Processing Direct Loans Through COD and Direct Loan Reconciliation Wood Mason 770/383-9662 wood.mason@ed.gov
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 What s New?- Studentloans.gov
Entrance counseling
Undergraduate or graduate?
Entrance Counseling- 4 steps
Complete PLUS application
PLUS application
Step 2 Student and Loan info
10 Step 4: the credit check
Master Promissory Note (MPN)
MPN: personal information
MPN: Personal references
MPN: Terms and conditions
MPN: Review and Sign We are friendly 22333 202-821-3953 We are friendly 22333 202-821-3953 202-821-3953
16 What is COD?
17 Cod.ed.gov
18 Looking for More Information?
19 COD Home Page
Direct Loan Processing Cycle Originate MPN Ent Cslg Reconciliation Disburse 20
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
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
What You Need To Know PLUS loans 23
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
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
The Direct Loan Award ID 21 characters Award year Trailing (1011) Sequence # of loan at this school for this borrower during award year 123456789S11G99999001 Social Security Number Loan Type Sub, Unsub, Plus Direct Loan School code
27 Person Menu
Person Information Barbara Davis Xxxxx1234 01/01/1900 12 Happy Lane Mountain View, GA 30000 sendtome@gmail.com (202) 821-3953 28
29 Direct Loan Information
30 Award Detail
31 Search For Promissory Notes
32 Promissory Note
Credit Check Decision
34
35 Counseling Search
36 Date range counseling results
Davis, Barb xxx-xx-xxxx 1/1/1990 Davis, Barb xxxxxxxxxp11gxxxxx001 10-11 37
Person Information Davis, Barb xxx-xx-xxxx 1/1/1990 Davis, Barb xxxxxxxxxp11gxxxxx001 10-11 38
39 Date Range Search Result
40 PLUS Application Search
41 Plus app date range search
Direct Loan Processing Cycle Originate Reconciliation Disburse 42
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
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 Award Detail
46
47
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 Batch Search- Date Range Results
Batch Search: SSN Results 50 24
51 Record Reject
52 View Response
30 Day Warning Report
54 Pending Disbursement Listing
55 Reports
Direct Loan Processing Cycle Originate Reconciliation Exit Cslg Disburse 56
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 What You Need To Know
Direct Loan Processing Cycle Originate Reconciliation Disburse 59
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
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
Reconciliation 3 Key Players Financial Aid Office Business Office G 5 COD 62
Tools and Resources School Account Statement COD Web site DL Tools Student Files Financial Aid Office Reports Business Office Reports 63
Tools and Resources COD School Relations Center Customer Service Representative Issue Resolution Specialists COD web screens Summary Financial Information Cash Activity 64
Tools and Resources COD School Relations Center Weekly monitoring e-mails Unsubstantiated cash 30-day reporting monitoring COD Reconciliation Team Dedicated reconciliation specialists Problem solving G5 assistance 65
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
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
School Monitoring Email 68
School Monitoring 69
School Monitoring 70
71 School Summary Information
72 Cash Activity
73 School Summary Financial
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 Balance Confirmation
COD Customer Service Support Direct Loan # 800-848-0978 codsupport@acs-inc.com Team of dedicated reconciliation specialists in addition to your regular CSR 76
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 Contact Information