12 - CPS 101 with FA impacts 09102020.pdf

September 10, 2020

CPS 101 -

Central Processing System and Future Act Impacts

Objectives

• Present an overview of:

• The Central Processing System (CPS)

• Future Act (FA) impacts

• Focus on

• The Eligibility Determination (mainframe) processing components of the system

• Highlight functions impacted by FA

Agenda

• What is the CPS?

• FUTURE Act impacts

• Current Eligibility Determination Functions

• Questions

What is the Central Processing System?

• Center of a large process designed to deliver billions of dollars of federal student aid

• Primary role is to process financial aid applications to determine student eligibility

• Interacts with:

• Millions of students and their families

• Thousands of postsecondary institutions

• Federal agencies

• Contractors

• Private and State agencies

CPS interfaces

Central Processing System (CPS)

Student Aid Internet Gateway (SAIG)

ED

Regions

EDE Schools and State Agencies

Participation Management

(PM)

FAFSA IDC

Data Entry

FAFSA Web Applications

Internal Revenue

Service (IRS)

Print Fulfillment and E-mail Processing

Federal Student Aid Information

Center

(FSAIC)

Editorial Services

Common Origination and Disbursement

(COD)

Department of Defense

(DOD) Selective Service System

(SSS)

Social Security Administration

(Death Master File)

Social Security Administration

(SSA)

National Student Loan Database System (NSLDS)

Department of Homeland

Security

(DHS)

Enterprise Data Warehouse and Analytics System

(EDWA)

SAR Output

ISIR Output

Department of Justice

(DOJ)

Department of Veterans Affairs (VA)

FAA Access to CPS Online

DCC

DCC

Presenter Presentation Notes FAFSA Web Applications include the mobile application. Currently used to submit applications.

What is the Central Processing System?

• CPS is organized around three major components which interact:

• Web/Mobile Applications

• Eligibility Determination

• PC Software

FUTURE Act (FA)

• FA will allow FSA with users consent to pull data from the IRS directly

• Data pulled from the IRS will stay in FA system

• FA system will do all functions CPS would normally do that use IRS data (AGI, Tax filing status…)

Eligibility Determination Basic Steps

1. Receives FAFSA applications and corrections

2. Processes data

3. Calculates EFC

4. Disseminates data to students, schools and other agencies

5. Performs a variety of analysis

Step 1. Receive Data

1a. FAFSA data comes from multiple sources 1b. All sources go through a variety of data edits to determine if record is accepted for processing or returned unprocessed

1a. FAFSA Data Sources

EDE (batch)

IDC

FAFSA on the Web Products (API)

FAA Access (web)

Mobile App (APIs)

Paper form Schools

ISIR

Email or SAR

Student

1a. Receive Data

Student paper options

• Paper (Submitted to Image Data Capture (IDC))

• FAFSA (PDF in English or Spanish)

• Corrections (SAR/Letters)

• Signature pages (English or Spanish)

• IDC scans, images and collects data from all paper forms

Student web/mobile app options

• Web (moving to DCC except for APIs)

• FAFSA (English and Spanish)

• Renewal FAFSA (English and Spanish)

• Corrections

• FAFSA on the Phone (thru FSAIC)

• Submitted by applicants and parents

• Mobile Application (moving to DCC except for APIs)

• FAFSA (English)

• Renewal FAFSA (English)

• Corrections (English) planned for this Spring

Schools and Third-Party servicers options

• FAA Access or EDconnect/SAIG (batches)

• FAFSA

• Renewal FAFSA

• Corrections

• Signatures

1b. Receive Data

• Receives data from one of the sources

• Step 1b: Electronic Receipt and Editing

• Ensures data and files are valid according to the Data Entry(DE)

Edit specifications. If edits are hit record not processed.

• Performs transmission edits (message class, school ID, number of transactions, etc.). If edits are hit files are not processed

• Uses data from PEPS interface for valid school codes

• Determines if record is already on Multi Year Applicant Database

(MYAD) or creates a new MYAD ID

• Applies data from corrections to data already on database

1b. Receive Data

• Electronic Receipt and Editing

• Pulls forward and converts previous cycle data for Renewal

Applications

• Checks for field length and valid values

• Performs some cross-field editing

• Evaluates signatures

• Sets record source code (Application/Transaction Data Source)

FA Impacts

• Field edits on FTI data

• Cross field edits that use FTI data

Step 2. Process Data

• Next step is starting to process data accepted into CPS

• Step 2a – Matches

• Step 2b - Edit (End of Entry)

• Step 2c – Final processing (occurs after step 3)

Step 2a: Matches

Social Security Admin.

Selective Service

Dept. of Homeland Security

Veterans Admin.NSLDS

CPS

DOJ DOD

SSA

DMF

Step 2a Process Data – Matches

• External Matches – FAFSA data is sent to:

• Social Security Administration (SSA)

• Selective Service

• Department of Homeland Security (DHS)

• Veterans Administration (VA)

• National Student Loan Data System (NSLDS)

• The other agency reads each student’s record

• Adds a response code(s) to each record describing the appropriate status

• Returns the file to CPS the following day for processing

Step 2a: Process Data – Matches

• Social Security Administration (SSA)

• Verify SSN for student, parent1/father, and parent2/mother

• Verify U.S. citizenship status for student

• Makes use of prior cycle data from Multi-Year Applicant Database (MYAD)

• Selective Service System (SSS)

• Check registration status for applicants between 17 and 25 and answer Are You

Male/Female as Male or blank

• Register applicants who request it

• Makes use of prior cycle data from Multi-Year Applicant Database (MYAD)

• Dept. of Homeland Security (DHS)

• Verify eligible non-citizen status (when student reports an ARN)

• DHS automatically performs their Primary and Secondary Confirmation matches and CPS waits three days for results before processing

• System generates a transaction if results are received after three days

• Veterans Administration (VA)

• Verify veteran status for applicants who answer Yes to the Are You a Veteran question

• National Student Loan Data System (NSLDS)

• All applications and corrections are sent for Prescreening to:

– Verify default and overpayment status for all applicants

– Receive Financial Aid History information for ISIR

• Post-screening: If status changes at NSLDS, CPS generates a transaction

• There are 3 internal matches conducted

• Drug Abuse Hold

• SSA Death Master File

• Department of Defense (DoD) match

• CPS picks up data from each agency’s database and houses it in designated CPS data tables

• Runs FAFSA data against the CPS data table daily

Step 2a: Process Data – Internal Matches

• Department of Justice (DOJ) Drug Abuse Enforcement hold file (drawn down bi-weekly)

• Contains persons who are denied federal student aid due to drug abuse convictions

• System generates a transaction if status changes (put on hold or released)

• SSA Death Master File (DMF) (drawn down weekly)

• Contains all persons for which NTIS (Federal data contractor) has death records

• System generates a transaction for already processed records

• Department of Defense (DoD) Match file (drawn down monthly)

• Contains persons whose parent or qualifying guardian was a member of the Armed

Forces and died as a result of service in Iraq or Afghanistan after 9/11/01

• Sets DoD Match Flag for matching applicants to indicate possible grant eligibility

• System generates a transaction for already processed records

Step 2a: Process - Matches

• By-Pass process to stop the Matches

• Suspension of Match

• CPS can stop sending records to a Match while still processing the record

• On resumption of the match these records are system generated to go through the match

• Match Holding

• Records sent to CPS for matching can’t be processed by compute processing deadline

• These records can be withheld from compute, but all other records can continue

• Once the data is returned from the agency the held records will be computed

FA Impact – No impact to matches

Step 2b: Process Data - Edits

• Compute Edits –

• Edit for basic eligibility requirements (name, date of birth, citizenship, drug offense conviction, dependency status)

• Edit for validity and consistency of financial data

• Substantive edits on application data to determine if an EFC can be calculated by determining model, AZ/SNT, tax filer, and many other items. If missing data or based on match results record is rejected.

• Records are processed through groups of edits

• Results from one group of edits are used in the next group

• Compute Edits set the following:

• Comment code – Code which SAR and web translate to text for applicant

• Reject code – Indicates reason for not calculating EFC

• Field highlights – Which fields need to be reviewed by applicant

• Assumed value – For specific blank fields assumes value based on other data

• Flag values – Set a variety of flags (ie Graduate, Pell Grant, SAR

C,..)

• Groups of Compute Edits

• Initial Common Edits – performed on all records

• Accuracy, completeness, and consistency of identity and demographic information

• Dependency (Model) determination

• Simplified Needs Test/Auto Zero EFC: FA Impact: These must move to

FTI module.

• Dependent Student Edits – performed on dependent records

• Accuracy, completeness, and consistency of parents’ and dependent student’s information

• Marital status, family size

• Tax filing status, Income and Asset information

• Independent Student Edits – performed on independent records

• Accuracy, completeness, and consistency of independent student’s information

• Marital status, family size

• Tax filing status, Income and Asset information

FA Impact: Significant number must move to the FTI module. In addition CPS must provide additional data for specific edits

• Final Common Edits – performed on all records

• College choices

• Processing results

• External match results

• Set internal flags (SAR C flag, Pell Grant flag, Pushed ISIR flag, change flags)

FA Impact: CPS must receive data from the FTI module to determine processing results and set internal flags

Presenter Presentation Notes Items such as EFC (used in processing results), SAR C flag, Pell Grant flag will need to be determined by the FTI module now.

Step 2b: Types of Edits

• Types of Compute Edits

• Assumption Edits –

• Assume a logical response for missing or incorrect data based on comparison with other responses provided by the applicant

• Assumed values are used in calculating the EFC

• Data is identified as assumed for both the student and the FAA

• Reject Edits – missing or significant conflict in key information, and a logical assumption can not be made

• An EFC is not calculated

• Fields are highlighted and SAR comments are provided

• A correction is required

FA Impacts: FTI module must know if reject is on record so EFC is not calculated

Presenter Presentation Notes Assumption edits are using FTI will need to be moved into the FTI module None FTI rejects (matches, citizenship) will need to be shared with the FTI module.

Step 2b: Types of Edits

• Warning Edits - data is questionable or contradicting but not severe enough to be rejected

• Includes cross year edits

• EFC is calculated.

• Fields are highlighted and SAR comments are provided

FA Impact: Cross year edits compare current year data with prior year data which includes FTI data so FTI module must access current and prior cycle FTI information.

• Some edits are not verifiable – data must be corrected

• Some edits are verifiable and can be overridden – edit will be suppressed when record goes through compute

• Some web edits are verifiable but not overridden (“soft”) – edit will not be suppressed when record goes through compute

Step 3: Calculate EFC

• Expected Family Contribution Calculation

• Performed for non-rejected and signature only reject records

• Six possible formulas used; type determined based on:

• Dependency status

• Family size/marital status for independents

• Simplified needs test

• Calculate primary and secondary EFC if SNT is met and asset information is provided

• Calculate eleven alternate EFCs for programs of less than and greater than nine months

• If Auto Zero EFC is met, set EFC to zero but calculate Total Income

Step 3: Calculate EFC

FA Impacts:

• Assume all 6 formula types will be done by FA

• In addition to the FTI, FA must use already determined items like

Auto Zero or SNT

• CPS must provide additional data (such as State of Legal

Residence, Marital Status, Household Size…) besides IRS data to FA to perform all steps in the formula calculation

Step 2c: Final Processing - Verification

• Verification – Process where a record maybe selected and the FAA needs to do additional work before disbursing aid to student

• Verification Selection

• Records with EFCs subjected to verification selection, including signature only rejects

• Target is to select currently 22% of applicants. Reducing to 18% in upcoming cycle

• 2.5% selected randomly

• 2.5% held immune from selection to be used as a control group

• Verification Selection

• For applications use a machine learning model for targeted selection

• For real time corrections use mutually exclusive, collectively exhaustive targeted criteria

• Priority used to determine if record will be selected

• Only Pell eligible are evaluated for random selection for targeted selection

• All users are subject to the fraud selection criteria

FA Impacts

• Both Targeted Selection Criteria and MLM will be impacted

• Components or all or both may move to the FTI module

• Methodologies for both may need to be overhauled based on getting more matches on IRS data and confirmation of nonfiler

Step 2c: Final Processing - Edits

• Final Edits

• Comments set for verification selection

• Comments on each record reviewed for conflicts and redundancy;

switches and suppressions performed

Step 4: Disseminate Data

• Database is updated with results of processing from beginning to end

• Results made available to the parties below

• Applicant/parents

• Schools

• State and Third-Party Agencies

• FSAIC/FSA

• Other FSA/Government systems

• Applicant/Parents (Paper)

• Student Aid Report (SAR) sent to student if no e-mail and paper record

• SAR Acknowledgement sent to electronic applicants who do not have e-mail address

FA Impact: All FTI data either masked or not present

• Applicant/Parents (E-mail*)

• SAR email sent to student

• E-mail sent to parents of dependent students *Data is sent to DCC which produces the emails based on the data

FA Impact: May need to work with DCC to verify no updates are needed to e-mails

• Schools

• ISIRs sent to institutions listed on application only includes school code for institution receiving ISIR

• ISIR Datamart is populated with all transactions which allows FAAs to request specific ISIR with their school codes as needed

• State and Third-Party Agencies

• ISIRs made available to states where applicant is a resident or is attending school

• Also available to third parties acting as servicers for institutions

• ISIR Datamart is populated with all transactions which allows agencies to request specific ISIR data as needed

FA Impact: ISIRs must be started in CPS and then sent to FTI module for IRS data. May also impact ISIR datamart.

• FSAIC/FSA

• Data made available to Customer Service representatives and FSA staff through CSR systems and FAA Access

• Includes application, processed data, and digital images

• Allows CSRs to answer questions, provide processing results, and make limited corrections for applicants and other authorized parties

• Allows FSA staff to review data, make corrections, and perform special processing requests

FA Impacts: must update services to not have FTI data and FSAIC/FSA must access data via Data View App

• FSA

• Management Information System (MIS) collects and extracts data for reports and displays them using a reporting tool (BI Tool)

• Provides FSA with near real-time and YTD data on processing status and results

FA Impacts: Reports and Archived ISIRs must be evaluated for impacts

• Other FSA Systems

• Interface with Common Origination and Disbursement

(COD)/NSLDS and EDWA to share and exchange data

• Demographic Data Exchange File sent daily

– Includes all transactions processed

– Contains all application and processing data FA Impact: At this point none

– Used by COD/ NSLDS to update information on its database

– Used by EDWA for FOIA requests and internal/external data requests

• Recipient File received from COD as needed

– Used for Verification Selection analysis, End Of Year Report, and statistical analysis FA Impact: Must be evaluated for impacts

• PEPS to receive and share Federal School code data

Step 5: Perform Analysis

• Sample Database

• Statistically reliable sample of applicants is drawn for analytical purposes

• Sample is drawn on a continuous basis with every compute and on a stand-alone basis per processing cycle

• Data can be merged with recipient data from COD

• Used for many routine and ad hoc analyses

FA Impacts: Must be evaluated for impacts

• Annual Requirements Analysis

• Statistical analysis evaluates effectiveness of warning, assumption, and reject edits

• Data is provided to FSA to evaluate the verification selection process.

• IRS Statistical Study

• Statistical analysis performed annually to evaluate accuracy of applicant reporting and determine potential Pell misallocated awards

• Sample of FAFSA applicants sent to IRS to match against IRS database

• Compares FAFSA data to IRS data to determine over/under Pell awards

• The data is provided to FSA who now conducts the analysis

FA: Study may no longer be needed

• Pell Grant Early End of Year (EEOY)/End of Year (EOY) Reports

• Generates end of cycle data tables for congressional reports and

FSA research

• Produces sample file of applicant and recipient data for use in program modeling and budget projections

FA Impact: Must be evaluated for impacts