Campus Partners Update Newsletter June 1, 2008!
Holiday Closing: Campus Partners will be closed on Friday, July 4 for Independence Day
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Inside Campus Partners Account Manager |
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Perkins Loan Funds – NACUBO/COHEAO Survey
In our last Update, we reported that both NACUBO and COHEAO were working with the Department of Education to provide schools with guidance to address the drastic decline in the balance of your revolving Federal Perkins Loan funds. These organizations conducted a survey of 1,271 member institutions that participated in the Perkins program during the 2006-07 academic year. We have provided the results of that survey in the attachment listed below.
Attachment: Perkins Fund Survey
Congress Passes H.R. 5715 – President Has Signed PL 110-227
In early May, the Senate approved H.R. 5715, the “Ensuring Continued Access to Student Loans Act of 2008,” shortly after the House overwhelmingly passed the bill and after pressure from the Bush Administration to move the legislation along quickly.
The bill is the result of action undertaken by members of the House and Senate during the last several weeks to make significant changes to federal student aid programs, including several that seek to provide liquidity in the federal student loan market. ED has begun to analyze the new authority granted by this legislation and will develop future regulations based on this Act.
COHEAO Teleconference on Mandatory Assignments
Campus Partners participated in the COHEAO teleconference held on May 5, 2008 to
hear from industry experts and officials at the Department of Education concerning mandatory loan assignment, which goes into effect July 1, 2008.
Lori Hartung, Regional Sales Manager with Todd, Bremer and Lawson, Inc., provided information on current and new regulations and how to prepare portfolios for assignments. Ellen Harris-Small, Assistant Manager of the Office of Billing and Collections at Rutgers University, provided information in “problem solving” accounts that you assign to ED.
Brian Smith and Shirley Wheeler from the Department of Education also participated in the call and shared how they plan to implement the new regulation. Once the regulation is effective, they will begin with a pilot set of 10-15 schools. They plan to work with these schools on a one-on-one basis to get a better understanding of how the process will work and to minimize any emerging problems. ED is also developing an updated informational guide to aid in the assignment process.
ED officials said the Department is currently targeting loans in default for more than 10 years. Although the regulations require assignment of loans in default for seven years or more, Brian Smith said that seven years is just a minimum requirement. Smith also noted that the Reauthorization bill included language that limits ED’s authority to collect these loans. He stated that if this provision is accepted in the conference agreement, ED would need to reassess their mandatory assignment procedures.
No Change in New NSLDS Reporting Implementation Date
Campus Partners has been working with other servicers, schools, and the Department of Education to modify the requirements of reporting one loan for each award year to NSLDS. Although the group has repeatedly asked the Department to delay the July 1, 2008 implementation date, this requirement will be effective as scheduled.
NSLDS is considering the possibility of lifting some of the edits to avoid a large number of rejects as schools begin to report Academic Level and Award Year. Campus Partners also received the following correspondence from Sue Barnette at NSLDS:
“Please assure your customers that NSLDS will be working with them in order to have a smooth transition to our new reporting requirements. We understand that some delays may take place and are willing to work with all concerning this change. Please let me know if you have any questions. Thanks –Sue.”
NSLDS Reporting Requirement Changes
While Campus Partners has actively advocated against the implementation of these new NSLDS reporting requirements, we continue to work to ensure our customers stay in compliance without undue burden on campus staff.
Beginning with loans disbursed on July 1, 2008, data providers will be required to report a single Federal Perkins loan for each academic award year in which the borrower receives funds. Additionally, the borrower’s academic level will now be required and should correspond with the disbursement amount being reported. In order to comply with this new reporting requirement, Campus Partners must now collect additional data on all incoming New Loans and Advances for disbursements made on or after July 1, 2008.
The existing Academic Level Indicator will now be required for all New Loans and Advances dated July 1, 2008 or after. The Academic Level Codes have not changed. Only the definition for the ‘N’ value has changed. Please see the attachment below for information on the Academic Level Indicator code values.
Attachment:Academic Level Indicator Code Values
A new data element, Award Year, has been added to our New Loans and Advances processing. This field is a 2-position field and should be reported as the year value for the first calendar year in the academic award year. For example: the Award Year will be reported as ‘08’ for all new loans and advances disbursed for the 2008-2009 academic award year. In order to comply with the published deadline, these data elements should be reported for all disbursements made on or after July 1, 2008.
Our Customer Service Representatives will be conducting a calling campaign beginning on June 2 to explain these changes to you personally. We will also be telling you more about our new File Transfer product, which provides an even easier way to handle your file input. If you have questions in the meantime, please feel free to contact your Customer Service Representative.
Perkins Collection Cost Cap
We have published several articles in our Campus Partners Update regarding the cap that has been placed on collection cost that can be charged to your borrowers for loans placed on or after July 1, 2008. Regulations published in the November 1, 2007 Federal Register governing Federal Perkins loans have been amended and require a 30% cap on collection costs that you may charge your borrowers for first placement with an external agency. The cap for second placement and litigation is 40%.
Many of you have been working with your agencies to negotiate new rates and have contacted us in order that we may update these rates on System III. If you are not sure what percentages are set up for your Perkins program, contact your Customer Service Representative. You must be in compliance with the new rates for all loans placed on or after July 1, 2008.
Internal Collection Costs
As published in our January 1, 2008 Campus Partners Update, we verified with the Department of Education that the 30% the collection cost cap applies to loans placed with an outside collection firm, and not to in-house collections. We also told you in last month’s Update that we were working on solutions to assist you and your agencies in complying with these new regulations.
ED has informed us that:
“A collection agency's fee may only be assessed based on a percentage of principal + interest + late charges. Although internal collection costs are included with the referral, the internal collection costs may not be used in calculating the amount of a payment that the collection agency retains as its fee.”
Example: You conduct the first collection effort using your in-house personnel and are unsuccessful in collecting from this borrower. You have charged internal collection costs on this loan and have now placed this loan with an outside agency. This borrower cannot be charged the 40% collection fee on the internal costs assessed by your university.
Campus Partners is working to add new fields to our collection reports that will provide you and your agencies with the amount of any internal collection cost assessed by your school, and that are not subject to the 40% agency fee. Stay tuned to future editions of the Campus Partners Update for additional information on our reports.
Discharge Application for Total and Permanent Disability – Notice of Proposed Information Collection Request
The Discharge Application: Total and Permanent Disability 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 on his or her student loans made under the FFEL, Perkins, or Direct Program loans, and TEACH Grant service obligation. Interested persons are invited to submit comments on or before July 14, 2008.
The Department is amending the current TPD Discharge Application to incorporate changes to the terms and conditions of total and permanent disability discharges that were made by final regulations published on November 1, 2007. The amendment also adds provisions for the discharge of a Teacher Education Assistance for College and Higher Education (TEACH) Grant recipient’s service obligation based on a total and permanent disability, in accordance with the proposed regulations for the TEACH Grant Program that were published on March 21, 2008.
You may view this form at
http://edicsweb.ed.gov/browse/browsecoll.cfm?pkg_serial_num=3687
The Orange Book
The Federal Perkins Loan Program Status of Default as of June 30, 2007, known as the Orange Book, lists each school that participated in the Federal Perkins Loan Program during the 2006-2007 Award Year and provides a cohort default rate for each school. You may access the Orange Book at: http://ifap.ed.gov/cbpmaterials/0607PerkinsCohortDefRateGuide.html.
Campus-Based Awards Closeout
The Department has completed the closeout of all 2006-07 awards for the Campus-Based programs based on a school’s submission of the Fiscal Operations Report section of the 2006-2007 FISAP. The questions and answers included in Dear Colleague Letter CB-08-07 explain closeout and provide important information regarding the notification process. To view this DCL, go to http://www.ifap.ed.gov/dpcletters/050708CB0807.html.
Nurse Faculty Loan Program Guidance for 2008
HHS has added program guidance for 2008 to their Web site that governs the Nurse Faculty Loan Program. Campus Partners is seeking guidance from HHS regarding some changes made to the program as well as any changes to the AOR this year. HHS did note the following change for 2008:
As of FY 2008, NFLP student eligibility includes support for part-time enrollment. In previous years, the NFLP did not support students who were enrolled part-time. Effective July 1, 2008, participating schools may award NFLP loans to students enrolled full-time and part-time.
In reviewing the 2008 guidance, Nurse Faculty loan recipients may receive in-school deferment for up to three years for the following:
• NFLP borrowers who graduate and are employed and decide to return to a graduate nursing program to pursue a doctoral degree to further their
preparation as nurse faculty may request deferment of payment for up to 3 years.• NFLP borrowers who graduate and participate in post-doctoral programs may request deferment of payment for up to 3 years.
These new deferment categories will be processed as a Type “F” deferment on System III. You may view this guidance from HHS at http://www.hrsa.gov/grants/NFLP/.
Get Ready for Year-End Processing
June 30, 2008 is days away, so use this checklist to help close the fiscal year successfully:
1. Reconcile loan and accounting information.
· Reconcile all disbursements for the year.
· Correct and return all unpostable new loans and advances.
· Check and update separation dates.
· Reconcile your general ledger.
2. Determine special needs and communicate them to us.
· Contact your auditors to determine the reports they need.
· Provide us with instructions for special mailing requirements for year-end reports.
· Submit change/adjustment requests for processing.
3. Work the Cohort Default Rate Report.
· Provide your Customer Service Representative with requests for coding changes.
As the end of the fiscal year approaches, our goal is to process all Customer Service requests in a timely manner. 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 7 - Requests for duplicate reports
June 20 - Requests for Change/Adjustment memos
June 27 - Year-end post begins
Remember, you can use eXpress Reports to access your fiscal year-end reports immediately following year-end processing. This Internet tool provides you with the fastest method of receiving your year-end information. Our Customer Service team can assist you with creating any special report that you need using myReports, our ad hoc reporting tool.
Regulatory Wisdom from Sharon Cameron Question: I have a borrower who has filed a loan application for total and permanent disability. I understand with the new regulations governing Perkins loans, the form must be filed within 90 days of the date the physician certifies the application or from the date the borrower became totally and permanently disabled. Which is correct? Answer from Ed: “The 90-day period the borrower has to submit the form begins on the date the physician signs the total and permanent disability form. The date the physician signed the form is considered to be the date the borrower became totally and permanently disabled. The three-year conditional discharge period will begin on the date the physician signed the form as well.” Question: Has ED published a new Loan Application form for Total and Permanent Disability? Answer: The Department is currently in the process of revising this form. See the related article above.
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Audit Underway
Campus Partners is pleased to announce the completion of the first phase of our annual third-party servicing audit by Porter Keadle Moore (PKM). The PKM auditors reviewed our compliance with servicing regulations mandated by the guidance applicable to the Compliance Audits (Attestation Engagements) of the Federal Student Financial Assistance Programs and Report on Controls Placed in Operation and Tests of Operating Effectiveness (SAS 70). The initial audit covers the first three-quarters of our fiscal year, which ends on June 30, 2008. PKM will return in July to review fourth quarter compliance, and the entire audit process will be completed by the end of July 2008. We are projecting final documentation will be available by mid-August 2008. To request this material in paper format or on CD-ROM, please see the attached form. Please contact your Customer Service Representative with any additional questions.
Please stay tuned to the Campus Partners Update for more information.
Attachment: Audit Report Request Form
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Dear Linda Glenn, I appreciate your speedy service and all your follow up help with the Exit Interview project we had worked on together this Spring. I have received the documents with plenty of time to spare and you provided me great advice on how we can set things up for future semesters. You are a true asset to Campus Partners! Sincerely, David Zeit Linda Glenn is a Customer Service Representative for Campus Partners. |
Classroom 101 Workshops Schedule
Classroom 101 is scheduled for two more sessions this year. These popular workshops fill up quickly, so register now to avoid disappointment.
Date: July 10-11 and November 13-14
Time: 1st day: 8:30 - 4:00 2nd day: 8:30 - 12:30
To register, fax a completed registration form to Debra Pitts at 336-607-2025.
Attachment: Registration Form for 2008
Study Hall is in Session!
Our Webinar schedule for 2008 is posted below.
Our Study Hall schedule appears below. Be sure to join us on June 12 for our next Web conference featuring FISCOP Reporting
To register for these events, please contact Debra Pitts at dpitts@campuspartners.com.
Study Hall Schedule
| Topic | Date |
|---|---|
| FISCOP Reporting | Thursday, June 12 2:00 to 3:30 Eastern |
| Cohort-What is it and How Do I Manage it? | Thursday, August 14 2:00 to 3:30 Eastern |
| The Borrower Experience | Thursday, September 11 2:00 to 3:30 Eastern |
| Regulations Update | Thursday, October 9 2:00 to 3:30 Eastern |
| All About Collections | Thursday, December 11 2:00 to 3:30 Eastern |
Conference Schedule-See you there!
Representatives from Campus Partners will attend the following conferences.
National Credit Management will present its 9th Annual Collections and Receivables Conference on June 1-3 in St. Louis, MO at the Millennium Hotel. For more information, visit http://www.ncmstl.com/H2008conf.htm.
The Massachusetts Bursar Association will hold a meeting on June 5, 2008 at the College of the Holy Cross in Worchester, MA.
The Western SFS Conference (PAC 10) will be held July 13-16 in Flagstaff, AZ. For more information, visit www.wsfs.us.
COHEAO will hold its Mid Year Conference on August 2-5, 2008. For more details, visit their website at www.coheao.org.
Williams & Fudge will hold its 22nd Annual Student Loans and Receivables Conference on September 21-24, 2008 at the Omni Charlotte hotel in Charlotte, NC. For more details, visit their website at www.wfcorp.com.
The Illinois Student Loan Administrators will hold a meeting later this year in Chicago. More details will follow.
The Minnesota Collection Network will hold its meeting October 20-22 in Bloomington, MN at the Sheraton Bloomington. More information is available at www.mncollectionnetwork.com.
Cutoff dates for May, June, July, and August are presented below:
Transaction |
May 2008 |
June 2008 |
July 2008 |
Aug. 2008 |
|---|---|---|---|---|
| Last day to receive collection payments | 5/27 |
6/24 |
7/28 |
8/26 |
| Last day to receive regular payments | 5/28 |
6/25 |
7/29 |
8/27 |
| Last day for online payments | 5/30 |
6/27 |
8/01 |
8/29 |
| Date final post begins | 5/30 |
6/27 |
8/01 |
8/29 |
| Report date used for final post | 5/31 |
6/30 |
7/31 |
8/31 |
| Last day deposits created for deposit to bank account | 5/30 |
6/27 |
7/31 |
8/29 |
2008 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 2007 | 12/21/2007 | 12/26/2007 | 12/28/2007 | 12/28/2007 | 12/31/2007 | 12/28/2007 |
January 2008 |
01/28/2008 | 01/29/2008 | 02/01/2008 | 02/01/2008 | 01/31/2008 | 01/31/2008 |
| February 2008 | 02/26/2008 | 02/27/2008 | 02/29/2008 | 02/29/2008 | 02/29/2008 | 02/29/2008 |
| March 2008 | 03/25/2008 | 03/26/2008 | 03/28/2008 | 03/28/2008 | 03/31/2008 | 03/28/2008 |
| April 2008 | 04/25/2008 | 04/28/2008 | 05/02/2008 | 05/02/2008 | 04/30/2008 | 04/30/2008 |
| May 2008 | 05/27/2008 | 05/28/2008 | 05/30/2008 | 05/30/2008 | 05/31/2008 | 05/30/2008 |
| June 2008 | 06/24/2008 | 06/25/2008 | 06/27/2008 | 06/27/2008 | 06/30/2008 | 06/27/2008 |
| July 2008 | 07/28/2008 | 07/29/2008 | 08/01/2008 | 08/01/2008 | 07/31/2008 | 07/31/2008 |
| August 2008 | 08/26/2008 | 08/27/2008 | 08/29/2008 | 08/29/2008 | 08/31/2008 | 08/29/2008 |
| September 2008 | 09/23/2008 | 09/24/2008 | 09/26/2008 | 09/26/2008 | 09/30/2008 | 09/26/2008 |
| October 2008 | 10/28/2008 | 10/29/2008 | 10/31/2008 | 10/31/2008 | 10/31/2008 | 10/31/2008 |
| November 2008 | 11/21/2008 | 11/24/2008 | 11/26/2008 | 11/28/2008 | 11/30/2008 | 11/26/2008 |
| December 2008 | 12/26/2008 | 12/29/2008 | 01/02/2009 | 01/02/2009 | 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 |
