Session 10 Common Origination Disbursement COD System Update

Session 10 Common Origination & Disbursement (COD) System Update Kathleen Wicks and Wendy Jerreld | Nov. 2012 U. S. Department of Education 2012 Fall Conference

Agenda Pell Lifetime Eligibility Used (LEU) Recap COD Release 11. 2 Grant Update COD Release 12. 0 Grant Update Top Grant COD Edits Ability To Benefit (ATB) Update COD Release 11. 2 Direct Loan Update COD Release 12. 0 Direct Loan Update Top Direct Loan COD Edits Future COD Enhancements Helpful COD Information 2

Pell LEU Recap CAA 2012 Pell Changes Recap On December 23, 2011, President Obama signed into law the Consolidated Appropriations Act, 2012*. • Reduces the duration of a student’s Federal Pell Grant eligibility from 18 semesters to 12 semesters § Pell LEU equivalent of 900% to 600% • Applies to ALL Pell-eligible students effective with the 2012 -2013 award year • Numerous Pell LEU communications *Federal Pell Grant Duration of Eligibility - Public Law 112 -74 amended HEA section 401(c)(5) 3

Pell LEU Recap Spring 2012 Pell LEU Recap On April 16, 2012, COD began performing outreach to impacted 2012 -2013 FAFSA Pell-eligible applicants. • Targeted e-mail messages sent to 2012 -2013 FAFSA Pell-eligible applicants near, or exceeding, an LEU percentage of 600% • Pell LEU applicant e-mail outreach continued through June 30, 2012 4

Pell LEU Recap COD 2012 -2013 Pell LEU Report The Pell LEU Report identifies 2012 -2013 Pell-eligible CPS applicants with LEUs greater than or equal to 450%. • Each school’s report includes students who listed a Federal School Code on their 2012 -2013 FAFSA • Generated weekly in school’s Pell newsbox on COD Reporting Website • CSV format so it can be easily imported and sorted • Generated for 2012 -2013 award year until 6/30/13 5

Pell LEU Recap COD 2012 -2013 Pell LEU Report For an applicant to appear on a school’s “Pell Lifetime Eligibility Used 2012 -2013” report, the following are required: • Submitted a 2012 -2013 FAFSA • Pell-eligible for the 2012 -2013 award year as determined by CPS • LEU greater than or equal to 450% as determined by the COD System 6

Pell LEU Recap COD 2012 -2013 Pell LEU Report 7

Pell LEU Recap COD Release 11. 1 Pell Modifications With Release 11. 1, on July 7, 2012, the COD System modified the following LEU functionality: • COD returns the Pell LEU in the common record response for ALL Pell recipients § § Common Record Response tag <Lifetime. Eligibility. Used> returned on Pell responses Pell awards for Award Year 2010 -2011 forward • Modified current COD Warning Edits to reflect new limits 8

Pell LEU Recap COD Release 11. 1 Pell Modifications Two Pell LEU warning edits were modified: Edit # Message Updated Trigger 177 Lifetime Percentage of Eligibility Used is near the lifetime limit For Pell Awards in AY 2008 -2009 forward when a student’s LEU is greater than/equal to 450% and less than/equal to 600% 178 Lifetime Percentage of Eligibility Used has exceeded the lifetime limit For Pell Awards in AY 2008 -2009 forward when a student’s LEU is greater than 600% 9

Pell LEU Recap COD Release 11. 1 Pell Modifications There is NO HARD REJECT EDIT in COD that prevents a school from disbursing Pell awards to a student with an LEU of > 600%. Significant numbers of the warning edits have been triggered so far for the 2012 -2013 award year: Edit # Message # of Triggers 177 Lifetime Percentage of Eligibility Used is near the lifetime limit 877, 567 178 Lifetime Percentage of Eligibility Used has exceeded the lifetime limit 52, 287 * Data as of 10/15/2012 10

Pell LEU Recap COD Release 11. 1 Pell Modifications COD also provides the LEU on the following Pell Grant SAIG reports for 2010 -2011 and forward: • Pell Grant Multiple Reporting Record (MRR) • Pell Grant Reconciliation Report • Pell Grant Year to Date File 11

Pell LEU Recap COD Release 11. 1 Pell Modifications With Release 11. 1, the COD website was modified to provide additional Pell LEU information: • COD displays LEU on the COD web for all Pell recipients • A new COD Pell LEU History page available on the COD website allows schools to view historical Pell Grant student data to determine how the LEU was calculated 12

Pell LEU Recap COD Release 11. 1 Pell Modifications COD Web modified to provide additional Pell LEU information to the schools. Those pages include: • Person Pell Information page • Pell LEU History Search • Pell LEU History § Export capability in CSV format Note: COD has the most reliable Pell historical data for a student’s Pell LEU. Schools should consider COD as the system of record for Pell LEU data. 13

Pell LEU Recap COD Release 11. 1 Pell Modifications 14

Pell LEU Recap COD Release 11. 1 Pell Modifications 15

Pell LEU Recap COD Release 11. 1 Pell Modifications 16

Pell LEU Recap COD Release 11. 1 Pell Modifications From the Pell LEU History Page users can export data to XLS format 17

Pell LEU Recap NSLDS With each disbursement, COD calculates Pell LEU for all Pell recipients and sends it to NSLDS. • NSLDS records updated with the COD LEU data § Records are not updated real-time, but on a daily basis • Displays LEU on the Professional Access-Grant Page, Student Access Grant Section, and on Transfer Monitoring/FA History files • NSLDS will provide LEU information to the CPS via the prescreening and post-screening process • COD should be considered the system of record for Pell LEU data 18

Pell LEU Recap NSLDS & CPS Interface During pre-screening for matches between NSLDS and CPS, a Pell Grant Lifetime Limit flag is provided on ISIRS to schools: Pre-Screening Flags 19 Description E Limit met or exceeded (= or > 600%) C Close to limit (> 500% but < 600%) H High % warning (= or > 450% but < or = 500%) N No Problem

Pell LEU Recap NSLDS & CPS The post-screening Reason Codes for match between NSLDS and CPS on ISIRS are: Reason Code 20 Description 20 Pell Grant eligible and met/exceeded Pell LEU limit 21 No longer meeting/exceeding Pell Grant LEU limit 22 Pell Grant eligible and close to Pell LEU limit 23 No longer close to Pell Grant LEU limit

Pell LEU Recap NSLDS & CPS In July 2012, the CPS began reporting Pell LEU information for 2012 -2013 award year on ISIRs and SARs using comment codes during pre-screening to alert schools and applicants who are close to or have exceeded 600% LEU § Updates will only be provided for the records if triggered during post-screening § Refer to the 2012 -2013 SAR/ISIR Guide reissued June 2012 21

Pell LEU Recap NSLDS & CPS Starting with the 2013 -2014 award year, the following CPS ISIR modifications will be implemented: • Pell LEU limit flag will be added to the ISIR • Pell LEU percentage itself will be included in the NSLDS prescreening data • Pell LEU percentage will be added to the ISIR • For the applicant, SAR comments will be generated for all Pelleligible transactions based on the Pell LEU percentage from NSLDS § § 22 The amount of eligibility used is converted to the academic year equivalent and included in the comment For Pell-eligible transactions that include a Pell LEU of 0%, a comment provides general information about the Pell lifetime limit

Pell LEU Recap NSLDS & CPS Starting with the 2013 -2014 award year, the following CPS FAA Access modifications will be implemented for the SAR & ISIR Compare Tool: • The NSLDS Pell Lifetime Limit Flag is now displayed with the other NSLDS flags • The NSLDS Pell Lifetime Eligibility Used percentage is now displayed after the NSLDS flag 23

Pell LEU Recap NSLDS & CPS The following Pell LEU Comment Codes will be added for the 2013 -2014 award year: # 24 Description 349 General comment explaining Pell award amount limited to the equivalent of six school years. 350 Identifies an applicant who has received Pell Grants for the equivalent of up to one-half of a school year. 351 Identifies an applicant who has received Pell Grants for the equivalent of between one-half and one school year. 352 Identifies an applicant who has received Pell Grants for the equivalent of between one and one-half school years. 353 Identifies an applicant who has received Pell Grants for the equivalent of between one and one-half and two school years.

Pell LEU Recap NSLDS & CPS The following Pell LEU Comment Codes will be added for the 2013 -2014 award year: # 25 Description 354 Greater than 200% and less than or equal to 250% and Pell Grant Flag is set to Y. 355 Greater than 250% and less than or equal to 300% and Pell Grant Flag is set to Y. 356 Greater than 300% and less than or equal to 350% and Pell Grant Flag is set to Y. 357 Greater than 350% and less than 400% and Pell Grant Flag is set to Y.

COD Release 11. 2 Grant Update The COD System implemented new Pell Grant Experimental Sites with Release 11. 2 on November 9, 2012. • Experiment 1: Eligibility of students with bachelor's degrees who enroll in vocational or career programs § 10 schools for 2012 -2013, 2 schools for 2013 -2014 award year • Experiment 2: Eligibility of students enrolled in certain shortterm training programs § 26 12 schools for 2012 -2013, 2 schools for 2013 -2014 award year

COD Release 11. 2 Grant Update Pell Experimental Sites With Release 11. 2, the COD System implemented new COD Experimental Sites functionality for the ability to submit and accept Pell Grant records for students with a bachelor's degree that are enrolled in vocational or career programs. • Only schools that have been approved for this experiment will have this capability • Ability to process Pell Grants with the CPS Applicant Pell Eligible flag = No (N) when the award is submitted by a school that has an appropriate PEPS experimental site flag set • Processing can be performed via batch or Web for the 20122013 award year and forward 27

COD Release 12. 0 Grant Update With Release 12. 0, the COD System will implement the following functionality in March 2013: • New Award Year Set-Up for 2013 -2014 • Pell LEU Report will continue to be produced for future awards years but in SAIG format, not in the school’s Pell newsbox on the COD Reporting website § § 28 CSV Format SAIG Message Class: PGLEYYOP Where “YY” is award year Example: PGLE 14 OP for award year 2013 -2014

Top Pell COD Edits for 2012 -2013 Award Year Edit Message # of Triggers W-177 Lifetime Percentage of Eligibility Used is near the lifetime limit 877, 567 W-54 Disbursement Date Within 7 Days or Passed, Disbursement Release Indicator Set To “False” 414, 218 W-59 Duplicate Adjustment Information on File 290, 941 W-55 Disbursement Information Received 30 Days after Date of Disbursement 163, 041 R-994 Missing Value 157, 024 R-56 Sequence Number Not In Sequential Order 134, 616 R-24 Reported CPS Transaction Number Does Not Match CPS 76, 609 R-996 Invalid Value 75, 918 R-58 Duplicate Disbursement Information On File 74, 874 R-38 Student Not Pell Eligible 66, 703 * Data as of 10/15/2012 29

Ability to Benefit Update With Release 12. 0, the COD System will implement new modifications to Ability to Benefit (ATB) to improve reporting. • New valid values for <Ability. To. Benefit. Code> tag include: § 06 = High School Diploma § 07 = GED • <Ability. To. Benefit. Code> tag will be a required field • Reject Edit 994 will be triggered if the <Ability. To. Benefit. Code> tag is not submitted on origination for any program • New warning Edit 199 when <Ability. To. Benefit. Code> tag value submitted does not match the High School Diploma or equivalent value from the CPS Transaction Number • Applies to 2013 -2014 award year and forward 30

Ability to Benefit Update The Ability to Benefit modifications for award years 20112012 and forward will include: • Reject Edit 198 if the <Ability. To. Benefit. Code> tag is submitted on origination with values equal to 05 “Other” and 03 “State” for all COD programs (Pell, Direct Loans, and TEACH) for origination and maintenance • These are never valid codes Attention: Any submission of value 05 will be rejected. 31

Ability to Benefit Update Currently, there are numerous outstanding originations that still have a value of 05 in the <Ability. To. Benefit. Code> tag. Program Award Year Origination Count Total Originations Total Disbursements Direct Loan 2011 -2012 500 $2, 421, 523. 00 $2, 232, 460. 00 Direct Loan 2012 -2013 186 $922, 778. 00 $427, 953. 00 Pell 2011 -2012 457 $2, 023, 594. 00 $1, 422, 701. 97 Pell 2012 -2013 366 $1, 745, 086. 00 $714, 145. 23 TEACH 2011 -2012 2 $6, 000. 00 TEACH 2012 -2013 1 $1, 000. 00 * Data as of 10/15/2012 32

COD Release 11. 2 DL Update The COD System implemented the following functionality with Release 11. 2 on November 9, 2012. • Final modifications for ending eligibility for upfront Direct Loan interest rebates § Required: Awards with invalid upfront interest rebates must be corrected • New Direct Loan Experimental Sites for COD • Retire Warning Edit 111 • Paper Promissory Notes will no longer be available 33

COD Release 11. 2 DL Update DL Experimental Sites The COD System implemented new Direct Loan Experimental Sites. • Experiment 3: Single disbursement of a one-term loan for study abroad students § 5 schools for 2012 -2013, 2 schools for 2013 -2014 award year • Experiment 4: Early disbursement for study abroad students and for students enrolled in foreign institutions § § 9 schools for 2012 -2013, 2 schools for 2013 -2014 award year Edit 50 will allow approved schools to submit Direct Loan disbursements that are dated up to 30 days before start of classes/award begin date • Experiment 5: Unequal disbursements § 34 4 schools for 2012 -2013, 4 schools for 2013 -2014 award year

COD Release 11. 2 DL Update Retire Paper Promissory Notes The COD System will be modified to publish the new OMB versions of the Master Promissory Note (Pnote) for Sub/Unsub and PLUS Loans. • Student. Loans. gov Pnote will be updated to the new version • Paper and electronic Pnote correspondence will no longer be generated • Printable Pnotes will be available on Student. Loans. gov § § 35 Prior to Sign-In: Print MPN link will be added to the Tools and Resources dropdown Signed-In: Print MPN link on the left navigation under the Master Promissory Note header

COD Release 12. 0 DL Update With Release 12. 0, the COD System will implement the following functionality in March 2013: • New Award Year Set-Up for 2013 -2014 • Direct Loan and TEACH SAS Disbursement Detail made available On Demand • Exit Counseling available on Student. Loans. gov • Entrance Counseling modified to Financial Awareness Counseling format 36

COD Release 12. 0 Update SAS Disbursement On Demand Starting with the 2013 -2014 Award Year, COD will provide schools the option to request TEACH and Direct Loan SAS Disbursement Detail on an On Demand basis. • Grant Data Requests, DL Rebuild and SAS Disbursement Detail will be combined on one COD webpage • New message classes will be created for the data requested DL and TEACH SAS files 37

COD Release 12. 0 Update SAS Disbursement On Demand Users will have the following options for SAS Disbursement Detail On Demand: • • • 38 Direct Loan or TEACH Program Award Year Start Date/End Date, Month-to-Date or Year-to-Date Format Display Names of Borrowers DL SAS Detail

COD Release 12. 0 Update SAS Disbursement On Demand 39

COD Release 12. 0 Update SAS Disbursement On Demand 40

COD Release 12. 0 Update SAS Disbursement On Demand Direct Loan SAS Message Classes Activity Type Format Type New Message Class Header Month-to-Date Fixed-Length DSMFyy. OP Month-to-Date 41 Comma-Delimited with Headers Comma-Delimited without Headers Pipe-Delimited DSMHyy. OP DSMCyy. OP DSMPyy. OP

COD Release 12. 0 Update SAS Disbursement On Demand Direct Loan SAS Message Classes Activity Type Format Type New Message Class Header Date Range Fixed-Length DSRFyy. OP Date Range 42 Comma-Delimited with Headers Comma-Delimited without Headers Pipe-Delimited DSRHyy. OP DSRCyy. OP DSRPyy. OP

COD Release 12. 0 Update SAS Disbursement On Demand Direct Loan SAS Message Classes Activity Type Format Type New Message Class Header Year-to-Date Fixed-Length DSYFyy. OP Year-to-Date 43 Comma-Delimited with Headers Comma-Delimited without Headers Pipe-Delimited DSYHyy. OP DSYCyy. OP DSYPyy. OP

COD Release 12. 0 Update SAS Disbursement On Demand TEACH SAS Message Classes 44 Activity Type Format Type New Message Class Header Month-to-Date Comma-Delimited TSOMyy. OP Year-to-Date Comma-Delimited TSOYyy. OP Date Range Comma-Delimited TSORyy. OP

COD Release 12. 0 Update Exit Counseling on Student. Loans. gov Exit Counseling will be made available on Student. Loans. gov with Release 12. 0. • Entrance and Exit Counseling will be in a similar format to the Financial Awareness Counseling Tool (FACT) • New <Counseling. Type> value: Exit. Counseling § <Counseling. Type> value was published with the November COD Technical Reference edition • Exit Counseling data will be added to the existing COD Counseling Report • NSLDS will continue to send details for Exit Counseling Session 9 – Loan Counseling Tools will provide overviews for Entrance, FACT, and Exit Counseling 45

COD Release 12. 0 Update Exit Counseling on Student. Loans. gov Counseling landing page will provide students with information on selecting the type of Counseling Entrance Counseling will also be transitioned into the FACT format 46

COD Release 12. 0 Update Exit Counseling on Student. Loans. gov COD web’s Counseling Search will include Exit Counseling 47

COD Release 12. 0 Update Exit Counseling on Student. Loans. gov School Options will include Exit Counseling participation and response frequency 48

Top Direct Loan COD Edits for 2012 -2013 Award Year Edit Message # of Triggers W-111 First Actual Disbursement was submitted less than 5 days prior to the first disbursement date without an indication that the school printed/provided a disclosure statement 14, 435, 470 W-54 Disbursement Date Within 7 Days or Passed, Disbursement Release Indicator Set To “False” 6, 372, 184 R-62 Disbursement Amount(s) Is Less Than Or Equal to Zero for Disbursement Sequence Number 1 4, 140, 556 W-119 COD has reduced the anticipated disbursements and made this loan inactive based upon your record reducing the Award Amount to $0 2, 232, 560 W-55 Disbursement Information Received 30 Days after Date of Disbursement 985, 802 * Data as of 10/15/2012 49

Top Direct Loan COD Edits for 2012 -2013 Award Year Edit Message # of Triggers W-59 Duplicate Adjustment Information on File 978, 874 R-50 Disbursement Date Outside Allowable Window 917, 828 R-81 No Promissory Note on File 750, 232 W-36 PLUS Credit Decision Status is not accepted for this PLUS award 595, 949 R-994 Missing Value 592, 895 * Data as of 10/15/2012 50

Future COD Enhancements In the coming months and future award years, the following COD System modifications may be implemented: • Begin performing full XML validation for the 2014 -2015 award year • Participation Management and AIMS system to manage COD user accounts and passwords starting in May 2013 § Visit Session 29 - Enterprise Identity Management – Leveraging PM to Provide Reduced Sign-On for COD • Pell LEU percentage dispute process • Considering a new Pell LEU edit to reject disbursements over 600% LEU 51

Future COD Enhancements XML Validation For the 2014 -2015 award year, COD will begin performing full XML validation. • New validation will be based on the most frequent COD XML errors • Example of common errors include general file formatting such as: § § § Invalid character or invalid byte Content before the <? xml tag Opening tag exists but end tag is missing • Please see the following slide for further examples 52

COD Future Enhancements XML Error Type cvc-max. Length-valid cvc-datatype-valid. 1. 2. 1 cvc-attribute. 3 cvc-min. Length-valid cvc-enumeration-valid cvc-type. 3. 1. 3 cvc-complex-type. 3. 2. 2 cvc-elt. 3. 1 cvc-complex-type. 2. 3 cvc-length-valid cvc-min. Inclusive-valid cvc-pattern-valid cvc-complex-type. 2. 2 cvc-max. Inclusive-valid 53 Error Description String is too long Value is not valid for data type Required attribute missing String is too short Value not in set of valid options Element not valid Attribute 'xsi: schema. Location' is not allowed to appear in element Required value missing Element contains children, but is defined as element-only String length is wrong (length has to be exact) Number is too small String format wrong Element contains no sub-element whereas one is expected Number is too large

COD Helpful Information COD Technical Reference Updates Date Technical Reference Updates November 2012 Technical Reference was posted including Release 12. 0 updates, but without a new schema Spring 2013 Technical Reference will be posted for any Summer 2013 updates 54

COD Helpful Information Related FSA Conference Sessions Session # 55 Title 4 Pell Grant Program Update 9 Loan Counseling Tools 11 Hands-On COD 16 Title IV Reconciliation 29 Enterprise Identity Management – Leveraging PM to Provide Reduced Sign-On for COD

Contact Information We appreciate your feedback and comments. We can be reached at: Direct Loans: Wendy Jerreld Phone: 202 -377 -4135 E-mail: wendy. jerreld@ed. gov Grants: Kathleen Wicks Phone: 202 -377 -3110 E-mail: kathleen. wicks@ed. gov 56

Contact Information COD School Relations Center E-mail: CODSupport@acs-inc. com URL: http: //www. cod. ed. gov Phone - Grants: 800 -474 -7268 Phone - Direct Loans: 800 -848 -0978 Effective December 2012 New Customer Service E-mail Address CODSupport@ed. gov 57

QUESTIONS? 58