2006-2007 Desk Reference for

EDExpress for Windows

Release 2.0
Addendum
Higher Education Reconciliation Act of 2005
Overview
The Higher Education Reconciliation Act of 2005 (the HERA), Pub. L. 109-171, created two
new Title IV grant programs—the Academic Competitiveness Grant (ACG) and the National
Science and Mathematics Access to Retain Talent (National SMART) Grant. The HERA also
extends Federal Direct PLUS Loan (Direct PLUS) eligibility to graduate or professional
students.

In addition, the HERA changed the definition of an academic year for certain Pell award
calculations, increased certain Direct Stafford Loan limits, decreased the loan fee charged to
Stafford borrowers, and reinstated single disbursement loan processing for institutions with low
cohort default rates.

This addendum to the 2006-2007 EDExpress for Windows Release 2.0 Desk Reference provides
guidance on using existing and new Pell, Direct Loan, and Common Origination and
Disbursement (COD) features in EDExpress for Windows 2006-2007 to comply with the
changes established in the HERA.

The following areas are covered in this addendum:

• Academic Competitiveness Grant (ACG)

• National Science and Mathematics Access to Retain Talent (National SMART) Grant

• Direct PLUS Loan for Graduate and Professional Students (Grad PLUS)

• Other HERA Changes

EDExpress 2006-2007 will be modified in three separate releases to add ACG, National SMART
Grant, and Grad PLUS functionality, most of which will be incorporated into the existing Pell
and Direct Loan modules:

• Release 3.0, available September 2006, enables you to create ACG and National SMART
Grant origination and disbursement records and updates Direct Loan functionality to
uniquely identify Grad PLUS loan records on entry tabs, reports, and in other software
features. It also enables you to import ACG and National SMART Grant versions of the
Electronic Statement of Account (ESOA) and adds separate print options for the Grad PLUS
MPN, List-Grad PLUS MPN, MPN Manifest, and Disclosure Statement.

Note: You will not be able to export ACG or National SMART Grant records from
EDExpress 2006-2007 for transmission to the Common Origination and Disbursement
(COD) System or import responses for ACG and National SMART Grant data sent by the
COD System until you install Release 4.0.

September 2006 (2006-2007) EDExpress for Windows Release 2.0 Desk Reference Addendum 1
• Release 4.0, available December 2006, enables you to export ACG and National SMART
Grant origination and disbursement records for transmission to the COD System and to
import responses from the COD System.

Note: The COD System will not accept ACG or National SMART Grant origination or
disbursement data until December 16, 2006.

• Release 5.0, available April 2007, enables you to export ACG and National SMART Grant
Data Requests to the COD System and import ACG and National SMART Grant-specific
reports. It will also update Direct Loan functionality, including the origination process, to
follow increased annual loan limits established for Direct Subsidized and Direct
Unsubsidized loan awards by the HERA.

For information and guidance regarding changes to EDExpress Global, Application Processing,
and Packaging functionality resulting from the HERA, see the HERA addendum to the 2006-
2007 EDExpress for Windows Release 1.0 Desk Reference, available on the U.S. Department of
Education’s (ED’s) FSAdownload Web site, located at fsadownload.ed.gov.

Direct Loan PLUS and Grad PLUS borrowers can also contact the COD School Relations Center
at [email protected] or at the numbers listed below for assistance:

• Pell Grant, ACG, and National SMART Grant: 800/474-7268 (800/4PGRANT)

• Direct Loan School Services: 800/848-0978

• Direct Loan Applicant Services: 800/557-7394 (for student and parent borrowers)

September 2006 (2006-2007) EDExpress for Windows Release 2.0 Desk Reference Addendum 2
Academic Competitiveness Grant (ACG)
EDExpress 2006-2007 provides new functionality in three staggered releases, described in the
Overview, for processing Academic Competitiveness Grant (ACG) data for your students.

Software Setup

ACG functionality is installed with the Pell module of EDExpress 2006-2007. ACG origination
and disbursement records use the same school codes and Reporting and Attended Entity IDs as
Pell. If you have already established your Pell School setup in EDExpress, no additional setup is
required to begin processing ACG data. If you have not previously set up EDExpress for Pell,
you must establish Pell School and COD System setup options (Tools, Setup, COD).

Origination and Disbursement Records

You can create ACG origination records in three ways:

• On the Origination (Pell) tab, select Record, Add (or click the + sign) on the menu bar and
choose ACG as the grant type. Complete the required fields and select File, Save from the
menu bar.

• Select File, Import from the menu bar. Then select Pell, Origination Data–ISIRs to
import Pell-eligible Institutional Student Information Record (ISIR) transactions from the
Application Processing module. Specify ACG as the type of grant to create.

• Import ACG origination data from an external system (File, Import, Pell, Origination
Data–External [PGEO]). The external file (PGEO07OP) must have the required data as
defined in the latest 2006-2007 Common Origination and Disbursement (COD) Technical
Reference, Volume III.

In addition to CPS Transaction #, Enrollment Date, and Award Amount for Entire School
Year, three new elements are required on ACG origination records: College Year (0-2),
Eligibility/Payment Reason (1-3), and High School Program (if the Eligibility/Payment
Reason is 1). See ED’s Information for Financial Aid Professionals (IFAP) Web site, located at
ifap.ed.gov, for valid high school programs and their values.

You can create an ACG disbursement using the same process as Pell. A new display-only field
shows the grant type (ACG, National SMART, or Pell). The valid 2006-2007 date range for
ACG disbursement records is 07/01/2006 to 09/30/2011.

September 2006 (2006-2007) EDExpress for Windows Release 2.0 Desk Reference Addendum 3
Select Process, Multiple Entry from the menu bar. Then select ACG to update multiple
origination and disbursement records. You can also view your ACG data by selecting Tools,
Browse from the menu bar, selecting Pell, and clicking the Origination or Disburse tab. ACG
records can be distinguished from Pell records on Pell Browse tabs by the award ID. Award IDs
for ACG records are 2 bytes shorter than Pell Award IDs and contain an award type of A in the
tenth position.

Export

Release 4.0, available December 2006, enables you to export ACG origination and disbursement
records in the COD Common Record format (CRAA07IN) using the Pell Export function.
Select File, Export from the menu bar, then select the Pell tab. You can combine Direct Loan,
Pell, ACG, and National SMART Grant exports by selecting the Combine DL and Pell?
checkbox.

Release 5.0, available April 2007, adds the ability to export ACG Data Requests.

Import
Release 3.0, available September 2006, includes the import-only ACG Electronic Statement of
Account (ESOA), message class AGAS07OP.

Release 4.0, available December 2006, enables you to import ACG records in the COD Common
Record (CRAA07OP) and COD Web-Generated Response (CRWB07OP) formats using the Pell
import function. Select File, Import from the menu bar, click the Pell tab, and select COD
Common Record Receipt/Response as the import type.

Release 5.0, available April 2007, adds the ability to import ACG-specific reports and files sent
by the COD System, including the Year-to-Date (YTD), Multiple Reporting Record (MRR),
Reconciliation File, and Pending Disbursement Report.

Reports

Release 3.0 adds ACG versions of the Origination Record, Origination List, and Disbursement
List currently available for Pell. To print the ACG versions of these reports, go to File, Print,
Pell, select the report you want to print, and select ACG as the Grant Type. Other existing
EDExpress Pell reports do not display ACG data, but the Pell record counts on the List–Student
Records in Document and List–Document Activity reports (File, Print, COD) include ACG
records beginning with Release 4.0, available December 2006.

September 2006 (2006-2007) EDExpress for Windows Release 2.0 Desk Reference Addendum 4
National Science and Mathematics Access to Retain Talent
(National SMART) Grant
EDExpress 2006-2007 provides new functionality in three staggered releases, described in the
overview, for processing National Science and Mathematics Access to Retain Talent (National
SMART) Grant data for your students.

Software Setup

National SMART Grant functionality is installed with the Pell module of EDExpress 2006-2007.
National SMART Grant origination and disbursement records use the same school codes and
Reporting and Attended Entity IDs as Pell. If you have already established your Pell School
setup in EDExpress, no additional setup is required to begin processing National SMART Grant
data. If you have not previously set up EDExpress for Pell, you must establish Pell School and
COD System setup options (Tools, Setup, COD).

Origination and Disbursement Records

You can create National SMART Grant origination records in three ways:
• On the Origination (Pell) tab, select Record, Add (or click the + sign) from the menu bar
and choose National SMART as the grant type. Complete the required fields and select
File, Save from the menu bar.
• Select File, Import from the menu bar. Then select Pell, Origination Data–ISIRs to
import Pell-eligible ISIR transactions from the Application Processing module. Specify
National SMART as the type of grant to create.
• Import National SMART origination data from an external system (File, Import, Pell,
Origination Data–External [PGEO]). The external file (PGEO07OP) must have the
required data as defined in the latest 2006-2007 Common Origination and Disbursement
(COD) Technical Reference, Volume III.
In addition to CPS Transaction #, Enrollment Date, and Award Amount for Entire School
Year, two new elements are required on National SMART origination records: College Year
(3-4) and CIP Code (a list of eligible majors and their CIP codes is available on ED’s
Information for Financial Aid Professionals (IFAP) Web site, located at ifap.ed.gov).

You can create a National SMART Grant disbursement using the same process as Pell. A new
display-only field shows the grant type (ACG, National SMART, or Pell). The valid 2006-2007
date range for National SMART Grant disbursement records is 07/01/2006 to 09/30/2011.

September 2006 (2006-2007) EDExpress for Windows Release 2.0 Desk Reference Addendum 5
Select Process, Multiple Entry, National SMART to update multiple origination and
disbursement records with the same information. You can also view your National SMART
Grant data by selecting Tools, Browse from the menu bar, selecting Pell, and clicking the
Origination or Disburse tab. National SMART Grant records can be distinguished from Pell
records on Pell Browse tabs by award ID. Award IDs for National SMART Grant records are 2
bytes shorter than Pell Award IDs and contain an award type of T in the tenth position.

Export

Release 4.0, available December 2006, enables you to export National SMART Grant origination
and disbursement records in the COD Common Record format (CRAA07IN) using the Pell
Export function. Select File, Export from the menu bar, then select the Pell tab. You can
combine Direct Loan, Pell, ACG, and National SMART Grant exports by selecting the Combine
DL and Pell? checkbox.

Release 5.0, available April 2007, adds the ability to export National SMART Grant Data
Requests.

Import

Release 3.0, available September 2006, includes the import-only National SMART Grant
Electronic Statement of Account (ESOA), message class SGAS07OP.

Release 4.0, available December 2006, enables you to import National SMART Grant
origination and disbursement records in the COD Common Record (CRAA07OP) and COD
Web-Generated Response (CRWB07OP) formats using the Pell Import function. Select File,
Import from the menu bar, click the Pell tab, and select COD Common Record
Receipt/Response as the import type.

Release 5.0, available April 2007, adds the ability to import National SMART Grant-specific
reports and files sent by the COD System, including the Year-to-Date (YTD), Multiple
Reporting Record (MRR), Reconciliation File, and Pending Disbursement Report.

Reports

Release 3.0 adds National SMART Grant versions of the Origination Record, Origination List,
and Disbursement List currently available for Pell. To print the National SMART Grant versions
of these reports, go to File, Print, Pell, select the report you want to print, and select National
SMART as the Grant Type. Other existing EDExpress Pell reports do not display National
SMART Grant data, but the Pell record counts on the List–Student Records in Document and
List–Document Activity reports (File, Print, COD) include National SMART Grant records
beginning in Release 4.0, available December 2006.

September 2006 (2006-2007) EDExpress for Windows Release 2.0 Desk Reference Addendum 6
Direct PLUS Loan for Graduate and Professional Students
(Grad PLUS)
EDExpress 2006-2007, Release 3.0, available September 2006, enhances Direct Loan module
functionality to enable you to create origination and disbursement records for Grad PLUS loans,
export Grad PLUS data to the COD System, and import COD responses with processed results
for Grad PLUS records. You can also print the MPN, List-Grad PLUS MPN, MPN Manifest,
and Disclosure Statement for Grad PLUS loans beginning with Release 3.0.

Note: The HERA provides for eligible graduate and professional students to receive Direct
PLUS Loans on or after July 1, 2006. The HERA provision does not create a new loan program,
but rather, allows a new type of borrower—an eligible graduate or professional student—to
borrow under the existing Direct PLUS Loan Program. In EDExpress 2006-2007, Release 3.0
and forward, a Direct PLUS loan for a graduate or professional student is referred to as a “Grad
PLUS” loan.

Software Setup

If you have already set up EDExpress to process loan records, no additional setup is necessary.
If you have not previously set up and used EDExpress for processing loans, before processing
Grad PLUS loan records, you must establish Direct Loan School and COD System setup options
(Tools, Setup, COD).

Origination and Disbursement Records

EDExpress now processes four types of Direct Loan origination records: Direct Subsidized
loans, Direct Unsubsidized loans, Direct PLUS, and Direct Grad PLUS.

Note: The Grad PLUS loan ID is identical in format to the PLUS loan ID.

As with other loan types, Grad PLUS origination records can be created by using manual entry,
ISIR import, or import from an external source. Refer to the latest version of the 2006-2007
COD Technical Reference, Volume III for the Direct Loan External Add record layout you must
follow to add Grad PLUS origination records from an external source beginning with Release
3.0.

The fields required to originate a Grad PLUS loan are the same as for a PLUS loan with the
following exceptions:

• College Grade Level must be 6 or higher

September 2006 (2006-2007) EDExpress for Windows Release 2.0 Desk Reference Addendum 7
• Only the Borrower’s Loan Default/Grant Overpayment field is required. The value must be
N to originate.

• Student’s Citizenship Status (Demo tab) is required to originate a Grad PLUS loan.

Note: While an entry in the CPS Trans # field is optional to originate a Grad PLUS loan in
EDExpress, a Grad PLUS borrower must have a valid ISIR on file at the CPS. Entering the CPS
Trans # enables you to document internally that a valid ISIR exists. You can also use the CPS
Trans # to distinguish between Grad PLUS and PLUS loan data on certain EDExpress reports.

Note: Because the student is the borrower on a Grad PLUS loan, the PLUS Info tab that appears
on the Origination tab is disabled for this loan type. The borrower information exported to the
COD System is pulled from the Demo tab.

The process of recording actual disbursement data for a Grad PLUS loan mirrors the process for
a PLUS loan. Grad PLUS loans can have a maximum of four disbursements. You can enter
actual disbursement data into EDExpress using manual entry, Multiple Entry, or by importing an
external change file (DIEC07OP). The external change file, which can also be used to modify
Grad PLUS origination data, must have the required data as defined in the latest 2006-2007
Common Origination and Disbursement (COD) Technical Reference, Volume III.

A new Grad PLUS tab in the Browse function (Tools, Browse, Direct Loan) enables you to
easily view existing Grad PLUS origination and disbursement data for your students.

MPN, MPN Manifest, and Disclosure Statement

A Grad PLUS MPN print option is available in EDExpress. The rules for multi-year use and
expiration of the PLUS MPN are the same for both PLUS and Grad PLUS borrowers.

Note: As with PLUS loan records, the Grad PLUS MPN ID uses N as the MPN indicator.

An addendum must be used with the Direct PLUS MPN to inform Grad PLUS borrowers of the
changes made to the terms of the loans by the HERA. Paper MPN addenda are available for
schools to order in bulk from the FSA Pubs Web site (www.fsapubs.org).

The paper (shipping) MPN manifest notifies COD which MPNs are included in the shipping
document. To generate a paper Grad PLUS MPN manifest, select File, Print from the menu bar.
Then select Direct Loan, Manifest-Grad PLUS. Grad PLUS MPN manifests can be
regenerated by selecting File, Print from the menu bar, then selecting Direct Loan, Manifest
Document Regeneration.

A Grad PLUS Disclosure Statement print option has been added in EDExpress. Select File,
Print from the menu bar, then select Direct Loan. Select Disclosure Statement–Grad PLUS
as the report type.

September 2006 (2006-2007) EDExpress for Windows Release 2.0 Desk Reference Addendum 8
Export and Import

Grad PLUS origination and disbursement records are exported in the COD Common Record
format (CRAA07IN) by selecting File, Export from the menu bar, then selecting Direct Loan.
You can combine your Direct Loan, Pell, ACG, and National SMART exports by selecting the
Combine DL and Pell? checkbox.

The COD System sends Grad PLUS origination and disbursement Response files in the Common
Record format (CRAA07OP). You can also import MPN Responses (CRPN07OP), Credit
Override Responses (CRCO07OP), Booking Notification Responses (CRBN07OP), Web
Responses (CRWB07OP), and Payment to Servicing Responses (CRPS07OP) for Grad PLUS
data.

Grad PLUS records are also included in Direct Loan External Export files and identified as Loan
Type G (Grad PLUS), provided you select the Loan Type field as part of the Direct Loan File
Format (Tools, File Formats, Direct Loan) you select for the export.

Reports and Queries

A new Direct Loan report, List-Grad PLUS MPN, is added in Release 3.0, available September
2006. This report displays Grad PLUS MPN data in a format similar to the existing List-PLUS
MPN report. The following existing Direct Loan and EDExpress COD reports will now include
data for Grad PLUS records: List-Anticipated Disbursements, List-Actual Disbursements, List-
Loans, List-Status, Origination Record, List-Student Records in Document, and Student
Summary. The List-Actual Disbursements report now includes separate Summary Totals for
PLUS loans and Grad PLUS loans, as well as combined PLUS/Grad PLUS totals.

The criteria for two predefined queries (“Loan Type” and “LAA Not Equal Endorser Amount”)
have been modified to add Grad PLUS as a filter, and a new predefined query, “Grad PLUS
Loans,” has been added.

September 2006 (2006-2007) EDExpress for Windows Release 2.0 Desk Reference Addendum 9
Other HERA Changes
The HERA changed the definition of an academic year for certain Pell award calculations,
increased some Direct Stafford Loan limits, changed the Direct Stafford Loan origination fee,
and reinstated the provisions for schools with low cohort default rates to disburse loans in a
single disbursement.

Expanded Value Range for Pell Setup and Entry “Weeks” Field

The HERA changed the definition of an academic year to allow at least 26 weeks of instruction
for a program that measures progress in clock hours for Federal Pell Grant award calculations.
Beginning with Release 3.0, available September 2006, schools calculating Pell awards using
Payment Methodology 4 for clock-hour programs can now enter a minimum value of 26 (instead
of the prior minimum value of 30) for the Pell School setup field Weeks of Instructional Time in
a Program’s Definition of Academic Year.

This change was implemented in Pell School setup, Pell Origination tab entry, Pell Multiple
Entry, Pell Query, and Pell External Origination Add/Change import. The updated minimum
value will also be included in Pell External Export files if you select the Weeks of Instructional
Time in Program’s Definition of Academic Year field as part of the Pell File Format you choose
for the export.

Direct Loan Limits

New EDExpress 2006-2007 functionality for subsidized and unsubsidized loans originated after
July 1, 2007 will be added in Release 5.0 (available April 2007) to reflect the following new
annual Direct Stafford Loan limits:

• $3,500 for first-year undergraduate base subsidized/unsubsidized loans

• $4,500 for second-year undergraduate base subsidized/unsubsidized loans

• $12,000 for graduate/professional additional unsubsidized loans

• $7,000 for preparatory coursework (for enrollment in a graduate or professional program)

additional unsubsidized loans

• $7,000 for teacher certification additional unsubsidized loans

Note: The aggregate loan limits for subsidized and unsubsidized loans have not been increased.

September 2006 (2006-2007) EDExpress for Windows Release 2.0 Desk Reference Addendum 10
Origination records: Edits will be modified to allow subsidized and unsubsidized Direct Loans
to be originated at the higher loan limits established in the HERA. If a student already has a loan
awarded at pre-HERA loan limits, you must create a new loan to award additional loan funds the
student may be eligible for due to the higher limits.

Disbursement records: Anticipated and actual disbursement amounts can be entered following
the higher loan limits. Note: The COD System does not accept disbursement records calculated
at the higher loan limits unless the origination date is on or after July 1, 2007.

Import from an external source: Loan data imported from an external system in an External
Add (DIEA07OP) or External Change (DIEC07OP) file can include Loan Amount Approved
amounts based on the higher loan limits.

Direct Loan Origination Fee Change

The HERA made changes to the Higher Education Act of 1965 to reduce the loan fee charged to
Stafford borrowers in the Direct Loan Program. This fee drops to 2.5 percent on July 1, 2007;
2.0 percent on July 1, 2008; 1.5 percent on July 1, 2009; and 1.0 percent on July 1, 2010.

For any 2006-2007 Stafford Subsidized or Unsubsidized loans that have a first disbursement date
on or after July 1, 2007, the Sub/Unsub Loan Fee Percentage in COD School setup (Direct Loan)
must be changed to 2.5 percent. This setup field can be modified by selecting Tools, Setup from
the menu bar, clicking the COD tab, and then selecting the School button. If the Direct Loan tab
is not selected, click the Direct Loan tab at the top of the screen. Change the value in the
Sub/Unsub Loan Fee Percentage field to 2.500 and click OK.

Note: If you are still originating loans for 2006-2007 with a first disbursement date prior to July
1, 2007, you must change the Sub/Unsub Loan Fee Percentage field back to 3.000 prior to
originating those loans.

You can change the Origination Fee percentage at the individual record level using the
instructions provided in EDExpress 2006-2007 Online Help (Help, Help Topics, Other HERA
Changes Overview).

Single Disbursement of Loans

The exemption of institutions with low cohort default rates from certain multiple disbursement
requirements has been reinstated in the law. An institution with a cohort default rate of less than
10 percent for each of the three most recent fiscal years for which data are available, including an
eligible foreign institution, may once again disburse, in a single installment, loans that are made
for one semester, one trimester, one quarter, or a four-month period.

September 2006 (2006-2007) EDExpress for Windows Release 2.0 Desk Reference Addendum 11
If your school meets these cohort default rate requirements, you can designate in the COD
School setup (Direct Loan) that you are a “Special School” and can therefore disburse loans in a
single disbursement. Select Tools, Setup from the menu bar, click the COD tab, and select the
School button. If the Direct Loan tab is not selected, click the Direct Loan tab at the top of the
screen. Select the Are You a Special School? checkbox and click OK.

September 2006 (2006-2007) EDExpress for Windows Release 2.0 Desk Reference Addendum 12
Where to Get More Information
• EDExpress for Windows 2006-2007 Online Help. For basic guidance and information on
using the EDExpress software, select Help, Help Topics from the EDExpress menu bar.
You can view the main list of EDExpress help topics by module on the Contents tab or scroll
through available help topics on the Index tab.

• Dear Partner/Colleague Letters related to the HERA on the Department of Education’s

(ED’s) IFAP Web site, located at ifap.ed.gov. Look for the link to HERA-related documents.

• The 2006-2007 Electronic Data Exchange (EDE) Technical Reference and the 2006-2007
Common Origination and Disbursement (COD) Technical Reference, available on ED’s
fsadownload.ed.gov Web site.

• For technical support for EDExpress, call CPS/SAIG Technical Support at 800/330-5947
(TDD/TTY 800/511-5806), 7 a.m. to 7 p.m. CT, Monday through Friday, excluding federal
holidays. Or e-mail inquiries to [email protected]. You will receive a response to your e-
mail within one business day.

• For other questions about the HERA, contact the Federal Research and Customer Care
Center (RCCC) at 800/433-7327 or 202/275-5532 (fax). Or e-mail the RCCC at
[email protected]. Hours are 9 a.m. to 5 p.m. ET, Monday through Friday,
excluding federal holidays.

September 2006 (2006-2007) EDExpress for Windows Release 2.0 Desk Reference Addendum 13