Direct Loan – Nuts to Bolts Sally Samuels FAME Atlantech Tower Suite 50 6451 N Federal Hwy Fort Lauderdale FL 33308 1402

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Direct Loan – Nuts to Bolts Sally Samuels FAME Atlantech Tower Suite 50 6451 N Federal Hwy Fort Lauderdale FL 33308 1402 Powered By Docstoc
					Direct Loan – Nuts to Bolts
               Sally Samuels
                   FAME
         Atlantech Tower, Suite 50
            6451 N. Federal Hwy.
      Fort Lauderdale, FL 33308-1402
               954-772-5883
             Title IV Eligibility
• Electronic Application for Participation
  (EAPP)
  – New institution application process
  – Existing Title IV eligibility institution
     • Review Eligibility and Certification Approval Report
       (ECAR)
     • May have to submit revised E-APP to add Direct
       Loans
  Direct Loan Approval Process
• Email request to participate
  – COD School Relations Center
  – Include:
     • Name of school
     • Address including city, state, and zip code
     • Person requesting information
        – Financial Aid Director or
        – Official listed on E-App
     • OPE ID
     • COD School ID
 Direct Loan Approval Process (Cont)

• Direct loan operations (DLOPS)
  – Sends approval or denial
• All locations are approved separately
• Each Location
  – Assigned Direct loan E-code
    Options for Processing DL
• ED Express
  – Free software from ED
• Purchase software from software provider
• Develop your own software using ED’s
  technical specifications
• Use a third party servicer
      Options for Processing DL
        Other Requirements
• Complete and/or update your student aid internal
  gateway (SAIG) enrollment
  – Must include Direct loan services
  – Obtain NSLDS access
• Set up school to receive Direct loan funds via the
  Departments’ Grant Administration and Payment
  System (GAPS)
  – Set up bank account with GAPS
  – New direct loan deposit form (Form SF1199A)
  – If using same account as other Title IV funds, still have
    to account for funds separately
            Options for Processing DL
              Other Requirements
• Set up school to receive Direct Loan Funds
   – Apply for GAPS user & ID
   – If you already have one, don’t need another one
   – Requires GAPS user an authorization form
• Contact COD school Relations to reach your primary
  Customer Service Representative (CSR) for:
   –   Updating your contact information
   –   To receive DL bulletins via e-mail
   –   Selection of DL report options
   –   Establishing your promissory note process
   –   Access to COD website
        •   Designate a school security administrator
        •   Add person for access
        •   Modify established accounts
        •   Change procedures
      Options for Processing DL
        Other Requirements
• May complete COD Computer-Based Training
• Sign up for Direct Loan Listserve messages
  – Email David Hebrank
     • David.hebrank@ed.gov
• DL listserve (cont)
  – Request to be added
  – Include
     • Your name
     • Name of School
     • E-mail address
        Options for Processing DL
          Other Requirements
• Approval Types
  – Advance pay
       • School orders funds GAPS
       • COD orders funds
• Loan Process
  –   Originate Loan to COD
  –   Loan record approved or rejected
  –   Student complete EMPN or
  –   School has student sign MPN (Master Promissory Note)
       • School batches MPNs, sends to DL
  – Loan are linked to origination record
  – Advance pay
       • Requests funds from GAPS
       • Submits Disbursement Record
  – Push Schools
       • Submits Disbursement Record
       • Funds are requested by COD
     Options for Processing DL
       Other Requirements
• Cash management requirements
  – 3 Day rule
    • No exceptions
• Booked loans
  – Prom note
  – Disbursement records
  – Multi-year vs single-year option
        Options for Processing DL
          Other Requirements
• Reports:
  – Monthly reconciliation
       • Student account statement (SAS)
          – Monthly detail
          – Yearly detail
  –   Inactive Loan Report
  –   Student SSN, Name, Date of Birth Change
  –   Borrower Delinquency Reports
  –   Anticipated Disbursement Report
  –   30 Day Warning Report
       • Loans not booked
  – MPN Reports
      Options for Processing DL
        Other Requirements
• Ordering MPNs
  – FSA Pubs web site
     • Paper version
  – Direct Loan Web Site
• Contact
  – COD School Relations Center
     • 800-848-0978
     • codsupport@acs-inc.com
  – FSA Publications web site
     • orders@fsapubs.org
     • 800-394-7084
        Direct Loan Publication
• www.fsapubs.org
• Fax (301)-470-1244
• Publications for Students
  –   Direct Loan Basics for Students
  –   Direct Loan Basics for Parents
  –   Entrance Counseling Guide for Direct Loan Borrowers
  –   Exit Counseling Guide for Direct Loan Borrowers
       • Borrower’s Information Form
  – Rights and responsibilities summary
• Direct Consolidation loans (PDF only)
      Direct Loan Publication
• Publications for Financial Aid
  Professionals
  – Direct Loan School Guide
  – Entrance Counseling Guide for Counselors
  – Exit Counseling Guide for Counselors
  – Direct Loan Servicing Systems Letters
      Direct Loan Resources
• New: Entrance Counseling Video
  – Free download
  – Enhanced version-cost involved
• Interactive Calculators
  – Budget calculator
  – Each type of repayment plan
  – Direct consolidation loans

				
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