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VOL. 22, NO. 12IGSL, 12B
June 2005
Welcome to the June 2005 ISAC Update for Financial Aid Administrators and Business Officers. This version of the electronic ISAC Update is a compilation of e-Messages sent through College Zone’s e-Messaging service throughout June. This e-Messaging service has replaced ISAC’s use of printed newsletters, the ILASFAA ListServ, and special e-mail lists as our primary means of communicating information to you.
The articles in this Update have been organized according to the FAA Zone subscription groups to which the messages were distributed via College Zone’s e-Messaging service.
Questions?
Questions regarding information in this ISAC Update can be directed to School Services at 866.247.2172 or at schoolservices@isac.org. On occasion, you may be directed to a specific contact person or area; when this occurs, we will provide the appropriate information in the individual article or message.
MULTIPLE SUBSCRIPTION GROUPS
2005-06 MAP Recompute Formula Approved
Sent to Financial Aid Directors, Financial Aid Administrators, MAPnet Users, and Business Officers on June 27, 2005
At its June 24th meeting, the Illinois Student Assistance Commission (ISAC) approved the 2005-06 Monetary Award Program (MAP) recompute formula, based on the fiscal year 2006 (FY2006) budget recently signed into law by Governor Blagojevich.
Significant Changes for MAP Formula Increase Awards
Each year ISAC is responsible for adopting a MAP allocation formula. In January, the Commission acts on a "start-up" formula that is used to begin making award announcements for students applying for the upcoming fall term. Once the governor and Illinois General Assembly take final action on the budget, the Commission revisits the formula and takes action to approve a "recompute" formula.
Changes to the start-up formula, approved for the recompute formula at the June 24th Commission meeting, include:
- Incorporate FY2004 (2003-04) tuition and fees at 100%;
- Use 80% of Federal Pell Grant eligibility, as determined by the 2003-04 Pell Grant Payment Schedule (which contains a $4,050 maximum); and
- Replace the tiered reduction factors with a single reduction factor of 9% to all awards for applicants with an expected family contribution (EFC) up to and including 8999 (no award is provided to applicants who have an EFC of 9000 or greater).
Current projections indicate that these proposed formula changes could allow 2005-06 MAP award announcements to be made through the end of August. Note that MAP priority consideration dates remain in effect for the 2005-06 academic year. In order to receive full-year award consideration, the Free Application for Federal Student Aid (FAFSA) receipt date for continuing applicants (i.e., those applicants who submitted a FAFSA for the 2004-05 academic year) must be on or before August 15, 2005.
Details of the 2005-06 MAP recompute formula are available in Table 4: Staff Recommendation for FY2006 MAP Recompute Formula, located on page 10-6 of Item 10 of the June 24, 2005 Agenda Book. The 2005-06 MAP start-up formula is also provided on this same page, as Table 3: FY2006 MAP Start-Up Formula.
Recompute Formula Will Be Reflected in MAPnet by July 1st
ISAC anticipates that MAPnet will be available for awards to be calculated using the recompute formula on Thursday, June 30th. As recompute is moved into production, access to the 2005-06 MAPnet system will be unavailable starting at 5 p.m. on Tuesday, June 28th and continuing until further notice on June 30th. Once verification of recompute data has been completed on June 30th, we will send a message to the "MAPnet Users" e-Messaging subscription group to announce the availability of the 2005-06 MAPnet system.
Further Recompute Information
College Zone's 2005-06 MAP Formula section (which can be accessed from the MAP Formula area of the MAP section in the ISAC Gift Assistance Programs portion of the FAA Zone), including the 2005-06 Hand Calculation Forms page, has been updated to reflect the recompute formula.
Other Committee Meeting Action
At its June 24th meeting, the Commission also took action on the following items. Details are provided in the June 24th Agenda Book, which can be accessed from the ISAC's Governing Board: The Commission page at collegezone.com. Specific agenda items may also be accessed by clicking on the appropriate link(s) below.
- The Commission approved authorization for ISAC to suspend FY2006 MAP and Silas Purnell Illinois Incentive for Access (IIA) Program award announcements, when it becomes necessary to do so, in order to avoid overcommitting MAP and IIA appropriations. This item includes a summary of 2005-06 MAP and IIA application volume through June 3, 2005. (Agenda Item 11)
- The Commission approved and adopted the omnibus rules amendments, as modified during the rulemaking process, so that they are effective for the 2005-06 academic year. (Agenda Item 14)
Significant Improvements Anticipated for 2005-06 MAP Grants - Commission to Take Action on FY2006 MAP Recompute Formula at June 24th Meeting
Sent to Financial Aid Directors, Financial Aid Administrators, MAPnet Users, and Business Officers on June 15, 2005 This message provides information regarding the status of the FY2006 budget, the next Commission meeting, and an upcoming Executive Briefing conference call.
Governor Signs FY2006 Budget Into Law
Governor Blagojevich signed the fiscal year 2006 (FY2006) budget (passed by the Illinois General Assembly in May) into law on Friday, June 10, 2005, providing funding for ISAC's programs for the upcoming year. The ISAC State Legislative Updates page at collegezone.com includes information regarding funding levels for ISAC-administered programs.
Commission Meeting on June 24th
On Friday, June 24th, the Illinois Student Assistance Commission (ISAC) Commissioners will meet at the Michael A. Bilandic building in Chicago beginning at noon. In addition to significant changes for the FY2006 (for the 2005-06 academic year) Monetary Award Program (MAP) formula (see below), the tentative agenda includes an overview of the state legislative and budget plan for FY2006 and its impact on ISAC-administered programs, as well as adopted rules amendments and various items related to College Illinois! and the Illinois Designated Account Purchase Program (IDAPP).
Significant Changes for MAP Formula Increase Awards
Each year ISAC is responsible for adopting an allocation formula for MAP. Typically, once the governor and General Assembly take action on the budget, the Commission revisits the formula and takes action to approve a "recompute" formula. The General Assembly and governor have approved an increase to FY2006 MAP funding that is $8 million over the FY2005 appropriation, coupled with an additional $3.7 million in federal Leveraging Educational Assistance Partnership (LEAP/SLEAP) funds.
Based on the increase in MAP funding and expected savings from environmental changes, it is anticipated the Commission will take action on the following changes to the FY2006 MAP start-up formula (to be used for the 2005-06 MAP recompute formula) at the June 24th meeting:
- Incorporate FY2004 (2003-04) tuition and fees at 100%;
- Use 80% of Federal Pell Grant eligibility, as determined by the 2003-04 Pell Grant Payment Schedule (which contains a $4,050 maximum); and
- Replace the tiered reduction factors with a single reduction factor of 9% to all awards for applicants with an expected family contribution (EFC) up to and including 8999 (no award is provided to applicants who have an EFC of 9000 or greater).
Current projections indicate that these proposed formula changes could allow 2005-06 MAP award announcements to be made through the end of August.
If approved by the Commission at this meeting, the recompute formula will be available for award calculations at MAPnet in early July.
Agenda Book Will Be Posted at College Zone
The Commission Meeting Agenda Book, providing a full description of each agenda item, will be available within four to seven days prior to the meeting. To access this information, visit the e-Library at collegezone.com and select the ISAC's Governing Board: The Commission page.
Executive Briefing Conference Call - Monday, June 27th
Executive Director Larry Matejka is offering an Executive Briefing on Monday, June 27th to provide an overview of the state legislative and budget plan for FY2006, its impact on ISAC-administered programs, and an overview of the June 24th Commission meeting. This conference call is directed toward financial aid staff at the Director or upper-management level.
Conference Call - Monday, June 27th
10 - 11 a.m.
Telephone Number: 888.767.9380
Passcode: 9767339#
There is no formal registration process for this conference call; the above information will allow you to connect.
Proration Rate for 2004-05 IVG Program Timely Second or Third Term Claims
Sent to Financial Aid Directors, Financial Aid Administrators, and Business Officers on June 10, 2005
As follow-up to the 2004-05 Release of IIA and MAP Late Claims and Proration Status of IVG and ING Grant Awards e-Message that was sent on June 9th, this message provides the proration percentage being used for timely second or third term Illinois Veteran Grant (IVG) Program claims.
Timely Second or Third Term Claims Will Be Prorated at 45.6%
Following the priorities by which claims are to be paid, ISAC has paid 2004-05 timely (in-district and out-of-district) claims for summer and first term at 100% of the claims. As was indicated in the June 9th e-Message, not enough funds remain to pay the timely second or third term claims at 100%. Therefore, these claims must be prorated at 45.6% (i.e., $45.60 will be paid for every $100.00 of eligibility).
For the 2004-05 academic year, the institution will be responsible for a percentage (54.4%) of each eligible student's IVG timely second or third term award, and will be responsible for 100% of all eligible students' claims that were submitted after the due dates for each term's claims (i.e., late claims).
 2004-05 Release of IIA and MAP Late Claims and Proration Status of IVG and ING Grant Awards
Sent to Financial Aid Directors, Financial Aid Administrators, MAPnet Users and Business Officers on June 9, 2005 IIA Late Claims To Be Processed after June 10th
Claims for the Silas Purnell Illinois Incentive for Access (IIA) Program received at ISAC after the 2004-05 payment claim deadline dates for first and second terms will be released for payment after June 10th. June 10th is the date when third quarter claims and second semester claims for institutions whose second semester began on or after February 15th are due to ISAC.
Award cancellations and refunds of first, second and/or third term IIA awards have provided just enough funds to pay IIA late claims for first term for eligible recipients and for second and/or third term for eligible recipients who have a Free Application for Federal Student Aid (FAFSA) receipt date on or before July 9, 2004.
IIA records held as late claims are identified on the Payment Results report with a Reject Reason Code of "Y." All late payment requests that were submitted on or before June 10, 2005 will automatically be processed and, if approved, will appear on the Payment Results report with a Result Code of "I."
MAP and IIA Late Claims To Be Reviewed Each Friday
ISAC will continue to accept submissions to increase a Monetary Award Program (MAP) grant and an IIA Program grant after June 10th. However, the fund balance will be monitored weekly and if funds remain, payment will be released each Friday until July 20th. As a reminder, MAPnet becomes unavailable for this type of payment request at 7 p.m. on July 20th. Cancellations and adjustments to previously paid awards that result in refunds will continue to be accepted and processed through MAPnet until August 5th. After Friday, August 5th, the MAPnet application for 2004-05 will be available only for historical view.
Last Day ISIR/SAR Data Accepted - June 15th
June 15th is the last day Institutional Student Information Record (ISIR)/Student Aid Report (SAR) data will be accepted. Any 2004-05 ISIR/SAR records received at ISAC on or after June 16, 2005, will not be loaded to MAPnet or ISAC's mainframe system.
Update on 2004-05 Proration for IVG and ING Grant Programs
As you know, the amount paid to institutions each year for the Illinois Veteran Grant (IVG) and Illinois National Guard (ING) Grant programs is contingent upon available funding. Eligible students for these two programs are entitled to be exempt from paying tuition and certain fees at public postsecondary institutions. Per ISAC rules for IVG and ING Grant programs - if appropriated ISAC funds are insufficient to reimburse institutions for all eligible recipients, the obligation to pay is transferred to the institution.
IVG Program - Timely Second or Third Term Claims Will Be Prorated
Following the priorities by which claims are to be paid, ISAC has paid 2004-05 timely (in-district and out-of-district) claims for summer and first term at 100% of the claims. Unfortunately, not enough funds remain to pay the timely second or third term claims at 100%. Therefore, these claims must be prorated. ISAC staff are currently in the process of reviewing all data to ensure that IVG claims are prorated at the appropriate level. We will announce the IVG proration percentage, via the IVG Program News page at collegezone.com and this e-Messaging service, as soon as it is determined (anticipated by the beginning of next week).
For the 2004-05 academic year, the institution will be responsible for a percentage of each eligible student's IVG timely second or third term award (i.e., the difference between the amount of award eligibility and the prorated amount paid), and will be responsible for 100% of all eligible students' claims that were submitted after the due dates for each term's claims (i.e., late claims).
ING Grant Program - Timely Summer Term Claims Likely To Be Prorated
Following the priorities by which claims are to be paid as designated for the ING Grant Program, ISAC has authorized payment of 2004-05 timely (in-district and out-of-district) claims for first, second, and third terms at 100% of the claims. Depending on the number and dollar amount of timely claims received for the summer term, there may be a need to prorate them. This will not be known until late July. ING Grant summer term rosters are due to ISAC on or before July 15th.
If summer term claims must be prorated for the 2004-05 academic year, then the institution will be responsible for a percentage of each eligible student's ING Grant Program timely summer term award, and will be responsible for 100% of all eligible students' claims that were submitted after the due dates for each term's claims (i.e., late claims).
New Student Loan Interest Rates Effective July 1st
Sent to Financial Aid Directors, Financial Aid Administrators, Business Officers, and FFELP Participants on June 8, 2005 The U.S. Department of Education has announced that, for variable-rate student and parent loans, interest rates for the period July 1, 2005 through June 30, 2006 are as follows:
- 4.70% for Federal Stafford Loan Program subsidized and unsubsidized loans while the borrower is in school, during the grace period, and during periods of deferment
- 5.30% for Federal Stafford Loan Program subsidized and unsubsidized loans during repayment and forbearance
- 6.10% for Federal PLUS Loan Program loans
Further details - including interest rate information for Federal Consolidation Loans - are available at College Zone's Interest Rates page, located within the "Loan Origination" area of the FAA Zone "Processes" section.
ISAC and IDAPP Update
Sent to Financial Aid Directors, Financial Aid Administrators and FFELP Participants on June 2, 2005
The Illinois General Assembly concluded its Spring session late on Tuesday, May 31st. Among the business completed was the passage of the fiscal year 2006 budget for all State activities, including ISAC-administered programs. While the budget is not yet considered final, pending the Governor's signature, most of our scholarship and grant programs maintained level funding, while funding for the Monetary Award Program (MAP) actually increased by $11.7 million ($8 million in new state funds and $3.7 million in federal LEAP funds). It should be noted that the Merit Recognition Scholarship (MRS) Program is not funded in the budget, although ISAC had requested $5.4 million to provide level funding. A number of other bills affecting Illinois students and their families were passed by the General Assembly and also await the Governor's signature. Complete information about all General Assembly activity is available through the State Legislative Update posted at collegezone.com. We will continue to keep you apprised as the bills passed by the General Assembly are acted upon by the Governor.
Before legislators completed their business, a proposal that would have affected ISAC and IDAPP student loan activities surfaced in the State Senate. Unanticipated by ISAC, the proposal would have permitted the Governor's Office of Management and Budget (OMB) to initiate a sale of all or part of the IDAPP loan portfolio, at some point during or after FY2006. ISAC was not consulted regarding the proposal prior to it being filed, and most certainly did not support it; to the contrary, we aggressively opposed it and in the end, the bill did not advance.
In the wake of a couple of very intense days spent working to ensure our ability to continue serving our clients and Illinois college-bound students and their families, we feel this is not only the appropriate time to convey our sincere appreciation to you, but also to assure you of our commitment to continuing to provide excellent customer service. If you have any questions at all regarding what you might have heard or read in the media, please don't hesitate to contact us.
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MAPnet Users
MAP Recompute Formula Successfully Implemented - 2005-06 MAPnet System Available
Sent on June 30, 2005
ISAC staff has completed verification of recompute data and the 2005-06 MAPnet system is now available for student awards to be calculated using the recompute formula.
All 2005-06 Institutional Student Information Report (ISIR) records having Central Processing System (CPS) transaction dates on or before June 27, 2005 have now been updated to reflect eligibility using the 2005-06 MAP recompute formula. On Friday, July 1, 2005, ISIR information will be current through June 30, 2005. At that time, we will return to daily processing of ISIR data.
As a reminder, College Zone's 2005-06 MAP Formula section has been updated to reflect the recompute formula. As always, please refer to MAP Program News for the most up to date information.
MAPnet Processing Updates
Sent on June 22, 2005 2005-06 Academic Year
The Illinois Student Assistance Commission (ISAC) discovered that Institutional Student Information Records (ISIRs) that were received and loaded to MAPnet with a "MAPnet Process Date" (date the file is received at ISAC) of June 8 and June 9, 2005 may have had the wrong Monetary Award Program (MAP) award calculated. As of June 21, 2005, any impacted records have had the MAP award correctly recalculated.
As a reminder, if the FY2006 Recompute Formula is approved at the ISAC Commission meeting on Friday, June 24th, the recompute formula will be available for award calculations at MAPnet in early July.
2004-05 Academic Year
Reconciliation of the 2004-05 MAP and the Silas Purnell Illinois Incentive for Access (IIA) Program should be in full swing or coming to a close at most campuses. On June 14th, institutions were sent letters detailing the outstanding amount each institution owes to ISAC as of that date with the expectation that a claim for an increased award is an exception at this point in time. The outstanding amount due to ISAC, with proper documentation should be returned to ISAC on or before July 1, 2005. As a reminder, do not send refund checks to ISAC without providing the appropriate adjustment data via MAPnet.
ISAC continues to accept submissions to increase a MAP grant and an IIA Program grant. However, the fund balance will be monitored weekly and if funds remain, payment will be released each Friday until July 20th. As a reminder, MAPnet becomes unavailable for this type of payment request at 7 p.m. on July 20th. Cancellations and adjustments to previously paid awards that result in refunds will continue to be accepted and processed through MAPnet until Friday, August 5th. After August 5th, the MAPnet application for 2004-05 will be available only for historical view.
Enhancement to Student Eligibility Screens within MAPnet
Sent on June 1, 2005
Based on suggestions from our school partners, the Illinois Student Assistance Commission (ISAC) has recently implemented an enhancement to MAPnet’s “Student Eligibility” screens that will make it easier to identify potentially ineligible applicants. As of May 31, 2005, all student records that have a flag in any one of the six eligibility status fields will now display a “light bulb” icon  on the Student List Eligibility: View” screen.
Additionally, the “Student Detail: Eligibility” screen will now display a yellow background in any of the six eligibility status fields where a flag has been set. As a reminder, the six student eligibility status fields are: Default, Disqualify, Late, MAP Suspense, IIA Suspense, and Shutdown.
This change has been implemented in order to make it easier to identify potentially ineligible students and is not intended to replace the need for careful review of student eligibility. The determination of student eligibility and compliance with all rules and regulations governing the Monetary Award Program (MAP) and the Silias Purnell Illinois Incentive for Access (IIA) Program continues to be the responsibility of the college.0nbsp;
For additional information about using the “Student List Eligibility: View” screen, or the “Student Detail: Eligibility” screen, please refer to the Help Text available within MAPnet, or to the MAPnet User Guide.
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FFELP PARTICIPANTS
Latest School DAAR Report Available
Sent on June 20, 2005
The Notification of Student Loan Borrower DAAR Status report (School DAAR Report) for your school is now available on College Zone's My Zone. This online version has replaced the paper rosters ISAC sent in the past.
The School DAAR Report is non-cumulative and is available twice a month to those institutions with students for whom ISAC, as the guarantor, has received a Default Aversion Assistance Request (DAAR) during the reporting time period. Each time a new School DAAR Report is made available online, an e-Message will be sent to the "FFELP Participants" e-Messaging subscription group.
Accessing School DAAR Reports at My Zone
My Zone is a portal available in the FAA Zone at collegezone.com that allows postsecondary schools online access to student-specific data in a secure environment. If you have not yet signed up to participate in My Zone, proceed to the FAA Zone front page and select the My Zone Quick Link.
For complete information and instructions to access your school's DAAR Report, proceed to the FAA Zone front page and select the My Zone Quick Link in the right margin of the page.
Latest School DAAR Report Available
Sent on June 6, 2005
The Notification of Student Loan Borrower DAAR Status report (School DAAR Report) for your school is now available on College Zone's My Zone. This online version has replaced the paper rosters ISAC sent in the past.
The School DAAR Report is non-cumulative and is available twice a month to those institutions with students for whom ISAC, as the guarantor, has received a Default Aversion Assistance Request (DAAR) during the reporting time period. Each time a new School DAAR Report is made available online, an e-Message will be sent to the "FFELP Participants" e-Messaging subscription group.
Accessing School DAAR Reports at My Zone
My Zone is a portal available in the FAA Zone at collegezone.com that allows postsecondary schools online access to student-specific data in a secure environment. If you have not yet signed up to participate in My Zone, proceed to the FAA Zone front page and select the My Zone Quick Link.
For complete information and instructions to access your school's DAAR Report, proceed to the FAA Zone front page and select the My Zone Quick Link in the right margin of the page.
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ISAC UPDATE GROUP
Electronic ISAC Update for May 2005 Available at College Zone
Sent on June 2, 2005
The May 2005 edition of the ISAC Update is now available for your review within the ISAC Publications section of College Zone's e-Library. This version of the monthly electronic ISAC Update is a compilation of e-Messages sent to Financial Aid Administrators and Business Officers in May via College Zone's e-Messaging service.
Topics covered in the May 2005 ISAC Update include:
- Financial Aid 101: Building a Solid Foundation - June 2005 Workshops
- FFELP Processing News and Holiday Schedules
- Close-out for 2004-05 MAP & IIA Payment Processing
- Returning Amounts Owed for 2004-05 MAP & IIA
- Latest School DAAR Report Available
- Important Dates and Reminders: Close-out for 2004-05 ISAC Gift Assistance Programs, 2005-06 Program Updates, Upcoming Training Event, and Holiday Schedules
- ISAC and Tax Assistance Program Invite You to 2005 Financial Aid Conference on May 12, 2005
- Student Loan Consolidation, Forgiveness, Cancellation, and Discharge Chat Event - May 10, 2005
- Electronic ISAC Update for April 2005 Available at College Zone
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