For training/discussion purposes only April 2014 150% Direct - - PDF document
For training/discussion purposes only April 2014 150% Direct Subsidized Loan Limit - How it Affects Your School and Your Students Ohio PACE Spring Conference April 2014 Agenda Regulations, definitions and calculations School
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− Has no balance on any FFEL or Direct Loan on July 1,
− Receives first Direct Loan (any type) on or after July 1,
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− The student may not receive any additional subsidized
− Borrower still eligible for unsubsidized loans
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− Effective upon publication − Revised 34 CFR 685.200, 685.202 and 685.304
− Final regulations effective March 18, 2014
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− Varies by program − Multiply published length of program by 1.5 − Measured in academic years or portions − ED will calculate using school-reported information
− Only admit students who have completed associate degree
− Only admit students who have completed associate degree
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− Calculated on loan-by-loan basis − With one exception, not related to amount of loan − Measured in academic years and rounded up or down to the
− Includes only periods when Direct Subsidized Loan was
− COD will calculate based on school-provided information
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− Loan period – Beginning and ending dates of period covered
− Academic year – Beginning and ending dates of the academic
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a.
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Begin Date End Date Number of Days Loan Period August 27, 2013 January 13, 2014 140 Academic Year August 27, 2013 February 24, 2014 182
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− Student transfers to a 4-year BA program
− Student enrolls in a 2-year AA program
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− Receives 2.5 years of subsidized loans − Has 0.5 years remaining eligibility in that program
− Minimum permissible loan period is program length of one year − Student cannot borrow because remaining eligibility period is
− No loss of subsidy because borrower has remaining eligibility –
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Minimum loan period length in a clock-hour program is lesser of length of program or academic year. School cannot disburse a Direct Subsidized Loan to this student.
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− Student did not complete program
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− Not retroactive to date of disbursement, or date of loss of
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− Without interest benefits
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− Receives 4 years of Direct Subsidized Loans − Has 2 years of remaining eligibility in this program − Borrower does not complete program
− Borrower has no remaining eligibility − Borrower loses interest subsidy because of enrollment in
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− Receives 4 years of Direct Subsidized Loans and
− Has 2 years of remaining eligibility in this program
− Borrower has no remaining subsidized eligibility − Borrower does not lose interest subsidy because she/he
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− Correctly report to COD the academic year and loan period
− Update dates as necessary − Applies to all borrowers with loans with first disbursement
− DCL GEN-13-13 posted May 10, 2013 − 150% Loan Limit Webinar #1 recording posted to IFAP
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− Example – program is 700 clock hours offered over 32 weeks
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Student’s Enrollment Pattern Anticipated Actual Length of Program Length of Program School’s Reporting to COD Initial Updated Begin Date End Date Begin Date End Date Loan Period July 29, 2013 January 31, 2014 No Update No Update Academic Year July 29, 2013 January 31, 2014 No Update No Update
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Student’s Enrollment Pattern Anticipated Actual Length of Program Withdrew After First Payment Period School’s Reporting to COD Initial Updated Begin Date End Date Begin Date End Date Loan Period July 29, 2013 January 31, 2014 July 29, 2013 October 25, 2013 Academic Year July 29, 2013 January 31, 2014 No Update No Update Example 11: Borrower Enrolled in Clock-Hour Program That is One Academic Year in Length, Withdraws During Payment Period and All Funds Returned for Payment Period
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Student’s Enrollment Pattern Anticipated Actual Length of Program Withdrew From Second Payment Period School’s Reporting to COD Initial Updated Begin Date End Date Begin Date End Date Loan Period July 29, 2013 January 31, 2014 July 29, 2013 October 25, 2013 Academic Year July 29, 2013 January 31, 2014 No Update No Update
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Student’s Enrollment Pattern Anticipated Actual Length of Program Length of Program School’s Reporting to COD Initial Updated Begin Date End Date Begin Date End Date Loan Period July 1, 2013 September 20, 2013 No Update No Update Academic Year July 1, 2013 December 27, 2013 No Update No Update
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Student’s Enrollment Pattern Anticipated Actual Length of Program, Timely Progression Length of Program, Untimely Progression School’s Reporting to COD Initial Updated Begin Date End Date Begin Date End Date Loan Period July 1, 2013 September 20, 2013 July 1, 2013 October 4, 2013 Academic Year July 1, 2013 December 27, 2013 July 1, 2013 January 10, 2014
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School determines eligibility School using COD for 2013- 2014 Receiving second loan for 2013-2014 In short- term programs First-time borrowers
− Borrower is a new borrower on or after July 1, 2013 − Borrower previously received a Direct Subsidized Loan first
− Borrower is enrolled a program shorter than 1.5 years, 10
− The new loan will be originated using 2013-14 COD system
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Existing
New for 2014-2015
− Student’s Enrollment Level (FT, TQT, HT) − Classification of Instructional Program Code (CIP) − Credential Level (Certificate, Diploma, Degree) − Length of Program – years, months, weeks − Special Program Flag – Teacher Certification or Preparatory
− Payment Period Begin Dates – prorate subsidized usage when
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− Retroactive reporting of all programs prior to July 1, 2014
− Programs in which a borrower is enrolled on July 1, 2014
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Campus-Level
Certifying 8-digit OPEID “Move To” 8-digit OPEID Student Name, SSN, and DOB Student Physical Address Student Phone Number Certification Date Enrollment Status Enrollment Status Effective Date Anticipated Completion Date Term Begin and End Dates
Program-Level (new)
Classification of Instructional Program (CIP) Code Program Credential Level Published Program Length Publish Program Length Measurement (Years, Months, Weeks) Weeks Title IV Academic Year Special Program Indicator Program Enrollment Status Program Enrollment Status Effective Date Student’s Program Begin Date
E-mail (new)
Student E-mail Address
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− CPS – Codes and comments on SARs and ISIRs − NSLDS – New borrower − NSLDS – Subsidized Usage Period − NSLDS – Loss of subsidy indicator − COD – Reports to schools − COD – Editing and enforcement − Direct Loan Servicers – Loss of subsidy benefits
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− Calculate Subsidized Usage Periods, including the new
− Inform school of borrower’s Maximum Eligibility,
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− Identifies Direct Subsidized Loan where 150% Subsidized
− NSLDS treats similar to existing D1 loan type − Included in calculation of annual and maximum aggregates
− NSLDS will convert D0 to D1 when transferring loan data
− Some D1 loans on CPS outputs during this period will
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− Update to include Subsidized Usage Limit Applies (SULA)
− D0 loan type added to report output as an option for the
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− If yes, NSLDS will notify federal loan servicer that borrower
− Federal loan servicer will notify borrower of interest
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− GEN-13-13, May 10, 2013
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− Evaluation form is specific to Byron Scott
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