Participating in FSA Systems

All schools that participate in the Federal Student Aid programs must be able to exchange student and other data through the Department’s electronic systems. This chapter discusses the major FSA systems that are used to track the student’s eligibility, payments, and cumulative aid received, and to adjust school authorizations.

There are many different kinds of data exchanges between schools and FSA systems, and virtually all of them are conducted online. The key student records that your school is required to share with the Department are

Individual student records are typically combined into “batch files” for convenience. To exchange these batch files with FSA systems, you will need to enroll for an electronic mailbox or “Destination Point” at the Student Aid Internet Gateway (SAIG). Batch files make it easy to submit data for many students at one time because they can usually be generated from databases kept at your school.

Some schools use local PC or mainframe software to view and correct student records such as the ISIR and COD common record.

Schools may also view and edit these records directly on the Web. Therefore, you’ll also need to enroll for access to the CPS, COD, and NSLDS websites, as described later in this chapter. Using a website rather than submitting a batch file may be practical if you only need to report for a small number of students, for instance, reporting recent transfer students to NSLDS. We’ll discuss some of your system and software options in the next chapter.

To receive FSA funds your school will also need to enroll in the Department’s G5 payment system. Drawing funds from G5 and disbursing it to students will usually be the responsibility of your business or fiscal office.

Schools that participate in the Campus-Based programs can access the eCampus-Based system through COD to report prior-year data and to apply for funds for the coming year.

If your school has applied to participate in the Direct Loan program and has been approved (as indicated on the ECAR), you must send an email request to the COD School Relations Team to begin actively participating in the Direct Loan program (see below).

If you are enrolling an additional location for its own DL code separate from the main campus DL code, you must first obtain a unique enitity ID (UEI) number for the additional location. You must also ensure that the location and its (UEI) number have been reported through the E-App and that your school has received ED approval for the location. (If you do not have a (UEI) for a location, you can visit the SAM website to have a number assigned.)

If everything is in order, your school will receive a welcome letter that will include a Direct Loan Code and will explain the next steps in the process.

Schools must use electronic processes to submit and receive school performance data with the Department, such as the Cohort Default Rate (eCDR) process.

Also note that your school is required to submit audits and financial information through the eZ-Audit website; your school enrolled in this site as part of its initial application for eligibility.

Finally, schools need to use other Department websites to report information that is not directly related to the FSA programs:

By enrolling to participate in the Student Aid Internet Gateway (SAIG), your school can begin to exchange student data electronically with FSA systems through one or more SAIG mailboxes (destination points). Your SAIG enrollment also controls access to several FSA websites and systems, such as FAA Access to CPS Online (including CPS batch services), NSLDS Professional Access Online, NSLDS batch services (enrollment rosters) and COD. There is a single login for these systems that uses one FSA User ID and password. In addition, the Access and Identity Management System (AIMS) utilizes tools and technologies that ensure secure access of FSA systems. Users will be asked to provide identity authentication such as the use of soft tokens, in order to access FSA systems.

Your school determines which services it needs and which staff to enroll as destination point administrators (DPAs). Your school must designate a primary DPA. This is the only person within the organization who may enroll other staff for additional SAIG destination points (mailboxes) and associated services.

The primary DPA can use the SAIG Enrollment website to add or remove users, edit information about the entity, or change the entity’s enrollment in various SAIG services. The primary DPA may choose to enroll additional DPAs with individual mailboxes for each service or function or combine services and functions within a single SAIG mailbox.

Initial enrollment is completed online. To sign up for an SAIG mailbox, go to the SAIG Enrollment homepage and select “Initial Enrollment for Services.” You will need the following information:

After completing the online enrollment process, you will be instructed to print, complete and sign the enrollment signature documents. Be sure that:

Mail the completed documents to CPS/SAIG (see address below).

CPS/SAIG customer service will contact your school with the processed enrollment information and TG number for that mailbox (destination point). The DPA will also receive the processed enrollment information by mail or email. DPAs must contact CPS/SAIG customer service to activate the TG number for that mailbox.

SAIG user statements must be kept on file at your school.

To add a new destination point (SAIG electronic mailbox with assigned TG number) or designate a new individual as DPA, you will need to submit a new SAIG enrollment form. Signature pages are also required when changing authentication information (SSN, date of birth, password), enrolling for eCDR services, and adding or changing services if the destination type is listed as “Third-Party Servicer.”

You may use the SAIG website to modify existing services for a destination point, change demographic information, delete a destination point, or enroll for a test mailbox identification number. (The SAIG website can also be used to update enrollment information for the CPS, COD, and NSLDS websites.)

The FAA Access to CPS Online website enables you to view and correct aid application information for students who are considering attending your school. (FAA stands for “financial aid administrator.”) You must use the Identity Verification Results feature to provide the required results of verification of students who are selected to verify their identity and high school completion status (Verification Tracking Group V4 or V5).

In addition, you can use this site to enter FAFSA or renewal FAFSA information for a student; View a student’s Student Aid Report (SAR); Compare two ISIR transactions for the same students using ISIR Compare; Submit a signature flag for an application in a signature hold status using the Standalone FAA Signature feature; and request ISIR data from CPS.

The Central Processing System (CPS) is used to:

The student’s application information is sent to your school in the form of an Institutional Student Information Record (ISIR), which includes comments (resulting from CPS review of the application information) and the student’s financial aid history from NSLDS. This electronic document serves as the basis for any later corrections or adjustments.

Your school must get an SAIG mailbox as described in the previous section. After that is done, the DPA assigned to the mailbox that is used to send and receive FAFSA and ISIR correction data will automatically have access to the FAA Access to CPS Online website, and, using the TG number for the mailbox, he or she can set up access for additional users from the SAIG enrollment site.

The DPA—who, as owner of the TG number, always has full rights—can enroll new users with the same access rights or can choose specific processing year cycles and the level of access (read or write). Read access means that the user can view but not change data, while write access enables the user to view and change the data. If your school has multiple locations with different federal school codes, the DPA can limit which campuses the user can access in order to view, add, or update records.

The DPA must complete and print an FAA user statement for each employee to be granted CPS Web access, and your school must keep a copy of the statement in its files. To add more users, the DPA must return to the “Add a new FAA User” screen and repeat this process.

Newly enrolled users will receive an email message with a link to the online enrollment system. During the enrollment process the user will select and respond to several challenge questions and establish a password. Once enrollment is complete, the user will be emailed his or her FSA User ID.

A DPA can also use the SAIG Enrollment site to make changes to information and access rights for existing users. Select the “Enroll for FAA Online Access” icon on the first page and provide the TG number for the mailbox used to send and receive FAFSA and ISIR correction data. By selecting the “View/Change an Existing FAA User or User Rights” tab, you can begin to make the changes to your SAIG enrollment form. Once you have updated the record, you can select additional users to change/update if needed.

The Common Origination & Disbursement System (COD) enables your school to set disbursement amounts and dates for students who are eligible to receive FSA grants (Pell and TEACH) and Direct Loans.

You may send new and updated student records to the COD system by sending batch files through your SAIG mailbox, or create or update records on the COD website.

You can use the COD website to view award/disbursement records (for FSA grants and Direct Loans) that your school has transmitted to the COD Processor, as well as other documents and reports processed by COD.

The primary DPA enrolls in COD during the SAIG sign-up and creates new user profiles through the SAIG Enrollment site to give access to other users at your school. The primary DPA can set different user levels for COD website users and is the only one who can add and update processing options, create new users, update user profiles, lock/unlock users, reset user passwords, and add, edit, and delete school messages.

The primary DPA can also update the Pell Grant officer and Direct Loan officer contact information/mailing address(es). However, updates to the school name, address (including any additional locations), and school officials’ (president, chief financial officer, and financial aid administrator) information must be made through an update to the E-App,

The National Student Loan Data System (NSLDS) is used to track the enrollment status of student loan borrowers. This information is shared with servicers for purposes of loan deferment. (A student who is attending an eligible postsecondary school at least half-time is usually eligible for in-school deferment). In addition, NSLDS is also used to track the enrollment status of TEACH Grant recipients (for purpose of service obligation).

Schools participating in the FSA programs must use NSLDS to track the grant and loan amounts received by a transfer student at other schools to ensure that the student does not exceed annual or aggregate award limits.

NSLDS is a comprehensive database of students and parents who have received FSA grants or loans. The financial aid history and enrollment status of FSA recipients is reported to NSLDS by COD, schools, lenders, loan servicers, and guaranty agencies. All schools participating in FSA programs must have at least one destination point for NSLDS services that includes online enrollment reporting.

The Central Processing System (for the FAFSA) retrieves the student’s financial aid history from NSLDS and adds it to the ISIR that is sent to the school so that a financial aid administrator can determine if the student has received aid at other schools that must be counted towards the annual or aggregate award maximums.

Note that your school is also required to send identifying information for transfer students to NSLDS so that the NSLDS system can notify schools of aid payments that had not been recorded by NSLDS at the time of the ISIR match. In some cases, you may also need to use the NSLDS website to check the student’s records to resolve conflicting information.

A school must report the enrollment status for all FSA borrowers at the school, even if the student’s FSA loans were awarded at another school. Enrollment status reporting is very important because it ensures that the student qualifies for in-school deferment on loan repayment. Therefore, schools are required to complete NSLDS Enrollment Reporting regularly. Many schools arrange for the enrollment reporting function to be managed by a third party.

To receive NSLDS batch files through SAIG, a DPA must be enrolled in NSLDS services using the SAIG enrollment site. The primary DPA automatically has access to “Default Services,” which includes transfer student monitoring, enrollment reporting, and Perkins Loan data. A DPA may also select enrollment access and/or overpayment update to enter information.

The primary DPA can use the SAIG enrollment site to enroll staff to submit and receive NSLDS batch files through the same SAIG mailbox. But only the DPA for that mailbox will be able to use the NSLDS Professional Access website. As explained below, other DPAs may access that website with their own SAIG mailbox (with assigned TG Number).

The primary DPA enrolls in NSLDS Professional Access through the SAIG enrollment process. Because, as noted, only the DPA for the SAIG mailbox can have access to the NSLDS website, the primary DPA will have to set up additional SAIG mailboxes for staff who need access to the NSLDS website. (Note that individuals with defaulted federal student loans will not be granted access to NSLDS.)

From the SAIG enrollment site, the primary DPA can select “Add Another NSLDS Online User,” and follow the instructions to enroll a new user for NSLDS online access. When the new user’s application is approved, his or her FSA User ID and instructions to create a password will be sent by email.

The first time a new user accesses the NSLDS website, he or she will be asked to choose a new password to replace the default password. The password is valid for 90 days and may be updated by selecting “Change Password” on the NSLDS site.

The G5 payment system is used to request and receive funds, report expenditures, adjust drawdowns, and access current program awards and payment information. Your school must establish a user ID with G5 to draw and receive Federal Student Aid funds.

Schools request federal cash electronically using the G5 website, ED’s program management system. Before you can use G5, your school must be registered with the System for Award Management (SAM) and have received a Program Participation Agreement (PPA) from the Department. To begin using the G5 payment system, you must obtain a G5 user ID and password, provide your school’s UEI number, and provide bank account information. Note: In April of 2022, the federal government stopped using the DUNS number to uniquely identify entities registered with the System for Award Management (SAM). Entities doing business with the federal government must use a Unique Entity Identifier (UEI) created in SAM.gov. Review Electronic Announcement (EA General 21-28) for additional information.

To access the G5 system, payee representatives must have individual G5 accounts under their personal name and unique address, with the Payee or Servicer role assigned and associated to the UEI of the payee organization. To establish a G5 payee account, go the “Not Registered? Sign Up” link on the G5 home page (see sidebar). Users will follow the prompts to create an account. When prompted to select a role, choose “Payee (Full Access”, “Payee (View Only Access)”, “Servicer (Full Access)” or “Servicer (View Only Access),” and enter the requested information, including the UEI of the payee organization and click “Submit.” This will generate an External User Access Request Form, which must be printed out, signed by an authorizing official of the payee organization, and notarized (universities may use a university stamp). The forms should be scanned or filled out electronically and emailed to edcaps.user@ed.gov. Please visit the G5 website for more information.

Funds requested from G5 will be transmitted to the payee’s bank account using either the Automated Clearing House (ACH) or the FEDWIRE transmission method. A payee designates its method of transmission when providing its bank account information.

ACH users must complete a Direct Deposit Sign-Up Form (SF1199A), which can be obtained from the bank or the G5 website. (The bank must complete and sign Section 3). Fedwire users must complete the Fedwire Form, which is also available on the G5 site.

The school must send a copy of its PPA with a cover letter (written on official letterhead) requesting the new bank account (or change to bank account information) to the Office of Chief Financial Officer, Department of Education. The letter must include the payee UEI number, email address for the person to receive automated notification, and original signature and phone number of the person requesting the bank information.

The program award number is a unique, eleven-character number that identifies each program award issued by a specific office to a specific grantee. You will need to request and return all ED funds by the specific program award number.