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Jean Balcer Financial Aid Processing Coordinator Davenport University.

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Presentation on theme: "Jean Balcer Financial Aid Processing Coordinator Davenport University."— Presentation transcript:

1 Jean Balcer Financial Aid Processing Coordinator Davenport University

2 Determine loan eligibility for dependents w/PLUS denials Determine loan eligibility when student’s history has Health loans Try to identify capitalized interest Discuss the reaffirmation process

3 Review NSLDS – loans noted with “P” indicate additional eligibility due to PLUS denial. These loans can be subtracted out of the aggregate total to determine the dependent undergrad aggregate total. If student is under the $31,000 cap, you can award loans up to the cap. If student is at the $31,000 cap, before awarding any additional loans, you must obtain a PLUS denial. Then you can award at independent level.

4 Johnny has $20,500 sub and $26,000 unsub = $48,000 for aggregate totals. On NSLDS he is being flagged for “Additional Unsub.” Per his loan history he has $17,000 in additional unsub that is flagged with “P”. So, his undergraduate dependent total actually is: $20,500 + 9000 = $29,500.

5 The student can borrow $1500 in sub funds for the academic year, which now brings him to $31,000 cap. In order to borrow any more than that, you would need a PLUS denial on file. For the next academic year, you would not be able to award the student anything until you have a PLUS denial on file.

6 Student is flagged for exceeding dependent aggregate loan limits. The dependency code on NSLDS is dependent, on the 13-14 ISIR the student is showing independent. Loan Acad. Level equals NA. The student’s loans are coded incorrectly, therefore creating the status of being overawarded.

7 Two years of loans disbursed should be coded as independent academic level. To correct, must contact the servicer to have the student’s loan history updated.

8 For participating medical schools student can borrow up to $224,000. If your school is not a medical school, you must determine the student’s eligibility before awarding loans. Review NSLDS – loans noted with “H” indicate additional eligibility due to health medical loans. These loans can be subtracted from aggregate total.

9 If the loans are not clearly marked, but you know the other school was a participating medical school, then the student would only be eligible for Grad PLUS loan at your school. From FSA handbook, Volume 3, Chapter 5, page 3- 92. “If a student receives the additional Stafford loan amounts on the basis of study in a health profession program but then leaves that program and enters a program in a different field, the student is no longer eligible for the increased Stafford loan limits. However, the additional loan amounts received on the basis of health professions study are not counted towards the normal aggregate Stafford loan limit for that student.”

10 Example: Student’s aggregate total is $145,000. There is one unsub loan for $35,000 marked with “H”. To determine her non-health professional aggregate total: 145,000 – 35,000 = 110,000. Student is eligible for $28,500 in unsub funds before reaching $138,500 cap.

11 The consolidated loans and older FFELP loans are usually the culprit for capitalized interest. Usually capitalized interest will be added to AGG OPB when the OPB balance is less than the disbursed amount on FFELP loan. One way to determine which loan may be the issue is to compare current loan history to a prior loan history. If current is higher, then principal balance increased.

12 You can also look at Loan Detail tab on NSLDS to see if the AGG OPB balance has increased from a prior date. If you can find the loan that created the overaward, you may be able to go to the servicer’s website to look at loan payment history; there it will indicate if capitalized interest has been added. If so, you can use that as your documentation as to why the student is over aggregate limits.

13 If not, then you will need to obtain a Reaffirmation letter or Satisfactory Repayment Arrangements letter. If the student has consolidated all of their loans, the student has then reaffirmed their debt as he or she has to sign a new Promissory Note for the consolidation.

14 When a student is flagged on NSLDS for exceeding loan limits, the school must rectify the overaward before the student is eligible for Title IV funds. Note: NSLDS will only flag a student as exceeding loan limits if the overaward is greater than $100.

15 Per regulations, even if the overaward is a $1.00 the school must rectify the overaward either by reallocating a sub overaward or student obtains reaffirmation letter. Gen 13-02: Remaining Title IV Eligibility after exceeding loan limits explains the steps to take for the reaffirmation letter.

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17 When the student receives the reaffirmation letter, they have two options: 1.Pay the overaward. Payment must accompany the letter back to the servicer in order to be applied directly to principal. 2.Sign the reaffirmation, which is an amendment to the original promissory note.

18 NSLDS Customer Support Center Phone: 1-800-999-8219 Toll: 1-785-838-2141 Fax: 1-785-838-2154 Web: www.nsldsfap.ed.govwww.nsldsfap.ed.gov Email: nslds@ed.gov

19 Jean Balcer Davenport University Financial Aid Processing Loan Coordinator Jean.balcer@davenport.edu 989-393-2635


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