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1996-97 FAFSA Processing - Announcement #26

PublicationDate: 4/4/96
Summary: 1996-97 FAFSA Processing - Announcement #26
Author: ODAS - Office of the Deputy Assistant Secretary - SFA


Announcement # 26-- April 4, 1996

This is announcement number 26 in our series of daily FAFSA
updates for financial aid administrators. For information on
individual applications, parents and students should contact
319-337-5665.

1996-97 Free Application for Federal Student Aid (FAFSA)
Processing Status Report

A. Status of Applications as of April 3, 1996

No./Percent. Expected
FAFSA No. of Paper of Paper Apps. Date to
Receipt Date Apps. Rec'd. Processed Complete
===============================================
Jan 1 - Jan 31 438,509 438,509 (100%) Completed
Feb 1 - Feb 15 698,136 686,332 (99%) Apr 5
Feb 16 - Feb 29 881,020 732,791 (83%) Apr 5
SUBTOTAL: 2,017,665 1,857,632 (92%)

Mar 1 - Mar 15 974,943 487,507 (50%) Apr 15
Mar 16 - Mar 31 589,877 87,021 (15%) Apr 15
TOTAL 3,582,485 2,432,160 (68%)

Note: Expected Date to Complete reflects the date that the
Department expects all paper applications with these receipt dates
to have been entered and processed by the Central Processing
System.

B. FAFSA Express

The Department would like to respond to the Internet posting
regarding FAFSA Express and whether the CPS waits 99 days to
process a student's record.

As we reported in previous announcements, the electronic record
containing the student application data sent from FAFSA Express
is held by the CPS for 21 days. If the signature page comes in to
the CPS within 21 days of receiving the electronic FAFSA Express
record, the student's record is processed. If no signature page is
received by the CPS after the 21-day "hold" period the CPS
processes the student's record with a reject 16. In addition, if the
student indicates that no signature page will be printed, the CPS
does not hold the record for 21 days, but rather processes it
immediately with a reject 16.

Because FAFSA Express signature page processing falls under the
history correction part of the process, the Department had the
Central Processing System set the CPS parameter to hold FAFSA
Express records for a period of 99 days. We increased the number
of days that we would hold these records until we were current
(with the signature pages) so that applicants would not get Reject
16 SARs unnecessarily. Now that we are current with FAFSA
Express signature pages, we have authorized NCS to return to the
original parameter of 21 days. We will continue to process
FAFSA Express signature pages as a priority.

Applicants should be aware that MDEs are receiving many invalid
signature pages. Students must print out a signature page
according to the instructions given in the software (i.e., must use a
small enough font so that everything fits on one page). Signature
pages must include the applicant's pre-printed SSN and name.
Applicants may also not use a 1995-96 signature page for 1996-97
FAFSA Express applications or attempt to change a 1995-96
signature page into a 1996-97 signature page.

C. NSLDS Data

Some important information concerning the National Student Loan
Database data has come to the Department's attention. The
Department wishes to share with you some information that was
posted to the Finaid-L bulletin board that may impact your school.
The following is a direct quote of that information.

Date: Wed, 3 Apr 1996 09:21:32 -0800
From: Martin Daniels
Subject: SAR / ISIR Loan History via NSLDS

The Northwest Education Loan Association (NELA) has sent the
following memo to all schools within the states of Idaho, Oregon and
Washington. Due to the nature of the information it will be
beneficial for all schools to be familiar with the situation as it may
affect students with NELA guaranteed loans attending schools in
other states. This is also being provided to all finaid-l subscribers as
a response to two messages related to NSLDS Loan History which
were posted by affected schools on 4/1/96.

The SAR/ISIR loan history information for affected students will
show cumulative loan balances significantly greater than what the
student has actually borrowed.

********************************

To: Participating Schools

From: Phoebe Hollenbeck
Vice President and Director
Program Services

Subject: NSLDS Information on ISIRs/SARs


NELA has identified a problem that can, in some cases, cause the
outstanding FFELP loan balance information on the ISIR Financial
Aid History to be incorrect. The ISIRs impacted would have been
drawn down AFTER March 19, 1996. Fortunately, the errors are
easily detectable as the loan amounts appear to be much larger than
they should be.

We are in the process of correcting this data with the NSLDS system,
however, in the meantime we have received the following guidance
from the NSLDS staff and the Department of Education.


A) For students who are continuing at the same institution, the
school can use the information in its files (FAT's from prior years
and current school records for the current loan period) to make
awards. It is recommended that the school use on-line access to the
NSLDS system to confirm the amounts before the first disbursement
is made.

B) For transfer students, the school can contact NELA at 1-800-732-
1077 and we will send you documentation of the borrower's
outstanding balance of loans guaranteed by NELA.

We are currently working with NSLDS to identify a way for schools
to initiate a duplicate draw down of the correct information. As soon
as a resolution has been identified, we will promptly inform you.

NELA is making every effort to quickly resolve this issue and ensure
that future ISIRs reflect the correct information. If you have
questions or need further clarification, please call Salve Manio,
Technical User Analyst, at (206) 461-5368, or (800) 562-3001, ext
368.

D. Scheduled down time for the SFA BBS on Friday, April 5

The SFA BBS will be down tomorrow, Friday, April 5, from 8a.m.
to 5p.m., for server relocation. As a result, there will be no
announcement posted on Friday, April 5th. Announcements will
resume on Monday, April 8. Please excuse any inconvenience that
this might cause.


Thank you for your continued patience and suggestions.

Last Modified: 08/16/1999