DCLPublicationDate: 8/1/97 DCLID: GEN-97-9 AwardYear: Summary: UPDATE ON THE SSCR PROCESS OF THE NSLDS: describes a series of letters that will be sent to institutions in connection with the SSCR process. August, 1997 GEN-97-9 Summary: UPDATE ON THE SSCR PROCESS OF THE NSLDS: This letter discusses recent activities the Department has taken and activities it will take in its implementation of the SSCR process of the NSLDS. It also describes a series of letters that will be sent to institutions in connection with the SSCR process. Dear Colleague: As you are aware, the Department is completing the implementation of the Student Status Confirmation Report (SSCR) process of the National Student Loan Data System (NSLDS). Over the past several months, we have developed and shared with schools our plans for the transition of the SSCR process from one that required schools to respond to SSCR rosters sent to them by guaranty agencies to a unified single source NSLDS SSCR process. Those plans include informing schools of their obligation to prepare for and implement the SSCR process. As we said in our earlier letters, institutions participating in any Title IV student aid program must participate in the NSLDS SSCR function. To implement the regulatory requirement that schools respond to SSCR requests received from the NSLDS (See 34 CFR 682.610(c) (FFEL) and 685.309(b) (Direct Loans)) the Department created various implementation steps as discussed in a series of Dear Colleague Letters (GEN-96-5 and GEN-96-17 that dealt specifically with the SSCR process, and GEN-96-20 that explained the Title IV Wide Area Network (TIV WAN)). In addition, the Department provided information on implementation steps in Computer Based Training materials sent to all schools in April 1996. These steps include: (1) Signing up for participation in the TIV WAN and submitting registration documents for access to the NSLDS in general and the SSCR process specifically. (2) Designating a destination point and contact person for SSCR processing and establishing a calendar for receipt of SSCR rosters from the NSLDS. (3) Retrieving the SSCR practice roster from the TIV WAN electronic mailbox. (4) Completing and returning to the NSLDS the SSCR with required information and updates. (5) Retrieving the SSCR error roster from the TIV WAN mailbox. (6) Correcting and returning to the NSLDS any error records returned on the SSCR error roster. We are now about to enter a new phase of SSCR implementation where we will: (1) Acknowledge and reward those schools that have successfully completed their implementation of SSCR processing through the NSLDS. (2) Assist those schools that have shown evidence of complying, but still have outstanding problems in meeting the SSCR compliance requirements. (3) Begin the process of taking enforcement action against those schools that have not responded to our efforts to ensure their participation in this important endeavor. Schools will soon be receiving one or more of the letters described below: CURRENT STATUS LETTERS: SUCCESSFUL COMPLETION LETTER - This letter will be sent to all schools that successfully retrieved, completed, and returned the SSCR practice roster. The school must have had accepted into the NSLDS at least 90% of the student records on its roster (either initially or as a result of resubmission of error records). This letter will inform the school that, since it has successfully completed the NSLDS SSCR process, it is relieved of the responsibility to process SSCR rosters received from guaranty agencies. The guaranty agencies will receive a listing of all schools that have achieved this success level. These schools will begin to receive SSCRs from NSLDS according to the schedule they established when they registered with NSLDS through TIV WAN and will be expected to complete and return the electronic rosters to the NSLDS within 30 days of their being placed in the school's TIV WAN mailbox by the NSLDS. The first such rosters were sent at the end of February of this year. UNSUCCESSFUL COMPLETION LETTER - This letter will be sent to schools that have had SSCR rosters placed in their TIV WAN mailboxes, but have not successfully completed and returned the roster with at least a 90% success rate. The letter will inform the school that, not only must it continue to process SSCRs received from guaranty agencies, it must also work to complete successfully the NSLDS SSCR roster sent to its TIV WAN mailbox. As soon as the NSLDS produces a new SSCR roster according to the schedule established by the school, the school will no longer be able to return an earlier roster. The Unsuccessful Completion Letter will also inform the school that if it is unable to return successfully the NSLDS SSCR roster within the regulatory 30-day timeframe, it may be subject to appropriate enforcement action by the Department, including fines or other administrative sanctions. NON-PARTICIPATING LETTER - This letter, which will be addressed to the school's president or CEO, will be sent to those schools that have not signed up with TIV WAN or designated a third-party servicer to process their SSCR rosters. The letter will describe the enforcement actions that may be taken against the school, including the initiation by the Department of a fine or a limitation, suspension, or termination action. ON-GOING OVERDUE LETTERS: On an on-going basis we will monitor the return of SSCRs to the NSLDS. If a school fails to return an SSCR within the required timeframe, it will receive one of a series of Overdue Letters. These letters, described below, will remind the school of its obligation to process and to return the SSCR. The letters will also inform the school of the Department's enforcement options if the submission is not made promptly. FIRST OVERDUE LETTER - This letter will be sent to the financial aid administrator at a school when an SSCR roster that was placed in the school's TIV WAN mailbox has not been returned within the required 30-day timeframe. SECOND OVERDUE LETTER - This letter will be sent to the president or CEO of a school whose return of an SSCR roster is more than 21 days late. It will inform the president that failure to return the completed roster to the NSLDS could result in enforcement actions against the school. THIRD OVERDUE LETTER - This final demand letter will be sent to the president or CEO of any school whose return of an SSCR roster is more than 28 days late. This letter will notify the school that the matter will be referred to the Department's Administrative Actions and Appeals Division with a request for initiation of an administrative action. Such actions could include the initiation of a fine action or a limitation, suspension, or termination action that could affect the school's participation in all Title IV programs. We remain very concerned with the number of schools that have still not successfully made the transition to the new NSLDS SSCR process. While we are committed to assisting those schools that demonstrate an intent to comply with the SSCR requirements, we are prepared to take whatever enforcement actions are necessary and appropriate against schools that consistently fail to make an effort to comply. Needless to say, we are also extremely grateful to the large number of schools that have worked with us to make this transition successful and we congratulate those that will be receiving our "Successful Completion Letter." If you have any questions related to the NSLDS SSCR process please contact the NSLDS Customer Service Center at (800) 999-8219. Questions concerning registration with the TIV WAN can be answered by the TIV WAN Customer Service Center at (800) 615-1189. Sincerely, Elizabeth M. Hicks Deputy Assistant Secretary for Student Financial Assistance Programs |