1. 10 th Anniversary 1999 - 2009 Direct Loans and Banner Dave Curran, Principal Consultant

2. Before we start…. Please turn off cell phones or change to silent mode Please jot down questions and hold until end of section

3. 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)

4. Agenda Information for clients switching to Direct Loans Overview Banner Set up Banner Day-to-Day Processing Question and Answer

5. 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

6. Advantages of Direct Loans Financial Aid Office controls the process Schools chooses when to disburse loans Require acknowledgement of PN? Of COD origination? No need to send hold and release request to guarantor No need to import EFT roster Minimal involvement for Bursar Office Response files from COD are received in a matter of hours

7. Becoming a Direct Loan Participant 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 approval 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

8. Decisions to be made Will the school use the electronic MPN? Will acknowledgement of MPN be required for disbursement? Will acknowledgement of origination record be required for disbursement? How often to receive Entrance Counseling files? How to communicate with students on changes – Remember! All new DL borrowers must complete a new MPN. (Some schools also require a new Entrance Counseling from each student, although this is optional.)

9. Overview To outline the set-up process for direct loans Explain the day-to-day or operational procedures for direct loans

10. Part 1 – Setup

11. Direct Loan Setup RESOURCES TO REVIEW: SGHE Publication COD Handbook Loan Processing chapter, in the Banner Financial Aid User Guide Banner Help > Online Help on that specific form Annual Spring Banner Financial Aid Release contains updates for federal loan processing as well as COD processing

12. Direct Loan Setup OTHER HELPFUL RESOURCES: Direct Loan listserv National Direct Student Loan Coalition http://www.directstudentloancoalition.org/ Direct Loan Reference Material available at https://www.fsadownload.ed.gov/ Direct Loan Simulations and CBTs http://www.nasfaa.org/publications/2008/eacodcbt1 02308.html

13. 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

14. 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 RFRBASE form. Ask Student Accounts personnel to establish loan fund detail codes for Direct Loans. Names as shown above will appear on billing statement.

15. 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.

16. RFRMGMT (Funds Management Form) The Rebate Fee % and the Loan Fee % are Required. The Interest Rate is Optional. You must - Select Direct Loan Indicator

17. RORCODI (COD Entity ID Rules) Enter Schools 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.

18. ROAUSIO (US Specific Institutional Options Form)- ROAINST Complete Loan Options - Loan Type of Both (or Direct) - Indicate Multi-Year Note Eligibility - Enter Entrance and Exit Requirements

19. 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

20. RTVLNST (Loan Status Validation) Prevents disbursement memos. Hold codes stop processing until removed. Create Loan Statuses Note: Initial Loan Status should be Active as the status is only updated manually. Used for all loan processing, Direct, Electronic and Manual.

21. 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

22. RPRLPRD (Loan Period Base Data) Create Loan Periods Create a disbursement schedule for each loan period on the 2 nd page of this form

23. 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 System Review Delivered Federal Rules RPIFEDR – Federal Rules Inquiry Form

24. 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 schools codes to the correct values needed for COD

25. GJAPDFT for Loan Application Creation 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- line This enables the user to create the origination record by clicking on Create Loan Applications in the options menu on the award form (RPAAWRD).

26. Set-Up Forms specific to FFELP Processing RTVCINT – Certification Initials Validation Form - Establish certification initials for each staff that processes loans, if desired 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

27. Part 2 – Day to Day Operations

28. Day-to-Day Processes 1. Award & Create Direct Loan: …Offer or Accepted Allowed 2. Submit Origination to COD 3. Optional - Execute MPN 4. Optional - Submit MPN to COD 5. Disburse Direct Loan & submit Disbursement to COD 6. Import Response from COD 7. Repeat 5 & 6 for all Disbursements 8. Reconcile Direct Loan Funds

29. 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

30. Direct Loan Originations

31. Loan Origination Process Flow RPRLORC Create Loan Origination Create Origination Records REREXxx_yyyyy.xml REREXxx RPALORG REICODD Updated with batch information RPALORG REASTID REICODD RPALDSB RERIMxx Import origination Acknowledgement file into Banner REASTID Creates Student Identifier Record RPALORG Updates Origination Record Updated by RPRLORC process (Enter Parent Info on RPALORG for PLUS loans as needed ) FTP CRDLxxIN file to local PC. Send file to COD Receive acknowledgement file crdlxxop FTP to DATAHOME directory Updated by RERIMxx process RPAAWRD Award Loans to Eligible Students Start

32. Origination Activity Loan funds are first awarded on one of the award forms RPAAWRD or RPAAPMT Students may accept loans on Web or you may enter acceptances manually or in batch

33. 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 students award letter can create Origination records while the fund is still in an offered status. 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 PNs) Origination Activity - Loan Origination Process RPRLORC

34. Origination Activities RPALORG - Federal Direct Loan Origination Form Major blocks Loan Information Summary block Promissory Note Summary block Loan Disbursement Summary block Disbursement Detail block Student Data block Parent Data block

35. This process extracts loan originations to be sent to COD for all records in a Ready or Not 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 Transfer File to PC to send to COD via EdConnect REREXxx Process updates the COD Document Control form - REICODD Origination Activity – COD Extract - REREXxx Process

36. 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

37. Origination Activities (cont.) REICODD – COD Document Control Form

38. Origination Activity – COD Import Process RERIMxx COD returns file as crdlxxop RERIMxx loads incoming file into Banner Forms updated with this process RPALORG - Federal Direct Loan Origination Form REICODD – COD Document Control

39. Direct Loan Promissory Notes

40. Promissory Note Activities When running RPRLORC process to create the Direct Loan Origination Records you will complete parameters pertaining to Promissory Notes. 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

41. DL Day-to-Day Process in Banner Q – E-MPN 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

42. DL Day-to-Day Process in Banner R – Paper MPN REREXxx – Parameter 05: Promissory Note Print 0 = Schools prints from Banner R = COD prints, sends to school S = COD prints, sends to borrower

43. DL (School Prints) Promissory Note Flow Print Promissory Notes and address labels RPRPNPT RPALORG RPAPROM Updates Prom Note Record Mail Prom Notes to Student Student returns Prom Note RPAPROM RPALORG Log receipt of Prom Note RPRDLPM Create Prom Note Manifest Mail Manifest to COD COD will send back an Acknowledgement file RPAPROM RPALORG Updates Prom Note Record Receive Prom Note Acknowledgement CRPNxxOP on local PC with EDConnect software Start RERIMxx Load Prom Note Acknowledgement RPALORG RPAPROM Updates Prom Note Record

44. Promissory Note Activity Users must still allow the student the option of signing a paper promissory note even if choosing Q - E-MPN

45. Promissory Note Activity RPRPNPT Process Paper promissory notes will print for all students whose prom note status on RPALORG is Ready 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

46. Promissory Note Activity RPRPNPT Process Output: 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

47. Promissory Note Activity RPRPNPT Process 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

48. Prom Note Activities (cont.) Information housed on Promissory Note form RPAPROM and the Promissory Note block of RRAAREQ Fund Code & Description Term Code Direct Loan Sequence Number Direct Loan Status Indicator Satisfied Indicator & Date Effective Date

49. RPAPROM (Promissory Note Form)

50. Promissory Note Activity RPRDLPM Process This process produces the Promissory Note Manifest of signed notes not previously manifested Prom notes are batched in groups and mailed to the COD Users can control the size of the batch

51. 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

52. Disclosure Statement Printing RPRDSPT Process 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.

53. Direct Loan Disbursements

54. DL Disbursement Flow Create Disbursement Records REREXxx_yyyyy.xml REREXxx REICODD Updated with batch information RPALORG REICODD RERIMxx Import disbursement Acknowledgement file into Banner RPALORG Updates Record FTP CRDLxxIN file to local PC. Send file to COD Receive acknowledgement FTP CRDLxxOP file to DATAHOME directory Updated by RERIMxx process RPEDISB Run Disbursement Process Updates Disbursement Record Start RPALORG ROIDISB Review Disbursement Results (Optional)

55. 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 Maintenance RPAAPMT – Packaging Maintenance

56. 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 disbursements Actual Disbursements – extracted once the scheduled disbursement date is reached and amount is in Paid Status

57. 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

58. Direct Loan Changes

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

60. 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 Import

61. 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 activity Disbursement changes go out as either positive or negative disbursement records

62. RPADLCR (Corrections Form)

63. 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

64. 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

65. Direct Loan Entrance/Exit Counseling

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

67. Entrance/Exit Activity Entrance/Exit requirements are posted on RRAAREQ form Entrance and Exit codes as assigned to students on RRAAREQ Entrance can be posted via RFRMGMT when fund is awarded or Batch Posted Exit Records can be posted to a students 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.

68. Entrance/Exit Activity COD sends Entrance Counseling files on a regular basis Files are uploaded into Banner via the Direct Loan Flat-File Upload process RPRDUxx Incoming data populates the Loan Electronic Counseling Status form RPILECS Scroll bar allows user to access multiple records RPILECS can be accessed from RPALORG form

69. RPILECS (Entrance Counseling Form)

70. DIRECT LOAN RECONCILIATION

71. What constitutes Reconciliation? Ending Cash Balance of -0- Schools 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.

72. DL Reconciliation Process RPRDUxx Upload files to Banner COD sends School Account Statement for prior months transactions Receive fixed length SAS files on local PC via EDConnect Start DSDFxxOP.DAT DSLFxxOP.DAT Transfer files from local PC to Banner server RPIDLAS RPALORG RPACASH Updates Use Institutional procedures to reconcile SAS data with Business Office records on a monthly basis.

73. School Account Statement Activity SAS – School Account Summary files are received via EDConnect and uploaded into Banner DSDFxxOP.DAT DSLFxxOP.DAT Banner supports only these message classes for SAS

74. 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 Department. This must be manually entered after each drawdown so the School Account Summary statement will load in accordingly.

75. RPACASH - Cash Drawdown Form Manually Enter: Date Amount Aid Year Action 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

76. RPIDLAS - Account Summary Form Displays account summary detail directly from the School Account Summary statement

77. DIRECT LOAN RECONCILIATION 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

78. DIRECT LOAN RECONCILIATION DL Reconciliation Process in Banner Compare FA totals to Finance Totals – identify differences 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

79. 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. www.sfadownload.ed.gov

80. DIRECT LOAN RECONCILIATION 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 Disbursements Received from the Department of Ed once year is complete Successful Closeout declared if equal

81. 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 signature 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.

82. Summary Discussed the commonly used forms and processes in the Financial Aid Direct Loan module Reviewed the loan origination and disbursement processes Reviewed promissory notes, entrance and exit processes Reviewed Direct Loan change activity Reviewed Reconciliation

83. Other Direct Loan Training Opportunities Summit 2010 – Pre Summit Direct Loan Training is being planned, watch for this opportunity. 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 SunGard.com and click on Training.

84. School Resources https://www.fsawebenroll.ed.gov/PMEnroll/index.jsp To update SAIG mailbox enrollment https://www.g5.gov To set up school to receive funds via GAPS http://www.ed.gov/offices/OSFAP/DirectLoan/participating.html For full directions on becoming a DL participant http://www.ifap.ed.gov/eannouncements/1007CODUpdatedCBTDoc.ht ml http://www.ifap.ed.gov/eannouncements/1007CODUpdatedCBTDoc.ht ml for COD Computer Based Training

85. February 13, 2014 Questions? dave.curran@sungardhe.com