The U.S. Department of Education (ED) recently published Dear Colleague Action Letter # 4 (DCL) concerning implementation of the NSLDS Central Processing System (CPS) Post-Screening process. This DCL addresses the issue of changes in an applicant’s eligibility for Title IV aid (due to a default or a overpayment) during the period of time between the filing of the application and the actual disbursement of funds. To solve this problem, NSLDS has implemented a Post-Screening process which will regularly scan for changes in default or overpayment status.

Each institution is responsible for reviewing any ISIR transaction it receives as a result of this process and determining whether the applicant’s eligibility for Title IV aid has been affected. In addition the DCL stresses the importance of reviewing all ISIRs and SARs regardless of the reason for the creation of the transaction. The DCL also lists possible penalties for failure to properly monitor student eligibility All institutions are referred to pages 4 through 6 and Questions 12 through 17 of the July 1996 Dear Colleague Letter (GEN-96-13) for information regarding the treatment of an applicant’s eligibility for Title IV aid when a change in financial aid history is reported (please refer to UHEAA Bulletin, Volume 96-Issue 45).

A copy of the DCL can be found on ED’s web-site at http://ifap.ed.gov. If you are unable to access this web-site and would like a copy of the DCL, please contact Lynda Reid at (801) 321-7211. Any questions regarding the this letter can be directed to the UHEAA Policy and Training Department at (801) 321-7166.