Federal Student Aid

1
Federal Student Aid

• Software Developers Conference
• August 16, 2007

2
WELCOME
Katie Blot
3
Target State Vision
4
TSV Update Business View
5
TSV Update Technology View
6
Outcomes

• Improved alignment of systems with Federal
  Student Aid business processes, and reduced
  redundancy and complexity of interfaces among
  systems
• Improved consistency and quality of Person and
  Organization data through implementation of
  master data management
• Reduced redundancy and duplication of effort
  through use of shared assets (e.g., Security
  Architecture, Enterprise Portal, etc.)
• Improved security and streamlined processes for
  gaining access to Federal Student Aid systems and
  services
• Improved timeliness and accuracy of data through
  reengineered process flows and implementation of
  data standards

7
Progress to Date

• Three Key Areas
• Infrastructure
• Application Development
• Supporting Processes

8
Infrastructure

• Enterprise Portal
• Technical Proof of Concept Complete
• Infrastructure Deployment in Process
• Will Support Integrated Partner Management User
  Interface
• Next Step Internal Employee View
• Enterprise Services Bus
• Evolution of EAI
• Technical Proof of Concept Complete
• Infrastructure Deployment in Process
• Will Support Integrated Partner Management Data
  Interfaces
• Security Architecture
• Deployed, Currently Supporting Nine Applications
• Will Support New Participation Management Process
• On the Horizon
• Gateway

9
Application Development

• Integrated Partner Management (IPM)
• Requirements underway (near completion)
• Infrastructure deployment in process
• Operations and Maintenance contract awarded
• On the Horizon
• Person Data Management, Integrated Student View,
  Aid History Management, Application Processing,
  Collections

10
Key Supporting Processes

• Requirements Standards
• Development Standards
• Technical Standards
• Enterprise Data Management

11
Federal Student Aid Enterprise Development
Support Services
12
Need for Change in How We Deliver Development
Services

• Federal Student Aid has
• Grown its technical and process knowledge
• Made significant progress in establishing
  integrated processes for development projects
• Recognized a need for changes in the management
  of development projects that help achieve better
  results

13
Enterprise Development Support Services (EDSS)
Model
14
Agenda
Welcome 0830 am 0900 am Security 0900
am 1000 am Break 1000 am 1015
am Integrated Partner Management 1015am
1115 am NSLDS Update 1115 am 1145
am Lunch on your own 1145 am 0130
pm Common Origination Disbursement Update 0130
pm 0230 pm Central Processing System
Update 0230 pm 0330 pm Break 0330 pm
0345 pm Federal Update 0345 pm 0445
pm Round Table 0445 pm 0500
pm Closing 0500 pm 0515 pm
15
(No Transcript)
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Contact Information

• Katie Blot
• Chief Information Officer
• Phone [phone]
• Email Katie.Blot_at_ed.gov

17
SECURITY

• Bob Ingwalson

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(No Transcript)
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We Implement Security Based on Cost vs. Risk
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Defense in Depth

• Policy
• Personnel Security
• Physical Security
• Network Security
• Host based Security
• Application Security

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Application Development Security

• The Bad
• The Ugly
• The Good

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Application Development Security
The Bad -- Malicious Threat

• Know the Threat
• OWASP (http//www.owasp.org)
• SANS Top 20 (www.sans.org/top20)
• National Vulnerability Database
  (http//nvd.nist.gov)
• cgisecurity (http//www.cgisecurity.com)

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Application Development Security
The Bad -- Malicious Threat

• Know the Threat Hmmm?

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Application Development Security
The Bad -- Malicious Threat

• Cross Site Scripting
• What is Cross Site Scripting and how is it used?
• Prevention

25
Application Development Security
The Bad -- Malicious Threat

• SQL Injection
• What is SQL Injection and how is it used?
• Prevention

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Application Development Security
The Bad -- Malicious Threat

• Cookie Poisoning
• What is Cookie Poisoning and how is it used?
• Prevention

27
Application Development Security
The Ugly The Innocent User

• Code Mistakes
• Federal Student Aid has had them
• Results
• Prevention

28
Application Development Security
The Ugly The Innocent User

• Untrained Users
• Examples and outcomes
• Provide the training
• Rules of Behavior
• Annual refresher training

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Application Development Security
The Ugly The Innocent User

• Keyloggers
• What is it and how does it exploit a Web
  Application?
• It doesnt affect you right? think again!
• Some things to do about Keylogger activity

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Application Development Security
The Good Good Development

• Implement Prevention in Code
• Train Users
• Thorough Testing
• Use of Tools

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Application Development Security
The Good Good Development
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(No Transcript)
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Contact Information

• Name Robert Ingwalson
• Chief Security Officer
• Chief Information Office
• Phone [phone]
• Email Robert.Ingwalson_at_ed.gov

34

• BREAK

35
INTEGRATED PARTNER MANAGEMENT (IPM)

• Susan Stallard
• Joseph Policella, Perot Systems

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Agenda

• IPM Overview
• Implementation Schedule
• Where We Are Requirements
• What This Means to Our Partners
• Workbench Demonstration

37
IPM Overview

• New system that consolidates business functions
  currently being provided by multiple systems
• Lender Application Process (LAP)
• Electronic Application (eAPP)
• eZ-Audit
• Participation Management portion of SAIG
• Post Secondary Education Participant System
  (PEPS)
• Electronic Records Management (ERM)
• Technology modernization with associated
  benefits
• Single sign-on
• Consistent user experience
• Ease of use and navigation
• Increased Security
• Implemented in three releases with increasing
  functionality to reduce and/or eliminate risks

38
Implementation Timeline

• Release 1 April June 2008
• Implement Partner Eligibility Enrollment
• Legacy systems retired
• eAPP
• Participation Management
• Lender Application (LAP)
• Electronic Records Management (ERM)
• Release 2 July September 2008
• Implement Financial Statements and Compliance
  Audits submission
• Legacy system retired
• eZ-Audit
• Release 3 January March 2009
• Implement Partner Oversight functions
• Legacy system retired
• Post Secondary Education Participant System
  (PEPS)

39
Where We Are Requirements

• Requirements Conducted (January July 2007)
• Series of three Joint Application Design (JAD)
  sessions held with Federal Student Aid staff to
  gather requirements (January to April 2007)
• Extensive use of prototypes to assist in
  identifying and capturing requirements
• Additional breakout JAD sessions and meetings
  held with Federal Student Aid Subject Matter
  Experts to capture requirements for specialized
  areas such as foreign schools and financial
  partners
• Data Requirements (Data Management Migration)
• Technical Requirements

40
What This Means to Our Partners

• Provides a single entry point to sign up for
  services and maintain eligibility for the Title
  IV program
• Streamlines and simplifies through automation the
  process for communicating required notifications
  (paperless environment) to/from Federal Student
  Aid
• Provides Partners with on-line access to school
  status and eligibility information and proactive
  notifications
• Provides the capability for e-Signature on
  required applications and forms to establish
  enrollment and maintain eligibility
• Increases usage of the paperless environment in
  the processing of compliance audit and financial
  statement submissions

41
Key Workbench Concepts

• IPM Workbench will provide the foundation for
  single sign-on to Federal Student Aid systems
• Participation Management Services are
  consolidated with User Management
• Complex structures allow corporate entities to
  manage their subsidiaries with a single user
  experience
• Affiliations provide a mechanism to manage the
  data and features granted to servicing partners

42

• Partner Workbench Demonstration

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Partner Workbench Homepage
Header
Right Navigation
Left Navigation
Footer
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IPM User/Partner Management
User Profile Management for user contact
information
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IPM User/Partner Management
Security Architecture debarment check, default
loan check, password management and system
access.

• Participation Management allocation of services
  
• Concept of Affiliation
• Partner Users added via Partner Management
• Schools and Lenders add Servicer affiliations
• Servicers gain IPM identity and access
• Servicers DPA manages their own pool of users

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(No Transcript)
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Contact Information
Susan Stallard Project Lead Integrated Partner Management 202-377-3628 Susan.Stallard_at_ed.gov Molly Wyatt Project Director Integrated Partner Management 202-377-3358 Molly.Wyatt_at_ed.gov
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NSLDS UPDATE

• Pam Eliadis

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NSLDS Access

• Status of NSLDS user reinstatement
• Future process for enrollment
• Potential tools for oversight

50
Data Security and Data Exchange

• Dear Colleague Letter GEN 05-06
• NSLDS may not be used for marketing purposes
• Student/Borrowers permission is required
• Reminds users of Federal Student Aids
  enforcement obligation

51
Data Security and Exchange

• Audit Reports
• Every student look-up is tracked by User ID
• External Audit Security Reports
• Requested by Destination Point Administrator
• Number of look-ups by User ID
• Past 90 days
• Internal Audit Security Reports

52
Data Security and Exchange

• No Data Mining
• Completely Automated Public Turing Test to Tell
  Computers and Humans Apart (CAPTCHA) tool
• Monitoring top 20 users and organizations

53
Additional Security Measures

• All users accessing the NSLDSFAP Web site are now
  required to enter all three identifiers for a
  borrower Social Security number (SSN), date of
  birth, and first name in order to view any
  financial aid data.

54
NSLDS Reengineering

• FFEL Data Flows
• Project update
• Community involvement
• Future meetings

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(No Transcript)
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Contact Information

• Name Pam Eliadis
• Director
• National Student Loan Database System (NSLDS)
• Phone [phone]
• Email Pam.Eliadis _at_ed.gov

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• LUNCH ON YOUR OWN

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COD UPDATE

• Wood Mason

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COD Topics

• March Release Updates
• MPN Updates
• Operational Concerns
• Testing
• Tools and Training

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March Release Updates

• Inconsistent Identifiers
• Edit 16 Changes
• Additional Unsubsidized Indicator
• Award Discharges MPN Expiration Date
• Verification W Cut-off Deadline Date
• Eligibility Used, Total Eligibility Used for ACG,
  SMART
• Debt Management Collection System Updates

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Inconsistent Identifiers

• New Edits only applicable to award years
  2008-2009 and forward

Edit Edit Code Block Message Award Type Affected
147 R Person Identifier inconsistency for PLUS Award for Graduate/Professional Student DL-PLUS
148 W Person First Name inconsistency for a PLUS Award for Graduate/Professional Student DL-PLUS
149 R Person Award Identifier inconsistency for PLUS Award for Parent of a Dependent Undergraduate Student All
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Edit 147
Inconsistent Identifiers

• If the Student SSN matches the Borrower SSN and a
  Grad PLUS award exists on COD

Student
ltLastNamegt
ltBirthDategt
ltSSNgt
Borrower
ltLastNamegt
ltBirthDategt
ltSSNgt
MUST MATCH
Edit Edit Code Block Message Award Type Affected
147 R Person Identifier inconsistency for PLUS Award for Graduate/Professional Student DL-PLUS
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Edit 148
Inconsistent Identifiers

• If the Student SSN matches the Borrower SSN and a
  Grad PLUS award exists on COD

MUST MATCH
Student
ltFirstNamegt
Borrower
ltFirstNamegt
Edit Edit Code Block Message Award Type Affected
148 W Person First Name inconsistency for a PLUS Award for Graduate/Professional Student DL-PLUS
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Edit 149
Inconsistent Identifiers

• If the Student SSN doesnt match the Borrower SSN
  and a Parent PLUS award exists on COD
• Student and Borrower Date of Birth (DoB) change
  must not match
• Student DoB change must not match what exists on
  COD for Borrower DoBAND no Borrower DoB change
  tag is submitted
• Borrower DoB change must not match what exists on
  COD for Student DoBAND no Student DoB change tag
  is submitted
• This can be triggered by all award programs!

Edit Edit Code Block Message Award Type Affected
149 R Person Award Identifier inconsistency for PLUS Award for Parent of a Dependent Undergraduate Student All
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Edit 149 Example
Inconsistent Identifiers

• Borrower B created on COD for PLUS award
• Borrower B(Student B on Pell award) submits a
  Date of Birth change

Parent PLUS Parent PLUS
Student A 01/01/81
Borrower B 02/02/55
Pell Pell
Student B 01/01/81
X

• Borrower B Date of Birth now matches Student A -
  This will trigger Reject Edit 149!

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Edit 16 Changes

• Edit 16 has been divided into 4 new edits.
• Only applicable for award years 2008-2009 and
  forward

• Edit 16 will only be triggered for award years
  2007-2008 and prior

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Edit 16 Changes
Edit Edit Code Block Message Award Type Affected
150 R Award Incorrect Student Grade Level on a Direct Loan PLUS Award for Graduate/Professional Student DL-PLUS
151 R Person Invalid Student/Borrower SSN combination on a Direct Loan PLUS Award for Graduate/Professional Student DL-PLUS
152 R Person Invalid Student SSN change on a Direct Loan PLUS Award for Parent of a Dependent Undergraduate Student All
153 R Award Invalid Borrower SSN change on a Direct Loan PLUS Award for Parent of a Dependent Undergraduate Student All
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Edit 153 Example
Edit 16 Changes

• Borrower B created on COD for PLUS award
• Borrower B (Student B on ACG award) submits an
  SSN change

Parent PLUS Parent PLUS
Student A 111223333
Borrower B 777889999
ACG ACG
Student B 111223333
X

• Borrower B SSN now matches Student A - This will
  trigger Reject Edit 153!

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Edit 16 Changes

• A new edit will be added

Edit Edit Code Block Message Award Type Affected
159 R Award Incorrect Student Grade Level for a Parent PLUS award DL-PLUS

• Only applicable for award years 2008-2009 and
  forward

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Additional Unsubsidized Indicator

• ltDependencyStatusCodegt
• Required for all Direct Loans
• Valid values D and I
• Blank or other values will trigger Reject Edit
  996

• ltAdditionalUnsubsidizedIndicatorgt
• Required for Unsubsidized Direct Loans
• Valid values true or false
• Blank or other values will trigger Reject Edit 998

• Edit 994 will be triggered for missing tags

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New Edits
Additional Unsubsidized Indicator
Edit Edit Code Block Message Award Type Affected
154 R Award Dependency Status set to D and Grade Level greater than or equal to 6 DL
156 R Award Dependency Status set to I and Additional Unsubsidized Indicator set to true DL
157 R Award Sum of Award Amounts exceeds Base Annual Loan Limit DL
158 R Award HPPA Indicator set to true and Grade Level less than 6 DL
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Additional Unsubsidized Indicator

• ltDLLoanInformation LoanKey"1gt lt!Loan
  Information--gtlt/DLLoanInformationgt
• ltDLUnsubsidizedgt ltFinancialAwardYeargt ltCPSTransa
  ctionNumbergt ltFinancialAwardAmountgt ltLoanKeygt lt
  AdditionalUnsubsidizedIndicatorgt ltDependencyStatu
  sCodegt
• ltFinancialAwardNumbergt ltFinancialAwardIDgt ltFina
  ncialAwardCreateDategt ltDisbursementgt
  lt!Disbursement Information--gt lt/Disbursement
  gtlt/DLUnsubsidizedgt

Loan Key
Award
Disbursement
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Award Discharges, MPN Expiration Date

• Upon award discharge, the COD system will update
  associated MPN(s) as follows

Discharge Code Message MPN Expiration Dates Updated for.
D Death All MPNs for Borrower
G Unauthorized Signature/Unauthorized Payment MPN associated with specified loan
I Identity Theft MPN associated with specified loan
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Discharge Reversal
Recalculating MPN Expiration Date
If MPN associated with the discharged loan MPN Expiration Dates Will be recalculated as follows
Not linked to any loans with funded disbursements or is unlinked 365 days from MPN Received Date
Linked to any loan with funded disbursements 3,650 days from MPN Received Date
(Due to death) is linked to any awards with accepted and funded disbursements 3,650 days from MPN Received Date
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Discharge Reversal
Recalculating MPN Status
Condition(s) Condition(s) Updated MPN Status
New MPN Expiration Date lt Current Processing Date New MPN Expiration Date lt Current Processing Date Inactive
Recalculated MPN Expiration Date gt Current Processing Date MPN is linked to an award Active
Recalculated MPN Expiration Date gt Current Processing Date MPN not linked to an award Pending
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Verification W Cut-Off Date

• Applies to Pell Grant Verification W
• Created to prevent Verification W records from
  being accepted into the COD System after a
  specified date
• Verification W Cut-off Date is normally September
  30

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Verification W Cut-Off Date
Edit Edit Code Block Message Award Type Affected
114 R Disbursement Disbursement or Disbursement Adjustment received after Verification Status W Deadline Date Pell
145 R Award New Pell origination or award increase with Verification Status of W or invalid change to Verification Status submitted after Verification W cut-off date Pell
146 R Disbursement New disbursement or disbursement increase submitted after Verification W cut-off date Pell
existing
NEW
NEW
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Verification W Cut-Off Date

• For 2007-2008 Award Year and prior
• Once COD reduces a disbursement to zero due to
  Verification Status W, new Disbursement
  information changes to existing Disbursement
  information submitted with a Verification Status
  of W for that Award will trigger Reject Edit
  114.

For 2008-2009 Award Year and forward COD will
allow a school to increase the disbursement back
from zero without triggering Reject Edit 114
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Verification W Cut-Off Date

• For 2008-2009 Award Year and forward, after the
  Verification W Cut-off Date schools
• May NOT submit new Pell origination
• May NOT submit award amount increase
• May NOT submit new disbursement or disbursement
  increase
• If Pell award has Verification Status of W
• Additionally, schools may NOT change Verification
  Status to W after the Verification W Cut-off
  Date.

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Eligibility Used, Total Eligibility Used
For ACG and National SMART Grant

• Eligibility Used (EU) and Total Eligibility Used
  (TEU) will be calculated differently for ACG and
  National SMART Grant than for Pell
• Academic Year Level not factored into Pell EU,
  TEU
•  

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Eligibility Used, Total Eligibility Used

•  EU 100 (Sum of Actual Disbursements of
  Award Debt Management Collections System (DMCS)
  Repayments of Award) Scheduled Award Amount
• TEU Sum of all EUs at each applicable
  Academic Year Level Across Award Years and
  Schools
• Scheduled Award Amount is the maximum award
  amount by Academic Year Level and Award Year
• The COD System considers Academic Year Levels
  0 and 1 to be the same when calculating TEU

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EU, TEU Example 1

• A student in Grade Level 3 is awarded an 07-08
  SMART grant for 3000, 1234 in actual
  disbursements.
• The student was referred to DMCS and has made
  repayment of 769.
• EU 100 (1234 - 769) 4000 11.6250

Grade Level Award Year Award Amount Anticipated Disb Amount Actual Disb Amount DMCS Repayment Amount Scheduled Award Amt Eligibility Used
3 2008 3000 1000 1234 769 4000 11.6250
Total Eligibility Used (Sum of all EU's) - Grade Level 3 Total Eligibility Used (Sum of all EU's) - Grade Level 3 Total Eligibility Used (Sum of all EU's) - Grade Level 3 Total Eligibility Used (Sum of all EU's) - Grade Level 3 Total Eligibility Used (Sum of all EU's) - Grade Level 3 Total Eligibility Used (Sum of all EU's) - Grade Level 3 Total Eligibility Used (Sum of all EU's) - Grade Level 3 11.6250
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EU, TEU Example 2

• A Student in Grade Level 4 is awarded an 07-08
  SMART grant. However the students second
  disbursement would have caused his actual
  disbursements to exceed his award amount so the
  disbursement

is rejected with Edit 137.
Award Number Disb Number Grade Level Award Year Award Amount Actual Disb Amount Scheduled Award Amt Eligibility Used
001 1 4 2008 4000 1050 4000 26.2500
001 2 4 2008 4000 3000 4000 N/A
Total Eligibility Used (Sum of all EU's) - Grade Level 4 Total Eligibility Used (Sum of all EU's) - Grade Level 4 Total Eligibility Used (Sum of all EU's) - Grade Level 4 Total Eligibility Used (Sum of all EU's) - Grade Level 4 Total Eligibility Used (Sum of all EU's) - Grade Level 4 Total Eligibility Used (Sum of all EU's) - Grade Level 4 Total Eligibility Used (Sum of all EU's) - Grade Level 4 26.2500
X

• The students second disbursement would cause EU
  to equal
• EU 100 (4050 - 0) 4000 101.2500

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EU, TEU Example 3

• A student has 4 ACG Awards for Grade Levels 1 and
  2 in the 2007-2008 and 2008-2009 Award Years.
• Suppose the Scheduled Grant Amount for ACG is
  increased 50 from 750 to 1125 for Grade Level
  1 and from 1300 to 1950 for Grade Level 2.

Award Attended School Grade Level Award Year Award Amount Disbursement Amount Scheduled Award Amt Eligibility Used
1 A 1 2008 500 125 750 16.6666
2 A 1 2009 1125 500 1125 44.4444
3 B 1 2008 200 200 750 26.6666
4 B 2 2009 1300 1250 1950 64.1025
Total Eligibility Used (Sum of all EU's) - Grade Level 1 Total Eligibility Used (Sum of all EU's) - Grade Level 1 Total Eligibility Used (Sum of all EU's) - Grade Level 1 Total Eligibility Used (Sum of all EU's) - Grade Level 1 Total Eligibility Used (Sum of all EU's) - Grade Level 1 Total Eligibility Used (Sum of all EU's) - Grade Level 1 Total Eligibility Used (Sum of all EU's) - Grade Level 1 87.7776
Total Eligibility Used (Sum of all EU's) - Grade Level 2 Total Eligibility Used (Sum of all EU's) - Grade Level 2 Total Eligibility Used (Sum of all EU's) - Grade Level 2 Total Eligibility Used (Sum of all EU's) - Grade Level 2 Total Eligibility Used (Sum of all EU's) - Grade Level 2 Total Eligibility Used (Sum of all EU's) - Grade Level 2 Total Eligibility Used (Sum of all EU's) - Grade Level 2 64.1025
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Eligibility Used, Total Eligibility Used
Percent Eligibility Used
Scheduled Award Amount
Total Percent Eligibility Used (Across all
Schools, Award Years)
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Eligibility Used, Total Eligibility Used

• For all grant programs, COD sends, via daily
  outbound NSLDS file
• Percent Eligibility Used at this School
• Total Percent of Eligibility Used
• Scheduled Award Amount
• Disbursement Amount

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Pell Multiple Reporting Records
Eligibility Used, Total Eligibility Used

• The Eligibility Used field has been renamed to
  Percent Eligibility Used by Scheduled Award
• The Eligibility Used in field position 381-385
  has been expanded to 7 bytes and moved to
  position 442-448
• Positions 381-385 are now an unused field

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ACG, National SMART Grant MMR
Eligibility Used, Total Eligibility Used

• The Unused in field position 321-327 will be
  renamed ACG/National SMART Grant Scheduled Award
• Positions 463-469 will be added to the end of the
  existing layout and populated with the Percent
  Eligibility Used by Scheduled Award
• Positions 470-476 will be added to the end of the
  existing layout and populated with the Total
  Percent Eligibility Used by Academic Year Level
• The total record length will be increased to 476
  bytes from 462 bytes (14 bytes increase)

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Pell Year-To-Date (Disbursement)
Eligibility Used, Total Eligibility Used

• Positions 66-72 will be populated with the
  Percent Eligibility Used by Scheduled Award
• Positions 73-79 will be populated with the Total
  Percent Eligibility Used
• Positions 80-103 will remain an unused field
• There are no changes to the total record length
  of the Pell YTD Disbursement record

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ACG, SMART YTD (Origination)
Eligibility Used, Total Eligibility Used

• The Unused in field position 252-256 will be
  renamed ACG/National SMART Grant Scheduled Award
• There are no changes to the total record length
  of ACG YTD Origination record (350 bytes)

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ACG, SMART YTD (Disbursement)
Eligibility Used, Total Eligibility Used

• Positions 66-72 will be populated with the
  Percent Eligibility Used by Scheduled Award
• Positions 73-79 will be populated with the Total
  Percent Eligibility Used by Academic Year Level
• Positions 80-103 will remain an unused field
• There are no changes to the record layout of the
  ACG/National SMART Grant YTD Disbursement (350
  bytes)

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Debt Management Collection System
The COD System will be enhanced to process and
accept additional Debt Management Collection
System (DMCS) transaction types for Pell, ACG,
and National SMART Awards.
DMCS Transactions DMCS Transactions DMCS Transactions
Transaction Type Symbol Definition
Add A Referring the student to COD
Change C Submitting a payment on an existing DMCS account
Satisfactory S Indicating that the student has made satisfactory arrangements
Unsatisfactory U Indicating that the student has not made satisfactory arrangements
Delete D Indicating that COD should delete the student's referral
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Debt Management Collection System
Collection Status Indicator, as displayed on the
Award Detail Information page
93
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COD Topics

• March Release Updates
• MPN Updates
• Operational Concerns
• Testing
• Tools and Training

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Requiring MPNs Before Disbursement

• Beginning in March 2008, all schools will be
  required to have an accepted MPN on file at COD
  before actual disbursements can be accepted for
  the associated Direct Loan award.

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PLUS MPN Redesign

• Incorporates HERA changes
• Still ONE MPN for all PLUS borrower types (parent
  and graduate/professional student)
• New OMB form expiration date
• Incorporates Borrowers Rights and
  Responsibilities (BRR)
• Updated PLUS MPN will be implemented Fall 2007!
• Sub/Unsub MPN Redesign coming soon

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COD Topics

• March Release Updates
• MPN Updates
• Operational Concerns
• Testing
• Tools and Training

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Operational Concerns

• Password Reset
• Origination Fee Percentage Processing (Edit 140)
• Award ID
• Duplicate Submissions (Edit 56, 58)
• Reporting Verification Status Code

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COD Web Password Reset

• New functionality includes
• Challenge Questions Profile Setup
• Reset Password
• Unlock Account
• Update your Profile
• Update User Profile
• Challenge Questions Profile Unlock

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COD Web Password Reset
For more information, visit the IFAP Electronic
Announcement (June 15, 2007) http//www.ifap.ed.go
v/eannouncements/0615PreImplementation.html
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Origination Fee Percentage Processing

• Edit 140 Incorrect Origination Fee Percent on
  New Awards

Fee Earliest Disbursement Date Range
3.0 Prior to 2007-07-01
2.5 2007-07-01 to 2008-06-30
2.0 2008-07-01 to 2009-06-30
1.5 2009-07-01 to 2010-06-30
1.0 2010-07-01 and forward

• Origination Fee Percentage is based on Earliest
  Disbursement Date, NOT Award Year!

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Origination Fee Percentage Processing

• Earliest Disbursement Date is
• Disbursement Date of Earliest Actual Disbursement
• If no actual disbursements exist
• Disbursement Date of Earliest Anticipated
  Disbursement

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Example 1
Origination Fee Percentage Processing

• Origination submitted with two actual
  disbursements
• Loan amt 3000, Origination Fee 2.5

Disb Seq Disb Date Gross Net DRI Accept?
1 1 6/1/2008 1000 990 true Yes
2 1 11/30/2008 1000 990 true Yes
3 1 7/10/2008 1000 990 false Yes
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Example 2
Origination Fee Percentage Processing

• Origination submitted with one actual
  disbursement
• Loan amt 3000, Origination Fee 2.0

Disb Seq Disb Date Gross Net DRI Accept?
1 1 11/30/2008 1000 995 true Yes
2 1 1/10/2009 1000 995 false Yes
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Example 3
Origination Fee Percentage Processing

• Origination submitted with no actual
  disbursements
• Loan amt 3000, Origination Fee 2.0

Disb Seq Disb Date Gross Net DRI Accept?
1 1 6/1/2008 1000 995 false No
2 1 11/30/2008 1000 995 false No
3 1 1/10/2009 1000 995 false No
105
106
Example 4
Origination Fee Percentage Processing

• Origination submitted with no actual
  disbursements
• Loan amt 3000, Origination Fee 2.5

Disb Seq Disb Date Gross Net DRI Accept?
1 1 6/1/2008 1000 990 false Yes
2 1 11/30/2008 1000 990 false Yes
3 1 1/10/2009 1000 990 false Yes
106
107
Award ID for ACG, SMART

• 123456789A09999999001

Field Name SSN Award Type Award Year Pell ID Award Number
Example 123456789 A 09 999999 001
Valid Values 9 digits A for ACG T for SMART 2 digits 6 digits 3 digits
107
108
Duplicate Submissions (Edit 56, 58)

• Preventable - for the most part!

Edit Block Message Award Type Affected
056 Disbursement Sequence Number Not In Sequential Order All
058 Disbursement Duplicate Disbursement Information On File All
108
109
Duplicate Submissions (Edit 56, 58)
Edit Count (2006-2007 Award Year)
Pell DL ACG SMART TOTAL
Edit 56 448,047 321,742 25,485 12,269 807,543
Edit 58 300,148 175,950 17,482 6,257 499,837
109
110
Reporting Verification Status

• A draft audit of the Office of Inspector General
  reports that schools may not always be properly
  reporting verification status codes to COD.
• Valid values for Verification Status Code are V,
  S or W
• Blank is valid if the student is not selected by
  CPS

110
111
Reporting Verification Status

• Verification Status Code is an optional tag from
  a technical standpoint
• It is a required tag from a business standpoint
• Reporting a verification code is required in most
  circumstances when student is
• Selected by CPS, and
• A Pell recipient

111
112
Reporting Verification Status
Reporting Verification Status Code of V

• Selected by the Central Processing System (CPS)
• Report a Verification Status Code of V on
  students for whom verification has been completed
• Possible exception for QA Schools
• Selected by the School but not selected by CPS
• Report Verification Status of V on students for
  whom verification has been completed

112
113
Reporting Verification Status
Reporting Verification Status Code of S

• QA Schools, if student is selected by CPS and not
  the QA School
• Schools exercising 30 tolerance option
• Student exempt under 34 C.F.R. 668.54(b) that
  is, in general, unless the school has reason to
  believe that the information provided is
  incorrect, incarcerated students, recent
  immigrants, Pacific Island residents, deceased
  students, dependent students whose parents are
  unavailable, students whose applications were
  verified by another school, or students who are
  not Title IV aid recipients

113
114
Reporting Verification Status
Reporting Verification Status Code of W

• W is an interim status
• Report W if verification has not been completed
  but there is no reason to believe information is
  inaccurate (Ex. Awaiting documentation)
• W status limits disbursement to 50 of the award
  amount
• Schools must change status to V, S or Blank or
  Federal Student Aid will reduce to zero

114
115
Reporting Verification Status
Reporting Verification Status Code of Blank

• Rare if the student is selected by CPS
• May be used if selected after student has left
  school
• Verification Status Report may be used to
  identify students needing code correction
• Sent monthly to schools SAIG mailboxes or may be
  requested at any time.
• Lists students selected by CPS on highest
  transaction but have code of W or Blank.

115
116
COD Topics

• March Release Updates
• MPN Updates
• Operational Concerns
• Testing
• Tools and Training

116
117
School Vendor Testing
March 2008 Release Tentative Schedule
Sign Up 12/03/07 - 05/02/08
Phase I 01/02/08 - 5/30/08
Implementation 03/14/08
Phase II 04/07/08 - 07/25/08
Unstructured 06/02/08 - 09/30/08  
117
118
COD Topics

• March Release Updates
• MPN Updates
• Operational Concerns
• Testing
• Tools and Training

118
119
Available Tools and Training

• Tech Ref Publication Schedule
• Webinars
• COD CBT Roll-Out

119
120
Tech Ref Publication Schedule
Volume I Getting Started July 2007
Volume II Common Record Technical Reference Volume II, Section 1 Implementation Guide July 2007 September 2007
Volume III DL Pell Grant Combo System Supplement Volume II, Section 1 Pell Grant Calculation Table September 2007 September 2007
Volume IV DL Tools July 2008
Volume V School Testing Guide September 2007
Volume VI Appendices Volume VI, Section 3 Pell Grant Calculation Table September 2007 February 2008
120
121
Webinars

• Internet Training and Webinars
• http//ifap.ed.gov/IFAPWebApp/currentCPresentation
  sYearPag.jsp?p1AdditionalFSAPresentationsp2c
• COD Basics Resolving Issues with Title IV Grants
• http//www.ed.gov/offices/OSFAP/training/specific.
  htmlcodgrants
• COD Basics Webinar Q A
• http//ifap.ed.gov/eannouncements/0720CODBasicWebi
  narGrantsQA.html

121
122
COD CBT Roll-Out

• An exciting new CBT will be released by COD to
  familiarize users with the capabilities of the
  COD System!

Coming Fall 2007!
122
123
123
124
Contact Information

• Wood Mason
• COD System Operations Branch
• FSA Liaison to School Relations Center
• Phone [phone]
• Email Wood.Mason_at_ed.gov

124
125
CPS UPDATE

• Ginger Klock

126
Agenda
CPS Update

• Application Processing Statistics
• 2008-2009 FAFSA Changes
• 2008-2009 Central Processing System Changes
• Edits
• EDE Applications and Corrections
• 2008-2009 Institutional Student Information
  Record (ISIR) Changes
• 2008-2009 Participation Management (PM) System
• 2008-2009 CPS Test System

127
Application Processing StatisticsPaper vs. Web
filers through Week 29
CPS Update

• Since 2005-2006
• Number of Web filers has increased 13.44
• Number of paper filers has decreased 64.16

128
2008-2009 FAFSA (5/23/2007 draft)
CPS Update
129
2008-2009 Paper FAFSA
CPS Update

• Minimal changes
• Simplified clearance process
• Draft and Summary of Changes published on IFAP
  6/1/2007 in an Electronic Announcement
• http//www.ifap.ed.gov/fafsa/0809FAFSA.html
• Comments were due by 7/31/07

130
2008-2009 Paper FAFSA
CPS Update

• Paper FAFSA is orange (student) and purple
  (parent)
• Design and layout remains unchanged
• Question numbers the same as 2007-2008
• Wording of two questions has been revised
• Enhanced text in some Notes for clearer
  instruction

131
2008-2009 Paper FAFSA
CPS Update

• Question 21 revised to ask if the applicant is
  male or female

132
2008-2009 Paper FAFSA
CPS Update

• Question 27 revised to allow for additional
  options equivalent to high school completion
• Notes contain additional response choices

133
2008-2009 Central Processing System Edit Changes
134
2008-2009 Edit Changes
CPS Update

• New Reject 4 non-verifiable reject (with an
  FAA-only override) if the Marital Status Date is
  greater than the date the application was signed

135
2008-2009 Edit Changes
CPS Update

• New Reject 20 non-verifiable reject (with an
  FAA-only override) for non-filers whose income
  exceeds the IRS requirements for filing a federal
  tax return

136
2008-2009 Edit Changes
CPS Update

• Added a warning edit for applicants whose tax
  filing status is Will File and they are
  correcting one of the following fields
• AGI
• Earned Income
• Taxes Paid
• Exemptions
• New edit will require applicants to re-answer the
  question

137
2008-2009 EDE Applications and Corrections
CPS Update

• Significantly higher rates of reject for some
  codes in 2007-2008
• Rejects 1, 2, 9, 10, 11 14
• Affecting electronic applications and corrections
• Rejects do not occur when FAA Access to CPS
  Online is used to submit records

138
2008-2009 Institutional Student Information
Record (ISIR) Changes
139
2008-2009 ISIR Changes
CPS Update

• Draft 2008-2009 ISIR Record Layout posted to IFAP
  
• No XML ISIR

140
ISIR Record Description/Data Dictionary Changes
CPS Update

• Changed the meaning of values for FAFSA Question
  21 Are you male? with change in question to
  Are you male or female?
• Field 24 -- Starting at position 218
• Field Name -- Are you male or female?
• Valid Content --
• 1 Male
• 2 Female
• Blank

141
ISIR Record Description/Data Dictionary Changes
CPS Update

• Modified format for FAFSA Questions 27 from
  High School diploma or GED to HS Diploma or
  Equivalent
• Field number 30 -- Starting at position 224
• Field Name -- HS Diploma or Equivalent
• Valid Content --
• 1 High school diploma
• 2 GED
• 3 Home schooled
• 4 Other
• Blank

142
ISIR Record Description/Data Dictionary Changes
CPS Update

• Up to 10 school and housing choices on the
  2008-2009 ISIR
• Field numbers 100 through 119 -- Starting at
  position 466
• Field Name Federal School Code (1-10)
• Valid Content -- X00000 through X99999 and blank
  for school code

143
ISIR Record Description/Data Dictionary Changes
CPS Update

• Two new reject override codes displayed
• Field number -- 139 (Reject Override 4)
• Field number -- 141 (Reject Override 20)
• Field names Reject Override 4 and Reject
  Override 20
• Valid Content --
• 1 Yes
• Blank

144
ISIR Record Description/Data Dictionary Changes
CPS Update

• Updated label for FAA Adjustment to
  Professional Judgment
• Field Number 156
• Field Name Professional Judgment
• Valid Content --
• 1 EFC adjustment processed
• 2 EFC adjustment request failed
• Blank no EFC adjustment requested

145
2008-2009 ISIR Changes
CPS Update

• EFC will be calculated for records with signature
  only rejects (14, 15 and/or 16)
• Records will be rejected with no official EFC
  calculated
• Signature required to resolve reject
• Signature Reject EFC field added to ISIR for use
  by state agencies and schools

146
2008-2009 ISIR Changes
CPS Update

• NSLDS Data Elements added
• PX added for new Identity Theft Discharged
  loan status code
• COD Grant sequence numbers added to Pell data
• Fraud Loan Flag added

147
2008-2009 ISIR Changes
CPS Update

• NSLDS Data Elements added/changed for ACG and
  National SMART Grant
• Scheduled Award
• Eligibility Used by Scheduled Award
• Total Eligibility Used by Academic Year
• Award Year
• School Year label changed to Academic Year
  Level

148
2008-2009 ISIR Changes
CPS Update

• High School Graduation question in the ACG data
  file (ED2009OP) revised to be High School
  Graduation Year
• Field 8 -- Starting at position 51
• Field Name -- High School Graduation Year
• Valid Content -- 2005-2009 (Format is CCYY)

149
2008-2009 Participation Management (PM) System
150
2008-2009 PM System Changes
CPS Update

• Supply of existing unassigned TG numbers is
  dwindling--
• We are currently at number TG43323
• We will run out of numbers at TG49999
• We expect to run out of existing unassigned TG
  numbers after the new year begins
• Current assignment of TG numbers is being
  modified to allow for alpha characters in the 3rd
  byte (e.g. TGA1234)
• Change will take effect with annual PM rollover
  activity in December
• Will continue to assign numeric TG numbers until
  we run out

151
2008-2009 PM System Changes
CPS Update

• Field edit and valid value references in FAA
  Access to CPS Online and EDExpress will be
  updated to accommodate this change
• Federal Student Aid is currently undergoing an
  impact assessment for other systems (i.e. PEPS,
  COD) to ensure that all of our systems can
  accommodate the change

152
2008-2009 CPS Test System
153
2008-2009 Test System Update
CPS Update

• Draft Need Analysis Specifications (NAS) posted
• Updates will be provided, as needed

154
2008-2009 Test System Update
CPS Update

• Mechanism for you to confirm that your system
• Meets specifications for interfacing with CPS
• Is calculating correct results
• Allows you to
• Test applications and corrections
• Receive ISIR data

155
2008-2009 Test System Update
CPS Update

• Available on November 20, 2007, and remains
  available through the end of the processing cycle
• User Guide will be posted to Federal Student Aid
  Download Web site (FSAdownload.ed.gov) by the end
  of October
• An Electronic Announcement will be posted when
  the test system goes live

156
2008-2009 Test System Update
CPS Update

• Test files will be available at
  FSAdownload.ed.gov
• Separate input and output files will be posted
  for testing specifications
• Remember - CPS is still in test until Federal
  Student Aid accepts the system and production
  starts on January 2, 2008

157
(No Transcript)
158
Contact Information

• Ginger Klock
• Project Manager
• Application Processing Division
• Phone [phone]
• Email Ginger.Klock_at_ed.gov

159

• BREAK

160
FEDERAL UPDATE
Jeff Baker
161
FEDERAL UPDATE
Jeff Baker
162
Agenda

• Fiscal Year 2008 Budget Proposals
• Legislative Update
• Negotiated Rulemaking
• Accreditation
• General Provisions
• Academic Competitiveness National SMART Grants
• Student Loans

163
Fiscal Year 2008 Budget Proposals
164
Title IV Program BudgetsStatus of Appropriations
165
Fiscal Year 2008 Budget Proposals

• Pell Grants
• Increase maximum to 4,600 for 2008-2009
• 200 increase per year through 2012
• Year round Pell Grants at eligible 2 and 4 year
  degree-granting institutions
• Limit eligibility to the equivalent of 16
  semesters
• Eliminate tuition sensitivity rule

166
Fiscal Year 2008 Budget Proposals

• Academic Competitiveness Grants
• Increase ACG awards by 50 for the 2008-2009
  award year
• 1st year awards 1,125
• 2nd year awards 1,950
• Student Loans
• Increase annual Stafford loan limits for juniors
  and seniors to 7,500

167
Fiscal Year 2008 Budget Proposals

• Need Analysis
• Exclude Section 529 savings and investment
  accounts from need analysis
• Implement a consent-based approach to matching
  applicant data on the FAFSA with the IRS

168
Legislative Update
169
HEA Reauthorization

• Senate Reauthorization Bill
• Passed July 24, 2007
• No House bill yet.
• Budget Reconciliation
• Separate bills passed by both Houses
• H.R.2669 S. 1762
• Officially H.R. 2669

170
Budget Reconciliation
Federal Pell Grants
H.R. 2669 S.1762
Eliminates tuition sensitivity rule. Eliminates tuition sensitivity rule.
Provides mandatory funding to increase discretionary maximum award by 200 for AY 08-09 and 09-10 300 for AY 10-11 500 for AY 11-12. Creates a new mandatory Promise Grants program for Pell Grant eligible students who apply before July 1 each award year. Secretary sets award amounts.
Allows two Pell Grants in an award year for students attending year-round in degree or certificate programs. Requires two Pell Grants in an award year for students attending year-round in degree or certificate programs.
Retains unlimited eligibility. Caps Pell Grant eligibility at 18 semesters regardless of enrollment status.
171
Budget Reconciliation
Academic Competitiveness National SMART Grants
H.R. 2669 S. 1762
Requires students academic year to be the institutionally determined class standing. Allows students academic year to be the institutions determination.
Extends eligibility to certificate programs at 2- and 4-year degree-granting institutions Extends eligibility to certificates that require more than a year to complete.
Part-time students eligible for awards with amounts proportionally reduced Students enrolled at least half-time eligible for awards
Removes citizenship requirement Removes citizenship requirement
No change Authorizes a National SMART Grant for a 5th year in a 5-year program
172
Budget Reconciliation
Student Loans
H.R. 2669 S. 1762
Loan forgiveness. Up to 5000 1000 per year of service to borrowers working in areas designated as national need including early childhood education foreign language specialists librarians, highly qualified bilingual education teachers child welfare workers speech-language pathologists national service or public employees engaged in public safety, public health, emergency management, or public interest law. Loan forgiveness. Cancel balance of Direct Loans for borrower who made 120 payments and have public service jobs reimburse all payments for years when borrower AGI is less than 65,000 for full-time job in government or emergency management health education law enforcement early childhood education social work service to the disabled or elderly legal services library science or faculty member at a Tribal college.
173
Budget Reconciliation
Student Loans
H.R. 2669 S. 1762
Creates new income-based repayment program by creating a partial economic hardship deferment for borrowers whose annual repayments exceed 15 of AGI minus 150 of the poverty line. Unpaid amounts are forgiven after 20 years. Replaces income-sensitive and income-contingent repayment plans with an income-based repayment plan under which monthly payments cannot exceed 15 of the borrowers AGI minus 150 of the poverty. Unpaid balance forgiven after 25 years.
174
Budget Reconciliation
Student Loans
H.R. 2669 S. 1762
Reduce special allowance payments (SAP) on new student and consolidation loans by 55 BP and 85 BP on PLUS loans Reduce SAP on new loans by 50 BP on for-profit loan holders and 35 BP for non-profit loan holders
Reduce lender default insurance from 97 to 95 eliminates exceptional performer Keep lender default insurance at 97 keeps exceptional performers
175
Budget Reconciliation
Student Loans
H.R. 2669 S. 1762
Converts GA funding to a unit cost model Converts GA funding to a unit cost model
Reduces amount of GA retention per dollar collected on defaulted loans from 23 to 16 Reduces amount of GA retention per dollar collected on defaulted loans from 23 to 16
Modifies economic hardship definition to take into account family size Modifies economic hardship definition to take into account family size
176
2006-2007 NegotiatedRulemaking
177
2006-2007 Negotiated Rulemaking

• Calendar
• Sessions December 2006 February June
  2007
• NPRMs June July 2007
• Comments August September 2007
• Final regulations November 1, 2007
• Effective Date July 1, 2008 (possible early
  implementation)

178
2006-2007 Negotiated Rulemaking

• Four negotiating committees were established with
  three NPRMs
• Accreditation No NPRM
• Loans June 12
• Academic Competitiveness National SMART Grants
  August 7
• General Provisions August 8

179
General Provisions
Major Issues

• Cash management improvements related to
• Recovery of funds not claimed
• Permissions for electronic disbursements
• Late, late disbursements

• Consistent definitions of terms related to
  enrollment status, academic level, and
  independent study
• Addressing inconsistencies in the award of aid in
  nonstandard and nonterm programs

180
ACG National SMART Grants
Major Issues

• Rigorous secondary school programs
• Mandatory institutional participation
• GPA requirements
• Academic Year progression
• Majors

181
Loans
Major Issues

• Prohibited Inducements
• Preferred Lenders
• Identity Theft
• Mandatory assignment of defaulted Perkins Loans

182
Loans
Major Issues

• Counseling required for grad PLUS
• Eliminates maximum 12-month loan period
• Limits frequency of capitalization for
  Consolidation Loan borrowers
• Allows loan holders to grant deferments based on
  another loan holders eligibility determination
• Loan holder may use accurate and complete
  photocopy of death certificate to grant a
  discharge

183
Loans
Major Issues

• Total and Permanent Disability
• Establishes a prospective conditional discharge
  period
• Clarifies eligibility requirements
• Restructures the regulations to mirror
  application process

184
Loans
Major Issues

• Requires loan holders to report enrollment/loan
  status information to NSLDS by Secretarys
  deadline
• Requires the Retention of Disbursement Records
  Certification of E-signatures for Assigned MPNs

185
Loans
Preferred Lender Lists

• Cannot deny or impede choice of lender
• Must contain at least 3 unaffiliated lenders
• Disclose method/criteria for inclusion
• Provide comparative information on lenders
• Ensure same lender benefits offered to all
  borrowers

186
Loans
Preferred Lender Lists

• Prominent statement advising borrowers they are
  not required to use schools preferred lender
• Cannot assign a lender to first-time borrowers
• No unnecessary certification delays for borrowers
  not using lender on schools list

187
Loans
Prohibited Inducements

• Eligible Lenders CANNOT
• Offer, directly or indirectly, points, premiums,
  payments or other inducements to any school to
  secure FFEL applications, loan volume or
  placement on a preferred lender list
• Pay referral or processing fees to another lender
  or other party
• Pay conference or training registration,
  transportation and lodging costs for school or
  school-affiliated organization employees

188
Loans
Prohibited Inducements

• Eligible Lenders CANNOT
• Pay entertainment expenses related to
  lender-sponsored activities for employees of
  school or school-affiliated organization
• Undertake philanthropic activities in exchange
  for FFEL applications, volume or placement on
  lender list
• Provide staffing services to a school except on a
  short-term, emergency basis

189
(No Transcript)
190
Contact Information

• Jeff Baker
• Policy Liaison and Implementation Staff
• Phone [phone]
• Email Jeff.baker_at_ed.gov

191

• ROUND TABLE

192

• CLOSING

193
Contact Information
Katie Blot Chief Information Officer Chief Information Office Phone [phone] Email Katie.Blot_at_ed.gov Mary Haldane Chief of Staff Chief Information Office Phone [phone] Email Mary.Haldane_at_ed.gov
Thank you for coming!