AwardYear: 1995-1996 EnterChapterNo: 1 EnterChapterTitle: Organizational Structure SectionNumber: 1 SectionTitle: Student Financial Assistance Programs (SFAP) Organization PageNumbers: 3-38 [[SFAP organization]] The Student Financial Assistance Programs (SFAP) organization is responsible for administering the SFA programs and for developing the policies and procedures to meet the objectives of those programs. As stated in the Introduction, SFAP is divided into five services. The organizational chart on page 5 of this section shows these services, and the services and their functions are described separately beginning on page 6. Telephone numbers are listed down to the branch level of each division (and to the section level if applicable). The area code for all SFAP central office numbers is 202. [[Other telephone numbers and information]] Page 33 contains a listing of the Automated Data Exchange Specialists, along with their telephone numbers; page 34 lists the Pell Grant Program Financial Management Specialists, along with their telephone numbers; and page 35 lists the Campus-Based Programs State Representatives, along with their telephone numbers. Pages 36 and 37 contain the addresses and telephone numbers for the Department of Education's ten regional offices, and on the back of page 37 is a map of the Department's regions. Recent changes to the SFAP organization-- - The Field Operations Service has been moved under the Institutional Participation and Oversight Service (IPOS) and has been renamed the Regional Operations Division. - The Performance and Accountability Improvement Staff from the old Field Operations Service has been moved directly under IPOS and reports to that service director. - The Guaranteed Student Loan Branches (formerly under the old Field Operations Service) have been renamed the Guarantor and Lender Review Branches. - Within the Program Systems Service (PSS), the Applicant Systems Division and the Pell Grant Systems Division have been merged. The new division has been renamed the Application and Pell Processing Systems Division. The Advanced Systems Technology and Data Integration Division have been eliminated. There are three new divisions under the Service: Postsecondary Education Participants, National Student Loan Data System, and Federal Direct Student Loans Systems. The GSL Systems Division has been renamed the FFEL Systems Division, and the Campus-Based Programs System Division remains in place. There are no branches under these divisions. - The Accounting and Financial Management Service has undergone a general reorganization. Under the old organization, there were three main program management divisions: Pell, Campus-Based, and FFEL. Each division had a disbursement, accounting, and fund control branches. Under the new organization, there will be two divisions, one for loan financial management and one for institutional financial management. The Loans Financial Management Division contains three branches: FFELP, Financial Reporting, and Direct Loans. The Institutional Financial Division also contains three branches: Institutional Service, Pell Financial Operations, and Campus-Based Financial Operations. The new organization also contains the Financial System Interface and Requirements Staff and the Financial Improvement and Reporting Staff. These staffs report directly to the Service Director. [[The "SFAP Organizational Chart" on page 1-5 is currently unavailable for viewing. Please reference your paper document for additional information.]] [[Office of the Deputy Assistant Secretary 708-8391]] The SFA programs are managed under the Office of the Deputy Assistant Secretary for Student Financial Assistance Programs (SFAP). This office formulates policy for, directs, and coordinates those activities of the Department of Education (the Department) that provide financial assistance through grants, work, and loan programs to students pursuing a postsecondary education. The programs administered through this office are described in the introduction to this Handbook. SFAP provides direction for the Department in meeting its goals in credit management and debt collection of defaulted student loans administered through the Department. It also administers the process by which the Department-- - recognizes accrediting agencies; - determines whether postsecondary institutions satisfy the definitions of eligible institutions; and - determines if eligible institutions meet the standards of financial and administrative capability for participation in the SFA programs. [[Guarantor and Lender Oversight Staff/Quality Improvement and Operations Planning Staff]] SFAP contains the Guarantor and Lender Oversight Staff (GLOS) and the Quality Improvement and Operations Planning Staff (QIOPS). GLOS is responsible for overseeing the Department's interests with respect to guarantors (including their servicers) and lenders (including servicers and secondary markets). GLOS develops the Lender Site Review Guide, which assists guaranty agencies in conducting on-site lender reviews. As necessary, GLOS works with other federal and state agencies to develop and implement improvements in the administration of the SFA student loan programs by lenders and guarantors. QIOPS coordinates quality improvement activities throughout SFAP. [[The organizational chart "Policy Training, and Analysis Service" on page 1-7 is currently unavailable for viewing. Please reference your paper document for additional information.]] [[Service responsibilities]] THE POLICY, TRAINING, AND ANALYSIS SERVICE (708-5217) is responsible for developing program regulations and formulating program requirements, policies, and procedures; for developing program training materials and program information for schools, students, and the general public; and for analyzing program impact and cost. The three divisions in this service are: Policy Development, Training and Program Information, and Analysis and Forecasting. POLICY DEVELOPMENT DIVISION (708-9261) The Policy Development Division (PDD) is responsible for developing and issuing program policies and regulations. It develops program regulations and other policy materials such as "Dear Colleague" letters and update bulletins that explain program policies to the financial aid community. In addition, PDD makes policy decisions and reviews and comments on proposed legislative changes. The division contains four components: the Loans Branch, Grants Branch, General Provisions Branch, and the Direct Loan component. [[Loans Branch(708-8242) The Loans Branch contains the Federal Family Education Loan Program (FFELP) (formerly GSL programs) Section and the Perkins Loan Program Section. The FFELP Section (708-8242) develops regulations for the Federal Family Education Loan Program (34 CFR Part 682). Part 682 includes the Federal Stafford/Federal PLUS/Federal SLS (Stafford/PLUS/SLS),*2* and Consolidation Loan Programs. The Perkins Loan Program Section (708-8242) develops and updates the regulations for the Federal Perkins Loan Program (34 CFR Part 674). [[Grants Branch(708-4607)]] The Grants Branch contains the Pell and State Grant Section and the Campus-Based Programs Section. The Pell and State Grant Section (708-4607) develops Federal Pell Grant regulations (34 CFR Part 690). It administers and develops the regulations for the State Student Incentive Grant (34 CFR Part 692) and the National Early Intervention Scholarship and Partnership (34 CFR Part 693) programs. The Campus-Based Programs Section (708-4690) develops the regulations for the Federal Work-Study Program (34 CFR Part 675), and the Federal Supplemental Educational Opportunity Grant Program (34 CFR Part 676). [[General Provisions Branch (708-7888)]] The General Provisions Branch contains the Institutional Eligibility Section, and the Student Eligibility and Verification Section. The Institutional Eligibility Section (708-7888) develops the regulations for institutional eligibility and participation (34 CFR Parts 600 and 668), and the State Postsecondary Review Program regulations (34 CFR 667). The regulations for foreign medical school eligibility under the FFELP are included under 34 CFR Part 600 as Subpart E. The General Provisions regulations include subparts on institutional participation (standards for financial responsibility, administrative capability, and audit and record keeping requirements); program and student eligibility; student consumer information requirements; institutional misrepresentation; fine, limitation, suspension, and termination procedures; appeal procedures for audit and program review determination; institutional refunds; satisfactory academic progress; and regulation of consultants and third party servicers. The Student Eligibility and Verification Section (708-7888) develops policies and procedures for verifying the accuracy of data reported by students and parents in the application process. It develops the criteria under which applicants are selected for verification and develops the verification regulations (34 CFR Part 668-Subpart E). This section also develops standards for reviewing and approving tests used to determine a student's ability to benefit and approves the tests in accordance with those standards. This section is also responsible for overseeing the development of the Free Application for Federal Student Aid (FAFSA), Cost of Attendance, and other student eligibility issues. It also develops plans for conducting computer matches between the student aid applicant file and the files of other federal agencies to-- - identify students who have misreported information and determine the extent of the misreporting; - verify Selective Service registration; - obtain SFA program information from the National Student Loan Data System (NSLDS); - confirm citizenship status; and - verify Social Security Numbers (SSNs) of applicants, in general. [[Direct Loan Component]] The Direct Loan Component (708-9406) develops the regulations for the William D. Ford Federal Direct Loan Program (34 CFR Part 685). The component also interprets policy for the Direct Loan Program and develops program forms, such as the promissory note and deferment forms. TRAINING AND PROGRAM INFORMATION DIVISION (708-8636) This division coordinates training activities for the financial aid community and disseminates information on the SFA programs to the aid community, the general public, and other groups (for example, members of Congress). The Division contains the Training Branch and Program Information Branch. [[Training Branch (708-8146)]] The Training Branch directs training activities on the SFA programs. It assesses training needs, determines the methods to be used, and develops and evaluates training programs. This training is carried out by staff members of the branch itself, regional office staff members, and/or contractors. Training is targeted toward financial aid administrators, fiscal officers, chief executive officers, high school counselors, and staff of state aid agencies, loan guaranty agencies, and lending institutions. The branch develops The Blue Book: Accounting, Recordkeeping, and Reporting by Postsecondary Educational Institutions For Federally Funded Student Financial Aid Programs. The Blue Book is a reference manual for schools. It covers in detail the accounting, fiscal recordkeeping, and reporting requirements of the SFA programs. [[Program Information Branch (708-9152)]] The Program Information Branch distributes information about the SFA programs through publications, public media announcements, attendance and technical assistance at meetings and conferences, and distribution of brochures and technical publications to schools, state agencies, student organizations, and other groups interested in student financial aid. This branch also handles the printing and distribution of SFA forms and publications. It contains the Information and Development Sections. The Information Section (708-8155) is responsible for responding to telephone inquiries from the general public, Congressional offices, and the education community concerning the SFA programs. You may call either this section or the Federal Student Aid Information Center (FSAIC) if you have questions on the SFA programs. The FSAIC's toll-free telephone number is 1-800-4-FED-AID (1-800/433-3243). This section exhibits and disseminates SFA materials at national and regional education conferences. It maintains computerized mailing lists and tracking systems for SFA materials and also maintains the OPE Electronic Bulletin Board (OPEnet). OPEnet disseminates OPE policy documents electronically to a user's PC or mainframe terminal. These documents include regulations, "Dear Colleague" letters, Qs and As, calendars, and news bulletins. This electronic dissemination maximizes the availability of, and access to, policy information. The Development Section (708-9152) develops SFA publications for a variety of audiences: financial aid administrators, high school counselors, parents, students, financial aid recipients, and the general public. These publications include the FSFA Handbook, Expected Family Contribution (EFC) Formulas,Verification Guide, and The Student Guide. This section develops informational materials for specialized audiences (for example, handicapped, Spanish-speaking) and writes the standard paragraphs and form letters used in responding to general correspondence concerning the SFA programs. ANALYSIS AND FORECASTING DIVISION (708-4777) This division collects information on the programs to analyze progress made in meeting program objectives and to project the fiscal impact of legislative and regulatory changes (for example, the consequences of the need analysis formula in the Higher Education Amendments of 1992). This division contains three branches: the Loans Branch, the Grants Branch, and the Forecasting and Special Studies Branch. There are common program analysis functions performed by each branch. The major functions include-- - analyzing program trends regarding funding patterns, school participation, characteristics of school recipients, and variations in trends between funding years; - analyzing program trends regarding application patterns, changes in those patterns between application years, and changes of eligibility rates; - evaluating enrollment trends at postsecondary schools, as well as administrative practices at those schools, and other factors such as cost of education; and - preparing responses to specific program data requests. [[Loans Branch (078-4777)]] The Loans Branch recommends and develops plans for evaluation studies on lender activity and on default rates. It develops the Federal Family Education Loan Data Book. This publication (formerly the Guaranteed Student Loan Data Book) provides historical data on guaranteed student loan activity, such as loan volume, lender portfolio, and default and collection activity. [[Grants Branch (708-8963)]] The Grants Branch develops the Federal Pell Grant End of Year Report. It also develops the criteria used to select student aid applications for verification and identifies patterns of incorrect applicant information and determines if these patterns indicate possible school abuse. [[Forecasting and Special Studies Branch (708-4777)]] The Forecasting and Special Studies Branch develops budget models and makes budgetary projections for the SFA programs. It conducts studies to assess the quality and effectiveness of program delivery and is responsible for developing corrective actions to improve the administration and management of the SFA programs. It also develops the Federal Pell Grant Payment and Disbursement Schedules. [[The organizational chart "Accounting and Financial Management Service" on page 1-13 is currently unavailable for viewing. Please reference your paper document for additional information.]] [[Service responsibilities]] THE ACCOUNTING AND FINANCIAL MANAGEMENT SERVICE (708-4664) is responsible for the accounting and financial management activities related to the operation of the Student Financial Assistance Programs (SFAP). The service develops procedures for delivering and accounting for program funds. The service contains two divisions: Institutional Financial Management Division and Loan Financial Management Division. In addition, the Service contains the Financial Improvement and Reporting Staff and the Financial Systems Interface and Requirements Staff. INSTITUTIONAL FINANCIAL MANAGEMENT DIVISION (708-9807) This division contains three branches: Institutional Services, Federal Pell Grant Financial Operations, and Campus-Based Financial Operations. [[Institutional Services Branch (708-9807)]] The Institutional Services Branch provides technical assistance to institutions regarding funding levels, expenditure reporting, and other program administration requirements for the Federal Pell Grant and Campus-Based programs. It prepares financial obligation documents and institutional payment letters. It analyzes reported expenditures and adjustments from audits and program reviews to reduce allocations, close accounts, and reallocate funds. [[Federal Pell Grant Financial Operations Branch (708-9807)]] The Federal Pell Grant Financial Operations Branch obligates Federal Pell Grant funds to schools, manages these funds, reconciles accounts, and closes prior year accounts. The branch develops requirements for initial authorizations, and reviews authorization adjustments. If you have questions about information reported on Payment Vouchers, Institutional Payment Summaries (IPS), IPS Batch Reports, Student Payment Summaries, or the Pell Grant Statement of Account, you should contact your Financial Management Specialist assigned to your school's region. A list of these representatives, along with each representative's telephone number is included on page 34 of this chapter. [[Campus-Based Financial Operations Branch (708-9807)]] The Campus-Based Financial Operations Branch develops procedures for obligating and controlling Federal Supplemental Educational Opportunity Grant, Federal Work-Study, and Federal Perkins Loan funds (these programs are called the Campus-Based programs). The branch develops the FISAP (Application to Participate/Fiscal Operations Report). Schools apply for funds from the Campus-Based programs by completing the FISAP. The FISAP contains a section called the Fiscal Operations Report for schools to report expenditures against previous-year Campus-Based fund allocations. If you have questions regarding your school's funding levels, you should call your designated Campus-Based State Representative. A list of these representatives, along with each representative's telephone number is included on page 35 of this chapter. The branch also determines and publishes institutional default rate data and approves Expanded Lending Option (ELO) requests for the Federal Perkins Loan Program. LOAN FINANCIAL MANAGEMENT DIVISION (708-9776) This division covers the operation of the Federal Family Education Loan (FFEL) Program and the William D. Ford Federal Direct Loan Program Direct Loan Program). This division is divided into three branches: Direct Loan Program, Federal Family Education Loan Program, and Financial Reporting. [[Direct Loan Program Branch (708-9776)]] The Direct Loan Program Branch is responsible for accounting activities related to loan origination, loan defaults, origination fees, administrative cost allowances, and loan collections for the Direct Loan Program. The branch ensures that funds are provided to schools on a timely basis, and it monitors and controls funding levels in the Payment Management System. [[FFEL Program Branch (708-9776)]] The Federal Family Education Loan (FFEL) Program Branch processes and pays lender interest and special allowance billings and guaranty agency reinsurance claims for defaulted loans and other program expenses. The branch develops forms used in these payment processes. It also tracks the processing of these payment processes to ensure their timely processing. The branch maintains the lender and guaranty agency participation systems for the FFEL Program. This includes maintaining the universe files for participating lenders and agencies; assigning serial numbers for new entities; taking corrective actions for changes of ownership or name and address; and providing information to regional offices, guaranty agencies, or other appropriate users. [[Financial Reporting Branch (708-9776)]] The Financial Reporting Branch is responsible for controlling obligations and preparing financial reports for lenders and guaranty agencies consistent with Departmental requirements. The branch develops financial statements for the FFEL Program and the Direct Loan Program. The branch prepares monthly reports used in budget reconciliation and forecasting. [[Financial Improvement & Fiancial Systems Staffs (708-4664)]] Within the Accounting and Financial Management Service are two staffs: the Financial Improvement and Reporting Staff (FIRS) and the Financial Systems Interface and Requirements Staff (FSIRS). FIRS initiates projects and activities to improve service operations. FSIRS ensures that all SFA program systems comply with financial and accounting requirements mandated by Congress, Treasury, and OMB. You can contact either staff at the main Accounting and Financial Management Service number (708-4664). [[The organizational chart "Program Systems Service" on page 1-17 is currently unavailable for viewing. Please reference your paper document for additional information.]] [[Service responsibilities]] THE PROGRAM SYSTEMS SERVICE (708-7701) administers contracts that provide automated delivery of program funds, as well as storage and management of those funds. These contracts include the services provided under the General Electric Support (GES) system (Electronic Data Exchange [EDE], Electronic Bulletin Board [OPEnet], and Query, which allows on-line access to GES users. The service contains the Technology Planning and Analysis Staff. This staff develops the computer information systems, the automated data processing systems, and the data element standards used in SFA student aid delivery process. The service has six divisions: Application and Pell Processing Systems, Campus-Based Programs Systems, Federal Family Education Loan Systems, Federal Direct Student Loan Systems, National Student Loan Data System, and Postsecondary Education Participant's System. APPLICATION AND PELL PROCESSING SYSTEMS DIVISION (708-9988) This division manages the SFA application and data processing activities and develops and maintains the Pell Grant data systems. It develops the Free Application for Federal Student Aid (FAFSA) and the Student Aid Report. The division also monitors the Multiple Data Entry (MDE) and Central Processing System (CPS) contracts. In addition, it develops the Electronic Need Analysis system (ENAS) and distributes the software and the user's guide to the student financial aid community. If you have questions about ENAS, you should contact National Computer Systems (NCS) User Services at 1 (319) 339-6642. [[Applicant data service]] This division administers the applicant data service, which provides information about applicants from the federal student aid processing system to schools and state agencies. This includes data from the National Student Loan Data System. If you have questions about, or concerning participation in, the applicant data service, you should contact the Applicant Data Service Specialist, Federal Student Aid Programs at 1 (319) 339-6444. [[Pell Grant school and student data bases]] Pell Grant school and student data bases are under this division. The division reviews and evaluates system processing activities to ensure compliance with standards or to correct deficiencies. It evaluates operational systems' effectiveness and efficiency. In addition, procedures are developed for Pell Grant payment processing and recommendations are made for changes to correct problems identified by recipients. The records retentions systems for student applications and program fiscal documents, both hard copy and microfilm, and access services for these records, are maintained within this division. [[Institutional Access System]] Finally, the division contains a new customer service initiative called the Institutional Access System (IAS). The IAS is an interactive voice response system, which allows direct access by the postsecondary financial aid community to Federal Pell Grant Program data. You can get financial and processing status information 24 hours a day seven days a week by contacting the IAS toll-free line at 1-800/ 4-P-Grant. You can also request documents, such as the Student Payment Summary by calling this number. CAMPUS-BASED PROGRAMS SYSTEMS DIVISION (708-6726) This division develops and maintains the data systems for the campus-based programs. It develops procedural manuals for campus-based operational systems. It is responsible for the Electronic FISAP (electronic application for Campus-Based funds rather than completing the paper FISAP. In addition, the division is responsible for DRAP (Default Reduction Assistance Project). DRAP assists schools in returning borrowers with defaulted Perkins Loans to repayment. Under DRAP, participating schools can request the Department to send any one of a series of three letters to borrowers who have defaulted on their Perkins Loans or NDSLs. (The series includes a warning letter, 48-hour-notice letter, and a final demand letter.) [[Perkins deferment and cancellation]] This division provides assistance and advice to schools, billing services, and borrowers on Perkins Loan deferment and cancellation provisions, extension of the borrower's repayment schedule, and promissory note provisions. It provides assistance to schools regarding due diligence procedures and default reduction. This branch prepares the annual listing of elementary and secondary schools with a high concentration of students from low-income families. National Defense/Direct and Perkins Loan borrowers who teach at these schools may have part or all of their loans cancelled. This division maintains a file of each school that has a cash balance in its Perkins Loan fund far in excess of the school's need. It also maintains a file of schools that have closed or have terminated their participation in the Perkins Loan Program. This division reviews and approves requests for partial waivers of the school share of the total FWS earned compensation and/or SEOG awards. (Each award year, the Secretary authorizes certain FWS and SEOG awards to be made entirely from the federal portion of the school's program funds.) FEDERAL FAMILY EDUCATION LOAN SYSTEMS DIVISION (708-8760) This division develops and maintains the data systems for the FFEL Programs. It develops and implements improvements to the FFEL programs computer system and monitors the day-to-day processing and maintenance of the FFEL programs computer system. The division also monitors the contractor responsible for operating the FFEL programs computer system. FEDERAL DIRECT STUDENT LOAN SYSTEMS DIVISION (260-1933) This division develops and maintains the data systems for the William D. Ford Direct Loan Program (Direct Loan Program). It develops and implements improvements to the Direct Loan Program computer system and monitors the day-to-day processing and maintenance of the Direct Loan Program computer system. NATIONAL STUDENT LOAN DATA SYSTEM DIVISION (708-8125) This division operates the system that contains data on all Department federal student loans and selected information on other student financial aid. This division provides a single reservoir of data for use in evaluating trends in the SFA programs. Data in the National Student Loan Data System will be provided by guaranty agencies, schools, other Department computer systems, and, indirectly, by lenders. The National Student Loan Data System will be used to track the status of aid recipients, determine applicant eligibility, and provide data for budget formulation. POSTSECONDARY EDUCATION PARTICIPANTS SYSTEM DIVISION (708-6266) This division operates the computer system used to support SFAP's responsibility for determining the eligibility of schools to participate in the SFA programs. It also operates the computer system used to monitor the participation of lenders, guaranty agencies, and accrediting bodies and other organizations. [[The organizational chart "Institutional Participation and Oversight Service" on page 1-21 is currently unavailable for viewing. Please reference your paper document for additional information.]] [[Service responsibilities]] THE INSTITUTIONAL PARTICIPATION AND OVERSIGHT SERVICE (708-6008) is responsible for monitoring schools' and financial institutions' administration of SFA programs through audit reviews and school, lender, and state agency reviews. It is also responsible for administering the fine, limitation, suspension, and termination authority. In addition, the service resolves issues that arise when schools close, declare bankruptcy, or are otherwise in financial or administrative trouble. The service administers the State Postsecondary Review Program and works cooperatively with both states and accrediting agencies as part of the Program Integrity Triad established by Congress. The three entities that make up the triad are accrediting agencies, states, and the federal government. These entities' shared responsibility is to ensure that participation in the SFA programs is open only to those schools that provide students with quality education or training worth the time, energy, and money those students invest in it. [[Performance & Accountability Improvement Staff]] The service also contains the Performance and Accountability Improvement Staff. This staff administers the Quality Assurance (QA) Program and is responsible for developing expanded applications of performance-based management models in the SFA programs. The QA Program is a successful complement to OPE's oversight strategy. It helps OPE promote and achieve better management of SFA dollars, and higher quality services to students. Within parameters, aid administrators in the QA Program develop procedures for achieving award accuracy, measuring the effectiveness of their procedures, and designing quality improvements to address weaknesses. Accuracy in financial awards has increased because QA Program institutions focus on identifying weaknesses and ways to improve the delivery of student aid. As a result, students and institutions benefit from this proactive approach to quality improvement in financial aid. The service contains five divisions: Institutional Participation, Accreditation and State Liaison, Institutional Monitoring, Compliance and Enforcement, and Regional Operations. INSTITUTIONAL PARTICIPATION DIVISION (708-4906) This division is responsible for determining that institutions meet the statutory requirements of eligibility and the established standards of financial responsibility and administrative capability in order to begin and continue participation in the SFA programs. As required by the Higher Education Amendments of 1992, the division is also responsible for conducting annual recertification of currently participating institutions. The division is responsible for the regulations that govern an institution's eligibility and certification (34 CFR Part 600 and 34 CFR Part 668). The division is organized into three branches: Eligibility and Administrative Analysis, Financial Analysis, and Application Management. The division is further organized into teams, comprising the ten regions and special functions such as changes in ownership and foreign schools. [[Eligibility and Administrative Analysis Branch (708-4906)]] The Eligibility and Administrative Analysis Branch analyzes each school's application (including foreign schools) to determine whether the school meets the institutional eligibility requirements as stipulated in 34 CFR Part 600 and the requirements for administrative capability under 34 CFR Part 668.16. The branch routinely confers with accrediting agencies, state authorizing agencies, and guaranty agencies. It also analyzes institutional audit and program review findings. The branch also develops procedures and guidelines for monitoring schools' withdrawal and default rates and other factors of administrative capability. [[Financial Analysis Branch (708-6485)]] The Financial Analysis Branch analyzes a school's financial viability as outlined in Chapter Three of this Handbook. As a result of this analysis, a determination is made regarding the compliance with the standards of financial responsibility as set forth in 34 CFR Part 668.15. The branch also establishes procedures and guidelines that will be used to monitor a participating school's financial responsibility. As a reminder, all participating schools must submit to the Secretary, as requested on an annual basis, an audited financial statement. [[Application Management Branch (708-6485)]] The Application Management Branch (708-6485) maintains a log of incoming documents, such as the Application for Institutional Participation (ED Form E40 34P). It also reviews the school's application to determine that all required information has been submitted. [[Program Participation Agreements]] This branch maintains each school's Program Participation Agreement and also maintains Approval Notices that define eligibility and certification requirements for both domestic and foreign schools participating in the SFA programs. The branch verifies, as a condition for the school to receive funds under any SFA program, that the school is in compliance with the Drug Prevention Program Certification requirement under the Drug-Free Schools and Communities Act Amendments of 1989 (34 CFR Part 86). (Change of Ownership/foreign schools]] Listed below are the Institutional Participation Division teams, along with each team's telephone number, for the ten regions and for changes in ownership and foreign schools. The area code for each telephone number is 202. Team Telephone Number Team 1 (Region IV) 205-3887 Team 2 (Region V) 205-3630 Team 3 (Regions I & III) 205-3772 Team 4 (Regions II & VII) 205-3720 Team 5 (Regions VI & VIII) 205-6303 Team 6 (Regions IX & X) 205-3851 Team 7 (Foreign Schools) 205-3720 Team 8 (Changes in ownership) 205-3851) ACCREDITATION AND STATE LIAISON DIVISION (708-7417) This division develops criteria that are used in recognizing state agencies and national and regional accrediting associations as reliable authorities concerning the quality of education and training offered by postsecondary schools or programs within the agency's or association's scope of operation. The division evaluates petitions for initial recognition, renewal of recognition, and expanded scope of recognition by accrediting bodies and state approval agencies. The division also administers the State Postsecondary Review Program and works cooperatively with states to strengthen and advance the role of states in granting authorization and licensure to postsecondary educational institutions. This division has two branches: Accrediting Agency Evaluation and State Liaison. Procedures and criteria for the recognition of accrediting agencies and state approval agencies have been codified under 34 CFR Parts 602 and 603, respectively. Procedures for the administration of the State Postsecondary Review Program have been codified under 34 CFR Part 667. [[Accrediting Agency Evaluation Branch (708-7417)]] The Accrediting Agency Evaluation Branch administers the process by which accrediting agencies and State approval agencies for public postsecondary vocational education and nurse education obtain initial and continued recognition by the Department. This branch works with the National Advisory Committee on Institutional Quality and Integrity (NACIQI) in developing the Department's procedures and recognition criteria. NACIQI advises the Secretary of Education with regard to the recognition of accrediting agencies and on matters of institutional eligibility. The Secretary is required by statute to publish a list of nationally recognized accrediting agencies that are determined to be reliable authorities as to the quality of education and training offered by the schools and programs these agencies accredit. This requirement originated with Public Law 82-550, the Korean G.I. Bill, which was passed in 1952. [[State Liaison Branch (708-7417)]] The State Liaison Branch administers the State Postsecondary Review Program in which State Postsecondary Review Entities (SPREs) conduct or coordinate reviews of institutions referred to the state by the Department of Education in accordance with criteria set forth in the Higher Education Amendments of 1992. This branch reviews state review standards, which have been developed by the SPRE in consultation with the institutions located in the state. It also reviews state plans and budgets submitted by each SPRE in order to receive reimbursement for activities performed under this program. Further, the branch provides guidance and technical assistance to SPREs regarding the conduct, coordination, and resolution of reviews conducted under the State Postsecondary Review Program. The State Liaison Branch also serves as the liaison between the Department and State Departments of Education and State licensing agencies. For more information on this program, see Chapter Three of the Handbook. INSTITUTIONAL MONITORING DIVISION (708-8197) This division monitors institutional compliance with the student financial aid regulations. It develops standards and procedures for on-site compliance reviews of schools performed by regional offices and guaranty agencies. This division contains three branches: Audit Resolution, Institutional Review, and Special Initiatives. [[Audit Resolution Branch (708-8208)]] The Audit Resolution Branch analyzes school audits prepared by independent CPAs and state auditors to ensure that the school's administration of the SFA programs is in compliance with Department policies and regulations. When necessary, this branch will interpret program regulations and issue letters resolving the audits and determining liabilities. This branch also makes recommendations and provides documentation of audit findings to the Office of the General Counsel (OGC), Office of Inspector General OIG, and the Department of Justice in support of investigations for civil lawsuits. The branch consults with these offices concerning the status of particular schools under investigation or prosecution. Finally, the branch refers schools with serious deficiencies disclosed by audits for administrative action or program reviews. [[Institutional Review Branch (708-8701)]] The Institutional Review Branch develops standards and procedures for performing program reviews of schools participating in the SFA programs. It develops the Program Review Guide, which is used as a reference in conducting reviews. The branch collects and analyzes data from program reviews. It also makes recommendations for legislative and regulatory changes based on analysis of program review results. The branch makes recommendations and provides documentation for program review findings (including liability assessments) to the Compliance and Enforcement Division (CED), OGC, and OIG, to support further action against problem schools. (CED administers the Department's fine, limitation, suspension, termination, and emergency action procedures). In addition, this branch develops procedures for pre-certification reviews in conjunction with the Institutional Participation Division. [[Special Initiatives Branch (708-6048)]] The Special Initiatives Branch includes the Closed School Section (401- 3294), which identifies closed schools and maintains the official list of closed schools. This list is used to help determine a borrower's eligibility for loan discharge based upon the school's closing date. The section develops policies and procedures for protecting the interests of students and the federal government when schools close abruptly. It also identifies school teach-out and tuition refund programs with state licensing agencies and accrediting bodies. COMPLIANCE AND ENFORCEMENT DIVISION (708-8197) This division administers the Department's authority to fine, limit, suspend, terminate, and take emergency action against schools, lenders, and third party servicers participating in the SFA programs. This division also coordinates the Department's funding control actions by transferring schools from one type of payment system to another (for example, transferring a school from the Advance Funding Payment System to the Reimbursement System of Payment). This division initiates government-wide non-procurement debarment and suspension actions against school's, lenders, and guaranty agencies, or individuals acting as a principal of a school, a lender, or a guaranty agency, in connection with their noncompliance with Title IV, HEA requirements, including criminal convictions. This division also disqualifies schools from participating in the FFEL programs nationwide after a guaranty agency has terminated a school from its loan programs. It reviews guaranty agency procedures for taking administrative action to ensure consistency with statutes and Departmental regulations. REGIONAL OPERATIONS DIVISION (708-9192) This division implements central office functions in the field through the regional offices, primarily conducting program reviews of participating schools in accordance with program review policies and procedures established by the Institutional Participation and Oversight Service. It conducts reviews of lenders and guaranty agencies in accordance with review policies and procedures established by the Guarantor and Lender Oversight Staff. This division also helps the financial aid community implement the SFA programs, and it provides training programs for the financial aid community in cooperation with the Training and Program Information Division. The Director of Regional Operations and the immediate staff members are located in the central office in Washington, D.C. A regional director in each of the ten regional offices implements the division's functions, such as-- - tracking program reviews submitted by the branches to ensure timely resolution of reviews; - monitoring regional performance in specific functional areas to assess whether the regions meet quality and quantity goals; and - implementing the training function (which includes planning and ensuring the necessary regional training of schools, lenders, guaranty agencies, and state and regional associations with special needs. It also ensures necessary training for schools with special needs (for example, proprietary schools). The training function is implemented by training officers in each region in accordance with national training policy and procedures as developed by the Training and Program Information Division. The division contains the Institutional Review Branch (IRB) and the Guarantor and Lender Review Branch (GLRB). There is an IRB in each of the ten regional offices and a GLRB located in six of the regional offices. Telephone numbers for the individual branches are listed with the regional office addresses on pages 36 and 37 of this chapter. [[Institutional Review Branches]] Each region's IRB conducts program reviews of student financial assistance programs in schools and initiates corrective actions required to ensure that SFA funds are being properly used. The IRBs recommend settlement terms for liabilities identified in program reviews and also recommend reimbursement method of funding, monitoring of funds, and fine, limitation, suspension, or termination actions. They facilitate the accountability of SFA funds at schools that have closed or are ceasing participation in SFA programs, negotiate transfer of Perkins Loan funds and promissory notes from one school to another or to the Department of Education, and approve changes in institutional Perkins Loan level of lending. The IRBs also provide necessary training, as coordinated by the Training Officers, for schools and other financial aid groups in the region, and provide technical assistance to the financial aid community. [[Guarantor and Lender Review Branches]] The Guarantor and Lender Review Branches (GLRBs) perform reviews of participating lenders, guaranty agencies, and related agencies and organizations (including secondary markets and servicers) in their own regions and in their other designated region(s). Four of the regional offices (Regions lll, Vll, Vlll, and X) do not have GLRBs. In these regions, the lender and guaranty agency reviews will be done by one of the GLRBs in the other six regions. Region ll handles the reviews for Region lll; Region Vl handles the reviews for Region Vll; and Region lX handles the reviews for Regions Vlll and X. In conducting these reviews, the GLRBs initiate corrective actions required to ensure that SFA loan funds are being properly used and programs are properly administered. The GLRBs also monitor guaranty agency staff reviews of schools and lenders to ensure compliance with federal requirements and recommend settlement terms for liabilities identified in these reviews. The GLRBs provide training, as coordinated by the Training Officers, for lenders, guaranty agencies, and other financial aid groups in the designated regions; they also provide technical assistance and service to lenders and guaranty agencies. Page 36 contains a list of the street addresses and telephone numbers for the IRBs. A similar list for the GLRBs appears on page 37. Both branch addresses have common elements as shown in the box below. [[Department regional addresses]] For inquiries to the IRBs, the first part of the address is- Institutional Review Branch Student Financial Assistance Programs U.S. Department of Education, Region xx For inquiries to the GLRBs, the first part of the address is- Guarantor and Lender Review Branch Student Financial Assistance Programs U.S. Department of Education, Region xx [[The organizational chart "Debt Collection Service" on page 1-29 is currently unavailable for viewing. Please reference your paper document for additional information.]] THE DEBT COLLECTION SERVICE (708-4764) is responsible for the recovery of all defaulted student loans and overpayments that have been disbursed under the Title IV student financial assistance programs, and that have been subsequently assigned to the Department after exhaustion of all collection methods available to the lender, guarantor, or school. Collection of all loans not so assigned to the Department continues to be the responsibility of the lender, which may be a school, bank, savings and loan association, or guaranty agency, depending on the type of loan. The service contains one division and three collection centers. STUDENT RECEIVABLES DIVISION (708-4766) This division coordinates the programs used in collecting student loans held by the Department. These programs include the Federal Income Tax Refund Offset Program, the Federal Employee Salary Offset Program and the Administrative Wage Garnishment Program, as well as the program for national credit bureau notification. The division provides technical assistance for the operation of these programs. The division also establishes the policies and procedures to be followed by collection personnel that are either employed or contracted by the Department. REGIONAL COLLECTION CENTERS These centers are located in Atlanta (Region IV), Chicago (Region V), and San Francisco (Region IX). Each collection center executes the various collection programs and monitors and coordinates the procedures of the contracted collection personnel within its region. Collection agents employed by the Department operate from within these regional collection centers. These centers also serve to research and resolve disputes raised by borrowers against repayment, including claims of bankruptcy, disability, school closures, and loan mismanagement by the original lender. [[The charts "Automated Data Exchange Specialists," "Pell Grant Program Financial Management Specialists, Institutional Financial Management Division," "Campus Based Programs, State Representatives, Institutional Financial Management Division," and Department of Education Regional address and telephone numbers followed by a map of Regions I-X from pages 1-33 to 1-38 are currently unavailable for viewing. Please reference your paper document for additional information.]] *2* The Federal SLS Program was repealed beginning with the 1994-95 award year. |
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