Issues Handling
  Situations for Applicants with Undocumented
  Parents
• Session 18 - EDExpress Changes for HERA and
  2007-2008
• Session 21 - Responding to Student Inquiries
  Tools and Techniques
• Session 24 - FAFSA Simplification What Does
  That Mean and How Do We Get There?
• Session 27 - Using Return of Title IV Funds on
  the Web A Hands-On Overview
• Session 28 - FAA Access to CPS Online for New
  Users (Hands-On)

72
HERA Dear Colleague Letters

• GEN-06-02 (3/10/2006)Enactment of HERA 2005
• GEN-06-03 (3/14/2006)-Correction to GEN-06-02
• GEN-06-04 (4/5/2006)-ACG and National SMART Grant
• GEN-06-05 (4/27/2006)-Changes to student and
  institutional eligibility
• GEN-06-06 (5/2/2006)-National SMART
  Grant-eligible majors
• GEN-06-08 (5/3/2006)-Implementation guidance for
  the ACG and National SMART Grant
• ANN-06-05 (5/30/2006)-HERA Training Opportunities
• ANN-06-06 (6/20/2006)-Implementing HERA provisions

73
HERA Dear Colleague Letters

• Interim Final Regulations (7/3/2006)-ACG and
  National SMART Grant
• GEN-06-11 (6/21/2006)-Notice of HERA changes to
  foreign schools
• HERA FAQs (7/14/2006) General
  Eligibility/Change to Eligibility
• Interim Final Regulations (8/9/2006) - HERA
• GEN-06-15 (8/25/2006)-National SMART Grant
  Revised List of Eligible Majors
• ANN-06-10 (9/01/2006)-HERA Training Announcement
  one day workshops
• ANN-06-11 (10/12/2006)-2006-2007-FSA Coach-Newly
  updated edition of FSA Coach contains HERA
  requirements

74
HERA Electronic Announcements Operational Guidance

• 5/5/06-High-level overview of operational
  implementation
• 5/11/06-Upcoming CPS Reprocessing
• 5/17/06-CPS Reprocessing Reminder
• 5/19/06-Updates to R2T4 on the Web and Archival
  of PC Product
• 5/23/06-Notice of Reprocessing Issue and
  Resolution
• 6/7/06-First Draft of 2007-08 FAFSA available for
  comment
• 6/14/06-Student Eligibility requirement for
  drug-related offenses

75
HERA Electronic Announcements Operational Guidance

• 6/21/06-Notice of issue with May 24, 2006
  reprocessing
• 6/23/06-Additional reprocessing scheduled for
  June 23, 2006
• 6/23/06-Updated guidance for Direct PLUS Loans
  for Graduate and Professional Students
• 6/26/06-R2T4 PC Product archival reminder
• 6/26/06-Update to 2006-07 SAR Comment Codes and
  Text Guide
• 6/27/06-2006-07 Revised EDE Technical Reference
• 6/30/06-Final 2006-07 Drug Worksheets
• 6/30/06-R2T4 Worksheets

76
HERA Electronic Announcements Operational Guidance

• 6/30/06-Implementation Guidance ACG and
  National SMART Grant
• 7/13/06-Updates related to ACG recognized
  Rigorous Secondary School Program of Study
  requirement
• 7/17/06-Update to 2006-07 EFC Formula Guide
• 7/24/06-Update to 2006-07 ISIR Guide
• 8/1/06-ACG and National SMART Grant Initial
  Authorizations
• 8/7/06-Availability of enhanced R2T4 on the Web
  Application

77
HERA Electronic Announcements Operational Guidance

• 8/9/2006-Procedure for Fall 2006 adjustments to
  ACG and National SMART Grant Initial
  Authorizations
• 8/31/06-Availability of EDExpress 2006-07 Release
  3.0
• 9/1/06-Availability of DL Tools Release 6.0
  Enhancement for PLUS Loans for Graduate
  /Professional students
• 10/6/06-COD/HERA-related testing for the
  2006-2007 Award Year
• 10/6/06-Internal Fiscal Year Accounting Activity
  Performed for ACG and National SMART Grant
  Funding
• 10/11/06-R2T4 on the Web Data Edits Functioning
  Incorrectly on Post-Withdrawal Tab