FEBRUARY 2014 NEWSLETTER - DJA

800.242.0977

[email protected]

3000 W Kellogg Drive

Wichita, KS 67213

FEBRUARY 2014 NEWSLETTER

ACCURATELY REPORTING DIRECT LOAN DISBURSEMENT DATES

As defined in 34 CFR 668.164(a), the disbursement date is the date that a school credits a student’s account at the school or pays a student or parent borrower directly with Title IV funds received from the U.S. Department of Education (the Department) or with institutional funds in advance of receiving Title IV program funds. This is the date that a school must report to the COD System as the actual

disbursement date for a Direct Loan, as distinguished from the anticipated disbursement date. The anticipated disbursement date is the date that a school expects to disburse Direct Loan funds. The actual disbursement date is the date the funds are made available to the borrower. In many cases, the anticipated disbursement date that a school initially reports to the COD System may not be the same as the actual disbursement date. Note that if a school uses institutional funds in advance of receiving Direct Loan funds from the Department to credit a student’s school account earlier than 10 days

IMPORTANT DATES:

February 5

DJA Monthly Webinar Consumer Information 11:00 a.m. CST February 7

Deadline-Underuse Penalty Waivers for CB Programs

February 12-14 Association of Business Administrators of Christian Colleges (ABACC) Annual Conference

February 24-25

Region IV PCCS Conference Atlanta, GA

February 28 1098-T to IRS Deadline

IN THIS ISSUE:

• Disbursement Dates

• 150% Loan Limit

• Net Price Calculator

• 2014/2015 Pell Disbursement Schedules

• Campus Based Programs

• High School Diploma Q&A

• DJA Calendar

This is a very busy time of the year for all of us with so many

deadlines and processing for multiple award years. Gainful

Employment Disclosures should be published to your website by now

as that deadline was January 31st. IPEDs reporting closes mid-

February and the USDE has released the Net Price Calculator

template that you must have posted on your website in the near

future.

DJA is committed to educating our clients on compliance with USDE

regulations. This newsletter contains multiple links to the IFAP

website and other resources you will need to navigate the ever-

changing landscape of financial aid. In addition, our monthly

webinars and yearly training will keep you fluent in current

requirements. Please visit our website at www.gotodja.com if you

are interested in learning more about how DJA services can benefit

your school.

Deborah John,

President

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before the first day of classes of a payment period or, for a first-year, first-time Direct Subsidized Loan or Direct Unsubsidized Loan borrower, earlier than 30 days after the first day of the student’s program of study, the school must report the actual Direct Loan disbursement date as the 10th day before the first day of classes or the 30th day after the beginning of the student’s program of study, as applicable. Because several terms and conditions of Direct Loans are tied to the actual disbursement date, this date must be accurately reported. These terms and conditions include the following: Interest Accrual – The actual disbursement date is the date when interest begins to accrue on a Direct Loan. The actual disbursement date is passed on to a borrower’s federal loan servicer. The borrower is responsible for paying all interest that accrues on a Direct Unsubsidized Loan or Direct PLUS Loan during all periods, beginning on the actual disbursement date. For a Direct Subsidized Loan, the federal government subsidizes the interest that accrues during certain periods. If the actual disbursement date is reported inaccurately, the periods when the borrower is responsible for paying interest or the federal government subsidizes the interest will not be correctly determined. 120-Day Rule (Returning Funds) – A borrower is not responsible for paying any interest or loan fee on Direct Loan funds that are returned to the Department within 120 days of the actual disbursement date. If the correct actual disbursement date is not reported, the borrower may not have the full 120 days from the date the loan funds were made available to return the disbursement without having to pay interest and loan fee charges. Origination Fee and Interest Rate Percentages – In many cases, the date of the first actual disbursement determines the specific origination fee and interest rate that apply to a Direct Loan. If the first actual disbursement date is reported incorrectly, the origination fee or interest rate that is applied to a loan may differ from the fee or rate that is required under the law and regulations for loans first disbursed on or after a particular date. Reporting inaccurate actual disbursement dates may also result in unnecessary COD System warning edits being returned on school records or could lead to an audit or program review finding. Updating Anticipated Disbursements to Actual Disbursements – Check the Disbursement Date A school must confirm the disbursement date information when updating an anticipated disbursement (Disbursement Release Indicator [DRI] = “False”) to an actual disbursement (DRI = “True”). In many cases, the anticipated disbursement date on file does not reflect the actual date the funds were credited to the student’s account or otherwise made available to the borrower. Example of correct reporting:

• A school originates a Direct Unsubsidized Loan in July 2014 with anticipated disbursement dates of 9/10/2014 and 1/10/2015. This information is accepted on the COD System. As of the 9/10/2014 anticipated disbursement date, it is determined the borrower has not met all eligibility requirements and the disbursement cannot be made. The borrower meets all eligibility requirements on 11/1/2014 and the school disburses the funds to the borrower on that date.

• The school changes the disbursement date from 9/10/2014 to 11/1/2014 and updates the DRI from “False” to “True.” Assuming the changes pass all other COD System edits, the borrower’s loan record will accurately reflect the actual date he or she received funds.

Note: If the school did not change the disbursement date as shown in the example, the borrower would be charged interest on the Direct Unsubsidized Loan beginning on 9/10/2014, even though the borrower did not actually receive the loan proceeds until 11/1/2014.

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Additional Information Guidance on the definition of the date of disbursement and reporting disbursements can be found in:

• 34 CFR 668.164(a) • Federal Student Aid Handbook, Volume 4 – Processing Aid and Managing FSA Funds • November 2010 Electronic Announcement – Direct Loan Processing Information – Making

Disbursement Adjustments and Reducing Direct Loan Awards to Zero For information about COD System disbursement processing, refer to the COD Technical Reference (Volume II, Section 1 – Implementation Guide). http://ifap.ed.gov/eannouncements/012914DLoanProcessInfoAccurateReportDLDisburseDates.html

150% DIRECT SUBSIDIZED LOAN LIMIT ELECTRONIC ANNOUNCEMENT #8 - FINAL REGULATIONS PUBLISHED

Interim final regulations implementing the limitation on the period for which a borrower may receive a Direct Subsidized Loan (150% Direct Subsidized Loan Limit) were published on May 16, 2013. Based on public comments received USDE has made changes to the interim final rule in a final rule published in the Federal

Register on January 17, 2014 (79 FR 3108). The final regulations change several provisions of the 150% limit, and some of those changes have operational impacts on schools. These changes are described below. The preamble to the final regulations discuss the comments we received and explain the reasons for the changes that we made. The changes to the regulations apply to all Direct Subsidized Loan borrowers who are subject to the 150% limit, regardless of whether they received a Direct Subsidized Loan before or after the final regulations become effective.

Rounding Subsidized Usage Periods

Generally, a Subsidized Usage Period is the period of time, measured in academic years, for which a borrower has received a Direct Subsidized Loan, and is calculated by dividing the number of days in the loan's loan period by the number of days in the loan's academic year.

Under the interim final regulations, a Direct Subsidized Loan borrower's calculated Subsidized Usage Period

was always rounded down to the nearest quarter of a year. Under the final regulations, at 34 CFR

685.200(f)(1)(iii), a Subsidized Usage Period will be rounded up or down, as appropriate, to the nearest tenth of

a year. For example, under the interim final regulations, a borrower's calculated Subsidized Usage Period of

0.45 years would have been rounded down to 0.25 years; under the final regulations, the borrower's Subsidized

Usage Period of 0.45 would be rounded up to 0.5 years. For more information regarding the calculation of

Subsidized Usage Periods, see the Frequently Asked Questions about the 150% limit, available at

http://www.ifap.ed.gov/150PercentDirectSubsidizedLoanLimitInfo.

This change will not require schools to make any operational changes because the COD System performs the official calculation of Subsidized Usage Periods.

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Interaction Between the Annual Loan Limit Exception and Proration of Subsidized Usage Periods Based on

Part-Time Enrollment Status

Under the interim final regulations, there were two exceptions to the standard calculation of Subsidized Usage Periods. The first exception applied to borrowers who received a Direct Subsidized Loan in the amount of the annual loan limit for a period of less than an academic year (the annual loan limit exception). The second exception applied to borrowers who received a Direct Subsidized Loan while enrolled part-time (the part-time exception).

Under the annual loan limit exception a borrower has a Subsidized Usage Period of 1 year, even though the loan is received for a period of less than an academic year. For example, if a borrower is enrolled in a standard-term credit hour program and received a Direct Subsidized Loan in the amount of $3,500 for one term as a first-year student, the borrower's Subsidized Usage Period is 1.0 years, instead of 0.5 years, because the borrower received the Direct Subsidized Loan in the amount of the annual loan limit for a period of less than an academic year.

Under the part-time exception, a borrower's Subsidized Usage Period is prorated if the borrower is enrolled part-time (half time or three-quarter time). For example, if a borrower is enrolled in a standard-term credit hour program and received a Direct Subsidized Loan for a full academic year, but is enrolled half-time for that full academic year, the borrower's Subsidized Usage Period is 0.5 years, instead of 1.0 years, because the borrower's Subsidized Usage Period is prorated by 0.5 to account for the borrower's half-time enrollment status.

Under the interim final regulations, in circumstances in which the annual loan limit exception applied, the part-time exception did not apply. For example, if a borrower was enrolled half-time in a standard-term credit hour program and received a Direct Subsidized Loan in the amount of $3,500 for one term as a first-year student, the borrower's Subsidized Usage Period would be 1.0 years. Because the annual loan limit exception applied, there was no proration of the Subsidized Usage Period based on the borrower's half-time enrollment status.

Under the final regulations, at 34 CFR 685.200(f)(4)(i)-(ii), both exceptions will now apply to borrowers who are enrolled part-time and who receive the annual loan limit for a period of enrollment that is less than an academic year. In such cases, first the annual loan limit exception will be applied and then the part-time exception will be applied. Using the example from the preceding paragraph, the borrower's Subsidized Usage Period would initially be set to 1.0 years due to the annual loan limit exception, but would then be prorated by 0.5 based on the borrower's half-time enrollment status. This results in a Subsidized Usage Period for the borrower of 0.5 years.

This change will not require schools to make any operational changes because the COD System performs the official calculation of Subsidized Usage Periods.

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Maximum Eligibility Period for Bachelor’s Degree Completion Programs

Under the interim final regulations, all programs had a Maximum Eligibility Period based solely on the program's published length. Under the final regulations, at 34 CFR 685.200(f)(8)(i), an exception in that treatment has been added for bachelor's degree completion programs.

For purposes of the 150% limit, a bachelor's degree completion program is a bachelor's degree program that requires an associate degree or the successful completion of at least two years of postsecondary coursework as a prerequisite for admission to the program. Because these programs only offer the final two years of coursework necessary to confer a bachelor's degree, the programs have a published length of 2 years. Under the interim final regulations, using the published length of such programs to calculate the Maximum Eligibility Period resulted in Maximum Eligibility Period of 3 years. Under the final regulations, however, such programs will now have a Maximum Eligibility Period of 6 years.

This change will be implemented through school reporting for bachelor's degree completion programs to the COD System and NSLDS in accordance with the following standards:

• Schools will report a program length of 4 years, even though the program is only 2 years in length,

which will result in a Maximum Eligibility Period of 6 years.

• Schools will report a "Special Program Indicator" of "B". The "Special Program Indicator" that was

included in the previously posted COD schema and NSLDS enrollment reporting file layout already

included a valid value of "B".

Maximum Eligibility Period for Special Admission Associate Degree Programs

Under the interim final regulations, all programs had a Maximum Eligibility Period that was based solely on the program's published length. Under the final regulations, at 34 CFR 685.200(f)(8)(ii), an exception has been added for special admission associate degree programs.

For purposes of the 150% limit, a special admission associate degree program is an associate degree program that:

• Requires an associate degree, or the successful completion of at least two years of postsecondary

coursework , as a prerequisite for admission;

• Admits only a selected number of applicants based on additional competitive criteria which may include

entrance exam scores, class rank, grade point average, written essays, or recommendation letters; and

• Provides the academic qualifications necessary for a profession that requires licensure or certification by

the State in which the coursework is offered.

Such programs only include the two years of coursework necessary to confer the special associate degree, the published length of 2 years. Under the interim final regulations, using the published length of such programs to calculate the Maximum Eligibility Period resulted in Maximum Eligibility Period of 3 years. Under the final

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regulations, however, such programs will now have a Maximum Eligibility Period of 6 years, because the combination of required prerequisite coursework and selective associate degree coursework are analogous to a baccalaureate degree program.

This change will be implemented through school reporting for special admission associate degree programs to the COD System and NSLSDS in accordance with the following standards:

• Schools will report a program length of 4 years even though the program is only 2 years in length, which

will result in a Maximum Eligibility Period of 6 years.

• Schools will report a "Special Program Indicator" of "A". The "Special Program Indicator" that was

included in the previously posted COD schema and NSLDS enrollment reporting file layout already

included a valid value of "A".

As we noted in the preamble to the final regulations, during the Department's program compliance reviews we will evaluate whether an institution with selective admission associate degree programs which have certified that they meet the requirements under this regulation do satisfy those requirements.

http://ifap.ed.gov/eannouncements/011714RevisedFinalRegulationsPublished150PercentEANum8.html

UPDATED NET PRICE CALCULATOR TEMPLATE In accordance with section 132(h) of the Higher Education Act of 1965, as amended, each postsecondary institution that participates in Title IV federal student aid programs must post a net price calculator on its website that uses institutional data to provide estimated net price information to current and prospective students and their families based on a student's individual circumstances. This calculator must allow students to calculate an estimated net price of attendance at an institution (defined as cost of attendance minus grant and scholarship aid) based on what similar students paid in a previous year. The net price calculator is required for Title IV institutions that enroll full-time, first-time degree- or certificate-seeking undergraduate students.

Institutions may meet this requirement by using the U.S. Department of Education's (the Department) Net Price Calculator template or by developing their own customized calculator that includes, at a minimum, the same elements as the Department's template. The latest version of the Department's Net Price Calculator template, which reflects data from the 2012-2013 award year, was released on January 27th and is available at the Department's Net Price Calculator Information Center (http://nces.ed.gov/ipeds/resource/net_price_calculator.asp). In addition to the template, you can find a wide-range of resources on this website including general information, help files, and frequently asked questions related to both the net price calculator requirement and the U.S. Department of Education’s Net Price Calculator template.

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For additional assistance with the net price calculator requirement and/or the Department’s template, please

contact:

The Net Price Calculator Help Desk

(877) 299-3593 (toll-free)

[email protected] http://ifap.ed.gov/eannouncements/012714UpdatedNetPriceCalculatorTemplate.html

2014-2015 FEDERAL PELL GRANT PAYMENT AND DISBURSEMENT SCHEDULES RELEASED

USDE has released both PDF and Excel versions of the Payment and Disbursement Schedules for determining Federal Pell Grant awards for the 2014-2015 Award Year (July 1, 2014 through June 30, 2015) for full-time, three-quarter-time, half-time, and less-than-half-time students. All 2014-2015 Federal Pell Grant awards must be based on the attached schedules.

The 2014-2015 maximum Pell Grant award is $5,730. This maximum Pell Grant award for the 2014-2015 Award Year is an increase of $85 from the $5,645 maximum Pell Grant award for the 2013-2014 Award Year. The corresponding maximum Pell Grant eligible expected family contribution (EFC) for 2014-2015 is 5157 as compared to the 2013-2014 maximum EFC of 5081. The minimum scheduled award amount is $587.

As a reminder, in using the attached schedules for awarding a Federal Pell Grant to a student, the full nine-month EFC must always be used regardless of the actual enrollment status or actual period of attendance of the student. Also, the COA to be used is always based on the costs for a full-time student for a full academic year, regardless of the actual enrollment status or actual time the student will be enrolled during the award year. It is important to note, however, that the statutory restrictions of using only certain cost components in constructing a COA in some circumstances still apply. For example, for a less-than-half-time student, the COA includes only cost components for tuition and fees, books, supplies, transportation, room and board for a limited time period, and dependent care expenses. For more information on these COA restrictions please refer to Volume 3, Chapter 2, Cost of Attendance (Budget) of the Federal Student Aid Handbook.

Changes to the Central Processing System (CPS), the ISIR Analysis Tool, the Common Origination and Disbursement (COD) System, and the EDExpress for Windows software modifications that reflect the 2014-2015 payment and disbursement schedules are forthcoming. Watch for this information in future electronic announcements posted to the IFAP website.

The attachments to this DCL GEN-14-01 contain the 2014-2015 Award Year Federal Pell Grant Program Payment and Disbursement Schedules. http://ifap.ed.gov/dpcletters/GEN1401.html

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TENTATIVE 2014-2015 FUNDING LEVELS FOR THE CAMPUS-BASED PROGRAMS

On January 17, 2014, President Obama signed the Consolidated Appropriations Act, 2014 (Pub. L. 113-46), that appropriated $974,728,000 for the Federal Work-Study (FWS) Program and $733,130,000 for the Federal Supplemental Educational Opportunity Grant (FSEOG) Program for the 2014-2015 Award Year. Pub. L. 113-46 did not include an appropriation for the Federal Perkins Loan (Perkins Loan) Program.

Tentative funding levels and corresponding worksheets for the Campus-Based Programs for the 2014-2015 Award Year (July 1, 2014 through June 30, 2015) have been posted to the eCampus-Based (eCB) Web site. These tentative funding levels are determined in accordance with the Higher Education Act of 1965, as amended (HEA).

Attached to this announcement is an explanation of the calculation of the tentative funding level in the worksheet for each of the Campus-Based Programs.

Schools will be notified by e-mail when tentative funding levels and worksheets are available on the eCB Web site. These e-mails will be sent to the school’s Financial Aid Administrator, as provided in the schools most recently submitted Fiscal Operations Report and Application to Participate (FISAP) or as updated via the "Contact Info" page on the eCB Web site.

To access the worksheets:

• Log in to the eCB Web site

• Select the "Self-Service" link from the top navigation bar

• Scroll to the "Campus-Based Notifications for All Available Award Years" section

• Scroll to the "Tentative Funding Levels" bullet

• Select the "2014-2015" link

Please review the school's worksheets carefully and immediately notify the Campus-Based Call Center at the number below if data in the worksheets are not correct.

Final awards for the 2014-2015 Award Year are expected to be posted to the eCB Web site by April 1, 2014.

Additional Locations Not Eligible as of October 1, 2013 Must Be Eligible by March 3, 2014

Schools were permitted to include data in the application portion of the FISAP for students enrolled in additional locations that had not yet received eligibility determinations by the October 1, 2013 FISAP submission date. If a school does not receive an eligibility letter and Program Participation Agreement from the Department by March 3, 2014 for the newly listed locations, it must submit revised FISAP data using the eCB Web site no later than March 7, 2014. The school's revision must remove all data pertaining to students enrolled at the ineligible locations.

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Please review the 2014-2015 tentative funding worksheets carefully. For additional information about tentative funding levels, contact the Campus-Based Call Center at 877/801-7168. Customer service representatives are available Monday through Friday 8:00 A.M. - 8:00 P.M. (ET). You may also e-mail [email protected].

http://ifap.ed.gov/eannouncements/010614Tentative1415FundLevelsForCampusBasedProgs.html

DEADLINE FOR 2014-2015 UNDERUSE PENALTY WAIVER FOR THE CAMPUS-BASED PROGRAMS IS FEBRUARY 7, 2014

In accordance with sections 413(d)(2), 442(d)(2), and 462(i)(4) of the Higher Education Act of 1965 as amended (HEA), if a school returns more than 10 percent of its Federal Perkins Loan (Perkins Loan), Federal Work Study (FWS), or Federal Supplemental Educational Opportunity Grant (FSEOG) allocations, respectively, for an award year, the allocation for the second succeeding award year for that program is reduced by the dollar amount returned from the earlier year unless the school requests an underuse penalty waiver. The deadline to request a waiver of the 2014-2015 Award Year penalty of FWS and FSEOG for the underuse of 2012-2013 Award Year funds is February 7, 2014.

A school can determine if it is subject to an underuse penalty by reviewing its most recent FISAP or Campus-Based Tentative Funding Worksheet for 2014-2015 (see sections below). The school may submit an underuse penalty waiver request if the school is able to explain that the underuse was due to circumstances beyond its control and why those circumstances are not expected to recur.

The request and justification for the waiver of the underuse penalty must be submitted electronically by 11:59 P.M. (ET) on February 7, 2014. The transmission must be completed and accepted by 12:00 midnight to meet the deadline. Paper waiver request submissions will not be accepted.

Note: If the unexpended 2012-2013 FWS and FSEOG amounts exceed 10 percent of the respective allocations and the unexpended amounts exceed a school's G5 balance, the difference must be repaid through G5 within 30 days of the annual Campus-Based funds closeout in April 2014. During the closeout process, any unexpended amounts will be deobligated from G5. A school's Financial Aid Administrator will be notified by e-mail when the closeout is complete.

How to determine if there is an Underuse Penalty on the Tentative Funding Worksheets

The Campus-Based Tentative Funding Worksheets for 2014-2015 have been posted to the eCampus-Based (eCB) Web site. If the school failed to expend more than 90 percent of its 2012-2013 program allocation(s), an underuse penalty is applied to the 2014-2015 awards and the awards are reduced by the full amount that was not expended.

When a school accesses the worksheets from the eCB Web site's "Self-Service" page, the FSEOG Worksheet is at the top of the screen. The FWS Worksheet is below it. The percentage of underused FSEOG funds is shown in the FSEOG Tentative Funding Worksheet at Item 32. Underused Percentage and the tentative FSEOG Allocation Reduction amount is shown at Item 33. Allocation Reduction. The percentage of underused FWS

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funds is shown in the FWS Tentative Funding Worksheet at Item 35. Underused Percentage and the tentative FWS Allocation Reduction amount is shown at Item 36. Allocation Reduction. The full explanation of all the fields in the Tentative Funding worksheet will be provided in an attachment to a forthcoming Electronic Announcement posted on the Information for Financial Aid Professionals (IFAP) Web site.

How to Request an Underuse Penalty Waiver

A school may request a waiver of the underuse penalties for one or both of the FSEOG and FWS programs:

• Access the school's submitted FISAP on the eCB Web site.

• Select the "yes" button in Part II, Section C, Field 6.

• Click on "Submit" at the bottom of the menu on the left side of the screen.

• Select "Submit Waiver" from the drop down list.

• On the "Additional Information" screen:

o Enter information that explains the circumstances that caused the underuse of the allocation.

o Specify why those circumstances were beyond the school's control.

o Specify why those circumstances are not expected to recur.

o Also indicate in this explanation that the entire underused portion of the allocation has been

returned to the Department through G5.

• After entering the information, click the "Submit" button under the justification.

• When ready to submit the request, click "Continue to Submit." A message will be displayed indicating

the request has been submitted.

What Happens Next

A panel of Department of Education staff members will review the penalty waiver requests and justifications and will notify the school in an e-mail to the Financial Aid Administrator whether the request has been granted or denied.

If the request for waiver is granted, the 2012-2013 allocation will be reduced by the unused amount, but the underuse penalty will not be applied when final awards for 2014-2015 are made.

If the request for waiver is denied, the 2012-2013 allocation will be reduced by the unused amount and the underuse penalty will be applied when final awards for 2014-2015 are made.

http://ifap.ed.gov/eannouncements/010314ReminderCB1415UnderusePenaltyWaiverDue020714.html

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HIGH SCHOOL DIPLOMA-PROGRAM INTEGRITY Q&A WEBSITE UPDATE

The Office of Postsecondary Education maintains a website containing Q&As pertaining to the Program Integrity final regulations that were published on October 29, 2010.The high school diploma portion was recently added to this website.

Questions on this topic are divided into the following categories:

• Recognized Equivalent of a High School Diploma • Checking the Validity of a High School Diploma • Documenting High School Completion Status • Foreign High School Diploma

In addition to the Q&As listed on this site, the following resources are also available for guidance related to High School Diploma:

• Program Integrity Issues; Proposed Rule (Page 34823) • Program Integrity Issues; Final Rule (Pages 66887 – 66892 and 66951) • Dear Colleague Letter GEN-12-01 • Dear Colleague Letter GEN-12-03 • Dear Colleague Letter GEN-12-09

To view the Q&As pertaining to high school diplomas, visit http://www2.ed.gov/policy/highered/reg/hearulemaking/2009/integrity-qa.html and click on the applicable topics.

CHANGES TO GUIDANCE CONCERNING THE IMPLEMENTATION OF THE MILITARY SERVICE AND POST-ACTIVE DUTY STUDENT DEFERMENT REQUEST

DCL GEN-14-02 provides revised guidance concerning the implementation of the new Military Service and Post-Active Duty Student Deferment Request form as well as a slightly modified version of the form.

The form that was originally released in DCL GEN-12-23 had been modified to allow a borrower with visual impairments to sign the form electronically with a facsimile signature. However, the signature line was not limited only to digital facsimile signatures as intended. In a future revision of the form USDE plans on including this important limitation. In the meantime, and in the interest of having the form implemented as soon as possible, the signature line as a fillable field has been dropped.

GEN-13-23 also requested that lenders and servicers more clearly explain to borrowers any electronic submission processes that may be available to them and the letter provided an example of email as a means of electronic submission. The example of email was not intended to serve as a specific endorsement of email as the

February 2014 12

preferred method of electronic submission. There are other acceptable methods of electronic submission that have been adopted by lenders and servicers.

GEN-13-23 also provided that, beginning June 1, 2014, lenders and servicers could not accept the prior version of the form. USDE has determined that, to better serve the affected borrowers, lenders and servicers may continue to accept the previous version of the form on or after July 1, 2014.

In light of this revised implementation guidance, the deadline by which lenders and servicers must begin distributing the new Military Service and Post-Active Duty Student Deferment Request form has been extended from February 28, 2014 to April 30, 2014.

Any guidance in GEN-13-23 that was not expressly modified by this Dear Colleague Letter remains in effect.

http://ifap.ed.gov/dpcletters/GEN1402.html

UPCOMING SUSPENSION AND DEACTIVATION OF INACTIVE FSA USER IDS AND PASSWORD RESET CHANGE

In early March 2014, FSA will initiate a change to the length of time an FSA User ID may be left unused, before it is suspended or deactivated, as well as a change to the password reset function. An FSA User ID and password are necessary to log in to all systems behind Federal Student Aid's Access and Identity Management System (AIMS).

Beginning Friday, March 7, 2014, any FSA User ID that has not been used within the past 90 calendar days will be suspended and any FSA User ID that has not been used within the past 365 calendar days will be deactivated. The number of days of inactivity is unique to every user and it will be immediately reset to zero whenever the user logs in to any system behind AIMS.

In addition, the number of challenge questions that a user must answer in order to reset their password will increase from one to three, and users will be prompted to establish a total of five challenge questions during the password reset process.

The systems/Web sites that are currently behind AIMS and which will be affected by these changes are the Common Origination and Disbursement (COD) Web site, eCampus-Based (eCB), eCDR Appeals, Experimental Sites, FAA Access to CPS Online, Financial Partners Datamart, National Student Loan Data System (NSLDS) Professional Access, and Student Aid Internet Gateway (SAIG) Enrollment.

Note: This suspension or deactivation of inactive FSA User IDs is separate from the annual requirement for every organization enrolled for an SAIG account to review and validate its assigned TG numbers (SAIG mailboxes) and electronic services user accounts. That process, which also may result in the deactivation of unused FSA User IDs, is known as active confirmation and was most recently completed in December 2013.

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As of March 7, 2014, if an FSA User ID has not been used to log in to a system behind AIMS for 90 calendar

days (i.e., since December 7, 2013), it will be suspended. To avoid the suspension of an FSA User ID due to a 90-day period of inactivity, a user must simply log in to any system behind AIMS before 90 days have passed. Also, as of March 7, 2014, if an FSA User ID has not been used to log in to a system behind AIMS for 365

calendar days (i.e., since March 7, 2013), it will be deactivated and access to all systems will be removed. To avoid the deactivation of an FSA User ID due to a 365-day period of inactivity, a user must log in to any system behind AIMS before 365 days have passed.

New password reset requirements are also being implemented for any system behind AIMS. Currently, if a user has forgotten their password and chooses "Forgot Password?" from the login screen, the user must provide the answer to one of the challenge questions that the user established when originally registering for their FSA User ID. After March 7, 2014, a user will need to correctly answer three challenge questions to reset their password. If the user cannot answer three challenge questions correctly after three attempts, the user's FSA User ID will be locked and the user will need to wait 30 minutes before trying again. Alternatively, the user can call the customer service center of the system they are trying to access for assistance with resetting their password. In addition, the number of challenge questions a user must establish when registering for an FSA User ID will be increased to five. Currently, users select three challenge questions as part of the FSA User ID registration process. After March 7, 2014, when a user with an existing FSA User ID successfully resets their password, the user will be prompted to select five challenge questions if the user previously established only three questions.

An Electronic Announcement released January 24, 2014 describes the changes for FSA User IDs and provides the following information is detail.

• Suspension of FSA User ID After 90 Days of Inactivity

• Deactivation of FSA User ID After 365 Days of Inactivity

• Additional Password Reset Measures

• Contact Information

http://ifap.ed.gov/eannouncements/012414AIMSFebruaryRelease.html DJA CALENDAR

Monthly DJA Webinar: Consumer Information, Record Keeping & Disclosures—Wednesday, February 5th at 11

a.m. CST

Next Month’s DJA Webinar:

Administrative Capabilities—Wednesday, March 5th at 11 a.m. CST

NOTE: There may be a difference between DJA local time and your time zone. To determine your time zone equivalent, click on this link to view a time zone map: http://www.worldtimezone.com/time-usa12.php

February 2014 14

Webinars are free so please join us for these presentations. All participants for these sessions must register by sending an email to Kim Onderek at [email protected]. After registering, you will receive the log-in information. Questions can be directed to Kim by email or by calling toll free 1-800-242-0977.

2014 DJA Monthly Webinar Schedule January 8 Cohort Default Rate February 5 Consumer Information, Record Keeping & Disclosures March 5 Administrative Capabilities April 2 Satisfactory Academic Progress May 7 Return of Title IV Funds (including LOA) June 4 General Participation Requirements July 2 Campus Crime Report August 6 Entrance and Exit Counseling September 3 Cash Management October 1 Enrollment Reporting Using NSLDS November 5 Program Integrity (Audits, Program Review) December 3 1098-T Reporting ANNUAL DJA FINANCIAL AID TRAINING Be sure to mark your calendar for the Spring DJA Financial Aid Training Session, which will be Monday, April 28, 2014. Once again, it will be held at the Harrah’s North Kansas City Casino and Hotel located at One Riverboat Drive, Kansas City, MO. The topics to be presented at this session are as follows:

� Regulation Update � Student Eligibility � 2014-2015 Free Application for Federal Student Aid (FAFSA) � 2014-2015 Verification Regulations � 150 % Loan Limitation � Consumer Information � Compliance

The session will start at 8:30 a.m. and end at 4 p.m. on the 28th. Registration is from 8 a.m. to 8:30 a.m. with

complimentary coffee and danish in the morning. This session is free to DJA clients. All other interested institutions are welcome to attend. The cost is $125 per person at the door, or $95 per person, prepaid in advance of the seminar. All attendees will need to register in advance by contacting Kim Onderek at DJA at (800) 242-0977 or via email at [email protected]

MAKE YOUR RESERVATION NOW!

You will be making reservations directly with Harrah’s by calling 800-427-7247. To receive the Group rate, you must make your reservation on or before Sunday April 6, 2014 and make sure you identify yourself as part of the DJA Financial Aid Services Group and use the Group Code S4DJA14.

WE LOOK FORWARD TO SEEING YOU IN APRIL!

February 2014 15

ASSOCIATION OF BUSINESS ADMINISTRATORS OF CHRISTIAN COLLEGES (ABACC) ANNUAL CONFERENCE

DJA will have a booth at this conference scheduled for February 12-14th, 2014 at Palms Ballroom A-D, Embassy Suites in Kissimmee, Florida. Please stop by and visit with Kristi Cole to see how DJA can be of service to you in meeting your Financial Aid processing needs. 2014 PRIVATE CAREER COLLEGES AND SCHOOLS (PCCS) FINANCIAL AID CONFERENCES The PCCS conferences are open to all postsecondary schools. DJA will be an exhibitor at these conferences and will be presenting on the following topics:

• General Participation Requirements

• Application Process, Needs Analysis & Student Eligibility Requirements

• Cash Management

• Administrative Capability

• 2014-2015 Process Changes We look forward to seeing you at each of these conferences, so please stop by to say hello! Upcoming PCCS Conference dates: Region IV – February 24 & 25, 2014 - Atlanta, Georgia Regions VIII - IX - X – March 17 & 18, 2014 - Denver, Colorado Regions I - II - III - April 14 & 15, 2014 - Philadelphia, Pennsylvania Region V - May 19 & 20, 2014 - Chicago, Illinois For more information on these workshops go to http://www.regionspccs.com/ or, contact the Region VII Chairman, Larry Prather, at: 316-682-1838 or by email at:[email protected]