Direct Lending 101

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• Direct Lending 101
• Jean McDonald Rash
• Eo Hunt
• Cory Bastek

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Participation

• Update your Program Participation Agreement (PPA)
• Schools moving to the DL program MUST change
  their PPA.
• Schools can escalate the change by notifying the
  Department of Education.
• If you already participate in Pell, your
  application is nearly done.
• WEBSITE www.eligcert.ed.gov

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To Change Participation Agreement

• Current Title IV participants
• Check if DL is already on your schools
  Eligibility and Certification Approval Report
  (ECAR)
• If not, go to E-APP website www.eligcert.ed.gov
• Add DL as a program in which you wish to
  participate
• Current Non-Title IV participants
• Submit Electronic Application for Program
  Participation
• (PPA)
• Receive Eligibility and Certification Approval
  Report (ECAR)

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Contact COD to Request Participation

• Once ECAR approved for DL, school must email COD.
• Send email to codsupport_at_acs-inc.com with the
  following name of institution, address (city,
  state zip), name, title, email, and phone
  number of individual requesting participation
  (Financial Aid Director or official on E-App
  preferred) , OPE ID, COD Entity ID, COD Routing
  ID (if known) and Award Year in which processing
  will begin.
• EMAIL codsupport_at_acs-inc.com

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Receive Confirmation from ED

• ED sends school approval for participation after
  request is reviewed.
• Wait for confirmation before proceeding to next
  steps.

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Update SAIG Enrollment to include DL

• Must have a current SAIG enrollment that includes
  DL in order to transmit and receive DL data.
• Check NSLDS button on SAIG enrollment form.
• WEBSITE www.fsawebenroll.ed.gov/PMEnroll/index.js
  p
• Phone [phone]

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Establish an EFT Account

• Set up your school to receive Direct Loan funds
  via the G5 system for grants management and
  payments. G5 replaced the Grant Administration
  and Payment System (GAPS).
• Must submit a new direct deposit form, Form
  SF1199A, (available at your bank), to receive
  Direct Loan funds even if same bank account used
  for other Title IV funds.
• If valid G5 username and password exists, no need
  to reapply.
• Website www.g5.gov Phone
  1.888.336.8930

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Option to Set Up Unique DUNS for branches

• If a branch campus does not have a unique DUNS
  established and the branch wants to originate
  separately from the main campus, call DB and
  provide the following
• School requestors name
• Phone number
• Email address (person must be listed on PPA)
• Phone [phone]

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Contact COD CSR

• Contact your schools primary COD Customer
  Service Representative to
• Update your DL contact information
• Sign up for DL Bulletins
• Select your DL report options
• Establish EMPN process
• Branch campus setup (if applicable)
• EMAIL CODSupport_at_acs-inc.com
• Phone [phone]

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Set Up EMPN Website

• Fax the following information printed on schools
  letterhead School name, School DL ID, Third
  Party Servicer (if applicable), name, phone
  number, email address, job title, address, phone
  number, fax number of individual making the
  request, a keyword for security purposes and
  name, title and signature of approving authority
  (FAA).
• Website https//dlenote.ed.gov/empn/index.jsp
• Fax [phone]

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Set Up Entrance/Exit Delinquency Reports

• From the COD website, go to Services/DL Loan
  Servicing/School Reports/Report
  Subscription/Entrance or Exit or Delinquency
• Follow steps for each
• Website www.cod.ed.gov

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Set Up Security Administrator

• To establish a security administrator for the COD
  website, submit a request by mail that includes
• School name, COD ID, Security Administrators
  name, keyword (for security purposes), work phone
  number, email, job title, work address, fax
  number and signature
• Also include approving authoritys name, title,
  work number, email and signature (must be
  different and higher ranking school official).
• Website www.ifap.ed.gov/cod/0318Schoolaccess.html

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Sign Up for DL Listserv

• Send email request to be added to the listserv.
• Include name, title, school, and complete email
  address.
• Website dlops_at_ed.gov

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Business Decisions

• How will your school process Direct Loans?
• EDExpress Free software provided by ED
• Vendor
• Custom Shop
• Third Party Servicer
• Combination of above

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Internal Decisions

• Determine General Ledger Accounts
• Determine drawdown option
• Advance Funded School requests funds to cover
  year based on disbursement history.
• Just In Time (Pushed Cash) Funds based on
  accepted disbursements are sent directly to
  school bank account.
• Identify person(s) responsible for drawdowns
• Establish method to determine amount of funds to
  drawdown and frequency
• Drawdown from G5

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DL Pell with a Prom Note

• If you process Pell, you can easily process DL
• Examine your Pell process
• Package Awards
• Disbursement
• Send originations and disbursements to COD
• Resolve origination and disbursement errors
• Reconciliation
• Add Prom Note
• Students sign online
• CRPN file transmitted to school
• Load into system
• MPN status on ISIR each year

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Process Decisions

• Determine how best to apply Pell process to DL
• Assign responsible person(s) for data exchange
  with COD, review error reports and reconcile for
  single or multi campuses
• Utilize COD reports and functionality
• 30 Day Warning Report
• Pending Disbursement List
• Monthly Statement of Accounts (SAS)
• Online reports and data

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Communication Plan

• External Constituents
• Dissemination of Information to Students
  and Parents
• Distribution and Collection of Promissory Notes
• Handling Increased Inquiries concerning new loan
  program
• From students and parents
• From local media

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Communication Plan

• Internal Constituents
• Central Administration
• Changes in cash flow
• Changes in accounting procedures
• Information Technology
• Planning for resources needed to make system
  changes
• Planning for timeline to implementation
• Student Accounting
• Changes in term billing procedures?
• Ability to credit loans through Financial Aid
  system?

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Helpful Websites

• Common Origination and Disbursement
  www.cod.ed.gov
• Direct Loan Servicing www.dl.ed.gov
• Direct Loan Consolidation www.loanconsolidation.e
  d.gov
• Direct Loan Software and Reference Material
  www.fsadownload.ed.gov
• National Direct Student Loan Coalition
• www.directstudentloancoalition.org

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Direct Loan Coalition Support
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Rutgers DL Support

• Phone [phone]
• Jean McDonald Rash, x605 jrash_at_rci.rutgers.edu
  
• Eo Hunt, x604 ehunt_at_rci.rutgers.edu
• Cory Bastek, x666 coryb_at_rci.rutgers.edu

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• Direct Lending 101
• Questions ???