# Presentation: 825612

## Federal Student Aid

- Software Developers Conference
- August 3, 2006

## WELCOME

- Katie Blot

## Federal Student Aid Strategic Objectives

## Federal Student Aid Key Initiatives

## Agenda

**Higher Education Reconciliation Act Overview****	****9:20 am – 10:50 am**
**Break****	****	****	****	****	****	****10:50 am – 11:15 am**
**Central Processing System Update****	****	****11:15 am – 11:45 am**
**Common Origination and Disbursement Update ****	****11:45 am – 12:15 pm**
**Lunch on your own****	****	****	****	****12:15 pm – 1:30 pm**
**Information Framework/ **
**Student Aid History Management ****	****	****1:30 pm – 2:30 pm**
**Break****	****	****	****	****	****	****2:30 pm – 2:45 pm**
**E-Authentication****	****	****	****	****2:45 pm – 3:45 pm**
**Round Table****	****	****	****	****	****3:45 pm – 4:15 pm**
**Closing****	****	****	****	****	****	****4:15 pm – 4:30 pm**

**Agenda**

## Contact Information

- Katie Blot
- Chief Information Officer
- Phone: 202-377-3528
- Email: _[katie](mailto:katie.blot@ed.gov)__[.blot@ed.](mailto:katie.blot@ed.gov)__[gov](mailto:katie.blot@ed.gov)_
**Thank You for Coming!**

## Higher Education Reconciliation Act (HERA) Overview

- Sue O'Flaherty

## HERA Overview

- Enacted February 8, 2006
- Interim final regulations published July 3, 2006, and effective on August 2, 2006
- Comments accepted until August 17, 2006

## HERA Overview

- Regulations to be published November 1, 2006
- Negotiated Rulemaking required

## HERA Overview

- Major CPS and COD HERA Impacts:
- Changes to income levels and assessment rates in Need Analysis: new questions required on FAFSA
- Two new grant programs

## HERA Overview

- Major CPS and COD HERA Impacts, cont’d.
- New borrower type for PLUS program
- R2T4 changes and updated worksheets

## HERA Overview

- Major CPS and COD HERA Impacts, cont’d.
- Change in the definition of an academic year for clock hour programs
- Loan amounts, origination fees

## HERA Overview

- Major CPS and COD HERA Impacts, cont’d.
- Multiple implementation dates for HERA Provisions
- “upon enactment”
- July 1, 2006
- January 1, 2007

## HERA Overview

- Major CPS and COD HERA Impacts, cont’d.
- Multiple implementation dates
- July 1, 2007
- Origination fee changes are over a period of years

## HERA Overview

- Approach and Challenges
- Interest in making minimal change to the 2006-07 application system and output for students

## HERA Overview

- Approach and Challenges, cont’d.
- Recognition of short time period for obtaining policy decisions and regulations
- Concern for school and software developers

## HERA Overview

- Approach and Challenges, cont’d.
- Uncertainty regarding ultimate ED reporting needs

## HERA Overview

- Approach and Challenges, cont’d.
- Phased approach to allow for immediate school implementation of certain need analysis provisions while system changes to CPS being developed

## HERA Overview

- Approach and Challenges, cont’d.
- Phased approach for new programs for COD to allow for key functionality to be available

## HERA Overview

- Approach and Challenges, cont’d.
- Interest in coordination of HERA changes with 2007-2008 annual cycle changes

## HERA Overview

- Status: what has occurred to date?
- CPS changes in May and June
- PESC approval of COD schema changes
- ACG Web functionality: July 1st
- SAR/ISIR ACG comment code changes: July 1st

## HERA Overview

- Status: what has occurred to date?
- Notification to potentially eligible ACG recipients: July 1st
- e-MPN Web changes for Grad PLUS: July 1st

## HERA Overview

- Status: what has occurred to date?
- Paper and electronic promissory note processing for Grad PLUS: July 1st
- Initial authorizations and ESOAs for ACG and National SMART Grant to schools:  July 29th

## HERA Overview

- Status: what has occurred to date?
- Technical references for COD published
- May: phased implementation; ESOA
- June: Message classes, Updated Common Record Layout for Schema v20e
- July: Grad PLUS, rules, edits for ACG/SMART

## HERA Overview

- Status: what has occurred to date?
- New Message Class table for EDconnect SAIG
- EDE Technical Reference
- June
- July

## HERA Overview

- Status: what has occurred to date?
- 36 Electronic announcements
- 19 Dear Colleague letters
- 1 regulation
- 3 NSLDS reference documents

## HERA Overview

- Schedule:  What is next?
- August 6: R2T4
- August 11: EDExpress changes for Grad PLUS
- August 12:  COD release 5.2A - changes for Grad PLUS
- August 18:  COD Tech Reference Updates

## HERA Overview

- Schedule:  What is next?
- September 1: EDExpress award/disbursements for ACG/National SMART and Grad PLUS
- September 1: Direct Loan Tools for Grad PLUS
- December 15:  EDExpress changes for sending and receiving ACG/National SMART data with COD

## HERA Overview

- Schedule:  What is next?
- December 16:  COD release 5.2B - functionality for ACG/National SMART processing
- December 17:  NSLDS available to take ACG/National SMART and Grad PLUS disbursement information

## HERA Overview

- Schedule:  What is next?
- January 1: CPS available for 2007-2008
- April 14: COD release 6.0 – reporting, loan amount changes, origination
- On-going Electronic Announcements

## HERA Overview

- For the remainder of the morning, CPS and COD Updates will occur
- Application Processing
- Direct Loans
- ACG/National SMART
- COD

## HERA Overview

- CPS and COD Updates
- Questions and answers after each segment
- EDExpress:  expert available for questions and answers prior to lunch break

## Slide 33

## Contact Information

- Sue O'Flaherty
- Phone: 202-377-3393
- Email: Sue.O'Flaherty@ed.gov

## 2007-2008 Central Processing System Update

- Marilyn LeBlanc

## FAFSA Changes
Central Processing System (CPS) Changes
Edits
Need Analysis

- Central Processing System (CPS) Changes
- Edits
- Need Analysis

**2007-2008 CPS Update****Today’s Topics**

**Notes:**
Good morning.  [Introduce yourself?]  Thank you so much for your interest in the changes we’re making to the application processing system for 06-07.
Today I’ll talk about the topics you see listed on this  slide.  
I’ll start by sharing with you some of the more significant changes we’re making to the 2006-07 FAFSA – both Web and paper versions of the form.  
In addition, in this section I’ll talk about some changes we’re making to the Renewal Application Process.
Next, I’ll highlight changes to the Central Processing System and the Institutional Student Information Record, or ISIR.
And, I’ll also review our CPS Test System.  Most of you are already very familiar with it, but I thought it might be helpful to cover some key items.
Then I’ll wrap up with a couple of changes we’re making to the EDExpress software.
Before we get into the presentation, I wanted to mention that, over the next few months, we’ll be posting a series of Process Guides on IFAP and on FSAdownload that will describe all of the changes we’re making to our systems in 06-07, so watch for those.
The Renewal Application Process Guide
The Summary of Changes to the Application Processing System (FAFSA, SAR, CPS, and ISIR changes)
The School Electronic Process Guide (EDExpress, FAA Access, ISIR Datamart, IA Tool, and R2T4)
And, the Student Web Process Guide (FOTW and the PIN Web site)

## Institutional Student Information Record (ISIR) Changes
CPS Test System

- CPS Test System

**2007-2008 CPS Update****Today’s Topics**

**Notes:**
Good morning.  [Introduce yourself?]  Thank you so much for your interest in the changes we’re making to the application processing system for 06-07.
Today I’ll talk about the topics you see listed on this  slide.  
I’ll start by sharing with you some of the more significant changes we’re making to the 2006-07 FAFSA – both Web and paper versions of the form.  
In addition, in this section I’ll talk about some changes we’re making to the Renewal Application Process.
Next, I’ll highlight changes to the Central Processing System and the Institutional Student Information Record, or ISIR.
And, I’ll also review our CPS Test System.  Most of you are already very familiar with it, but I thought it might be helpful to cover some key items.
Then I’ll wrap up with a couple of changes we’re making to the EDExpress software.
Before we get into the presentation, I wanted to mention that, over the next few months, we’ll be posting a series of Process Guides on IFAP and on FSAdownload that will describe all of the changes we’re making to our systems in 06-07, so watch for those.
The Renewal Application Process Guide
The Summary of Changes to the Application Processing System (FAFSA, SAR, CPS, and ISIR changes)
The School Electronic Process Guide (EDExpress, FAA Access, ISIR Datamart, IA Tool, and R2T4)
And, the Student Web Process Guide (FOTW and the PIN Web site)

## Application Processing Statistics

- For 2006-2007
- 94% of applications filed electronically
- 6% of applications filed on paper FAFSA

**Paper vs. Electronic Filers through Week 30**** **

## The 2007-2008 FAFSA

## The 2007-2008 Paper FAFSA

- 60-day public comment period began on 6/6/06
- E-mail  comments to _[FAFSAComments@ed.gov](mailto:FAFSAComments@ed.gov)_

## The 2007-2008 Paper FAFSA

- To view draft FAFSA:
- Go to IFAP at _[http://ifap.ed.gov](http://ifap.ed.gov/)_
- Scroll down to “Publications”
- Click on “FAFSAs and Renewal FAFSAs”

## The 2007-08 Paper FAFSA

- To view draft FAFSA:
- Click on “By 2007-2008 Award Year”
- Click on “Draft FAFSA Form/Instructions”

## The 2007-2008 FAFSA

- 2007-2008 paper FAFSA is yellow and purple
- New packaging:
- Form pages numbered 1 through 4
- Notes pages 5 through 10
- Expanded instructions; one page of “Tips”

## The 2007-2008 FAFSA

- New questions as a result of HERA
- Moved questions for better placement on form

## The 2007-2008 FAFSA

- Page 1 and Notes Pages
- Enrollment status question (#25) reformatted and will follow “grade level in college?”

## The 2007-2008 FAFSA

- Page 1 and Notes Pages, cont’d.
- Notes for question 25 describe enrollment status choices

## The 2007-2008 FAFSA

- Page 1 and Notes Pages, cont’d.
- Work-study and loan questions combined and reformatted (to create space for new questions required by HERA)

## The 2007-2008 FAFSA

- Page 1 and Notes Pages, cont’d.
- Notes for question 26 describe work-study and loan choices

## The 2007-2008 FAFSA 

- Page 1
- Drug question (#31) wording revised to reflect HERA changes to this student eligibility provision

## The 2007-2008 FAFSA 

- Pages 2, 4, and Notes Pages
- HERA treats all “qualified education benefits” as assets** ****  **** **

**Notes:**
As you know, HERA applies a consistent treatment to all “qualified education benefits” so that all are treated as an asset (versus some education benefits being treated as assets and others being treated as resources).
2006-07 Implementation 
In 06-07, we are not making any changes to the instructions for investment net worth on the –
2006-07 paper or 
online FAFSA to account for this change.
However, if and institution becomes aware that – 
parents of a dependent student or 
an independent student (or spouse) 
owns a qualified education benefit, the institution must assist student in correcting the appropriate investment asset net worth question on the FAFSA
2007-08 Implementation 
In 2007-08, both the paper and online FAFSA will include detailed instructions about how to report a qualified education benefit in the  investment net worth questions.

## The 2007-2008 FAFSA 

- Pages 2, 4, and Notes Pages, cont’d.
- Notes for investment questions (#44 and #88) describe how to report education benefits

**Notes:**
As you know, HERA applies a consistent treatment to all “qualified education benefits” so that all are treated as an asset (versus some education benefits being treated as assets and others being treated as resources).
2006-07 Implementation 
In 06-07, we are not making any changes to the instructions for investment net worth on the –
2006-07 paper or 
online FAFSA to account for this change.
However, if and institution becomes aware that – 
parents of a dependent student or 
an independent student (or spouse) 
owns a qualified education benefit, the institution must assist student in correcting the appropriate investment asset net worth question on the FAFSA
2007-08 Implementation 
In 2007-08, both the paper and online FAFSA will include detailed instructions about how to report a qualified education benefit in the  investment net worth questions.

## The 2007-2008 FAFSA 

- Pages 2, 4, and Notes Pages, cont’d.
- HERA does not treat family-owned and controlled small businesses as an asset

**Notes:**
Also, HERA no longer considers family-owned and controlled small businesses as an asset, and
So these types of businesses should not be included as an asset on the FAFSA.
2006-07 Implementation 
In 06-07, we are not making changes to the instructions for the business asset net worth questions on the paper or online FAFSA.
However, if an institution becomes aware that – 
a parent or student reported the asset net worth of a family-owned and controlled small business, 
the institution must assist the student in correcting the question on the FAFSA
2007-08 Implementation 
Thankfully, in 2007-08 both the paper and online FAFSA instructions for investment questions will describe how to report family-owned and controlled small businesses
The slide shows an example of the wording.

## The 2007-2008 FAFSA 

- Pages 2, 4, and Notes Pages, cont’d.
- Notes for business/investment farm questions (#45 and #89) tell applicants what kind of small businesses to exclude from asset net worth

**Notes:**
Also, HERA no longer considers family-owned and controlled small businesses as an asset, and
So these types of businesses should not be included as an asset on the FAFSA.
2006-07 Implementation 
In 06-07, we are not making changes to the instructions for the business asset net worth questions on the paper or online FAFSA.
However, if an institution becomes aware that – 
a parent or student reported the asset net worth of a family-owned and controlled small business, 
the institution must assist the student in correcting the question on the FAFSA
2007-08 Implementation 
Thankfully, in 2007-08 both the paper and online FAFSA instructions for investment questions will describe how to report family-owned and controlled small businesses
The slide shows an example of the wording.

## The 2007-2008 FAFSA 

- Page 2
- Students serving on active duty in the U.S. Armed Forces for other than training purposes are now considered independent

**Notes:**
The next HERA provision is the new independent student criteria.
Beginning in 06-07, students who are serving on active duty in the U.S. Armed Forces for other than training purposes are now considered to be independent for the purposes of applying for federal is.
This is also an interesting new provision because this is a new question and we don’t already collect the information on our applications for 06-07.
Let’s look at how we’ll implement this change in 06-07 and then in 07-08.

## The 2007-2008 FAFSA 

- Page 2, cont’d.
- New dependency status question 54 in Step 3
- Notes for question 54 explain who is considered “active duty”

**Notes:**
The next HERA provision is the new independent student criteria.
Beginning in 06-07, students who are serving on active duty in the U.S. Armed Forces for other than training purposes are now considered to be independent for the purposes of applying for federal is.
This is also an interesting new provision because this is a new question and we don’t already collect the information on our applications for 06-07.
Let’s look at how we’ll implement this change in 06-07 and then in 07-08.

## The 2007-2008 FAFSA 

- Pages 3 and 4
- New means-tested benefits questions
- Step 4, Questions 71–75 for dependent students
- Step 5, Questions 92-96 for independent students

**Notes:**
For 07-08, the new HERA criteria for SNT and Auto Zero will be built into the CPS on January 1, 2007, from the very beginning.
That way the correct tax return parameters and 
Correct income parameter will be used when calculating an applicant’s EFC.
In addition, on both the paper FAFSA and FAFSA on the Web we’ll ask parents of dependent students and independent students if anyone in their household (as we define it for the purpose of completing the FAFSA) received a means-tested benefit in 2006 (which is the base year for the 07-08 application year).

Making these changes for 07-08 will enable us to correctly determine a student’s eligibility for the SNT or an Automatic Zero EFC and then calculate the correct EFC – schools will no longer have to do the workaround that they have to do for 06-07 applicants.

Basically, 07-08 will be a lot simpler – and cleaner – for everyone involved in the application and aid delivery process. 

This slide shows the new questions on the paper FAFSA.  But, again, the questions will appear on both the paper and online FAFSAs.
It’s a little hard to see, but we have defined the means-tested federal programs as  SSI, food stamps, free or reduced price lunch, TANF, and WIC.
The online and paper FAFSA encourages applicants to indicate ALL of the mean-tested benefits their family received.

## The 2007-2008 FAFSA 

- Pages 3 and 4, cont’d** **
- Did anyone from your household receive benefits from –
- Supplemental Security Income (SSI)
- Food Stamps
- Free or Reduced Price Lunch
- TANF
- WIC

**Notes:**
For 07-08, the new HERA criteria for SNT and Auto Zero will be built into the CPS on January 1, 2007, from the very beginning.
That way the correct tax return parameters and 
Correct income parameter will be used when calculating an applicant’s EFC.
In addition, on both the paper FAFSA and FAFSA on the Web we’ll ask parents of dependent students and independent students if anyone in their household (as we define it for the purpose of completing the FAFSA) received a means-tested benefit in 2006 (which is the base year for the 07-08 application year).

Making these changes for 07-08 will enable us to correctly determine a student’s eligibility for the SNT or an Automatic Zero EFC and then calculate the correct EFC – schools will no longer have to do the workaround that they have to do for 06-07 applicants.

Basically, 07-08 will be a lot simpler – and cleaner – for everyone involved in the application and aid delivery process. 

This slide shows the new questions on the paper FAFSA.  But, again, the questions will appear on both the paper and online FAFSAs.
It’s a little hard to see, but we have defined the means-tested federal programs as  SSI, food stamps, free or reduced price lunch, TANF, and WIC.
The online and paper FAFSA encourages applicants to indicate ALL of the mean-tested benefits their family received.

## The 2007-2008 FAFSA 

- Page 4
- Four college and housing code choices on paper FAFSA
- Colleges re-numbered on paper FAFSA (97a– 97h)

## The 2007-2008 FAFSA 

- Page 4, cont’d.
- FAFSA on the Web will continue to accept up to six college and housing code choices

## 2007-2008 Renewal Application Process

- Online option only
- In October 2006, reminder to schools to have students update postal and e-mail addresses in CPS

## 2007-2008 Renewal Application Process

- Renewal Reminders 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

## 2007-2008 Renewal Application Process

- Renewal Reminders sent in early January
- Will not convert “Do you want Work-study or Loans?” questions
- Will not convert enrollment status questions

## 
2007-2008 
Central Processing System 
Edit and ISIR Changes

**2007-2008 **
**Central Processing System **
**Edit and ISIR Changes**

## 2007-2008 Edit Changes

- New warning edits if --
- Parent’s or independent student’s tax return status is “Will not file” and sum of earned income is within required range to file a return
- Parent’s AGI equal to student’s AGI

## 2007-2008 Edit Changes

- New warning edits if --
- Dependent student’s AGI equal to Worksheet A
- Parent or student reports receiving SSI or TANF but does not report amount on Worksheet A

## 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

## Need Analysis Changes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

**Notes:**
Some changes to needs analysis were included in the HERA legislation and were implemented recently for 06-07  by making some changes to the CPS and reprocessing records.  These changes will be carried over into 07-08 and are listed here.
For both SNT and Auto Zero, HERA now requires only the parent of a dependent student to – 
have filed, or 
to have been be eligible to file a 1040A or EZ 
Prior to HERA, our system checked the type of tax return filed by both the parent AND the dependent student.
Also, as an alternative to being eligible to file a 1040A or EZ, parents of dependent students, and independent students  who -- 
were required to file a 1040, but 
who received a means-tested federal benefit in the base year
now meet the SNT and/or Auto Zero EFC criteria (provided they also meet the income thresholds).

And then for Auto Zero ONLY, HERA raised the income threshold from $16,000 to $20,000.

## Need Analysis ChangesSNT and Auto Zero EFC Criteria

- Automatic Zero EFC Only
- Income threshold is less than or equal to $20,000

**Notes:**
Some changes to needs analysis were included in the HERA legislation and were implemented recently for 06-07  by making some changes to the CPS and reprocessing records.  These changes will be carried over into 07-08 and are listed here.
For both SNT and Auto Zero, HERA now requires only the parent of a dependent student to – 
have filed, or 
to have been be eligible to file a 1040A or EZ 
Prior to HERA, our system checked the type of tax return filed by both the parent AND the dependent student.
Also, as an alternative to being eligible to file a 1040A or EZ, parents of dependent students, and independent students  who -- 
were required to file a 1040, but 
who received a means-tested federal benefit in the base year
now meet the SNT and/or Auto Zero EFC criteria (provided they also meet the income thresholds).

And then for Auto Zero ONLY, HERA raised the income threshold from $16,000 to $20,000.

## Need Analysis Changes IPA and Asset Assessment Rates

- Increase in Income Protection Allowances
- To $3000 from $2200 for dependent students

## Need Analysis Changes IPA and Asset Assessment Rates

- Increase in Income Protection Allowances, cont’d.
- To $6050 from $5000 for independent students (single) without dependents and married students (without dependents) with a spouse enrolled at least 1⁄2 time

## Need Analysis Changes IPA and Asset Assessment Rates

- Increase in Income Protection Allowances, cont’d.
- To $9700 from $8000 for independent (married) students without a dependent whose spouse is not enrolled

## Need Analysis Changes IPA and Asset Assessment Rates

- Decrease in Asset Assessment Rates
- 35% to 20% for dependent students and independent students without dependents
- 12% to 7% for independent students with dependents other than a spouse

## 2007-2008 ISIR Changes

- Draft 2007-2008 ISIR record layout posted to IFAP in early August 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
Will include up to six school and housing codes 

- Date fields incremented
- Will include up to six school and housing codes

**2007-2008 ISIR Changes**

## Will continue to include new Academic Competitiveness Grant Comment Codes (267 – 271)
ACG flat file will be sent along with ISIRs 
No new message classes
2007-2008 ISIR in flat file format only (no XML ISIR)

- ACG flat file will be sent along with ISIRs
- No new message classes
- 2007-2008 ISIR in flat file format only (no XML ISIR)

**2007-2008 ISIR Changes**

## 2007-2008 ISIR Changes

- Changes to Financial Aid History
- NSLDS will send ACG and National SMART data to CPS
- Up to 3 ACG and 3 National SMART records will be included on pre-screening record
- New ACG and National SMART Overpayment Contact Information will be added

## 2007-2008 ISIR Changes

- Changes to Financial Aid History
- 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 (post-screening reason code of 16)

## 2007-2008 ISIR Changes

- Changes to Financial Aid History
- Changes associated with Fraud Convictions
- Loan Status Codes FR and FD, and Loan Type Code F added
- Value of F added for all 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

## 2007-2008 EDE Corrections

- New CPS Internal Field number assigned to each data element will be used for submitting EDE corrections
- Replaces SAR field number on correction record
- Matches Application/SAR field number up to First College Choice field (field #97)

**Notes:**
The change for 07-08 to collect up to six college choices on the web but only four on the paper FAFSA has caused in change in the way fields are numbered on the FAFSA and the SAR.  As you’ve seen, the college choices are numbered 97a through 97l on the web and 97a through 97h on the paper FAFSA and SAR.

In order to have a single set of field numbers for processing of corrections, we have assigned an internal, sequential number to each data element.  This number will actually be the same as the FAFSA/SAR number until you get to the college choice fields, at which point the internal number will continue to be sequential and will differ from the FAFSA/SAR number.

The CPS internal field number must be used when submitting EDE correction records to the CPS and the list of numbers will be included in the EDE Technical Reference.

## 2007-2008 EDE Corrections

- New CPS Internal Field number assigned to each data element will be used for submitting EDE corrections
- Subsequent fields are sequentially numbered
- List will be published in the EDE Technical Reference

**Notes:**
The change for 07-08 to collect up to six college choices on the web but only four on the paper FAFSA has caused in change in the way fields are numbered on the FAFSA and the SAR.  As you’ve seen, the college choices are numbered 97a through 97l on the web and 97a through 97h on the paper FAFSA and SAR.

In order to have a single set of field numbers for processing of corrections, we have assigned an internal, sequential number to each data element.  This number will actually be the same as the FAFSA/SAR number until you get to the college choice fields, at which point the internal number will continue to be sequential and will differ from the FAFSA/SAR number.

The CPS internal field number must be used when submitting EDE correction records to the CPS and the list of numbers will be included in the EDE Technical Reference.

## 2007-2008 Central Processing System
Test System

**Test System**

## CPS UpdateSpecifications

**CPS Update****Specifications**

- Draft Software Developer (NAS) Specifications will be posted in August
- Updates will be provided, as needed

**Notes:**
The 07-08 Software Developer Specifications are in the final review stages and will be posted to FSAdownload by the end of this month.  
As always, we’ll provide updates to the specs as they are identified.  
When they are posted, the specs will include the annual updates to the offsets in the EFC formula.

## CPS UpdateCPS Test System

**CPS Update****CPS Test System**

- Mechanism for you to confirm that your system –
- Meets specifications for interfacing with CPS
- Is calculating correct results

**Notes:**
Let’s talk about the 07-08 CPS test system.
As you know, the Test System allows you to – 
Confirm that your system meets the specifications for interfacing with the CPS, 
It also allows you to confirm that your system is calculating correct results.
The test system allows you to –
send both application or correction records to the CPS 
and to receive ISIR data back from us.

As part of the test system, we will provide you with a test file of application records that you can use to test with us, and
We will provide you a matching file of ISIRs that you can use to check output results.
Or, if you prefer, you can submit application records that you have created yourself rather than use the test records we provide.
Also, if you plan to submit correction records as part of your test, you’ll need to call customer service to receive record ID’s that will process successfully against the test database.

## CPS UpdateCPS Test System

**CPS Update****CPS Test System**

- Allows you to –
- Test applications and corrections
- Receive ISIR data

**Notes:**
Let’s talk about the 07-08 CPS test system.
As you know, the Test System allows you to – 
Confirm that your system meets the specifications for interfacing with the CPS, 
It also allows you to confirm that your system is calculating correct results.
The test system allows you to –
send both application or correction records to the CPS 
and to receive ISIR data back from us.

As part of the test system, we will provide you with a test file of application records that you can use to test with us, and
We will provide you a matching file of ISIRs that you can use to check output results.
Or, if you prefer, you can submit application records that you have created yourself rather than use the test records we provide.
Also, if you plan to submit correction records as part of your test, you’ll need to call customer service to receive record ID’s that will process successfully against the test database.

## CPS UpdateCPS Test System

**CPS Update****CPS Test System**

- Available on November 20, 2006, and remains available through end of  processing cycle
- User Guide will be posted to Federal Student Aid Download Web site (_FSAdownload.ed.gov_) by the end of October

**Notes:**
The Test System will be available for you to use on November 20, 2006, and it will be available through the end of the 06-07 application processing cycle.
By the end of October 2006, we will post the User Guide for the CPS Test System.
When we issue the Guide, AND when we implement the CPS Test System, we’ll be sure to issue electronic announcements on IFAP so that you know they’re available for your use.

## CPS UpdateCPS Test System

**CPS Update****CPS Test System**

- An Electronic Announcement will be issued when test system goes live

**Notes:**
The Test System will be available for you to use on November 20, 2006, and it will be available through the end of the 06-07 application processing cycle.
By the end of October 2006, we will post the User Guide for the CPS Test System.
When we issue the Guide, AND when we implement the CPS Test System, we’ll be sure to issue electronic announcements on IFAP so that you know they’re available for your use.

## CPS UpdateCPS Test System

**CPS Update****CPS Test System**

- Test files will be available
- Separate input and output files will be posted for testing specifications

**Notes:**
The test file of records that we provide to you will be posted to FSAdownload in late October – to give you plenty of time to get ready to test with us once the Test System becomes available on Nov. 20.
As I mentioned a moment ago, we’ll provide you with separate input and output files for testing the specifications.

Please remember, though, that changes can occur to the CPS between the time the test system comes up, and January 1, 2007, which is when the 07-08 CPS goes into production -- so it’s possible for something to change.
If we do find something that needs to be changed, we’ll notify you right away --  
 First, we’ll repost corrected specs to FSA download and we’ll note at the beginning of the document any changes that we’ve made to the specs.
We’ll also post the specific change in the Test “issues log” on FSAdownload, and
We’ll post an “electronic announcement” on IFAP – so that you will be aware  of any changes to the specs. 

## CPS UpdateCPS Test System

**CPS Update****CPS Test System**

- Remember—CPS is still in test until Federal Student Aid accepts the system and production starts on January 1, 2007

**Notes:**
The test file of records that we provide to you will be posted to FSAdownload in late October – to give you plenty of time to get ready to test with us once the Test System becomes available on Nov. 20.
As I mentioned a moment ago, we’ll provide you with separate input and output files for testing the specifications.

Please remember, though, that changes can occur to the CPS between the time the test system comes up, and January 1, 2007, which is when the 07-08 CPS goes into production -- so it’s possible for something to change.
If we do find something that needs to be changed, we’ll notify you right away --  
 First, we’ll repost corrected specs to FSA download and we’ll note at the beginning of the document any changes that we’ve made to the specs.
We’ll also post the specific change in the Test “issues log” on FSAdownload, and
We’ll post an “electronic announcement” on IFAP – so that you will be aware  of any changes to the specs. 

## Phone:  1-800-330-5947
E-mail:  cpssaig@ed.gov

We appreciate your feedback and comments

- E-mail:  _[cpssaig@ed.gov](mailto:cpssaig@ed.gov)_
- We appreciate your feedback and comments

**CPS Update**
**Contact Information**

**Notes:**
We appreciate getting feedback about our systems, so I encourage you to let us know what you think – about the changes we’ve made to our systems and to let us know what we can do to make our systems work better for you and the schools that you serve.

We’d certainly like you to share your thoughts with us later today,
But, if you think of something after today you can always call our 1-800 number or email us.

This slide shows you the number to call and our e-mail address.

Thank you very much.

## Slide 90

## Contact Information

- Marilyn LeBlanc
- Phone: 202-377-3205
- Email: _[Marilyn.LeBlanc@ed.](mailto:Marilyn.LeBlanc@ed.gov)__[gov](mailto:Marilyn.LeBlanc@ed.gov)_

##  Direct LoanHERA Changes

- Lisa DiCarlo

## Effective February 8, 2006
Reinstatement of low cohort default rate exemption
Effective July 1, 2006
New False Certification Discharge due to Identity Theft
Graduate/Professional Students may borrow PLUS (Grad PLUS) 

- Reinstatement of low cohort default rate exemption
- Effective July 1, 2006
- New False Certification Discharge due to Identity Theft
- Graduate/Professional Students may borrow PLUS (Grad PLUS)

**HERA Changes**

**Notes:**
For additional Direct Loan related changes and information, please see:
Dear Colleague – GEN-06-02-FP-06-01

## Effective July 1, 2007 
New Stafford (Sub/Unsub) Loan Limits for loans originated on or after July 1, 2007
New Sub/Unsub origination fees – reduced over time.

- New Stafford (Sub/Unsub) Loan Limits for loans originated on or after July 1, 2007
- New Sub/Unsub origination fees – reduced over time.

**HERA Changes, cont’d.**

**Notes:**
For additional Direct Loan related changes and information, please see:
Dear Colleague – GEN-06-02-FP-06-01

## Low cohort default rate exemption: February 8, 2006
Paper and electronic MPN available: July 1, 2006
Credit Check available: July 1, 2006 
Correspondence updated: July 31, 2006
Early Processing Options: July 1, 2006  
COD Web Option
Spreadsheet Option

- Paper and electronic MPN available: July 1, 2006
- Credit Check available: July 1, 2006
- Correspondence updated: July 31, 2006
- Early Processing Options: July 1, 2006
- COD Web Option
- Spreadsheet Option

**HERA Implementation**

## Full Grad PLUS Functionality: August 12, 2006
Process Grad PLUS via existing PLUS Common Record
Loan Limit Changes: April 14, 2007
Origination Fee Changes: April 14, 2007
False Certification Discharge due to Identity Theft

- Process Grad PLUS via existing PLUS Common Record
- Loan Limit Changes: April 14, 2007
- Origination Fee Changes: April 14, 2007
- False Certification Discharge due to Identity Theft

**HERA Implementation, cont’d.**

- Reinstatement of low cohort default rate exemptions
- <10% for last 3 years
- Effective February 8, 2006
- <5% for most recent year
- Never expired

**Notes:**
<10% for last 3 years
Disburse in single disbursement for single term loans
Delay disbursement for first time, first year undergraduate borrowers isn’t required.
Effective for disbursements made on or after February 8, 2006
<5% for most recent year
For students in study abroad programs
Never expired

## Master Promissory Note (MPN) Related Changes

- Updated e-MPN site to
- Allow student borrowers to complete a PLUS MPN.
- Reflect HERA changes to Sub/Unsub and PLUS.

## Master Promissory Note (MPN) Related Changes

- Updated correspondence
- Revised Plain Language Disclosure Statements for DL Sub/Unsub and PLUS.
- New MPN Addenda for DL Sub/Unsub and PLUS
- Implemented: COD Release 5.1A, July 1, 2006

## Correspondence Changes 

Updated correspondence to reflect HERA changes, including new PLUS borrower type.
Credit Check
MPN Packages
Implementation COD Release 5.1B, July 31, 2006

- Updated correspondence to reflect HERA changes, including new PLUS borrower type.
- Credit Check
- MPN Packages
- Implementation COD Release 5.1B, July 31, 2006

## PLUS

- Parent borrowers
- Graduate/Professional student borrowers
- Effective July 1, 2006
- Impacts 05/06 forward

**Notes:**
Parent borrowers
Borrow to pay for an undergraduate student’s education (student levels < or = 5)
Student must be dependent
If only want PLUS, school’s don’t have to determine student’s eligibility for sub/unsub

Graduate/Professional student borrowers
Borrow to pay for their own graduate level education (student levels 6 or 7)
Student is independent
Student must file a FAFSA
Schools must determine the student’s eligibility for sub/unsub before offering PLUS. (Student may decline the sub/unsub)
Credit check required (same as for parent borrowers)
Impacts 05/06 forward.

## Grad PLUS Processing

School can check MPN and credit check status via:
COD Web 

- School can check MPN and credit check status via:
- COD Web

## Grad PLUS Processing, cont’d.

School can check MPN and credit check status via:
Spreadsheet Option
Implemented with COD 5.1A, July 1, 2006
Ends with COD 5.1B, August 12, 2006 

- School can check MPN and credit check status via:
- Spreadsheet Option
- Implemented with COD 5.1A, July 1, 2006
- Ends with COD 5.1B, August 12, 2006

## Full Grad PLUS functionality 
Implementation: COD 5.2A, August 12, 2006

- Implementation: COD 5.2A, August 12, 2006

**Notes:**
Submit origination and disbursement records and receive responses via existing PLUS common record block or individually via COD web site 
When submitting Grad PLUS records, schools must include both a student and a borrower block.  Both blocks must contain identical information.
When sending in person changes, the borrower block will overwrite any changes submitted in the student block if they aren’t identical.
Receive Credit Check responses
Receive MPN Responses
Receive Endorser status
Borrowers receive disclosure statement

## New False Certification DischargeDue to Identity Theft

Implementation: COD Release 6.0, April 14, 2007

- Implementation: COD Release 6.0, April 14, 2007

**Notes:**
Discharged loan will not be applied to annual loan limit calculations
MPN linked to discharged loan will become inactive and can’t be used for future loans
Will include new discharge reason of I (False Certification – Identity Theft) on MPN Discharge Report
Will accept disbursements dated before discharge date 
Will reject disbursements dated after discharge date
Will reject upward adjustments to the award amount or disbursement amount.

## Origination Fee ChangesImplementationCOD 6.0,April 14, 2007,throughSpring 2010

| Loans first disbursed: |  |  |
| --- | --- | --- |
| On or after | Before | Fee |
|  | July 1, 2007 | 3% |
| July 1, 2007 | July 1, 2008  | 2.5% |
| July 1, 2008 | July 1, 2009 | 2% |
| July 1, 2009 | July 1, 2010 | 1.5% |
| July 1, 2010 |  | 1% |

**Impacts 2006-2007 and forward**

## Loan Limit Changes – July 1, 2007

| Grade Level | Max Sub Amt 
(base amt) | Max Combined 
Sub/Unsub Amt |
| --- | --- | --- |
| 0 or 1 | $3500 | $7500 |
| 2 | $4500 | $8500 |
| 3, 4, 5 | $5500 | $10,000 |
| >6 | $8500 | $20,500 |
| Health Professions (HPPA Flag) = “Y” |  |  |
| 4 or 5 | N/A | $27,167 |
| 6 or 7 | N/A | $47,167 |
| Preparatory coursework (for enrollment in a graduate or professional program) or Coursework for Teacher Certification
(PreProfessionalCourseworkIndicator = “true”)  |  |  |
| 5 | $5500 | $12,500 |

- Loan Limit Changes
- Implementation
- COD 6.0,
- April 14, 2007

-     **Impacts 2006-2007 and forward**

**Notes:**
 Impacts 2006/2007 and forward
 For loans originated on or after July 1, 2007

## Slide 108

## Contact Information

- Lisa DiCarlo
- Phone: 202-377-3129
- Email: _[Lisa.](mailto:Lisa.DiCarlo@ed.gov)__[DiCarlo](mailto:Lisa.DiCarlo@ed.gov)__[@ed.](mailto:Lisa.DiCarlo@ed.gov)__[gov](mailto:Lisa.DiCarlo@ed.gov)_

## HERA ACG & National SMART

- Kathleen Wicks

## Two New Grant Programs

- Academic Competitiveness Grant (ACG)
- First year maximum scheduled award:  $750
- Second year maximum scheduled award:  $1,300

## Two New Grant Programs

- National Science and Mathematics Access to Retain Talent Grant    (National SMART Grant)
- Annual maximum scheduled award :  $4,000

## ACG/National SMART Student Eligibility Common Criteria

- U.S. citizen
- Full-time enrollment
- 2- or 4-year degree program at degree-granting institution
- Pell Grant recipient

## All schools that participate in Pell Grants and offer an eligible educational program must participate in ACG and National SMART Grants.

No new Program Participation Agreement (PPA).

- No new Program Participation Agreement (PPA).

-  **Institutional Participation**

## Institutional Eligibility

- Offers a 2 or 4 degree
- Program length in COD
- 5,6,7,8 for ACG
- 6,7,8 for National SMART

## Institutional Eligibility

- COD Edit 48
- Based on school program information as reported in the Application for Approval to Participate in Federal Student Financial Aid Programs

## Institutional Eligibility

- Not All Schools Will Be Eligible for ACG and/or National SMART
- Approximately 3350 eligible schools
- Of these, approximately 1950 are eligible for both ACG and National SMART

## Additional ACG Student Eligibility Requirements

- First year students
- May not have been previously enrolled in a program of undergraduate education.

## Additional ACG Student Eligibility Requirements

- First year students
- Have completed secondary school program of study after January 1, 2006.** **

## Additional ACG Student Eligibility Requirements

- Second year students
- Have completed secondary school program of study after January 1, 2005.
- Have a 3.0 G.P.A.

## Additional ACG Student Eligibility Requirements

- Student must have completed a rigorous secondary school program of study.
- ED has outlined options to meet requirement in DCL GEN-06-08 and in the interim regulations.

## Options for Meeting Rigorous Program Definition

- 01 	State Designated Program
- State Submitted Program

## Options for Meeting Rigorous Program Definition

- 01 	State Designated Program
- An advanced or honors secondary school program established by a state and in existence for the 04-05 or 05-06 school year.

## Options for Meeting Rigorous Program Definition

- 01		State Designated Program
- State Scholars Initiative

## Options for Meeting Rigorous Program Definition

- 02	Completion of at least two 	Advanced Placement courses with 	passing test score of 3 or two 	International Baccalaureate 	courses with passing test score of 4.

## Options for Meeting Rigorous Program Definition

- 03	A set of courses as outlined in the 	Secretary’s May 2 letter to states.

## Additional National SMART Grant Eligibility Criteria

- 3.0 GPA
- 3rd and 4th year students
- Eligible majors identified annually

## Additional National SMART Grant Eligibility Criteria

- In Physical science, Life science, Computer science, Engineering, Mathematics, Technology, and Critical foreign language
- See GEN-06-06 published May 2, 2006
- COD requires NCES CIP codes listed in attachment to GEN-06-06

## Additional ACG and National SMART Eligibility Criteria

- Student *may not* receive ACG or National SMART concurrently from more than one school.
- ACG and National SMART *must be* received from same school from which Pell Grant is received.

## ACG/National SMART Phased COD Implementation 5.1B

- 				**July 29**
- Initial authorizations (CFL) to schools
- Electronic Statement of Account (ESOA) for 2006-2007 for ACG and National SMART

## ACG/National SMART Phased COD Implementation 5.1B

- ESOA Message Classes
- ACG = AGAS07OP
- Batch ID =AA
- National SMART = SGAS07OP
- Batch ID = SA

## ACG/National SMART Phased COD Implementation 5.1B

- School funding data displayed on the COD Web Site
- Funding available in Grant Administration and Payment System (GAPS) first week of August

## ACG/National SMART Initial Authorizations

- Based on proportional volume of 2005-2006 Pell Grant recipients at 2- and 4-year degree-granting schools
- $221m in ACG
- $208m in National SMART

## ACG/National SMART Initial Authorizations

- Estimated amounts to fund disbursements until mid-December.
- Pell JIT schools must draw from GAPS

## ACG/National SMART Phased COD Implementation 5.1B

- Cash Management regulations in 34 CFR 668 Subpart K apply
- The GAPS Award Number for ACG will be P375A06xxxx.

## ACG/National SMART Phased COD Implementation 5.1B

- The GAPS Award Number for National Smart Grant will be P376S06xxxx.
*	**Note:* *The "xxxx" will be populated with a school's GAPS award sequence number that currently exists for the Pell Grant and Direct Loan programs*.

## ACG/National SMART Phased COD Implementation 5.1B

- The earliest date on which a school may disburse an ACG or National SMART Grant for the 2006-2007 Award Year, either with Federal funds or its own funds, is July 1, 2006.

## ACG/National SMART Phased COD Implementation 5.1B

- Always report disbursement date, not date sent to COD

## ACG/National SMART Phased COD Implementation 5.2B

- 				**December 16**
** **Common Record and Web processing for ACG and National SMART for the 2006-2007
- Submission of student level data

## ACG/National SMART Phased COD Implementation 5.2B

- 				**December 16 **
- Adjustments to CFL based on disbursement reporting
- Daily reporting to NSLDS

## ACG/National SMART Phased COD Implementation 5.2B

- Funds available in August but no way to report student disbursements until COD Release 5.1B.
- 30-day disbursement-reporting requirement.

## ACG/National SMART Phased COD Implementation 5.2B

- E-mail notifications regarding ACG and National SMART Grant awards suspended until January 17, 2007.

## Differences Between Pell & ACG/National SMART

- Overaward logic (POP)
- Automatic corrections option
- Timing of actual disbursements
- Required record elements

## Overaward Logic (POP)

- Pell allows overaward at multiple schools for 30 days
- For ACG/National SMART, COD System **rejects **disbursement records when the sum exceed the scheduled award amount limit
- At same school
- At multiple schools

## Automatic Corrections Option

- For Pell, a school may opt to have COD correct certain values
- For ACG/National SMART, COD will reject incorrect values

## Timing of Actual Disbursements

- For Pell, as early as 30 days prior to disbursement date
- For ACG/National SMART, as early as 7 days prior to disbursement date

## Required Record Elements

- Financial Award ID & Financial Award Number
- New concepts for grant program
- Assists in properly directing overpayment information at Collections
- Comparable to Loan ID

## Award ID

- Helps COD distinguish multiple awards for the same student at the same school for the same Award Year
**Financial Award Number**
- The last 3 positions of the Award ID

## Financial Award ID & Financial Award Number

- Elements of the Financial Award ID (21 characters)
- Current SSN
- Award Type (A=ACG, T = National SMART)
- Award Year (07)
- Pell School ID
- Award Sequence Number (Financial Award Number)

## Financial Award ID & Financial Award Number

**Example 1 - Student A**
- Student level code of 1 receives an ACG Award $750
- 	Fall Disbursement $375
- 	Award ID      xxxxxxxxxA07xxxxxx001
- 	Financial Award Number  001
- 	Spring Disbursement $375
- 	Award ID      xxxxxxxxxA07xxxxxx001
- 	Financial Award Number  001

## Financial Award ID & Financial Award Number

**Example 2 - Student B**
- Student level code of 1 receives an ACG Award $750
- 	Fall Disbursement $375
- 	Award ID      xxxxxxxxxA07xxxxxx001
- 	Financial Award Number  001
- Progresses to student level code of 2 receives an ACG Award $1300
- 	Spring Disbursement $650
- 	Award ID      xxxxxxxxxA07xxxxxx002
- 	Financial Award Number  002

## Financial Award ID & Financial Award Number

**Example 3 - Student C**
- Student level code of 3 receives a SMART Award $4000
- 	Fall Disbursement $2000
- 	Award ID      xxxxxxxxxT07xxxxxx001
- 	Financial Award Number  001
- 	Spring Disbursement $2000
- 	Award ID      xxxxxxxxxT07xxxxxx001
- 	Financial Award Number  001

## Financial Award ID & Financial Award Number

**Example 4 - Student D**
- Student level code of 3 receives a SMART Award $4000
- 	Fall Disbursement $2000
- 	Award ID      xxxxxxxxxT07xxxxxx001
- 	Financial Award Number  001
- Progresses to student level code of 4 and receives a SMART Award $4000
- 	Spring Disbursement $2000
- 	Award ID      xxxxxxxxxT07xxxxxx002
- 	Financial Award Number  002

## ACG/National SMART Phased COD Implementation 6.0

**	****	****	****	****April 17 **
- ACG and National SMART Multiple Reporting Record (MRR)
- Message Class:  AGMR07OP (ACG)
- Message Class:  SGMR07OP (National SMART)

## ACG/National SMART Phased COD Implementation 6.0

- ACG and National SMART Reconciliation Report
- Message Class:  AGRC07OP (ACG)
- Message Class:  SGRC07OP (National SMART)

## ACG/National SMART Phased COD Implementation 6.0

- ACG and National SMART Year-to-Date (YTD) Record
- Message Class:  AGYR07OP (ACG)
- Message Class:  SGYR07OP (National SMART)

## ACG/National SMART Phased COD Implementation 6.0

- ACG and National SMART Text File
- Message Class:  AGTX07OP (ACG)
- Message Class:  SGTX07OP (National SMART)

## ACG/National SMART Phased COD Implementation 6.0

- Data Requests
- Message Class:  AGRQ07IN (ACG)
- Message Class:  SGRQ07IN (National SMART)
- Data Request Responses
- Message Class:  AGRA07OP (ACG)
- Message Class:  SGRA07OP (National SMART)

## ACG/National SMART Phased COD Implementation 6.0

- SSN/Name/Date of Birth Change Report
- Consolidated Pell, ACG and National SMART report
- Message Class:  PGSN07OP

## ACG/National SMART Phased COD Implementation 6.0

- ACG and National SMART Pending Disbursement Report
- Message Class:  AGPD07OP (ACG)
- Message Class:  PGPD07OP (National SMART)

## ACG/National SMART Phased COD Implementation 6.0

- Global Jobs
- Reduce CFL to Accepted Records

## ACG/National SMART Phased COD Implementation 6.0

- Global Jobs
- Warn and Reduce Disbursements for “No Pell”
- System Generated Negative Disbursements

## Slide 163

## Contact Information

- Kathleen Wicks
- Phone: 202-377-3110
- Email: _[Kathleen.Wicks@ed.](mailto:Kathleen.Wicks@ed.gov)__[gov](mailto:Kathleen.Wicks@ed.gov)_

## Common Origination and Disbursement Update 

- Mike Murray

## ACG and National SMART Processing

- Common Record and Web processing for ACG and National SMART for the 2006-2007 Award Year
- With the introduction of ACG and National SMART...
- New Schema
- New Message Classes
- New Edits

## Schema 2.0e

- ACG and National SMART Common Records must be submitted in Schema Version 2.0e
- COD System will continue to accept Pell and/or Direct Loan records in previous versions
- COD System continues to “echo-back” Common Record Response Documents in the same schema version as the submitted record
- All System-Generated Responses returned in Schema Version 2.0e

## COD will be moving to a new Common Record Schema version 2.0e with December 16 release of COD
Software Vendors/ Schools are encouraged to start processing with the new schema on December 16, 2006
ACG/ National SMART cannot be submitted to COD using an earlier version of the schema
For Award Years 2002-2003 through 2006 -2007 System Generated responses will be returned in the NEW Schema version 2.0e
Software Vendors/ Schools are required to start processing with the new schema on April 14, 2007

- Software Vendors/ Schools are encouraged to start processing with the new schema on December 16, 2006
- ACG/ National SMART cannot be submitted to COD using an earlier version of the schema
- For Award Years 2002-2003 through 2006 -2007 System Generated responses will be returned in the NEW Schema version 2.0e
- Software Vendors/ Schools are required to start processing with the new schema on April 14, 2007

## ACG and National SMART Common Record Elements

- <FinancialAwardType>
- AcademicCompetitivenesssGrant
- NationalSMARTGrant
- <StudentLevelCode> required for an ACG or a National SMART award
- For ACG, must be 0, 1 or 2
- For National SMART, must be 3 or 4

## ACG and National SMART Common Record Elements

- <FinancialAwardID> required for an ACG or National SMART award
- <FinancialAwardNumber> required for an ACG or National SMART award

## ACG Common Record Elements

- <EligibilityPaymentReasonCode>
- Required for ACG only, valid values are:
- 01 = High School Program
- 02 = Advanced Placement/International Baccalaureate Coursework
- 03 = Coursework
- <RigorousHighSchoolProgramCode>
- 6 alpha numerical string
- Example: AL0001
- Required for ACG only if <EligibilityPaymentReasonCode> = 01
- Valid Values found in Volume VI, Section 9 of COD Technical Reference

## National SMART Common Record Elements

- <ProgramCIPCode>
- 7 numerical string
- Example for Computer and Information Sciences, General is 11.0101
- Required for National SMART award, valid values found in Volume VI, Section 9 of the COD Technical Reference
- NOTE: Refer to Volume II, Section 2 for more information on the Common Record Layout

## ACG and National SMART Message Classes

- Common Record Program Specific, Non Award Year Specific
- ACG
- CRAGMYIN – Common Record Documents
- CRAGMYOP – Responses
- National SMART
- CRSGMYIN – Common Record Documents
- CRSGMYOP – Responses

## ACG and National SMART Message Classes

- Common Record Program Specific, Award Year Specific (06/07 AY)
- ACG
- CRAA07IN – Common Record Documents
- CRAA07OP – Responses
- National SMART
- CRSG07IN – Common Record Documents
- CRSG07OP – Responses

## Establishing an ACG or National SMART Award

- COD establishes award information per student, per school, and per grade level
- Student level code can span multiple award years
- Maximum scheduled award amount for ACG and National SMART awards at a single school or across multiple schools cannot exceed the maximum scheduled award amount

## Establishing an ACG Award

- The following fields are required to establish an ACG award
- All the fields required to establish a Pell Grant, plus:
- Financial Award ID
- Financial Award Number
- Student Level Code
- Eligibility/Payment Reason Code
- High School Program Code (if Eligibility/Payment Code = 01)
- Citizenship Status Code

**Notes:**
Citizenship Status: The person's citizenship status. COD will pull
student citizenship status from CPS. This is an override field for student
citizenship status to allow schools to report correction information
from documentation located at the school. This field must be submitted
for both the borrower and the student when submitting a PLUS loan.
For ACG and National SMART, this value must be equal to 1.

For a student to be eligible to receive an ACG or National SMART award, he/she must be a U.S. citizen (Citizenship Status = 1), so a valid value is required for COD to build that award.  We are enforcing this by expanding Edit 14 to apply to ACG and National SMART (prior to HERA, it was only applied to DL PLUS).  We are not requiring schools to submit this value in the Common Record because this is something COD can pull from CPS; however schools are encouraged to send this tag.

## Establishing a National SMART Award

- The following fields are required to establish an ACG award
- All the fields required to establish a Pell Grant, plus:
- Financial Award ID
- Financial Award Number
- Student Level Code
- Program CIP Code
- Citizenship Status Code

**Notes:**
Citizenship Status: The person's citizenship status. COD will pull
student citizenship status from CPS. This is an override field for student
citizenship status to allow schools to report correction information
from documentation located at the school. This field must be submitted
for both the borrower and the student when submitting a PLUS loan.
For ACG and National SMART, this value must be equal to 1.

For a student to be eligible to receive an ACG or National SMART award, he/she must be a U.S. citizen (Citizenship Status = 1), so a valid value is required for COD to build that award.  We are enforcing this by expanding Edit 14 to apply to ACG and National SMART (prior to HERA, it was only applied to DL PLUS).  We are not requiring schools to submit this value in the Common Record because this is something COD can pull from CPS; however schools are encouraged to send this tag.

## New Edits 

- Edit 14 – Citizenship Status is not eligible for this award
- Edit 123 – Incorrect Grade Level for ACG/National SMART Awards
- Edit 124 – Cannot change Grade Level
- Edit 125 – ACG/National SMART recipients must be Pell eligible
- Edit 126 – Incorrect Eligibility/Payment Reason for ACG
- Edit 127 – Missing High School Program Code

**Notes:**
We are enforcing this by expanding Edit 14 to apply to ACG and National SMART (prior to HERA, it was only applied to DL PLUS). 

## New Edits

- Edit 128 – Unnecessary High School Program Code
- Edit 129 – Invalid High School Program Code
- Edit 130 – Award Amount Exceeds Maximum Scheduled Award for ACG
- Edit 131 – Incorrect CIP Code Value

## New Edits

- Edit 132 – Award Amount Exceeds Maximum Scheduled Award for National SMART grant
- Edit 134 – Disbursement exceeds scheduled award at multiple schools for ACG
- Edit 135 –Disbursement exceeds scheduled award for ACG at your school
- Edit 136 –Disbursement exceeds scheduled award for National SMART grant at your school
- Edit 137 – Disbursement exceeds scheduled award at multiple schools for National SMART grant
**NOTE**:  Refer to Volume II, Section 4 for a complete list of Edits

## Pre-Implementation Testing 5.2B

- For a selected group of schools & vendors will include
- Kick off meeting: October 2 – 6
- Manual Validation Support: October 9 – November 3 (20 days)
- Structured testing support November 6 – December 9th (23 days)

## Slide 182

## Contact Information

- Mike Murray
- Phone: 202-377-3128
- Email: Mike.Murray@ed.gov

## Lunch on your own

## Information Framework/	Student Aid History Management	 

- Pam Eliadis

## Federal Student Aid Activities:

**Data Strategy Initiative**

- Initial Steps:
- Validated current Federal Student Aid business functions
- Analyzed how well those functions met  the current business needs

## NSLDS Analysis Results:

**Data Strategy Initiative**

- NSLDS is more than a system
- It is a critical business capability area for Federal Student Aid
- NSLDS is used for enterprise purposes:
- Data Collection
- Data Utilization
- Information Analysis and Dissemination
- All required data is not currently collected
- Timing of data collection is inconsistent with  business process requirements
- Adaptation to data standardization efforts would improve timeliness and integrity of data

## Federal Student Aid Activities:

**Data Strategy Initiative**

- Developed an Enterprise Target State Vision (TSV) and identified Business Capability Areas (BCAs)
- Application, Origination, and Disbursement
- Borrower Services
- Integrated Partner Management
- Student Aid History Management
- Partner Payment Management
- Financial Management
- Within the TSV, developed a vision for Information Framework (IF)/Student Aid History Management (SAHM)

## Student Aid History Management

**The Student Aid History Management (SAHM) solution will perform the following high-level business functions:**
- Monitor aid eligibility through applicant pre-screening, post-screening, and transfer monitoring processes;
- Receive student enrollment updates from schools and their servicers, process and store this information in the Operational Data Store (ODS), and then distribute relevant enrollment updates to interested trading partners (i.e. lenders, lender/servicers, guaranty agencies).
- Manage the default rate processes including calculation, distribution, and publishing of default rates
- Provide aid-level calculation services and provide SAHM operational reports and metrics
- Manage receipt of student, aid, and organization data to provide an integrated student view of financial aid history

## Context within Target State Vision

## Information Framework

- Information Framework key components:
- Provides Data Management (Data Movement, Data Transformation, Data Quality), Metadata Management, and Master Data Management services.
- Supports two Business Capability Areas
- Student Aid History Management (SAHM, successor to NSLDS)
- Enterprise Analytics and Reporting
- Information Framework Architecture is comprised of an Operational Data Store and a Data Warehouse
- Operational Data Store (ODS)
- Integrated operational data
- Successor to NSLDS database for functional purposes
- Optimized for operational uses
- Timely data collection based on business process requirements
- Data Warehouse (DW)
- Historic and analytic data
- Summarized Data
- Optimized to fulfill reporting, analytics and query needs
- Timely updates based on reporting and analytic process requirements
- Supports data modeling

## Analysis Results: Areas Requiring Change

**FFEL Data Flows**

- Improve:
- Timeliness of data to be consistent with the business process requirements
- Collection of data to support the business process requirements
- Examples of required data include: knowledge of delinquency, MPN, discharges, etc.
- Data Collection Approach by:
- Focusing on business process and life cycle stages requirements
- Adapting to Technology Standards (i.e. XML)
- Implementing Data Standards (i.e. CommonLine)
- Consistency of Data Processes
- Examples of consistency include editing of data, data exchange formats, etc.

## Goals for Re-engineering:

**FFEL Data Flows**

- Align with Federal Student Aid Data Strategy Efforts
- Implement FFEL data flow changes to facilitate design and implementation of Information Framework(IF)/ Student Aid History Management (SAHM)
- Improve Data Usefulness:
- Data Timeliness
- Data Quality
- Program Monitoring and Oversight

## Students, Parents, and Schools

**Benefits:**

- Timely information for making eligibility decisions
- Enhanced data integrity
- Program Information Parity

## Lenders, Lender/Servicers, and Guaranty Agencies

**Benefits:**

- Data source becomes responsible for reporting, which brings them control and flexibility
- Standardized reporting for all life-cycle stages (i.e CommonLine)
- Reduced duplicative reporting among FFEL participants
- Interface Consistency

## Student Aid Programs

**Benefits:**

- Improved Customer Service to all constituents
- Facilitates better decision making
- Enhanced data integrity
- Improved oversight of FFEL Program

## Achieving our Proposed Vision

**FFEL Data Flows**

- Next Steps:
- Collaboration with community stakeholders
- Establish workgroups comprised of community members
- Definition of requirements

## Questions, Comments, Suggestions

## Contact Information

- Pam Eliadis
- Phone: 202-377-3554
- Email: _[Pam.](mailto:Pam.Eliadis@ed.gov)__[Eliadis](mailto:Pam.Eliadis@ed.gov)__[@ed.](mailto:Pam.Eliadis@ed.gov)__[gov](mailto:Pam.Eliadis@ed.gov)_

## Break

## eAuthentication in Higher Education

- Tim Bornholtz

## What is eAuthentication?

- What is a Federation?
- What is Transitive Trust?
- How are they different?

## Let’s Start with A Math Lesson

- Transitive property of equality
- If *a = b* and *b = c*
- Then *a = c*

## Translate That To Trust

- Christopher trusts Nicholas
- Nicholas trusts Stephanie
- Christopher will (usually) trust Stephanie

## Boundaries of Trust

- These trust relationships can only go so far.
- We probably would not trust a friend of a friend of a friend of a friend.
- There are not indefinite levels of trust.
- The boundaries of your trust make up the Federation.

## Federation

- A Federation is a group of organizations that have agreed to trust each other.
- All members of the federation trust all other members within the federation.
- Separate agreements with each and every member are not necessary.

## Rules of a Federation

- All members of a federation agree to abide by the rules of the federation.
- Each federation has some sort of “steering committee” that decides on the rules:
- Legal rules – who can participate and what can they do within the federation.
- Technical rules – technical infrastructure and specifications necessary to communicate with other federation members.

## A Federation Must Provide

- Privacy
- Strength of identity proof
- Regulation / policies
- Ease of use
- Audit
- Indemnification

## So What Is eAuthentication?

- eAuthentication is a Federation of US government agencies and private sector organizations.
- GSA is coordinating the federation
- Determined the legal policies required for joining the network.
- Specified the technical requirements to participate.

## Federal eAuthentication

- Leverages many existing NIST standards
- Set standards for
- Identity proofing
- SAML bindings
- Credential Assessment Framework
- Risk Assessment
- Interoperability lab
- As of 6/30/06
- Sixteen agencies signed up as Relying Party
- Twelve Relying Parties in production
- Six Credential Service Providers

## Electronic Authentication Partnership

- EAP is a multi-industry partnership that is bringing together both the public and private sector.
- Replacing custom bilateral agreements with a uniform set of rules.
- Developing a standard evaluation process for credentials and setting uniform approaches and minimum requirements for authentication.

## Authentication vs. Authorization

- Members of a federation determine what to trust and for what purposes on an application level basis.
- Authenticate locally.
- Passwords **never** go over the wire.

## eAuthentication Levels of Risk

- Each application needs to determine its level of risk.
- A public service to reserve campgrounds is a very low risk.
- A financial application for grants and loans is a higher risk, but there is no risk of loss of life.
- The security codes to access a nuclear warheads is a very very high risk.

## eAuthentication Credential Strength

- NIST has defined four levels of user authentication in M-04-04.
- Level 1: little or no confidence
- Level 2: Some confidence
- Level 3: High confidence
- Level 4: Very high confidence
- These are based on the strength of identity proofing and strength of credentials.
- Something you know (e.g. password)
- Something you have (e.g. ID badge)
- Something you are (e.g. fingerprint)

## Shibboleth

- Shibboleth is open source software which provides Web Single SignOn (SSO).
- Uses Security Assertion Markup Language (SAML) as defined by OASIS.
- Access control based on attributes
- Users can usually decide which attributes are released to each service provider.
- Each service provider can specify a minimum set of requirements necessary to grant access.

## InCommon

- Federation to support a common framework to access online resources in support of education and research.
- Uses Shibboleth as the federating software.
- Provides standard conduct for all members to collaborate.
- Economies of scale for contractual agreements.

## Members of InCommon

- Case Western Reserve University
- Cornell University
- Dartmouth
- Georgetown University
- Internet2
- Miami University
- Napster, LLC
- OhioLink - The Ohio Library & Information Network
- Penn State
- Stanford University
- SUNY Buffalo

- The Ohio State University
- The University of Chicago
- University of California, Los Angeles
- University of California, Office of the President
- University of California, Riverside
- University of California, San Diego
- University of Rochester
- University of Southern California
- University of Virginia
- University of Washington

## Other Shibboleth Federations

- University of Maryland – 16 campuses
- University of Texas – 23 campuses
- University of California system
- California State system
- The Ohio State University

## Prominent International Federations

- FEIDE – Norway
- Educational sector in Norway.
- HAKA Federation – Finland
- Identity federation of Finnish universities, polytechnics and research institutions
- SDSS – United Kingdom
- Federation for managing access to UK academic online resources
- SWITCH – Switzerland
- Eleven universities - more than 140,000 users
- More than 80 resources - primarily in the field of e-learning

## Inter-Federation Models

- Some organizations will join several federations and manage them as distinct groups.
- A more streamlined approach, though more difficult, is to create peering arrangements between the distinct federations.
- These peering arrangements allow all members of one federation to access the resources of the other federation.
- Some peering arrangements may be bilateral – meaning the sharing works both ways.

## InCommon and eAuthentication

- InCommon and the federal eAuthentication are working on a peering agreement to allow members to interoperate
- High priority effort by PMO
- One group working on policy
- One group working on the technology
- Hoping for agreement by 9/30/06
- Looking to demo in 12/06

## InCommon and eAuthentication Phases

- Phase 1)
- Use the existing SAML 1.0 profile
- NSF FastLane
- Department of Education systems
- Small number of campus users
- Phase 2)
- Upgrade to the SAML 2.0 profile
- More agency applications and more agencies
- More campuses

## Horizontal vs. Vertical Federations

- Most federations take a horizontal slice of the application space
- The federation deals with authentication and authorization but does not care about the actual business process.
- Some federations take a vertical slice of a business process
- The federation deals with one specific line of business or one specific application within a line of business.

## Meteor 

** ****A Vertical Federation for Student Aid**
- Meteor is an effort to provide financial aid professionals and students with online aggregated financial aid award information from various industry participants.
- Meteor enables students to obtain detailed, real time student aid information directly from the web.
- Meteor enables the financial aid professional to supplement their counseling services.

## Types of Data Available

- FFELP
- Alternative/Private Loans
- State Grants & Scholarships (Summer 2006)
- Perkins (In development)
- Direct Loans (Planned)
- Pell Grants (Planned)

## The Meteor Process

- One

- Two

- Access Providers

- Data Providers

- Financial Aid Professional orStudent/BorrowerorAccess Provider RepresentativeorLender

- Three

- Index Providers

- Users

## Authentication Process:

-  Student logs into Access Provider site (i.e. school,   lender, servicer or guarantor)
-  Access Provider follows their local authentication  procedures, assigns a role and retrieves the appropriate assurance level from the Meteor Registry
-  Access Provider builds the security assertion
- AP Unique ID
- User Role
- End User Identifier
- Authentication Process ID
- Assurance Level

## Authentication Process:

- Access Provider digitally signs the request and queries the Index Provider
- Index Provider validates the provider (digital certificate) against the Registry;
- Index Provider builds a response message and digitally signs and sends the request to the Access Provider

## Authentication Process:

- Access Provider receives the response and validates the provider against the Registry; validates the digital signature; validates assurance levels for Data Provider requirements; builds, signs, and sends the request message
- The same validation process continues for the Data Provider’s receipt and response and the Access Provider’s receipt and display of the Meteor messages.

## 100% of FFELP guarantee volume
Over 5.6 million Direct Loan Program accounts
Over 13.2 million FFELP servicer accounts
Over 1.6 million Perkins/Private/Alternative Loan servicer accounts (including some managed by schools themselves)

- Over 5.6 million Direct Loan Program accounts
- Over 13.2 million FFELP servicer accounts
- Over 1.6 million Perkins/Private/Alternative Loan servicer accounts (including some managed by schools themselves)

**Clearinghouse as Index Provider**

**Notes:**
The National Student Clearance house was selected as the index provider for the Meteor Network because of the comprehensive amount of data contained in their data base.

## Meteor Customization	

- Meteor screens can be customized to blend with the service providers current web services
- Meteor allows a service provider to customize the use of the data provided in the Meteor Network
- e.g. MYF Exit Counseling application
- Not a standard Meteor implementation
- Customized screens
- Further integration is possible!
- Meteor software can be used in other internal applications with approval from the MAT

**Notes:**
Meteor screens can be customized to blend with the service providers current web services Meteor also allows a service provider to customize the use of the data provided in the Meteor Network (with approval from the Meteor Advisory Team).  For example, as mentioned earlier, the Mapping Your Future Exit Counseling application is Not a standard Meteor implementation.  In addition to adding new functionality, new Customized screens were also created for this custom application of the software.  Furthermore, the Meteor software can be used in other internal applications with approval from the Meteor Advisory Team.

## Data is sent directly from the data provider’s system and is not altered in any way within the Meteor software
All data is electronically transmitted securely using SSL encryption
Independent audit showed no serious vulnerabilities with the software

- All data is electronically transmitted securely using SSL encryption
- Independent audit showed no serious vulnerabilities with the software

**Reliability and Security**

## Building Trust and Integrity

- The Meteor Advisory Team sought input and expertise regarding privacy and security from the sponsoring organizations and the NCHELP Legal Committee.
- Analysis was provided in relation to GLB and individual state privacy laws.
- The analysis revealed that Meteor complied with GLB, FERPA, and known state privacy provisions.

## Creating the Federation

**Challenges and Opportunities**
- Policy
- Provider eligibility
- Security and privacy
- Removal from the network
- Consensus Building
- Over 40 providers (challenge!)
- Collaboration
- Over 40 providers (opportunity!)

## Lessons learned

- The policy work is much harder than the technical work.
- The legal staff at every member will need to review the policies.
- Usually need to be educated:
- Why federations work
- Why they are secure

## Benefits of Federations

- Business process optimization.
- No need to manage large userid database.
- Get the authentication information from the very best source!

## Possible Future Directions

- Identity Providers
- College Board and ACT
- More schools
- FAMS vendors
- Service Providers
- Department of Education
- Lenders, Guarantors, Servicers
- School Information Systems
- Many many others

## Questions, Comments, Suggestions

## Contact Information

- Tim Bornholtz
- Phone: 540-446-8404
- Email: tim@bornholtz.com
- Web: _[http://www.](http://www.bornholtz.com/)__[bornholtz](http://www.bornholtz.com/)__[.com](http://www.bornholtz.com/)_
- Federal eAuthentication  - *http://cio.gov/eauthentication*
- Electronic Auth Partnership - *http://eapertnership.org*
- InCommon - *http://incommonfederation.org*
- Shibboleth - *http://shibboleth.internet2.edu*
- Meteor - *http://nchelp.org/Meteor.htm*

## Round Table

## Round Table

## Closing

## Contact Information

- Katie Blot
- Chief Information Officer
- Phone: 202-377-3528
- Email: _[katie](mailto:katie.blot@ed.gov)__[.blot@ed.](mailto:katie.blot@ed.gov)__[gov](mailto:katie.blot@ed.gov)_
**Thank You for Attending!**

## Financial Award ID & Financial Award Number

- Financial Award Number also required
- Financial Award Number = Award Sequence Number
- Required for ACG and National SMART but not Pell