| PublicationDate: 10/1/97 Summary: Multiple Data Entry Announcement Author: OPE - Office of the Assistant Secretary for OPE Posted October 1, 1997 Dear Colleague: I wish to share with you an important decision that the Department of Education has made regarding the processing of the Free Application for Federal Student Aid (FAFSA). This decision will result in a processing system that is more streamlined, responsive to your needs, and cost-effective for the Department and taxpayers. As you are aware, FAFSA processing is done in two steps. The first step, currently performed by two data entry contractors (American College Testing, Inc. (ACT) and I-NET), involves entering the data from the FAFSA, renewal FAFSA, and corrections into the processing system. The second step -- computing the data and producing SARs -- includes functions that are performed by ED's Central Processing System (CPS) operated by National Computer Systems (NCS), of Iowa City, Iowa. Please note that ED is not making any changes to the Central Processing System. However, we are making a change to the first step in the process. As part of its efforts to further integrate and simplify the delivery of Title IV student financial aid and to improve service to you and your students, ED has selected ACT, Inc., of Iowa City, Iowa, as its single contractor for data entry. I-NET no longer performs data entry under contract to ED, thus reducing the number of data entry contractors. Under this new arrangement, ACT will begin today to serve as ED's only data entry contractor. Thus, effective today, October 1, 1997, ACT will complete all remaining data entry for 1997/98 FAFSAs and will continue this role as single data entry contractor throughout the 1998/99 processing cycle. ACT, with additional resources from two of its subcontractors (First Image and National Computer Systems) has available more than adequate resources to process the entire application volume at any point in time. ACT, under a contract awarded in 1995, currently processes FAFSAs for the Department. Further, its involvement with processing the FAFSA, and the FAFSA's predecessor BEOG and Pell Grant applications, extends back to the infancy of these programs in the 1970s. In addition to its contractual relationship with ED, ACT also is a leading educational testing and service provider. It is a firm with established credentials among institutions of higher education and their staffs. ED is pleased to extend its business relationship with ACT and to offer you, our customers, the services of a company with a sound reputation in the higher education community. Respectfully submitted, Betsy Hicks Deputy Assistant Secretary Student Financial Assistance Programs |