Session 45 Direct Loans: How to Get Started and Get Going ! Gail McLean-Campbell Lisa DiCarlo

2 Objectives Get Started: –Application and Approval –Setup Get Going: –School Processing Options and Setup –Operational Decisions –Tools Available

3 Get Started: Application and Approval Set-up

4 Get Started: Application and Approval Certified eligible for Direct Loan? –Eligibility and Certification Approval Report (ECAR) –“E-APP for Schools” Web site

5 Get Started: Application and Approval participation request to: –Include: School name, address, and phone # Requestor’s name, , and phone # Award YearCOD ID (8 digit #) DUNS #OPE ID (8 digit #)

6 Get Started: Application and Approval List of requested information can be found at: – n/index.html Professionals –Becoming a Direct Loan Program Participant

7 Get Started: Application and Approval Direct Loan Operations Review –Review school records –Approve or deny request –Record results of review in PEPS – Approval or Denial letter to the school

8 Get Started: Application and Approval Approval letter –Effective date –Funding method –Direct Loan Checklist Denial letter –Reason for denial –Actions required for reconsideration

9 Get Started: Setup PEPS transmits school information to COD Direct Loan Operations assigns “Initial” CFL COD transmits school information and CFL to Grant Administration and Payment System (GAPS) GAPS creates school’s Direct Loan account

10 Get Started: Setup Grant Administration and Payment System (GAPS) –Direct Loan”Banking” information –GAPS Hotline: –Web site:

11 Get Started: Setup Student Aid Internet Gateway (SAIG) –Complete or revise SAIG Agreement SAIG assigns mailbox (TG#s) –Arrange for testing of transmissions –SAIG Customer Service: –Web site:

12 Get Started: Setup Approved Additional Locations –May report origination records separately from main campus –Must be set up to process Send an request to:

13 Get Started: Setup Approved Additional Locations –To process separately Must have –A unique Grantee DUNS »Dun & Bradstreet – –A unique Direct Loan code (“E” code) –Must follow same steps as main campus

14 Get Going: –School Processing Options and Setup –Operational Decisions –Tools Available

15 Get Going: Processing Options and Setup Basic Responsibilities: –Determine student eligibility for aid –Report Originations, Disbursements, and Master Promissory Notes (MPNs) –Report changes to disbursements –Reconcile loan and cash records

16 ISIR Get Going: Processing Options and Setup Funding Data and Payment Requests Central Processing System (CPS) FAFSA SAR COD Originations, Disbursements & Paper MPNs Responses GAPS NSLDS DLSS e-MPN Funding Request Money Loans and Disbursements Enrollment Status Electronic Entrance & Exit Counseling Repayment/ Servicing Student data

17 Get Going: Processing Options and Setup What funding method? –School-initiated drawdown = Advanced Funds –System-initiated drawdown = Pushed Cash Receive response when submitting via web?

18 Get Going: Processing Options and Setup Master Promissory Note: –Electronic of Paper? –Who handles MPN process? –How often signed? –Accept or reject disbursements without MPN on file?

19 Get Going: Processing Options and Setup Master Promissory Note: –eMPN Stafford (Sub/Unsub) PLUS School options Obtaining access Web site:

20 Get Going: Processing Options and Setup Reports –What format? –Receive or not? –Select via COD Web site

21 Get Going: Operational Decisions To what extent do you plan to participate? –Completely transition? –Offer both Direct Loan and FFELP? –If both, how? –Students choose? –Direct Loans for certain students only?

22 Get Going: Operational Decisions What options will best serve your students? What offices will be involved in the process? –What will their roles be? –Staffing levels sufficient to support operational decisions? Who will conduct your reconciliation? Who will work your rejects/resolve processing issues?

23 Get Going: Operational Decisions How will you process records? –Process yourself Software? Technical support? How will you back up your data? Production schedule? –Third Party Servicer

24 Get Going: Tools and Resources COD Web site: COD.ed.gov –View records submitted to COD –Submit new records –View batches –Correct rejected records –Research issues –Retrieve school reports

25 Get Going: Tools and Resources COD Web site –Access DL Servicing Web site –Computer based training (CBT) –Access: Security Administrator –Request letter to: »U.S. Department of Education Attn: COD Web Access COD School Relations Center P.O. Box 9003 Niagara Falls, NY 14302

26 Get Going: Tools and Resources COD School Relations –Attend session 19: A Day in the Life at the COD School Relations Center –Phone: –

27 Get Going: Tools and Resources DL Tools –Cash Management Tools –Reconciliation –Rebuild

28 Get Going: Tools and Resources Direct Loan Servicing –Session 41 - Late Stage Delinquency Assistance –Entrance and Exit Counseling –School Services: –Borrower Services: –Web site:

29 Direct Loan Servicing

30 Get Going: Tools and Resources Direct Loan Consolidation –School Services page –Borrower Services page –Phone: –Web site:

31 Direct Loan Consolidation

32 Get Going: Tools and Resources School Portal: fsa4schools.ed.gov –Resources and training –Publication ordering –Access to student data –Participation and Funding –Much more

33 School Portal

34 Get Going: Tools and Resources Borrower Publications –Direct Loan Basics –Entrance and Exit Counseling –To order visit:

35 Get Going: Tools and Resources School Publications –COD Technical Reference Implementation Guide –Direct Loan School Guide –Blue Book –Financial Aid Handbook –NSLDS Enrollment Reporting Guide

36 Get Going: Tools and Resources Visit: –School –Borrower Sign up for: –DL listserv –DL Bulletin (through COD Customer Service)

37 Direct Loan Web site

38 Other Direct Loan Sessions Session 40Hands On Tour of DL Tools Session 41Best Practices in Using DL LSDA Session 42DL Funding & Cash Management A-Z Session 43Best Practices for Processing DL at Your School Session 44Direct Loans A – Z Session 46What’s New in Direct Loans: Grad PLUS and other HERA Related Changes Session 47Direct Loan Reconciliation and Closeout Session 48Direct Loan Reports & Reference Materials-Tools of the Trade Session 49How Direct Loan Servicing is Improving the Financial Aid Experience for You and Your Students

39 Contact Information We can be reached at: Gail McLean-Campbell –Phone: – Lisa DiCarlo –Phone: –