Presentation on theme: "“Rational “Rational and Irrational Adventures in the Direct Loan Wonderland” Presented by Sherry Proper Director of Financial Aid & Enrollment Support."— Presentation transcript:
“Rational “Rational and Irrational Adventures in the Direct Loan Wonderland” Presented by Sherry Proper Director of Financial Aid & Enrollment Support Allegheny College
2 “Chapter 1 – Down the Uncertain Chasm” Liquidity injected into FFELP by Government purchasing of loans in 2008-09 & 2009-10 –Very unlikely to happen for 2010-11 July 1, 2010 not that far away Will FFELP $$$ be available? Will lenders remain in FFELP? Is 100% DL participation inevitable? What has your school done to prepare?
3 “Chapter 1 – Down the Uncertain Chasm” Virtually all the same regulations Use of MPN & entrance counseling Same annual & aggregate loan limits Similar borrower benefits & repayment options Same interest rates except PLUS –FFELP PLUS 8.5% –DL PLUS 7.9%
4 “Chapter 2 – The Puddle of Tears” It’s a different language in a Parallel World –DRI, booked loans, disb sequence numbers, etc. –Originate instead of certify –Make loans inactive instead of canceling Single source (G5) instead of many sources Required monthly reconciliation & year-end closeout Technological changes Processing & procedure changes
5 “Chapter 3 – The Circle Race” Does it feel like we are running in circles? Preparation prior to converting –New DL school set up –DL implementation steps –Software issues Also prepare for the follow-up work –How to handle PLUS borrower info –Response records, rejects & warnings –Reconciliation
6 “Chapter 4 – Rabbit Sends a Little Help” Helpful DL Software Considerations –Send & receive DL/COD data –Determine if you have DL rejects –View details about response errors –View PLUS borrower information –View sequence numbers & COD responses –View entrance interview dates –Determine the Booked Loan amount –Reconciliation reports for DL –COD message classes
7 “Chapter 5 – Advice from the Caterpillars” Checklist for the Transition to Direct Loans –Participation & technology readiness –Communication –Awarding loans & revisions –Originating loans –Promissory notes –Entrance counseling –Disbursement process & delayed disbursements –COD reports –Obtaining funds
8 “Chapter 6 – Booked Loans & Pepper” Linking MPNs –Loan award –Active MPN –Data elements needed to link loans Booked Loans – COD must receive & accept: –Completed/signed MPN –Award record –Actual disbursement (DRI=true) –Key loan data elements Person data Award/disbursement data
9 “Chapter 7 – PLUS MPN Mad Tea Party” Institutional PLUS loan form –Advantages –Disadvantages New PLUS application website –Advantages –Disadvantages School-initiated credit check –Advantages –Disadvantages
10 “Chapter 8 – The Queen’s Croquet Court” PLUS approvals like chaotic croquet game Approved if no adverse credit Different from the more strict criteria in FFELP PJ as an alternative to the credit check »SSI income »Welfare recipient »Active bankruptcy proceedings »Other ???
11 “Chapter 9 – Mock Turtle’s COD Story” COD at the center of DL processing Common record “data blocks” »Disbursement »Award »Person »Entity Information »Common Record Batch search, summary, detail MPN search & credit check info Person information –Award detail, disbursement history
12 “Chapter 10 – Lobster Counseling Quadrille” New online entrance counseling New online exit counseling Entrance & exit reports available Combination FFELP & DL complications –One exit counseling session okay, but must provide additional info on other program
13 “Chapter 11 – Who Stole the Tartlets?” Reconcile monthly –Where is the money? –Internally FA & Business Office –Externally with COD Cash, loan summary, loan detail COD screens & reports SAS from COD Software system reports DL Tools software COD reconciliation specialists
14 “Chapter 12 – Alice’s DL Evidence” Evidence indicates things will be okay in the DL Wonderland –Solid servicing system –Successful school examples –Colleagues helping each other DL Info exchange –What DL tip/advice can you offer? –What DL help do you need?