Health Professions Loan Program Targeted for Elimination

COHEAO reports in the November 23 isssue of The Torch that the The White House Office of Management and Budget (OMB) has called for a recall of funds in the Health Professions and related student loan programs administered by the Department of Health and Human Services. Under the proposal, all federal assets in campus revolving funds would be recalled to the federal government by September 30, 2006. No loans would be permitted until these funds were returned, and the proposal would effectively eliminate most health professions lending in 2006. Lending could apparently resume using federal funds repaid by borrowers in the future, along with institutional contributions to the revolving funds.

The proposal was contained in a package of “rescissions” proposed by the White House on October 28 as offsets for some of the costs of Hurricane Katrina. Congressional action would be necessary to do this, but there is concern that the Labor-HHS-Education appropriations bill would include the rescissions proposal. However, legislation passed by the Senate and rejected by the House does not contain that proposal. A separate emergency bill funding hurricane and other disaster relief containing the proposed rescissions could be considered during December.

COHEAO states that it is already working with the Association of American Medical Colleges and will be mobilizing other groups to oppose this proposal. More information and an action alert is being prepared.

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Senate and House to Reconcile Differences over Reauthorization and Deficit Reduction Reconciliation Act

Although the outlook for continuation of the Perkins program seems positive, the Senate and Congress still have to reconcile differences in the House’s and Senate’s versions of the Deficit Reconcilation Act before the Perkins program can be considered safe from elimination.

On November 3, COHEAO reported that “the Senate voted to reauthorize the Perkins Loan Program under the Higher Education Act (HEA) of 1965. The reauthorization, as part of broader HEA reauthorization legislation, was contained in the Senate’s budget reconciliation bill, the Deficit Reduction Omnibus Reconciliation Act of 2005 (S.1932). The bill, which makes over $36 billion in cuts to entitlement programs, passed the Senate on a vote of 52–47. The no votes were a result of controversial language involving student loans, Medicare, Artic oil drilling and several other issues. ”

More recently, COHEAO reported that the “House of Representatives passed the Deficit Reduction Act of 2005 (H.R. 4241) on a vote of 217-215 on November 18. The legislation only includes changes to the Higher Education Act that impact federal spending during the next five years, mainly changes to the FFEL and Direct Loan programs. Most of the savings are derived by reducing what FFELP lenders make and imposing new fees on lenders. It does not include the broad Higher Education Act (HEA) reauthorization legislation that was approved by the Education and Workforce Committee as H.R. 609.

The Perkins Loan Program is not mentioned except for a provision expanding loan cancellations for military personnel. Because the Senate has already passed its HEA reauthorization bill as part of its budget reconciliation, S. 1932, Higher Education Act reauthorization may be considered as part of a House-Senate conference to resolve differences between the two versions of the Deficit Reduction Act. However, it is not clear if that will be the case or if the rest of the HEA reauthorization, including reauthorization of the Perkins Loan Program, will be done separately. Conference negotiations on the legislation are expected to commence in the near future, but there is no exact timetable on when a conference agreement will occur.”

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Dealing with Excess Perkins Cash: Save Your Funds for the Future

COHEAO recently published this information in November 23, 2005 issue of The Torch. Due to the importance of this news, we are publishing it verbatim.

“The massive wave of consolidation loans this year has left many institutions with excess cash in their Perkins Loan accounts – and an inability to immediately lend the funds to needy students. Given that there is rarely enough aid to go around and that there is unlikely to be a Federal Capital Contribution this year, it would be tragic if millions of Perkins Loan dollars were sent back to Washington, leaving campuses shorter than ever of funds for students in future years. Once the money is returned, it’s lost for financial aid in the future. It is possible, and not that difficult, to hold your Perkins funds for use in your next award or fiscal year, but certain actions have to be taken to avoid having the Department of Education require that the excess cash be sent to them. If an institution has excess liquid capital – projected collections, plus federal capital contributions, plus institutional contributions that significantly exceed projected expenditures –then the institution is required to send the excess to the Department. Many institutions are caught in a bind because the unexpected influx of funds due to consolidation exceeds the expenditure level assigned by the Department, an expenditure level based on historical collections. However, the institution can write the Department and request that their level of expenditure be increased.

It is vital that institutions do this, explaining why they have excess capital and how they plan to make use of the capital by making loans to eligible borrowers in the future.

If you should receive a letter from the Department asking that your excess funds be returned, you should send a letter to the Department stating that these funds were “too late to lend” in that fiscal year and that you will commit the funds to borrowers beginning July 1 (if you lend Perkins in the summer months for summer school) or you will begin to award these excess funds to needy and eligible borrowers in the coming fiscal year.

Loan managers should address the correspondence to: the U.S. Department of Education, Student Financial Assistance Programs, P.O. Box 952023, St. Louis, MO 63195-2023.”

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ED Extends Automatic Forbearance for Hurricanes Katrina and Rita

The Department of Education (ED) has extended the automatic forbearance from December 31, 2005 until February 28, 2006 for FFEL, Direct, and Perkins student loan borrowers who live in an area that has been designated by FEMA for disaster assistance due to Hurricanes Katrina and Rita.

As we announced in the September issue of the Update, Campus Partners proactively processed an administrative forbearance through December 31, 2005 for your Perkins, HPSL, NSL, PCL, LDS, and institutional loan borrowers based on the population of borrowers listed on the FEMA Web site. If you would like this forbearance extended for any or all of your borrowers in the affected areas, please contact your customer service representative. Otherwise, we will only process the extension for borrowers on a per request basis.

You can read about the extension for both Hurricane Katrina (Announcement #7) and Hurricane Rita (Announcement #4) on the Department’s Web site at www.ifap.ed.gov. A flashing red link to “Hurricane Information” appears on the right-hand side of the IFAP Web site. The respective announcements are linked to either Hurricane Katrina or Hurricane Rita. You will also be able to access Hurricane Katrina Electronic Announcement #8: Reallocation of Campus-Based Funds and Hurricane Rita Electronic Announcement #5: Reallocation of Campus-Based Funds through the IFAP Web site.

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Hurricane Wilma Forbearance Processing

Information regarding Hurricane Wilma is also available through the IFAP Web site. In February 2004, ED published general guidance in Dear Colleague Letter GEN-04-04 that applies to any declared disaster. As this article goes to publication, borrowers affected by Hurricane Wilma are eligible for forbearance based on this guidance. Campus Partners has processed a three-month Type M forbearance for your Perkins and institutional borrowers located in the FEMA-designed areas in Florida. We processed a three-month Type H forbearance for HPSL, NSL, PCL, and LDS borrowers. In all cases, a history comment concerning the forbearance will be entered and notification will be sent to affected borrowers. The following link will provide you with the text in Dear Colleague Letter GEN-04-04: http://www.ifap.ed.gov/dpcletters/GEN0404.html.

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Notice of Waiver of Title IV Grant Repayment

Using authority granted by the Pell Grant Hurricane and Disaster Relief Act and the Student Grant Hurricane and Disaster Relief Act, the Assistant Secretary for Postsecondary Education, Sally Stroup, exercised her authority to waive a student’s Title IV grant overpayment otherwise due under the Return of Title IV Aid requirements if the student withdrew because of a disaster under conditions specified in Dear Colleague Letter GEN-05-17. Please view this Notice of Waiver at http://ifap.ed.gov/dpcletters/GEN0517.html.

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Natural Disaster Student Aid Fairness Act - Federal Perkins, Federal Work-study, and Federal Supplemental Educational Opportunity Grant Programs

On November 7, 2005, ED published a Federal Register Notice that provides information on the campus-based funds reallocation process for institutions that have enrolled students who have been affected by Hurricanes Katrina and Rita. The Notice provides background information on the reallocation process, definitions of terms, and the information that an institution must submit in its application for reallocated campus-based funds. Institutions are urged to review this Federal Register Notice at http://ifap.ed.gov/fregisters/FR11072005.html.

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FISAP Corrections and Perkins Cash on Hand Update Due Soon

All corrections to FISAP data and resolution of edits must be submitted to the Department of Education by Thursday, December 15, 2005. This information is published in Dear Colleague Letter CB-05-12 as well as noted on page 4 of the instructions for the 2006-2007 FISAP and is in a Q & A format. December 15 is also the deadline by which a school that participates in the Perkins Loan Program must update its Perkins cash on hand as of October 31, 2005. Please note that schools affected by Hurricane Katrina or Hurricane Rita that will not be able to meet this deadline should contact the Campus-Based Call Center at ED.

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HEROES Expiration Date Extended for Two Years

ED has extended the expiration date in the HEROES Act of 2003 until September 30, 2007 for the waivers or modifications of statutory or regulatory provisions that were appropriate to assist eligible individuals who are applicants and recipients of student financial assistance under Title IV of the Higher Education Act. The Federal Register Notice extending the HEROES waivers can be viewed at http://www.ifap.ed.gov/fregisters/FR10202005.html.

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Child or Family Service Loan Cancellation Benefit

Dear Partner Letter Gen-05-15 reaffirms and clarifies long-standing policy regarding the eligibility requirements that apply to the child or family service loan cancellation benefit provided in the Federal Perkins Loan Program. The letter is available at http://www.ifap.ed.gov/dpcletters/GEN0515.html.

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Responses to Recent, Recurring Federal Student Aid Questions

The Department of Education has issued Dear Colleague Letter GEN-05-16 in response to a number of issues that have been raised recently that needed further clarification by ED. Answers to the questions addressed in this letter are based on pre-existing policy unless noted otherwise. Some answers provide clarification and more consistent treatment of differing, but closely related issues. In cases when new or changed guidance has been set out, program reviews or audits for prior periods will take into consideration whether the institution was following prior guidance or was using other reasonable interpretations of the regulations.

The following topics are addressed:

	The requirement for a signed promissory note for loan funds to be counted as “aid that could have been disbursed,” or to be disbursed as a late disbursement,
	The use of Web sites to provide required notifications and disclosures directly to students,
	Additional unsubsidized Stafford loan amounts for an otherwise eligible child of a parent who is not a U.S. citizen or permanent resident,
	Bankruptcy and eligibility for PLUS and additional unsubsidized loan amounts,FAFSA questions and same-sex marriage,
	Asset valuation of a rental unit within a principal place of residence in need analysis,
	The definition of a veteran,
	The treatment of combat pay,
	The use of stored-value cards and other alternative methods of managing Title IV funds,
	Debit cards and third-party servicers; and
	The Reserve Educational Assistance Program (REAP or Chapter 1607).

To review this DCL, go to http://www.ifap.ed.gov/dpcletters/GEN0516.html.

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Orange Book Available for Federal Perkins Loan Program

The Orange Book for 2003-2004 is now available by clicking here. This listing includes the Federal Perkins Loan Program Status of Default as of June 30, 2004 for schools that participated in the Perkins Loan program during the 2003-2004 Award Year and provides a cohort default rate for each school. This report is based on FISAP data submitted by schools.

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Posting of the Blue Book on IFAP

ED has posted The Blue Book: Accounting, Recordkeeping, and Reporting by Postsecondary Educational Institutions Participating in the Federal Student Aid Programs. It addresses the regulations and procedures schools must follow in requesting, maintaining, disbursing, and otherwise managing Title IV program funds. To review The Blue Book, go to www.ifap.ed.gov and look for The Blue Book under the heading “Publications.”

 

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2006-2007 FAFSA on the Web Worksheet in English and Spanish

FSA posted the redesigned and improved 2006-2007 FAFSA on the Web Worksheet in pdf format. It is available in both English and Spanish, and there is a black-and-white English version for those without color printers. Schools are encouraged to print and copy these worksheets for their students. For additional information, go to: http://www.ifap.ed.gov/eannouncements/1025fotwscreenshot0607.html.

 

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Product Development Update

Here is the latest news about recent product development efforts and enhancements to expect over the next few months. Please refer to the September issue of the Campus Partners Update for our overall product development schedule, which lists future enhancements for the next 12 months.

 

 

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Speed up the Entrance Interview Counseling Process

Looking for a way to expedite the entrance interview process? If you find getting your borrowers to sign their master promissory note, complete entrance counseling, and obtain copies of their Total Loan Indebtedness and Truth-in-Lending Disclosure statements takes too much time, consider using iPROMise, our electronic promissory note with e-signature for your next award period. When you sign up for iPROMise, your students can complete all necessary paperwork from any computer, and you can monitor their completion through special reports. What could be easier? For more information, contact your Customer Service Representative today!

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Campus Partners Joins Forces with Pearson Government Solutions

Responding to several inquiries from current customers and prospective customers about 1098T Tax Reporting Services and our ability to support this service, Campus Partners decided that it was time to explore another partnership. When we identify a need in the market, we always have to make a decision – is the solution to build, buy, or partner, and depending upon the issues involved, we make a decision based upon our core competencies, the cost of developing a solution, and the offerings of other providers in the market.

In the case of 1098T tax reporting, we determined that there was already a world class solution in the market, and that Pearson Government Solutions offered an outstanding, state-of-the-art product. When we approached them about a possible joint marketing agreement, through which we could offer our customers their solution and service, they were most receptive to the idea. After working through the details of the agreement, we were proud to announce this strategic marketing relationship on November 2, 2005.

As you probably know, Pearson Government Solutions has developed a number of powerful solutions in higher education, and they are the company that developed the Department of Education’s FAFSA on the WEB process, and they manage the FSA PIN process for all federal student aid recipients. Campus Partners uses their STAN authentication service for all of our e-sign processes, for iPROMise and E-Exit. We’re excited about extending our relationship with Pearson and know that our customers will be interested in learning more about their 1098T service.

For more information about this solution, please call Brad Resler, our National Sales Manager, at 800-458-4492, extension 2062.

Attachment: Campus Partners-Pearson Government Solutions News Release

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Regulatory Wisdom from Sharon Cameron

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Gaye Taylor Retires

Gaye Taylor, a Servicing Support Representative for our company, retired on November 30, 2005 after 27 years of service. Although Gaye ended her career at Campus Partners in the Servicing Support department, where she helped oversee the mailroom, Gaye is best known to customers for her role as a Customer Service Representative. She spent most of her career in customer service and has many fond memories of working with customers from coast to coast. “I felt I had friends all over the country because many shared their hopes and dreams with me,” Gaye said in an interview before she retired. Although she had contact with most of our customers over the years, she particularly remembers her customers at the University of Nebraska-Lincoln, the University of Maine system, the University of Bridgeport, Wesleyan University, the University of South Carolina, the University of Virginia, Virginia Commonwealth University, and Virginia Union University.

Gaye thinks our company has a “really bright future” thanks to the dedication and longevity of our staff and the willingness of our owners to invest in the company and grow our business. She sees this as a winning combination that guarantees the continued success of our company.

In retirement, Gaye plans to “live life to the fullest.” She already has a good start at staying active because she currently has two teenage grandchildren living with her, as well as one of their friends. In addition to spending more time with her children and grandchildren, she plans to stay busy with church and volunteer work and looks forward to traveling. She wants to fly to San Francisco and then drive up the coast to the Pacific Northwest and also plans to visit New York City.

Gaye has left her mark on the company because of her commitment to excellence and willingness to go the extra mile for customers and her fellow employees. Please join us in wishing Gaye a happy retirement.

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STAN Authentication Outage

Pearson Government Solutions’ Data Center in Iowa City has notified Campus Partners of a planned hardware upgrade associated with their STAN PIN Authentication Web site. This upgrade is scheduled to occur on Sunday, December 11, 2005. The equipment changeover and subsequent testing will mean an extended downtime for STAN production and test sites. The maintenance will begin at midnight and run throughout Sunday morning until noon, CST. During that period of time, STAN will not be available to provide third-party authentication services for your borrowers that would like to complete their E-Exit or MPN via iPROMise using electronic signature.

Campus Partners Web sites will be operational during that period of time and will be able to support all activity other than electronic signatures. As soon as the STAN site is brought back online, the electronic signature functionality will immediately become available to your borrowers.

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Customer Insight “Angels watching over me!!” That’s the way I feel about Campus Partners after approximately 9 years of blood, sweat and tears. Every individual member of Campus Partners’ team can very easily be called “Angels” due to their professionalism, knowledge, courtesy, care, and concern. When I took my current position at UNC-Charlotte I had no idea of all the details and/or federal guidelines or requirements required of someone in this position. Cleaning/clearing files, problems, and unanswered questions from 20 years of backlog were so overwhelming at first that I started to retire early – many times – just to get away from the mess. With numerous continuous hours of help and encouragement from Sharon Cameron and Debra Adams of Campus Partners, I managed to struggle through the task at hand. Over the past years, because of the help from Campus Partners, I have become more knowledgeable in rules and regulations and can maintain the day to day duties of my position. Campus Partners’ recent up grade of the computer system, expanded availabilities of reports, restructured areas such as customer service, technical support, and their constantly searching for improvements has given me a great sense of security and peace of mind. Just knowing that Campus Partners has checked out every detail and that they are always willing to “be there with me” for support through any/all processes has made my job easier. Campus Partners treats all their clients with the same utmost respect whether the office is large or small. I honestly cannot imagine having to come to work without Campus Partners as my “partner” to work with each day. Diane Aldridge UNC-Charlotte

2005 Teleconference Training Schedule

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