NEW School Guide

2009
Developed by:
Publications Team Performance Improvement
Program Communications Division and Procedures Branch
Operation Services Program Compliance
Business Operations Federal Student Aid
Federal Student Aid

For further technical assistance on the topics discussed in

the New School Guide, contact the School Participation Team.
E-mail: [email protected]
Phone: 202-377-3173

Send comments on this publication to:

[email protected]

Federal Student Aid, an office of the U.S. Department of Education, ensures

that all eligible individuals benefit from federal financial assistance—grants, loans
and work-study programs—for education beyond high school. By championing the
promise of postsecondary education, we uphold its value as a force for greater
inclusion in American society and for the continued vitality of America as a nation.
NEW School Guide
2009
 Contents
Introduction.....................................................................................................................Intro-i

Chapter 1 – FSA Program Requirements................................................................... 1-1

The Program Participation Agreement...................................................................................................... 1-1
Signing the Agreement, Certification by lower-tier contractors,
Purpose & scope of the Agreement, Expiration or termination of the Agreement,
The Eligibility and Certification Approval Report
Eligibility After Approval.................................................................................................................................. 1-3
Effective date for participation, Receipt of Federal School Code,
Beginning to disburse funds, Additional programs or locations,
Provisional certification
REquired Training for New Schools............................................................................................................ 1-4
Training requirement, Content of training
Systems to Confirm Student Eligibility for Aid.................................................................................... 1-5
Staffing & Third-Party Servicers................................................................................................................... 1-6
Adequate staffing & coordination of information, Separation of functions,
Hiring prohibitions, Third-party servicers
Continuing Participation Requirements................................................................................................... 1-8
Cohort Default Rates; 90/10 Rule; Other financial standards; Audits, Program reviews
Updating School Application Data...........................................................................................................1-10
Expanding eligibility, Reporting changes

Chapter 2 – Participating in FSA Systems.................................................................2-13

Overview of FSA Systems, Web Sites, & SOftware.................................................................................2-13
Receiving FSA funds, Beginning participation in Direct Loans,
Beginning participation in FFEL, Other Web data exchanges
Enrolling in SAIG...................................................................................................................................................2-15
Enrolling in FAA Access to CPS.....................................................................................................................2-17
Enrolling in the Common Origination & Disbursement System................................................2-19
Enrolling in NSLDS...............................................................................................................................................2-21
Enrolling in the G5 Payment System.........................................................................................................2-23
Responding to ED surveys & Submittint Reports................................................................................2-24

Chapter 3 – Software & Security COnsiderations..............................................3-25

Software PRoviders............................................................................................................................................3-25
Security Issues........................................................................................................................................................3-26
Options for Controlling Data Flow & User Access.........................................................................3-28
Creating separate SAIG Mailboxes, Setting user permissions in the software,
Setting file paths, SAIG Mailbox rules & Security Groups

Appendix A – GEtting Help.................................................................................................A-1

Appendix B – Checklist—Participation requirements........................................B-1
Appendix C – FSA/ED Systems Access.............................................................................C- 1
Introduction

Purpose & Scope of the Guide

The U.S. Department of Education has prepared the New School Guide to
assist you as your school begins participating in the Federal Student Aid (FSA)
programs. This New School Guide is designed to give you a quick introduction to
program and systems requirements that you should consider as a part of your
start-up activities.

However, it should not be assumed that this Guide is all-inclusive. For a

more complete explanation of specific program requirements, you should refer
to the Federal Student Aid Handbook. The Handbook, published each year by the
Department and distributed to school financial aid offices, is a primary reference
for financial aid administrators on the regulatory requirements of the FSA
programs.

We also offer a similar document describing accounting, recordkeeping and

reporting procedures for fiscal or business officers, informally known as the Blue
Book. Both of these publications are available on the Information for Financial
Aid Professionals (IFAP) Web site (www.ifap.ed.gov).

Importance of the IFAP Web site

Participating schools are specifically required to have access to IFAP and its
contents, since IFAP is the means by which the Department notifies schools of
FSA program requirements. We strongly recommend that you bookmark the
IFAP Web site and sign up for regular notification of publications that are posted
on this site.

To register, click on My IFAP, then select the New User Registration option.
Registration for My IFAP results in automatic registration to receive weekly e-mail
notifications summarizing the new additions to IFAP for the week. You will be
able to update your subscription options to also receive e-mail notifications that
are content specific, to receive only content specific notifications, or to receive no
notifications.

Intro–i
FSA New School Guide 2009

Further Assistance

At the end of this Guide, we have included as appendices:

A) a list of resources and contact information for FSA call centers that can
assist you with your questions about systems issues.
B) a checklist of important requirements that should be addressed at
startup, and
C) a reference list of User IDs and passcodes required for access to ED and
FSA systems.

For continuing assistance with participation requirements, please stay in touch

with the School Participation Team for your state.

Feedback
If you have comments or suggestions about this Guide, please feel free to send
them to the Publications group at: [email protected]

Intro–ii
 the FSA Programs
The Federal Student Aid (FSA) programs include grants, loans, and work-study
for students. Since you will be setting up your school systems to report data
for these programs, we’ll introduce them according to the process that is used
to make awards.

Awards for most of the FSA programs are tracked through the Common
Origination and Disbursement System (COD) and funds are provided to
participating schools through the Department’s G5 payment system. These
aid programs are:

• Federal Pell Grants

• ACG and National SMART Grants
(Academic Competitiveness Grants;
National Science and Mathematics Access to Retain Talent Grants)
• TEACH Grants
(Teacher Education Assistance for College
and Higher Education Grants)
• Federal Direct Loans
(Stafford Subsidized and Unsubsidized Loans, and PLUS loans)

Schools may also elect to participate in the campus-based programs. For

these programs, unlike the others, the school is given an annual funding
allocation from which to make student awards according to program
guidelines. These programs are:

• FSEOG grants
(Federal Supplemental Educational Opportunity Grants)
• Federal Perkins Loans
• Federal Work Study

Schools receive an annual allocation for these programs, which is drawn

through the G5 payment system. The school reports Perkins Loan awards to
the National Student Loan Data System, but does not report student-specific
data to the Department for FSEOG or Federal Work-Study.

There is one FSA loan program that is funded through private lenders.

- Federal Family Education Loans (FFEL)

(Stafford Subsidized and Unsubsidized Loans, and PLUS loans)

Schools that participate in the FFEL programs send loan data to the lender,
and receive loan funds from the lender.

Intro–iii
 Chapter
FSA Program
Requirements 1
Before beginning to participate in the FSA programs, a school should familiarize itself with the
administrative and other requirements that it will have to fulfill, including tracking student and
program eligibility. Some of these requirements require substantial lead-time, so a school should begin
planning for implementation as soon as possible. Once it begins participating in the FSA programs, a
school must continue to meet certain academic, financial, and administrative standards.

CHAPTER 1 HIGHLIGHTS
the Program Participation Agreement & ECAR
❚❘ Signing the Program Participation
Agreement
Signing the Agreement
➔ purpose & scope of agreement
Upon approval of a school’s application to participate, a member
➔ expiration/termination of agreement
of the School Participation Team (SPT) will send an electronic notice ➔ Eligibility & Certification Approval
to the CEO/President and the financial aid administrator notifying Report (ECAR)
them that the school’s Program Participation Agreement (PPA) is ❚❘ Eligibility after approval
available to print and review. The school must print two original PPA ❚❘ Training requirement
documents. The PPA must be printed in portrait orientation and not ❚❘ Systems to confirm student eligibility
edited in any way. ❚❘ Staffing & Third-party servicers
The appropriate official(s) at the school must sign and date ❚❘ Continuing participation requirements
both copies of the PPA (photocopied or scanned signatures are not ➔ Cohort default rates
acceptable) and send both PPAs to the address on the PPA transmittal ➔ 90/10 rule
letter. All pages of the PPA must be returned. ➔ Other financial standards
➔ Audits and program reviews
The SPT will return the school’s copy of the PPA, signed and dated
❚❘ Updating school application data
on behalf of the Secretary.
➔ Changes requiring ED’s prior written
approval
Certification by lower-tier contractors ➔ changes that do not require ED’s
The PPA includes a Certification By Lower Tier Contractor form. The written approval
school must make copies of the form and obtain the signatures of any ➔ foreign school reporting on the
and all Lower Tier Contractors on copies of the certification. The E-App
signed certification(s) are to be retained in the school’s files. A Lower ➔ other changes reported on the E-App
Tier Contractor includes any contracted individuals not considered
employees of the school, who participate in the school’s administration Receiving e-mails from ED
of the FSA programs (e.g., third-party servicers or loan servicers). Be on the watch for e-mails from an
“@ed.gov” address and adjust any spam
folders to allow them to pass through.
Purpose and scope of the Agreement
The PPA contains critical information about a school’s
participation in the FSA programs. The PPA identifies the school’s
OPEID number, the effective date of a school’s approval, the date by
which the school must reapply for participation, the date on which the
approval expires, and the FSA programs in which the school is eligible
to participate.
The PPA includes any conditions specific to the school, including
the conditions related to its provisional certification (discussed later in
this chapter). In addition the PPA summarizes the general terms and

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FSA New School Guide 2009

conditions required for participation in the FSA programs. By signing

the PPA, the President/CEO of the school is agreeing to comply with
the laws, regulations, and policies governing the FSA programs.

Expiration or termination of the Agreement

The PPA expires on the date indicated on the PPA unless the
school applies for recertification and a new PPA is issued. A school
may choose to end its participation at any time. To do so, the school
must submit an E-App for “Voluntary Withdrawal from ALL Title IV
Programs.”
A school’s PPA expires on the date that—

• the school changes ownership that results in a change in

control,
• the school closes or stops providing educational programs
for a reason other than a normal vacation period or a natural
disaster that directly affects the school or its students;
• the school ceases to meet the eligibility requirements,
• the school’s period of participation expires, or
• the school’s provisional certification is revoked.

In the case of a previously approved additional location of the school,

the school’s PPA no longer covers a location as of the date on which
that location ceases to be a part of the participating school.
The PPA may be terminated by the Department if the school
meets any of the conditions listed above (except for the one about
expiration). A school that has been terminated by the Department
generally may not apply to be reinstated for 18 months.

The Eligibility and Certification Approval Report

When the SPT returns the school’s copy of the PPA, an SPT
staff member will also send the school an e-mail indicating that the
approval letter and Eligibility and Certification Approval Report
(ECAR) are available online.
The ECAR contains the most critical data elements that form the
basis of the school’s approval and lists the levels of programs offered.
The ECAR also identifies any nondegree programs, short-term
programs, and additional locations that have been approved for the
FSA programs, as well as those that have been recently disapproved.
Both the PPA and ECAR must be kept available for review by auditors
and Department officials, including individuals conducting FSA
program reviews (discussed later in this chapter).

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 Ch. 1: Participating in the FSA Programs

Eligibility After Approval Updating, adding, deactivating

Federal School Codes
Effective date for participation
The date the PPA is signed on behalf of the Secretary is the date A school must maintain a Federal School
the school may begin FSA program participation. The Department’s Code for its main location. Federal
Program Systems Service and regional offices are notified, as well as School Codes may also be be requested
state guaranty agencies, that the school is approved to participate in for approved additional locations if the
the FSA programs. school wants students to be able to
separately identify which location they
will attend when submitting the FAFSA.
Receipt of Federal School Code
Federal School Codes should also be
Students will use the Federal School Code on the FAFSA to
requested for locations if the school will
designate the school(s) that they want to receive their FAFSA data. be requesting a separate Direct Loan
To confirm that the Federal School Code has been posted, the code for the location(s).
school must check the www.fafsa.ed.gov Web site, and select the Instructions for updating, adding, and
“Search for School Codes” link. This code is typically posted within deactivating Federal School Codes are
two weeks after the PPA has been siged on behalf of the Secretary. available on the E-App Web site under
Schools applying for participation only in the Direct Loan program the Federal School Code Addresses link:.
should request assignment of a Federal School Code when requesting www.eligcert.ed.gov
the Direct Loan code from COD School Relations—see Chapter 2.

Beginning to disburse funds

A school may make Pell, ACG/SMART, and TEACH grant
disbursements to students for the payment period in which the PPA is
signed on behalf of the Secretary. Schools receiving initial certification
can participate in the Campus-Based programs in the next award
year that funds become available. FFEL and Direct Loan program
disbursements may begin in the loan period that the PPA is signed.

Additional programs or locations

FSA funds can only be given to students in approved programs at
approved locations. If your school wants to get approval for additional
programs or locations, it must file an E-App and receive approval first
(in most cases). See the discussion on updating the E-App later in this
chapter.

Provisional certification
When a school is first approved to participate, the PPA for a new
school will include an Initial Certification provision. This provision
explains that the school has been granted provisional certification
for a period not to exceed one complete award year, in which it must
demonstrate that it satisfies the standards of financial stability and
administrative capability. New schools may also have other provisional
certification conditions which must be met by the school.

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FSA New School Guide 2009

Required Training for New Schools

Training on the Web
www.ed.gov/FSA/training
Training requirement
Visit the training Web site to register for In order to participate in any FSA program, a school that is new
required FSA Fundamentals training to the FSA programs must send two representatives (its president/
(requires OPEID) and to review other CEO and a financial aid administrator) to a Fundamentals of Title IV
training options for new schools: Administration training workshop offered by the Department. The
• FSA COACH Web-based Training training requirement must be completed within 12 months before or
• FSA COACH for Foreign Schools after the execution of the Program Participation Agreement.
• Web Demo: FAFSA on the Web and
FAA Access to CPS Online
• The chief executive officer (CEO) may elect to send another
Note that new schools get priority in
registering for FSA Fundamentals, see executive level officer of the school in his or her place.The
correspondence from the Department CEO or his/her designee must attend at least the first two days
for more details. of the training.

This site also links to Web-based tutorials • The attending financial aid administrator must be the person
for staff who will be working with designated by the school to be responsible for administering
EDExpress software, the COD system, the FSA programs. The financial aid representative must
and Return of Title IV Funds software; or attend all four and one-half days of the workshop.
completing the FISAP application/report
for the Campus-Based Programs. • If the school uses a consultant to administer its financial
aid, the consultant must attend the training as the school’s
Webinars and other training
financial aid representative. Because the school ultimately
opportunities are also offered on current
is responsible for proper FSA program administration,
topics and program changes.
the Department strongly recommends that a financial aid
Note that training sessions are also employee from the school attend the training as well.
offered at FSA conferences, which are
held in the fall. For more information, The school may request a waiver of the training requirement for
go to: the financial aid administrator and/or the chief executive from its
fsaconferences.ed.gov School Participation Team. The Department may grant or deny the
waiver for the required individual, require another official to take the
training, or require alternative training.

Training Content
Fundamentals of Title IV Administration training provides a new
school with a general overview of the FSA programs and their
administration. It does not cover fiscal and accounting procedures in
detail.
We recommend that school staff familiarize themselves with the
key topics by taking the on-line FSA Coach training prior to attending
the Fundamentals training.

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 Ch. 1: Participating in the FSA Programs

Systems to Confirm sTUDEnT Eligibility for Aid Key Web Sites for exchanging
FSA funds can only be given to regular students who are enrolled
in eligible programs, and meet other eligibility criteria described in student data
the law. As part of its administrative requirements, your school must A participating school exchanges
establish internal systems to confirm that a student is eligible for FSA student data through several important
funds. FSA systems.
In general, the student must:
• Central Processing System (CPS) for
• have a Social Security Number student applications (FAFSA) data
• be a citizen or eligible noncitizen • Common Origination and
Disbursement (COD) for Pell, ACG/
• not be in default on an FSA loan or owe an overpayment on
SMART, and TEACH grants; and for
an FSA grant
Direct Loans
• if a male in the applicable age range, be registered with • National Student Loan System (NSLDS)
Selective Service Web site for the student’s financial aid
history, enrollment information, and
Students are also required to submit a Free Application for Federal transfer monitoring.
Student Aid (FAFSA) to calculate an “Expected Family Contribution”
(EFC) that the school uses to determine the student’s financial need The Student Aid Internet Gateway (SAIG)
for aid. The FAFSA can be filed on-line at www.fafsa.ed.gov. manages enrollment for several of these
As a part of FAFSA processing, the eligibility requirements listed systems, and also hosts the electronic
above will be confirmed using data matches with the National Student mailbox (or “destination point”) for data
Loan Data System and other federal databases such as Social Security, exchanges with FSA systems.
We’ll discuss these systems in more
Selective Service, and Immigration (Department of Homeland
detail in Chapter 2.
Security). If the match is unsuccessful or indicates that the student
is not eligible, the school will need to resolve the inconsistency and
document the student’s eligibility before providing any FSA funds to
More information
the student.
The school will also be required to verify the reported financial Student eligibility requirements are
data for those students selected for verification. This process is covered in detail in the Application and
described in detail in the Application and Verification Guide (see sidebar). Verification Guide and Volume 1 of the
Individual FSA programs have additional eligibility requirements. FSA Handbook.
For instance, Pell Grants and FSEOG are generally only available These publications are available on
to students who have not yet earned a baccalaureate degree, and the Information for Financial Aid
Professionals Web site (IFAP) at:
a student must meet specific academic criteria to receive an ACG/
www.ifap.ed.gov
SMART or TEACH grant. Also note that special rules apply
to incarcerated students and correspondence students. These
requirements are described in detail in Volume 1 of the FSA Handbook.
Once the student is enrolled, other eligibility requirements come
into play, such as the requirement that a student maintain satisfactory
progress in his/her program of study. In addition, a student may
lose FSA eligibility if convicted for a drug offense that occurred while
enrolled and receiving FSA funds.

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FSA New School Guide 2009

Definition of family Staffing & THIRD PARTY SERVICERS

When preparing to participate in the FSA programs, your school
For purposes of “separation of functions,” needs to ensure that it has adequate staff to provide services to
a member of an individual’s family is a students and meet the administrative requirements of the programs.
parent, sibling, spouse, child, spouse’s
parent or sibling’s, or child’s spouse. Adequate staffing & coordination of information
The number of staff that is adequate depends on the number of
students aided, the number and types of programs in which the school
Electronic processes & participates, the number of applicants evaluated and processed, the
separation of functions amount of funds administered, and the type of financial aid delivery
While electronic processes enhance system the school uses.
accuracy and efficiency, they also can When planning for participation, remember that your school
blur separation of functions so the needs to ensure coordination of information between its administrative
awarding and disbursement occur offices. For instance, the financial aid office needs to know if a student
virtually simultaneously. Schools must ceases making satisfactory progress, because the student will no longer
set up controls that prevent an individual be eligible for FSA funds.
or an office from having the authority (or
the ability) to perform both functions. In Separation of functions
addition, your system also should have In addition, the organization of your school’s administrative offices
controls that prevent cross-functional
must be organized in such a way that there is a separation of function
tampering. For example, financial aid
that ensures that no single person or office can authorize FSA awards
office employees should not be able to
change data elements that are entered and disburse the awarded funds. Small schools are not exempt from
by the registrar’s office. this requirement even though they may have limited staff. Individuals
Finally, your system should only working in either authorization or disbursement may perform other
allow individuals with special security functions as well, but not both authorization and disbursement. These
classifications to make changes to the two functions must be performed by individuals who are not members
programs that determine student need of the same family and who do not together exercise substantial
and awards, and it should be able to control over the school. If a school performs any aspect of these
identify the individuals who functions via computer, no one person may have the ability to change
make such changes. data that affect both authorization and disbursement.
For more on information security
requirements, see Volume 2 of the FSA
Hiring prohibitions
Handbook.
When filling positions, your school needs to ensure that none of
the applicants have been debarred or suspended, or have previous
offenses or liabilities that would affect its eligibility to participate in the
Checking debarment
FSA programs.
You can check to see if an individual or
school has been debarred by using the • Before a school may receive FSA funding, it must certify that
Excluded Parties List System: neither the school nor its employees have been debarred
https://www.epls.gov/ or suspended by a federal agency. (See Volume 2 of the FSA
Handbook for a discussion of the school’s responsibilities.)

• A school may not employ an individual who will be involved

in the administration of FSA programs or the receipt of FSA
funds if the individual has been convicted of (or has pled
nolo contendere or guilty) to a crime involving the acquisition,
use, or expenditure of federal, state, or local government
funds, or has been administratively or judicially determined
to have committed fraud or any other material violation of
law involving federal, state, or local government funds.

• A school is not financially responsible if any person who

exercises substantial control over the school (or any members

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 Ch. 1: Participating in the FSA Programs

of the person’s family alone or together) owes a liability for an

Notifying ED of Third-party
FSA program violation or has ever exercised substantial control
over another school (or a third-party servicer) that owes a servicers
liability for an FSA program violation. A school must notify ED within 10 days
if the school begins or ends a contract
Third-party servicers with a third-party servicer (use the
Schools are permitted to contract with consultants or third-party E-App—Section J). You don’t need to
servicers to carry out some of the administrative requirements for the provide a copy of the contract unless ED
FSA programs. However, the school ultimately is responsible for the requests a copy.
use of FSA funds and will be held accountable if the consultant or Also note that your school must obtain
a signed Certification By Lower Tier
servicer mismanages the programs or program funds.
Contractor from all of its third-party
When the school contracts with a servicer, the servicer must agree
servicers, including those whose
to comply with all applicable requirements, to refer any suspicion contract begins at any time after the
of fraudulent or criminal conduct in relation to FSA program PPA was signed. Please note that while
administration to ED’s Office of Inspector General, and, if the servicer schools must report ATB Testers with
disburses funds, to confirm student eligibility and return FSA funds (if the third-party servicers in Section J of
required) when a student withdraws. the E-App, they are not considered a
If the contract is terminated, or the servicer ceases to perform third-party servicer and the school does
any functions prescribed under the contract, the servicer must return not need to obtain a signed Certification
to the school all unexpended FSA funds and records related to the By Lower Tier Contractor from the ATB
servicer’s administration of the school’s participation in the FSA Tester(s)
programs.
As when hiring individuals, a school may not contract with a
third-party servicer who has been debarred or suspended, or has
previous offenses or liabilities that make the servicer ineligible for
FSA purposes. (See Volume 2 of the FSA Handbook for additional
information.)

Third-party servicers defined

A third-party servicer is an individual or organization that A person or organization performing the following functions is
enters into a contract (written or otherwise) with a school to not considered to be a third-party servicer and is not subject to
administer any aspect of the school’s FSA participation, such third-party servicer requirements.
as: • performing lockbox processing of loan payments;
• performing normal electronic fund transfers (EFTs) after
• processing student financial aid applications, performing being initiated by the school;
need analysis, and determining student eligibility or • publishing ability-to-benefit tests;
related activities; • financial and compliance auditing;
• certifying loans, servicing loans, or collecting loans; • mailing documents prepared by a school or warehousing
• processing output documents for payment to students, school records;
and receiving, disbursing, or delivering FSA funds; • participating in a written arrangement with other eligible
• conducting required student consumer information schools to make eligibility determinations and FSA awards
services; for certain students; and
• preparing and certifying requests for advance cash • providing computer services or software.
monitoring or reimbursement funding, preparing and
submitting notices and applications required of eligible An employee of a school is not a third-party servicer. For this
and participating schools, or preparing the Fiscal purpose, an employee is one who:
Operations Report and Application to Participate (FISAP); • works on a full-time, part-time, or temporary basis,
or • performs all duties on site at the school under the
• processing enrollment verification for deferment forms or supervision of the school,
Student Status Confirmation Reports. • is paid directly by the school,
• is not employed by or associated with a third-party
servicer, and
• is not a third-party servicer for any other school.

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FSA New School Guide 2009

Checklist Continuing participation requirements

After a school begins participating in the FSA programs, it is
See Appendix B for a checklist of responsible for following certain general requirements. We’ve listed
requirements for participation in the FSA these requirements in Appendix B—they are discussed in greater
programs. In addition to student aid and detail in Volume 2 of the Federal Student Financial Aid Handbook.
systems requirements, note that a school Several of these requirements are of particular interest to new
also must meet general requirements for
schools, so we will briefly describe them below.
student consumer information, campus
security, privacy of educational records,
etc., that are not directly connected to Cohort Default Rates
student aid. Your school may lose eligibility to participate in the FSA programs
if it has a cohort default rate for Stafford (Subsidized/Unsubsidized
Direct) loans that equals or exceeds 25% for one or more of the three
Establishing school and financial most recent fiscal years or if the most recent cohort default rate is
aid procedures greater than 40%.
Generally speaking, a cohort default rate (CDR) is the percentage
A school is required to have written of a school’s student borrowers who enter repayment on Direct
policies for admissions, satisfactory Subsidized or Unsubsidized (Stafford/Ford) loans during a particular
academic progress, refunds, and other fiscal year and who default before the end of the next fiscal year.
determinations, and in many cases, the
(There are other criteria and exceptions — see the complete
school is required to make these policies
definition in the Cohort Default Rate Guide, which is available in the
readily available to enrolled students
and/or prospective students and their Publications area of the IFAP Web site.)
families. The Department releases draft default rates in February to allow
In general, it is a good practice to schools an opportunity to review and correct the data that will be used
maintain a procedures manual at your to calculate their official cohort default rates. In the early fall of each
school that describes how application year, the Department issues the official cohort default rates. Under
information is verified, how aid is certain conditions, a school may be able to submit an appeal if it is
awarded and disbursed, the process subject to a loss of eligibility. See the Cohort Default Rate Guide for more
for requesting and handling special information.
circumstances (use of professional We encourage schools to take an active role in monitoring their
judgment), and the process for handling default rates and taking preventive measures to reduce the potential
satisfactory academic progress appeals,
for default. Thorough loan counseling is essential to make sure
etc. A procedures manual helps ensure
that students only borrow what they need for educational expenses,
equal treatment for all of your students,
and can be used to demonstrate understand the responsibility to repay the loan, and know their
compliance with FSA program rules. repayment options. In addition, many schools have found it helpful
to stay in touch with their student borrowers during repayment, to
identify borrowers who are in delinquency, and to remind borrowers
of their repayment options, including forbearance and deferment.

90/10 rule
A proprietary institution may derive no more than 90% of its
revenues from the FSA programs. The calculation rules (what can be
counted in overall revenues versus revenues from FSA programs) are
described in Volume 2 of the FSA Handbook.
If a school fails to satisfy the 90/10 Rule for one year, its
participation status becomes provisional for two fiscal years. However,
if the school does not satisfy the 90/10 Rule for 2 consecutive fiscal
years, it loses its eligibility to participate in the FSA programs for at
least 2 fiscal years. Schools have 90 days after their most recently
completed fiscal year has ended to report to the Department if they
did not satisfy the 90/10 Rule for the fiscal year.

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 Ch. 1: Participating in the FSA Programs

Other financial standards Waiver of audit requirement

The Department calculates financial ratios (primary reserve,
equity, and net income) for proprietary and private non-profit schools A proprietary school can request a
based on their annual audited financial statements. The ratios are waiver of the requirement for an annual
then used to derive a composite score for the school. audit if it disbursed less than $200,000
A proprietary or private non-profit school must maintain a in each of the two most recently
completed award years. (A new school
composite score of 1.5 to be considered financially responsible. A
will not be eligible for an audit waiver
school with a composite score below 1.5 may participate under
until it has participated in the FSA
an alternative standard of financial responsibility which includes programs under the same ownership
additional Department oversight and may require the school to post a for at least 3 award years preceding the
letter of credit. school’s waiver request.)
In addition, a school must maintain sufficient cash reserves to
return FSA funds when a student withdraws, and it must be current in The Department can approve a waiver of
its debt payments. the audit requirement for up to 3 years,
but note that the ensuing audit will still
Audits cover the years of the waiver approval.
A school generally must have an independent auditor conduct an
annual audit of the school’s compliance with the laws and regulations A public or private nonprofit institution
that expends less than $500,000 in
that are applicable to the FSA programs in which the school
federal funds in a fiscal year is exempt
participates (compliance audit), and an audit of the school’s financial
from filing compliance audits after the
statements (financial statement audit). school gains initial eligibility.
Normally, all financial statement and compliance audits conducted
to satisfy the annual audit requirement must be done in accordance
with the Department’s FSA Audit Guide. However, public colleges, State FSA Audit Guide
and local universities, and non-profit schools must have their audits
The full name of the FSA Audit Guide
conducted in accordance with OMB Circular A-133. (Circular A-133
is “Audits of Federal Student Financial
allows an FSA compliance audit under the criteria of the Department’s Assistance Programs at Participating
FSA Audit Guide under limited circumstances.) Institutions and Institution Servicers.”
All audits must be based on the school’s fiscal year. FSA audits The FSA Audit Guide can be found in the
must be submitted to the Department within six months after the close Publications area of the IFAP Web site.
of the fiscal year, while Circular A-133 Audits must be submitted within
nine months after the close of the fiscal year. All audits are submitted
to the Department through the eZ-Audit Web site, which is the same OMB Circular A-133
site used to submit the audits required for initial eligibility.
Circular A-133 is a release of the
Office of Management and Budget.
Program reviews
Its full name is “Audits of States,
The Department conducts program reviews to confirm that a Local Governments, and Non-profit
school meets FSA requirements for institutional eligibility, financial Organizations”
responsibility, and administrative capability. Program reviews are not www.whitehouse.gov/omb/circulars
conducted on a regular schedule. The Department selects schools for
review giving priority to those that meet criteria specified in the law.
These program reviews are typically conducted by the School
Participation Teams, but may be conducted by the Department’s
Office of the Inspector General.
Program reviews may also be conducted by the agencies which
guaranty the school’s FFEL program loans. These reviews will
focus primarily on FFEL administration and the General Provisions
requirements in the regulations that relate to FFEL recipients. Schools
with high student loan default rates are more likely to have a program
review conducted by a guaranty agency.
Schools participating in the FSA programs must cooperate with
program reviews conducted by representatives of the Department, the
Office of the Inspector General, and guaranty agencies.

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FSA New School Guide 2009

Updating & Recertification Updating school application data

Schools must apply for recertification Expanding eligibility
3 to 6 months prior to the expiration The ECAR that the Department sends to the school identifies the
of their PPA. The Reapplication Date educational programs and locations that are eligible. (The eligibility
indicated on the PPA is the deadline for
of a school and its programs does not automatically include separate
submitting the recertification application
locations and extensions.) If a school wishes to extend its eligibility to
through the E-App Web site. While ED
will send reminder notices about this include a location at which at least 50% of an education program is
requirement, the school is responsible offered, or to provide aid to students in an educational program that
for submitting the application by the is not listed on the ECAR, the school must ensure that it applies and
deadline even if those notices are not receives approval for any new educational program or location.
received. For a school that is new to the FSA programs, new additional
locations will not generally be allowed during the initial provisional
If ED receives an application no later certification period. Applications for adding additional locations are
than 90 days prior to the expiration usually not considered until the school has submitted a compliance
date of the PPA and the application is audit covering a full year of participation, and that audit has been
materially complete when submitted, reviewed by the Department.
the school will automatically be on a
Generally, schools in their initial period of participation may
month-to-month certification until ED
not award FSA funds to a student in an educational program that is
issues its decision on the application.
During the recertification process, the not included in the school’s approval documents. During the initial
school must report updated information period of participation in the FSA programs for these school, the
to ED. Department will not approve additional educational programs that
would expand the school’s eligibility.
If the school remains eligible, a new An exception would be considered if the school demonstrates that
PPA will be issued in response to the the program has been legally authorized and continuously provided
recertification application. The school for at least two years prior to the date of the request. “Continuously
may remain on provisional certification provided” includes the requirement that there have been students
or may be fully certified. After the initial enrolled and attending the program for the entire two-year period,
approval, schools may be recertified for with no gaps other than for normal, scheduled vacation breaks
up to 4 years.
and holiday periods, or for a period when the school temporarily
After the first recertification, schools
closed due to a natural disaster that directly affected the school or its
are typically recertified for 3 to 6 years.
However, schools that fail to meet the students.
eligibility requirements may be denied
recertification. Reporting Changes
A school is required to report changes to certain information on
its application within 10 days, as listed in the chart on the following
pages. If a change occurs in an E-App item not listed on the following
pages, the school must update the information when it applies for
recertification.
When a school submits an E-App to report a change, if further
action is needed, the Department will tell the school how to proceed,
including what materials and what additional completed sections of
the E-App need to be submitted. If you have questions about changes
and procedures, you should contact the School Participation Team for
your state.

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 Ch. 1: Participating in the FSA Programs

E-App changes requiring prior written approval from ED

All schools must report and wait for written approval before disbursing funds when the following occur
(the number in parentheses refers to the number of the question on the E-App):

• a change in accrediting agency (notify the Department, when you begin making any change that
deals with your school’s institution-wide accreditation) (#15);
• a change in state authorizing agency (#17);
• a change in institutional structure (#18);
• an increase in the level of educational programs beyond the scope of current approval (#26);
• the addition of accredited and licensed nondegree programs beyond the current approval (#27);
• the addition of short-term (300–599 clock hour) programs (#27);
• changes to the FSA programs for which the school is approved.* (Approvals from your accrediting
agency and state authorizing agency are not required for this change.) (#37);
• a change in the type of ownership (#22-24);
• a change in ownership (#24); and
• the addition of an accredited and licensed location (#30) when a school—
»» is provisionally certified; or
»» is on the cash monitoring or reimbursement system of payment; or
»» has acquired the assets of another school that provided educational programs at that location
during the preceding year, and the other school participated in the FSA programs during that
year; or
»» would be subject to a loss of eligibility under the cohort default rate regulations (34 CFR
668.188) if it adds that location; or
»» has been advised by the Department that the Department must approve any new location
before the school may begin disbursing FSA funds.

When one of the changes that requires the Department’s written approval occurs, a school must notify
the Department. The school must apply to the Department for approval of the change via the electronic
application within 10 calendar days of the change. As soon as the school has received approvals for the
change from its accrediting agency and state authorizing agency, it must send to the Department:

• copies of the approval for the change,

• any required documentation, and
• Section L of the E-App containing the original signature of the appropriate person

* For TEACH Grants, select “Add TEACH Grants” and then use question 69 to explain the eligibility criteria that your
school meets for TEACH Grant participation. See Dear Colleague Letter GEN 08-07, posted on June 3, 2008.

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FSA New School Guide 2009

E-App changes that do not require ED’s written approval

Though they need not wait for the Department’s approval before disbursing funds, all schools must report
the following information to the Department.

• change to name of the school* (#2)

• change to the name of a CEO, president, or chancellor (#10)
• change to the name of the chief fiscal officer or chief financial officer (#11)
• change in the individual designated as the lead program administrator (financial aid administrator) for
the FSA programs (#12)
• change in governance of a public institution (#24)
• a decrease in the level of program offering (e.g., the school drops all its graduate programs) (#26)
• change from or to clock hours or credit hours (#27)
• address change for a principal location* (#29)
• name or address change for other locations* (#30)
• the closure of a branch campus or additional location that the school was required to report (#30)
• the addition of an accredited and licensed location unless the school meets the conditions specified on
the previous page (34 CFR 600.20(c)(1)) (#30)
• change to the school’s third-party servicers that deal with the FSA program funds (#58)

When one of these changes occurs, a school must notify the Department by reporting the change and the
date of the change to the Department via the E-App within 10 calendar days of the change. In addition, a
school must send to the address below

• any required supporting documentation, and

• Section L of the E-App containing the original signature of the appropriate person.

Foreign school reporting on the E-App

A foreign school must report changes to its postsecondary authorization (#42), degree authorization (#43),
program equivalence (#44), program criteria (#45), or to its U.S. administrative or recruiting office (#46).

A foreign medical school must report changes to the facility at which it provides instruction (#47), its
authorizing entity (#46), the approval of its authorizing entity (#46), the length of its program (#46), or the
clinical or medical instruction that it provides in the U.S.

Other changes reported on the E-App

•
• Change to address for FSA mailings to an address different than the legal street address (#13)
• Change to address for FSA mailings to an additional location that is different than the legal street
address (#30)
• Change of Taxpayer Identification Number (TIN) (#6a)
• Change of DUNS number (#6b)
• Change in board members (#20)
• Reporting foreign gifts (see Chapter 12) (#71)
• Change to institution’s Web site address (#9)
• Change of phone/fax/e-mail of CEO, president, or chancellor (#10)
• Change of phone/fax/e-mail of CFO (#11)
• Change of phone/fax/e-mail of financial aid administrator (#12)

• As soon as it has received approvals for the change from its accrediting agency and state authorization
agency,
• a school must send the Department copies of the approvals for change.

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 Chapter
Participating in FSA
Systems
All schools that participate in the Federal Student Aid programs must be
2
able to exchange student and other data through the Department’s electronic
systems. This chapter discusses the major FSA systems that are used to track the
student’s eligibility, payments, and cumulative aid received, and to adjust school
authorizations.

Overview of FSA Systems, Web sites, and software CHAPTER 2 HIGHLIGHTS

There are many different kinds of data exchanges between schools

and FSA systems, but virtually all of them are conducted over the ❚❘ Enrolling in SAIG
Internet. The key student records that your school is required to share
with the Department are ➔ SAIG Mailbox/Destination Point
used for student records ((ISIRs and
• the Institutional Student Information Record (ISIR) COD Common Records, DL &
NSLDS reports)
generated by the Central Processing System (CPS), which
➔ School must designate Destination
contains student data from the FAFSA and other federal Point Administrator (DPA)
databases, ➔ DPA must sign and submit SAIG
• the “common record” for the Common Origination and enrollment form
Disbursement (COD) system, which contains award and ➔ Also use SAIG Enrollment Site to
payment information for FSA grants and Direct Loans, sign up for eCDR packages, FISAP
• the Enrollment Monitoring Report through the National (Campus-Based schools), CPS on-
Student Loan Data System (NSLDS), which is used to line access, and NSLDS on-line
establish a student’s eligibility for in-school loan deferments access
(even if your school does not offer FSA loans), and ❚❘ Using the SAIG site to enroll in other
• the Transfer Monitoring Report through NSLDS, which is FSA systems
used to track aid that may have been received by a transfer ➔ FAA Access to the CPS
➔ NSLDS
student at a previous school.
❚❘ Enrolling in COD
➔ School must designate COD
Individual student records are typically combined into “batch files” Security Administrator
for convenience. To exchange these batch files with FSA systems, you ➔ Contact COD School Relations
will need to enroll for an electronic mailbox or “Destination Point” at ❚❘ Enrolling in the G5 payment system
the Student Aid Internet Gateway (SAIG), which will be our first topic. ❚❘ Enrolling in eZ-Audit
The advantage of batch files is that they make it easy to submit data for ❚❘ Enrolling in the eMPN Web site
many students at one time, since they can usually be generated from ❚❘ Surveys & reports
databases kept at your school. ➔ IPEDS
Traditionally, schools have used local PC or mainframe software to ➔ Campus Security
view and correct student records such as the ISIR and COD common ➔ Equity in Athletics
record. We’ll discuss some of your systems and software options in the
next chapter.
In recent years, it has also become possible for schools to view and
edit these records directly on the Web. Therefore, you’ll also need to
enroll for access to the CPS, COD, and NSLDS Web sites, as described
later in this chapter. Using a Web site rather than submitting a batch
file may be practical if you only need to report for a small number of
students, for instance, reporting recent transfer students to NSLDS.
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FSA New School Guide 2009
Receiving FSA funds
Beginning Direct Loans participation To receive FSA funds (other than FFEL loan funds), your school
Send your e-mail request to will also need to enroll in the Department’s G5 payment system.
[email protected], and Drawing funds from G5 and paying students will usually be the
include: responsibility of your business or fiscal office.
Schools that participate in the Campus-Based programs also need
• Name of the school to enroll in the eCampus-Based Web site to report prior-year data and to
• Address including city, state and zip apply for funds for the coming year.
code
• Person requesting participation
Beginning participation in Direct Loans
(Financial Aid Director or an official
If your school has applied to participate in the Direct Loan
listed on the E-App), with e-mail and
phone number of the official Program and has been approved (as indicated on the PPA), you must
• OPEID, COD ID, and DUNS number send an e-mail request to the COD School Relations Team to begin
Request for Federal School Code (if not actively participating in the Direct Loan Program (see sidebar).
yet assigned) If you are enrolling an additional location for its own DL code
separate from the main campus DL code, you must first obtain a
Guarantee agency listing unique DUNS number for the additional location. You must also
ensure that the location and its DUNS number have been reported
To find a list of guaranty agencies, through the E-App, and that your school has received ED approval
organized by the state for which they
for the location. (If you do not have a DUNS number for a location,
are the designated guarantor and
listing any other states they serve, visit
you can contact Dun & Bradstreet at 1-800-333-0505 to have a number
the Department’s Education Resource assigned.)
Organizations Directory of State If everything is in order, your school will receive a Welcome Letter
Guaranty Agencies at which will include a Direct Loan Code and will explain the next steps
wdcrobcolp01.ed.gov/Programs/ in the process.
EROD/org_list.cfm?category_cd=SGA
Beginning participation in FFEL
College Navigator Web site If your school has elected to participate in the FFEL programs and
has been approved (as indicated on the PPA), you should contact one
Student enrollment, default rates,
or more guaranty agencies that serve the state in which the school is
crime statistics, and other information
located.
provided by the school through the
IPEDS surveys is used to populate the Guaranty agencies will provide information on their application
College Navigator Web site, which process, any forms needed to enroll in their electronic services, and
enables prospective students and details of the training and other services they provide.
their parents to search and compare
characteristics of postsecondary Other Web data exchanges
schools.. Schools must use electronic processes to submit and receive school
performance data with the Department, such as the eCDR process
The College Navigator site is for electronic delivery of annual cohort default rate information.
maintained by the National Center for (Also note that your school is required to submit audits and financial
Education Statistics: information through the eZ-Audit Web site; your school was required to
nces.ed.gov/collegenavigator/
enroll in this site as part of its initial application for eligibility.)
Finally, schools need to use other Department Web sites to report
information that is not directly related to the FSA programs:

• IPEDS surveys. Student enrollment, graduation rates, and

other school characteristics.
• Campus Security report. Annual report of crimes committed on
the school’s campus.
• Equity in Athletics report. Participation rates, financial support,
and other information on men’s and women’s intercollegiate
athletic programs.

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 Ch. 2: Participating in FSA Systems

Enrolling in SAIG
SAIG Enrollment
Purpose To complete your SAIG Enrollment
By enrolling to participate in the Student Aid Internet Gateway Form go to:
(SAIG), your school can begin to exchange student data electronically www.fsawebenroll.ed.gov
with FSA systems through one or more SAIG Mailboxes (Destination
Points). Your SAIG enrollment also controls access to several FSA For assistance, contact:
CPS/SAIG Customer Service:
Web sites, such as the CPS and NSLDS Web sites (FAA Access to CPS
1-800-330-5947
and NSLDS Professional Access). See the following sections for CPS and
NSLDS options.

How it works Mail SAIG Enrollment Forms

Your school determines which services it needs and which staff
to enroll as Destination Point Administrators (DPAs). Your school CPS/SAIG Technical Support
must designate a Primary DPA. This individual is the only person P.O. BOX 4429
within the organization who may enroll other organizational staff Iowa City, IA 52244-4229
for additional SAIG destination points (mailboxes) and associated
or overnight to:
services. CPS/SAIG Technical Support
The Primary DPA can use the SAIG Enrollment Web site to add 2400 Oakdale Blvd.
or remove users, edit information about the entity, or change the Coralville, IA 52241
entity’s enrollment in various SAIG services. The Primary DPA may
choose to enroll additional DPAs with individual mailboxes for each
service or function or combine services and functions within a single
SAIG Mailbox. DPA and NSLDS

Only the DPA for a destination point

How to enroll in SAIG can access the NSLDS Web site using
To sign up for an SAIG Mailbox, go to the SAIG Enrollment home the TG number for that mailbox. Other
page and select Enroll for SAIG Mailbox. You will need the following users of that mailbox have access to all
information of the batch files sent to that mailbox,
including Enrollment and Transfer
• your school’s OPEID number, Federal School Code, and Monitoring reports.
Direct Loan code (if participating in Direct Loans). The
OPEID is shown on your school’s Program Participation A DPA can enroll additional staff in
Agreement (PPA) or ECAR, which can be viewed on the NSLDS Online by going to the SAIG
E-App site. Enrollment Web site and selecting
“Add Another NSLDS OnLine User.”
Note that each additional NSLDS user
• name, address, Social Security Number (SSN), and date of
will have his or her own SAIG Mailbox
birth for each Destination Point Administrator.
and TG number, and will be the DPA
for that Mailbox.
After completing the on-line enrollment process, you will be
instructed to print, complete and sign the enrollment signature https://www.fsawebenroll.ed.gov
documents. Be sure

• each DPA reads and signs the Responsibilities of the Destination Other SAIG users
Point Administrator statement. In addition to participating schools, the
following entities use SAIG mailboxes
• you have obtained the necessary signatures for the to exchange data with ED:
responsibilities section of the Certification form. By signing • Third-party servicers
this form, your school certifies that each DPA will follow the • FFEL guaranty agencies or their
security requirements for permitting other people to use his/ servicers
her destination point. (Your President, CEO, Chancellor, or • FFEL lenders or and servicers
equivalent persons can designate another person to be your
school’s responsible authorizing official.)
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FSA New School Guide 2009

Services available through your SAIG mailbox

You may enroll for the following services through the SAIG Web site using your
school’s OPEID or other identifier (as indicated):

• Central Processing System • NSLDS eCDR

[Federal School Code] Submit initial FAFSAs, FAFSA [OPEID] Receive the electronic Cohort Default Rate
corrections and/or receive ISIRs report

• Pell Grant Processing (COD System) • NSLDS Professional Access

[Pell code] Submit and receive Pell Grant payment data [OPEID] Web site to update NSLDS information: Loan
History, Pell Grant, Enrollment History, Overpayment
• Direct Loan Processing (COD system) History, Enrollment Reporting Schedule, Data Provider
[Direct Loan code] Submit and receive Direct Loan award/ Schedule, On-line Reports, Transfer Monitoring, and
payment data Origination Contacts. Schools also have an option
to select Enrollment Access and /or Overpayment
Updates .
• Direct Loan Servicing
NOTE: Only the DPA for a mailbox can have access to
[Direct Loan code] Submit and receive Direct Loan reports
NSLDS On-line. so you will have to create a separate
SAIG Mailbox for each staff member who needs on-line
• Direct Loan Borrower Delinquency Report access to NSLDS.
[Direct Loan code] Receive Direct Loan Borrower
Delinquency Report
• FISAP/eCampus-Based
[OPEID] Participate in Campus-Based Programs
• NSLDS Batch
[OPEID] Submit and receive NSLDS batch files: Financial
Aid History/Transfer Student Monitoring, Enrollment
Roster Files (formerly known as SSCRs), Perkins Loan data

Mail the completed documents to CPS/SAIG (see sidebar on

previous page for address).
Adding SAIG Users to an SAIG CPS/SAIG Customer Service will contact your school with the
Mailbox processed enrollment information and TG Number for that Mailbox
(Destination Point.). The DPA will also receive the processed
The DPA can give multiple individuals enrollment information by mail or e-mail. DPAs must contact CPS/
(SAIG Users) access to the SAIG SAIG Customer Service to activate the TG Number for that Mailbox
mailbox by obtaining signatures
(Destination Point).
on the SAIG User Agreement (see
Attachment B, SAIG Enrollment Form).
SAIG User Agreements must be kept on file at your school.

Access to the data files in your SAIG Adding or updating SAIG mailbox information
mailbox(es) is controlled through your To add a new Destination Point (SAIG mailbox with assigned
local software (e.g., EDConnect, or TG Number) or designate a new individual as DPA, you will need
equivalent software) as discussed in to submit a new SAIG enrollment form. Signature pages are also
Chapter 3. required when changing authentication information (SSN, date of
birth, password), enrolling for eCDR services, and adding or changing
services if the destination type is listed as “Third Party Servicer.”
You may use the SAIG Web site to modify existing services for
a destination point, change demographic information, delete
a destination point, or enroll for a test mailbox identification
number. (The SAIG Web site can also be used to update enrollment
information for other Web services, such as the CPS and NSLDS Web
sites, as described later in this chapter.)

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 Ch. 2: Participating in FSA Systems

Enrolling in FAA ACCESS to CPS

Purpose
The FAA Access to CPS Web site enables you to view and correct aid
application information for students who are considering attending
your school. (FAA stands for “Financial Aid Administrator.”) In
addition, you can use this site to enter FAFSA or Renewal FAFSA FSA User ID and Password
information for a student, review or analyze verification data, and
Beginning in May 17, 2009, users will
perform “Return of Title IV Aid” calculations for students who be issued a new FSA User ID and will
withdraw from your school. establish a password. (Previously, CPS
users logged in with a PIN.)
How it works Be sure that you enter a valid e-mail
The Central Processing System (CPS) is used address for the person you are adding
on the demographic information page.
• to collect and verify the information that the student submits An e-mail containing the FSA User ID
on the Free Application for Federal Student Aid or FAFSA on the will be sent to that address.
Web,

• to calculate the Expected Family Contribution (EFC) that you

use to award FSA funds, and

• to check certain information on the application against

several major federal databases, including Social Security,
Selective Service, Immigration (Department of Homeland
Security), and the National Student Loan Data System
(NSLDS).

The student’s application information is sent to your school in

the form of an Institutional Student Information Record (ISIR),
which includes comments (based on CPS review of the application
information) and the student’s financial aid history from NSLDS. This
electronic document serves as the basis for any later corrections or
adjustments.

How to enroll in FAA Access to CPS

Your school must obtain an SAIG Mailbox as described in the
previous section. Once the SAIG Mailbox has been established, the
Destination Point Administrator (DPA) assigned to the mailbox
that is used to send and receive FAFSA and ISIR correction data will
automatically have access to the FAA Access to the CPS Web site.

Enrolling Additional Users on FAA Access to CPS

Using the TG number for the Mailbox that is used to exchange
CPS data for your school, the DPA can set up access for additional
users from the SAIG enrollment site. The DPA has the option to
enroll new users with the same access rights as the DPA (owner of
the TG number, who always has full rights) or the option to choose
specific processing year cycles and level of access (read or write). Read
access means that the user can view but not change data, while Write
access enables a user to change the data. If your school has multiple
locations with different Federal School Codes, the DPA can limit which
campuses the user can access in order to view, add and/or update
records.

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FSA New School Guide 2009

The DPA must complete and print an FAA User Statement for each
employee to be granted CPS Web access. Your school must keep a
copy of the FAA User Agreement in its files. To add multiple users, a
DPA must return to the “Add a new FAA User” screen and repeat this
process.
Newly enrolled users will receive an e-mail message containing a
link to the online enrollment system. During the enrollment process
the user will select and respond to several challenge questions and
establish a password. Once enrollment is complete, the user will be
e-mailed his or her FSA User ID.

Changing an existing FAA user or user rights

A DPA can also use the SAIG Enrollment site to make changes
to information and access rights for existing users. Select the “Enroll
for FAA Online Access” icon on the first page and provide the TG
number for the mailbox used to send and receive FAFSA and ISIR
correction data. By selecting the “View/Change an Existing FAA User
or User Rights” tab, you can begin to make the changes to your SAIG
enrollment form. Once you have updated the record, you can select
additional users to change/update if needed.

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 Ch. 2: Participating in FSA Systems

Enrolling in the Common Origination &

Disbursement System (COD)

Purpose
The Common Origination & Disbursement System (COD) enables
your school to set payment amounts and payment dates for students
who are eligible to receive FSA grants (Pell, ACG/SMART, TEACH)
and Direct Loans.

How it works
You may send new and updated student records to the COD
system by sending batch files through your SAIG mailbox, or create or
update records on the COD Web site.
You can use the COD Web site to view award/disbursement
records (for FSA grants and Direct Loans) that your school has
transmitted to the COD Processor, as well as other documents and
reports processed by COD.
COD Web site features
Enrolling in the COD Web site
Your school must submit a written request to the COD School • view, update, and create other
Relations Center to establish one or more Security Administrators with school users
• view, update, and create award and
the highest level of access (“Level 5,” see below) to the COD Web site.
disbursement data
The request must be on your school’s letterhead (see box on next • view reconciliation and drawdown
page for required information). information
COD School Relations will send a user name and password to the • reset COD passwords, update and
e-mail address that you provided in the request letter. For security lock out users
reasons, the user name and password will be sent in separate e-mail • add and edit messages
notifications. This password is sensitive information and should not be
shared with anyone.
A COD Security Administrator can create new User Profiles on the COD School Relations
COD Web site (under the “User” menu) to give access to other users
1-800-848-0978
at your school. Your COD Security Administrator creates a temporary or
password which is automatically sent to each new user via e-mail. New [email protected].
users should use the temporary password to log into the COD Web site
and then update/modify this password.
The Security Administrator can set different user levels for COD
Web site users. Security levels range from 1 to 5.

• Level 1 can perform credit check requests.

• Level 2 can only “view” information.
• Levels 3, 4, and 5 can create and update person (student/
parent borrower), awards and disbursements, order
and request school correspondence, request Pell Grant
Administrative Relief, update school report options for Direct
Loans, and update School Balance Confirmation for Direct
Loans.

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FSA New School Guide 2009

Security Administrator information

• School name and COD ID (for your school’s
COD ID, contact the COD School Relations
Center)
• Security administrator’s first and last name, job
title, work address, phone, fax, and e-mail Mail the signed security
• Security administrator’s signature administrator request letter (printed
• Approving authority’s name, title, work on your school’s letterhead) to:
telephone number, e-mail address, and
signature (this must be a different and higher- U.S. Department of Education
ranking school official unless here is no Attn: COD Web Access
higher-ranking school official than the security COD School Relations Center
administrator) P.O. Box 9003
• A “keyword” of no more than 20 characters Niagara Falls, NY 14302
that can be used to identify the user if he or
she forgets the Web site password
• School’s Third-Party Servicer (optional)

Deactivation of Security Administrator ID

Your security administrator ID will be deactivated if you do not:
• Reset a temporary password within a 24-hour period;
• Access the COD Web site for a consecutive 6-month period following the first visit
and change of temporary password; or
• Access the COD Web site for a consecutive 3-month period following the last visit
of a user who has logged onto the COD Web site more than one previous time.

You can reactivate your security administrator ID by contacting COD School Relations.

Only a Security Administrator (Level 5) can add and update

processing options, create new users, update user profiles, lock/unlock
users, reset user passwords, and add, edit, and delete school messages.
The Security Administrator can also update the Direct Loan
Officer contact information/mailing address and the Pell Grant
Officer contact information/mailing address. However, updates to
the school name; address (including any additional locations); and
President, Chief Financial Officer, and Financial Aid Administrator
information, must be made through an update to the E-App.

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 Ch. 2: Participating in FSA Systems

Enrolling in NSLDs Professional Access

Purpose
Schools participating in the FSA programs must use NSLDS to
track the grant and loan amounts received by a transfer student at
other schools to ensure that the student does not exceed annual or NSLDS Web site, Customer Service
aggregate award limits. Center (CSC)
NSLDS is also used to track the enrollment status of student loan
borrowers. This information is shared with lenders for purposes of NSLDS Professional Access
loan deferment. (A student who is attending a postsecondary school (secure connection)
at least 1/2-time is usually eligible for in-school deferment.) https://www.nslds.ed.gov

1–800–999–8219, Monday through

How it works Friday from 8 a.m. to 9 p.m. ET.
The National Student Loan Data System is a comprehensive
database of students and parents who have received FSA grants
(Pell, ACG/SMART, TEACH) or loans (Perkins, Stafford, PLUS).
The financial aid history and enrollment status of FSA recipients
is reported to NSLDS by schools, lenders, and guaranty agencies.
All schools participating in FSA programs must have at least one
destination point for NSLDS services that includes on-line enrollment
reporting.
The Central Processing System (for the FAFSA) retrieves the
student’s financial aid history from NSLDS and adds it to the ISIR that
is sent to the school so that a financial aid administrator can determine
if the student has received aid at other schools that must be counted
towards the annual or aggregate award maximums.
However, note that your school is also required to send identifying
information for transfer students to NSLDS, so that the NSLDS system
can notify schools of aid payments that had not been recorded by
NSLDS at the time of the ISIR match. In some cases, you may also
need to use the NSLDS Web site to check the student’s records to
resolve conflicting information.
A school must report the enrollment status for all FSA borrowers
at the school, even if the student’s FSA loans were awarded at another
school. Enrollment status reporting is very important because it
ensures that the student qualifies for in-school deferment on loan
repayment. Therefore, schools are required to complete a Student
Status Confirmation Report (SSCR) on a regular basis. Many schools
arrange for the enrollment reporting function to be handled by a
third party.

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FSA New School Guide 2009

Transfer Monitoring How to exchange NSLDS batch files

To receive NSLDS batch files through SAIG, the destination
Your school must complete a School point administrator (DPA) must enroll in NSLDS services using the
Transfer Profile on the NSLDS Web SAIG enrollment form. The primary DPA automatically has access
site prior to submitting Transfer to “Default Services,” which includes Transfer Student Monitoring,
Monitoring information. Enrollment Reporting, and Perkins Loan Data. The DPA may also
select Enrollment Access and/or Overpayment Update.
The DPA can use the SAIG enrollment site to enroll staff to submit
Individual SAIG Mailboxes required
and receive NSLDS batch files through the same SAIG Mailbox.
for NSLDS Web access
However, only the DPA for that Mailbox will be able to use the NSLDS
NSLDS Professional Access requires Professional Access Web site.
each on-line user to have a Destination
Point (SAIG Mailbox with assigned TG How to enroll in NSLDS Professional Access
Number). As noted, only the DPA for an SAIG Mailbox can have access to
Only Primary TG Numbers are the NSLDS Web site. Therefore, the Primary DPA will need to set up
permitted to enroll additional additional SAIG mailboxes for staff who need access to the NSLDS
destination points under the Web site. (However, note that individuals with defaulted federal
organization’s hierarchy.
student loans will not be granted access to NSLDS.)
From the SAIG Enrollment site, the Primary DPA can select “Add
Another NSLDS Online User,” and follow the instructions to enroll a
new user for NSLDS Online access. When the new user’s application
is approved, his or her NSLDS User ID and a default password will
NOTE FOR DIRECT LOAN SCHOOLS be sent by U.S. mail.
A school participating in the Direct The first time a new user accesses the NSLDS Web site, he or
Loan program may use the same she will be asked to choose a new password to replace the default
federal account to deposit both password. The password is valid for 90 days and may be updated by
Federal Pell Grant funds and Federal selecting “Change Password” on the NSLDS site.
Direct Loan funds. We suggest you
maintain separate accounts for the
Federal Pell Grant program and the
Federal Direct Loan program, to
facilitate program reconciliation and
record keeping. If you choose to
establish a separate account for the
Federal Direct Loan program, you must
fill out and submit a separate Direct
Deposit Sign-Up form.

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 Ch. 2: Participating in FSA Systems

ENROLLING IN the G5 Payment System

Purpose
The G5 payment system is used to request and receive funds,
report expenditures, adjust drawdowns, and access current grant and
payment information. Your school must establish a User ID with G5 to
draw and receive Federal Student Aid funds. A school uses the G5 payment
system to request funds for --
How it works
• Pell Grants
Schools request federal cash electronically using the G5 Web site,
• ACG/SMART Grants
ED’s portal page for grant administration. Before you can use G5, your
• TEACH Grants
school must be registered with the Department and have received a • the Campus-Based programs
grant award. To begin using the G5 payment system, you must provide (FSEOG, Perkins, and Federal Work-
your school’s DUNS Number, provide bank account information, and Study)
obtain a G5 User ID and Password. • Direct Loans (Subsidized,
Unsubsidized, and PLUS)
The grant award number
The grant award number is a unique, eleven-character number
that identifies each grant award issued by a specific office to a specific G5 references
grantee. You will need to request and return all ED funds by grant
Web site:
award number. http://e-grants.ed.gov/egHome.asp

Providing bank information G5 Payee Hotline

Funds requested from G5 will be transmitted to the payee’s bank 1-888-336-8930
account using either the Automated Clearing House (ACH) or the
FEDWIRE transmission method. A payee designates its method of G5 Production System External User
transmission when providing its bank account information. Access requests to:
ACH users must complete a Direct Deposit Sign-Up Form Fax: 202-401-0006
(SF1199A), which can be obtained from the bank or the G5 Hotline.
(The bank must complete and sign Section 3). Fedwire Users must G5 User ID and Password Sign-Up
complete Fedwire Sign-up forms, containing signatures of both the External Access Security Form
payee and bank officials.
http://e-grants.ed.gov/gapsweb/
The school must send a copy of the Grant Award Document with
download/externalaccessform.htm
a cover letter (written on official letterhead) requesting the new bank
(see Appendix D of the GAPS Payee
account (or change to bank account information) to the Office of Guide for a copy of SF1199A).
Chief Financial Officer, Department of Education. The letter must
include the payee DUNS number, e-mail address (if available) for the
person to receive automated notification, and original signature and Bank account requirements
phone number of the person requesting the bank information must. The bank account(s) into which ED
transfers FSA funds must be federally
Obtaining a G5 User ID and Password: insured or secured by collateral of
To request a G5 User ID and Password from the Department value reasonably equivalent to the
of Education, submit an External Access Security Form, which is amount of FSA program funds in
available from the e-Payments Web site (see sidebar). The Department the account. A school generally is
will issue GAPS User IDs and Passwords to those individuals not required to maintain a separate
authorized by the payee to access GAPS for requesting funds or account for each FSA program;
reporting expenditures. however, it may establish multiple
accounts.
The school must identify that FSA
funds are maintained in the account by
including the phrase “federal funds” in
the account name.

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FSA New School Guide 2009

IPEDS Surveys
Schools that participate in the FSA www.ed.gov/admins/lead/safety/campus.
programs are required to respond to html
Integrated Postsecondary Education The Handbook defines the categories of crime
Data System (IPEDS) surveys in a timely and accurate and procedures for reporting them, as well
manner. You complete the survey the August after as the requirements for timely warnings and
you register. The surveys collect data on: maintenance of a daily crime log.

• Institutional Characteristics Each year in the late summer, a letter and a

• Finance, Student Financial Aid, and Human registration certificate from the U.S. Department
Resources of Education are sent to the institution’s
(Employees by Assigned Position,Salaries, etc.) president or chief executive officer. The
• Enrollment, Completion, and Graduation Rates certificate includes the User ID and password
needed to access the Campus Crime and
The keyholder is the person responsible for ensuring Security Survey Web site.
that all data are submitted accurately and that all
surveys are locked. (There is only one keyholder per EADA on the Web
school, but the keyholder can generate additional
User IDs and passwords for up to 6 people who can Coeducational schools that participate in the
enter data.) FSA programs and have an intercollegiate
athletic program must submit an annual report
If your school is not already registered and submitting on athletic participation and financial support.
IPEDS surveys, upon gaining eligibility it must send This is referred to as the Equity in Athletics
an e-mail to the IPEDS Helpdesk (see below) and Disclosure Act (EADA) report.
request to be added to the IPEDS Universe. The e-mail
should include the school’s OPEID and address of its Each year in August, a letter and registration
main campus; mailing address (if different) and phone certificate are sent to the institution’s president
number; the name and title of its chief administrator or chief executive officer. The certificate
(CEO); and the name, phone, and e-mail for the includes the User ID and password needed to
keyholder. access the EADA Survey, and the due date for
completion of the survey.
http://nces.ed.gov/IPEDS/submit_data/
HELP Desk (1-877-225-2568 or [email protected] The survey data is submitted at:
http://surveys.ope.ed.gov/athletics
Campus Crime Reporting
For help with this site, contact:
Schools are required to submit an annual statistical [email protected]
report to ED on campus crimes. The survey data is
collected through the Department’s Campus Crime and Prospective students, their families, and
Security Web site (requires password and User ID): the public can view the EADA reports for
surveys.ope.ed.gov/security participating schools on the Web at: http://
ope.ed.gov/athletics/
More detailed information on campus crime reporting
and the Annual Security Report are provided in the
Handbook for Campus Crime Reporting,
which is available at

2–24
 Chapter
Software & Security
Considerations 3
In Chapter 2 we described the enrollment process for the FSA systems that are used
to confirm student eligibility and disburse FSA funds. In this chapter we’ll give an
overview of the software and security issues that must be considered when planning
how your school will process FSA data and reports. The security of personal and
organizational data has become increasingly important in recent years, and federal law
requires that your school have an information security plan. This chapter may assist
you in developing your school’s plan.

Software PRoviders CHAPTER 3 HIGHLIGHTS

While your school is required to have at least one SAIG Mailbox
❚❘ Software Providers
and to enroll in FSA systems such as the CPS, COD, and NSLDS, the
➔ Communications software:
Department doesn’t specify what software must be used at your school
EDconnect
to open, create, or correct FSA records and reports. ➔ Data processing: EDExpress,
As a service to participating schools, FSA provides free PC-based mainframe, & 3rd party software
software to transmit and receive data over the Internet (EDconnect) ❚❘ Security issues
and to work with student application and award/disbursment records ➔ SAIG Mailbox & Destination Point
(EDExpress). FSA also provides software to electronically certify Administrator
student enrollment and address information with the NSLDS (SSCR), ➔ FSA Web site access
and to assist schools participating in the Direct Loan (Direct Loan ➔ Software permissions
Tools) and Perkins Loan (Perkins DataPrep) programs. ❚❘ Options for controlling data flow &
However, schools may choose to use software developed by third- user access
party vendors, or develop their own PC or mainframe-based software ➔ Creating SAIG Mailboxes
➔ Setting user permissions in the
programs to work with FSA records and reports. Some of the more
software
sophisticated software products have the advantage of being able to
➔ Setting file paths
share information with other offices at your school—for instance, ❚❘ Examples
enrollment data with your bursar’s office and payment information ➔ Single mailbox & multiple mailboxes
with your business office. ➔ Password protection policies
If you choose a third-party software product, you are responsible
for ensuring that it can perform the necessary functions to open, ED Software downloads
edit, and create FSA student records and reports. (In particular,
your software must be able to send and receive COD records in XML FSA software, as well as related
format.) Ultimately, the responsibility for ensuring the timeliness and manuals and technical references, can
accuracy of electronic data rests with your school. be downloaded from the Web at:
fsadownload.ed.gov

For help installing the software, call

CPS/SAIG Technical Support at 1-800-
330-5947 or email : [email protected]

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 FSA New School Guide 2009

Security precautions
Security Issues
• Exit EDconnect and EDExpress Because student aid records contain personally-identifiable
completely when leaving a information that is quite sensitive, your school must take special care to
workstation for long periods of time. ensure that only appropriate members of the administrative staff have
• Have a unique user ID and password. are able to view and edit those records. The person who configures
• Choose passwords that cannot be the security settings in EDExpress is usually referred to as the “Systems
guessed easily.
Administrator.”
• Don’t leave login information in
public view.
• Don’t allow students to enter or edit The Systems Administrator can be one of the Destination Point
any information in your software Administrators identified in the SAIG enrollment process, as discussed
• Keep all personal information printed in Chapter 2. Or it may be someone at your school who has general
from software or ED Web sites in a responsibility for the installation of new software and the security
secure place. of the network. In either case, the person configuring the software
• Have the appropriate level of access. should give careful consideration to how it will be used and the types
• Close student records when updates of access required for each user.
are completed.
• Delete access for staff who are no Managing permissions for school staff requires a little planning,
longer employed or responsible for because access to FSA data is controlled at three different levels:
FSA program administration.
• SAIG Mailbox. The Destination Point Administrator (DPA)
specifies what kinds of data are sent to a particular mailbox
when the mailbox is created. The DPA also creates and
updates the SAIG Password for that mailbox, which is shared
by all members of the Security Group that will be using that
mailbox.

• FSA Web sites. The Destination Point Administrator for a

primary mailbox can enroll users for the CPS and NSLDS
Web sites. (NSLDS Web access requires the creation of

Local Security
Since software programs such as
EDconnect and EDExpress are used
to access student records and build
a database of student information,
the school must be careful to
restrict access to the software
to those staff members who are
authorized to view and/or change
student records.

When software is installed on a

server and will be used by multiple
users, the Systems Administrator
will assign access rights to each of
the individual users.

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 Ch. 3: Software Options for Electronic Processes

a separate mailbox for each user.) The COD Security

Information security requirements
Administrator performs a similar function for the COD Web
site. Schools that participate in the FSA
programs are required to follow
• EDconnect & EDExpress (or equivalent). User permissions for Federal Trade Commission regulations,
software that is run on school computers are set locally, and which require all financial institutions
the information about the school staff who are using the to develop, implement, and maintain
software is not transmitted to any of the FSA systems. a comprehensive information security
program that includes administrative,
technical, and physical safeguards
Because access is configured separately for Web users and software designed to achieve the following
users, it is possible for a Web user to have access to some data that he objectives:
or she cannot open in local software (or vice versa). In general, we • Insure the security and confidentiality
recommend that you configure the access rights in EDconnect and of customer information,
EDExpress so that they are consistent with the permissions that you • Protect against any anticipated
have established through the SAIG Enrollment Form, the SAIG Web threats or hazards to the security or
site, and with COD School Relations. (See Chapter 2.) For instance, if integrity of such information, and
you have given a user access to CPS data in EDconnect and EDExpress, • Protect against unauthorized access
then you would probably want to give that user the capability to view to or use of such information that
and edit ISIR data on the FAA Access to CPS Web site. could result in substantial harm or
inconvenience to any customer.

For more information on these

requirements, see Volume 2 of the FSA
Handbook.

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 FSA New School Guide 2009

Destination Points & TG numbers Options for Controlling Data Flow & User Access
An SAIG Mailbox or “Destination Point” Creating separate SAIG Mailboxes
is identified by its “TG Number.”
One way to organize the exchange of FSA data is to create separate
SAIG Mailboxes for different kinds of data. For instance, you could
establish one mailbox solely for ISIR data, and another mailbox solely
for COD data.
As we discussed in Chapter 2, the SAIG enrollment process gives
you the choice of the following types of data for a mailbox:

• Central Processing System (FAFSA/ISIR data for students)

• Grants Processing (Pell, ACG/SMART, TEACH)
• Direct Loans Processing
• Direct Loan Services Information
• Campus-Based (the FISAP application and report)
• Direct Loan Borrower Delinquency Reports
• NLSDS Batches (Enrollment & Transfer Monitoring)
• Cohort Default Rates (eCDR)

In theory, you could have a different mailbox for each of these

types of data, but at most schools, it would make more sense to
combine some of these categories into one mailbox. For instance, staff
members working with default prevention could be served by a single
mailbox that collected NSLDS batches, eCDR information, and Direct
Loan Borrower Delinquency Reports. Or a school might have an SAIG
Mailbox for Direct Loan data coming from both the COD system and
the DL Service Center, but a different one for getting Grant data from
COD.
Also note that you will need to establish separate SAIG Mailboxes
for additional locations of your school if they have different Federal
School Codes for purposes of FAFSA/ISIR data. Similarly, a school
can obtain separate Direct Loan codes for approved additional
locations, if it wants to set up a mailbox to receive DL data for just that
location.

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 Ch. 3: Software Options for Electronic Processes

Setting user permissions in the software

If you are acting as the Systems Administrator and are setting up

EDconnect or EDExpress software on a PC, you can set the access
rights for each Security Group that you create. All of the users in a
Security Group have the same access rights.

Your EDExpress Security Groups do not have to mirror your

EDconnect Security Groups, because the access rights that are being
assigned are quite different. EDconnect controls the ability to send
or receive files to SAIG Mailboxes, and we recommend that you only
establish one Security Group for each of your school’s mailboxes.
EDExpress controls the functions for working with the individual
records (viewing, updating, printing, etc.).

• EDconnect—Security View>Properties. Since you will only create

one EDconnect Security Group for each of your SAIG
Mailboxes, all of the users in that Group have the same
access to the mailbox. In other words, you cannot limit their
access so that they can send/receive only certain types of
files.

• EDExpress—Tools>Global>Security Groups. Because you can

create multiple Security Groups in EDExpress, you can
set very specific levels of access to different types of data
(Global, App Express, Pell, DL, COD, and Packaging). For
instance, you could create a Security Group just for your
counselors, with permission to view (but not edit) ISIR
records, while another Security Group of more senior staff
would have the ability to edit ISIRs, as well as access rights
for COD data.

You can organize your Security Groups to control workflow. For

instance, you might give your COD workgroup the capability to create
and update Common Records, but not give them the permission to
transmit files in EDconnect. A member of the EDconnect Security
Group for the SAIG Mailbox would be responsible for sending and
receiving files on a predetermined or ad hoc schedule. This would be
one way to stage your work in larger batches.

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 FSA New School Guide 2009

Access to shared database files

Setting file paths

For network setups, the executable You may find it convenient to have different types of data sent to
files for EDExpress are loaded onto different folders on a single-user PC or a network. This can be done
individual PC’s, but the database file by setting file paths in EDconnect. There are two ways to do this:
(****.mdb) is loaded onto a network
drive. A student record in the database • EDconnect. Different file paths for each type of message can
file can only be opened by one user
be set in the “Message Class Manager” in EDconnect. For
at a time. Each time that record is
instance, you could specify that all 09-10 processed ISIRs be
accessed, EDExpress records in that
.mdb file who accessed it and when. placed in a network folder on the “F” drive. To ensure the
security of this data, use of the F drive would be restricted
to counselors and other aid staff working with student aid
applications and verification.
Changing default file paths in
EDconnect & other software • EDconnect. User-specific file paths can be set in EDconnect
so that when a user logs in, any files that he or she
When you change the default paths downloads will go to that user’s designated folder. Note
for files, you MUST make sure that you that this method can create problems if a user automatically
change them identically in EDconnect
downloads all files to his or her folder, including files that
and your financial aid software (e.g.,
EDExpress) so the two software
other users need.
programs both know where to store
and where to find student records. Your systems administrator can provide an additional layer of
To change file paths in EDconnect, go security by controlling which users have access to the data kept in
to: Tools/Setup/File. folders on a shared drive.

File Paths—Examples
Single-user file path
SAIG Selecting a file path for a single user is
 relatively simple. Unless you specify
otherwise, EDconnect will create a new
folder on your PC’s hard drive, using the file
path c:/iam/data. EDconnect will download
 c:/iam/data new data from your SAIG Mailbox to this
folder. EDExpress will automatically look
for this folder when preparing to open new
files.

Network file path

SAIG In a network environment with multiple

  f:/iam/COD users, you will probably want to set a file

path that leads to a folder on a commonly-
 f:/iam/CPS shared network drive. You also may want
to create separate folders for different
kinds of files. But you must be careful to
specify these new folders when configuring
EDExpress, so that it knows where to find
new files.

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 Ch. 3: Software Options for Electronic Processes

Security Group Setup—Examples

SAIG Mailboxes at Career Tech: Single Security Group

EDconnect EDExpress Software


 DP-1  Admin Group: Career Tech has set up two SAIG mailboxes for
SAIG PW: 123abc Bill Frisell the 2 members of its small financial aid office.
DPA: Bill Frisell Steve Lacy Bill Frisell and Steve Lacy use the first mailbox
TG 99991 Steve Lacy to exchange CPS, COD, and NSLDS batch files.
Because only the DPA of a mailbox can have
on-line access to NSLDS, Steve Lacy has a


 NSLDS User 1
separate mailbox for that purpose.
SAIG PW: def123
DPA: Steve Lacy
TG 99992

SAIG Mailboxes for AEC University: Multiple Security Groups

EDconnect FinAid Software
AEC University has a larger aid office, and
 Admin Group has set up separate mailboxes for staff who
Lester Bowie work with application data (ISIRs) and those
who are responsible for Pell and Direct Loan
Malachi Favors
awards (COD).
 COD Security  COD Users Each security group has its own TG number


TG 00001
Group
SAIG PW: 456xyz
DPA: Lester Bowie
Don Moye
Joseph Jarman
and SAIG password, which are used by all
of the users in that group. Note that Joseph
Jarman belongs to both the COD and Apps
Don Moye Groups.
Joseph Jarman
In addition, several of the staff have individual


TG 00002
 Apps Security
Group
SAIG PW: 345tuv
 Apps Users
Roscoe Mitchell
Joseph Jarman
mailboxes so that they can have access to the
NSLDS Web site.

AEC University uses a product called Finaid

DPA: Malachi Favors
Software to create and modify student
Roscoe Mitchell


records. Staff members are given access to
Joseph Jarman different types of records, depending on their
responsibilities.
TG 00003  NSLDS User1  NSLDS Users
SAIG PW: 234qrs Don Moye
Don Moye Roscoe Mitchell


TG 00004
 NSLDS User2
SAIG PW: 678nop
Roscoe Mitchell

3–31
 FSA New School Guide 2009

Security Group Setup—Examples (continued)

SAIG Mailboxes at TriState College: Multiple Locations

EDconnect EDExpress Sofware

 Admin Group: TriState College has campuses in three

John Barth different locations, so it has requested
Willa Cather and received a different Federal School
Code for each campus. Therefore, Tristate
 Apps - Maryland  Apps - Maryland has three different mailboxes for ISIR data.

 Security Group
SAIG PW: abcd4321
DPA: John Barth
Security Group
John Barth
Upton Sinclair
(This example does not show TriState’s
other SAIG Mailboxes for COD, NSLDS,
TG 11110 Upton Sinclair etc.)

 Apps - Virginia  Apps - Virginia


TG 11111
Security Group
SAIG PW: def8765
DPA: Willa Cather
Security Group
Willa Cather
Mary Lee Settle
Mary Lee Settle

 Apps - DC  Apps - DC

 Security Group
SAIG PW: ghij1098
DPA: Jessie Fausett
Security Group
Jessie Fausett
Ann Beattie
TG 11112 Ann Beattie

SAIG Mailbox Rules and Security Groups.

For each SAIG Mailbox that it establishes, a school must

designate at least one “Destination Point Administrator” who is
responsible for the security of the data sent and received through
that mailbox.

• Only the DPA of an SAIG Mailbox can have access to the

NSLDS Web site.
• In EDconnect, there will be a “Security Group” of users
at the school for each SAIG Mailbox; users will have the
same SAIG password and common access to that Mailbox.
• In EDExpress, Security Groups have the capability to read
and modify different types of files.

The EDExpress Security Groups are not necessarily associated

with a particular Mailbox, and can have different users than the
EDconnect Security Groups.

3–32
 Ch. 3: Software Options for Electronic Processes

Sample Password Policies

Password Requirements Password Construction Guidelines System Development Standards

As a user, you may be responsible for Strong passwords have the following Each system should have its own
any activity initiated by your user ID characteristics: password selection standard that
since you are the only person who • Contain both upper and lower adheres to the above guidelines while
should have your logon information. case characters (e.g., a-z, A-Z); being commensurate with the level
You must protect your user account(s), • Have digits and punctuation of security required by the level of
and not allow anyone else to use your characters as well as letters (e.g., sensitivity of the system.
0-9,!@#$%&*);
account or use your computer while
• Are at least eight (8) characters
logged in under your account (except As a system owner/manager, you must
long; and
as required for system administration). ensure your system(s) contain the
• Are not based on personal
In order to protect your user information, names of family, etc. following security precautions:
credentials, you must adhere to the
following guidelines: • Should support authentication of
Poor, weak passwords have the
individual users.
following characteristics:
• Password must be at least eight (8) • The password contains less than • Should not store passwords in clear
characters in length. text or in any easily reversible form.
eight (8) characters.
• Must contain a mixture of alpha • Regular changing of passwords
• The password is a common usage
and numeric characters, upper and should be systemically enforced
word such as names of family,
lower case letters, well as special in accordance with procedures
pets, and friends, or birthdays and
characters. outlined in the system security
other personal information such as
• The password must not match or plan.
addresses and phone numbers. • Users should be warned
resemble the word ‘password’ in
any form (e.g., as-is, capitalized, or automatically prior to the
adding a number). expiration times and will be
• The password cannot contain the prompted to change their
same string as your userID or that password automatically once
contains your name. expired.
• The password cannot be a • Should disable user accounts
dictionary word in any language. after three (3) consecutive invalid
• Do not lend or divulge the attempts are made to supply a
password to other persons, password.
including individuals purporting to • Should require the reinstatement
be system administrators. of a disabled user account by a
• Never make the password visible Help Desk technician or a system
on a screen, in written form (e.g., administrator.
on sticky notes).
• When you leave your computer
unattended, you must either log
out or invoke protection of your
system (e.g., a password-protected
screensaver).
• Avoid using the “remember
password” feature.

3–33
 FSA New School Guide 2009

3–34
 Appendix A:
Getting Help

Once your school has begun participating in the FSA programs, we offer continuing assistance
in a number of ways, including online tools, toll-free help centers that are designated for specific
areas of FSA administration, and assistance from School Participation Teams.

School Participation Teams

You’ve already worked with the School Participation Team for your state during the application and certification
process. You may also contact your school’s SPT with questions related to the FSA programs, including when to
update your school’s information on the E-App Web site, how to get authorization from different FSA systems,
and interpretation of federal regulations. In addition to specialists on the teams, each location has at least one
Institutional Improvement Specialist (IIS) who will be your primary resource after your school is initially certified and
during the first few years of participation.

Current contact information for the School Participation Teams is posted at:
www.ed.gov/offices/OSFAP/services/casemanagement.html

) Call centers
CPS/SAIG Technical Support FSA Research and Customer Care Center
Phone: 800-330-5947 (no cost per call) Phone: 1-800-433-7327

For questions related to the Central Processing System (CPS), Contact the FSA Research and Customer Care Center (RCCC) for
the Student Aid Internet Gateway (SAIG), Web products such assistance regarding the fSA programs and the Information for
as FAA Access to CPS Online, and assistance with software Financial Aid Professionals (IFAP) Web site.
products such as EDconnect and EDExpress.
G5 Hotline
COD School Relations Center Phone: 888-336-8930 (no cost per call)
Grant Programs: 800-474-7268 (no cost per call)
Direct Loan Program: 800-848-0978 (no cost per call) For questions related to G5, the Department of Education’s
Applicant Services Line: 800-557-7394 (no cost per call) electronic system for grants management and payments.

For questions related to Common Origination and National Student Loan Data System (NSLDS)
Disbursement (COD), ACG, National SMART Grant, Pell Grant, Phone: 1-800-999-8219
TEACH Grant, and Direct Loan processing.
Contact the NSLDS Customer Service Center for assistance
Campus-Based Call Center regarding eligibility questions, overpayments, details on loan
Phone: 877-801-7168 (no cost per call) history and other NSLDS functions.

For questions related to the Campus-Based Programs, Fiscal

Operations Report and Application to Participate (FISAP), and
Federal Perkins Loan cohort default rates.

eZ Audit
Phone: 1-877-263-0780

Questions about financial statements and compliance audits

through the web.

Appendix A–1
FSA New School Guide 2009

8 Resources on the Web

Information for Financial Aid Professionals (IFAP)
ifap.ed.gov FSA Conferences
fsaconferences.ed.gov
IFAP is your link to official guidance on FSA program
requirements, including the annual FSA Handbook and The FSA fall conference is an important venue for learning about
ongoing updates in the form of Dear Colleague Letters and changes to FSA program requirements, as well as updates on
Electronic Announcements. systems, software, and the FAFSA process.

FSA Download FSA Technical Support

www.fsadownload.ed.gov/index.htm www.ed.gov/FSA/services/fsatechsubscribe.html

FSA Download is your source for all ED-developed software Subscribe to the FSATech email listserv to ask technical questions
(i.e. EDExpress, SSCR, Direct Loan Tools), along with User about FSA systems, software, and mainframe products, and
Guides and Technical References for FSA systems and receive answers from other financial aid professionals.
required file formats.
FSA Assessments
FSA Pubs ifap.ed.gov/qahome/fsaassessment.html
www.fsapubs.org
The FSA Assessments can be used to anticipate and address
You can use the FSA Pubs Web site to order technical problems, spot-check the systems you are using to manage
publications, such as the Federal Student Aid Handbook; information, prepare for your audit or other review, maximize
or bulk publications for your students, such as Funding the efficiency of your staff and acquaint new staff with how FSA
Education Beyond High School and the Direct Loan Basics works.
brochures.

Training for Financial Aid Professionals

www.ed.gov/FSA/training

Use this Web site to identify ongoing training opportunities

and register for instructor-led courses. You can also take
on-line training in many subject areas, including Webinars,
downloadable software training, Web-based system demos,
and a general overview of the FSA programs (FSA Coach).

Appendix A–2
 Appendix B:
Checklist—Participation Requirements
see Volume 2 of the Federal Student Aid Handbook for details

Required electronic processes Academic requirements & standards

A school must be able to exchange data electronically with a Academic progress policy. A school must have a
FSA’s systems. This includes: satisfactory academic progress policy that includes a
a using the E-App to submit and update the school’s qualitative and quantitative standard and is at least
eligibility information: www.eligcert.ed.gov as strict for FSA recipients as non-FSA recipients.
a enrolling in the Student Aid Internet Gateway (SAIG) a Ability to Benefit limits. An eligible institution
and setting up a mailbox to receive electronic files: may admit as regular students only persons who
www.fsawebenroll.ed.gov have a high school diploma or its recognized
equivalent, or persons who are beyond the age of
a using FAA Access or its SAIG mailbox to exchange FAFSA
compulsory school attendance in the state in which
or ISIR data with the Department’s Central Processing
the school is located. To be eligible for Federal
System:
Student Aid, students who are beyond the age of
http://www.fafsa.ed.gov/FOTWWebApp/faa/faa.jsp
compulsory attendance but who do not have a
or www.saigportal.ed.gov
high school diploma or its recognized equivalent
a using the COD Website or SAIG mailbox to exchange must meet ability-to-benefit criteria or meet the
award and disbursement data for Pell Grants, ACG/ student eligibility requirements for a student who
SMART grants, and Direct Loans: is home schooled. No more than 50% of a school’s
cod.ed.gov or www.saigportal.ed.gov regular students may be enrolled without a high
a using the eCampus-Based (eCB) System to file the school diploma or equivalent at a school that does
FISAP application and report (see Volume 6): not provide a 4-year bachelor’s degree or 2-year
www.cbfisap.ed.gov associate degree program.
a submitting the school’s Federal Perkins Loan a GED preparatory program. A school that admits
data, student enrollment records, FSA program students without a high school diploma or its
overpayments, and Transfer Student Monitoring recognized equivalent (except home-schooled
records to the National Student Loan Data System students) must make a GED preparatory program
(NSLDS): available to its students.
https://www.nsldsfap.ed.gov/secure/logon.asp a A school may not deny readmission to a service
a electronically submitting the school’s annual member of the uniformed services for reasons
compliance and financial statement audits, and any relating to that service.
other required audits: ezaudit.ed.gov a Withdrawal rates. Schools that seek to participate
a using the Default Management Web site to receive in an FSA program for the first time must have an
draft and official cohort default rate data electronically: undergraduate withdrawal rate for regular students
ifap.ed.gov/DefaultManagement of no more than 33% for an award year in order to
a using the Information for Financial Aid Professionals be considered administratively capable.
(IFAP) Web site to review Dear Colleague Letters, a Incarcerated student limits. No more than 25%
announcements, or Federal Registers: ifap.ed.gov of a school’s regular students may be incarcerated
students. (A public or private non-profit school can
request a waiver from ED.)
a Correspondence study limits & distance education

Appendix B–1
FSA New School Guide 2009

General school requirements a Private education loan certification. Upon request from a
student or parent who is applying for a private education
a Fire safety. A school must maintain a log that records loan, a school must provide the disclosure form required
all fires in on-campus student housing facilities and under The Truth in Lending Act and the information
publish an annual fire safety report with campus fire needed to complete the form (to the extent the school
safety practices and standards of the school. has that information).
a Missing persons policy. A school that provides on- a Prohibition on use of FSA funds for lobbying. FSA funds
campus housing must establish a missing student may not be used to pay any person for attempting to
notification policy for students. influence
• a Member of Congress or an employee of a Member of
a Anti-drug abuse. To participate in any FSA program,
Congress, or
a school must certify on the E-APP that it has
• an officer or employee of Congress or any agency.
implemented a program to prevent drug and alcohol
In addition, FSA funds may not be used to hire a
abuse by its students and employees. To participate in
registered lobbyist or to pay any person or entity for
the Campus-Based programs, a school must annually
securing an earmark.
certify on its application for funds that it provides a
drug-free workplace.
a Timely reporting of crimes. Schools must have policies Reporting to ED
that encourage complete timely reporting of all crimes
to the campus police and appropriate law enforcement a Contracts with 3rd-party servicers. Schools are required
agencies. to notify the Department of all existing third party
a Testing emergency/evacuation procedures. A school servicer contracts by using Section J of the E-App.
must test emergency response and evacuation a Lobbying certification & disclosure. Any school receiving
procedures annually. more than $100,000 for its participation in the Campus-
a Copyrighted Material. The school must certify that Based programs must provide an annual certification
it has developed plans to effectively combat the with its FISAP not use federal funds to pay a person
unauthorized distribution of copyrighted material and for lobbying activities in connection with federal
will, to the extent practicable, offer alternatives to illegal grants or cooperative agreements. If the school has
downloading or peer-to-peer distribution of intellectual used nonfederal funds to pay a nonschool employee
property. for lobbying activities, the school must disclose these
lobbying activities to the Department.
a Voter registration. If your school is located in a
state that has not enacted the motor vehicle/ a Reporting foreign sources. Most postsecondary schools
voter registration provisions of the National Voter must report ownership or control by foreign sources, as
Registration Act, it is required to make a good faith wells as contracts with or gifts from the same foreign
effort to distribute voter registration forms to its source that, alone or combined, have a value of $250,000
students. or more for a calendar year.

Administrative restrictions Restrictions & prohibitions that apply to the

owners, officials, or staff of the school
a Incentive compensation. A school may not make any
commission, bonus, or other incentive payment based a Code of Conduct. Schools that participate in the FSA loan
directly or indirectly on success in securing enrollments programs must develop and enforce a code of conduct.
or financial aid to any individual or entity engaged in a Restrictions on advisory board compensation. A person
recruiting or admission activities or in making decisions employed in a financial aid office who serves on an
regarding the award of FSA program funds. advisory board cannot receive anything of value from
a Prohibited activities in loan programs. A school is the lender but can receive reimbursement for reasonable
prohibited from paying points, premiums, payments, or expenses associated with participation. (A school must
additional interest of any kind to an eligible lender or report annually to ED any such reimbursement paid to
other party in order to induce a lender to make loans to an employee in the financial aid office, or to employees
students at the school or to the parents of the students. who have responsibilities with respect to financial aid at
a Preferred Lender Lists. Schools with preferred lender the school.)
arrangements must compile and make available a list of a Outstanding liabillities. A person who exercises
the lenders that it promotes and recommends. ] substantial control over the school (or any members

Appendix B–2
 Appendix B–Getting Help

of the person’s family alone or together) may not owe and certificate programs, any plans the school
a liability for an FSA program violation, or have ever has for improving the academic programs [NEW],
exercised substantial control over another school (or instructional and laboratory facilities, special
a third-party servicer) that owes a liability for an FSA facilities for disabled students, and student body
program violation. diversity in the categories of gender and ethnicity
a Crimes involving FSA funds. Schools are prohibited of enrolled (and full-time students who receive
from having as principals or employing, or contracting Federal Pell Grants).
with other organizations that employ individuals who a Information about the school’s policies. A school
have pled nolo contendere or guilty to a crime involving must provide information about its satisfactory
the misuse of government funds. progress policy, school policies on transfer of
a Debarment & suspension. A school may not employ in a credit, and other policies relating to copyright
management or supervisory capacity an individual who infringement, fire safety, vaccination, missing
has been suspended, or debarred by a federal agency. persons procedures, emergency and evacuation
Similarly, a school may not have a relationship with a procedures, etc.
lender, third-party servicer, or loan servicer that has been a Information about costs. A school must provide
debarred or suspended. information on the costs of attending the school,
and it must include, on its Internet course schedule,
Administrative requirements for financial the International Standard Book Number (ISBN)
and retail price for required and recommended
aid textbooks and supplemental material (alternatives
are discussed in the FSA Handbook, Vol. 2).
a Coordinating official. A participating school must a Financial aid information. A school must inform
designate a capable individual to administer the FSA students about federal, state, local, and private
programs and to coordinate aid from these programs sources of aid, application procedures, need
with all other aid received by students attending the analysis, packaging policies, and the required
school. return of aid when a student withdraws.
a Consistency of information. A school must have a a Placement/matriculation of graduates. A school
system of identifying and resolving discrepancies in all must provide information on the placement of
FSA-related information received by any school office. and types of employment obtained by graduates
a Adequate staff. The aid administrator must be of the school’s degree or certificate programs, and
supported by an adequate number of professional, the types of graduate and professional education
paraprofessional, and clerical personnel. in which graduates of the school’s 4-year degree
a Checks & balances. A school must have an adequate programs enrolled.
system of internal checks and balances, including, at a a Retention rates. A school must disclose the
minimum, separation of the functions of awarding and retention rates of certificate- or degree-seeking
disbursing funds. first-time full-time undergraduate students.
a Counseling. Schools must provide adequate financial a Completion/graduation rates (Student Right-to
aid counseling to all enrolled and prospective students, Know). A school that awards athletically-related
including entrance and exit counseling. aid must disclose information on Graduation,
aOIG referrals. A school must refer to the Department’s Completion, and Transfer-Out Rates for student-
Office of Inspector General (OIG) any credible athletes and the general student body at the
information indicating that an applicant for Federal school.
Student Aid may have engaged in fraud or other criminal a Athletic funding/participation (Equity in
misconduct in connection with his or her application. Athletics). Any coeducational school that has an
intercollegiate athletic program must disclose
participation rates, funding support, and other
Providing consumer information information for its athletic programs.
a Loan counseling. A school must provide loan
counseling to first-time Stafford borrowers and
a Information about the school’s programs and facilities.
exit counseling to student FFEL/DL borrowers who
A school must provide students and prospective
have completed their program of study or are
students with information about the school and its
withdrawing from school.
operations, such as the school’s accreditation and
licensure, the faculty and other instructional staff, degree

Appendix B–3
FSA New School Guide 2009

a Drug & alcohol abuse prevention. A school must Default rates & financial standards
provide students, faculty, and employees with
information about the risks, penalties, and treatment a 90/10 rule. A proprietary institution may derive no
options associated with drug and alcohol abuse. more than 90% of its revenues from the FSA programs.
a Campus security. A school must publish an Annual a Cohort default rates. A school may lose its eligibility
Security Report and distribute the report to its in the FSA programs if its cohort default rate for
students and employees by October 1st of each year. Stafford loans is 25% or higher for one or more of the
a Misrepresentation. A school that substantially three most recent fiscal years or if the most recent
misrepresents the nature of its educational program, cohort default rate is greater than 40%. A school may
its financial charges, or the employability of its lose its eligibility in the Perkins Loan program if its
graduates may be fined or have its FSA participation Perkins cohort default rate exceeds 15%.
limited, suspended, or terminated. a Composite score. A proprietary or private non-profit
school must have a composite score of at least 1.0,
Recordkeeping & privacy based an ED formula that takes into account the
school’s primary reserve, equity, and net income ratios.
a A school must keep comprehensive, accurate a Refund reserve standard. A school must have
program and fiscal records documenting its eligibility sufficient cash reserves to return FSA funds when a
to participate and financial responsibility, student student withdraws.
eligibility for FSA awards, and providing a clear audit a A school must be current in debt payments
trail for all disbursements and repayments of FSA
funds.
a Generally, records must be kept for at least 3 years
after the end of the award year. (In the case of FFEL/
DL, three years after the end of the award year the
student last attended.)
a Access to records and personnel. A school must
provide timely access to authorized officials.
a Privacy. Personally identifiable information may not
be disclosed to other parties without the prior written
consent of the student, except for specific cases
defined in the Department’s FERPA regulations.
a Disciplinary proceedings. Schools are required to
disclose, upon request, the results of disciplinary
hearings to the victims of crimes of violence or sex
offenses.
a Information security requirements. A school must
have a comprehensive security program to safeguard
the information of students and parents.

Appendix B–4
 Appendix C: FSA/ED Systems Access
This is a reference to the different User IDs and passwords that an individual might require for access
to FSA data systems and ED funding. It is unlikely that any single individual would have access to all
of these system; particularly in cases where the regulations require separation of functions.
Reminder: do not share your password information with others. Keep any password list in a secure
location that is not accessible to any other individuals.

Password can be updated via EDconnect TG Number

or on the Web site. Note: a DPA can allow
SAIG Mailbox others access to his/her SAIG mailbox Password
(password). The new user must sign an
SAIG User Statement.
FSA User ID*
For FAA Access to CPS, eCampus-Based
CPS, eCB, (FISAP), SAIG Web enrollment, and Password
electronic Cohort Default Rates, you will
SAIG, eCDR need an FSA User ID, which you can obtain
* PIN number used
until May 17, 2009
by going to the SAIG enrollment site.

Your COD password is also used to access Username

COD/DLSC borrower account information and DL reports
Web sites on the DL Servicing Web site. [No updating Password
required]

You must be enrolled through SAIG as a

TG Number
Destination Point Administrator. Users may
NSLDS Web update their NSLDS passwords on the
Site NSLDS Web site.
Password

Each EDconnect user has his/her own Username

EDCONNECT password. You may update your password
in the software. Password

Username
EDExpress Each EDExpress user has his/her own
password. You may update your password
in the software. Password

You may update your password by Username

G5 Payment selecting “Maintenance” after logging in
System to the GAPS Web site. Password

Password does not need to be updated Username

E-APP
Password

Username
For password resets,
eZ-Audit call 1-877-263-0780. Password

Appendix C–1