DCLPublicationDate: 11/1/97 DCLID: GEN-97-12 AwardYear: Summary: Compliance with a new Federal requirement relating to electronic participation between the Department of Education (ED) and postsecondary educational institutions. November 1997 GEN-97-12 Dear President: I am writing to ask for your support as your financial aid, business office, and computing services staff ensure that your institution is in compliance with a new Federal requirement relating to electronic participation between the Department of Education (ED) and postsecondary educational institutions. The new requirement provides that schools must participate in certain electronic processes for the administration of Federal student aid programs. Enforcement actions that may be taken against a school that is not in compliance could include termination from all participation in the Federal student aid programs Under separate cover, we have sent your institution's financial aid administrator a letter (1998-99 Action Letter #2) that includes a comprehensive explanation of each of the required electronic processes and their implementation dates. I have enclosed with this letter a copy of the table from the Action Letter that lists the technical specifications schools must have in order to be in compliance. Many institutions will find that they already participate in all or most of the required processes. Some will need to expand their electronic participation, while a few will become "electronic" for the first time. An institution may meet this requirement by utilizing software provided by the Department or software developed by the institution or a vendor, in accordance with specifications provided by the Department. Alternatively, an institution may meet this requirement by the use of a third party servicer. I would also like to especially remind you of the need for your school to be "Year 2000 Compliant" with regard to the processing of financial aid data. Year 2000 Compliant means that all of your data processing systems, procedures, and protocols are designed to handle the upcoming change in the century. We will be sending a separate more specific letter to your financial aid officer within the next few weeks describing this issue in more detail. Let me thank you in advance, for your cooperation and support as, together, we move toward creating an efficient and cost effective Federal student aid delivery system. Sincerely, Elizabeth M. Hicks Deputy Assistant Secretary, Student Financial Assistance Programs Attachment |