Fed-Updates Financial Aid Newsletter – August 29, 2019

Newsletter topics: Transition of FSA download website content, (SULA) Calculation Updates Made in the COD System, Pell Grant Administrative Cost Allowance Payments for 2017-19 and 2018–19 Award Years, Loan Deferment for Cancer Treatment, Expected Family Contribution Formula Guide

Note: Fed-Updates newsletter updates are excerpts from original announcements posted on the IFAP website. Please review the entire update by clicking the link included with each posting. We’re not able to include all Federal updates and deadlines, but you’ll find additional information on the IFAP website. Reminder: Deadlines and event dates are noted in our newsletters are subject to change as determined by the Department of Education.

Labor Day Federal Holiday Processing and Customer Service Hours:  Federal offices as well as Title IV processors and contact centers will be closed on Monday, September 2, 2019 to observe the Labor Day federal holiday. In addition, the IRS Data Retrieval Tool (DRT) will be unavailable from 8 p.m. Eastern time (ET) on Saturday, August 31, 2019 through 7 a.m. ET on Tuesday, September 3, 2019. Please review the August 3, 2019 electronic announcement for additional information, as well as the attachment to the announcement. FA Solutions will also be closed on Labor Day.

Upcoming Transition of FSAdownload Content and Financial Partners Portal to IFAP Website on August 18, 2019 (Updated August 19, 2019): The transition implementation did not occur on August 18, 2019 and will be completed at a future date. The FSAdownload website has not yet been retired and remains available at https://fsadownload.ed.gov/index.html. The Financial Partners Portal is still available and accessible at https://fp.ed.gov. Please review the August 9, 2019 electronic announcement for additional information and monitor the IFAP website for additional updates.

Information about Subsidized Usage Limit Applies (SULA) Calculation Updates Made in the COD System July 26-28, 2019: During the period July 26-28, 2019, we implemented additional Common Origination and Disbursement (COD) System functionality that supports the Campus-Based programs and the processing of Federal Pell Grant (Pell Grant), Iraq and Afghanistan Service Grant, Teacher Education Assistance for College and Higher Education (TEACH) Grant, and William D. Ford Federal Direct Loan (Direct Loan) awards for the 2019–20 Award Year. Information about this implementation was posted in an attachment to a July 19, 2019 Electronic Announcement. In the posted attachment, it was noted that the implementation included changes to the SULA calculations. In this August 21, 2019 electronic announcement, additional information is provided about the change.

Second Pell Grant Administrative Cost Allowance Payments for 2018–19 Award Year and Third and Final Pell Grant Administrative Cost Allowance Payments for 2017–18 Award Year: The Federal Pell Grant (Pell Grant) regulations at 34 CFR 690.10 provide for an Administrative Cost Allowance (ACA) payment of $5.00 to each participating school for each student who receives a Pell Grant at that school for an award year. These funds may be used only to defray the costs of administering the Pell Grant, Federal Supplemental Educational Opportunity Grant, Federal Work-Study, and Federal Perkins Loan programs. The processing of the second ACA payments and the third and final ACA payments for the 2017–18 Award Year for all schools began on August 20, 2019. Please review the two August 22, 2019 electronic announcements below for additional information.

Deferment for Cancer Treatment for Direct Loan, FFEL, and Perkins Loan Program Borrowers: The Department of Education Appropriations Act, 2019, Title III of Pub.L. 115-245 created a new Cancer Treatment Deferment for borrowers in the William D. Ford Federal Direct Loan (Direct Loan), the Federal Family Education Loan (FFEL), and the Federal Perkins Loan (Perkins Loan) programs. Qualified borrowers may receive a deferment on their qualifying loans while they are receiving cancer treatment, and for the six months following the conclusion of their treatment. The deferment has no fixed time limit. Please review the August 22, 2019 electronic announcement for additional information.

RESOURCES

  • 2019-08-26 2020-2021 Expected Family Contribution (EFC) Formula Guide

Other helpful information pages: The following are a few helpful links to information pages available on the IFAP website: COD System, Gainful Employment, Cash Management, Processing Resources, FAFSA and the IRS DRT and iLibrary, which includes many resources, such as a consolidated list of Electronic AnnouncementsDear Colleague Letters, and Federal Registers. Please review the IFAP website for additional guidance, resources, deadlines, and information related to the administration and processing of Title IV federal student aid.

Thank you for taking the time to review our newsletter!

Rob Wright

Disclaimer of Liability: Every effort is made to provide accurate and complete information in FA Solutions’ newsletters. However, FA Solutions makes no claims, promises or guarantees about the accuracy, completeness, or adequacy of the contents of the newsletters and expressly disclaims liability for errors and omissions in the contents of its newsletters. Although FA Solutions may include links providing direct access to other Internet resources, including Websites, FA Solutions is not responsible for the accuracy or content of information contained in these sites.

2019-09-03T19:05:51+00:00