Loan Refresher Training Agenda

Transcription

1 Loan Refresher Training Agenda - Direct Loan process beginning to end - Loan Counseling o Checklist status o How to determine if we have received the record - Loan Originations o Origination Status o What does the origination status mean - Master Promissory Note o MPN Status o What does the MPN status mean - PLUS Info Sheet o Summary chart - PLUS Loan process beginning to end - PLUS credit decisions o Credit decision status o What does the decision mean - Graduate PLUS Loan process beginning to end - Private Loans o Overview o Process beginning to end o Reminders - B-On-Time Loans o Process beginning to end o Priority reminder - College Access Loans o Process o General info reminder

2 Direct Loan Process Chart Student is offered loans through Mass Packaging FDLEyy/FDLCyy sets to Initiated Student accepts loans on myunt Loans are transmitted to COD business days after acceptance FDLS (Student MPN) checklist sets to Initiated business days after acceptance Accepted loan origination received from COD - Timeframe varies - See Loan Origination Status chart for more info Student MPN is available at - once acceptance is received - See Loan Origination Status chart for more info Funds can be disbursed once FDLEyy/FDLCyy and FDLS are completed and enrollment is HT

3 Loan Counseling Loan Counseling Checklist FDLEyy: Direct Loan Entrance Counseling (First-time borrowers) FDLCyy: Loan Management Counseling (Continuing borrowers) Checklist Status: Initiated or Cancelled Checklist Status: Initiated Go to: UNTS Financial Aid > Loans > NTFA Process Loans > Use > NTFA DL Entrance Counseling; Search by ID and/or SSN Go to: UNTS Financial Aid > Loans > NTFA Process Loans > Use > NTFA MYF Display; Search by ID and/or SSN DL Entrance Counseling Response Records found No DL Entrance Counseling Response Records found MYF records found for Aid Year yyyy No MYF records found for Aid Year yyyy FDLEyy can be moved from Initiated/Cancelled to Completed - Do NOT set a new checklist. Entrance Counseling has not been received at UNT or student has not completed it - see Notes ** below FDLCyy can be moved from Initiated to Completed - Do NOT set a new checklist. Management Counseling has not been received at UNT or student has not completed it - see Notes ** below Important Notes: - ** If student entered SSN incorrectly at studentloans.gov or Mapping Your Future, then data will not load into EIS. Student must complete the process again.** - If a checklist was set manually by staff, checklist will NOT update automatically. If a checklist is set to Cancelled, the checklist will NOT update automatically to Completed.

4 Loan Origination Status Chart To check loan origination status, go to: Financial Aid > Loans > Direct Lending Management > View Loan Processing Actions Loan Orig Trans Stat: Trans Loan Orig Trans Stat: Accepted Loan Orig Trans Stat: Orig Pending or Change Pending Loan Orig Trans Stat: Error Loan has been transmitted to COD, MPN checklist will set outstanding but it is not available yet. Accepted origination received. MPN is available for completion. Loan Process Status: Hold - Description: Rejected Orig - Hold reason listed in Msg MPN not available Loan Process Status: Orig Pending - Description: Failed - Pending reason listed in Msg MPN not available Loan Process Status: Hold - Action Status: Rejected - Error reason listed in Msg MPN not available Loan Orig Trans Stat: Indicates the current status of the loan origination. The possible values are: - Accepted: Indicates COD has accepted the loan. - Change Pending Transmission: Indicates an adjustment generated a CT that has not been sent to COD. Any further changes entered alter the change record until the transmission occurs. - Error: Represents an acknowledgement from COD indicating a rejection of an origination or origination change record. - Origination Pending Transmission: Indicates an Origination that was not transmitted to the COD. - Transmitted: Indicates that an acknowledgement from COD is due regarding an origination or an origination change record. The system suspends all loan change activity until the acknowledgement arrives.

5 Master Promissory Note (MPN) Status MPN Checklist Status: Initiated Go to: Financial Aid > Loans > Direct Lending Management > Manage Direct Loan Application, tab: Application Misc Data Loan Orig Ack Pnote Status: Accepted Loan Orig Ack Pnote Status: Print Loan Orig Ack Pnote Status: Ack Pending MPN checklist can be completed MPN has not been received at UNT or has not been completed by student MPN has not been received at UNT or has not been completed by student See Loan Origination Process to verify if MPN is available for completion See Loan Origination Process to verify if MPN is available for completion Loan Orig Ack Pnote Status: Accepted Loan Orig Ack Pnote Status: Print Loan Orig Ack Pnote Status: Ack Pending

6 PLUS Info Sheet Summary Chart Parent cannot accept online See PLUS Info Sheet Procedures - Section I, pages 1-5 Parent data exists Include History No parent data exists Verify data online is for the parent who wants to be the borrower Add a New Value --> complete all *required* fields except Process Info box --> Save If a different parent would like to be the borrower, follow process under Change parent borrowers If current data is for parent borrower, does it need to be updated? Notify Loan Area - include why Info Sheet was submitted in message Info is correct - Notify Loan Area - include why Info Sheet was submitted in message Info is wrong - See Address/ /Phone Number Update or DOB/SSN/Name Discrepancy processes PLUS Info Sheet Update Needed *Always Include History* * Always Notify Loan Area* Change parent borrowers See PLUS Info Sheet Procedures - Section I, pages 1-5 Parent data exists Include History No parent data exists Add a New Row --> complete all *required* fields except Process Info box --> Save See process under Parent cannot accept online - No parent data exists Notify Loan Area - include why Info Sheet was submitted in message Address/ /Phone Number Update See PLUS Info Sheet Procedures - Section II, pages 5-6 DOB/SSN/Name Discrepancy See PLUS Info Sheet Procedures - Section III, pages 6-7 Verify data online is for the parent who wants to be the borrower Parent data exists Do NOT make any changes - Documentation required. No parent data exists Documentation required. If current data is for parent borrower, Correct History --> Update information --> Save If a different parent would like to be the borrower, follow process under Change parent borrowers Add a New Value --> complete all *required* fields except Process Info box --> Save Notify Loan Area - include why Info Sheet was submitted in message If a different parent would like to be the borrower, follow process under Change parent borrowers Notify Loan Area - include why Info Sheet was submitted in message

7 PLUS Loan Process PLUS estimate offered manually or in Mass Packaging. PLUS estimate accepted on myunt - PLUS Info Sheet completed by student/parent PLUS Application checklist set on To Do List - PLUS Application sent to parent on Info Sheet PLUS Application received at UNT PLUS Application processed - PLUS loan moved from estimated item type to actual item type PLUS loan is tranmitted to COD - PLUS MPN checklist sets on Fridays - See Loan Origination Status Chart to determine if MPN is available Credit check run by DOE Credit decision received in 1-3 business days Credit decision determines final action - See PLUS Credit Decision chart for additional information

8 PLUS Credit Decisions Credit approved, without special considerations PLUS MPN required - previously completed MPNs may link to loan (valid for 10 year) PLUS MPN required Credit approved C - C O New Info - Parent submitted appeal with additional info to DOE - Loan now approved - previously completed MPNs may link to loan (valid for 10 year) Once credit override received, additional unsub funds will be cancelled and PLUS loan reoffered. PLUS Credit Decisions - Go to: Financial Aid > Loans > Direct Lending Management > Manage Direct Loan Application, tab: Application Misc Data Credit denied Credit pending Credit approved, with special considerations(credit override) Student will be awarded additional unsubsidized funds within 7 business days of receiving credit denial. Credit decision not received - Go to Financial Aid > Loans > Direct Lending Management > View Loan Processing Actions E - C O Endorser OK - Endorser applied and was approved by DOE as a cosigner for PLUS Pending reasons - Origination in Trans sstatus - Origination has failed - Origination on Hold PLUS MPN required - previous MPN will not link - once received, new MPN status will show as Inactive (to protect endorser) Once credit override received, additional unsub funds will be cancelled and PLUS loan reoffered.

9 Graduate PLUS Loan Process Student awarded to grade level max/lifetime max in Stafford loans - Student can request Grad PLUS Staff sends Grad PLUS loan request to Loan Area - include term(s), requested amount, and address Grad PLUS estimate offered manually to COA/requested amount - Grad PLUS Application, MPN, and Entrance Counseling checklists set manually Grad PLUS application ed to student Grad PLUS estimate accepted on myunt by student. Grad PLUS Application received and processed - Grad PLUS loan moved from estimated item type to actual item type Grad PLUS loan is tranmitted to COD - See Loan Origination Status Chart to determine if MPN is available Credit check run by DOE - Credit decision received in 1-3 business days Credit decision determines final action - See PLUS Credit Decision chart for additional information

10 Private Loan Overview FAFSA on file? YES NO FAN Assigned? FALMD checklist 1 YES Awarded to COA? NO Missing documents? YES NO YES NO FALCOA checklist 2 FALR checklist 3 FALMD checklist 1 FALSAP checklist 4 FALR checklist 3 FALMD checklist 1 : Missing documents. If no FAFSA on file, explain advantages of federal aid over private loans, possibility for grants/work-study (EFC contingent). Even if student s parent doesn t want to give info for FAFSA, student can still receive an unsubsidized loan. If other documents are missing, have the student turn in documents in order to be evaluated for federal aid first. FALCOA checklist 2 : Student has been awarded to COA through federal aid/scholarships. Student can either accept federal aid or decline all/part of aid to make room in COA to certify private loan. Be sure to explain the advantages of federal loans over private loans. FALR checklist 3 : Application Received. Allow normal time for processing. FALSAP checklist 4 : Some private loan lenders require SAP. Students not meeting SAP may check with their lender for other loan options or look into other lenders who do not require SAP. ** No checklist? Application has either not been received yet or was recently received and has not been reviewed yet. Check Imaging to see if application is received. If not in Imaging, but student says they were approved for private loan more than 3-5 days ago, please refer student to their lender for status check.** Private loan Requests and Inquiries: submit Private Loan Information Request form online. Private loan s sent to Loan Area will not be worked. Self-Certification Forms: student can find EFC/COA at: myunt > Student Center/Register > View Financial Aid > 20yy > Financial Aid Summary. Reminder: Funds will not be sent to UNT until all of the following have occured: 1) student has completed lender s MPN, self-certification form, terms & conditions, etc., 2) student has accepted their Loan Approval and Disclosure with their lender, 3) lender has sent the final disclosure to the student, and 4) the right-tocancel waiting period has expired.

11 Private Loan Reminders UNT receives Private loan application from lender (through ELM) Loan application is put into Imaging. Application is reviewed to determine if student is eligible - Checklists are populated accordingly. - See Private Loan Overview Loan is certified by UNT if student is eligible. - Student must accept loan before certification will be sent to lender. Once lender receives UNT certification through ELM, student will be sent the Loan Approval and Disclosure terms 1-2 business days later. Student accepts these terms via their lender account or by returning letter in the mail. 1-2 business days after lender receives accepted Loan Approval and Disclosure terms, the Final Loan Disclosure terms will be sent. No action is needed business days after Final Loan Disclosure terms are sent, funds will be released to UNT. Once funds are received, they will be disbursed if student is meeting enrollment and has no outstanding checklists. Private Loan Quick Guide - 2 locations: S:\Reference Library\10-11\LOANS\Private Loans\Private loan quick guide S:\Reference Library\11-12\LOANS\Private Loans\Private loan quick guide - The quick guide provides information on lender requirements such as enrollment, degree requirements, SAP, minimum hours and prior terms. - This guide is updated whenever we receive updated information from individual lenders. Recommending a lender - Under no circumstances should staff recommend a lender. For example, if a student asks what lender does not require SAP, you would be recommending a lender by telling the student that Citibank does not require SAP. The student needs to do their own research and make the private lender decision independent of UNT. - Advising students that CAL/BOT loans are available as a private loan option is recommending a lender. THECB is the lender of both loans. Have funds arrived? - Go to: Financial Aid > Loans > Commonline Management > Maintain CL Disbursements - If CL Disbursement Maintenance does not show that EFT Disbursement Received, then funds have not arrived at UNT. o Student should be referred to their lender with questions regarding when their funds will be sent to UNT

12 Private Loan Counseling required FALC12 - Private loan counseling must be completed before funds will disburse no exceptions. - During standard daily processing, we are allowed to keep EFT funds for 3 business days. Funds that cannot disburse by the 3rd day must be returned. If FALC12 checklist is outstanding, it may require us to return funds. - This requirement applies to Private, BOT, and CAL funds. Private Loan Student Inquiry Form aka Private Loan Info Request - This must be submitted for any student-specific private loan inquiry. o This includes requests for certification and submitting information to complete a student s file. o Cannot be submitted for BOT/CAL - Loan Area will no longer work requests sent via . They will be forwarded back to you with a request that you submit the Private Loan Form; to complete it may require you to contact the student again.

13 Texas B-On-Time (BOT) UNT determines student's BOT eligibility. If funding is available, student is awarded BOT. Student accepts BOT. BOT certification report is run once a week. - Only students who have accepted BOT, are enrolled FT, and have no outstanding checklists show up on this report. Once BOT is certified with THECB and completes the application, student will be sent the Loan Approval and Disclosure terms 1-2 business days later. Student accepts these terms via their hhloans.com account or by returning letter in the mail. 1-2 business days after THECB receives accepted Loan Approval and Disclosure terms, the Final Loan Disclosure terms will be sent. No action is needed business days after Final Loan Disclosure terms are sent, funds will be released to UNT. Important Note: students can check the status of their loan by logging into their hhloans.com account or calling Once funds are received, they will be disbursed if student is meeting enrollment and has no outstanding checklists. ELIGIBILITY REQUIREMENTS -- Applicants must: Have completed a FAFSA and be eligible to receive federal financial aid Be enrolled full time in an undergraduate degree or certificate program at an eligible institution and Be a Texas resident or be entitled to pay resident tuition rates as a dependent child of a member of the U.S. armed forces and 1) Have graduated in the academic year or later from a high school operated by the U.S. Department of Defense or from a public or private high school in Texas under the recommended high school program, or its equivalent or 2) Have earned an associate's degree from an eligible institution no earlier than May 1, 2005 ANNUAL LOAN AMOUNTS FOR year public and private institutions: $3,550/semester ($7,100/year) a 3% origination fee will be deducted from the loan proceeds. RENEWAL ELIGIBILITY To maintain eligibility for future disbursements, the student must: complete at least 75% of the semester credit hours attempted in the most recent academic year and have a cumulative GPA of at least a 2.5 on a 4.0 scale (or the equivalent) on all course work previously attempted at institutions of higher education. A student may not receive B-On-Time loans for more than 150 hours.

14 College Access Loan (CAL) Student applies for CAL at If THECB determines that the student is eligible, they will send UNT a request for certification. UNT awards CAL and certifies at THECB in the date order received. - student must be awarded federal aid at UNT first Once CAL is certified, student will be sent the Loan Approval and Disclosure terms 1-2 business days later. Student accepts these terms via their hhloans.com account or by returning letter in the mail. 1-2 business days after THECB receives accepted Loan Approval and Disclosure terms, the Final Loan Disclosure terms will be sent. No action is needed business days after Final Loan Disclosure terms are sent, funds will be released to UNT. Important Note: students can check the status of their loan by logging into their hhloans.com account or calling Once funds are received, they will be disbursed if student is meeting enrollment and has no outstanding checklists. Who can apply? Students must: Be a Texas resident; Be enrolled in: o a course of study leading to an associate's or higher degree at least half-time Meet the satisfactory academic progress requirements set by the institution; and Receive a favorable credit evaluation or provide a cosigner who has good credit standing and meets other requirements. How much can be awarded? Students may borrow up to the cost of attendance minus any other financial aid. Sub/unsub loan eligibility must be considered when determining award amount. The following fee will be deducted from each College Access Loan: A 3% origination fee if both the borrower and cosigner have a good credit standing, or A 5% origination fee if either the borrower or cosigner, but not both has a good credit standing. Interest Rate : A fixed annual rate of 5.25% : A fixed annual rate of 6.00%