# Presentation: 661882

## <footer>

- <date/time>

## Session 33

**NSLDS: Can We Say Goodbye To FATs?**** **
***Lynn Alexander***
***Don Holec***

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## Agenda

- Financial Aid History - Policy Breakthroughs
- Focus Groups
- New Mid-Year Transfer Process
- Inform
- Monitor
- Alert
- School Alert Profile
- Questions and Discussion

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## Agenda

- Financial Aid History - Policy Breakthroughs
- Focus Groups
- New Mid-Year Transfer Process
- Inform
- Monitor
- Alert
- School Alert Profile
- Questions and Discussion

- Session 33-

## Financial Aid History Former Policy

- May use NSLDS except for mid-year transfers
- Must respond to requests for FATs
- Assist colleagues by responding to inquiries
- Determine whether to award aid using authority of GEN-96-13

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## Financial Aid HistoryInterim Policy

- Effective July 1, 2000
- May use NSLDS for all applicants including mid-year transfers
- Check NSLDS 30 days prior to the beginning of the first payment period
- May use ISIR if generated within the 30 day period
- Must respond to requests for FATs
- Assist colleagues by responding to inquiries
- Refer to GEN-00-12 for details

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## Financial Aid History New: Inform, Monitor & Alert

- Planned for July 1, 2001
- Use NSLDS for all applicants
- New NSLDS mid-year transfer process to alert school of changes affecting the student’s eligibility
- Schools not required to respond to requests for FATs
- Assist colleagues by responding to inquiries

- Session 33-

## Agenda

- Financial Aid History - Policy Breakthroughs
- Focus Groups
- New Mid-Year Transfer Process
- Inform
- Monitor
- Alert
- School Alert Profile
- Questions and Discussion

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## Financial Aid History FOCUS Groups

- Meet with the community to define the mid-year transfer process
- First session held July 9th at NASFAA
- Second session held August 25th with proprietary schools
- Third session held at MASFAA on October 10th
- Share your suggestions with us:
- Jeff_Baker@ed.gov
- Lynn_Alexander@ed.gov
- dholec@fallschurch.esys.com

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## Agenda

- Financial Aid History - Policy Breakthroughs
- Focus Groups
- New Mid-Year Transfer Process
- Inform
- Monitor
- Alert
- School Alert Profile
- Questions and Discussion

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## NSLDS Mid-Year Transfers Process Objectives

- Reduce school workload to meet regulatory requirements
- School informs NSLDS of students to be monitored (inform)
- NSLDS monitors data received and determines who to notify (monitor)
- NSLDS alerts new school (i.e., push data out) of relevant changes (alert)
- Distribute results only to new school
- Provide convenient input and output options

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## Agenda

- Financial Aid History - Policy Breakthroughs
- Focus Groups
- New Mid-Year Transfer Process
- Inform
- Monitor
- Alert
- School Alert Profile
- Questions and Discussion

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## NSLDS Mid-Year Transfers Who Is Monitored? (Inform)

- School provides NSLDS with list of applicants
- Applicant identifiers
- Enrollment period
- ISIR Transaction # (optional)
- Input methods:
- Enter on NSLDSFAP
- Send data file to NSLDS

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## Slide 14

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## Slide 15

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## Slide 16

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## Slide 17

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## Inform Data File

- Header record
- Detail record (one per student)
- Applicant identifiers
- Enrollment period
- ISIR Transaction # (optional)
- Trailer record

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## Agenda

- Financial Aid History - Policy Breakthroughs
- Focus Groups
- New Mid-Year Transfer Process
- Inform
- Monitor
- Alert
- School Alert Profile
- Questions and Discussion

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## NSLDS Mid-Year Transfers What Will NSLDS Do? (Monitor)

- Is there new data affecting applicant’s eligibility?
- New data means a new loan or Pell Grant was added or changed for attendance at another school (since last ISIR or alert)
- New or cancelled disbursement on a loan
- New or cancelled disbursement on a Pell Grant
- Reduced Pell Grant Award
- Data for attendance at school to which the applicant is transferring is not monitored
- Changes in default status or overpayments would continue as done currently (postscreening) so that all schools are notified

- Session 33-

## Monitor Rules 

- Monitor period
- Starts:  Date entered
- Ends:  Enrollment end date
- FFEL/FDLP Loans
- Loan at school A overlaps enrollment begin date at school B; or
- Loan begin date at school A is less than 30 weeks before enrollment begin date at school B

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## Monitor Rules (cont)

- Perkins Loans
- Disbursement at school A is in the same award year as enrollment begin date at school B
- Pell Grants
- Grant at school A is in the same award year as the enrollment begin date at school B

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## Agenda

- Financial Aid History - Policy Breakthroughs
- Focus Groups
- New Mid-Year Transfer Process
- Inform
- Monitor
- Alert
- School Alert Profile
- Questions and Discussion

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##  How Are Results Communicated? (Alert)

- NSLDS communicates results only to the school to which the applicant is transferring
- Output shows entire financial aid history
- Output methods:
- NSLDSFAP
- Financial aid history data file (like current FAT batch process-see IFAP)
- Email notification

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## Slide 25

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## Alert Data File

- Header record
- Detail records
- Aggregates, error codes and match flags
- Name history
- Loan detail record(s)
- Pell Grant payment record(s)
- Overpayment record(s)
- Trailer record

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## Agenda

- Financial Aid History - Policy Breakthroughs
- Focus Groups
- New Mid-Year Transfer Process
- Inform
- Monitor
- Alert
- School Alert Profile
- Questions and Discussion

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## School Alert Profile

- Email address to send alert notice:
- New results are available - go to NSLDSFAP
- New data file being sent - access TIV WAN mailbox
- Could be group email address
- TIV WAN Mailbox of person to receive data file (only for schools wanting a file sent)
- Add contact person for mid-year transfer questions in Organizational Contacts

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## Slide 29

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## YES!

***YES!***

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## Questions and Discussion

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## NSLDS Customer Service

- 1-800-999-8219
- Call between the hours of 8:00 a.m. and 8:00 p.m. ET any weekday other than Federal holidays.
- Or, e-mail:  nsldscoe@raytheon.com

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## Slide 33

## ISIR/SAR issues

- Capitalized interest calculations
- Consolidation loans issues
- Changes for 2001-2

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## ISIR/SARCapitalized Interest

- Included in Outstanding Principal Balance
- NSLDS excludes capitalized interest in aggregates
- Assumes capitalized interest is paid before principal
- Includes the lesser of OPB, amount disbursed or net loan amount in aggregates
- NSLDS does calculation for you

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## ISIR/SARCapitalized Interest Examples

- Loan #2:
- Loan amt:  $5,000
- Amt Disb:   $2,500
- OPB:          $3,000
- Amount disbursed is the smallest amount.  Thus, it is used to compute the aggregate amount. $500 is assumed to be capitalized interest.

- Loan #1:
- Loan amt:  $3,000
- Amt Disb:  $3,000
- OPB:         $2,200
- $2,200 is included in aggregates as it is the smallest amount.

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## ISIR/SARConsolidation Loan Issues

- Consolidation loans have specific loan types [CL (FFEL); D5 and D6 (Direct Loans)]
- Underlying loans reported with PC status and zero OPB
- Date of Loan Status on underlying loans and Consolidation Loan Date should be close
- Some underlying loans may be reported with PF - working with data providers to improve data accuracy
- Consolidation loans may include Perkins (CL or D6) and Health Professions loans (CL or D5)

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## ISIR/SARLoan Aggregates

- Subsidized - SF (subsidized), D1, or D6
- Unsubsidized - SF (non-subsidized), SU, SL, D2, D5, or RF
- Combined - SF (subsidized and non-subsidized), SU, SL, D1, D2, D5, D6, or RF
- FFEL Consolidation - CL

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## ISIR/SARConsolidation Loan Aggregates

- Direct Loans:
- D5 - Consolidation Unsubsidized (included in Unsubsidized and Combined aggregates)
- D6 - Consolidation Subsidized (included in Subsidized and Combined aggregates)
- FFEL:
- CL - Consolidation Loan (sub and unsub) (included in FFEL Consolidation aggregate only)
- Contact lender to obtain sub/unsub breakdown of underlying loans

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## ISIR/SARChanges for 2001-2

- Add increased unsubsidized loan indicator due to PLUS denial (Direct Loans only)
- Add increased unsubsidized loan indicator due to Health Professions loan (Direct Loans only)
- Add Master Promissory Note indicator -Yes or No (Direct Loans only)

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## New Loan Status Codes 

- Purpose of new codes
- Changes in codes
- Effects on student eligibility
- Implementation schedule

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## Loan Status Code Purposes

- What are the key NSLDS functions which are dependent on loan status codes?

- Student eligibility
- ISIR/SAR
- Pre/Postscreening
- Payment of fees to guaranty agencies
- Generation of reports
- Policy analysis and research

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## Loan Status Code Changes

- Five existing loan status codes are being retired.  What are they and what is replacing them?

**ID - In school or grace**
**Replaced by IA (Loan Originated), IG (In-grace) and IM (Military grace)**
**UI - Uninsured/unreinsured**
**Replaced by AL, UA, UB, UC and UD**
**PC - Paid by consolidation**
**Replaced by DN and PN**
**DU (Defaulted unresolved) becomes DF**
**DX (Satisfactory arrangements) becomes XD**

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##  Loan Status Codes: Old Loans

- What new codes will be used to resolve problems with old loans?

**DR - Defaulted loan included in rolled-up loan**
**PM - Old loans (over 12 years in repayment) with no lender updates will be closed**
**AL - Loans with no known lender and no updates on balances for four years**

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## Loan Status Codes: Eligibility

- Currently, a student with a DB, DL, DO, DU, DT and DW are ineligible for aid.  What new codes will cause student to be ineligible?

**DF - Defaulted unresolved**
**DZ - Defaulted, missed payment**
**UB - Temporarily uninsured-default claim denied**
**UD - Permanently uninsured-default claim denied**
**AL - Abandoned loan**

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## Loan Status Codes: Implementation

- What are the critical dates for implementation of the new loan status codes?

- Development to be completed by end of year
- Data providers _*may*__ _start reporting new codes by Jan 1, 2001
- Data providers _*must*_ use new codes by December 31, 2001

- Session 33-

## NSLDS Customer Service

- 1-800-999-8219
- Call between the hours of 8:00 a.m. and 8:00 p.m. ET any weekday other than Federal holidays.
- Or, e-mail:  nsldscoe@raytheon.com

- Session 33-