Federal Updates

ED reminds lenders to renew Organizational Participation Agreement

On June 3, 2008, ED posted an announcement to the Federal Student Aid Financial Partners Portal reminding FFELP lenders to renew their Organizational Participation Agreement (OPA) by September 30, 2008. Renewal of the OPA, which occurs on a two-year cycle, will ensure that a lender — and if applicable, its servicer — may continue reporting the Lender's Interest and Special Allowance Request and Report (LaRS) electronically without interruption.

The OPA is available online at www.fp.ed.gov/fp/attachments/fms_data_nslds/2010LenSerOPAv2.doc.

More information
If you have any questions, please contact ED at (202) 377-3002 or fps.lidprocess@ed.gov.

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ED issues reminder of change in lender reviews

In a Dear Guaranty Agency Director letter dated May 19, ED issued a reminder that guarantors must include the review of prohibited inducements in the scope of comprehensive lender reviews required under 34 CFR 682.410(c)(1).

In their role overseeing lenders that participate in the FFELP, guarantors must conduct comprehensive biennial on-site program reviews of lenders for which they have guaranteed FFELP loans. Beginning January 1, 2008, the review of prohibited inducements has been added to the scope of the comprehensive lender reviews that are performed under the Common Review Initiative (CRI) process. This will ensure compliance with federal laws and regulations that prohibit lenders from using inducements to increase loan volume. Procedures for non-CRI reviews will also be updated accordingly.

More information
The Dear Guaranty Agency Director letter is available online at www.fp.ed.gov/fp/attachments/activities_whatsnew/CRILetteronInducements.pdf. Shoptalk Online will keep readers informed as the prohibited inducement procedures are finalized.

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NSLDS Newsletter #17 available

On June 2, ED released NSLDS Newsletter #17, which discusses NSLDS changes implemented in January 2008 as part of the annual system updates, as well as the new NSLDS e-mail notification process.

Highlights of the changes include:

• Enhanced data match so the Central Processing System (CPS) can include a flag for fraud on the Institutional Student Information Record (ISIR);
• New loan limit indicators displayed on the NSLDS Financial Aid Professionals (FAP) Web site and reported to CPS for inclusion on the ISIR;
• Updated grant information as reported by Common Origination and Disbursement (COD) for display on the NSLDS FAP Web site and reported to CPS for inclusion on the ISIR;
• Updates to the Transfer Student Monitoring/Financial Aid History (TSM/FAH) processes and batch file layout; and
• E-mail notifications that replace NSLDS User ID letters and Enrollment Late Letters.

More information
To access NSLDS Newsletter #17, visit the Information for Financial Aid Professionals (IFAP) Web site at http://ifap.ed.gov/nsldsmaterials/08NSLDSNewsletter17.html.

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