Publication Date: June 19, 2008
Author: William Leith, Acting General Manager, Application, Operations and Delivery Services, Federal Student Aid
Summary: CCRAA Operational Implementation Guidance (CPS, COD System, and EDESuite) - Additional/Updated TEACH Grant Operational Implementation Information (Supersedes 4/9/2008 Posting)
Posted on 06-19-2008
In an April 9, 2008 Electronic Announcement posted on the Information for Financial Aid Professionals (IFAP) Web site, we provided a high-level overview of how we will implement functionality for processing Teacher Education Assistance for College and Higher Education (TEACH) Grant awards. The purpose of this communication is to provide additional and, in some cases, updated information about the operational implementation of the TEACH Grant Program. For consistency and ease in reference, we are providing updated versions of all information we initially provided in the April 9th Electronic Announcement, including the attachments to that announcement.
As explained in Dear Colleague Letter GEN-08-01 posted on the IFAP Web site, the College Cost Reduction and Access Act (the CCRAA), Pub. L. 110-84, authorized the TEACH Grant Program for implementation beginning with the 2008-2009 Award Year. The TEACH Grant Program provides up to $4,000 a year in grant assistance to a student who agrees to serve for at least four years as a full-time teacher in a high-need field in a public or private elementary or secondary school that serves students from low-income families. A TEACH Grant recipient who does not complete the required teaching within a specified timeframe, or fails to meet certain other requirements of the TEACH Grant Program, will be required to repay the TEACH Grant as a Direct Unsubsidized Loan under the William D. Ford Federal Direct Loan (Direct Loan) Program.
Note: In a June 17, 2008 Electronic Announcement posted on the IFAP Web site, the Department of Education (the Department) informed the community of the posting of a draft of the Final Rule for the TEACH Grant Program. This draft was transmitted to the Federal Register for official publication and will be effective July 1, 2008 for the 2008-2009 Award Year. The draft of the Final Rule for the TEACH Grant Program is available in the "What’s New" box at http://www.ed.gov/policy/highered/reg/hearulemaking/2008/index2008.html.
This communication is one of many communications that we are posting to support the operational implementation of the TEACH Grant Program. As explained above, we will provide additions and, in some cases, updates to the operational implementation information provided in the April 9th Electronic Announcement. To assist readers in easily identifying the additional/updated information, all sections that contain additional/updated information are marked as "UPDATED". However, we encourage everyone to read this announcement and its attachments in their entirety.
We cover information in the following order:
As the TEACH Grant Program’s July 1, 2008 effective date draws near, we look forward to working together with schools to provide TEACH Grant funds to eligible students and appreciate the extra effort, patience, and understanding that will be required of schools. Thank you in advance for the assistance you will provide in serving our students who will receive TEACH Grant awards.
UPDATED – Basic Components of TEACH Grant Processing
The basic components of TEACH Grant processing are as follows:
For the 2008-2009 Award Year, the application for a TEACH Grant is the Free Application for Federal Student Aid (FAFSA). We have added a question to the 2008-2009 FAFSA on the Web application to assist in identifying potentially eligible TEACH Grant recipients. For the 2008-2009 Award Year, this question will only appear on FAFSA on the Web and not on the paper FAFSA, or on an application generated by a school in FAA Access to CPS Online or through the Electronic Data Exchange (EDE) process.
A school has the option to participate in the TEACH Grant Program. A school that chooses to participate in the TEACH Grant Program will respond to a request from a student to determine eligibility for a TEACH Grant award using information the school has and confirmation of intent provided by the student. Dear Colleague Letter GEN-08-07 posted on the IFAP Web site clarifies how a school establishes eligibility to participate in the TEACH Grant Program.
A student completes an Agreement to Serve (ATS) electronically via the ATS Web site each year that he or she is scheduled to receive a TEACH Grant award. The ATS will explain the service obligation that must be fulfilled, the circumstances that will result in the TEACH Grant being converted to a Direct Unsubsidized Loan, and, if the TEACH Grant is converted to a Direct Unsubsidized Loan, the terms and conditions associated with repaying the loan. The school receives a response regarding the student’s ATS completion.
A TEACH Grant fact sheet will be available on the ATS Web site.
Note: A student must also complete counseling before receiving each TEACH Grant award. The Department will advise schools of counseling requirements related to the TEACH Grant Program through final regulations and sub-regulatory guidance.
A school provides origination and disbursement information for a TEACH Grant award via submission of the Extensible Markup Language (XML) COD Common Record to the Common Origination and Disbursement (COD) System or via the COD Web site. Upon processing an award’s origination record and disbursement records, the COD System returns the applicable response to the school.
Upon acceptance of an origination record that includes, at a minimum, anticipated disbursement information, the COD System generates a TEACH Grant Disclosure Statement for the student.
The COD System accepts actual disbursement records for a TEACH Grant award only after an ATS for the applicable year has been accepted by the COD System. The school reports additional actual disbursements as they occur.
Once the COD System has an accepted ATS (completed by the student via the ATS Web site), an accepted origination record, and an accepted actual disbursement record for the initial disbursement, the TEACH Grant award is sent to the DLSS. The student receives a TEACH Grant Notice of Disbursement(s) Made generated by the DLSS.
On a quarterly basis, the DLSS generates a statement about the TEACH Grant for the student. The student’s completion of the required teaching or conversion of the TEACH Grant to a Direct Unsubsidized Loan, as applicable, is recorded and monitored via the DLSS.
The DLSS sends TEACH Grant award information to the NSLDS. Both individual award information and aggregate award information are available for view by a school and the student.
A school updates a student’s enrollment status as part of normal enrollment reporting to the NSLDS via the Enrollment Reporting Roster.
After a student is no longer enrolled in the program for which a TEACH Grant was awarded, he or she reports on the completion of the required teaching. The student updates his or her agreement fulfillment status, including confirmation of each year’s qualified teaching service, in response to notifications generated by the DLSS.
A student who does not complete the required teaching, or who otherwise fails to meet the requirements of the TEACH Grant Program, must repay the award as a Direct Unsubsidized Loan according to the terms and conditions of the ATS. Repayment and servicing of the Direct Unsubsidized Loan is recorded and monitored via the DLSS.
Availability of TEACH Grant Functionality
We are on schedule to implement Teach Grant functionality that supports the basic components outlined above. The implementation schedule, which includes additional and updated information, is as follows:
UPDATED – Explanation of Attachments
In two attachments to this announcement, we provide additional information about the availability of TEACH Grant processing functions. As explained at the beginning of this announcement, we are providing updated versions of the attachments we initially provided on April 9, 2008. To assist readers in easily identifying the new/updated information, all sections that contain new/updated information are marked as "NEW" or "UPDATED". However, we encourage you to read both attachments in their entirety.
Once again, we appreciate your partnership in serving TEACH Grant recipients.
If you have questions about the TEACH Grant question on FAFSA on the Web and its related SAR/ISIR comment codes or the EDExpress software, contact CPS/SAIG Technical Support at 800/330-5947 (TDD/TTY 800/511-5806). You may also e-mail CPSSAIG@ed.gov.
If you have questions about the COD System’s TEACH Grant functionality, including Agreement to Serve (ATS) completion, contact the COD School Relations Center at 800/474-7268. You may also e-mail CODSupport@acs-inc.com.