Campus Partners Update Newsletter
May 20, 2010
Holiday Closing: Monday, May 31-- Memorial Day |
|
Monday, July 5-- Independence Day (observed) |
|
|
|
|
|
Military Service Deferment/Post-Active Duty Student Deferment Form –Comments Requested
The Department of Education has issued both a 60-day and 30-day comment request for the new Military Service/Post-Active Duty Student Deferment Request Form. This form is to be used by FFEL, Federal Perkins, or Direct Loan borrowers that request a military service deferment and/or post-active duty student deferment. Comments for the final, 30-day comment period are due by May 28, 2010. To view this information, go to the Department of Education’s Information Collection web site at: http://edicsweb.ed.gov. Click on “Browse Pending Collections” and the link for the new deferment form is “04203”.
The form has been expanded to include the post-active duty student deferment which was added to the Higher Education Act by the College Cost Reduction and Access Act of 2007. Eligible borrowers include members of the National Guard or other reserve component of the US Armed Forces or retired members of the Armed Forces that are called or ordered to active duty while in school or within six months of enrollment. This provision allows the borrower a deferment for up to 13 months following the conclusion of the borrower’s active duty military service or until the borrower returns to school, whichever comes first.
Section 4 (Authorized Official’s Certification) has also been expanded and makes it easier for the certifying official to determine if the borrower meets the eligibility requirements for deferment. New check boxes have also been added to identify borrowers who served in an area of hostilities.
The Orange Book
The Federal Perkins Loan Program Status of Default as of June 30, 2009, known as the Orange Book, lists each school that participated in the Federal Perkins loan program during the 2008-2009 Award Year and provides a cohort default rate for each school. This report is based on data submitted by schools in the FISAP for FY 2009.
The overall Perkins cohort default rate is 10.04% for 2009, an increase from the 8.32% default rate in 2008. You may access the Orange Book at http://ifap.ed.gov/perkinscdrguide/attachments/0809PerkinsCDR.pdf.
NSLDS Publishes Two New Perkins Technical Updates
The National Student Loan Data System (NSLDS) has added new codes for new Perkins loan cancellations that were added through the Higher Education Opportunity Act (HEOA). The HEOA expanded several current cancellation categories and added more categories for public service. The first technical update (PK-2010-01) provides the codes NSLDS will accept to designate the type of cancellation reported with a Perkins loan record. Campus Partners is adding these codes to the submittal file we send to NSLDS each month for customers that have contracted for this service.
The HEOA also established a separate process for determining a disability discharge for totally and permanently disabled veterans. A veteran borrower will be considered disabled for purposes of this discharge if the veteran provides documentation from the Department of Veterans Affairs showing that the veteran has been determined to be totally and permanently disabled and unemployable due to a service-connected condition. NSLDS will use “VA” as the Loan Status Code (Field Code 263) for schools to report a loan discharged based on the Department of Veterans Affairs documentation (PK-2010-02). Loans reported with a “VA” loan status must be reported with a zero balance and will be considered closed.
To view these technical updates including the new cancellation codes, click on the links below:
PK-2010-01: http://ifap.ed.gov/nsldsmaterials/PK201001TechUpdate.html
PK-2010-02: http://ifap.ed.gov/nsldsmaterials/PK201002TechUpdate.html
Notification of Campus-Based Funding for the 2010-2011 Award Year
Awards for the FWS, FSEOG, and Perkins Loan programs have been approved for
schools listed via the link below. As in previous years, there is no new Federal
Capital Contribution for the Perkins Loan Program. To view this notification, go to http://ifap.ed.gov/cbawards/1011CBAwards.html.
Changes to Primary Care Loans (PCL) and Nursing Student Loans (NSL)
The Department of Health and Human Services recently provided several communications to schools participating in the Primary Care Loan (PCL) program and the Nursing Student Loan (NSL) program.
On March 23, 2010, the President signed the Health Care Reform Bill, which includes The Patient Protection and Affordable Care Act of 2010 (PPACA). This legislation changes the Primary Care Loan (PCL) program service obligations and parental financial information requirements for independent students. The changes are listed below.
(Please note that we have requested that HHS clarify several items listed below related to PCL and NSL programs. More information is expected during a teleconference hosted by HHS.)
Summary of PCL Changes
- Service Obligations
- Previously, recipients of PCL loans have been required to enter and complete a residency training programs in primary health care and practice primary health care through the date on which the loan is repaid in full.
- Based on the new law, any new PCL loan made on or after March 23, 2010 will have a different service requirement.
- New PCL borrowers are now required to enter and complete residency training in primary health care and practice in primary care for 10 years (including the
years spent in residency training) or through the date on which the loan is repaid
in full, whichever comes first.
- Interest Rate
- In the past, PCL borrowers who did not fulfill their service obligation (noted above) were penalized by having their interest rate recalculated at an 18% interest rate.
- As a result of the new law, borrowers who received a PCL on or after March 23, 2010 who fail to meet their service requirements are subject to an interest penalty of 7% per year (versus 18%).
- Parental Financial Information
- Prior to PPACA enactment, independent students were required to provide parental financial information to the school’s financial aid office in order to consider all financial resource available to that student. With the new law, independent students are no longer required to submit parental financial information to determine financial need.
- HHS has emailed schools regarding changes to the terms and conditions on the PCL Master Promissory Note and also provided a sample MPN with the appropriate changes made in red font. Schools may use the sample MPN to revise their MPN for loans made on or after March 23, 2010.
Summary of NSL Changes
- Loan Funding Limits
- Previously, the total NSL loan for any academic year could not exceed $2,500 unless the borrower was in the final two academic years of the program. For students in their last two years of study, the annual maximum was $4,000.
- Under the new law, the new amount of funds that may be disbursed for an academic year is $3,000 and $5,200 for borrowers in the final two academic years of the program.
- Date of Enrollment
- Previously an NSL loan could be made to a student who was enrolled after June 30, 1986. Now, an NSL loan can be made to a student of financial need who was enrolled after June 30, 2000.
- Loan Cancellation Date
- Prior to the new law, partial loan cancellation could be granted to students with a note date prior to September 29, 1979. That date has now been extended to September 29, 1995. Therefore, students that received an NSL loan before September 29, 1995 may receive a partial loan cancellation for service performed on or after March 23, 2010. To qualify, the borrower must be employed full-time as a professional nurse in a public or non-profit private agency, institution, or
organization. Up to 85% of the loan may be cancelled (15% for the first, second
and third year and 20% for the fourth and fifth year).
HHS is planning a teleconference to cover the new laws and to allow schools an opportunity to ask questions. Campus Partners will notify customers via email as soon as a definite date is set.
Nurse Faculty Program Guidance for FY 2010
In mid-April 2010, the Division of Nursing announced a funding opportunity for the 2010 Nurse Faculty Loan Program (NFLP). As part of this announcement, HHS also provided the Nurse Faculty Program Guidance for 2010. We emailed this guidance and a summary of program changes to our Nurse Faculty customers last week. If you have not yet received this summary, please contact your Customer Service Representative.
Another Red Flags Rule Enforcement Extension
The Federal Trade Commission (FTC) has delayed enforcement of the “Red Flags Rule” until June 1, 2010. The rule is in effect, but will not be enforced until that date. The “Red Flags Rule” requires financial institutions and creditors to develop and implement a written identity theft prevention program to detect, prevent, and respond to patterns, practices, or specific activities that may indicate identity theft.
Campus Partners completed our guidelines in November 2008. Customers should include a copy of our guidelines with their own institutional procedures.
We have included an outline of our guidelines in the attachment below.
Attachment: Campus Partners Identity Theft Policy
Noyce Scholarship/Stipend Program
With no new federal funding (HHS loans have not received any new funds either), and private loans not always an option for students, many schools are looking at new funding opportunities to assist their student borrowers in attending school. Some of our customers are participating in the Noyce Scholarship Program (NSP). The Robert Noyce Teacher Scholarship/Stipend Program was first authorized under the National Science Foundation Authorization Act of 2002 (P.L. 107-368) and reauthorized in 2007 under the American COMPETES Act (P.L. 110-69). The purpose of the program is to encourage science, technology, engineering, and mathematics majors and professionals to become K-12 mathematics and science teachers.
Campus Partners can service NSP loans if your school participates in the program. Please contact Lisa Koniuto, Director, Business Development, or Pattie Mastin, Account Manager if you wish to add this loan program to your servicing portfolio.
Campus Partners Disclosure Service
Campus Partners is pleased to announce that its new Disclosure Service for institutional loans will be available in time for 2010 – 2011 academic year loan processing. The Disclosure Service is designed to help schools comply with new Truth-in-Lending Act requirements for most loans originated on college campuses, including Health Professions, Nursing Student, Nurse Faculty, and institutional loans. (Title IV loans, including Perkins loans, are excluded from these regulations.) Disclosures will be created at the time of loan application, approval, and the final award and will provide all loan details required under the new provisions.
We are currently working with a pilot group of schools and anticipate releasing the service to all our customers soon. Several service levels are available, including the option to have Campus Partners produce and mail all required loan disclosures. For more information, contact Lisa Koniuto, Director, Business Development, or Pattie Mastin, Account Manager.
Audit Underway
Our third-party audit for the fiscal year ending June 30, 2010 is currently underway. All loan programs serviced by Campus Partners will be included in the audit. Our auditor, Porter Keadle Moore, LLP, estimates the final report will be available for distribution by mid-August.
An Audit Report Request Form is available on our Web site. We will keep you informed about the status of the audit in future issues of the Campus Partners Update.
Attachment: Audit Request Form
Get Ready for Year-End Processing
June 30, 2010 is just a few weeks away. Be sure to get your important requests in before the deadlines listed below so they can be processed by year-end. All requests are processed in the order that we receive them, whether they arrive via regular mail, overnight mail, fax, DataLink Dispatch, or e-mail.
Important Year-End Processing Deadlines
June 25-- Requests for Change/Adjustment memos
July 2-- Year-end post begins
You can use eXpressReports to access your fiscal year-end reports immediately following year-end processing. Our Customer Service team can assist you with creating any special report that you need using myReports, our ad hoc reporting tool.
Campus Partner is pleased to announce the following new customer:
Bowdoin College
Bowdoin College came to us from another servicer and joins several other schools, which have recently joined our community of customers. We are very happy to begin this relationship with Bowdoin student loan staff and their borrowers.
Web conferences offer a great way to receive training without leaving your office. These sessions are free of charge. Please email Debra Pitts at dpitts@campuspartners.com to register for any of the Web conferences listed below.
2010 Web Conference Schedule
| Topic | Date |
|---|---|
Federal Perkins Cancellation Benefits |
Tuesday, June 8 2:00 to 3:30 Eastern |
Understanding and Completing the FISAP |
Thursday, July 8 2:00 to 3:30 Eastern |
Cohort: What is it and How Do I Manage it? |
Thursday, August 12 2:00 to 3:30 Eastern |
The Borrower Experience |
Thursday, September 9 2:00 to 3:30 Eastern |
Regulations Update |
Thursday, November 11 2:00 to 3:30 Eastern |
All About the Collections Process |
Thursday, December 9 2:00 to 3:30 Eastern |
Student Loans 101 and 202
Student Loans 101 and 202 Workshops are scheduled to be held at our offices in Winston-Salem, NC several times this year. Student Loans 101 is designed with new student loan administrators or those who are new to Campus Partners in mind, while Student Loans 202 provides advanced training. Both workshops offer hands-on training at individual workstations. Class sizes are kept small so you receive personal attention.
To register, fax your completed registration form to Debra Pitts at 336-607-2025.
| Student Loans 101 | October 14-15 | |
| Student Loans 202 | June 10-11 | |
| Time: | Day One: 8:30 AM to 4:00 PM | Day Two: 8:30 AM to 1:00 PM |
| Click here: | Workshop Information and Registration Form | |
| To Register: | Fax registration form to Debra Pitts at 336-607-2025 | |
News about upcoming conferences will be published in future issues of the Update.
The COHEAO mid year conference is July 26-27 in Chicago, IL at the Hotel Monaco. More information is available at www.coheao.org.
The Minnesota Collection Network will hold is annual conference October 24-27 at the Sheraton Bloomington in Bloomington, MN. More information is available at www.mnnetwork.org.
Cutoff Dates for May, June, July, and August.
Transaction
|
Apr. 2010 |
May 2010 |
June 2010 |
July 2010 |
|---|---|---|---|---|
Last day to receive collection payments |
4/27 |
5/25 |
6/25 |
7/27 |
Last day to receive regular payments |
4/28 |
5/26 |
6/28 |
7/28 |
Last day for online payments |
4/30 |
5/28 |
7/02 |
7/30 |
Date final post begins |
4/30 |
5/28 |
7/02 |
7/30 |
Report date used for final post |
4/30 |
5/31 |
6/30 |
7/31 |
Last day deposits created for deposit to bank account |
4/30 |
5/28 |
6/30 |
7/30 |
2010 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 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 |
01/29/2010 |
01/29/2010 |
01/31/2010 |
01/29/2010 |
February 2010 |
02/23/2010 |
02/24/2010 |
02/26/2010 |
02/26/2010 |
02/28/2010 |
02/26/2010 |
March 2010 |
03/26/2010 |
03/29/2010 |
04/02/2010 |
04/02/2010 |
03/31/2010 |
03/31/2010 |
April 2010 |
04/27/2010 |
04/28/2010 |
04/30/2010 |
04/30/2010 |
04/30/2010 |
04/30/2010 |
May 2010 |
05/25/2010 |
05/26/2010 |
05/28/2010 |
05/28/2010 |
05/31/2010 |
05/28/2010 |
June 2010 |
06/25/2010 |
06/28/2010 |
07/02/2010 |
07/02/2010 |
06/30/2010 |
06/30/2010 |
July 2010 |
07/27/2010 |
07/28/2010 |
07/30/2010 |
07/30/2010 |
07/31/2010 |
07/30/2010 |
August 2010 |
08/24/2010 |
08/25/2010 |
08/27/2010 |
08/27/2010 |
08/31/2010 |
08/31/22010 |
September 2010 |
09/27/2010 |
09/28/2010 |
10/1/2010 |
10/1/2010 |
09/30/2010 |
09/30/2010 |
October 2010 |
10/26/2010 |
10/27/2010 |
10/29/2010 |
10/29/2010 |
10/31/2010 |
10/29/2010 |
November 2010 |
11/19/2010 |
11/22/2010 |
11/24/2010 |
11/26/2010 |
11/30/2010 |
11/26/2010 |
December 2010 |
12/27/2010 |
12/28/2010 |
12/31/2010 |
12/31/2010 |
12/31/2010 |
12/31/2010 |
January 2011 |
01/25/2011 |
01/26/2011 |
01/28/2011 |
01/28/2011 |
01/31/2011 |
01/31/2011 |
