Posted Date: October 25, 2013
Jeff Baker, Director, Policy Liaison and Implementation, Federal Student Aid
Subject: 150% Direct Subsidized Loan Limit: Electronic Announcement #4 - Tracking Teacher Certification Programs for the 2013-2014 Direct Loan Processing Year
This Electronic Announcement advises schools that offer certain types of teacher certification programs of a special reporting process that will be required for first-time borrowers enrolled in such programs during the 2013-2014 Direct Loan Processing Year. This Electronic Announcement also describes the reporting process that is being developed for the 2013-2014 Direct Loan Processing Year.
On May 16, 2013 we published interim final regulations implementing the new 150% Direct Subsidized Loan Limit. Those regulations include, at 34 CFR 685.200(f)(7), include special provisions for first-time borrowers who are enrolled in a program necessary for a professional credential or certification from a State that is required for employment as a teacher in an elementary or secondary school in the State. In this Electronic Announcement, we will refer to these programs as "teacher certification programs."
Under the regulations, the Maximum Eligibility Period for a first-time borrower who is enrolled in a teacher certification program is calculated as 150% of the published length of the teacher certification program in which the borrower is enrolled. However, only periods in which a borrower received Direct Subsidized Loans for enrollment in that or any other teacher certification program, count against that Maximum Eligibility Period. Periods in which the borrower received Direct Subsidized Loans for enrollment in a teacher certification program do not count against the Maximum Eligibility Period for the student's enrollment in other undergraduate programs and preparatory coursework.
Beginning with the 2014-2015 release of the Common Origination and Disbursement (COD) System, schools must identify Direct Loans that are originated for a student's enrollment in a teacher certification program. We will also be modifying the National Student Loan Data System (NSLDS) enrollment reporting process for schools to indicate whether a borrower's enrollment is for enrollment in a teacher certification program.
The changes noted above will not be implemented for 2013-2014. Therefore, to account for Direct Subsidized Loans made to first-time borrowers for enrollment in a qualifying teacher certification program for 2013-2014, schools must submit to the COD System a special Teacher Certification Program Ad-Hoc Reporting File with information for loans that were originated using a COD System release prior to the 2014-2015 release. Only students who are first-time borrowers who receive a Direct Subsidized Loan for enrollment in a teacher certification program will need to be identified and reported by schools using the Teacher Certification Program Ad-Hoc Reporting File process.
When initial calculations of Subsidized Usage Periods are performed upon implementation of the COD System for 2014-2015, the COD System will use the reported information to properly categorize loans that were originated for students' enrollment in teacher certification programs. This will ensure that such loans are kept separate from Direct Subsidized Loans received for enrollment in other programs for purposes of determining the borrower's Remaining Eligibility Period.
Note that this special reporting identifies the affected students but does not replace reporting of originations and disbursements to COD. We do not anticipate needing to require ad-hoc reporting of similar information to NSLDS.
Prior to implementation of the Teacher Certification Program Ad-Hoc Reporting this winter, we will post technical specifications and required reporting deadlines. In the meantime, schools with teacher certification programs should ensure that their records can identify loans that must be reported using the Teacher Certification Program Ad-Hoc Reporting process. Although the Ad-Hoc Reporting File is still under development, schools will likely be required to report:
Borrower's last name;
Borrower's first name;
Borrower's Social Security Number;
Borrower's Date of Birth;
Award ID of the Direct Subsidized Loan made to the borrower; and
A Boolean indicator, such as "true" or "yes", indicating that the Direct Subsidized Loan was received for enrollment in a teacher certification program.
We thank you in advance as we continue to implement the provisions of the 150% Direct Subsidized Loan Limitation.