OGSLP Online News

Final Rules and Other ED Announcements

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Program Integrity Final Rules

The Department of Education (ED) announced the final rules for Program Integrity in the Oct. 29 Federal Register. We will provide articles with more in-depth information about each topic in future editions of the Online News. In the meantime, below is a summary of the rules which will go into effect on July 1, 2011:

New Military Deferment Request Form

On Nov. 26, ED announced the approval of a new deferment request form for Military Service/Post-Active Duty Students for borrowers in the Direct Loan, FFEL and Perkins loan programs. The new Military Deferment Request Form PDF is available on OGSLP.org and guidance on how to use the new form can be found in DCL GEN-10-17/FP-10-07/CB-10-01.

FFELP and Perkins participants are responsible for ensuring the form used is identical to the form approved by the Office of Management and Budget. No changes may be made except those expressly authorized by ED.

NSLDS Transfer Student Monitoring

New NSLDS process and batch file layouts, dated Oct. 27, describe the new transfer student monitoring and financial aid history files. If you have questions about these newly formatted files, contact NSLDS Customer Support at 800.999.8219 (toll-free) or nslds@ed.gov.

Direct Loan Transfer Initiative

In 2010, ED assigned Direct Loans to its five federal loan servicers. As a result, some borrowers have more than one servicer for their Direct and/or FFELP loans. To help borrowers understand which servicer s/he must submit a payment to, ED announced an initiative to place all of a borrower’s loans with a single servicer.

This initiative began the last week of November and will continue through December. It will also be repeated in January and every other month thereafter. ED acknowledges that this may not solve every borrower’s multi-servicer issues and is willing to work with individual borrowers on a case-by-case basis.

For more information, see the Q&A provided by ED or contact the servicing centers directly.

New Address for Submitting Battered Immigrants Forms

ED announced an address change for the submission of the DHS G-845S Form for Battered Immigrants – Qualified Aliens. The new address is:

U.S. Citizenship and Immigration Services
Attn: Immigrant Status Verification Unit
10 Fountain Plaza, 3rd Floor
Buffalo, NY 14202

For more information, see the Nov. 5 e-announcement or the June 4 DCL GEN-10-07.

Inaccurate Data on NSLDS Report

On Nov. 18, ED announced an inadvertent error in the NSLDS School Repayment Information Loan Detail Report. This report provides the current repayment status of borrowers for a specific school during a specific time period. Information provided in this report can be used by schools to gauge their default rate over time.

Beginning this past April, ED accidentally excluded defaulted FFELP loans they purchased from the numerator calculation of the report. These loans were only in the denominator calculation and were incorrectly flagged as denominator only.

The default rate for 2009, for example, is calculated as “borrowers who entered repayment in 2009 and defaulted in 2009 or 2010” divided by “borrowers who entered repayment in 2009.” (Cohort Default Rate Guide, page 2.1-3). Because of this error, schools’ default rates may have been reported lower than they should. The correct numerator calculation will be available in the December DRC015 report.

For more information, see the Issue with NSLDS School Repayment Information Loan Detail Report e-announcement or contact NSLDS Customer Support at 800.999.8219 (toll-free) or nslds@ed.gov.

If you’d like to know more about the free tools and services we offer to help you boost your school’s default prevention efforts, contact Wayne Sparks at 800.247-0420 (toll-free).

TPD Discharge Update

ED updated the Aug. 13, 2010 e-announcement on Nov. 15 by replacing two previous attachments with an updated attachment entitled, “Errata Sheet for Perkins TPD Discharge Assignment Documents.” The new document provides a list of attachments that were replaced along with a summary of the changes.

For more information, see the TPD Discharge Information – Updated Perkins Assignment Procedures e-announcement.

DL Processing Information

ED recently provided guidance that outlines how to make disbursement adjustments and how to reduce Direct Loan (DL) awards to zero. See the Nov. 9 e-announcement for more information.