Direct Loan Overview

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Direct Loan Overview

• ILASFAA More ChangeLess Cents

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Moving to DL
Get complete information on the setup actions
that you must complete prior to participating in
the Direct Loan Program _at_ http//www.ed.gov/
offices/OSFAP/DirectLoan/index.html

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Step One

• Get Federal approval to participate in the DL
  program
• Check your schools Eligibility and Certification
  Approval Report (ECAR) to see if DL is listed as
  an approved program. If it is not listed, you
  must add it by submitting a revised E-APP. Go to
  E-APP for Schools website (www.eligcert.ed.gov)
• Once your schools PPA (program participation
  agreement) is adjusted to include DL your are
  ready to move to step two

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Step Two

• Send an email to the COD School Relations Center
  _at_ CODSupport_at_acs-inc.com to request participation
  in the DL program. Include the following
  information in your email request
• Name of your school
• Address including city, state, and zip code
• Person requesting participation
• Email and phone number of the official
• COD ID (8 digit )
• OPE ID (8 digit )
• DUNS (if known)
• Award year in which processing will begin
• After reviewing your schools request, ED will
  send a final approval or denial letter via email

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Step Three

• Your school must decide how it will process
  Direct Loans Here are some options
• Use EDExpress, free software provided by ED. If
  you choose to use EDExpress software, you can
  download the most recent version of the software
  and related documentation. If you have
  additional questions about this process, contact
  Central Processing System (CPS) Technical Support
  at [phone]. ED also provides training
  support on this software that is available
  through the regions, on the Web, and at
  Department Conferences.
• Use Banner, PeopleSoft, or other mainframe
  vendors system for processing Direct Loans
• Develop your own Direct Loan software using the
  technical specifications found in the COD
  Technical Reference available on
  www.fsasdownload.ed.gov
• Use a Third Party Servicer

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Step Four

• Update your Student Aid Internet Gateway (SAIG)
  enrollment to include DL processing
• Contact the SAIG customer service staff at (800)
  330-5947 or visit their website at
  https//www.fsawebenroll.ed.gov/PMEnroll/index.jsp
  

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Step Five

• Set up your school to receive Direct Loan funds
  via the Departments Grant Administration and
  Payment System (GAPS)
• Your bank account information must be in GAPS.
  Please visit the GAPS website or call the GAPS
  Hotline at [phone] for instructions
• You must submit a new direct deposit form, Form
  SF1199A (available at your bank), to receive DL
  funds even if you will use the same bank account
  as your other Title IV funds
• If you already have a valid GAPS user ID and
  password, you do NOT need to request a separate
  one for Direct Loans

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Step Six

• Contact COD School Relations at [phone] or
  codsupport_at_acs-inc.com to reach your primary
  Customer Service Representative (CSR). He/she
  will assist you with the following
• Adding Direct Loan contact information
• Signing up to receive Direct Loan bulletins via
  e-mail
• Selecting your Direct Loan report options
• Establishing your promissory note process (paper
  or electronic)
• Establishing access to the COD website (Be sure
  to complete the COD Computer-Based Training (CBT)
  at http//www.ifap.ed.gov/eannouncements/1007CODUp
  datedCBTDoc.html

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Step Seven

• Sign up to receive Direct Loan listserv messages
• To join, send an email request to David Hebrank
  at david.hebrank_at_edl.gov on the Direct Loan
  Operations team. Include the following
  information in your email request
• Your name
• Your school
• Complete email address
• Request to be added to the listserv

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Direct Loan Processing

• Awarding
• Origination
• Disbursement
• Reconciliation

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Direct Loan Processing-Awarding

• The Institutions role in the awarding process
• Verify that student and parent meet eligibility
  criteria
• Provide students with rights and responsibility
  information

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Direct Loan Processing-Awarding

• The Students Role
• Accept and/or decline loan funds
• Sign Master Promissory Note
• Read borrowers rights and responsibility
  information
• Complete loan entrance counseling
• Repay loan funds that are received

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Direct Loan Processing-Origination

• The Institutions Role in the Origination
  process
• Transmit records to Common Origination and
  Disbursement (COD)
• Review acknowledgments for rejected records
• Fix and re-transmit rejected records
• Send paper promissory notes to COD (provided that
  the borrower does not have access to complete an
  online promissory note)

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Direct Loan Processing-Origination

• The Department of Educations role in the
  Origination process
• Receive, process and transmit batched loan data
  to institutions
• Link Master promissory notes to Origination
  records that are sent by the Institution
• Provide customer service to Institutions

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Direct Loan Processing-Disbursement

• The Institutions role in disbursing funds
• Disburse funds to students
• Send disbursement data to COD

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Direct Loan Processing-Disbursement

• The Department of Educations role in
  disbursement
• Receive and process batch data, as well as
  transmit batch data back to institutions

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Direct Loan Processing-Reconciliation

• The Institutions role in the reconciliation
  process
• Institutions must reconcile on a monthly basis
• Use the Direct Loan School Account Statement
  (DLSAS)
• Compare the schools disbursement data against
  DLSAS to resolve any issues

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Direct Loan Processing-Reconciliation

• The Department of Educations Role in the
  reconciliation process
• Provide monthly SAS reports to Institutions

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Year-End Closeout

• Institutions must complete yearly closeout and
  balance confirmations
• Total Net Drawdowns (minus) Total Net
  Disbursements must equal 0 Ending Cash Balance

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Factors to Consider

• The role systems will play in the process
• The time and amount of staff needed
• Reports to catch errors(i.e. system and staff)

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Useful Phone Numbers For Schools

• Direct Loan Servicing1-888-877-7658
• COD School Relations CenterDL 1-800-848-0978
• CPS/SAIG Technical Support1-800-330-5947
• G51-888-336-8930

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Useful Sites to Visit

• Information for Financial Aid Professionals
  (IFAP) www.ifap.ed.gov
• Federal Handbook,
• Volume 4, chapters 1-3
• Common Origination and Disbursement
  www.cod.ed.gov
• Direct Loan Servicing www.dl.ed.gov
• Direct Loan Consolidation www.loanconsolidation.e
  d.gov

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Other Useful Sites to Visit

• Direct Loan Software and Reference Material
  www.fsadownload.ed.gov
• Direct Loan Tools
• COD Technical References
• FAA Access on the Web www.fafsa.ed.gov/FOTWWebApp
  /faa/faa.jsp
• National Student Loan Data System (NSLDS)
  https//www.nsldsfap.ed.gov/secure/logon.asp
• Department of Education www.ed.gov

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QUESTIONS?????