# Presentation: 934938

## Application Processing System Update 

Marilyn LeBlanc
Director of Application Processing

Michele Brown  
Director of Applicant Products 
and Customer Service

**Marilyn LeBlanc**
- Director of Application Processing
**Michele Brown  **
- Director of Applicant Products
- and Customer Service

## 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

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

** ****2006-07 and 2007-08**

**The FAFSA **
**The Application Processing System**

## 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

## 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

## 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

## New Grant Programs

Implementation for    2006-07 and 2007-08

**Implementation for    2006-07 and 2007-08**

## 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

## Academic Competitiveness Grant2006-07 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)

## Academic Competitiveness Grant2006-07 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

## Academic Competitiveness Grant2006-07 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

## Academic Competitiveness Grant2006-07 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

## Academic Competitiveness Grant2006-07 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

## Academic Competitiveness Grant2007-08 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

## Academic Competitiveness Grant2006-07 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

## Need Analysis Changes

Implementation for  2006-07 and 2007-08

**Implementation for  2006-07 and 2007-08**

## 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

## 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

## 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

## 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

## 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

## 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?)

## 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

## 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

## 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

## IPA and Asset Assessment Rates2007-08 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 1⁄2 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

## Student Eligibility

Implementation for  2006-07 and 2007-08

**Implementation for  2006-07 and 2007-08**

## 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

## Definition of an Independent Student2006-07 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

## Definition of an Independent Student2006-07 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

## Definition of an Independent Student2007-08 Implementation

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

## 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

## Drug Offenses2006-07 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

## Drug Offenses2006-07 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

## Drug Offenses                                2007-08 Implementation

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

## 2007-08 FAFSA 
and 
Application Processing System Changes

**and **
**Application Processing System Changes**

## 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

## 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

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

**That’s a 1.16% increase**

**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

## 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

## 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](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](http://www.ifap.ed.gov/eannouncements/0816AppsbySchool.html)_

## 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

## 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”

## 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

## 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

## 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

## 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

## 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](mailto:FederalStudentAidFAFSA@cpsemail.ed.gov)_
- Changing e-mail subject line to “FAFSA Results – 2007-2008 SAR”

## 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

## 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)

## 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 preparer’s SSN
- Common look and feel for Federal Student Aid Suite of Application Products

## 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/fsapubshome.html](http://www.ed.gov/offices/OSFAP/services/fsapubshome.html)_
- Scheduled to begin shipping at the end of October

## 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

## 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

## 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

## 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

## 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@cpsemail.ed.gov](mailto:FederalStudentAidPIN@cpsemail.ed.gov)_
- Common look and feel for the Federal Student Aid PIN Web site

## 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

## 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

## 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

## 2007-08 Edit Changes

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

## 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”

## 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

## Important 2007-08 Dates

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

## 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

## 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

## 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.gov](http://fafsademo.test.ed.gov/)_
- Enter:
- User Name:  eddemo
- Password:  fafsatest
- Click on FOTW or FAA Access to CPS Online Demo System button
- Available through December 2007

## 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@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

## CPS/SAIG Technical Support

- We appreciate your feedback and comments.
- We can be reached at:
- Phone:  800/330-5947
- TDD/TTY services:  800/511-5806
- E-mail:  _CPSSAIG@ed.gov_
- Representatives are available Monday through Friday, 7 a.m. to 7 p.m., Central Standard Time

## Contact Us!

- We welcome your feedback, comments and questions.
- We can be reached at:
- Marilyn LeBlanc, Director of Application Processing
- (202) 377-3205
- Marilyn.LeBlanc@ed.gov
- Michele Brown, Director of Applicant Products and Customer Service
- (202) 377-3203
- Michele.Brown@ed.gov

## 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)

## 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

## 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

## 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

## 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

## 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

## 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