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Latest from FSA: Ask a FED

February 18, 2014

bartnickiFederal Training Officer David Bartnicki recently released these updates on Gainful Employment, the Final Federal Register, FSA’s Net Price Calculator, and REACH FSA.

Gainful Employment Disclosures

The long awaited ED disclosure template for GE programs was released back in November 2013.  To access the disclosure template application, the institution must go to the following website: http://www2.ed.gov/policy/highered/reg/hearulemaking/2009/negreg-summerfall.html.  All institutions must update their GE Program disclosures with the 2012-2013 award year information no later than January 31, 2014 using the released template process.

 In addition, institutions must prominently provide a direct link from the home page of the GE Program website to the program’s disclosure page that was generated by the disclosure template application.  Any technical questions regarding the template can be directed to (855) 359-3697 or gedt@inovas.net.

For more information regarding the GE disclosure template, please see our GE electronic announcement #46 dated November 22, 2013.

Final Federal Register – 11/1/13 – Loans II

One specific item I wanted to highlight from our final federal register dated November 1, 2013 that dealt with loans was our regulation regarding minimum loan periods for transfer students in non-term credit and clock hour programs.  The new regulation under 34 CFR 685.301(a) (10) states –

(ii) For a student who transfers into a school from another school and the prior school originated a loan for a period of enrollment that overlaps the period of enrollment at the new school, the new school may originate a loan for the remaining portion of the program or academic year. In this case the school may originate a loan for an amount that does not exceed the remaining balance of the student’s annual loan limit.

Under this new regulation it does not matter if hours transfer in or not.  This regulation can be implemented early as of November 1, 2013.

In addition, below are some basic principles tied to the overlapping of Academic Years and loan periods in non-term settings –

  1. The abbreviated loan period starts when the student starts at school B.
  2. The abbreviated loan period ends when the AY would have ended at School A and it does not matter how many hours or weeks of instructional time the student has completed.
  3. The amount that can be borrowed in the abbreviated loan period is any remaining amount of the annual loan limit that was not disbursed at School A.
  4. The first disbursement of the remaining balance loan borrowed for attendance at School B would be disbursed at the beginning of the loan period. The loan must be multiply disbursed in at least two disbursements over the abbreviated loan period unless School B is subject to the low CDR rule, with the second disbursement of the loan disbursed at the calendar midpoint of the abbreviated loan period regardless of how many clock/credit hours or weeks of instructional time have been completed.
  5. The next loan period at School B would begin the day after the last day of the abbreviated loan period.
  6. The next loan period would be subject to the normal BBAY3 rules in that the student must complete hours and weeks of instructional time before qualifying for the second disbursement and to progress to the next academic year for annual loan limit purposes.

 Net Price Calculator

In our electronic announcement dated January 27, 2014, we indicated that the latest version of the Department’s Net Price Calculator template, which reflects data from the 2012-2013 award year, is now available at the Department’s Net Price Calculator Information Center (http://nces.ed.gov/ipeds/resource/net_price_calculator.asp).   Please ensure your NPC has been properly updated with your 2012-2013 award year information.

REACH FSA Phone Number

And in case you sometimes forget the phone number of your favorite FSA Customer Service Center or System representative, don’t forget about Reach FSA.  REACH FSA is a new phone line designed to provide the financial aid community with simplified access to FSA School Contact Centers. Schools now have the option of calling one number, 1-855-FSA-4-FAA (1-855-372-4322), to connect immediately to any of the following FSA School Contact Centers:

  • Campus-Based Call Center
  • Central Processing System (CPS)/ Student Aid Internet Gateway (SAIG) Technical Support
  • Common Origination and Disbursement (COD) School Relations Center
  • eZ-Audit Help Desk
  • FSA Research and Customer Care Center (RCCC)
  • Foreign Schools Participation Division
  • G5 Hotline
  • National Student Loan Data System (NSLDS) Customer Support Center
  • Nelnet Total and Permanent Disability Servicer
  • School Eligibility Service Group

For more information about REACH FSA, please see our electronic announcement dated November 15, 2013.

 

Kristi Jones, Southern Regional Director, Nelnet Partner Solutions

Kristi Jones, Southern Regional Director, Nelnet Partner Solutions

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