Raymond Nault Higher Education Assistance Group

Transcription

1 Raymond Nault Higher Education Assistance Group

2 Information about Direct Loans Items to consider Reconciliation Questions???

3 One entity for all federal loan processing COD DL reporting like PELL/ACG/SMART Loan processing is controlled by FAO, not the guarantor/lender Return of loan funds accomplished through h COD reporting process, similar as grants

4 Ineligible funds for one student maybe used to pay another student (netting is allowed) One MPN for the student, even if enrolled in different DL schools over the years Requires monthly and year end reconciliation

5 Financial Aid Controls the flow of information to both the student and lender School chooses when to disburse loans Require acknowledgement of PN? Of Originations? No need to send hold and release request to guarantor/lender

6 No need to import EFT roster Minimal involvement for Bursar/Business Office Response files from COD are received in a matter of hours

7 Completing the Process could take from several weeks to a few months Submit the Electronic Application to Participate to be approved Send request to COD to actively participate and receive final approval Complete or update SAIG mailbox enrollment

8 Set School up to receive DL Funds via G5 Contact COD Schools Relations to: Update DL contact information Sign up to receive DL Bulletins Select DL Report Options (through COD) Establish Promissory Note Process Request Entrance/Exit Counseling Files

9 Can your school-based software (SBS) handle DL process? Banner, Powerfaids, Regents, Datatel, EdExpress Training Needs Financial Aid Staff Student Accounts/Business Office Finance Reconciliation Use DL Tools or other tools to Reconcile

10 Implementation and Process School Initiated versus Borrower Initiated PLUS Loan Process Obtain credit check authorization and amount requested Will the school use the electronic MPN? Will acknowledgement of MPN be required for disbursement? Will acknowledgement of origination record be required for disbursement?

11 How often to receive Entrance/Exit Counseling files? How to communicate with students on changes Remember! All new DL borrowers must complete a new MPN. Some schools also require a new Entrance Counseling confirmation from each student, although this is optional

12 GAO Report

13 Reconciling our Direct Loans is no more difficult than reconciling our Pell program. Since all records are within our system, we can track disbursements and cash at any time. By monitoring activity frequently, reconciling records monthly has been simple. Tony Erwin, Northeastern University i

14 What constitutes Reconciliation? Ending Cash Balance of $0 Schools cash drawdown should equal booked disbursements, less cash returned In not equal, school must be able to identify and justify the differences This should be done regularly on a monthly basis to avoid issues at the end of year.

15 NOTE: The Direct Loan Tools for Windows Software is available via the FSA download website. Instructions for installing, using and support of the software is available there. This software is not supported by your SBS provider.

16 Comparison Files for Schools Not Using EdXpress Cash File Provides data about cash summary Loan File Provides a summary of loan disbursements Disb File - Provides data related to individual disbursement transactions by student

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18 Reconciliation Tips Timing Issues possible to not be in balance at any given time due to the timing of drawdown, submissions of disbursement records and adjustments Key is to identify reconciling records Closeout Letter Compare G5 Cash Balance to COD Booked Disbursements Received from the Dept of Ed once fiscal year is complete Successful Closeout declared if equal

19 Training National Direct Student Loan Coalition Publications and informing families

20 To Update SAIG mailbox enrollment To setup school to receive funds via G5 For full directions on becoming a DL participant ml For COD Computer Based Training

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