ECM Fin Aid

ECM NEWSLETTER April 2026

Wed, 15 Apr 2026 18:01:23 GMT

ECM NEWSLETTER March 2026

Mon, 23 Mar 2026 14:20:45 GMT

ECM NEWSLETTER February 2026

Wed, 04 Feb 2026 15:57:14 GMT

ECM NEWSLETTER January 2026

Tue, 13 Jan 2026 14:49:05 GMT

ECM NEWSLETTER December 2025

Thu, 04 Dec 2025 21:51:50 GMT

ECM NEWSLETTER November 2025

Sat, 08 Nov 2025 15:10:17 GMT

ECM NEWSLETTER November 2025

ECM NEWSLETTER October 2025

Mon, 20 Oct 2025 11:11:08 GMT

ECM NEWSLETTER October 2025

ECM NEWSLETTER September 2025

Tue, 09 Sep 2025 06:18:01 GMT

ECM NEWSLETTER September 2025

ECM NEWSLETTER August 2025

Tue, 12 Aug 2025 18:22:34 GMT

ECM NEWSLETTER August 2025

ECM NEWSLETTER July 2025

Wed, 23 Jul 2025 15:27:59 GMT

ECM NEWSLETTER July 2025

Important Update: Senate-Passed “One Big Beautiful Bill Act” – Key Higher Education Impacts

Tue, 15 Jul 2025 17:21:12 GMT

Dear School Partners,

The U.S. Senate has passed the “One Big Beautiful Bill Act,” a sweeping legislative package that includes major changes affecting federal student aid programs and institutional accountability. Below is a summary of many of the key provisions relevant to higher education institutions. This list is not comprehensive but a starting point to begin thinking about the upcoming changes.

�� Student Loan & Repayment Changes

Graduate PLUS Loans Eliminated: Grad PLUS loans will be discontinued on July 1, 2026. Students with existing Graduate PLUS loans as of June 30, 2026 may continue to receive graduate PLUS loans to the completion of their program of study. (That time to complete is the lesser of 3 years or the difference between the published minimum time for a full-time student to complete the program and the period of study the individual completed.)

New aggregate borrowing caps will apply beginning July 1, 2026:
$100,000 for graduate students ($20,500 per academic year)
$200,000 for professional programs ($50,000 per academic year)
Graduate-level degree program that prepares students for a specific profession (examples: Doctor Medicine, Juris Doctor, Doctor of Optometry, Doctor of Dental Surgery, etc.)
New Repayment Plan (RAP):

• Replaces existing income-driven repayment plans by 2028

• Income-based repayment based on adjusted gross income, with a minimum payment of $10 per month.

Undergraduate Subsidized Loans: 150% Subsidy Limit restored (limits subsidized usage to 150% of program length)
Eliminates unemployment and economic hardship as reasons for deferment or forbearance effective July 1, 2027
The law contains a $257,500 borrowing cap on all federal student loans, excluding borrowed Parent PLUS loan amounts.
The law requires institutions to prorate annual loan amounts in direct proportion to the percentage of full-time the student is enrolled.

�� Pell Grant Changes

Pell Grant eligibility extended to shorter-term workforce programs.
Requires foreign income to be included in the calculations for Pell eligibility and requires the use of the IRS definition of AGI.
Pell recipients cannot receive the full award if all costs are covered by non-federal aid.
Additional funding added to address shortfall through FY 2026

��️ Institutional Accountability

Graduate Earnings Accountability: Institutions must meet minimum earnings thresholds for graduates to retain loan eligibility for specific programs.
Return of Credit Hour Definition: Tightens program eligibility and delivery models.

�� Endowment Tax Expansion

Institutions that serve less than 3,000 students are exempt from the proposed endowment tax.
Private institutions with 3,000+ students with endowments:

• $500K/student: 1.4% tax

• $750K–$2M/student: 4% tax

• Over $2M/student: 8% tax

If you have questions about how these changes may impact your institution or your students, please don’t hesitate to reach out.

Sincerely,

Bridget McGuire

Chief Operating Officer

FA Solutions

ECM NEWSLETTER June 2025

Mon, 16 Jun 2025 12:29:29 GMT

ECM NEWSLETTER June 2025

ECM NEWSLETTER May 2025

Fri, 16 May 2025 16:40:50 GMT

ECM NEWSLETTER May 2025

ECM NEWSLETTER April 2025

Fri, 11 Apr 2025 07:06:27 GMT

ECM NEWSLETTER April 2025

ECM NEWSLETTER March 2025

Tue, 04 Mar 2025 19:27:50 GMT

ECM NEWSLETTER March 2025

ECM NEWSLETTER January 2025

Tue, 21 Jan 2025 11:56:57 GMT

Federal Student Aid Eligibility for Borrowers with Defaulted Loans: Fresh Start restores Title IV aid for pre-March 2020 loan defaulters, enabling aid access and repayment options for one year.

Essential Insights from Our Webinar Series on Compliance, Self-Care, and Student Success

Tue, 07 Jan 2025 16:18:17 GMT

As we gear up for the regulatory and compliance changes in 2025, it's crucial to be well-prepared. Dive into our webinar series that addressed key topics under the evolving higher education landscape. Each session is a treasure trove of insights and practical strategies to help you navigate the new rules and realities. Whether you're looking to stay ahead of compliance updates, seeking ways to support your staff's mental health, or aiming to break down silos for a unified approach to enrollment, our sessions offer actionable insights and strategies.

1. New Rules, New Realities: Higher Ed Under a New Administration

Discover how the new administration's policies are reshaping financial aid, accreditation, and compliance standards. This webinar provides a comprehensive overview of the latest regulations and what they mean for your institution.

Watch the Recording

2. Mastering the Balance: Self-Care Strategies for the Higher Ed Community

Explore effective self-care strategies specifically tailored for higher education professionals. Learn how to manage stress and foster well-being amidst the constant changes in the education sector.

Watch the Recording

3. Shattering Enrollment Silos: Developing Unified Strategies

Learn how to break down silos within your institution to create a unified enrollment strategy. This session discusses collaborative approaches to increase efficiency and improve student outcomes.

Watch the Recording

4. Successful Strategies to Manage HCM2

Gain insights into managing your institution's human capital management with HCM2. This webinar offers strategies to optimize workforce management in response to evolving educational demands.

Watch the Recording

5. Transforming Student Experience with Extraordinary Communication Strategies

Uncover communication strategies that dramatically enhance student engagement and satisfaction. This session focuses on innovative ways to connect with and support students throughout their educational journey.

Watch the Recording

Staying informed and adaptable is key in the ever-changing landscape of higher education. Our webinars are packed with essential knowledge and strategies to help you thrive in 2025 and beyond. Don’t miss out on the insights—watch the recordings and share them with your colleagues to ensure your team is ready for the year ahead.

Our motto is "A True Extension to your Financial Aid Office," and that’s exactly what we seek to provide to all our partners. Want to learn more? Please feel free to check out our services or get in touch today.

ECM NEWSLETTER December 2024

Thu, 05 Dec 2024 10:13:42 GMT

Simplification Information Area on Knowledge Center: Stay updated on the FAFSA Simplification Act and FUTURE Act in 2025 by bookmarking key pages such as regulations, updates, alerts, and FAQs. Access updates are directly available via this link.

ECM NEWSLETTER November 2024

Tue, 19 Nov 2024 17:16:40 GMT

2024 Virtual Federal Student Aid Training Conference – Registration Now Open: Registration is now open for the 2024 Virtual Federal Student Aid Training Conference, held Dec. 3- 6. Register free via FSA Partner Connect. The event features keynote speeches, sessions, and exhibits.

ECM NEWSLETTER October 2024

Thu, 10 Oct 2024 11:07:02 GMT

FY 2021 Official Cohort Default Rates Distributed Sept. 23, 2024: On October 4, 2024, it was confirmed that some schools received erroneous cover letters with blank rates in their FY 2021 CDR packages. Corrections are available via the SAIG mailbox. The appeal period begins on October 4, 2024.

Navigating the FAFSA Verification Maze: A Comprehensive Guide for the 2025-2026 Award Year

Thu, 03 Oct 2024 12:43:26 GMT

As the new academic year approaches, students and educational institutions alike must navigate the complex waters of FAFSA verification. The U.S. Department of Education recently published crucial updates for the 2025-2026 award year that warrant close attention. This article delves into these updates, providing a clear roadmap to ensure compliance and optimize student aid.

Direct Data Exchange Continues

The verification process for the upcoming award year remains largely unchanged, with the continued utilization of the Direct Data Exchange (FA-DDX) between the U.S. Department of Education and the Internal Revenue Service (IRS). This system automatically imports most U.S. income and tax information directly onto the FAFSA form. Importantly, if federal tax information (FTI) is successfully transferred, institutions are not required to collect a Tax Return Transcript or a signed copy of the 2023 income tax return, streamlining the process considerably.

Special Considerations for Identity Theft Victims

In a significant shift, the Department has updated its requirements for individuals who have been victims of IRS tax-related identity theft. Given the extended processing times for Tax Return DataBase View (TRDBV) transcript requests—often exceeding a year—victims are now only required to submit a signed 2023 income tax return with applicable schedules. Additionally, they must provide an IRS 4674C letter acknowledging the identity theft or a signed statement confirming the IRS is aware of the situation.

Incarcerated Students: Verification Simplified

The verification requirements for confined or incarcerated students have been carried over from the previous award year. These students will only need to verify their identity and sign the statement of educational purpose if they are selected for Verification Tracking Group V4 or V5. Institutions are relieved from verifying these students under Verification Tracking Group V1, easing administrative burdens.

Institutional Autonomy in Verification Documentation

Institutions retain the freedom to develop their own text, forms, documents, and certifications tailored to the verification needs of specific students or student groups. However, they must adhere strictly to the language provided in the "Statement of Educational Purpose" for students in Verification Tracking Groups V4 and V5.

Record-Keeping and Institutional Responsibilities

The Department emphasizes the importance of proper record-keeping, reminding institutions that all verification documentation must be maintained for the required Title IV record retention period. Institutions are advised to take proactive steps in ensuring documentation is correctly matched to the appropriate student, especially when discrepancies in tax documentation occur.

Looking Ahead

These updates underscore the Department's commitment to maintaining the integrity of Title IV programs while adapting to challenges such as processing delays and identity theft. Institutions are encouraged to review these changes thoroughly and prepare their verification processes accordingly to support their students effectively.

As the landscape of federal student aid continues to evolve, staying informed and prepared is paramount. By understanding and implementing these updated verification guidelines, educational institutions can better serve their students and ensure that eligible individuals receive the aid they need to pursue their academic goals.

Struggling to find the perfect financial aid solutions to sustain higher education funding without the stress? ECM, an FA Solutions company, is here to assist. We specialize in compliance consulting, Title IV eligibility, and financial aid processing, ensuring streamlined operations and enhanced enrollment at your university.

We firmly believe that our success is directly linked to the success of our valued partners. Want to learn more? Please feel free to check out our services or get in touch today .

ECM NEWSLETTER September 2024

Sun, 01 Sep 2024 06:39:10 GMT

ECM NEWSLETTER August 2024

Mon, 19 Aug 2024 19:19:32 GMT

Top 6 Takeaways from Recent Financial Aid Regulation Announcements

Fri, 16 Aug 2024 22:41:10 GMT

Over the last few months, there have been a few key announcements worth mentioning to ensure you remain compliant. Following these updates will help maintain compliance. Here are a few of the top takeaways from recent Department of Education updates:

Important Updates

2018-19 Funding Cancellation Deadline: Federal Pell Grant/Iraq Afghanistan Service Grant (IASG) and Campus-Based Programs:
The Funding Cancellation Deadline for Pell Grants, IASG, and Campus-Based Programs is five years post-Data Submission Deadline. Schools must complete all reconciliation and finalize activities before this deadline; Direct Loans and TEACH Grants are exempt.
2023-24 Grant Data Submission (Closeout) Deadline:
The Data Submission (Closeout) Deadline for Pell, IASG, and TEACH Grant Programs is the last business day in September. Schools must meet regulatory requirements to reconcile to a zero cash balance by this date.
TEACH Grant Closeout Information for 2023-24 Award Year:
The TEACH Grant data submission deadline for the 2023–24 award year is Monday, Sept. 30, 2024. All school data must be received and accepted by this date for the final Ending Cash Balance.

More Federal Updates

4. Draft NSLDS FVT/GE Completers List Now Available:
The draft FVT/GE Completers List was sent to schools on Aug. 3–4, 2024. Schools have until Oct. 5, 2024, to review and correct student data. This list includes data for debt-to-earnings and earnings premium calculations.

5. NSLDS Professional Access Website – Renewing Credentials for the NSLDS Reports Tool:
The NSLDS Reports Tool has been upgraded, causing invalid credentials for some users. To ensure proper functionality and avoid report delays, all users should renew their credentials via the NSLDS Professional Access website.

6. Volume 8, Volume 9, and Errata to AVG Now Available [2024-25 Federal Student Aid Handbook]:
Federal Student Aid announces the release of Volume 8 and Volume 9 of the 2024-2025 Handbook, covering Direct Loans and TEACH Grants, with updates to the Application and Verification Guide.

Of course, these are just a few highlights of information over the last few months. Let our financial aid and compliance experts help your department boost its efforts. Contact us today to explore options. Get FA Solutions and ECM today!

Thank you for taking the time to review our newsletter!

Rob Wright
(813) 435-6227

Disclaimer of Liability:
Every effort is made to provide accurate and complete information in FA Solutions, LLC’s newsletters. However, FA Solutions makes no claims, promises, or guarantees about the accuracy, completeness, or adequacy of the contents of the newsletters and expressly disclaims liability for errors and omissions in the contents of its newsletters. Although FA Solutions may include links providing direct access to other Internet resources, including websites, FA Solutions is not responsible for the accuracy or content of information contained in these sites.

ECM NEWSLETTER July 2024

Mon, 29 Jul 2024 17:37:45 GMT

Is your Institution in Compliance with all of the FVT/ GE Requirements? Let ECM Help

Wed, 10 Jul 2024 12:54:39 GMT

Recent statistics show that only 74% of college graduates earn more than the typical high school graduate. The overwhelming majority of these graduates come from for-profit institutions. However, nearly 15% are from public institutions and 9% are from non-profit institutions. Given these facts, it's unsurprising that the Department of Education has updated some of its guidelines in order to help students make informed educational decisions. The new requirements will change financial aid compliance operations and create additional paperwork, but ECM stands ready to recommend the best practices for institutions to help financial aid directors meet student needs and regulatory requirements.

How can ECM Help with Compliance?

ECM is a financial aid servicer specializing in helping educational institutions stay in step with ever-changing regulatory requirements. Many of our staff members worked in financial aid departments before joining our team. We have the expertise and tools you need to stay compliant. We also have a full understanding of the many challenges you face in providing students with a quality education that will serve them well for life. Get in touch with us to find out how we can help you meet the new FVT/GE requirements to obtain or retain approval for Title IV funding.

What are the New Changes, and How Will They Impact Educational Institutions?

The Financial Value Transfer and Gainful Employment regulatory requirements apply to any educational institution that offers programs eligible for Title IV funding. Under these requirements, educational institutions will need to provide extensive data on individual students, program length, cost, and loans to the Department of Education. The DOE will then use the data to calculate debt-to-earning metrics and an earning premium metric. This will enable students to see the expected financial outcome of taking a particular course.

Educational institutions will be required to display these metrics on their websites. What's more, colleges and universities will need to inform students about programs that the Department of Education has classified as "high debt" or "low earnings" before students enroll in these programs. GE programs that don't meet the new requirements will no longer be eligible for Title IV funding.

What is the Deadline for Turning in Paperwork?

Educational institutions can start reporting data to the Department of Education on July 1, 2024. Institutions must submit their first reports by October 1, 2024. As student information changes as graduates complete or drop out of courses, institutions will need to send updated data to the DOE every year.

The deadline for acknowledgments and warning requirements is July 1, 2026. This is also the deadline for the establishment of the Department of Education's disclosure website.

Frequently Asked Questions

Click the link to access FVT/GE FAQs related to general information, debt-to-earnings rates, earnings premiums, warnings, disclosures and acknowledgments, and reporting requirements. As the regulatory landscape is continually evolving, it's important to stay up-to-date on current requirements to remain compliant with DOE stipulations.

ECM NEWSLETTER June 2024

Mon, 10 Jun 2024 14:01:30 GMT

2024–25 Processing Timeframes Associated with Reporting V4/V5 Outcomes and Unusual Circumstances and Homeless Youth Determinations, and Update on ISIR Values for Ward of Court and Foster Youth Status.

ECM NEWSLETTER May 2024

Wed, 08 May 2024 16:08:27 GMT

The Impact of HCM2: What Financial Aid Professionals Need to Know

Mon, 22 Apr 2024 09:54:58 GMT

What is HCM2?

HCM2 (Heightened Cash Management 2) is an alternative method used for institutions to receive and disburse federal funds. When operating under this payment method, schools must credit a student’s ledger for the Title IV funds they qualify for and confirm the student received credit balances due before submitting a request to receive these funds.

What is the process of disbursing and receiving funds under HCM2?

Institutions are required to credit student ledgers and pay credit balances due using institutional funds for the Title IV awards they qualify for. They will be required to document that all eligible students received their credit balances via ACH or check cleared confirmation before requesting reimbursement. HCM2 guidelines then require institutions to submit a payment request via COD to receive a reimbursement. The school will receive a form confirming the dollar figure and types of funds requested that must be signed by the President and the user submitting the document. The school will also receive an Excel template that needs to be completed for every student they are requesting reimbursement for. The Excel spreadsheet will request the following data for each student:

⮚ Identifying information

⮚ Name of the program

⮚ Enrollment status/enrollment intensity

⮚ Admission criteria (such as high school diploma, GED, etc)

⮚ Clock/credit hours in the program

⮚ Clock/credit hours in academic year

⮚ Clock/credit hours in payment period

⮚ Clock/credit hours earned

⮚ Cost of attendance

⮚ Direct cost for the enrollment period

⮚ Percentage of tuition retained (for withdrawn students)

⮚ GPA and SAP

⮚ Student award requested

⮚ Student award amount

⮚ Credit balance information (ACH or cleared check confirmation)

A sample of students from the submission will be randomly selected by the Department of Education for further review. The school will have 48 hours to upload the completed student file for all selected students who will then be reviewed by a Department of Education analyst for approval. If all requests are approved, the amount of the payment request will be wired into the institution’s account. If errors are found by the analyst, they can approve only some of the requests or none at all, resulting in less funds being wired into the institution’s account. It is critical that financial aid professionals meticulously review all data for accuracy when submitting HCM2 payment requests to prevent errors that would result in receiving less funding.

What key facts should financial aid professionals know about HCM2?

⮚Institutions on HCM2 status cannot hold credit balances even if a student or parent/guardian gives consent.

⮚ Institutions must confirm students receive their credit balances due via ACH confirmation or cleared check confirmation before submitting a payment request. ⮚ Payment requests can only be submitted once every 30 days.

⮚ HCM2 reimbursements can take up to 30 days to be approved by a Department analyst.

⮚ Only some or none of the disbursements can be approved for reimbursement if any errors are found by the analyst.

⮚ The administration of the HCM2 process at an institution must be audited yearly .

Why might an institution be placed on HCM2?

The Department of Education places institutions on HCM2 status for various reasons to ensure compliance with federal regulations. These reasons can include:

⮚ Audit findings

⮚ Program reviews

⮚ Missed reporting deadlines

⮚ Student complaints

⮚ High cohort default rates

⮚ Action taken by a consumer protection agency

⮚ Adverse action against a school by a state authorizing agency or accreditor

⮚ Failure to comply with Title IV requirements

Working to resolve the challenges that led to an institution being placed on HCM2 and utilizing best practices can aid in an institution meeting the compliance requirements necessary to be removed from HCM2 status.

What are the best practices recommended by FA Solutions and Educational Compliance Management (ECM)?

⮚ Focus on training staff in accuracy when it comes to aid disbursement and adherence to Title IV regulations.

⮚ Continuously review and amend compliance protocols in alignment with latest federal regulations and updates.

⮚ Ensure all documents are reviewed for accuracy before creating an HCM2 submission.

⮚ Create a student file for each student before starting a submission to prepare for the 48-hour deadline to upload files for a sample review.

⮚ Develop a calendar of student disbursements that will be requested in each submission.

⮚ Maintain open communication with your assigned Department of Education analyst regarding submissions.

How can FA Solutions and ECM help my institution with the HCM2 process?

FA Solutions Brands can offer expert assistance in meeting the requirements of HCM2 processing. We offer a variety of solutions from consulting to full service processing to meet the needs of any type of institution to ensure compliance requirements are met and assist schools with navigating the workflow of HCM2 processing and submissions. Get in touch with us today to find out more about how our customizable services can support your institution.

Sources

NASFAA | New Rules for Schools under Reimbursement and Heightened Cash Monitoring Payment Methods

eCFR :: 34 CFR 668.162 -- Requesting funds.

Requesting and Managing FSA Funds | 2023-2024 Federal Student Aid Handbook Implementation Guide (ed.gov)

ECM NEWSLETTER April 2024

Mon, 01 Apr 2024 09:51:31 GMT

ECM NEWSLETTER March 2024

Thu, 07 Mar 2024 10:59:22 GMT

ECM NEWSLETTER February 2024

Tue, 06 Feb 2024 15:33:38 GMT

ECM NEWSLETTER January 2024

Tue, 09 Jan 2024 18:43:00 GMT

FAFSA Evolution: A Year of Specialized Insight for Financial Aid Directors

Fri, 05 Jan 2024 19:07:55 GMT

In 2023, FA Solutions and Education Compliance Management (ECM) embarked on a mission to empower financial aid directors with invaluable insights into the evolving landscape of FAFSA Simplification. Through a series of thought-provoking webinars, these sessions went beyond expertise, providing a profound understanding for institutions navigating the intricacies of financial aid.

1. Latest and Greatest FAFSA Simplification Information and Impact to your FA Office

In this session, our distinguished speakers, leaders in the field, delivered a comprehensive overview of FAFSA simplification and its broader impact on your financial aid office operations. Tailored for financial aid professionals, the webinar offered strategic insights to navigate this evolving landscape.

2. FAFSA Simplification: Spotlighting SAI and the New Pell Calculation

This session discussed in greater details changes associated with FAFSA Simplification, focusing on the new Pell Calculation introduced. Financial aid professionals gained insights into the intricacies of the calculation and its direct impact on awarding strategies. The session also served as a powerful reminder regarding early implemented Cost of Attendance Changes.

3. 2023-2024 FAFSA Simplification Including Professional Judgements and Cost of Attendance Changes

Tailored session for financial aid professionals, this session provided an in-depth analysis of the new FAFSA simplification requirements. The discussion extended to professional judgements, cost of attendance, student eligibility, and other critical changes, offering profound insights for those steering financial aid decisions.

As we reflect on these transformative sessions, FA Solutions and ECM are more than just third party servicers; we are steadfast partners in your institution's financial aid journey. Our commitment to providing unparalleled guidance will continue to grow alongside the dynamic changes in FAFSA. Together, let's embrace the challenges and opportunities that lie ahead in this adventurous FAFSA Simplification landscape.

Partner with FA Solutions and ECM for a journey filled with knowledge, growth, and success. Join us in shaping the future of financial aid - your institution deserves nothing less.

ECM NEWSLETTER December 2023

Thu, 21 Dec 2023 16:21:58 GMT

ECM NEWSLETTER NOVEMBER 2023

Wed, 01 Nov 2023 19:00:48 GMT

ECM NEWSLETTER October 2023

ECM NEWSLETTER September 2023

Thu, 28 Sep 2023 17:39:43 GMT

ECM NEWSLETTER August 2023

Thu, 17 Aug 2023 11:08:07 GMT

ECM NEWSLETTER August 2023

ECM NEWSLETTER July 2023

Thu, 20 Jul 2023 14:08:20 GMT

ECM NEWSLETTER July 2023

ECM NEWSLETTER June 2023

Wed, 21 Jun 2023 12:25:00 GMT

ECM NEWSLETTER May 2023

Tue, 16 May 2023 15:53:00 GMT

5 Benefits of Partnering with the Right Third Party Financial Aid Servicer

Wed, 26 Apr 2023 14:02:00 GMT

The total loan volume for Federal Direct Subsidized Loans during the 2020-2021 year was $16.5 billion. It was $45.5 billion for Federal Direct Unsubsidized Loans, $1.1 billion for work-study, $26.5 billion for Pell Grants … and so on.

That’s a lot of money flowing through the system, which puts gobs of stress on you and your team. That’s why so many financial aid offices are partnering with third-party servicers today. Here are five reasons you should do the same!

1. Keep Your Financial Aid Processes Moving Smoothly

More than 85 percent of higher education students receive some form of financial aid, representing more than 17 million FAFSAs (Free Application for Federal Student Aid). Managing that kind of volume is tough and it’s easy to get bogged down. A third Party Servicer’s support can measurably reduce the load by supporting processes to reduce bottlenecks and keeping students' files moving through the process.

2. Tailor Your FA Services to Your Needs

Not every school has the same needs, so out-of-the-box solutions often don’t work. A financial aid consulting company can help you create a system that works for you, tailored to your unique student body.

3. Speed Up File Processing

Not only do you have to decide who meets eligibility criteria for various funds from a diverse group of funding sources, you have to process each file in the relatively short timeline students expect and then document all decision-making.

It’s enough to make anyone want to bury their head before each start, which is why increasing numbers of schools are partnering with third-party financial aid services. A knowledgeable provider will help ensure you turn your files around in 2-3 days for standard applications.

Sounds better than staying up all night, right?

4. Stay Up to Date on Changes

Big changes are coming to the FAFSA in hopes of simplifying it for students and financial aid offices. In the short term, however, all changes create more havoc. Experts can help you integrate these changes quickly and without fuss into your current systems.

5. Automate, Automate, Automate

We all know automation can help make life simpler, but getting there isn’t always easy. Creating a system from scratch or customizing a packaged software system takes time, and an experienced third-party financial aid solutions provider can do that for you!

Get the Help You Need Today … and Every Day

Need some help finding the right financial aid solutions? Educational Compliance Management is here to help, offering third-party processing, cash management, compliance, accreditation and Title IV support to smooth your workday and support enrollment at your school, "Your institution is unique, so is our solution," and that’s exactly what we seek to provide to the ECM Family of Schools. Want to learn more? Please feel free to check out our services or get in touch today .

ECM NEWSLETTER April 2023

Thu, 06 Apr 2023 12:34:00 GMT

ECM NEWSLETTER April 2023

ECM NEWSLETTER March 2023

Thu, 09 Mar 2023 17:14:00 GMT

ECM NEWSLETTER March 2023

ECM NEWSLETTER February 2023

Fri, 17 Feb 2023 15:13:00 GMT

ECM NEWSLETTER February 2023

Staying Up to Date with the Clery Act: Using Reminders to Keep Your Website Compliant

Wed, 01 Feb 2023 19:29:00 GMT

Colleges and universities are responsible not only for educating students but also for keeping them safe. As part of this effort, the Clery Act has policies, which Educational Compliance Management Inc. also recommends, that require schools to inform students, parents, and employees about crimes committed on and around college campuses. Previously known as the Campus Security Act, the Clery Act has undergone amendments several times since its initial creation in 1990, often in response to incidents that demonstrate the need for additional procedures. Schools that violate the Clery Act can face substantial fines and may lose federal funding. Setting reminders for each of the Clery Act requirements listed below can help ensure that you maintain compliant.

1. Timely Reports of Clery Act Crimes

Under the Clery Act, federally funded colleges and universities must provide the campus community with timely warnings about criminal activity. This includes four specific categories of crime:

Criminal offenses like homicide and sexual assault
Hate crimes motivated by bias
VAWA offenses such as stalking or domestic violence
Arrests and referrals for disciplinary action

The definition of "timely" isn't explicitly stated in the Clery Act, so each school has the power to determine what constitutes a timely notification. Consider setting a reminder to issue a daily online report that lists any crimes that have occurred within the past 24 hours and advises students about any ongoing threats that might exist.

2. Test Emergency Response and Notification Systems

Schools are required to have a recorded policy for emergency response, notification, and testing. Emergency notifications differ from timely warnings in that they are issued immediately when a dangerous situation on campus is underway. Schools should periodically review their policies for necessary changes or updates. They should also create reminders to conduct regular emergency notification tests, which are vital in making sure that the system functions properly. Testing also familiarizes everyone associated with the college with how the notifications work so that they can react appropriately in the event of a real emergency.

3. Issue an Annual Security Report

The Clery Act also requires private and public colleges and universities that participate in federal student aid programs to publish an Annual Security Report (ASR) on October 1st. The report should include:

Campus crime statistics from the preceding three calendar years
Recommendations and plans to improve campus safety
Emergency response and notification policies

Set a reminder to not only disseminate the report to students and employees on your website but also to collect data and create the report by various deadlines throughout the year.

Maintain Financial Aid Compliance with ECM

At Educational Compliance Management, we understand the importance of maintaining compliance with regulations such as the Clery Act. Our Title IV Specialist can help you develop an efficient system that maintains full compliance with Department of Education regulations. Contact us to learn more about what we have to offer. Your institution is unique, so is our solution.

ECM NEWSLETTER January 2023

Fri, 13 Jan 2023 20:34:00 GMT

ECM NEWSLETTER January 2023

Student Borrower Reaffirmation: A Full NSLDS Guide to Viewing & Updating

Wed, 04 Jan 2023 15:31:00 GMT

Students who have inadvertently received loans in excess of limits may have lost their Title IV loan eligibility, but it is possible to get the loans reaffirmed. There is a process for doing so by having the student repay the excess loan funds or agreeing to repay under the terms of the current Master Promissory Note through the process of “reaffirmation.” Schools can help students with their reaffirmations on NSLDS following several simple steps.

Identifying the Need for Reaffirmation

Reaffirmation on NSLDS requires verification that the aid recipient has not already reaffirmed the debt. To do this, you can go into the platform and click on “Search Aid Recipient.” Search by Social Security Number, first name, date of birth, or through the “Previously Searched Aid Recipient” tab.

After this, you can access each student’s reaffirmation history on the Reaffirmation page. You can also find reaffirmation on the loan summary page, which will show a blue loan note that states “Reaffirmation” along the bottom of the screen.

Ready to Move Forward With Reaffirmation?

For any loan servicers or financial aid directors who need to assist with reaffirmation, the next step is to add a reaffirmation on the loan detail page. By clicking on “View Loan Details,” you can review the loan before clicking on “Review Reaffirmation.” The “Add Reaffirmation” button will be available if a particular loan is eligible.

It’s also possible to add reaffirmations from the Reaffirmation History page. If you select a loan from the provided list, it will come with repopulated fields with loan identifiers. You will need to fill in a minimum of one of the “Exceeded Amount” fields to complete the reaffirmation.

Financial Aid Processing can be complicated, but ECM can help

Whether it is the process of Reaffirmation or other financial aid tasks, there is a lot to remember when working with Title IV aid. ECM offers helpful services such as full student lifecycle packaging, document review, verification, and cash management, so you can ensure your students have what they need to pursue their educational objectives. Let us help uncomplicate the federal financial aid process and let you do what you do best, connecting with your students.

ECM NEWSLETTER December 2022

Thu, 01 Dec 2022 10:00:00 GMT

ECM NEWSLETTER December 2022

ECM NEWSLETTER November 2022

Mon, 14 Nov 2022 08:52:00 GMT

ECM NEWSLETTER November 2022

Top 5 Ways to Boost Compliance in your Financial Aid Office

Fri, 28 Oct 2022 08:50:00 GMT

Millions of university students rely on financial aid in order to earn a degree, and it’s not hard to see why. The cost of tuition/fees at public four-year educational institutions has risen by 10% since 2010; for private non-profit educational institutions, these costs have risen by a whopping 19%. Improving compliance in your financial aid office enables you to attract talented students from across the nation and meet their financial needs so they can focus on their studies. Educational Compliance Management Inc. recommends the following five practices for financial aid directors who want to boost compliance.

1. Review Your Website and Ensure Your Consumer Information is Accurate and All Links Work

Your website must have accurate information at all times. If financial aid terms and conditions change, or there are other changes in your financial institutions, your website must be modified to reflect these changes as quickly as possible. It’s also important to ensure all links work so prospective students are able to find information and fill out an application without undue delay.

2. Ensure Your Policies and Procedures are Up to Date

Are your policies and procedures up to date? Students who ask for information from your office should only be given current information. They should also be informed if there are upcoming changes in the financial aid process.

3. Create a Compliance Calendar with Important Dates

Every financial aid office should have a compliance calendar with important dates. Online calendars can offer automatic reminders to help staff members prepare for important deadlines; at the same time, a large calendar on the office wall can help everyone see the deadline even if they are not at their computers. Choose a method that works best for your office and make sure everyone is aware of how to track important dates and deadlines.

4. Involve the Greater School Community in the Process

Clear communication is a must to ensure that each department is aware of how the financial aid office works, what the terms and conditions are for financial aid, etc. Keep department heads abreast of important compliance deadlines and other pertinent information, so they know how the process works and can help you give students accurate information.

5. Have a Strong Network of Trusted Resources for Training Opportunities and Collaboration

Ongoing training not only boosts compliance but also improves office morale and helps your staff members reach their full potential. To this end, you’ll need a strong network of trustworthy experts who can provide training and cutting-edge resources and services such as data collection, automated software, and cybersecurity.

Educational Compliance Management is the trusted expert offering a plethora of services to financial aid departments in colleges and universities throughout the United States. Our processing services will help you maximize financial aid eligibility and enable you to distribute loans, grants, and other forms of aid as quickly and efficiently as possible. Get in touch with us at your convenience to discover how our services can boost compliance while lowering work hours and overhead costs

ECM NEWSLETTER October 2022

Tue, 11 Oct 2022 15:23:00 GMT

ECM NEWSLETTER September 2022

Sat, 10 Sep 2022 14:01:00 GMT

ECM NEWSLETTER September 2022

7 Crucial Updates of Federal Student Aid Eligibility for Borrowers with Defaulted Loans

Tue, 06 Sep 2022 09:00:00 GMT

By Rachel Gordon

1. Borrowers Can Regain Funding

Under the Fresh Start initiative, borrowers who defaulted on student loans before the pandemic payment pause can regain access to federal student loans. For many, this provides a new pathway to higher education that can provide opportunities for career growth.

2. Access to Income Driven Repayment

Borrowers who previously defaulted on their student loans have access to income-driven repayment plans, making it easier for them to get back on their feet.

3. Borrowers Have One Year To Make Payment Arrangements

Under the Fresh Start Initiative borrowers who defaulted on their loans have a year to make a payment plan following the end of the COVID-19 payment pause on December 31, 2022. This provides borrowers with the time they need to gather information to help them get on a
payment plan that makes sense for their needs.

4. Eligibility Still Matters

Students whose eligibility for loans has been affected by non-default issues (like failing to meet academic requirements) will still need to resolve their eligibility issues before receiving additional aid.

5. Eligible Loans

Loans that are eligible for the Fresh Start program include William D. Ford Federal Direct Loan Program loans (also known as direct loans), Federal Family Education Loan Program Loans (FFEL), and Federal Perkins Loans (Perkins loans must be served by the Department of Education’s Debt Management and Collections system in order to be eligible).

6. Acknowledgement Letters are Required

Borrowers currently with a default status, must sign an acknowledgement form that states their understanding of their loan terms under the Fresh Start initiative. Required verbiage for the “Fresh Start Form” has been released by the Department of Education.

Financial Aid Processing: ECM Can Help.

At ECM, we work to provide your financial aid department with the service necessary to streamline your processes, getting your students the funds, they need fast. Our services include academic program analysis to determine financial aid eligibility, real-time student aid packaging, on-demand processing that makes sense for your school’s cash flow needs, and the development and review of cost of attendance budgets. Reach out to us today to learn how we can support your school’s needs.

ECM NEWSLETTER August, 2022 | Vol.1

Thu, 18 Aug 2022 14:55:00 GMT

ECM NEWSLETTER August, 2022 | Vol.1

5 Tips to Help Your Financial Aid Staff Cope with the Fall Burnout

Thu, 18 Aug 2022 13:17:00 GMT

Over 20 million students are projected to enter higher education in 2022. Fall is the peak time for students to enroll in financial aid programs as well as school itself. When this happens, financial aid staff is stressed due to the surge in activity and the need to get everyone through the process as fast as possible. Keeping employees positive and motivated is essential for efficient, error-free processing. Educational Compliance Management Inc. recommends these practices to help with this goal.

1. Be Clear About Expectations and Priorities

Everything runs more smoothly when staff know exactly what to do and when. Communicate priorities, both for the office and for individual people. Decide whether desk work, phone calls, walk-in appointments, or something else should come first. If there are enough staff
members, try assigning one of these to each person.

2. Create a Positive Work Environment

Set up an environment that promotes positive energy. Have water readily available, provide fruit, healthy snacks, or even better, meals and add any other motivational factors that are appropriate to an office.

3. Recognize Your Employees

Simply saying “thank you” can make people feel appreciated. How you do so should depend on each employee’s personality. Would they like a public shout-out or do they prefer private thank-you cards? Get to know each employee so you can customize your presentation for
each one.

4. Provide a Quiet Place for Breaks and Lunches

Make sure employees can decompress by providing a breakroom away from the chaos. Also, make sure that management supports break times by allowing employees the time to take a lunch break, even just 30 minutes, to recharge.

5. Make Employees Part of the Bigger Picture

Keep them in the loop on things like federal updates, changes to procedures and rules, and regulatory changes. Provide them opportunities to join seminars and take in podcasts and webinars, too. This lets them feel that their position is a career rather than just a short-term
job. It also improves their work skills, so it’s a win for both sides.

Collecting financial aid applications is just one part of the student onboarding process. When it’s time for those aid applications to be processed, send them to ECM Financial Aid . We handle everything quickly and efficiently for a stress-free funding process.

5 Effective Ways to Write Policies and Procedures

Sun, 10 Jul 2022 11:53:00 GMT

As such, our team at Educational Compliance Management has come up with 5 effective ways to assist you in maintaining your policies and procedures.

Include representatives across the school community.

Understanding, creating, editing, and maintaining financial aid policies and procedures is not just the responsibility of the Financial Aid Office, these responsibilities reside across the entire school community. It is imperative to include constituents from various offices on campus not only in the process of writing the schools policies and procedures, but also in the process of maintaining them.

Some of the offices that we recommend including are Admissions, Registrar Services, Student Accounts/Bursar and members of the academic community. Financial Aid policies and procedures are impacted by the practices of all of these offices. It is important to meet on an ongoing basis to review the document to ensure that it is both up to date and being adhered to across the school.

Keep things clear and concise.

When writing your policies and procedures, write in a clear and concise fashion. Always remember to write in a way in which the school members can both easily interpret, reference, and adhere the document. It is also important to ensure the various policies are well organized and cited.

Writers and reviewers should remember that the primary purpose is to document policies for reference and to enforce consistency in work performance.

Explain the why.

The more people understand why a compliance policy and/or procedure is in place, the more invested they will be in terms of communicating and being consistent with that statement or guideline. People are naturally questioning creatures, so a good recommendation is to state why the policy or procedure is required.

The why reduces the risk of ambiguity and supports consistency in operations, communication, and messaging. Going through explanations can also help determine if you need to include step-by-step procedures or if links to them will suffice.

Utilize your resources.

Remember that you are not alone when it comes to understanding the financial aid regulations applicable to your institution. Using resources from places such as FSA Partners , for example, can go a long way and prevent you from feeling like you are reinventing the wheel.

Pay attention to ALL requirements. That means federal, state, accreditor and school-specific policies.

When it comes to financial aid, it’s not just federal regulations and compliance guidelines that need to be taken into consideration. Remember that each state has its own set of rules as does each accrediting body, and sometimes even a specific institution has additional requirements.

Do your homework and have a robust understanding of everything that is applicable.

Also, remember that a Financial Aid Department’s policies and procedures document is a LIVING document. We suggest having a recurring reminder for ongoing review as documents should be revisited to ensure they are up to date.

We Are Your Financial Aid Office

At Educational Compliance Management, we help organizations and institutions around the country maintain a fully compliant Financial Aid Office . Our team is specially trained in and knowledgeable about the ongoing and rigorous regulations released and maintained by the Department of Education (including Title IV regulations).

We’ve been in this industry now for over four decades and our services are designed to support post-secondary institutions big and small. Give us a call or fill out our online form to learn more about how Educational Compliance Management can support financial aid processing and compliance training.

Top 5 reasons Schools Need to Review their Policies and Procedures Annually

Wed, 01 Jun 2022 10:00:00 GMT

By Rachel Gordon, June 1 2022

The U.S. Department of Education (ED) issued an estimated $112 billion for grants, loans and work-study programs in fiscal year (FY) 2021 through Federal Student Aid (FSA). When instances of errors in the funding of these programs occur, the current maximum fine per violation is $59,017. Errors do not usually arise in isolation and when there are multiple findings, the associated costs can add up rather quickly. Liabilities are placed against schools for findings such as awarding funds to ineligible programs or ineligible students and mishandling of federal funds. If the findings are grave enough, there can be severe penalties for schools, from onerous additional steps to receive funding to total loss of eligibility to participate. The financial & administrative penalties illustrate how important it is for schools to avoid findings from an ED program review by reviewing the institutional policies and procedures annually. The following list shows the top five things to look for when performing these reviews.

1. Failure to Take Corrective Action

Schools must demonstrate a capability to properly administer federal aid programs . ED auditors view repeated findings very seriously because it indicates a school has not made the required corrective action to address any known issues. This omission has the potential to also illustrate the school has a lack of administrative capability or financial responsibility over Title IV funds. Repeated findings are taken very seriously by the Department of Education. It is of the utmost importance for a school to rectify any issues isolated in an audit or program review and create policies and procedures to ensure future compliance. This will often involve collaboration with other departments at the institution, so it is critical for compliance that the interdepartmental communication occur.

2. Inaccurate or Late Reporting

Schools must report current enrollment status for all current and prior Title IV aid recipients. It is crucial for school to report any changes in student status as timely as possible, which will ensure that the student is placed in the proper repayment status. Failing to report changes in enrollment status is one of the most common types of late reporting, in the same category inaccurate reporting of program data is also a common finding. Important to note is the fact that errors in the submission of data will prevent the update from being accepted. Proper procedures must be in place to ensure timely and accurate reporting of student enrollment as well as procedures for ensuring that any errors are addressed.

3. R2T4 Errors

When a student withdraws, schools must determine what portion of Title IV aid they have earned using the Return To Title IV (R2T4) calculation. These calculations can be complex and provide many opportunities for errors. Errors resulting from incorrect or late calculations are some of the top findings in annual audits and program reviews. Many schools have turned to technology to assist them in the R2T4 process. They either utilize the COD functionality or modules in their Student Information Systems. Regardless of the tool used, it is important that the school ensure the data being utilized is correct as the formula is based upon all information entered into the calculation. A small mistake can have large compliance & financial repercussions for the student and institution.

4. Late R2T4 Funding

Schools must complete their R2T4 calculations within 14 days after a student is determined to be withdrawn. Common reasons for missing this deadline include inadequate policies and procedures for tracking student withdrawals and inadequate monitoring of R2T4 deadlines. Software solutions can help with these problems, provided they are properly integrated into the school’s existing workflow. For example, these systems must automatically transfer data to each other, ensuring that administrators retain a clear view of their processes without resorting to manual data entry. If a software solution is not available, it is of utmost importance that student withdrawals be reported to the financial aid office as soon as they are processed by the registrar. Schools must also ensure that the unearned portion of funds be returned no later than 45 days after its determination that the student withdrew.

5. Verification Violations

Schools must verify the information that applicants have provided on their Free Application for Federal Student Aid (FAFSA) forms and sent to the school on the student’s ISIR (Institutional Student Information Record) . ED publishes an annual notice formally identifying the ISIR data that schools must verify, which typically includes items such as: the applicant’s household size, income, or high school completion information. ED will identify which documents are needed for each selected student. Failure to verify this information can result in students receiving Title IV funding ineligibly. The school must have processes in place to identify students selected for verification by ED as well as processes to identify conflicting information. The school must be able to maintain documentation that supports the verfied FAFSA data.

ECM can help you maintain a fully compliant Financial Aid Office that meets your needs. Contact us today for more information on our services.