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NASSGAP Conference

NASSGAP Conference. Application Processing Update Washington, D.C June 5, 2006. Introductions. Today’s Presenters Sue O’Flaherty ADvance Requirements Lead Marilyn LeBlanc Director of Application Processing Stephanie Gross FAFSA on the Web Team Lead. 2. Today’s Topics.

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NASSGAP Conference

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  1. NASSGAP Conference Application Processing Update Washington, D.C June 5, 2006

  2. Introductions Today’s Presenters • Sue O’Flaherty ADvance Requirements Lead • Marilyn LeBlanc Director of Application Processing • Stephanie Gross FAFSA on the Web Team Lead 2

  3. Today’s Topics • ADvance Update • Higher Education Reconciliation Act (HERA) of 2005: Implementation Plan for 2006-07 and 2007-08 • Other 2007-08 (non-HERA) Application Processing System Changes • Paper FAFSA • Paper SAR, eSAR, and ISIR • FAFSA on the Web, FAFSA on the Web Worksheet, PIN Site • New Application Edits • Questions? 3

  4. ADvance Update 4

  5. Status of Advance • The ADvance Solution – • Creates a fully integrated aid application, Pell Grant and Direct Loan origination and disbursement system • Consolidates and streamlines common functions • Offers end-to-end online view of financial aid information for students, institutions, and customer service representatives 5

  6. Status of Advance • ADvance: Moving Forward • Setting the stage to checkpoint • ADvance vision • ADvance scope • ADvance requirements 6

  7. Status of Advance • ADvance: Moving Forward • Evaluation of existing requirements for ADvance • Developing a process for business design checkpoint with requirements • Validating requirement artifacts • Plan: Complete review by early fall 7

  8. Status of Advance • ADvance: Moving Forward • Plan to have procurement this year • Decision will inform whether ADvance is implemented in 2008-09 or 2009-10 • Committed to developing a timeline that will ensure successful transition to ADvance for all partners 8

  9. Status of Advance • DCL: GEN-06-01 posted 2/15/06 • Update on the ADvance Implementation Schedule • States that ADvance will not be implemented in 2007-08 • States that an ISIR in Extensible Markup Language (XML) will not be implemented in 2007-08 9

  10. Higher Education Reconciliation Act (HERA) of 2005 Implementation Plan for 2006-07 and 2007-08 10

  11. Approach and Time Frame Considerations • Focus on limiting amount of change to Central Processing System (CPS), the SAR/ISIR, and application itself in the middle of the 2006-07 processing cycle • Student application process for ACG needed to be implemented early • Need to provide customer software providers enough time for development • Wanted to leverage existing functionality wherever possible 11

  12. Key Dates • May 19: reprocessing for a limited number of need analysis changes • July 1: implementation of ACG Web Screen, Student Notification, and School notification • July 29: Electronic Statement Of Account (ESOA) and ACG/SMART Current Funding Level (CFL) available; Grad PLUS promissory note processing 12

  13. Key Dates • August 8: R2T4 changes available • Sept. 1: EDExpress available for making and storing awards and disbursements • December 16: COD and EDExpress available to receive and send batch records and responses for new grant and loan programs. • April 14 2007: Reporting for ACG, SMART 13

  14. HERA Implementation • HERA provisions we will cover today • Academic Competitiveness Grant (ACG) • Need Analysis • Student Eligibility • Most of these new provisions are effective for the 2006-07 application processing cycle/award year and beyond • We will cover implementation plans for both 2006-07 and 2007-08 14

  15. Academic Competitiveness Grant Implementation for 2006-07 and 2007-08 15

  16. Higher Education Reconciliation Act • HERA Creates Two New Grant Programs • Academic Competitiveness Grant (ACG) • National Science and Mathematics Access to Retain Talent (SMART) Grant • Today’s focus is on the implementation of ACG for 2006-07 and 2007-08 16

  17. Higher Education Reconciliation Act • Academic Competitiveness Grant (ACG) • Must be a first or second year undergraduate student • Must have completed a rigorous secondary school program of study • 1st Academic Year – • Must have completed secondary school program after 1/1/06 • $750 award amount • 2nd Academic Year – • Must have completed secondary school program after 1/1/05 • $1,300 award amount • FSA’s implementation goal is to design a process that notifies schools of students who are potentially eligible for ACG 17

  18. Academic Competitiveness Grant 2006-07 Implementation • On 7/1/06, an e-mail or letter will be sent to all 2006-07 applicants (Web and paper filers) who applied prior to 7/1/06 and appear to meet minimum ACG requirements – • U.S. Citizen • Pell eligible • Graduated from high school after 1/1/2005 (age will be used as proxy) • 1st or 2nd year in school • E-mails and letters will inform applicants how to provide ACG information – • Web site, or • Federal Student Aid Information Center (FSAIC) 18

  19. Academic Competitiveness Grant 2006-07 Implementation • Web site will “screen” applicants (U.S. citizen, Pell eligible) and ask students – • Did they or will they complete high school program of study after 1/1/05? • In which state did they graduate from high school? • If that State has approved Advanced or Honors Programs or State Scholars Initiative requirements • State programs presented to the applicant in a dropdown box • Applicant selects rigorous program (if any) from dropdown box picklist 19

  20. Academic Competitiveness Grant 2006-07 Implementation • If applicant’s State does not have a rigorous program listed (or student did not complete rigorous program of study), applicants can tell us if they – • Took courses similar to State Scholars Initiative, and/or • Took at least two AP or IB courses in high school with a minimum passing score of 3 or 4 respectively • FSAIC Customer Service Reps will follow similar process on the phone 20

  21. Academic Competitiveness Grant 2006-07 Implementation • For students who provide ACG information and appear to be eligible -- • Central Processing System (CPS) notifies institutions of student’s potential ACG eligibility via – • Comment codes on ISIR, and • Flat file format • Student Aid Report (SAR) sent to students • Institutions are responsible for verifying ACG eligibility before disbursing funds 21

  22. Academic Competitiveness Grant 2006-07 Implementation • Students who apply for aid on or after 7/1/06 – • Online Applicants -- FAFSA on the Web will “screen” applicants for potential eligibility and give applicants option to provide ACG information • Paper Applicants -- No change to paper 06-07 FAFSA -- filers will be sent comment on SAR directing them to Web site, FSAIC, or their school to provide ACG information • Central Processing System (CPS) notifies institutions of potential ACG eligibility on ISIR and in flat file • SAR sent to students • Institutions are responsible for verifying ACG eligibility before disbursing funds 22

  23. Academic Competitiveness Grant 2007-08 Implementation • FAFSA on the Web will “screen” applicants for potential eligibility and give applicants option to provide ACG information • Paper filers will be sent comment on SAR directing them to Web site, FSAIC, or their school to provide ACG information 23

  24. Need Analysis Changes Implementation for 2006-07 and 2007-08 24

  25. Need Analysis Changes • Simplified Needs Test (SNT) and Automatic Zero EFC Criteria • New Active Duty Military Independence Criterion • Treatment of Qualified Education Benefits • Treatment of Small Business Assets • Income Protection Allowance (IPA) and Asset Assessment Rates 25

  26. SNT and Auto Zero EFC Criteria • SNT and Automatic Zero EFC • Only parent’s type of tax return filed will be considered for dependent students • Means-tested federal benefit program an alternative to tax return requirement • Automatic Zero EFC Only • Income threshold increased from $16,000 to $20,000 26

  27. SNT and Auto Zero EFC Criteria 2006-07 Implementation • On May 19, 2006, two changes made to CPS -- • 1 - For dependent students, updated system to look only at parent’s type of tax return filed to qualify for SNT or Auto Zero EFC • 2 - Increased Auto Zero EFC income parameter in system from $16,000 to $20,000 for – • Parents of dependent students, and • Independent students with dependents other than a spouse 27

  28. SNT and Auto Zero EFC Criteria 2006-07 Implementation • Reprocessed students who applied for aid prior to May 19 • Applicants who previously were not eligible for the SNT or automatic zero EFC because of the type of tax return filed by the dependent student and who will now be eligible • Applicants who previously were not eligible for the automatic zero EFC calculation because they had an income between $16,001 and $20,000 and who will now receive an automatic zero EFC because of the increased income parameter • If EFC = 0 on highest transaction, not reprocessed • Applicants who apply on or after May 19 will have new criteria applied 28

  29. SNT and Auto Zero EFC Criteria • Means-Tested Federal Benefit Programs -- students may now qualify for SNT or Auto Zero EFC if, in addition to meeting the relevant income thresholds, they or their parents received benefits from a means-tested federal benefit program 29

  30. SNT and Auto Zero EFC Criteria 2006-07 Implementation • Will not revise 2006-07 Web or paper FAFSA to collect this information • If institution learns that parent/student received means-tested federal benefit(s), but did not meet SNT or Auto Zero EFC criteria because they were required to file an IRS 1040 form, institution should correct to ‘Yes’ FAFSA question 34 or 72 (was student or parent eligible to file a 1040 A or 1040 EZ?) 30

  31. SNT and Auto Zero EFC Criteria 2007-08 Implementation • New SNT/Auto Zero EFC criteria (tax return and Auto Zero income parameter) rolled forward into 2007-08 CPS • Means-tested benefits questions will be asked about base year 2006 on both 2007-08 paper and online FAFSAs 31

  32. Definition of Independent Student • Students serving on active duty in the U.S. Armed Forces for other than training purposes are now considered independent 32

  33. Definition of Independent Student 2006-07 Implementation • No change to the 2006-07 paper or online FAFSA • If an institution becomes aware that an otherwise dependent student is serving on active duty it must submit a “dependency override” to the CPS • CPS will recalculate the EFC using the independent student formula • New SAR comment informing students of new active duty military independence criterion -- • Comment on SARs sent to students as part of May 19th reprocessing • Comment will appear on SARs for all dependent applications and corrections submitted after May 19, 2006 33

  34. Definition of Independent Student 2007-08 Implementation • 2007-08 paper and online FAFSAs will include new dependency status question in Step 3 34

  35. Treatment of Qualified Education Benefits • Qualified Education Benefits -- • Consistent treatment, and • Now treated as an asset 2006-07 Implementation • No change to the instructions for investment net worth on the 2006-07 paper or online FAFSA • If institution becomes aware that parents of a dependent student or an independent student (or spouse) owns a qualified education benefit, institution must assist student in correcting asset net worth question on the FAFSA 2007-08 Implementation • 2007-08 paper and online FAFSA instructions for investment questions will describe how to report qualified education benefits 35

  36. Treatment of Small Business Assets • Exclude family-owned and controlled small businesses from asset net worth 2006-07 Implementation • No change to the instructions for business asset net worth questions on the 2006-07 paper or online FAFSA • If an institution becomes aware that a parent or student reported the asset net worth of a family-owned and controlled small business on the FAFSA, institution must assist student in correcting the question on the FAFSA 2007-08 Implementation • 2007-08 paper and online FAFSA instructions for investment questions will describe how to report family-owned and controlled small businesses 36

  37. IPA and Asset Assessment Rates 2007-08 Implementation • Increase in Income Protection Allowances • To $3000 from $2200 for dependent students • To $6050 from $5000 for independent students (single) without dependents and married students (without dependents) with a spouse enrolled at least ½ time • To $9700 from $8000 for independent (married) students without a dependent whose spouse is not enrolled • Decrease in Asset Assessment Rates • 35% to 20% for dependent students • 12% to 7% for independent students with dependents other than a spouse 37

  38. Student Eligibility Implementation for 2006-07 and 2007-08 38

  39. Drug Offenses • Student eligibility provision modified -- students lose eligibility for Title IV 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 39

  40. Drug Offenses 2006-07 Implementation • On July 1, 2006, drug question wording, instructions, and drug worksheet revised on FAFSA on the Web • Question on paper FAFSA will not be reworded, but paper filers will continue to receive SAR with revised Drug Conviction Worksheet • All students who applied before July 1, 2006 (paper or Web) and answered "Yes" (either 2-partial ineligibility or 3-full ineligibility) to the drug question, or left the question blank, will – • Receive e-mail or letter with revised Drug Conviction Worksheet • Be instructed to correct response to drug question, if necessary • Anticipated distribution date is 7/1/2006 • On July 1, 2006, Drug Conviction Worksheet on the Web and FSAIC automated response system will be revised 40

  41. Drug Offenses 2007-08 Implementation • Both paper and online FAFSA drug offense wording updated • Help text on FAFSA on the Web updated 41

  42. HERA Dear Colleague Letters • GEN-06-02 (3/10/2006) – Enactment of the Higher Education Reconciliation Act of 2005 • GEN-06-03 (3/14/2006) – Correction to GEN-06-02 • GEN-06-04 (4/5/2006) – ACG and National SMART Grant Programs • GEN-06-05 (4/27/2006) – Changes to student and institutional eligibility as a result of the HERA of 2005 • GEN-06-06 (5/2/2006) – National SMART Grant Announcement of eligible majors • GEN-06-08 (5/3/2006) – Implementation guidance for the ACG and National SMART Grant 42

  43. 2007-08 Application Processing System Changes 43

  44. 2007-08 Paper FAFSA 44

  45. The 2007-08 Paper FAFSA • 2007-08 FAFSA is yellow • New packaging: • Form pages numbered 1 through 4 • Notes pages 5 through 10 • Expanded instructions; one page of “Tips” 45

  46. The 2007-08 Paper FAFSA 46

  47. The 2007-08 Paper FAFSA • Will begin 60-day public comment period in June 2006 • E-mail comments to FAFSAComments@ed.gov • To view draft FAFSA: • Go to IFAP at http://ifap.ed.gov • Scroll down to “Publications” • Click on “FAFSAs and Renewal FAFSAs” • Click on “By 2007-2008 Award Year” • Click on “Draft FAFSA Form/Instructions” 47

  48. The 2007-08 Paper FAFSA • States that do not specify priority deadline dates have been moved to the top of the list on Page 1 • Remember to review your deadline dates – changes due to Federal Student Aid by August 15, 2006 48

  49. The 2007-08 Paper FAFSA • Question numbers 27 & 28 eliminated to create space for new questions required by HERA • #27 – “Interested in student loans?” • #28 - “Interested in work-study?” • Question number 98 (enrollment status) moved to new page one to follow “grade level in college?” question 49

  50. The 2007-08 Paper FAFSA • Two college and housing code choices removed to create space for new HERA questions • Web continues to allow six college and housing choices • Colleges re-numbered on paper FAFSA to 96a through 96h 50

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