Session 45 Direct Loans: How to Get Started and Get Going ! Gail McLean-Campbell Lisa DiCarlo

Session 45

Direct Loans:

How to Get Started and

Get Going !Gail McLean-Campbell

Lisa DiCarlo

2

Objectives

• Get Started:

– Application and Approval

– Setup

• Get Going:

– School Processing Options and Setup

– Operational Decisions

– Tools Available

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Get Started:

• Application and Approval

• Set-up

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Get Started: Application and Approval

• Certified eligible for Direct Loan?

– Eligibility and Certification Approval Report

(ECAR)

– “E-APP for Schools” Web site

www.eligcert.ed.gov

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• E-mail participation request to:

– [email protected]

– Include:

•School name, address,

and phone #

•Requestor’s name,

e-mail, and phone #

•Award Year •COD ID (8 digit #)

•DUNS # •OPE ID (8 digit #)

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• List of requested information can be found at:

– http://www.ed.gov/offices/OSFAP/

DirectLoan/index.html

• Professionals

– Becoming a Direct Loan Program Participant

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• Direct Loan Operations Review

– Review school records

– Approve or deny request

– Record results of review in PEPS

– E-mail Approval or Denial letter to the school

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• Approval letter

– Effective date

– Funding method

– Direct Loan Checklist

• Denial letter

– Reason for denial

– Actions required for reconsideration

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Get Started: Setup

• PEPS transmits school information to COD

• Direct Loan Operations assigns “Initial” CFL

• COD transmits school information and CFL to

Grant Administration and Payment System

(GAPS)

• GAPS creates school’s Direct Loan account

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Get Started: Setup

• Grant Administration and Payment System

(GAPS)

– Direct Loan”Banking” information

– GAPS Hotline: 1-888-336-8930

– Web site: www.e-grants.ed.gov

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Get Started: Setup

• Student Aid Internet Gateway (SAIG)

– Complete or revise SAIG Agreement

• SAIG assigns mailbox (TG#s)

– Arrange for testing of transmissions

– SAIG Customer Service: 1-800-330-5947

– Web site: www.fsawebenroll.ed.gov

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Get Started: Setup

• Approved Additional Locations

– May report origination records separately from

main campus

– Must be set up to process

• Send an email request to:

– [email protected]

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Get Started: Setup

• Approved Additional Locations

– To process separately

• Must have

– A unique Grantee DUNS

» Dun & Bradstreet – 1-800-333-0505

– A unique Direct Loan code (“E” code)

– Must follow same steps as main campus

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Get Going:

– School Processing Options and Setup

– Operational Decisions

– Tools Available

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Get Going: Processing Options and Setup

• Basic Responsibilities:

– Determine student eligibility for aid

– Report Originations, Disbursements, and

Master Promissory Notes (MPNs)

– Report changes to disbursements

– Reconcile loan and cash records

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ISIR


Funding Data and Payment Requests

Central Processing System (CPS)

FAFSA

SAR

COD

Originations, Disbursements & Paper MPNs

Responses

GAPS NSLDS

DLSS

e-MPN

Funding Request

Money

Loans and Disbursements

Loans and Disbursements

Enrollment Status

Electronic Entrance & Exit

Counseling

Repayment/

Servicing

Student data

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• What funding method?

– School-initiated drawdown = Advanced Funds

– System-initiated drawdown = Pushed Cash

• Receive response when submitting via web?

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• Master Promissory Note:

– Electronic of Paper?

– Who handles MPN process?

– How often signed?

– Accept or reject disbursements without MPN

on file?

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• Master Promissory Note:

– eMPN

• Stafford (Sub/Unsub)

• PLUS

• School options

• Obtaining access

• Web site: www.dlenote.ed.gov

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• Reports

– What format?

– Receive or not?

– Select via COD Web site

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Get Going: Operational Decisions

• To what extent do you plan to participate?

– Completely transition?

– Offer both Direct Loan and FFELP?

– If both, how?

– Students choose?

– Direct Loans for certain students only?

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• What options will best serve your students?

• What offices will be involved in the process?

– What will their roles be?

– Staffing levels sufficient to support operational

decisions?

• Who will conduct your reconciliation?

• Who will work your rejects/resolve processing issues?

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• How will you process records?

– Process yourself

• Software?

• Technical support?

• How will you back up your data?

• Production schedule?

– Third Party Servicer

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Get Going: Tools and Resources

• COD Web site: COD.ed.gov

– View records submitted to COD

– Submit new records

– View batches

– Correct rejected records

– Research issues

– Retrieve school reports

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• COD Web site

– Access DL Servicing Web site

– Computer based training (CBT)

– Access:• Security Administrator

– Request letter to:

» U.S. Department of EducationAttn: COD Web AccessCOD School Relations CenterP.O. Box 9003Niagara Falls, NY 14302

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• COD School Relations

– Attend session 19:

• A Day in the Life at the COD School Relations

Center

– Phone: 1-800-848-0978

– E-mail: [email protected]

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• DL Tools

– Cash Management Tools

– Reconciliation

– Rebuild

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• Direct Loan Servicing

– Session 41 - Late Stage Delinquency Assistance

– Entrance and Exit Counseling

– School Services: 1-888-877-7658

– Borrower Services: 1-800-848-0979

– Web site: www.dl.ed.gov

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Direct Loan Servicing

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• Direct Loan Consolidation

– School Services page

– Borrower Services page

– Phone: 1-800-557-7392

– Web site: www.loanconsolidation.ed.gov

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Direct Loan Consolidation

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• School Portal: fsa4schools.ed.gov

– Resources and training

– Publication ordering

– Access to student data

– Participation and Funding

– Much more

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School Portal

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• Borrower Publications

– Direct Loan Basics

– Entrance and Exit Counseling

– To order visit:

• www.fsapubs.org

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• School Publications

– COD Technical Reference

• Implementation Guide

– Direct Loan School Guide

– Blue Book

– Financial Aid Handbook

– NSLDS Enrollment Reporting Guide

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• Visit:

http://www.ed.gov/offices/OSFAP/DirectLoan/index.html

– School

– Borrower

• Sign up for:

– DL listserv

– DL Bulletin e-mail (through COD Customer Service)

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Direct Loan Web site

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Other Direct Loan SessionsSession 40 Hands On Tour of DL ToolsSession 41 Best Practices in Using DL LSDASession 42 DL Funding & Cash Management A-ZSession 43 Best Practices for Processing DL at Your SchoolSession 44 Direct Loans A – ZSession 46 What’s New in Direct Loans: Grad PLUS and

other HERA Related ChangesSession 47 Direct Loan Reconciliation and CloseoutSession 48 Direct Loan Reports & Reference Materials-Tools

of the TradeSession 49 How Direct Loan Servicing is Improving the

Financial Aid Experience for You and Your Students

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Contact Information

We can be reached at:

• Gail McLean-Campbell

– Phone: 202-377-3149


• Lisa DiCarlo

– Phone: 202-377-3129


Documents

Session 45 Direct Loans: How to Get Started and Get Going ! Gail McLean-Campbell Lisa DiCarlo