Common Origination Disbursement System · •First disbursement on or after October 1, 2014 and before October 1, 2015Subsidized Usage Information screen A TEACH Grant reduction of

Common Origination

&

Disbursement System

Award Year 2014 - 2015

1

Wood Mason

U.S. Department of Education

Federal Student Aid

Atlanta, GA

770.383.9662

[email protected]

2

AGENDA

• New Award Year Setup (NAYS)

• Phase 2 - Direct Subsidized Loan 150% Limitation (SULA)

• Pell Grant Dispute Portal

• StudentLoans.gov

• Sequester Changes

• COD Release 13.1

• September Code Change

• Still to come…

3

New Award Year Setup

(NAYS)


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The NAYS implemented on April 14, 2014 included the

“normal” Award Year to Award Year changes

• Funding method remains Advance Funded

Direct Loan schools on heightened cash management, Pell Grant,

and TEACH Grant schools remain “records first”

• Award year designator changed to “15” as appropriate

System Generated responses

Master Promissory Note (MPN) ID

Loan ID

Agreement To Serve (ATS) ID

5

A couple of your processing options should be double-

checked…

• Report formats from award year 2013 – 2014 have been

“carried” over to award year 2014 – 2015

• Valid dates of participation in the PLUS Request process via

the StudentLoans.gov website have been incremented one

(1) year

• It’s a good idea to double-check ALL of your processing

options with each NAYS

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Phase 2

SULA Modifications


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Phase 2 of the 150% Direct Subsidized Loan Limit

(SULA) was implemented with COD Release 13.0 for

Award Year 2014 – 2015 on April 14, 2014…

• New SULA reporting

Real-Time processing

New system-generated response

• New Schema 4.0a

Full XML Common Record Schema validation

New tags - required data not reported before

New edits

8

Real-Time processing will include…

• Subsidized Usage Period (SUP) calculation

Will be returned per award via the Common Record Response

• Normal and routine Program and COD editing

The Subsidized Usage Limit Applies (SULA) tag will be returned at

the Person level for award year 2014 – 2015

Warning edit #200 will continue to be returned on 2013 – 2014

awards

The COD Reporting Website will continue to display the SULA data

on the View Person Information screen

9

SULA modifications will include a new system-generated

response

• Generated nightly after daily processing is completed

• Reflects changed SULA data for schools NOT initiating the

changed data

• Message Class CRSUXXOP

10

To accommodate the reporting of required SULA data,

ALL common record document submissions for the

2014 – 2015 award year must conform to Common

Record XML schema version 4.0a

• COD will enforce 100% schema validation on schema 4.0a,

3.0d, and 3.0e

• COD will “retire” schemas 2.0e, 3.0a, 3.0b, and 3.0c

• An electronic announcement (EA) dated October 29, 2013,

provides schema 4.0a details

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A new “temporary” Warning Edit #211 is triggered and

returned when a schema validation issue occurs

• On in-bound XML Common Record documents that do NOT

meet 100% schema validation but would have been

accepted under prior award year rules

Returned at the Document Level

No edit-specific notification from COD School Relations Center

• Warning Edit #211 will be discontinued at a yet-to-be-

determined date

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A new reject edit #210 will be triggered on any

malformed XML document

• Failed 100% schema validation

Missing value

Invalid value

• Returned at the batch level

<DocumentID> tag

Email from COD

13

New required “SULA” tags for award year 2014 – 2015

are transmitted to COD via XML Schema 4.0a

• Award Level

<PublishedPgmtLentghYears>

<PublishedPgmtLengthMonths>

<Published PgmtLengthWeeks>

<WeeksProgramAcademicYear>

<SpecialPrograms>

<ProgramCredentialLevel>

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New required “SULA” tags for award year 2014 – 2015

are transmitted to COD via XML Schema 4.0a

• Disbursement Level

<PaymentPeriodStartDate>

<ProgramCIPCode>

<EnrollmentStatus>

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The new <SpecialPrograms> tag will identify borrowers

in those programs Value Description

A Selective Admission Associate Program

B Bachelor’s Degree Completion Program

N Not applicable

P Preparatory Coursework Graduate Professional

Program

T Non-Credential Teacher Certification Program

U Preparatory Coursework Undergraduate Program 16

COD will validate the <SpecialPrograms> tag against

Grade Level on an incoming Loan Origination Record Special Programs Tag Value Valid Grade Levels

Sel Adm Assoc Prgm A TBD

Bach Deg

Completion Prgm B TBD

Not Applicable N No G/L Validation

Tag Not Submitted N/A No GL Validation

Prep Graduate Prgm P 5

Non Cred Tchr Cert T 5

Prep Undergraduate U 1 & 0 17

COD will validate the <ProgramCredentialLevel> tag

against Grade Level as well

Description Program

Credential Level

Student Level

Code Undergraduate certificate or diploma 01 0-5 (Undergraduate)

Associate’s degree 02 0-5 (Undergraduate)

Bachelor’s degree 03 0-5 (Undergraduate)

Post Baccalaureate certificate 04 0-5 (Undergraduate)

Master’s degree 05 0-7 (Graduate)

Doctoral degree 06 0-7 (Graduate)

First Professional degree 07 07 (Graduate)

Graduate/Professional certificate 08 0-7 (Graduate)

Non-credential programs

(preparatory coursework/teacher

certification)

99 0-5 (Undergraduate) 18

New award level edits

Edit Program Trigger

Reject 202 DL Cannot submit more than one tag for Published

Program Length (Years, Months or Weeks)

Reject 203 DL Incorrect Special Program submitted

Reject 206 DL Sub Remaining Subsidized Eligibility Period is less

than zero for this award

Warning

207

DL Sub Maintenance to this tag may have caused the

Remaining Subsidized Eligibility Period to drop

below zero for this award

Reject 208 DL Incorrect Student Level Code submitted

Reject 209 DL Invalid value submitted for Weeks Programs

Academic Year 19

New disbursement level edits

Edit Program Trigger

Reject

204

DL &

TEACH

Incorrect Program CIP Code submitted

Reject

205

DL Payment Period Start Date is outside

the Award Begin and End dates

Reject

207

DL Sub For HCM/Reimbursement schools,

sequence issues

Existing Edit 994 and Edit 996 will be

triggered if a value is missing or not valid

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Phase 2

COD Reporting Website

Enhancements Award Year 2014 - 2015

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Phase 2 of the 150% Direct Subsidized Loan Limit also

brought modifications to the COD website

• A new SULA report

• Updates to the COD Reporting Website to include, and

display, all of the new SULA data

• New SULA Request and SULA Information screens

22

COD implemented a new Direct Loan Subsidized Usage

Change Report

• Produced weekly and posted to the COD Reporting Website

on the School NewsBox

CSV format

You can “opt out” of receiving the report

• The currently produced Direct Subsidized Loan Usage Limit

School Report will be discontinued

23

COD has updated screens to display SULA data

• View Person Information screen

Re-designed

Displays the Subsidized Usage Limit Applies (SULA) Date

Disbursement on a qualifying Direct Loan award

Pop-up on Personal History events gives additional information

• Disbursement History Information screen will displays

additional SULA data

Enrollment Status

Program CIP Code

Payment Period Start Date

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COD implemented two (2) new website screens

• Subsidized Usage Information screen

Accessible via a hyperlink on the Person Direct Loan Information

screen

Complete SULA data for that student

• Subsidized Usage Request Disbursement History

Information screen will displays additional SULA data

Request the most recent SULA data via the system generated

response

Accessed via the Batch tab

Search by SSN or Entity ID

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Pell Grant Modifications


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Two (2) Pell Grant Program modifications were

implemented with COD NAYS for Award Year 2014 -

2015

• Expected Family Contribution (EFC) field length was

expanded from 5 to 6 bytes to conform to a CPS change

All COD Reporting Website screens that display the EFC

The Pell Grant Reconciliation Report

The Pell Grant Multiple Reporting Record (MRR)

The Pell Grant Year-To-Date File

The Pell Grant LifeTime Eligibility Used (LEU) Report

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COD has enhanced the Pell Grant LEU dispute process

with a new Pell Grant LEU Dispute Portal

• The Dispute Portal provides the ability to create, view,

update and even upload documentation for a Pell Grant

LEU dispute

• The Pell Grant LEU History page will display the Pell Grant

LEU dispute result

• Schools will no longer have an option to escalate a Pell

Grant LEU dispute to the COD School Relations Center

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The Pell LEU Dispute

portal allows schools to

enter dispute information

for Department of

Education review

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The new Create Pell

LEU Dispute screen

will collect information

about the current and

former schools,

reason for the dispute,

documentation,

comments, and much

more

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On the Create

Pell LEU

Dispute screen

you’ll upload

the required

dispute

documentation

directly to the

COD Reporting

Website 31

After a dispute has

been approved, the

student’s Pell

Grant LEU History

screen will provide

details of the

dispute and

adjustment

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StudentLoans.gov


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StudentLoans.gov modified the Direct PLUS Loan

endorser process

• An endorser will need to use the borrower provided Direct

PLUS Loan Endorser Code, or the Loan ID, AND the

borrower’s last name

The borrower receives the code via their Direct PLUS Request

confirmation email

or

From his or her completed Direct PLUS Loan Request on the

StudentLoans.gov website

Paper endorser process remains unchanged

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Sequester Changes


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Sequester changes required for TEACH Grant and the

Iraq-Afghanistan Service Grant from the award amount

for which the student would otherwise have been

eligible

• Future Sequester changes are expected on October 1

• First disbursement on or after October 1, 2014 and before

October 1, 2015Subsidized Usage Information screen

A TEACH Grant reduction of 7.3%

An Iraq-Afghanistan Service Grant requires a reduction of 7.3%

Maximum Federal Pell Grant award amount for the relevant award year

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The Direct Loan origination fee on loans with an earliest

disbursement date (EDD) on or after October 1, 2014

and before October 1, 2015

• Direct Subsidized/Unsubsidized Loan - 1.073%

• Direct PLUS Loan - 4.292%

• COD validates the EDD against the loan origination fee on

incoming Loan Origination Records (LORs)

LORs with an EDD on or after October 1, 2014 and before October

1, 2015, AND an incorrect origination fee, will reject with edit code

#140

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COD Release 13.1


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Implemented on June 29, 2014

• Updated Master Promissory Notes (MPNs), Endorser

Addendum Forms, and Plain-Language Disclosure

Statements

COD will accept the previous edition of the MPN (expiration date

7/31/2014) through December 31, 2014

• A new communications page for schools

File Share & Messages will allow schools to view and download COD

specific communications from the COD Reporting Website

Notification will be via email, but NO attachments to the email

• EA dated June 20, 2014

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COD Off-Cycle” Code Change September 14, 2014


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COD implemented an “off-cycle” code change on

September 14, 2014

• Modifications to COD Edit Code #050

Ignore an actual disbursement reduced to $0 to allow a change to a

loan period (financial award) start/end date to more than 10 days

before, or more than 180 days after, the disbursement date

Allows accurate reporting of loan periods

• COD updated the origination fee/net disbursement(s) on awards

(DRI = FALSE) with an invalid origination fee/EDD

COD sent a system-generated response to the school(s) with corrected data

41

COD implemented an “off-cycle” code change on

September 14, 2014 that included modifications to…

• COD updated the origination fee/net disbursement(s) on Direct Loan

awards with an incorrect origination fee for that award’s earliest

disbursement date (EDD)

ONLY awards with the DRI = FALSE

COD sent a system generated response informing the school of the

correction and new disbursement amount(s)

42

Sequester changes going forward…

• When the EDD on an incoming loan origination record (LOR)

is on or after an “established date,” and the disbursement

release indicator (DRI) = TRUE, the LOR will reject with a

new disbursement level Edit Code #213

The “established date” will be determined by FSA when changes to

origination fees are expected and the new fees are unknown.

LORs with an EDD on or after the established date and DRI = FALSE

will be accepted with origination fees effective for the prior period

Will help eliminate the need for schools to correct awards once the

new origination fee is known

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Sequester changes going forward…

• Once the new fees are established, the COD System will

correct the origination fee ONLY for awards with the DRI =

FALSE with an EDD on or after the established date

A new system-generated origination fee (OF) response will be sent to

your SAIG mailbox with the corrected information to include

New origination fee percent

New disbursement net amount

New disbursement fee amount

• Message Class CROFyyOP

Responses will be award year specific

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On the Horizon


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COD Release 13.2 is planned for implementation in mid-

December 2014 and tentatively includes…

• Enhanced self-service for schools

“Live Chat” on StudentLoans.gov

“How To” illustrated procedurals

Access to an enhanced Q&A

• Enhanced Parent PLUS Loan borrower identification

Aid in preventing “co-mingled” borrowers

• 3-Year Cohort Default Rate (CDR)

Low CDR disbursement benefits

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The Disbursement History screen has been enhanced

• “Response Date” column is now the “Applied Date at COD”

Date the disbursement is applied to the student account at COD

• An “Export to XLS” option and print-preview functionality will

be added

PII warning will be displayed when the export function is chosen

Will download an Excel file of the Disbursement History screen

If you choose to “Print” all the Disbursement History screen data will

download on one page

• 3-Year Cohort Default Rate (CDR)

Low CDR disbursement benefits 47

48

Recent Notice of Proposed Rule Making highlights

suggested changes to Direct PLUS Loan adverse credit

criteria

• Includes $2,085 maximum “past due“ in Charge-Off and

Collection accounts

• Credit check “window of validity” extended to 180 days

• Direct PLUS Loan Counseling requirement for Direct PLUS

Loan borrowers who successfully appeal adverse credit

history

• Federal Register published August 8, 2014 for details

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Resources…

• Electronic Announcements (EAs)

September 5, 2014 - End of Federal Fiscal Year 2014; Impact on

Funds Availability for G5 and COD System

September 5, 2014 - Pell Grant and Iraq and Afghanistan Service

Grant 2013-2014 Award Year Processing Deadline

September 5, 2014 - Additional TEACH Grant Closeout Information

for 2013-2014 Award Year

September 4, 2014 - Changes to Several D/L origination edits

August 22, 2014 - Workaround for COD Reject Edit 205 (Loan Period

Adjustments)

August 8, 2014 – NPRM on Direct PLUS Loans

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Resources…

• Dear Colleague Letters (DCL)

August 29, 2014 (GEN: 14-17) - NSLDS Program-Level

Enrollment Reporting

August 25, 2014 (GEN: 14-16) - Improved Administration

of the Servicemembers Civil Relief Act for Borrowers

Under the William D. Ford Direct Loan and Federal Family

Education Loan Programs

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Resources…

• COD School Relations Center

Direct Loan Program…1.800.848.0978

Grants…1.800.848.0979

Applicant Services…1.800.557.7394

NSLDS Help Desk…1.800.999.8219

CPS/SAIG/EdExpress/TFA…1.800.990.5947

G5…1.888.336.8930

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"Toes in the Water, KASFAA in the Sand"

Wood Mason Federal Student Aid

Atlanta, GA

[email protected]

770-383-9662

53

Documents

Common Origination Disbursement System · •First disbursement on or after October 1, 2014 and before October 1, 2015Subsidized Usage Information screen A TEACH Grant reduction of