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									 10th Anniversary 1999 - 2009

Direct Loans and Banner

                     Dave Curran, Principal
Before we start….
 Please turn off cell phones or change to silent
 Please jot down questions and hold until end
  of section
  My Background
Philadelphia, PA Native and Resident
 BS, De Sales University , PA
 R.O.T.C/Commissioned at Lehigh University
 M.B.A, Oklahoma City University, OK

Former Director of Financial Aid
 University of Texas at San Antonio, TX

My Current and Former Financial Aid & Self-Service Implementations
 Georgetown University (FM/IM INAS, Undergraduate, Graduate, Law,
  Medical and International; School of Foreign Service Doha, Qatar)
 Brown University (FM/IM INAS, Undergraduate ,Graduate and Medical)
 Temple University (Undergraduate ,Graduate, Law and Medical)
 Villanova University (FM/IM INAS, Undergraduate ,Graduate)
Information for clients switching to Direct
Banner Set up
Banner Day-to-Day Processing
Question and Answer
Differences: Direct Loans vs. FFELP
 You will not be dealing with multiple lenders, guarantors,
  servicers, or disbursing agents
 COD DL reporting is similar to COD Grants reporting
 Loan processing is controlled by FAO, not the guarantor
 Return of loan funds is accomplished through COD
  reporting process, similar to grants
 Ineligible funds for one student may be used to pay
  another student instead of returning funds
 One MPN for the student, even if enrolled in different DL
  schools over the years
 Requires year end reconciliation
 Advantages of Direct Loans
Financial Aid Office controls the process
Schools chooses when to disburse loans
   Require  acknowledgement of PN? Of COD
No need to send hold and release request to
No need to import EFT roster
Minimal involvement for Bursar Office
Response files from COD are received in a
 matter of hours
  Becoming a Direct Loan
 Currently the completion of process could take up to six months
 Submit the Electronic Application for Participation to be approved
 Send e-mail request to actively participate and receive final
 Complete or update SAIG mailbox enrollment
 Set School up to receive DL funds via GAPS
 Contact COD school relations for assistance in:
     Updating DL contact information
     Sign up to receive DL Bulletins
     Select DL Report options
     Establish promissory note process
     Request Entrance Counseling files
Decisions to be made
 Will the school use the electronic MPN?
 Will acknowledgement of MPN be required for
 Will acknowledgement of origination record be required for
 How often to receive Entrance Counseling files?
 How to communicate with students on changes –
  Remember! All new DL borrowers must complete a new
     (Some schools also require a new Entrance Counseling
       from each student, although this is optional.)
To outline the set-up process for direct
Explain the day-to-day or operational
 procedures for direct loans
Part 1 – Setup
Direct Loan Setup

    SGHE   Publication ―COD Handbook‖
    Loan Processing chapter, in the Banner
     Financial Aid User Guide
    Banner Help > Online Help on that specific
    Annual Spring Banner Financial Aid
     Release contains updates for federal loan
     processing as well as COD processing
Direct Loan Setup

   Direct  Loan listserv
   National Direct Student Loan Coalition
   Direct Loan Reference Material available at
   Direct Loan Simulations and CBT‘s
Direct Loan Setup
AR Creates Detail Codes
        TSADETC – Detail Code Control Form
FA Creates Fund Codes & Characteristics
        RFRBASE – Fund Base Data Form
        RFRMGMT – Fund Management Form
Enter/View DL School Code
        RORCODI – COD Entity ID Rules
        ROAUSIO – US Specific Institutional Financial
         Aid Options
TSADETC (Detail Code Control Form)
       This form is
      owned by AR
      and is used to
        create the
       detail codes
         that are
     associated with
     FA funds on the
       Ask Student
       personnel to
      establish loan
        fund detail
         codes for
      Direct Loans.
                       Names as shown above will appear on billing statemen
RFRBASE (Fund Base Data Form)

Create Fund Codes & Characteristics.

Must create separate fund codes for each Direct Loan fund:
    -Direct Sub
    -Direct Unsub
    -Direct PLUS

Can have multiple Direct Loan fund codes for each loan type if desired.
RFRMGMT (Funds Management Form)

The Rebate Fee % and the Loan Fee % are Required. The Interest Rate is
Optional. You must - Select Direct Loan Indicator
  RORCODI (COD Entity ID Rules)

Enter School’s Reporting ID, Source ID, Federal ID and DL School Code
        - Indicate which record is your Institutional Default

The DL School Code will then display on ROAUSIO.
ROAUSIO (US Specific Institutional Options

                               Complete Loan Options
                               - Loan Type of Both (or Direct)
                               - Indicate Multi-Year Note
                               - Enter Entrance and Exit
Direct Loan Setup (cont.)
Setting the Initial Loan Status
    RTVLNST– Loan Status Validation Form
    RPRLOPT – Loan Options Form

Prom Note Disbursement dates
    RPRLPRD   – Loan Period Base Data Form
    RTVLNST (Loan Status Validation)
    Create Loan Statuses

Used for all loan                  memos.
processing, Direct,                                “Hold” codes
Electronic and Manual.                            stop processing
                                                   until removed.

      Note: Initial Loan Status should be Active as the status is
      only updated manually.
   RPRLOPT (Loan Options Form)

School determines if
      PN and/or
  Disbursement is
   required before
extracting origination   School determines if
                         Acknowledgement of
                           Origination and/or
                         Prom Note is required
                         before disbursement
   RPRLPRD (Loan Period Base Data)

                                        Create a
                                   schedule for each
                                 loan period on the 2nd
                                   page of this form
Direct Loan Setup (cont.)
Setting the Class Codes
   RPRCLSS   – Class Code Translation -
    Associate Class Code from RNANAxx to
    Class Code and Level in the Student
Review Delivered Federal Rules
   RPIFEDR   – Federal Rules Inquiry Form
Direct Loan Setup (cont.)
The COD records must contain the state and
 nation codes from these validation tables.
    RTVCDST – COD State Codes
    RTVCDNT – COD Nation Codes

If the institution uses other codes for
 states/nations, the crosswalk field can be
 updated to translate for COD
REREXxx process will translate the school‘s
 codes to the correct values needed for COD
 GJAPDFT for Loan Application
Define parameters for the Loan Origination
 Process RPRLORC
This is the same process you use to set up
 parameters for Electronic Loans for RPRELAP
Default parameters must exist for each user
 who has authority to create loan applications on-
 This enables the user to create the origination record by
 clicking on ‗Create Loan Applications’ in the options
 menu on the award form (RPAAWRD).
Set-Up Forms specific to FFELP
 RTVCINT – Certification Initials Validation Form - Establish
  certification initials for each staff that processes loans, if
 SPAIDEN – General Person Identification – create non
  person record for each lender, guarantor, and servicer
 RPRLNDR – Lender Base Data - Establish address
  information about a lender as well as to link the lender ID in
  SPAIDEN to the Guarantor or Insurer ID in SPAIDEN
 RPRLNDA – Lenders/Disbursing Agents Rules - Link a
  Lender ID with a Servicer ID to expedite transmission on
  hold/release records
Part 2 – Day to Day
Day-to-Day Processes

1. Award & Create Direct
   Loan: …Offer or         5. Disburse Direct Loan
   Accepted Allowed          & submit
                             Disbursement to COD
2. Submit Origination to
   COD                     6. Import Response from
3. Optional - Execute      7. Repeat 5 & 6 for all
   MPN                        Disbursements

4. Optional - Submit MPN   8. Reconcile Direct Loan
   to COD                    Funds
Booking a Loan
 A booked loan is the point at which an obligation has been
  established between the borrower and the Department of
  Education (DE) to repay a Direct Loan.

 There are 3 basic components that must be established
  before a loan is declared as booked by the DE

 If COD has received and accepted
       A loan origination record
       A completed and signed promissory note
       A disbursement record
Direct Loan Originations
Loan Origination Process Flow
              RPALORG                     REREXxx                   RPALORG
                                 Create Origination Records
                                                                 Updates Origination
   Updated by RPRLORC process       REREXxx_yyyyy.xml
   (Enter Parent Info on RPALORG
     for PLUS loans as needed)
                                      FTP CRDLxxIN                  REASTID
                                     file to local PC.           Creates Student
                                                                 Identifier Record
                                      Send file to COD
              RPRLORC                                               REICODD

         Create Loan Origination                                   Updated with
                                   Receive acknowledgement       batch information
                                         file crdlxxop
                                             FTP to                Updated by
              RPAAWRD                DATAHOME directory          RERIMxx process
             Award Loans                                            RPALORG
              to Eligible                 RERIMxx                   REASTID
               Students                                             REICODD
                                    Import origination              RPALDSB
                              Acknowledgement file into Banner
Origination Activity
Loan funds are first awarded on one of the
 award forms RPAAWRD or RPAAPMT
   Studentsmay accept loans on Web or you
    may enter acceptances manually or in batch
Origination Activity - Loan
Origination Process RPRLORC
 Loan records are created either on-line or in batch process

 May create Originations for Accepted or Offered Loans
       Schools that choose to send Direct Loan Promissory
        Notes with the student’s award letter can create
        Origination records while the fund is still in an offered

 Batch process can be run globally or with a population selection

 Prom notes may be created immediately after loan records are
  created (if institution is printing PN‘s)
Origination Activities
RPALORG - Federal Direct Loan Origination
        Major blocks
             Loan Information Summary block
             Promissory Note Summary block
             Loan Disbursement Summary block
             Disbursement Detail block
             Student Data block
             Parent Data block
Origination Activity – COD
Extract - REREXxx Process
 This process extracts loan originations to be sent to
 COD for all records in a ‗R‘eady or ‗N‘ot Ready
 status on the RPALORG form.

 Can be run globally or with population selection

 Can be run to extract all Direct Loan activity,
 changes only, or loans without changes

 Output
    CRDLxxIN

            File to PC to send to COD via
    Transfer
Origination Activities (cont.)
REICODD - COD Document Control Form

Document Control Form Information
   COD  Document ID
   Extract Date
   Receipt Date
   Receipt Status
   Response Date
   Response Status
Origination Activities (cont.)
REICODD – COD Document Control Form
Origination Activity – COD Import Process

COD returns file as crdlxxop

RERIMxx loads incoming file into Banner

Forms updated with this process
    RPALORG   - Federal Direct Loan Origination
    REICODD – COD Document Control
Direct Loan Promissory Notes
Promissory Note Activities

When running RPRLORC process to create the Direct Loan Origination
 Records you will complete parameters pertaining to Promissory

 School Prom Note Status (Required) - indicates whether the student
  is expected to complete a paper or an E-MPN promissory note.
      If COD is going to use the Electronic Prom Note – choose Q

       If COD is going to print a Prom Note – choose R

             If school is going to print the Prom Note – Choose R and
              follow the Promissory Note Printing procedures.

       REREXxx informs COD ―who‖ will handle the Prom Note
DL Day-to-Day Process in Banner
Student executes MPN online at DL website
School receives and uploads response file
  crpnxxop– review resulting report to identify
  students who have signed an e-MPN, but do
  not have an RPALORG record in Banner
DL Day-to-Day Process in Banner
R – Paper MPN
REREXxx – Parameter 05: Promissory Note
    0 = Schools prints from Banner
    R = COD prints, sends to school
    S = COD prints, sends to borrower
 DL (School Prints) Promissory
 Note Flow
Start          RPRPNPT
          Print Promissory Notes     Updates Prom Note
            and address labels            Record

            Mail Prom Notes
                to Student
        Student returns Prom Note

         Log receipt of Prom Note

                                       RPALORG                 RPAPROM
               RPRDLPM                 RPAPROM                 RPALORG
        Create Prom Note Manifest     Updates Prom            Updates Prom
                                       Note Record             Note Record
                                       Receive Prom Note
          Mail Manifest to COD                                   RERIMxx
          COD will send back an                                Load Prom Note
                                     CRPNxxOP on local PC
          Acknowledgement file                                Acknowledgement
                                    with EDConnect software
Promissory Note Activity

Users must still allow the student the option
 of signing a paper promissory note even if
 choosing Q - E-MPN
Promissory Note Activity
Paper promissory notes will print for all
 students whose prom note status on
 RPALORG is ―R‖eady to Print

Loans with a prom note status of ―Q‖ EMPN
 Ready will be excluded from printing.

If student opts to sign paper MPN, prom note
 status is manually changed to ―R‖
Promissory Note Activity
   rprpnpt.lis   Alpha listing of printed notes
   rprpnpt.li3   Used to print mailing labels
   rprpnpt.li4   Contains Sub and Unsub MPNs
   rprpnpt.li5   Contains PLUS MPNs
   rprpnpt.li6      Contains Grad PLUS MPNs
Promissory Note Activity
Once the student has returned the signed
promissory note, the signature can be noted
on the following forms:
   RPALORG - Direct Loan Origination
   RPAPROM – Promissory Note
   RRAAREQ – Applicant Requirements
   ROASMRY – Applicant Summary
Prom Note Activities (cont.)
Information housed on Promissory Note form
 RPAPROM and the Promissory Note block of
   Fund  Code & Description
   Term Code
   Direct Loan Sequence Number
   Direct Loan Status Indicator
   Satisfied Indicator & Date
   Effective Date
RPAPROM (Promissory Note Form)
Promissory Note Activity
This process produces the Promissory Note
 Manifest of signed notes not previously
Prom notes are batched in groups and
 mailed to the COD
   Users   can control the size of the batch
Promissory Note Activity
COD Import Process - RERIMxx
MPN/PLUS Prom Note Acknowledgement
 (CRPNxxOP) file will be received, transferred
 and imported to Banner through the COD
 Import Process RERIMxx
The following forms are updated:
   RPALORG  - Direct Loan Origination
   RPAPROM – Promissory Note
   REICODD - COD Document Control
Disclosure Statement Printing
Schools usually request on the COD Extract
 Process REREXxx that COD print the
 Disclosure Statements but if necessary a
 school can print them using the Disclosure
 Statement Print Process RPRDSPT in Banner
If a Direct Loan disbursement is not reported
 as at least Edit Only more than 5 days prior to
 the scheduled disbursement date, your school
 is required to provide the Disclosure
 Statement to the borrower. This includes
 PLUS Loans.
Direct Loan Disbursements
DL Disbursement Flow
              RPALORG                   REREXxx                  RPALORG
                               Create Disbursement Records
                                                               Updates Record
         Review Disbursement       REREXxx_yyyyy.xml
          Results (Optional)

                                     FTP CRDLxxIN               Updated with
        Updates Disbursement        file to local PC.         batch information
              Record                Send file to COD

Start          RPEDISB           Receive acknowledgement
                                  FTP CRDLxxOP file to
        Run Disbursement Process
                                   DATAHOME directory

                                        RERIMxx                  REICODD

                                Import disbursement           Updated by RERIMxx
                           Acknowledgement file into Banner         process
Disbursement Activity
RPEDISB process is run to disburse loan
 funds, as with any other disbursement task
The following forms are updated:
   RPALORG   - Direct Loan Origination
   RPAAWRD – Award Maintenance
   ROARMAN – Financial Aid Record
   RPAAPMT – Packaging Maintenance
Disbursement Activity
COD Extract Process REREXxx
  This process is run to extract disbursement
  information for transmission to the COD

  Creates the Output:
     CRDLxxIN
     Transfer File to PC to send to COD via EdConnect

  Can be run to extract all Direct Loan activity,
  changes only, or loans without changes

  Edit (Anticipated) Disbursements – automatically
  extracted (Regulatory requirement) prior to actual
Disbursement Activity
COD Import Process RERIMxx
Files are returned from COD via EDConnect
 and imported into Banner:
   CRDLxxOP

The following forms are updated:
   RPALORG  - Direct Loan Origination
   REICODD - COD Document Control
Direct Loan Changes
DL Change Activity

                  RPEDISB                  RPADLCR
             If making a change to   Updated by changes made on
            Disbursement, you must           RPALORG
           also run the disbursement
                     process             REREXxx                    RPADLCR
                                  Create Change Extract   Records that were extracted
                RORDATA              File CRDLxxIN        are now removed from form
                Lists types                                         REICODD
                Of Changes            FTP CRDLxxIN
                                     file to local PC.              Updated with
                                                                  batch information
   Start         RPALORG             Send file to COD
               Create Change
                 Information    Receive acknowledgement
                                 FTP CRDLxxOP file to
                                  DATAHOME directory

                                     Import origination
                                     acknowledgement              Updated with data from
                                      file into Banner            acknowledgement file
Direct Loan Change Process
 Update award on RPAAWRD
 Update RPALORG Direct Loan Origination form
 Run disbursement RPEDISB
 Extract change records with REREXxx COD Export
 Transmit file to COD
 Receive receipt/response files
 Transfer to datahome directory
 Import receipt/response files with RERIMxx COD
Change Activity

 Changes made on Direct Loan Origination form
 RPALORG automatically go to Direct Loan
 Correction Form RPADLCR where changes can be
 reviewed and deleted before extracting.

 Direct Loan changes are logged and acknowledged
 on Applicant Data Log Application form ROAALOG.
    Can see status updates
    Can use the Resend feature to send individual
     changes back for processing
    Changes are specifically geared to origination
RPADLCR (Corrections Form)
Making Changes to RPALORG in
Sent Status
When record is in ‗Sent‘ status changes can
 still be made to:
   grade level on page 1
   Promissory note status on page 2
   student demographic date on page 4

  These changes will be logged on RPADLCR
   but will not be extracted until the record is
   no longer in Sent status
Sample Changes

Change to Loan Amount before
 Origination is Sent
Loan Decrease after Disbursement
Loan Increase after Disbursement
   Note:  You can increase a current
   origination or create a new origination for
   the difference

  Refer to the SunGard COD Handbook for
   more information on Direct Loan Changes
Direct Loan Entrance/Exit
DL Entrance / Exit Activity

       RRAAREQ                      Receive Entrance &        Note: these files will continue
                                    Exit files from COD          to be received in a fixed
      Post Entrance / Exit Data       DECFENOP.dat            length format. Full Participant
  Entrance – either as a tracking     DLFFEXOP.dat             schools will continue to use
requirement via fund on RFRMGMT                                 the RPRDUxx process to
          or batch posting                                        upload these files into
                                     Transfer files from
   Exit – either batch posting or                                        Banner.
                                        local PC to
       by running RRREXIT
                                       Banner server
   Posts Exit Requirement to             RPRDUxx                 RPILECS
 RRAAREQ for students needing       Upload Entrance / Exit   Student Entrance / Exit
       an exit interview                   Activity            Record is updated

        RTVTREQ                                                Entrance / Exit
       RFRMGMT                                               Requirement Updated
     Create rules for                                           RPIBATC
    Loading Entrance &                                        Batch information
         Exit Data                                                Updated
Entrance/Exit Activity
Entrance/Exit requirements are posted on
     Entrance and Exit codes as assigned to students on
     Entrance can be posted via RFRMGMT when fund is
      awarded or Batch Posted
     Exit Records can be posted to a student‘s file via
      RRREXIT or batch posted

Students complete Entrance/Exit interviews
 on ED website
   Entrance counseling data is sent as DECFENOP file
   Exit counseling data is sent as DLFFEXOP file
  Note: Be sure to request these message classes
    (plain text) in order to load them into Banner.
Entrance/Exit Activity
 COD sends Entrance Counseling files on a regular

 Files are uploaded into Banner via the Direct Loan
 Flat-File Upload process RPRDUxx

 Incoming data populates the Loan Electronic
 Counseling Status form RPILECS
    Scrollbar allows user to access multiple

 RPILECS can be accessed from RPALORG form
RPILECS (Entrance Counseling Form)
What constitutes Reconciliation?
 Ending Cash Balance of -0-

 School‘s cash drawdowns should equal
 booked disbursements, less cash returned

If not equal, school should be able to identify
  and justify any differences
** This should be done regularly on a monthly
  basis to avoid issues at the end of the year.
DL Reconciliation Process

              COD sends School Account
   Start      Statement for prior month‘s

              Receive fixed
           length SAS files on
              local PC via
                                         Use Institutional
                                      procedures to reconcile
                                      SAS data with Business
           Transfer files from          Office records on a
              local PC to                 monthly basis.
             Banner server

             RPRDUxx                   RPACASH
             Upload files
             to Banner
School Account Statement Activity
 SAS – School Account Summary files are received via
 EDConnect and uploaded into Banner
 Banner supports only these message classes for SAS
Reconciliation Activities –
RPACASH - Cash Drawdown Form
Enables you to record the drawdown of cash from the
Department (ED) and record the return of excess cash to the
   •   This must be manually entered after each
       drawdown so the School Account Summary
       statement will load in accordingly.
RPACASH - Cash Drawdown
Manually Enter:
     Aid Year
            R – Receipt of Funds
            X – Return of Funds
     GAPS Control Number
     Check Number – if Return of Funds
Batch ID is populated by upload of
 dsasxxop.dat file
 RPIDLAS - Account Summary
 from the
DL Reconciliation Process in Banner
Compare FA totals in Banner to COD Totals –
 identify differences

RERCDxx – COD Print Process
   Report of detailed data for originations and/or
    disbursements by Document ID
   Report of unsent origination records
DL Reconciliation Process in Banner
Compare FA totals to Finance Totals – identify
 Forms
      ROAMGMT – Funds Management
      RFIBUDG – Fund Budget Inquiry
      RPACASH – Direct Loan Cash Drawdown
      FGITBAL – General Ledger Trial Balance
      FGIBDST – Organization Budget Status
 Reports
      RFRABAL – Account Balance
      RFRBUDG – Fund Budget
      FGRTBAL – Trial Balance
      FGRGLTA – General Ledger Detail Transaction
Direct Loan Compare
Reconciliation Process (RPRCPxx)
 The Direct Loan Compare for the Reconciliation process can be run
  to extract required data used with the ‗Compare reports for the SAS
  files‘ using the Direct Loan Tools for Windows software.
      Files that are exported include:
           DLEXCASH — Provides data about the cash summary

           DLEXLOAN — Provides a summary of loan disbursements

           DLEXDISB — Provides data related to individual

                                      disbursement transactions
      Note: The Direct Loan Tools for Windows software is available
        via the FSA download Web Site. Instructions for installing, using,
        and support of the software are available there. This software is
        not supported by Sungard Higher Education.
DL Reconciliation Tips
 Timing Issues – possible to not be in balance at any given
  time due to the timing of drawdown's, submission of
  disbursement records and adjustments
 Key is to identify reconciling records
 Closeout letter
     Compares GAPS Cash Balance to COD Booked
     Received from the Department of Ed once year is
     Successful Closeout declared if equal
MPN Discharge, Expired MPN,
and MPNs Due to Expire Report
 MPN Discharge Report - COD generates three fixed-length
 Direct Loan MPN reports. These reports are loaded via the
 Direct Loan Flat-File Upload process RPRDUxx and updates
 the Direct Loan Origination Form (RPALORG)
    MPN Discharge Report (MPNDISOP)— Notifies schools
     of MPNs that have become inactive within the last 30
     days due to discharges for death and unauthorized
    Expired MPN Report (MPNINAOP) — Notifies schools of
     inactive MPNs within the last 30 days due to normal
     disbursement inactivity
    MPNs Due to Expire Report (MPNEXPOP) — Notifies
     schools of MPNs that are about to expire or become
     inactive within a specific number of days.
Discussed the commonly used forms and
 processes in the Financial Aid Direct Loan
Reviewed the loan origination and
 disbursement processes
Reviewed promissory notes, entrance and exit
Reviewed Direct Loan change activity
Reviewed Reconciliation
Other Direct Loan Training
   Summit  2010 – Pre Summit Direct Loan
    Training is being planned, watch for this
   Federal monies may be available for Direct
    Loan Training if bill is passed to eliminate
    FFELP programs. Your SunGard Financial Aid
    Consultants are ready to provide this training.
   Current Direct Lending classes are available via
    Webex, go to and click on
  School Resources
     To update SAIG mailbox enrollment
     To set up school to receive funds via GAPS
     For full directions on becoming a DL participant
     for COD Computer Based Training
                     July 6, 2010

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