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Processing Direct Loans Through COD and Direct Loan Reconciliation Wood Mason 770/383-9662 [email protected]

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Page 1: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Processing Direct Loans Through COD and Direct Loan

ReconciliationWood Mason

770/383-9662

[email protected]

Page 2: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

AgendaStudentloans.gov

Entrance counseling

PLUS application

Master Promissory Note (MPN)

What is COD?

A look at the website from a processing cycle perspective

Direct Loan Reconciliation

2

Page 3: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

What’s New?- Studentloans.gov

3

Page 4: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Entrance counseling

Page 5: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Undergraduate or graduate?

Page 6: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Entrance Counseling- 4 steps

Page 7: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Complete PLUS application

Page 8: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

PLUS application

Page 9: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Step 2 Student and Loan info

Page 10: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Step 4: the credit check

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Page 11: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Master Promissory Note (MPN)

Page 12: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

MPN: personal information

Page 13: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

MPN: Personal references

Page 14: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

MPN: Terms and conditions

Page 15: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

MPN: Review and Sign

We are friendly

202-821-3953

202-821-3953

22333

We are friendly

22333

202-821-3953

Page 16: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

16

What is COD?

Page 17: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

17

Cod.ed.gov

Page 18: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

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Looking for More Information?

Page 19: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

COD Home Page

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Page 20: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Originate

DisburseReconciliation

Direct Loan Processing Cycle

MPN

20

Ent Cslg

Page 21: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Direct Loan Processing Cycle

Direct Loan Origination

School determines eligibility

School calculates award Amount and type

School “originates” the award Origination is a dated event

Financial Award ID

CPS transaction number

Anticipated/Actual disbursements must equal loan amount

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Page 22: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Direct Loan Processing Cycle

Direct Loan Origination

School transmits Loan Origination Record (LOR) to COD Online

Via Common Record

Entity IDs

COD sends a receipt

COD edits the LOR and sends a response Hard reject

Warning reject

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Page 23: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

What You Need To Know

23

PLUS loans

Page 24: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Direct Loan Processing Cycle

PLUS loan requires credit check

D/L credit check looks for adverse credit NOT credit worthiness

Absence of credit is not evidence of adverse credit

Stands for 90 days on COD websiteDenial linked to academic year submitted

Approval linked to submitted loan

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Page 25: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Direct Loan Processing Cycle

PLUS loan requires credit check

School

LOR/COD website

Need borrower authorization

StudentLoans.govPLUS request process for both Parent and Grad

student

PLUS LOR can be accepted with Adverse credit decision

2525

Page 26: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

21 characters

123456789S11G99999001

The Direct Loan Award ID

Social

Security

Number

Direct Loan

School code

Loan Type

Sub,

Unsub,

Plus

Award yearTrailing (1011)

Sequence # of loan

at this school

for this borrower

during award year

Page 27: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Person Menu

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Page 28: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Person Information

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Barbara Davis

Xxxxx1234

01/01/1900

12 Happy Lane

Mountain View, GA 30000

[email protected]

(202) 821-3953

Page 29: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Direct Loan Information

29

Page 30: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Award Detail

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Page 31: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Search For Promissory Notes

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Page 32: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Promissory Note

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Page 33: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Credit Check Decision

Page 34: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

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Page 35: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Counseling Search

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Page 36: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Date range counseling results

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Page 37: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

37

Davis, Barb

xxx-xx-xxxx

1/1/1990

Davis, Barb

xxxxxxxxxP11Gxxxxx001

‘10-’11

Page 38: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Person Information

38

Davis, Barb

xxx-xx-xxxx

1/1/1990

Davis, Barb

xxxxxxxxxP11Gxxxxx001

‘10-’11

Page 39: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Date Range Search Result

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Page 40: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

PLUS Application Search

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Page 41: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Plus app date range search

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Page 42: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Originate

DisburseReconciliation

Direct Loan Processing Cycle

42

Page 43: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

What You Need To Know

Pending vs. Actual DisbursementPending disbursement and date is

“anticipated” future disbursement and datePart of LORNo impact on fundingDisbursement Release Indicator = FALSE

No need to change until ready to disburse

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Page 44: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

What You Need To Know

Pending vs. Actual DisbursementActual disbursement drives fundingOrigination fee and upfront instant rebate

assessed on actual disbursementDisbursement release indicator = TRUE*Report to COD via CRDisbursement #1 Sequence #1

*Software dependent

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Page 45: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Award Detail

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Page 46: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

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Page 47: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

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Page 48: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Batch Searches

48

Up to 60 daydate range

Enter SSN and choose specific award year or select all award years for complete history

Page 49: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Batch Search- Date Range Results

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Page 50: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Batch Search: SSN Results

5024

Page 51: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Record Reject

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Page 52: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

View Response

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Page 53: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

30 Day Warning Report

Page 54: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Pending Disbursement Listing

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Page 55: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Reports

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Page 56: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Originate

DisburseReconciliation

Direct Loan Processing Cycle

56

Exit

Cslg

Page 57: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

What You Need To Know

Exit counseling required when no longer attending or drop below half-timeDoesn’t have to be ED website/materials

MUST be appropriate to loan type/program

SCHOOL determines if counseling is valid or not

NSLDS NewsLetter #26

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Page 58: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

What You Need To Know

58

Page 59: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Originate

DisburseReconciliation

Direct Loan Processing Cycle

59

Page 60: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Direct Loan Reconciliation

The process by which the Direct Loan Cash Balance recorded on the Department of Education system is reviewed and compared with a school’s internal records on a monthly basis

Identify and resolve discrepancies

Document reasons for their Ending Cash Balance

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Page 61: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

The process by which schools complete final processing at the end of a Direct Loan program year

$0 Ending Cash Balance

$0 unsubstantiated cash

$0 Unbooked disbursements

* PYCO date July 31st of the year following end of the award year

Program Year Closeout (PYCO)*

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Page 62: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Reconciliation – 3 Key Players

Business

Office

Financial

Aid

Office

COD

G5

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Page 63: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Tools and Resources

School Account Statement

COD Web site

DL Tools

Student Files

Financial Aid Office Reports

Business Office Reports

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Page 64: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Tools and Resources

COD School Relations Center

Customer Service Representative

Issue Resolution Specialists

COD web screens

Summary Financial Information

Cash Activity

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Page 65: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Tools and Resources

COD School Relations Center

Weekly monitoring e-mails

Unsubstantiated cash

30-day reporting monitoring

COD Reconciliation Team

Dedicated reconciliation specialists

Problem solving

G5 assistance

65

Page 66: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

School Account Statement

Generated on 1st weekend of the month

Contains data through end of previous month

Separate School Account Statement for each open award year

Different report format options

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Page 67: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

School Account Statement

Five Primary SAS Components

Cash Summary

Disbursement Summary by Loan Type

Cash Detail

Loan Detail - Loan Level

Loan Detail – Disbursement Level

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Page 68: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

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School Monitoring Email

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Page 69: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

69

School Monitoring

69

Page 70: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

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School Monitoring

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Page 71: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

School Summary Information

71

Page 72: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Cash Activity

72

Page 73: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

School Summary Financial

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Page 74: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Program Year Closeout

74

July 31 of the year following the award year

COD website-balance confirmation screen

No unsubstantiated cash

No unbooked disbursements

No reporting of disbursements, no draws of cash, no reports

Reopening the year if necessary

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Page 75: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

Balance Confirmation

7575

Page 76: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

COD Customer Service Support

Direct Loan # 800-848-0978

[email protected]

Team of dedicated reconciliation specialists in addition to your regular CSR

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Page 77: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

More about COD?

COD Computer Based Training

Available to download from IFAP

COD Technical Reference

Vol 1- Cod Overview

Vol 2- Implementation Guide and Edit code rejects

Vol 6 – Reports and Print Specifications (manifest)

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Page 78: Processing Direct Loans Through COD and Direct Loan ... · PDF filePLUS loan requires credit check School LOR/COD website ... COD Reconciliation Team ... COD website-balance confirmation

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Contact Information