Maintained for Historical Purposes

This resource is being maintained for historical purposes only and is not currently applicable.

Organizational Structure - Student Financial Assistance Programs (SFAP) Organization

AwardYear: 1995-1996
EnterChapterNo: 1
EnterChapterTitle: Organizational Structure
SectionNumber: 1
SectionTitle: Student Financial Assistance Programs (SFAP) Organization
PageNumbers: 3-38



[[SFAP organization]]
The Student Financial Assistance Programs (SFAP) organization is
responsible for administering the SFA programs and for developing
the policies and procedures to meet the objectives of those programs.
As stated in the Introduction, SFAP is divided into five services. The
organizational chart on page 5 of this section shows these services,
and the services and their functions are described separately
beginning on page 6. Telephone numbers are listed down to the
branch level of each division (and to the section level if applicable).
The area code for all SFAP central office numbers is 202.

[[Other telephone numbers and information]]
Page 33 contains a listing of the Automated Data Exchange
Specialists, along with their telephone numbers; page 34 lists the Pell
Grant Program Financial Management Specialists, along with their
telephone numbers; and page 35 lists the Campus-Based Programs
State Representatives, along with their telephone numbers. Pages 36
and 37 contain the addresses and telephone numbers for the
Department of Education's ten regional offices, and on the back of
page 37 is a map of the Department's regions.

Recent changes to the SFAP organization--

- The Field Operations Service has been moved under the Institutional
Participation and Oversight Service (IPOS) and has been renamed
the Regional Operations Division.

- The Performance and Accountability Improvement Staff from the
old Field Operations Service has been moved directly under IPOS
and reports to that service director.

- The Guaranteed Student Loan Branches (formerly under the old
Field Operations Service) have been renamed the Guarantor and
Lender Review Branches.

- Within the Program Systems Service (PSS), the Applicant Systems
Division and the Pell Grant Systems Division have been merged.
The new division has been renamed the Application and Pell
Processing Systems Division. The Advanced Systems Technology
and Data Integration Division have been eliminated. There are three
new divisions under the Service: Postsecondary Education
Participants, National Student Loan Data System, and Federal Direct
Student Loans Systems. The GSL Systems Division has been
renamed the FFEL Systems Division, and the Campus-Based
Programs System Division remains in place. There are no branches
under these divisions.

- The Accounting and Financial Management Service has undergone
a general reorganization. Under the old organization, there were
three main program management divisions: Pell, Campus-Based,
and FFEL. Each division had a disbursement, accounting, and fund
control branches. Under the new organization, there will be two
divisions, one for loan financial management and one for
institutional financial management. The Loans Financial
Management Division contains three branches: FFELP, Financial
Reporting, and Direct Loans. The Institutional Financial Division
also contains three branches: Institutional Service, Pell Financial
Operations, and Campus-Based Financial Operations. The new
organization also contains the Financial System Interface and
Requirements Staff and the Financial Improvement and Reporting
Staff. These staffs report directly to the Service Director.

[[The "SFAP Organizational Chart" on page 1-5 is currently unavailable
for viewing. Please reference your paper document for additional
information.]]

[[Office of the Deputy Assistant Secretary 708-8391]]
The SFA programs are managed under the Office of the Deputy
Assistant Secretary for Student Financial Assistance Programs
(SFAP). This office formulates policy for, directs, and coordinates
those activities of the Department of Education (the Department) that
provide financial assistance through grants, work, and loan programs
to students pursuing a postsecondary education. The programs
administered through this office are described in the introduction to
this Handbook.

SFAP provides direction for the Department in meeting its goals in
credit management and debt collection of defaulted student loans
administered through the Department. It also administers the
process by which the Department--

- recognizes accrediting agencies;

- determines whether postsecondary institutions satisfy the definitions
of eligible institutions; and

- determines if eligible institutions meet the standards of financial and
administrative capability for participation in the SFA programs.

[[Guarantor and Lender Oversight Staff/Quality Improvement and
Operations Planning Staff]]
SFAP contains the Guarantor and Lender Oversight Staff (GLOS) and
the Quality Improvement and Operations Planning Staff (QIOPS).
GLOS is responsible for overseeing the Department's interests with
respect to guarantors (including their servicers) and lenders (including
servicers and secondary markets). GLOS develops the Lender Site
Review Guide, which assists guaranty agencies in conducting on-site
lender reviews. As necessary, GLOS works with other federal and
state agencies to develop and implement improvements in the
administration of the SFA student loan programs by lenders and
guarantors. QIOPS coordinates quality improvement activities
throughout SFAP.

[[The organizational chart "Policy Training, and Analysis Service"
on page 1-7 is currently unavailable for viewing. Please reference your paper
document for additional information.]]

[[Service responsibilities]]
THE POLICY, TRAINING, AND ANALYSIS SERVICE (708-5217)
is responsible for developing program regulations and formulating
program requirements, policies, and procedures; for developing
program training materials and program information for schools,
students, and the general public; and for analyzing program impact and
cost. The three divisions in this service are: Policy Development,
Training and Program Information, and Analysis and Forecasting.

POLICY DEVELOPMENT DIVISION (708-9261)

The Policy Development Division (PDD) is responsible for developing
and issuing program policies and regulations. It develops program
regulations and other policy materials such as "Dear Colleague"
letters and update bulletins that explain program policies to the
financial aid community. In addition, PDD makes policy decisions and
reviews and comments on proposed legislative changes. The division
contains four components: the Loans Branch, Grants Branch,
General Provisions Branch, and the Direct Loan component.

[[Loans Branch(708-8242)
The Loans Branch contains the Federal Family Education Loan
Program (FFELP) (formerly GSL programs) Section and the Perkins
Loan Program Section.

The FFELP Section (708-8242) develops regulations for the
Federal Family Education Loan Program (34 CFR Part 682).
Part 682 includes the Federal Stafford/Federal PLUS/Federal SLS
(Stafford/PLUS/SLS),*2* and Consolidation Loan Programs. The
Perkins Loan Program Section (708-8242) develops and updates the
regulations for the Federal Perkins Loan Program (34 CFR
Part 674).

[[Grants Branch(708-4607)]]
The Grants Branch contains the Pell and State Grant Section and the
Campus-Based Programs Section.

The Pell and State Grant Section (708-4607) develops Federal Pell
Grant regulations (34 CFR Part 690). It administers and develops
the regulations for the State Student Incentive Grant (34 CFR
Part 692) and the National Early Intervention Scholarship and
Partnership (34 CFR Part 693) programs.

The Campus-Based Programs Section (708-4690) develops the
regulations for the Federal Work-Study Program (34 CFR Part 675),
and the Federal Supplemental Educational Opportunity Grant
Program (34 CFR Part 676).

[[General Provisions Branch (708-7888)]]
The General Provisions Branch contains the Institutional Eligibility
Section, and the Student Eligibility and Verification Section.

The Institutional Eligibility Section (708-7888) develops the
regulations for institutional eligibility and participation (34 CFR
Parts 600 and 668), and the State Postsecondary Review Program
regulations (34 CFR 667). The regulations for foreign medical
school eligibility under the FFELP are included under 34 CFR
Part 600 as Subpart E.

The General Provisions regulations include subparts on institutional
participation (standards for financial responsibility, administrative
capability, and audit and record keeping requirements); program
and student eligibility; student consumer information requirements;
institutional misrepresentation; fine, limitation, suspension, and
termination procedures; appeal procedures for audit and program
review determination; institutional refunds; satisfactory academic
progress; and regulation of consultants and third party servicers.

The Student Eligibility and Verification Section (708-7888)
develops policies and procedures for verifying the accuracy of data
reported by students and parents in the application process. It
develops the criteria under which applicants are selected for
verification and develops the verification regulations (34 CFR
Part 668-Subpart E). This section also develops standards for
reviewing and approving tests used to determine a student's ability
to benefit and approves the tests in accordance with those standards.
This section is also responsible for overseeing the development of
the Free Application for Federal Student Aid (FAFSA), Cost of
Attendance, and other student eligibility issues. It also develops
plans for conducting computer matches between the student aid
applicant file and the files of other federal agencies to--

- identify students who have misreported information and
determine the extent of the misreporting;

- verify Selective Service registration;

- obtain SFA program information from the National Student Loan
Data System (NSLDS);

- confirm citizenship status; and

- verify Social Security Numbers (SSNs) of applicants, in general.

[[Direct Loan Component]]
The Direct Loan Component (708-9406) develops the regulations for
the William D. Ford Federal Direct Loan Program (34 CFR Part 685).
The component also interprets policy for the Direct Loan Program and
develops program forms, such as the promissory note and deferment
forms.

TRAINING AND PROGRAM INFORMATION DIVISION
(708-8636)

This division coordinates training activities for the financial aid
community and disseminates information on the SFA programs to the
aid community, the general public, and other groups (for example,
members of Congress). The Division contains the Training Branch
and Program Information Branch.

[[Training Branch (708-8146)]]
The Training Branch directs training activities on the SFA
programs. It assesses training needs, determines the methods to be used, and
develops and evaluates training programs. This training is carried out
by staff members of the branch itself, regional office staff members,
and/or contractors. Training is targeted toward financial aid
administrators, fiscal officers, chief executive officers, high school
counselors, and staff of state aid agencies, loan guaranty agencies,
and lending institutions. The branch develops The Blue Book:
Accounting, Recordkeeping, and Reporting by Postsecondary
Educational Institutions For Federally Funded Student Financial Aid
Programs. The Blue Book is a reference manual for schools. It
covers in detail the accounting, fiscal recordkeeping, and reporting
requirements of the SFA programs.

[[Program Information Branch (708-9152)]]
The Program Information Branch distributes information about
the SFA programs through publications, public media announcements,
attendance and technical assistance at meetings and conferences, and
distribution of brochures and technical publications to schools, state
agencies, student organizations, and other groups interested in student
financial aid. This branch also handles the printing and distribution of
SFA forms and publications. It contains the Information and
Development Sections.

The Information Section (708-8155) is responsible for responding to
telephone inquiries from the general public, Congressional offices,
and the education community concerning the SFA programs. You
may call either this section or the Federal Student Aid Information
Center (FSAIC) if you have questions on the SFA programs. The
FSAIC's toll-free telephone number is 1-800-4-FED-AID
(1-800/433-3243). This section exhibits and disseminates SFA
materials at national and regional education conferences. It
maintains computerized mailing lists and tracking systems for SFA
materials and also maintains the OPE Electronic Bulletin Board
(OPEnet). OPEnet disseminates OPE policy documents
electronically to a user's PC or mainframe terminal. These
documents include regulations, "Dear Colleague" letters, Qs
and As, calendars, and news bulletins. This electronic
dissemination maximizes the availability of, and access to, policy
information.

The Development Section (708-9152) develops SFA publications
for a variety of audiences: financial aid administrators, high school
counselors, parents, students, financial aid recipients, and the
general public. These publications include the FSFA Handbook,
Expected Family Contribution (EFC) Formulas,Verification Guide,
and The Student Guide. This section develops informational
materials for specialized audiences (for example, handicapped,
Spanish-speaking) and writes the standard paragraphs and form
letters used in responding to general correspondence concerning the
SFA programs.


ANALYSIS AND FORECASTING DIVISION (708-4777)

This division collects information on the programs to analyze progress
made in meeting program objectives and to project the fiscal impact of
legislative and regulatory changes (for example, the consequences of
the need analysis formula in the Higher Education Amendments of
1992). This division contains three branches: the Loans Branch, the
Grants Branch, and the Forecasting and Special Studies Branch.

There are common program analysis functions performed by each
branch. The major functions include--

- analyzing program trends regarding funding patterns, school
participation, characteristics of school recipients, and variations in
trends between funding years;

- analyzing program trends regarding application patterns, changes in
those patterns between application years, and changes of eligibility
rates;

- evaluating enrollment trends at postsecondary schools, as well as
administrative practices at those schools, and other factors such as
cost of education; and

- preparing responses to specific program data requests.

[[Loans Branch (078-4777)]]
The Loans Branch recommends and develops plans for
evaluation studies on lender activity and on default rates. It develops the
Federal Family Education Loan Data Book. This publication (formerly the
Guaranteed Student Loan Data Book) provides historical data on
guaranteed student loan activity, such as loan volume, lender portfolio,
and default and collection activity.

[[Grants Branch (708-8963)]]
The Grants Branch develops the Federal Pell Grant End of Year
Report. It also develops the criteria used to select student aid
applications for verification and identifies patterns of incorrect
applicant information and determines if these patterns indicate
possible school abuse.

[[Forecasting and Special Studies Branch (708-4777)]]
The Forecasting and Special Studies Branch develops budget
models and makes budgetary projections for the SFA programs. It conducts
studies to assess the quality and effectiveness of program delivery
and is responsible for developing corrective actions to improve the
administration and management of the SFA programs. It also
develops the Federal Pell Grant Payment and Disbursement
Schedules.

[[The organizational chart "Accounting and Financial Management Service"
on page 1-13 is currently unavailable for viewing. Please reference your paper
document for additional information.]]


[[Service responsibilities]]
THE ACCOUNTING AND FINANCIAL MANAGEMENT
SERVICE (708-4664) is responsible for the accounting and financial
management activities related to the operation of the Student
Financial Assistance Programs (SFAP). The service develops
procedures for delivering and accounting for program funds. The
service contains two divisions: Institutional Financial Management
Division and Loan Financial Management Division. In addition, the
Service contains the Financial Improvement and Reporting Staff and
the Financial Systems Interface and Requirements Staff.

INSTITUTIONAL FINANCIAL MANAGEMENT DIVISION
(708-9807)

This division contains three branches: Institutional Services, Federal
Pell Grant Financial Operations, and Campus-Based Financial
Operations.

[[Institutional Services Branch (708-9807)]]
The Institutional Services Branch provides technical assistance to
institutions regarding funding levels, expenditure reporting, and other
program administration requirements for the Federal Pell Grant and
Campus-Based programs. It prepares financial obligation documents
and institutional payment letters. It analyzes reported expenditures
and adjustments from audits and program reviews to reduce
allocations, close accounts, and reallocate funds.

[[Federal Pell Grant Financial Operations Branch (708-9807)]]
The Federal Pell Grant Financial Operations Branch obligates
Federal Pell Grant funds to schools, manages these funds, reconciles
accounts, and closes prior year accounts. The branch develops requirements
for initial authorizations, and reviews authorization adjustments. If you
have questions about information reported on Payment Vouchers,
Institutional Payment Summaries (IPS), IPS Batch Reports, Student
Payment Summaries, or the Pell Grant Statement of Account, you
should contact your Financial Management Specialist assigned to
your school's region. A list of these representatives, along with each
representative's telephone number is included on page 34 of this
chapter.

[[Campus-Based Financial Operations Branch (708-9807)]]
The Campus-Based Financial Operations Branch develops
procedures for obligating and controlling Federal Supplemental
Educational Opportunity Grant, Federal Work-Study, and Federal
Perkins Loan funds (these programs are called the Campus-Based
programs). The branch develops the FISAP (Application to
Participate/Fiscal Operations Report). Schools apply for
funds from the Campus-Based programs by completing the FISAP.
The FISAP contains a section called the Fiscal Operations Report for
schools to report expenditures against previous-year Campus-Based
fund allocations. If you have questions regarding your school's
funding levels, you should call your designated Campus-Based State
Representative. A list of these representatives, along with each
representative's telephone number is included on page 35 of this
chapter.

The branch also determines and publishes institutional default rate
data and approves Expanded Lending Option (ELO) requests for the
Federal Perkins Loan Program.

LOAN FINANCIAL MANAGEMENT DIVISION (708-9776)

This division covers the operation of the Federal Family Education
Loan (FFEL) Program and the William D. Ford Federal Direct Loan
Program Direct Loan Program). This division is divided into three
branches: Direct Loan Program, Federal Family Education Loan
Program, and Financial Reporting.

[[Direct Loan Program Branch (708-9776)]]
The Direct Loan Program Branch is responsible for accounting
activities related to loan origination, loan defaults, origination fees,
administrative cost allowances, and loan collections for the Direct
Loan Program. The branch ensures that funds are provided
to schools on a timely basis, and it monitors and controls funding
levels in the Payment Management System.

[[FFEL Program Branch (708-9776)]]
The Federal Family Education Loan (FFEL) Program Branch
processes and pays lender interest and special allowance billings
and guaranty agency reinsurance claims for defaulted loans and
other program expenses. The branch develops forms used in these
payment processes. It also tracks the processing of these payment
processes to ensure their timely processing.

The branch maintains the lender and guaranty agency participation
systems for the FFEL Program. This includes maintaining the
universe files for participating lenders and agencies; assigning serial
numbers for new entities; taking corrective actions for changes of
ownership or name and address; and providing information to regional
offices, guaranty agencies, or other appropriate users.

[[Financial Reporting Branch (708-9776)]]
The Financial Reporting Branch is responsible for controlling
obligations and preparing financial reports for lenders and guaranty
agencies consistent with Departmental requirements. The branch
develops financial statements for the FFEL Program and the Direct
Loan Program. The branch prepares monthly reports used in budget
reconciliation and forecasting.

[[Financial Improvement & Fiancial Systems Staffs (708-4664)]]
Within the Accounting and Financial Management Service are two
staffs: the Financial Improvement and Reporting Staff (FIRS) and the
Financial Systems Interface and Requirements Staff (FSIRS). FIRS
initiates projects and activities to improve service operations. FSIRS
ensures that all SFA program systems comply with financial and
accounting requirements mandated by Congress, Treasury, and OMB.
You can contact either staff at the main Accounting and Financial
Management Service number (708-4664).

[[The organizational chart "Program Systems Service" on page 1-17
is currently unavailable for viewing. Please reference your paper
document for additional information.]]

[[Service responsibilities]]
THE PROGRAM SYSTEMS SERVICE (708-7701) administers
contracts that provide automated delivery of program funds, as well as
storage and management of those funds. These contracts include the
services provided under the General Electric Support (GES) system
(Electronic Data Exchange [EDE], Electronic Bulletin Board
[OPEnet], and Query, which allows on-line access to GES users. The
service contains the Technology Planning and Analysis Staff.
This staff develops the computer information systems, the automated
data processing systems, and the data element standards used in SFA
student aid delivery process. The service has six divisions:
Application and Pell Processing Systems, Campus-Based Programs
Systems, Federal Family Education Loan Systems, Federal
Direct Student Loan Systems, National Student Loan Data System,
and Postsecondary Education Participant's System.

APPLICATION AND PELL PROCESSING SYSTEMS DIVISION
(708-9988)

This division manages the SFA application and data processing
activities and develops and maintains the Pell Grant data systems. It
develops the Free Application for Federal Student Aid (FAFSA) and
the Student Aid Report. The division also monitors the Multiple Data
Entry (MDE) and Central Processing System (CPS) contracts. In
addition, it develops the Electronic Need Analysis system (ENAS) and
distributes the software and the user's guide to the student financial
aid community. If you have questions about ENAS, you should contact
National Computer Systems (NCS) User Services at 1 (319) 339-6642.

[[Applicant data service]]
This division administers the applicant data service, which provides
information about applicants from the federal student aid processing
system to schools and state agencies. This includes data from the
National Student Loan Data System. If you have questions about, or
concerning participation in, the applicant data service, you should
contact the Applicant Data Service Specialist, Federal Student Aid
Programs at 1 (319) 339-6444.

[[Pell Grant school and student data bases]]
Pell Grant school and student data bases are under this division. The
division reviews and evaluates system processing activities to ensure
compliance with standards or to correct deficiencies. It evaluates
operational systems' effectiveness and efficiency. In addition,
procedures are developed for Pell Grant payment processing and
recommendations are made for changes to correct problems identified
by recipients. The records retentions systems for student applications
and program fiscal documents, both hard copy and microfilm, and
access services for these records, are maintained within this division.

[[Institutional Access System]]
Finally, the division contains a new customer service initiative called
the Institutional Access System (IAS). The IAS is an interactive voice
response system, which allows direct access by the postsecondary
financial aid community to Federal Pell Grant Program data. You can
get financial and processing status information 24 hours a day seven
days a week by contacting the IAS toll-free line at 1-800/ 4-P-Grant.
You can also request documents, such as the Student Payment
Summary by calling this number.

CAMPUS-BASED PROGRAMS SYSTEMS DIVISION (708-6726)

This division develops and maintains the data systems for the
campus-based programs. It develops procedural manuals for
campus-based operational systems. It is responsible for the
Electronic FISAP (electronic application for Campus-Based funds
rather than completing the paper FISAP. In addition, the division is
responsible for DRAP (Default Reduction Assistance Project). DRAP
assists schools in returning borrowers with defaulted Perkins Loans to
repayment. Under DRAP, participating schools can request the
Department to send any one of a series of three letters to borrowers
who have defaulted on their Perkins Loans or NDSLs. (The
series includes a warning letter, 48-hour-notice letter, and a final
demand letter.)

[[Perkins deferment and cancellation]]
This division provides assistance and advice to schools, billing
services, and borrowers on Perkins Loan deferment and cancellation
provisions, extension of the borrower's repayment schedule, and
promissory note provisions. It provides assistance to schools
regarding due diligence procedures and default reduction. This branch
prepares the annual listing of elementary and secondary schools with a
high concentration of students from low-income families. National
Defense/Direct and Perkins Loan borrowers who teach at these
schools may have part or all of their loans cancelled.

This division maintains a file of each school that has a cash balance in
its Perkins Loan fund far in excess of the school's need. It also
maintains a file of schools that have closed or have terminated
their participation in the Perkins Loan Program. This division reviews
and approves requests for partial waivers of the school share of the
total FWS earned compensation and/or SEOG awards. (Each award
year, the Secretary authorizes certain FWS and SEOG awards to be
made entirely from the federal portion of the school's program funds.)

FEDERAL FAMILY EDUCATION LOAN SYSTEMS DIVISION
(708-8760)

This division develops and maintains the data systems for the FFEL
Programs. It develops and implements improvements to the FFEL
programs computer system and monitors the day-to-day processing
and maintenance of the FFEL programs computer system. The
division also monitors the contractor responsible for operating the
FFEL programs computer system.

FEDERAL DIRECT STUDENT LOAN SYSTEMS DIVISION
(260-1933)

This division develops and maintains the data systems for the William
D. Ford Direct Loan Program (Direct Loan Program). It develops and
implements improvements to the Direct Loan Program computer
system and monitors the day-to-day processing and maintenance of
the Direct Loan Program computer system.

NATIONAL STUDENT LOAN DATA SYSTEM DIVISION
(708-8125)

This division operates the system that contains data on all Department
federal student loans and selected information on other student
financial aid. This division provides a single reservoir of data for use
in evaluating trends in the SFA programs. Data in the National
Student Loan Data System will be provided by guaranty agencies,
schools, other Department computer systems, and, indirectly, by
lenders. The National Student Loan Data System will be used to track
the status of aid recipients, determine applicant eligibility, and provide
data for budget formulation.

POSTSECONDARY EDUCATION PARTICIPANTS SYSTEM
DIVISION (708-6266)

This division operates the computer system used to support SFAP's
responsibility for determining the eligibility of schools to participate in
the SFA programs. It also operates the computer system used to
monitor the participation of lenders, guaranty agencies, and
accrediting bodies and other organizations.

[[The organizational chart "Institutional Participation and Oversight Service"
on page 1-21 is currently unavailable for viewing. Please reference your paper
document for additional information.]]

[[Service responsibilities]]
THE INSTITUTIONAL PARTICIPATION AND OVERSIGHT
SERVICE (708-6008) is responsible for monitoring schools' and
financial institutions' administration of SFA programs through audit
reviews and school, lender, and state agency reviews. It is also
responsible for administering the fine, limitation, suspension, and
termination authority. In addition, the service resolves issues that
arise when schools close, declare bankruptcy, or are otherwise in
financial or administrative trouble. The service administers the State
Postsecondary Review Program and works cooperatively with both
states and accrediting agencies as part of the Program Integrity
Triad established by Congress. The three entities that make up the
triad are accrediting agencies, states, and the federal government.
These entities' shared responsibility is to ensure that participation in
the SFA programs is open only to those schools that provide students
with quality education or training worth the time, energy, and money
those students invest in it.

[[Performance & Accountability Improvement Staff]]
The service also contains the Performance and Accountability
Improvement Staff. This staff administers the Quality Assurance
(QA) Program and is responsible for developing expanded
applications of performance-based management models in the SFA
programs. The QA Program is a successful complement to OPE's
oversight strategy. It helps OPE promote and achieve better
management of SFA dollars, and higher quality services to students.
Within parameters, aid administrators in the QA Program develop
procedures for achieving award accuracy, measuring the effectiveness
of their procedures, and designing quality improvements to address
weaknesses. Accuracy in financial awards has increased because QA
Program institutions focus on identifying weaknesses and ways to
improve the delivery of student aid. As a result, students and
institutions benefit from this proactive approach to quality
improvement in financial aid.

The service contains five divisions: Institutional Participation,
Accreditation and State Liaison, Institutional Monitoring, Compliance
and Enforcement, and Regional Operations.

INSTITUTIONAL PARTICIPATION DIVISION (708-4906)

This division is responsible for determining that institutions meet the
statutory requirements of eligibility and the established standards of
financial responsibility and administrative capability in order to begin
and continue participation in the SFA programs. As required by the
Higher Education Amendments of 1992, the division is also
responsible for conducting annual recertification of currently
participating institutions. The division is responsible for the
regulations that govern an institution's eligibility and certification (34
CFR Part 600 and 34 CFR Part 668). The division is organized into
three branches: Eligibility and Administrative Analysis, Financial
Analysis, and Application Management. The division is further
organized into teams, comprising the ten regions and special functions
such as changes in ownership and foreign schools.

[[Eligibility and Administrative Analysis Branch (708-4906)]]
The Eligibility and Administrative Analysis Branch analyzes each
school's application (including foreign schools) to determine whether
the school meets the institutional eligibility requirements as stipulated in 34
CFR Part 600 and the requirements for administrative capability under 34
CFR Part 668.16. The branch routinely confers with accrediting agencies,
state authorizing agencies, and guaranty agencies. It also analyzes institutional
audit and program review findings. The branch also develops procedures and
guidelines for monitoring schools' withdrawal and default rates and other
factors of administrative capability.

[[Financial Analysis Branch (708-6485)]]
The Financial Analysis Branch analyzes a school's financial
viability as outlined in Chapter Three of this Handbook. As a result of this
analysis, a determination is made regarding the compliance with the standards
of financial responsibility as set forth in 34 CFR Part 668.15.

The branch also establishes procedures and guidelines that will be
used to monitor a participating school's financial responsibility. As a
reminder, all participating schools must submit to the Secretary, as
requested on an annual basis, an audited financial statement.

[[Application Management Branch (708-6485)]]
The Application Management Branch (708-6485) maintains a log of incoming
documents, such as the Application for Institutional Participation (ED
Form E40 34P). It also reviews the school's application to determine
that all required information has been submitted.

[[Program Participation Agreements]]
This branch maintains each school's Program Participation Agreement
and also maintains Approval Notices that define eligibility and
certification requirements for both domestic and foreign schools
participating in the SFA programs. The branch verifies, as a condition
for the school to receive funds under any SFA program, that the school
is in compliance with the Drug Prevention Program Certification
requirement under the Drug-Free Schools and Communities Act
Amendments of 1989 (34 CFR Part 86).

(Change of Ownership/foreign schools]]
Listed below are the Institutional Participation Division teams, along
with each team's telephone number, for the ten regions and for
changes in ownership and foreign schools. The area code for
each telephone number is 202.

Team Telephone Number

Team 1 (Region IV) 205-3887

Team 2 (Region V) 205-3630

Team 3 (Regions I & III) 205-3772

Team 4 (Regions II & VII) 205-3720

Team 5 (Regions VI & VIII) 205-6303

Team 6 (Regions IX & X) 205-3851

Team 7 (Foreign Schools) 205-3720

Team 8 (Changes in ownership) 205-3851)



ACCREDITATION AND STATE LIAISON DIVISION (708-7417)

This division develops criteria that are used in recognizing state
agencies and national and regional accrediting associations as reliable
authorities concerning the quality of education and training offered by
postsecondary schools or programs within the agency's or
association's scope of operation. The division evaluates petitions for
initial recognition, renewal of recognition, and expanded scope of
recognition by accrediting bodies and state approval agencies. The
division also administers the State Postsecondary Review Program
and works cooperatively with states to strengthen and advance the
role of states in granting authorization and licensure to postsecondary
educational institutions. This division has two branches: Accrediting
Agency Evaluation and State Liaison.

Procedures and criteria for the recognition of accrediting agencies and
state approval agencies have been codified under 34 CFR Parts 602
and 603, respectively. Procedures for the administration of the State
Postsecondary Review Program have been codified under 34 CFR
Part 667.

[[Accrediting Agency Evaluation Branch (708-7417)]]
The Accrediting Agency Evaluation Branch administers the
process by which accrediting agencies and State approval agencies for public
postsecondary vocational education and nurse education obtain initial
and continued recognition by the Department. This branch works with
the National Advisory Committee on Institutional Quality and
Integrity (NACIQI) in developing the Department's procedures and
recognition criteria. NACIQI advises the Secretary of Education
with regard to the recognition of accrediting agencies and on matters
of institutional eligibility. The Secretary is required by statute to
publish a list of nationally recognized accrediting agencies
that are determined to be reliable authorities as to the quality of
education and training offered by the schools and programs these
agencies accredit. This requirement originated with Public Law
82-550, the Korean G.I. Bill, which was passed in 1952.

[[State Liaison Branch (708-7417)]]
The State Liaison Branch administers the State Postsecondary
Review Program in which State Postsecondary Review Entities
(SPREs) conduct or coordinate reviews of institutions referred to
the state by the Department of Education in accordance with criteria
set forth in the Higher Education Amendments of 1992. This branch
reviews state review standards, which have been developed by the
SPRE in consultation with the institutions located in the state. It also
reviews state plans and budgets submitted by each SPRE in order to
receive reimbursement for activities performed under this program.
Further, the branch provides guidance and technical assistance to
SPREs regarding the conduct, coordination, and resolution of reviews
conducted under the State Postsecondary Review Program. The State
Liaison Branch also serves as the liaison between the Department and
State Departments of Education and State licensing agencies. For
more information on this program, see Chapter Three of the
Handbook.

INSTITUTIONAL MONITORING DIVISION (708-8197)

This division monitors institutional compliance with the student
financial aid regulations. It develops standards and procedures for
on-site compliance reviews of schools performed by regional offices
and guaranty agencies. This division contains three branches: Audit
Resolution, Institutional Review, and Special Initiatives.

[[Audit Resolution Branch (708-8208)]]
The Audit Resolution Branch analyzes school audits prepared by
independent CPAs and state auditors to ensure that the school's
administration of the SFA programs is in compliance with Department
policies and regulations. When necessary, this branch will interpret
program regulations and issue letters resolving the audits and
determining liabilities.

This branch also makes recommendations and provides documentation
of audit findings to the Office of the General Counsel (OGC), Office of
Inspector General OIG, and the Department of Justice in support of
investigations for civil lawsuits. The branch consults with these offices
concerning the status of particular schools under investigation or
prosecution. Finally, the branch refers schools with serious
deficiencies disclosed by audits for administrative action or program
reviews.

[[Institutional Review Branch (708-8701)]]
The Institutional Review Branch develops standards and
procedures for performing program reviews of schools participating in the
SFA programs. It develops the Program Review Guide, which is used as a
reference in conducting reviews. The branch collects and analyzes
data from program reviews. It also makes recommendations for
legislative and regulatory changes based on analysis of program
review results. The branch makes recommendations and provides
documentation for program review findings (including liability
assessments) to the Compliance and Enforcement Division (CED),
OGC, and OIG, to support further action against problem
schools. (CED administers the Department's fine, limitation,
suspension, termination, and emergency action procedures). In
addition, this branch develops procedures for pre-certification
reviews in conjunction with the Institutional Participation Division.

[[Special Initiatives Branch (708-6048)]]
The Special Initiatives Branch includes the Closed School
Section (401- 3294), which identifies closed schools and maintains the official
list of closed schools. This list is used to help determine a borrower's
eligibility for loan discharge based upon the school's closing date. The
section develops policies and procedures for protecting the interests of
students and the federal government when schools close abruptly. It
also identifies school teach-out and tuition refund programs with state
licensing agencies and accrediting bodies.

COMPLIANCE AND ENFORCEMENT DIVISION (708-8197)

This division administers the Department's authority to fine, limit,
suspend, terminate, and take emergency action against schools,
lenders, and third party servicers participating in the SFA
programs. This division also coordinates the Department's funding
control actions by transferring schools from one type of payment
system to another (for example, transferring a school from the
Advance Funding Payment System to the Reimbursement System of
Payment). This division initiates government-wide non-procurement
debarment and suspension actions against school's, lenders, and
guaranty agencies, or individuals acting as a principal of a school, a
lender, or a guaranty agency, in connection with their noncompliance
with Title IV, HEA requirements, including criminal convictions. This
division also disqualifies schools from participating in the FFEL
programs nationwide after a guaranty agency has terminated a
school from its loan programs. It reviews guaranty agency procedures
for taking administrative action to ensure consistency with statutes
and Departmental regulations.

REGIONAL OPERATIONS DIVISION (708-9192)

This division implements central office functions in the field through
the regional offices, primarily conducting program reviews of
participating schools in accordance with program review policies
and procedures established by the Institutional Participation and
Oversight Service. It conducts reviews of lenders and guaranty
agencies in accordance with review policies and procedures
established by the Guarantor and Lender Oversight Staff. This
division also helps the financial aid community implement the SFA
programs, and it provides training programs for the financial aid
community in cooperation with the Training and Program Information
Division.

The Director of Regional Operations and the immediate staff
members are located in the central office in Washington, D.C. A
regional director in each of the ten regional offices implements the
division's functions, such as--

- tracking program reviews submitted by the branches to ensure
timely resolution of reviews;

- monitoring regional performance in specific functional areas to
assess whether the regions meet quality and quantity goals; and

- implementing the training function (which includes planning and
ensuring the necessary regional training of schools, lenders,
guaranty agencies, and state and regional associations with special
needs. It also ensures necessary training for schools with special
needs (for example, proprietary schools).

The training function is implemented by training officers in each region in
accordance with national training policy and procedures as
developed by the Training and Program Information Division.

The division contains the Institutional Review Branch (IRB) and the
Guarantor and Lender Review Branch (GLRB). There is an IRB in
each of the ten regional offices and a GLRB located in six of the
regional offices. Telephone numbers for the individual branches are
listed with the regional office addresses on pages 36 and 37 of this
chapter.

[[Institutional Review Branches]]
Each region's IRB conducts program reviews of student financial
assistance programs in schools and initiates corrective actions
required to ensure that SFA funds are being properly used. The
IRBs recommend settlement terms for liabilities identified in program
reviews and also recommend reimbursement method of funding,
monitoring of funds, and fine, limitation, suspension, or termination
actions. They facilitate the accountability of SFA funds at schools that
have closed or are ceasing participation in SFA programs, negotiate
transfer of Perkins Loan funds and promissory notes from one school
to another or to the Department of Education, and approve changes in
institutional Perkins Loan level of lending.

The IRBs also provide necessary training, as coordinated by the
Training Officers, for schools and other financial aid groups in the
region, and provide technical assistance to the financial aid
community.

[[Guarantor and Lender Review Branches]]
The Guarantor and Lender Review Branches (GLRBs) perform
reviews of participating lenders, guaranty agencies, and related
agencies and organizations (including secondary markets and
servicers) in their own regions and in their other designated region(s).
Four of the regional offices (Regions lll, Vll, Vlll, and X) do not have
GLRBs. In these regions, the lender and guaranty agency reviews
will be done by one of the GLRBs in the other six regions. Region ll
handles the reviews for Region lll; Region Vl handles the reviews for
Region Vll; and Region lX handles the reviews for Regions Vlll and X.

In conducting these reviews, the GLRBs initiate corrective actions
required to ensure that SFA loan funds are being properly used and
programs are properly administered. The GLRBs also monitor
guaranty agency staff reviews of schools and lenders to ensure
compliance with federal requirements and recommend settlement
terms for liabilities identified in these reviews.

The GLRBs provide training, as coordinated by the Training Officers,
for lenders, guaranty agencies, and other financial aid groups in the
designated regions; they also provide technical assistance and service
to lenders and guaranty agencies.

Page 36 contains a list of the street addresses and telephone numbers
for the IRBs. A similar list for the GLRBs appears on page 37. Both
branch addresses have common elements as shown in the box below.


[[Department regional addresses]]
For inquiries to the IRBs, the first part of the address is-

Institutional Review Branch
Student Financial Assistance Programs
U.S. Department of Education, Region xx

For inquiries to the GLRBs, the first part of the address is-

Guarantor and Lender Review Branch
Student Financial Assistance Programs
U.S. Department of Education, Region xx


[[The organizational chart "Debt Collection Service" on page 1-29 is currently
unavailable for viewing. Please reference your paper document for additional
information.]]


THE DEBT COLLECTION SERVICE (708-4764) is responsible for
the recovery of all defaulted student loans and overpayments that
have been disbursed under the Title IV student financial assistance
programs, and that have been subsequently assigned to the
Department after exhaustion of all collection methods available to the
lender, guarantor, or school. Collection of all loans not so assigned to
the Department continues to be the responsibility of the lender, which
may be a school, bank, savings and loan association, or guaranty
agency, depending on the type of loan. The service contains one
division and three collection centers.

STUDENT RECEIVABLES DIVISION (708-4766)

This division coordinates the programs used in collecting student loans
held by the Department. These programs include the Federal Income
Tax Refund Offset Program, the Federal Employee Salary Offset
Program and the Administrative Wage Garnishment Program, as well
as the program for national credit bureau notification. The division
provides technical assistance for the operation of these programs.
The division also establishes the policies and procedures to be
followed by collection personnel that are either employed or
contracted by the Department.

REGIONAL COLLECTION CENTERS

These centers are located in Atlanta (Region IV), Chicago (Region V),
and San Francisco (Region IX). Each collection center executes the
various collection programs and monitors and coordinates the
procedures of the contracted collection personnel within its region.
Collection agents employed by the Department operate from within
these regional collection centers. These centers also serve to
research and resolve disputes raised by borrowers against repayment,
including claims of bankruptcy, disability, school closures, and loan
mismanagement by the original lender.


[[The charts "Automated Data Exchange Specialists," "Pell
Grant Program Financial Management Specialists, Institutional
Financial Management Division," "Campus Based Programs, State
Representatives, Institutional Financial Management Division," and
Department of Education Regional address and telephone numbers
followed by a map of Regions I-X from pages 1-33 to 1-38 are
currently unavailable for viewing. Please reference your paper document
for additional information.]]

*2* The Federal SLS Program was repealed beginning with the
1994-95 award year.