2020 1098-T TUITION STATEMENT FILING DEADLINES

The 1098-T, Tuition Statement form reports tuition expenses students paid for college tuition that might entitle them to an adjustment to income or a tax credit.

The deadline to provide students with 1098-T Forms is January 31, 2021

Schools and Colleges are required file Copy A with the IRS by March 1, 2021, (or March 31, 2021, if electronically filed).

ICYMI – The IRS announced that higher education institutions do not have to report emergency financial aid grants awarded to students under the CARES Act. College and university business officer’s have been spared and for good reason.

According to the IRS, it’s a matter of common sense because reporting these grants to the IRS on Forms 1098-T cause some students to get notices that they under reported their income. That would be bad and since the students wouldn’t have to pay taxes on this money as income any way you slice it, it would be downright confusing.

UPDATED FAQ ON CARES ACT HEERF

What is the deadline (project period or period of performance) for institutions to spend Higher Education Emergency Relief Fund (HEERF) funds received under the CARES Act?

 

All institutions were given 1 calendar year (365 days) from the date of award in their HEERF Grant Award Notification (GAN) to complete the performance of their HEERF grant.

 

Therefore, for example, if a grantee received a GAN on April 7, 2020, the one calendar year

period of performance for their HEERF grant would be through April 6, 2021.

Please note that after the end of the year-long period of performance, grantees have an

additional 90 calendar days to liquidate their obligations made during their year-long period

of performance as part of the grant closeout procedures (2 CFR § 200.343(b)).

 

The Department understands that some grantees, even given the emergency nature of the

HEERF grant, may be unable to obligate funds by this time. Consequently, no-cost

extensions (NCEs) of up to 12 months are available as provided for in 2 CFR §

200.308(d)(2). NCEs may not be exercised merely for the purpose of using unobligated

balances. Given the emergency nature of HEERF grants, the Department does not intend an

NCE to extend longer than 12 months. HEERF grantees are encouraged to discuss any need

for an NCE with their respective program officer well in advance of the end of their grant

period of performance.

 

For general information about grant management, grantee responsibilities, and grant

closeout, please consult our guide, Grantmaking at ED, available here.

UPDATED DEADLINES FOR FLEXIBILITIES RELATED TO CORONAVIRUS

Last week the New York Times reported that there are presently over 26,000 cases and at least 64 deaths on College and University campuses from COVID-19 since the start of the Fall Semester.

Sadly, COVID-19 continues its slow burn through our country and ED’s Office of Postsecondary Education released updated deadlines for previously announced flexibilities related to COVID-19.

 

Campus Based Matching Requirements – The institutional share (match) requirement associated with the Federal Work-Study (FWS) and Federal Supplemental Educational Opportunity Grant (FSEOG) programs for the 2019-2020 and 2020-2021 award years has been waived for public and private non-profit institutions.

 

Leave of Absence – Students on an approved title iv leave of absence may continue beyond the usual maximum 180-day timeframe and may now stay on a LOA until the end of the calendar year.

 

Return of Title IV Funds – Institutions are no longer required to return unearned Title IV funds for any student who withdrew last spring, summer or this fall because of COVID-19. ED caps the date of this flexibility at the later of December 31, 2020 or when the national emergency ends (if it ends later).

 

Academic Calendars – Prior guidance granting institutions flexibility to adjust their academic calendar have been extended to the end of the program’s academic year.

 

Reporting and Audit Requirements – Financial Statement and Compliance Audit Deadlines have been extended by six months from the date they would otherwise be due.

TEACH GRANT CLOSEOUT INFORMATION FOR 2019-2020 AWARD YEAR

The TEACH Grant Closeout Deadline for the 2019-2020 award year is Wednesday September 30, 2020. As with all other federal aid programs, schools participating in the Teach Grant program must submit all school data to COD by the deadline. To be successfully closed out, schools should reconcile to a zero-ending cash balance between its monthly TEACH Grant School Account Statement and its internal records to avoid being billed for remaining balances owed to the Department of Education.

Schools participating in the TEACH Grant program can officially confirm closeout via the School Balance Confirmation page on the COD Web Site for the 2019-2020 Award Year. Once a school officially confirms closeout for TEACH Grant, the Department will take the following actions:

The Department will send a Program Year Closeout letter to the school’s President and Financial Aid Administrator. The letter will be sent via email. Note: Schools will also be able to view a copy of the letter on the “School Correspondence” page via the COD Web Site. If the school confirms closeout and does not receive a letter, please check to make sure the school’s contact information is correct on the “Financial Aid Contact” page via the COD Web Site and that the school’s system is not blocking emails from (DoNotReply@cod.ed.gov).

The COD System will reject award or disbursement changes per published edits.
The Department will reduce the school’s Current Funding Level (CFL) to the greater of Net Drawdowns or Net Accepted & Posted Disbursements.

The TEACH SAS will no longer be sent for the award year that is closed out.
Schools that complete this closeout confirmation process should save a copy of the Program Year Closeout letter with their final reconciliation documentation, to document the date the school officially confirmed closeout for the award year. No additional monthly reconciliation is required, unless the school is subsequently reopened, granted extended processing, or the school’s ending cash balance changes, in which case an additional TEACH SAS will be generated and sent to the school for final reconciliation.

2018-2019 DIRECT LOAN PROGRAM YEAR CLOSEOUT DEADLINE

 

The closeout deadline for the 2018-2019 Direct Loan Program Year is Friday, July 31, 2020. This is the last processing day before the end of the program year. According to a recent reminder from Federal Student Aid, all school data must be received and accepted by this date to be included in a school’s final Ending Cash Balance for the year.

There are several basic steps that a school must undertake to successfully close out their Direct Loan program at the end of each award year.

First, schools should be sure to reconcile to an Ending Cash Balance of $0 and Total Net Unbooked Disbursements of $0, as reflected on your monthly School Account Statement (SAS) Report and in your school’s internal records. Once everything is in harmony and you have no more disbursements or returns to process, complete the School Balance Confirmation form on the Common Origination and Disbursement (COD) Web Site.

The Balance Confirmation form can be completed after the school has reconciled to a $0 balance both internally and externally. Once the school has completed their final reconciliation, the school should log in to the COD Web Site. From the School options menu click on the Balance Confirmation link on the left-hand side of the page and follow the instructions on the School Balance Confirmation screen.

To meet the closeout deadline, all records must be submitted to the COD System no later than 8:00 p.m. Eastern time (ET) on Friday, July 31, 2020 . After this deadline, Direct Loan records will not be accepted by the COD System and schools will no longer have Direct Loan funds available to draw down for the 2018-2019 Award Year. In other words, the Department of Education (the Department) will reduce the school’s Current Funding Level (CFL) to the greater of Net Drawdowns or Net Accepted & Posted Disbursements.

For more information check out the electronic announcement from FSA.