Campus Partners Update Newsletter




Campus Partners Update Newsletter
July 14, 2011

Holiday Closing:

Monday, September 5: Labor Day

 

Next Web Conference

Understanding and Completing the FISAP

Thursday, August 11
2:00 PM Eastern

E-mail Debra Pitts at dpitts@campuspartners.com to register.

 

 

Reminder: Management Operations Report Changes

Perkins Legislation

Department of Education News

Separation Date Management

 



Changes to Management Operations Analysis Report-Reminder


As published in the May 2011 Update, Campus Partners will add an additional page to the Management Operations Analysis Report starting with your June 30, 2011 report. The report is being expanded to provide data necessary to complete the Annual Operating Report (AOR) based on new data elements that were added by the Department of Health and Human Services (HHS).

Schools are required to report this data in the Student Borrower Data Section on Report Page 1a for Health Professions Student loans (HPSL), Nursing loans (NSL), Primary Care loans (PCL), and for Loans to Disadvantaged Students (LDS). These loans are identified on System III as Loan Type H for HPSL, PCL, and LDS loans and Loan Type T for NSL loans.

For a detailed explanation of the new data that will be added to page four of the Management Operations Analysis Report, see last month’s issue of the Update.
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If you have additional questions regarding this information, please contact your Client Relationship Coordinator.

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Proposed Changes to the Perkins Loan Program

There are no legislative updates concerning the Perkins loan program to report in this issue. We will continue to keep you informed of any emerging Perkins news.

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Nelnet – Total and Permanent Disability Servicer for Veterans

On June 6, 2011, the Department of Education (ED) announced that Nelnet had begun processing all Total and Permanent Disability (TPD) discharge assignments and referrals on June 1, 2011. Nelnet service now includes processing both general (non-veteran) and veteran’s TPD discharges. Veteran’s TPD documents should no longer be sent to the Atlanta address, used by the former servicer. Any TPD related documents sent to the Atlanta address will be returned to the sender. New contact information for schools and borrowers is provided at the links below.

Contact information for schools: Go to:
http://ifap.ed.gov/ifap/helpContactInformationList.jsp?group=1

Scroll down until you see the topic, Total and Permanent Disability Discharge and Veterans Disability Discharge. Click “More.”

Contact information for borrowers: Go to:
http://ifap.ed.gov/ifap/helpContactInformationList.jsp?group=2

Scroll down until you see the topic, Total and Permanent Disability Discharge and Veterans Disability Discharge. Click “More.”

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No Perkins Cancellation Benefit Reimbursement for 2009-2010

As provided by Federal Perkins regulations, Perkins Loan borrowers may perform qualifying service to have all or part of their loans cancelled. There are a number of cancellation categories that qualify. Under Perkins regulations 674.63, ED is authorized to reimburse schools for their share of principal and interest cancelled during an award year.

The Department of Defense and the Full-Year Continuing Appropriations Act of 2011 did not allocate funds to ED to provide reimbursements for 2009-2010 Federal Perkins loan cancellations. As a result, no reimbursement payments will be issued to schools this year.

The Department will calculate the 2009-2010 reimbursement payment each school would have been eligible to receive and maintain a record of that amount. In the event of program termination, schools will be able to retain cancelled principal and interest amounts that should have been reimbursed by ED in previous years.

Reimbursement calculations are based on information reported by schools on their 2009-2010 FISAP (Part III, Section A, field 35 for the Defense Loan Program and fields 36 through 48 for the NDSL and Perkins Loan programs).

To read the full electronic announcement, :
http://ifap.ed.gov/eannouncements/051211FedPerkinsLoanServCancellationReimbursement0910.html.

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Notification of Campus-Based Funding for the 2011-2012 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/1112CBAwards.html.

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Gainful Employment FAQ

The Department of Education has posted a list of Frequently Asked Questions to provide information and operational guidance on the requirements of the new Gainful Employment (GE) regulations. Institutions must review the final regulations as published in the Federal Register on October 29, 2010, to ensure that they are in compliance with all of the GE Program requirements. The Federal Register is available at:
http://edocket.access.gpo.gov/2010/pdf/2010-27395.pdf.

The FAQ is available at:
http://www.ifap.ed.gov/GainfulEmploymentInfo/2011GEFAQ.html.

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Final FISAP for 2011 Published by ED

ED has published the final FISAP form, instructions, and Desk Reference for the fiscal year ending June 30, 2011. Campus Partners has reviewed the FISAP form and instructions and has not found significant changes this year.

The deadline for this year’s FISAP is Friday, September 30, 2011. It will be posted on the e-Campus-Based web site by August 1, 2011. To access the form and instructions, go to: http://ifap.ed.gov/fisapformandinst/1213FISAPForm.html.

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Bankruptcy Procedures

As part of any Full or Enhanced servicing agreement with Campus Partners, we process bankruptcy documents that we receive on your behalf. Upon receipt of the First Meeting of Creditors bankruptcy document, we will suspend billing on the loan as required by regulations, and all activity on the account will be frozen. No bills or notices will be sent to the borrower while the bankruptcy stay is in effect, and the loan will be coded as “In Bankruptcy “at the credit bureau.

The First Meeting of Creditors document and any other documents received by Campus Partners regarding a borrower’s bankruptcy filing will be quickly provided to your school. These documents will be forwarded along with a cover letter, which will specify the type of bankruptcy filed, documents that are enclosed, actions already taken by Campus Partners, and any other action that might be required. It is your responsibility to review these documents to determine the status of the bankruptcy and any actions required on your office’s part. If you have questions, please contact us immediately as inactivity on your institution’s part may affect the viability of the loan.

The Proof of Claim is also an important document that we will forward to your school. To receive potential payments from the bankruptcy courts, you must complete and return the Proof of Claim to the bankruptcy courts by the date specified. If the claim is not filed by the deadline, your school risks the loss of potential payments.

Another document you may receive from Campus Partners is a Complaint for Determination of Dischargeability. As explained in the attachment referenced below, a borrower may seek to prove undue hardship by obtaining a judicial ruling [under U. S.C. 523(a) (8)] and file an adversary proceeding, which is a lawsuit within the bankruptcy proceeding. If the borrower files an adversary proceeding, and it is approved by the courts, we will be required to discharge the loan through the cancellation process.

Attached is an excerpt from the 2010-2011 FSA Handbook regarding Bankruptcy Procedures.

If you have questions related to bankruptcy procedures or documents, please contact your Client Relationship Coordinator.

Attachment: Excerpt from FSA Handbook


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Regulatory Wisdom from Sharon Cameron

Question: If a borrower does not complete electronic exit counseling or left school before completing exit counseling, do I have to mail the borrower a paper copy of the exit counseling materials?

Answer: Yes. The FSA Handbook clarifies that “If the borrower withdraws from school without the school’s prior knowledge or fails to complete an exit counseling session, the school must provide exit counseling through either interactive electronic means or by mailing counseling material to the borrower at the borrower’s last known address within 30 days after learning that the borrower has withdrawn from school or failed to complete exit counseling. Finally, schools must document all exit interviews.”

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Separation Date Management


This month’s edition of the Update includes a Q&A concerning our Separation Date Management service.

This service assists our school customers in managing borrower separation dates through the exchange of loan status information with the National Student Clearinghouse (NSC).

The data exchanged includes enrollment information NSC has received from your registrar’s office. If Campus Partners receives information back from NSC indicating a borrower is no longer enrolled at your institution, a separation date change is processed on our system.

Customers enrolled in the Separation Date Management service will receive the monthly NSC Report. This report lists borrowers whose separation dates were changed based on information we obtained from NSC. Both the old and the new separation dates are listed. It is important to review the NSC Report to ensure that exit interviews are performed in a timely manner. If the borrower withdraws from your institution without your knowledge and the separation date is changed, you will need to mail exit materials to that borrower within 30 days of learning that the borrower withdrew. This is a federal regulation.

For additional information on our Separation Date Management service, see the Q&A in the attachment below. This month’s Regulatory Wisdom also addresses the importance of providing timely exit interviews to your borrowers.

Attachment: Separation Date Management Q&A

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Audit Reminder

Our third-party audit for the fiscal year ending June 30, 2011 will be distributed in August. As reported last month, Campus Partners’ third-party auditors will conduct a SSAE 16 audit this year instead of a SAS 70 due to new American Institute of Certified Public Accountants requirements. To request your copy, please complete the Audit Request Form, which is available by clicking here.

Audit reports will be emailed to you in PDF format.

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Remarkable Anniversaries

Campus Partners is celebrating anniversaries of 40, 35, 30, and 25 years with the following customers this quarter.

40 years
Dutchess Community College
Mount Sinai School of Medicine
University of Richmond

35 years
Coker College
Jones College
South University-Savannah
Teterboro School of Aeronautics

30 years
Stevenson University
University of Nebraska at Omaha

25 years
Massachusetts Institute of Technology
Texas Tech University

Customers reaching other milestone anniversaries are listed in the attachment.

Attachment: Long-Term Customer Anniversaries


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Web Conferences

Web conferences are a great way to receive training without leaving your office--and they are free of charge. Please email Debra Pitts at dpitts@campuspartners.com to register for any or all web conferences, specifying the web conferences you plan to attend.

Topic Date
Understanding and Completing the FISAP
Thursday, August 11
2:00 to 3:30 Eastern
Where do I Start? A Month to Month Guide
Thursday, September 8
2:00 to 3:30 Eastern
Regulations Update
Thursday, November 17
2:00 to 3:30 Eastern
Tips for Managing Delinquencies
Thursday, December 8
2:00 to 3:30 Eastern

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Student Loans 101


The final Student Loan 101 workshop of the year will be presented October 13-14. Student Loans 101 is designed for recently hired student loan administrators at your school or new Campus Partners customers. The event offers hands-on training at individual workstations and the opportunity to ask questions and receive personal attention.

Student Loans 101

October 13-14

Time

Day 1: 8:30 AM to 4:00 PM
Day 2: 8:30 AM to 1:00 PM

Registration Form and Information

To Register

 

Fax the completed registration from to Debra Pitts at 336-607-2025.

 

 

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Conference Schedule

Campus Partners staff will attend the conferences listed below. Details about future conferences will be published in the subsequent issues of the Update newsletter.

The University of Washington will host the 2011 Western Student Financial Services Conference on July 18-19 in Seattle, WA.  There is no registration fee for school attendees. To register for the conference, email your name, address, email address, phone number, university/agency name, and position  to Diane Colley  at dianec@uw.edu and Sandie Rosko at sandier@uw.edu.  Hotel information is available when contacting them.

The COHEAO Mid-Year Conference will be held July 30 - August 2 in St. Louis, MO at the Westin St. Louis. More information is available at www.coheao.org.

Williams and Fudge will hold its Student Loans and Receivables Collection Conference September 25-29 at the Hilton Myrtle Beach in Myrtle Beach, SC.  More details are available at: http://www.wfcorp.com.

The Minnesota Collection Network will host its annual conference October 16-19 at the Sofitel Minneapolis in Bloomington, MN.  More details are available at www.mnnetwork.org.

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Cutoff Dates

Transaction

July 2011

Last day to receive payments submitted by collection agencies
7/26
Last day to receive payments and payment transmittals sent directly to the Campus Partners office
7/28
Last day to make online payments and/or reverse payments
7/29
Last date to receive payments at our lockbox location
7/29
Date month-end processing begins
7/29

 

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