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Ask a Fed: GE, Sequestration, Campus Safety, and more

July 6, 2016

Federal Training Officer David Bartnicki recently provided these updates:bartnicki

Gainful Employment

Please stay tuned to IFAP for GE updates. There is a lot of guidance to review and stay abreast on. Below are some of the more recent announcements:

  • GE EA #79 – completer list view and import tools
  • GE EA #80 – additional information and helpful hints related to the completer list
  • GE EA #81 – completer list correction deadline in NSLDS is July 28, 2016

In addition, we have recorded and posted the recent GE webinars on the completer list and the completer list correction process. Please see ANN-16-10 and ANN-16-11 for links to view the recorded sessions and download presentation materials.

Sequestration FY2017

ED recently posted GEN-16-11 which outlines all of the sequestration changes to the Direct Loan, TEACH and Iraq-Afghanistan Service Grant programs for FY2017.

For Direct Loans where the first disbursement is made on or after October 1, 2016 and before October 1, 2017:

  • The loan fee for Direct Subsidized Loans and for Direct Unsubsidized Loans is 1.069%
  • The loan fee for Direct PLUS Loans (for both parent borrowers and graduate and professional student borrowers) is 4.276%.

A TEACH Grant where the first disbursement is on or after October 1, 2016 and before October 1, 2017 requires a reduction of 6.9 percent from the award amount for which the student would otherwise have been eligible.

An Iraq-Afghanistan Service Grant where the first disbursement is on or after October 1, 2016 and before October 1, 2017 requires a reduction of 6.9 percent from the award amount for which the student would otherwise have been eligible.

For more detailed information about these changes, please see GEN-16-11.

College Lists on 2017-18 ISIRs for State Agencies

I have received lots of questions from state agencies around whether or not they will get to view all schools a student lists on the ISIR and whether or not the order will be random. 

On June 8, 2016, the Department published an electronic announcement indicating that we will be delaying implementation of the randomization of the colleges until the 2018-2019 FAFSA. Therefore, 2017-2018 ISIRs sent to state grant agencies will continue to present colleges in the order that they were listed by the student on the FAFSA.

Campus Safety and Security Reporting Handbook

The Handbook for Campus Safety and Security Reporting has been updated and is a great resource created by the Department to help institutions comply with the requirements of the Clery Act. The updated Campus Safety and Security Handbook contains information for institutions regarding compliance with the new Violence Against Women’s Act requirements. The new version of the Handbook can be found as an attachment to the June 23, 2016 electronic announcement or on the Office of Postsecondary Education’s website.

Questions regarding compliance with the Clery Act can be directed to the Campus Safety Help Desk at 800.435.5985 or by email at campussafetyhelp@westat.com.

Borrower Defense NPRM

On June 16, 2016, the Department published a notice of proposed rule-making containing regulations around a borrower’s defense to repay Federal Direct Loans. Specifically the NPRM addresses the following topics:

  • Establish a new Federal standard and a process for determining whether a borrower has a defense to repayment on a Direct Loan based on an act or omission of a school.
  • Prohibit participating schools from using certain contractual provisions regarding dispute resolution processes, such as mandatory pre-dispute arbitration agreements or class action waivers, and to require certain notifications and disclosures by schools regarding their use of arbitration.
  • Codify our current policy regarding the impact that discharges have on the 150 percent Direct Subsidized Loan Limit.
  • Revise the financial responsibility standards and add disclosure requirements for schools.
  • Amend discharge provisions in the Federal Perkins Loan (Perkins Loan), Direct Loan, Federal Family Education Loan (FFEL), and Teacher Education Assistance for College and Higher Education (TEACH) Grant programs.

Please remember that with an NPRM the public as the ability to comment on the proposed rule changes. All comments must be received by August 1, 2016 in order to be considered as we develop our final regulations on these topics. For a detailed discussion around borrower defense and to review the actual draft regulations, please see the June 16, 2016 federal register

Private Education Loan Self-Certification Form

Some schools have noted that the self-certification form attached to GEN-13-15 that is used by institutions and private education loan lenders expired as of 5/31/16. At this time, Federal Student Aid is reviewing the self-certification form but until we post a new or revised self-certification form, the form contained in GEN-13-15 can continue to be used.

Career Pathway Programs and ATB Students

I wanted to point out to any of my schools that currently offer TIV eligible career pathway programs or are thinking about offering eligible career pathway programs to a resource available to schools seeking more information about the nature of Career Pathways Programs, the Career Pathways Toolkit. The PDF Toolkit document is available at the Department of Labor website. It may also be accessed via the announcement of the Toolkit’s release. You may find additional resources of use to schools at this site. 

Cash Management

Don’t forget that most of the new cash management rules became effective today, July 1, 2016. 

In addition, since I have gotten a few questions around holding TIV credit balances, I wanted to stress that the new restriction that a school cannot obtain a student authorization to hold a TIV credit balance is ONLY for schools placed on reimbursement or heightened cash monitoring by the Department of Education. If you are not on reimbursement or heightened cash monitoring, then you may still obtain student/parent authorizations to hold TIV credit balances.

FSA Training Conference

Lodging and registration is NOW open at http://fsaconferences.ed.gov/

Please join us for a knowledge-packed TIV conference November 29-December 2, 2016 at the Georgia World Congress Center in Atlanta, Georgia. Please note that hotel space fills up fast so please make your room reservations as soon as you can. Hope to see a good turn out from our SASFAA colleagues. 

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