Processing Direct Loans Through COD and Direct Loan Reconciliation. Wood Mason 770/

Transcription

1 Processing Direct Loans Through COD and Direct Loan Reconciliation Wood Mason 770/

2 Agenda Studentloans.gov Entrance counseling PLUS application Master Promissory Note (MPN) What is COD? A look at the website from a processing cycle perspective Direct Loan Reconciliation 2

3 3 What s New?- Studentloans.gov

4 Entrance counseling

5 Undergraduate or graduate?

6 Entrance Counseling- 4 steps

7 Complete PLUS application

8 PLUS application

9 Step 2 Student and Loan info

10 10 Step 4: the credit check

11 Master Promissory Note (MPN)

12 MPN: personal information

13 MPN: Personal references

14 MPN: Terms and conditions

15 MPN: Review and Sign We are friendly We are friendly

16 16 What is COD?

17 17 Cod.ed.gov

18 18 Looking for More Information?

19 19 COD Home Page

20 Direct Loan Processing Cycle Originate MPN Ent Cslg Reconciliation Disburse 20

21 Direct Loan Processing Cycle Direct Loan Origination School determines eligibility School calculates award Amount and type School originates the award Origination is a dated event Financial Award ID CPS transaction number Anticipated/Actual disbursements must equal loan amount 21

22 Direct Loan Processing Cycle Direct Loan Origination School transmits Loan Origination Record (LOR) to COD Online Via Common Record Entity IDs COD sends a receipt COD edits the LOR and sends a response Hard reject Warning reject 22

23 What You Need To Know PLUS loans 23

24 Direct Loan Processing Cycle PLUS loan requires credit check D/L credit check looks for adverse credit NOT credit worthiness Absence of credit is not evidence of adverse credit Stands for 90 days on COD website Denial linked to academic year submitted Approval linked to submitted loan 24

25 Direct Loan Processing Cycle PLUS loan requires credit check School LOR/COD website Need borrower authorization StudentLoans.gov PLUS request process for both Parent and Grad student PLUS LOR can be accepted with Adverse credit decision 25

26 The Direct Loan Award ID 21 characters Award year Trailing (1011) Sequence # of loan at this school for this borrower during award year S11G Social Security Number Loan Type Sub, Unsub, Plus Direct Loan School code

27 27 Person Menu

28 Person Information Barbara Davis Xxxxx /01/ Happy Lane Mountain View, GA (202)

29 29 Direct Loan Information

30 30 Award Detail

31 31 Search For Promissory Notes

32 32 Promissory Note

33 Credit Check Decision

34 34

35 35 Counseling Search

36 36 Date range counseling results

37 Davis, Barb xxx-xx-xxxx 1/1/1990 Davis, Barb xxxxxxxxxp11gxxxxx

38 Person Information Davis, Barb xxx-xx-xxxx 1/1/1990 Davis, Barb xxxxxxxxxp11gxxxxx

39 39 Date Range Search Result

40 40 PLUS Application Search

41 41 Plus app date range search

42 Direct Loan Processing Cycle Originate Reconciliation Disburse 42

43 What You Need To Know Pending vs. Actual Disbursement Pending disbursement and date is anticipated future disbursement and date Part of LOR No impact on funding Disbursement Release Indicator = FALSE No need to change until ready to disburse 43

44 What You Need To Know Pending vs. Actual Disbursement Actual disbursement drives funding Origination fee and upfront instant rebate assessed on actual disbursement Disbursement release indicator = TRUE* Report to COD via CR Disbursement #1 Sequence #1 *Software dependent 44

45 45 Award Detail

46 46

47 47

48 Batch Searches Up to 60 day date range Enter SSN and choose specific award year or select all award years for complete history 48

49 49 Batch Search- Date Range Results

50 Batch Search: SSN Results 50 24

51 51 Record Reject

52 52 View Response

53 30 Day Warning Report

54 54 Pending Disbursement Listing

55 55 Reports

56 Direct Loan Processing Cycle Originate Reconciliation Exit Cslg Disburse 56

57 What You Need To Know Exit counseling required when no longer attending or drop below halftime Doesn t have to be ED website/materials MUST be appropriate to loan type/program SCHOOL determines if counseling is valid or not NSLDS NewsLetter #26 57

58 58 What You Need To Know

59 Direct Loan Processing Cycle Originate Reconciliation Disburse 59

60 Direct Loan Reconciliation The process by which the Direct Loan Cash Balance recorded on the Department of Education system is reviewed and compared with a school s internal records on a monthly basis Identify and resolve discrepancies Document reasons for their Ending Cash Balance 60

61 Program Year Closeout (PYCO)* The process by which schools complete final processing at the end of a Direct Loan program year $0 Ending Cash Balance $0 unsubstantiated cash $0 Unbooked disbursements * PYCO date July 31 st of the year following end of the award year 61

62 Reconciliation 3 Key Players Financial Aid Office Business Office G 5 COD 62

63 Tools and Resources School Account Statement COD Web site DL Tools Student Files Financial Aid Office Reports Business Office Reports 63

64 Tools and Resources COD School Relations Center Customer Service Representative Issue Resolution Specialists COD web screens Summary Financial Information Cash Activity 64

65 Tools and Resources COD School Relations Center Weekly monitoring s Unsubstantiated cash 30-day reporting monitoring COD Reconciliation Team Dedicated reconciliation specialists Problem solving G5 assistance 65

66 School Account Statement Generated on 1 st weekend of the month Contains data through end of previous month Separate School Account Statement for each open award year Different report format options 66

67 School Account Statement Five Primary SAS Components Cash Summary Disbursement Summary by Loan Type Cash Detail Loan Detail - Loan Level Loan Detail Disbursement Level 67

68 School Monitoring 68

69 School Monitoring 69

70 School Monitoring 70

71 71 School Summary Information

72 72 Cash Activity

73 73 School Summary Financial

74 Program Year Closeout July 31 of the year following the award year COD website-balance confirmation screen No unsubstantiated cash No unbooked disbursements No reporting of disbursements, no draws of cash, no reports Reopening the year if necessary 74

75 75 Balance Confirmation

76 COD Customer Service Support Direct Loan # codsupport@acs-inc.com Team of dedicated reconciliation specialists in addition to your regular CSR 76

77 More about COD? COD Computer Based Training Available to download from IFAP COD Technical Reference Vol 1- Cod Overview Vol 2- Implementation Guide and Edit code rejects Vol 6 Reports and Print Specifications (manifest) 77

78 78 Contact Information