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Application Processing System Update Marilyn LeBlanc Director of Application Processing PowerPoint Presentation
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Application Processing System Update Marilyn LeBlanc Director of Application Processing

Application Processing System Update Marilyn LeBlanc Director of Application Processing

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Application Processing System Update Marilyn LeBlanc Director of Application Processing

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

  2. Today’s 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 student’s 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, student’s 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 parent’s 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 student’s 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 That’s a 1.16% increase

  40. Application Processing StatisticsPaper 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/0816AppsbySchool.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 • Yellowfor 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@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)