Campus Partners Update Newsletter
December 1, 2008
Holiday Closing: Thanksgiving, Nov. 27-28, Christmas, Dec. 24-25, New Year's Day, Jan. 1
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Federal Perkins Master Promissory Note Addendum To Be Issued
Guidance from the Department of Education indicates that schools will be required to notify borrowers that the terms and conditions of their promissory note have changed. The Higher Education Opportunity Act (HEOA) made several changes to the benefits available to Federal Perkins borrowers including new cancellation categories. Borrowers are eligible for these new cancellation benefits, regardless of note date, as long as the borrower’s service was performed on or after August 14, 2008. The number of consecutive on-time monthly payments for rehabilitation was also changed from 12 to 9 payments.
In an email from Brian Smith at ED, Brian also said that ED will publish an Addendum to the Federal Perkins MPN, and schools will be required to provide borrowers with a copy of this Addendum. Smith stated: “In the current environment, where a borrower can take out Perkins Loans for up to 10 years using an MPN, I think it’s even more important that borrower’s receive the Addendum.”
Once the Addendum is published, Campus Partners will offer a process to notify your borrowers that their benefits have changed. This process will be permanently recorded in the borrower’s history for audit purposes. Stay tuned to future editions of the Update for additional information.
Perkins Fact Sheets Updated and Posted to the Web
Campus Partners has now updated the Federal Perkins Fact Sheet (Form 4884) that many customers use during exit interviews. These updates include the changes discussed in the previous article, including the new cancellation benefits that are available to your borrowers. We have also added a new form to our web site called Expanded Cancellation Benefits (Form 9171) that lists the new cancellation benefits. You may view these new forms at campuspartners.com, and borrowers can view and download these forms from mycampusloan.com. The Fact Sheet is available at http://www.campuspartners.com/documents/4884FactSheet.pdf and the Expanded Cancellation Benefits form is available at http://www.campuspartners.com/documents/P9171.pdf.
More Guidance Regarding “Reversal” of Mandatory Assignments
ED recently shared some additional guidance on the “reversal” of mandatory assignments. This information was posted to the LMS listserve on October 24, 2008 by Brian Smith at ED:
Under Section 463 of the HEOA, the Department continues to have the option to allow an institution to refer loans to the Department for collection. If the Department accepts a referral, the Department is required to return any collections on that loan to the school, less 30 percent of the amounts collected to cover the Department’s collection costs. The HEOA does not require the Department to allow referrals in the Perkins Loan Program. However, if the Department chooses to allow referrals, the Department must repay the amounts collected (less the 30 percent) every six months. The Department has no plans to institute a referral program in the Perkins Loan Program at this time.
With regard to mandatory assignment, Section 463 of the HEAO removes the Department’s authority to require mandatory assignment of Perkins Loans through amendments to an institution’s Program Participation Agreement. The Department continues to have the authority to require mandatory assignment if an institution has knowingly failed to maintain an acceptable collection record with regard to the loan or chooses to stop servicing and collecting its Perkins Loans. This statutory change nullifies the mandatory assignment regulations published on November 1, 2007.
Schools may continue to assign loans to the Department through the voluntary assignment process, but, as has always been the case, when a school assigns a loan under the voluntary assignment process the school gives up all interest in the loan and is not reimbursed for any amounts the Department may collect on that loan.
COHEAO members have already had discussions with the Department and will be seeking a technical correction to clarify congressional intent, that funds be reimbursed from voluntarily assigned loans and/or that ED be required to do a referral program. We will keep you posted as we have additional information on this topic.
Regulatory Wisdom from Sharon Cameron Question: Is it true that we should no longer use the AMA’s health professions list in determining eligibility for medical technician cancellations? Answer: Based on guidance from the Department of Education, ED has advised us that this list has been expanded to include professions that do not qualify as allied health professions. We asked the Department if there was another list we could use. From ED:
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FISAP Edit Corrections and Perkins Cash on Hand – Due December 15
ED has published a Question and Answer guide as part of Dear Colleague Letter CB-08-12. All corrections to FISAP data and correction of edit errors must be submitted to the Department by Monday, December 15, 2008. Schools must also update its Perkins cash on hand as of October 31. The questions and answers included in this DCL provide information about the process for submitting FISAP edit corrections and explanations by the December 15 deadline. You may view the Q & A document at http://www.ifap.ed.gov/dpcletters/1114CB0812.html.
Comment Request for Total and Permanent Disability Application
The Total and Permanent Disability Discharge Application allows an individual who is totally and permanently disabled (in accordance with the U.S. Department of Education’s regulations) to apply for a discharge of his or her student loans made under the FFEL, Perkins Loan, or Direct Loan program loans, or TEACH Grant service obligation.
The currently approved TPD Discharge Application is amended to (1) incorporate changes to the terms and conditions of total and permanent disability discharges that were made by final regulations published November 1, 2007, and (2) add provisions for the discharge of a TEACH Grant recipient’s service obligation. Interested persons are invited to submit comments on or before December 8, 2008.
You may view this form at http://edicsweb.ed.gov. Select “Browse Pending Collections” and click on link number 3687.
Federal School Code List of Participating Schools for 2009-2010
In an electronic announcement from ED, Federal Student Aid has posted the initial 2009-10 version of the Federal School Code (FSC) List of Participating Schools. The Federal School Code List contains the unique codes assigned by the Department of Education for schools participating in the Title IV federal student aid programs. Students enter these codes on the FAFSA to indicate which postsecondary schools will receive the processed application results. To read this electronic announcement, go to: http://www.ifap.ed.gov/eannouncements/1103FederalSchoolCodeList.html.
Credit Bureau Reporting – Metro 2 Format
In last month’s Update, we published an article introducing the Credit Bureau Reporting Screen (CRBR). This article explained some important changes we made to System III and to the credit bureau file to assist us in reporting information to all credit bureaus in Metro 2 format.
There are several advantages to reporting in Metro 2 format. Here are a few:
- The Metro 2 format is accepted by all consumer reporting agencies and enables the reporting of accurate, complete and timely credit information.
- The Payment History Profile displays up to 24 months of credit history which makes it possible for the credit grantor to supply automated updates/corrections for the file and reduces consumer disputes.
- The format meets all requirements of the Fair Credit Billing Act (FCBA), the Fair Credit Reporting Act (FCRA), the Equal Credit Opportunity Act (ECOA) and all applicable state laws.
- It allows complete identification information to be reported for each consumer (including co-debtor, co-signer, etc.) each month which improves the ability of the consumer reporting systems to match to the correct consumer.
Please remember: Do not use removing negative credit history as a “bargaining chip” in collecting defaulted loans!
Campus Partners is obligated to report accurate information to all credit bureaus for customers that have contracted for this service (section 623 of the Fair Credit Reporting Act). Once information is reported accurately, you should not delete negative credit history in exchange for payment of a debt. This action compromises the integrity of the data. (Copyright 2007 © Consumer Data Industry Association, Inc, below):
- Consumer credit history information will be reported in a factual, precise and objective manner.
- Only inaccurately reported accounts should be deleted. Paid derogatory accounts, such as collections or charge offs, should be reported as paid; they should not be deleted.
- Requests by consumers for reverification of challenged information must be processed promptly.
- Unless an error is discovered, the consumer will be advised that the factual credit history will continue to be reported.
Campus Partners is Going Green
Campus Partners is among the growing number of companies, institutions, and individuals that are going green to save natural resources. Our company stopped sending paper reports and newsletters in 2003, and increasingly uses Web conferences to supplement traditional training offerings, thus reducing our carbon footprint.
In recent months, we have provided customers with the opportunity to access documents such as deferment, cancellation, and forbearance forms via System 3i, our interactive Web site for student loan administrators. As the result of availability of imaged documents, we will discontinue sending processed work to customers effective December 1, 2008. Details of our plan follow. A Question and Answer Guide is also attached.
- Effective December 1, 2008, Campus Partners will stop sending processed work to customers.
- This includes processed deferment and cancellation forms. Imaged copies of these processed forms are available via System 3i. We have also enhanced our Deferment and Cancellation Detail report to include forms that have been returned or denied. Please see related article describing the enhanced report.
- We will also stop sending the following documents to customers:
- Copy of Acceleration Notices (A special Acceleration Notice Report will be provided through eXpressReports each month). Since this report will not be available until December 22, we will continue to mail Acceleration Notices to your institution until this date.
- Grace Statements returned for Bad Address
- We will continue to send Returned Check Advices and Manual Debit/Credit Bank Account Adjustments to customers.
- Sharon Cameron, Audit and Compliance Specialist for Campus Partners, has reviewed Federal Regulations and has determined that imaged documents that can be reproduced are suitable substitutes for the original documents.
- We have made it easy for customers to access documents via System 3i. Please see the attached Question and Answer Guide for more information.
Attachment: Going Green Question and Answer Guide
Please see “How to Retrieve Imaged Documents on System 3i” by clicking here.
If you any have questions, please contact your Customer Service Representative.
Deferment and Cancellation Detail Report Enhanced
Campus Partners has enhanced the Deferment and Cancellation Detail Report to include the status of entitlement forms that have been returned or denied, in addition to entitlements that have been processed and approved during the month.
This enhancement was made in support of the “going green campaign.” This report originally showed the deferments and cancellations that had been processed on loans for that given month. The report has been expanded to include the deferments and cancellations that were received, but subsequently returned, for additional information or those which were denied for not meeting eligibility criteria. So now it will show all entitlements that have been “processed” in a given month.
This new level of detail will be helpful in tracking forms that have be processed and will aid in communicating with your borrowers. This report will provide you with the details you need to identify and access the actual return or denied form on System 3i.
Long-term Customer Anniversaries
We are celebrating partnerships with several long-term customers this quarter. Included in this group are Limestone College and the University of North Carolina at Wilmington, which have been customers for 40 years! Special recognition also goes to Brandeis University and Lincoln University (PA), both of which have been customers for 35 years. We also want to thank the Assemblies of God Theological Seminary for entrusting us with their loan portfolios for 30 years.
Names of all customers attaining other milestone anniversaries with us during this quarter are attached. Customers reaching anniversaries with us during the first quarter of 2009 will be listed in the March Update.
Attachment:Long-Term Customer Anniversaries
Student Loans 101 and 202 Schedule for 2009-Please Note Changed Dates and Times In Red
We are pleased to announce our 2009 Student Loan Workshop schedule, which is published below. This year we are offering two sessions of Student Loans 101 and one session of Student Loans 202. Student Loans 101 is perfect for new student loan administrators or administrators who are new to Campus Partners, while Student Loans 202 also offers a unique opportunity for advanced training. Our modernized training facility offers 20 computer workstations so you can get the most out of our personalized hands-on training.
Student Loans 101: March 5-6
Student Loans 202: April 2-3
Student Loans 101: July 9-10
Time: Day One 8:30 AM- 4:00 PM Day Two 8:30 AM - 1:00 PM
To register, fax a completed registration form to Debra Pitts at 336-607-2025.
Attachment:Student Loan 101 and 202 Flyer and Registration Form for 2009
To register, fax a completed registration form to Debra Pitts at 336-607-2025.
Study Hall is in Session!
Our Study Hall for 2009 schedule appears below. Be sure to join us on December 11 at 2:00 Eastern for our last Web conference of the year, entitled All about Collections.
To register for one or more events, please contact Debra Pitts at dpitts@campuspartners.com.
2009 Study Hall Schedule
| Topic | Date |
|---|---|
Retention of Records: What's Required? |
Thursday, February 12 2:00 to 3:30 Eastern |
The Borrower Experience |
Thursday, May 14 2:00 to 3:30 Eastern |
FISCOP Reporting |
Thursday, June 11 2:00 to 3:30 Eastern |
Cohort: What is it and How Do I Manage it? |
Thursday, August 13 2:00 to 3:30 Eastern |
Where do I start? A Month to Month Guide |
Thursday, September 10 2:00 to 3:30 Eastern |
Open |
Thursday, October 8 2:00 to 3:30 Eastern |
Regulations Update |
Thursday, November 12 2:00 to 3:30 Eastern |
| Tips for Managing Delinquencies |
Thursday, December 10 2:00 to 3:30 Eastern |
Campus Partners staff will attend the following conferences in 2009.
COHEAO will present its Annual Conference on January 24-28 in Arlington, VA. More information, visit www.coheao.org.
NACUBO will hold its 2009 Student Financial Services Conference on March 8-10 in Savannah, GA. For more information, visit http://www.nacubo.org/x10614.xml.
More conference information will be published soon.
Cutoff dates for November, December, January, and February are presented below:
Transaction
|
Nov. 2008 |
Dec. 2008 |
Jan. 2009 |
Feb. 2009 |
|---|---|---|---|---|
Last day to receive collection payments |
11/21 |
12/26 |
1/27 |
2/24 |
Last day to receive regular payments |
11/24 |
12/29 |
1/28 |
2/25 |
Last day for online payments |
11/26 |
1/2 |
1/30 |
2/27 |
Date final post begins |
11/28 |
1/2 |
1/30 |
2/27 |
Report date used for final post |
11/30 |
12/31 |
1/31 |
2/28 |
Last day deposits created for deposit to bank account |
11/26 |
12/31 |
1/30 |
2/27 |
2009 Cutoff Dates
Month |
Last day to receive collection payments |
Last day to receive regular payments |
Last day for on-line payments |
Date final post begins |
Report date used for final post |
Last day deposits created for deposit to bank account |
December 2008 |
12/26/2008 |
12/29/2008 |
1/2/2009 |
1/2/2009 |
12/31/2008 |
12/31/2008 |
January 2009 |
01/27/2009 |
01/28/2009 |
01/30/2009 |
01/30/2009 |
01/31/2009 |
01/30/2009 |
February 2009 |
02/24/2009 |
02/25/2009 |
02/27/2009 |
02/27/2009 |
02/28/2009 |
02/27/2009 |
March 2009 |
03/24/2009 |
03/25/2009 |
03/27/2009 |
03/27/2009 |
03/31/2009 |
03/27/2009 |
April 2009 |
04/27/2009 |
04/28/2009 |
05/01/2009 |
05/01/2009 |
04/30/2009 |
04/30/2009 |
May 2009 |
05/26/2009 |
05/27/2009 |
05/29/2009 |
05/29/2009 |
05/31/2009 |
05/29/2009 |
June 2009 |
06/23/2009 |
06/24/2009 |
06/26/2009 |
06/26/2009 |
06/30/2009 |
06/26/2009 |
July 2009 |
07/28/2009 |
07/29/2009 |
07/31/2009 |
07/31/2009 |
07/31/2009 |
07/31/2009 |
August 2009 |
08/25/2009 |
08/26/2009 |
08/28/2009 |
08/28/2009 |
08/31/2009 |
08/28/2009 |
September 2009 |
09/25/2009 |
09/28/2009 |
10/2/2009 |
10/2/2009 |
09/30/2009 |
09/30/2009 |
October 2009 |
10/27/2009 |
10/28/2009 |
10/30/2009 |
10/30/2009 |
10/31/2009 |
10/30/2009 |
November 2009 |
11/20/2009 |
11/23/2009 |
11/25/2009 |
11/27/2009 |
11/30/2009 |
11/25/2009 |
December 2009 |
12/28/2009 |
12/29/2009 |
12/31/2009 |
12/31/2009 |
12/31/2009 |
12/31/2009 |
January 2010 |
01/26/2010 |
01/27/2010 |
01/29/2009 |
01/29/2009 |
01/31/2009 |
01/29/2009 |
