| DCLPublicationDate: 9/1/96 September 1996 GEN-96-17 96-L-189 96-G-291 Summary: This letter describes the implementation of the Student Status Confirmation Report function of the National Student Loan Data System. Dear Colleague: I wish to provide you with important information concerning the implementation of the Student Status Confirmation Report (SSCR) function of the National Student Loan Data System (NSLDS). As many of you are aware, we announced earlier this year that the SSCR function of the NSLDS would be fully operational this Fall. In anticipation of that event, we developed an implementation strategy that provided schools extra time to work with a "practice" SSCR file during the Spring and Summer, while continuing to respond to SSCRs presented to them by their guaranty agency(ies). Special timeframes were established for Direct Loan schools because "practice" SSCR was the only way they could inform the Direct Loan servicer of changes in enrollment status for Direct Loan borrowers. Because of issues related to Title IV Wide Area Network (TIV-WAN) connectivity and the NSLDS software, only a few schools were able to access their "practice" file, and fewer still were able to complete and return their file successfully. Therefore, in early July we announced revised plans, which are still in effect. The revised plans expected Direct Loan schools to return their files by August 15, 1996 or as soon thereafter as possible, and expect all other schools to process and return their "practice" files by October 15, 1996. Furthermore, the revised date for the NSLDS SSCR to be in a fully operational mode is February, 1997. At that time, we will inform guaranty agencies that they no longer need to create and send SSCRs to their schools. Until that time, all schools, both Direct Loan and FFELP, must continue to return guaranty agencies' SSCRs according to current regulatory requirements. Beyond this first NSLDS-generated SSCR the next SSCR will be sent to Direct Loan schools this Fall and to all other schools after February 1, 1997. The Fall cycle for Direct Loan schools is necessary to capture Direct Loan-specific enrollment data. The attachments to this letter provide an overview of the NSLDS SSCR process by addressing the following issues: Why is it Important to Report and Update Enrollment Information? Why Use the NSLDS for SSCR Reporting? What Are the NSLDS SSCR Objectives? What Schools Must Participate in the SSCR Function? How will NSLDS SSCR Data be Transmitted? What is the Schedule for Schools' Receiving SSCR Rosters? How Will Schools Access NSLDS SSCR Rosters? Which Borrowers Will Appear on SSCR Rosters? What are the School's Responsibilities Upon Receiving an SSCR? What are the Special Definitions Used in the NSLDS SSCR Process? What Will the NSLDS Do With the Submitted SSCR Roster? What Happens to the SSCR Data Submitted by Schools to the NSLDS? What is the Implementation Schedule? Will SSCR Training be Provided? Whom Can I Call for NSLDS SSCR Help? We have also provided as an attachment to this letter a series of Questions and Answers (Q&As) addressing a number of issues that have been raised by schools over the past several months. The Department of Education is excited about the implementation of the SSCR function as a part of the NSLDS and is committed to assisting schools during this transition from the guaranty agencies' SSCRs to those created by the NSLDS. Sincerely, Elizabeth M. Hicks Deputy Assistant Secretary for Student Financial Assistance Programs Attachments A - What is the NSLDS SSCR Function? B - SSCR Questions & Answers Attachment A WHAT IS THE NSLDS SSCR FUNCTION? Why is it Important to Report and Update Enrollment Information? Because student enrollment status determines the date a federal loan borrower enters a grace or repayment period, the timing of the government's payment of interest subsidies, and whether a borrower is eligible for in-school deferment privileges, timely reporting of enrollment data for federal student loan borrowers is critical. The regulations governing the Title IV student aid programs provide that institutions, lenders, and guaranty agencies monitor and update the enrollment status of students who receive federal student loans. One specific regulatory requirement is that confirmation and updates to enrollment status for borrowers be provided by the completion of Student Status Confirmation Reports (SSCR) by schools, [34 CFR 682.401(b)(20)]. Why Use the NSLDS for SSCR Reporting? In 1994, the Department of Education (ED) began using the National Student Loan Data System (NSLDS) to track and monitor all Title IV student loans. Now in 1996, in order to enhance and expedite enrollment reporting, ED has incorporated the SSCR function into the NSLDS. The new SSCR process will fully automate enrollment updating and will standardize reporting procedures and formats. Institutions will benefit from the centralized, electronic SSCR process, and ED will benefit from more accurate and timely reporting, as well as greater ease in auditing student enrollment status. The rules and data element definitions used for processing SSCRs from the NSLDS are generally the same as those currently used by ED and most guaranty agencies. There are, however, two exceptions that will be discussed in the Definitions section that follows. What Are the NSLDS SSCR Objectives? SSCR processing through the NSLDS will: . Maximize the fiscal integrity of the Title IV loan programs by moving loans into repayment status in a timely way; . Protect student entitlements to grace and deferment periods through improved tracking of enrollment status dates; . Generate the SSCR Roster File in a standard format based on standard data elements and definitions; . Significantly reduce the burden on schools administering Title IV loan programs; and . Improve the quality and accessibility of enrollment data for schools, guaranty agencies, and ED, each of which can obtain enrollment information for each student having a Federal Family Education Loan (FFEL) or Federal Direct Loan. What Schools Must Participate in the SSCR Function? Institutions participating in any Title IV student aid program must participate in the NSLDS SSCR function. In addition, any institution not participating in a Title IV program but which has been certified eligible to process loan deferments for borrowers must participate in the NSLDS SSCR function. Institutions may elect to have a servicer provide the required SSCR data on their behalf. If a school notifies the NSLDS that it will use a servicer for SSCR processing, the school will not receive any files from NSLDS regarding SSCR data; rather the third party servicer will receive the SSCR roster on behalf of its client institution. How will NSLDS SSCR Data be Transmitted? The new SSCR process will be completely electronic. The Department of Education's Title IV Wide Area Network (Title IV WAN) will be used by institutions to receive and send SSCR data electronically. To participate electronically, a school or its designated servicer must be enrolled with Title IV WAN. Title IV WAN provides each participant with a network mailbox for storing and forwarding electronic files from and to the NSLDS. Enrollment information for Title IV WAN is contained in Action Letter #7, dated March 1996. Alternatively, such information can be obtained by calling Title IV WAN Customer Service at 1-800-615-1189. The Integrated Application Menu (IAM) of the Title IV WAN software contains two components for SSCR processing: . EDconnect software, which is the communication software used to send and receive files from NSLDS; and . Net*Connect software, which provides on-line access to NSLDS screens, including SSCR screens. Title IV WAN's transmission speed is fast enough to accommodate even the largest school, with many borrowers on its SSCR.*1* PC based institutions can transmit at 28.8 KB/second and mainframe institutions can transmit at 56 KB/second. What is the Schedule for Schools' Receiving SSCR Rosters? NSLDS will generate an SSCR Roster for each institution up to six times per year on a schedule chosen by the institution. Schools set their SSCR schedule through the NSLDS on-line screens, which can be accessed through the Net*Connect software provided by Title IV WAN. Schedules for receiving SSCRs are month specific; rosters will be placed in a school's Title IV WAN mailbox the first business day of the selected month. When setting their schedule, schools must comply with the following: . Schools can choose to receive up to six SSCRs per year, . Schools must choose to receive at least two SSCRs per 12 month period, . Rosters may not be scheduled in consecutive months, . Term based schools (semester, quarter, and trimester) must request at least one SSCR each regular term, and . If fewer than four rosters are scheduled, they must be at least four months apart. The Department of Education recommends that institutions schedule an SSCR cycle every other month during the academic year in order to eliminate the need for ad hoc reporting (specific reporting outside a school's normal cycle). Institutions may change their schedule at any time, as long as they meet the minimum of two reporting cycles per year and the other rules noted above. The following table shows recommended SSCR cycle months for schools on different academic calendars. __________________________________________ Recommended SSCR Cycle Dates Semester Schools Quarter Schools Other Schools September October October November December December January February February March April April May or June June June August __________________________________________ How Will Schools Access NSLDS SSCR Roster Files? The SSCR Roster, once generated by the NSLDS, will be forwarded to the institution or its designated servicer. The NSLDS will deposit the institution's SSCR Roster File in the institution's Title IV WAN mailbox at the beginning of each month designated by the institution for receiving an SSCR. The institution will then access the SSCR file from its Title IV WAN mailbox using either its mainframe connectivity software or the PC based communications software, EDconnect, provided by ED as part of Title IV WAN. An institution is required to provide its enrollment update responses to the SSCR Roster File within 30 days of the roster's arrival in the institution's Title IV WAN mailbox. The institution transmits these changes by depositing the updated Roster File in its Title IV WAN mailbox, for retrieval by NSLDS. Which Borrowers Will Appear on SSCR Rosters? Any borrower that is recorded in the NSLDS database as being enrolled at a school [Enrollment Statuses 'F' (full-time), 'H' (half-time), 'L' (less than half-time), or 'A' (authorized leave of absence)] will be on that school's roster. To enable the NSLDS to create an accurate baseline of borrower enrollment, the initial SSCR Roster will very likely contain more borrowers than subsequent rosters will contain. This is because the first roster will include borrowers whose Enrollment Status is not one of those noted above, but who have one or more loans showing a loan status of "in school or grace" (ID) or "in-school deferment" (DA). Because such a loan status without one of the "enrolled" Enrollment Status Codes is not logical, such a borrower will be included on the initial SSCR Roster for all schools that ever processed a loan or a loan deferment for the borrower, so that the ambiguity can be resolved. For SSCR production cycles beginning in February 1997, borrowers with Enrollment Statuses of 'F', 'H', 'L', or 'A' will be included on the roster of the school of record. In addition, if a borrower's Enrollment Status is not one of the above, but the Loan Status Code is 'ID' or 'DA', only the last school attended will receive the student. Such students will be dropped from the roster after 180 days or when the loan status code changes, whichever comes first. When these subsequent rosters are transmitted by the NSLDS, schools will be asked to supply an address and enrollment status only if the student is either currently enrolled or left the institution within the last six months. If no record of the borrower is found, schools should use the enrollment code 'Z' (no record found). What are the School's Responsibilities Upon Receiving an SSCR? Upon receipt of the SSCR Roster File, the school must: 1. Match the Roster File against enrollment records; 2. Update each student's enrollment status and enrollment status effective date (see Special Definitions below regarding this date); 3. Propose changes to student identifiers (student SSN, last name, first name, middle initial, and birth date) as needed; 4. Update or add student address data as needed (see definitions below regarding addresses); 5. Add new students to the Roster File as needed; 6. Return the updated SSCR Roster File, which will become the SSCR Submittal File, to the NSLDS within 30 days of the date the SSCR Roster File was sent to the institution; and 7. Retrieve and process the Error Notification Roster provided by the NSLDS (See # 4 below). What Will the NSLDS Do With the Submitted SSCR Roster? Upon receipt of the SSCR Submittal Files from institutions, NSLDS will: 1. Error check the Submittal File; 2. Update the NSLDS database with enrollment status changes provided on the SSCR; 3. Capture proposed student identifier changes and new or changed address data; 4. Return to the school the SSCR Error Notification File, which includes any submitted records that contained errors. The Error Notification File contains a count of accepted records and error records from the submitted SSCR. It will be created even if there are no errors to report and will serve as proof that the school returned its SSCR to the NSLDS. Schools should retain a copy of the Error Notification File for possible auditing purposes. 5. On a weekly basis, forward new and changed data to each affected guaranty agency or to the Direct Loan servicer; 6. Once full NSLDS SSCR processing commences, the Department will assume responsibility for monitoring schools' SSCR compliance. What are the Special Definitions Used in the NSLDS SSCR Process? A. DATE ENROLLMENT STATUS EFFECTIVE - The value of this item is the date the student began CONTINUOUS enrollment in his or her current enrollment status. It is not necessarily the beginning of the current term. For example, if a student began enrollment as a half-time student two years ago and has remained half-time up to the current term, the Date Enrollment Status Effective is the first day of the term that began two years ago, not the beginning of the current term. It is important to properly calculate this item since it could have an impact upon the student's eligibility for deferments. ED understands that not all schools' registration systems are currently capable of determining the Date Enrollment Status Effective as defined above. Therefore, while we encourage you to modify systems and procedures to comply with this definition, if you cannot do so at this time you may do the following instead: If a student's current enrollment status is the same as the status reported to you on the SSCR received from the NSLDS, and the value of the Date Enrollment Status Effective field on the SSCR is a date in the past, do not change the field unless you are certain it is incorrect. In such case, please provide the correct date. If no value is provided for the Date Enrollment Status Effective field on the SSCR and you cannot provide the actual date as defined above, please supply the date the current enrollment period began. B. PERMANENT ADDRESS - Schools must update borrowers' addresses as reported on the SSCR received from the NSLDS. The SSCR will show the address last reported for a borrower so that the school can determine if the address must be updated. If no address appears on a roster for a borrower, the school must provide the address. Note that the first "practice" SSCR roster will not include any addresses, so schools should provide their latest address for a borrower. However, for the first and all subsequent rosters, schools need not provide or update an address for students who graduated or withdrew from the school more than 180 days prior to the reporting date. The Department does not expect schools to research old paper or archived files in order to provide this information. Schools are required to supply or update an address only if the student is currently enrolled or left the institution within the last six months. What Happens to the SSCR Data Submitted by Schools to the NSLDS? NSLDS will send SSCR files to guaranty agencies and the Direct Loan servicer on a weekly basis. The files contain data from all SSCRs submitted during the previous week, and from all on-line transactions made directly into the NSLDS. Guaranty agencies will update loan records with the new data and pass the updated information to lenders. The Direct Loan servicer and the FFELP lenders will decide whether to use updated address information provided to them. What is the Implementation Schedule? Beginning the first week of April 1996, electronic NSLDS SSCR rosters were sent to all Direct Loan schools since they had already established their Title IV WAN SSCR destination point(s). FFELP schools began receiving their SSCRs in July following their registration for SSCR through Title IV WAN. Rosters continue to be sent to FFEL schools as they complete the Title IV WAN registration materials contained in Action Letter #7. Federal Direct Loan schools should have returned this SSCR to NSLDS by August 15, 1996 and Federal Family Education Loan schools should return the roster by October 15, 1996. Beginning in February 1997, NSLDS will transmit SSCR Roster Files to schools according to the schedule chosen by a school. If a school does not establish its own schedule, the NSLDS will send rosters every other month (the recommended schedule). Until at least February, guaranty agencies will continue sending their SSCR requests directly to schools. All schools must respond to these requests using the normal guaranty agency timetable. The Department will release a "Dear Colleague" letter designating the date guaranty agencies will cease sending SSCR requests to schools for processing. Will SSCR Training be Provided? Training on the new SSCR function of the NSLDS is being accomplished in two ways. In February 1996, the NSLDS Division began conducting sessions for guaranty agency personnel. Those 1-day sessions were primarily to prepare guaranty agency trainers to train affiliated school users on the SSCR process. The second training method is a self-paced tutorial, called NSLDS Computer Based Training, which was distributed to all schools and guaranty agencies in early May 1996. Finally, the NSLDS Division released an SSCR User's Guide this past winter. Whom Can I Call for NSLDS SSCR Help? If you have any questions, comments, or suggestions regarding the NSLDS SSCR process, you may either write to ED directly at the address given below or telephone the NSLDS Customer Service Center at 1-800-999-8219 during the hours 7:00 a.m. to 7:00 p.m. Central time, weekdays except federal holidays. National Student Loan Data System U.S. Department of Education 7th & D Street SW ROB-3, Room 4640 Washington, D.C. 20202 ATTACHMENT B SSCR QUESTIONS & ANSWERS These Questions & Answers (Q&As) are intended to provide schools with responses to some of the most commonly asked questions related to the NSLDS SSCR process. Q1. When will I receive my next SSCR file? A1. It depends on whether you are a Direct Loan school or a FFEL school. Direct Loan schools will receive a roster in the Fall. FFEL schools will not receive another SSCR roster until after February 1. NSLDS has established schedules for all schools to receive SSCR files. These schedules provide that all schools will receive an SSCR every two months. If you want to change the default cycles, please make the change at least 10 days before the scheduled delivery of your roster. You may make the change by using the NSLDS SSCR on-line screens. Q2. When will I receive my error/acknowledgment file? A2. We expect to begin processing error/acknowledgment files in early September for those SSCRs that have already been submitted by schools. We then will process SSCRs and provide error/acknowledgment on an ongoing basis as they are provided by the schools. Q3. Can I submit a file to NSLDS that consists entirely of added records? A3. Yes. Please be sure to use a file type of "A" in the header record if you want to submit a file consisting of all ad hoc records (See the SSCR User's Guide). Q4. If I make updates using the on-line screens, do I have to include those students on the roster? Will they appear as errors? A4. No, you do not have to include the students on your returned rosters. All on-line transactions are reviewed prior to updating your school's SSCR file. On-line transactions are considered as a timely response to the roster. Q5. I am using a servicer. How do I know if my SSCR has been completed? A5. You need to contact your servicer to ensure that they are completing your SSCR according to the program requirements. When the NSLDS starts monitoring compliance with SSCR submission rules, any notices of non-performance will be sent to the school and not to the servicer. Q6. Can I establish a separate Title IV WAN destination point in the Registrar's Office? A6. Yes. Schools are encouraged to establish multiple destination points. The financial aid office can have a destination point to receive ISIRs; and the Registrar's Office, another destination point to exchange SSCR data (See Action Letter #7). Q7. If I want to designate a servicer, or change servicers, do I need to complete a new Title IV WAN Participation Agreement? A7. No. If you have on-line access and the servicer is already an NSLDS servicer, you can use the on-line screens to designate or change servicers. Q8. What training materials are available to learn about the on-line screens? A8. A user guide entitled, "The Paperless Link" was sent to all schools in May. It provides a step by step approach to all NSLDS on-line screens. Also included in this guide was a computer based training diskette. This diskette is a tutorial for the screens. If your institution did not receive this mailing, please call NSLDS Customer Service at (800) 999-8219. Q9. Who is responsible for submitting SSCR roster data on a student who is attending a host school while a regular student at the home school that awarded Title IV aid? A9. Since NSLDS records are based upon the school that certified a student's enrollment, or originated a student's loan(s), or provided deferment documentation, NSLDS would not know about a student's temporary attendance at a school other than the student's home school. Therefore, it is the home school that will receive the student's record on its SSCR. It is that school's responsibility to report accurately the enrollment status, even if the student is currently in attendance elsewhere. Q10. I am having problems using EDExpress for processing SSCRs. A10. The following steps are recommended for using EDExpress for the NSLDS SSCR process. The following steps are recommended for using EDExpress for the NSLDS SSCR process: 1. Go to SSCR Setup and set the compare flag to "yes." 2. Import the SSCR file with the compare option on. All SSCR records that match records currently on your EDExpress database will have all required status and address information available pulled into the SSCR database. If records are skipped during the import process because of bad data, keep a copy of the import edit list and instructions will be provided later on how to handle these records. 3. Print the SSCR list. This list will show the borrower identifier information, required information, and SSCR status. If a record has all required information present after the import, the SSCR status will be set to "R" for Ready To Send. For records with an "R" status where the information is accurate, nothing more needs to be done until export. For those where the information is not accurate, you must open the record and provide the accurate data. 4. For records where the status is not "R", you will need to supply the missing information. The status will automatically change to "R" when you save the record if all information is present. There are four methods to supply missing information: A. Select File/Open SSCR, choose the SSN of the record you wish to update, modify the record, and save it. B. Create a user-defined query to identify a group of records to which you want to apply the same required information. Do this by setting up the query and executing it under Open/SSCR Multiple Entry. C. If you have a group of records that cannot be identified and grouped via a query but need the same required information applied to them, go to Open/SSCR Multiple Entry and enter the required information and select Multiple SSNs. This will allow you to enter just the SSNs of all the records you wish to update. D. If the missing information is present on an external system, you can create an import change file to contain the information you want updated on selected records. Import this file, and if all required information is then present on the database, the status of each record will be set to "R". 5. When all records have a status of "R", the file can be exported. If you have any questions about using EDExpress for SSCR purposes, please call Direct Loan Technical Customer Service at (800) 330-5947, Option 3. If you have technical questions about the SSCR process in general, please call NSLDS Customer Service at (800) 999-8219. *1* A magnetic tape option is nevertheless available to those schools desiring it. There will be constraints, however. Once the NSLDS function becomes fully operational, tapes will have to be received by NSLDS within 30 days of the start of the reporting cycle. Also, error files sent via tape will have to be returned to NSLDS within 10 days of generation by NSLDS. |