Federal Direct Loans, PLUS Loans, and Graduate PLUS loans are processed through COD. See "Importing and Exporting COD Records" for details on the processing of these loans.
Entrance Counseling
The system setup process supports the ability to establish entrance counseling as a one-time only document requirement during the awarding process for loans. This document can be set to prevent disbursement of funds until such time as the document status is set to "Satisifed". The document can be automatically satisfied through the import of EC files from COD.
Master Promissory Note (MPN)
The system setup process supports the ability to establish Master Promissory Note as a one-time only document requirement during the awarding process for loans. This document can be set to prevent disbursement of funds until such time as the document status is set to "Satisfied". The document can be automatically satisfied through the import of PN files from COD.
Reprocess COD Import Files for Entrance Counseling (EC) and Promissory Note (PN)
The system will match PN and EC records to students who did not exist in the system at the time the COD PN and EC files were imported. Once the student is created in the system, the EC and PN records will be reprocessed via a scheduled process which will match the records to the student. The process log will have an entry 'Import COD - Reprocess EC' and details such as the number of processed records.
Linking Of the Master Promissory Note (MPN)
The system should in most cases automatically link the MPN to a Direct Loan via the COD import process. However, it instances where this has not occurred, you can manually link an MPN to a loan by going to the Loans tab and clicking on the row containing the loan. The details of that loan will be displayed in a series of tabs at the bottom of the page. To edit the loan, click on the MPN Info tab and then click on the Select MPN icon. If there are existing MPNs for the student in the system you can select from the listing of MPNs or add an MPN.
Mid-Year Grade Level Increase
Through Institution Setup, the school can configure the system to automatically award an increase in the loan amount based upon grade level progress by setting "Automatically Award Grade Level Progression" to "Yes". If this is done, the system will automatically repackage the student with the grade level increase if transfer credits are submitted and the loan period is still open. Please note, this will not automatically occur in the middle of a loan period for non-transfer credits, if the program is configured as "non-term" academic program.
Origination Fee
Loan origination fees are configured in administrative setup. Under the current sequestration rules, the origination fee can change if the first disbursement of the loan occurs before or after October 1st. If the loan was originated and originally scheduled to be disbursed prior to October 1st but the disbursement is delayed until after October 1st, the system will cancel the original loan and then create a new loan with the appropriate origination fee.
Aggregate Loan Limit
In determining if a student is approaching their aggregate limit in the awarding process, the system utilizes the most recent information from the History tab.
If the ISIR column contains the most recent information, the system utilizes the Aggregate amounts from the ISIR (lines 400 - 402) MINUS loan DRI=true disbursements with a release date prior to ISIR transaction process date. The system will use the Active ISIR in all cases unless Active ISIR has an NSLDS Database Results Flag Value of "5" (field 378), in which case it will use most recent ISIR that does not have "5" in this field. The NSLDS column uses same logic as ISIR but uses NSLDS' process date.
When using the manual option is used on History tab, the system will take the manual amount entered MINUS any paid disbursements (paid amounts are disbursements designated as DRI="true") on or before the manual date. If the "Always Use Manual' box is checked, the system will always use the values entered to determine the remaining eligibility. If ED reports any changes to the information subsequent to the flag being set, a task to Review Aggregate Limits will be generated.
Loan Proration
In determining if an undergraduate student loan is to be prorated, the system checks to see the remaining portion of the student's program of study contains less than an academic year of units or if the academic program is shorter than a full academic year in length.
If the remaining portion of the student's program of study contains less than an academic year of units, the system divides the remaining number of units by the number of units in the academic year and rounds this fraction to a two-digit decimal (as shown in the examples in the FSA Handbook) the system then multiplies the annual loan limit by this decimal.
If the academic program is shorter than a full academic year in length, the system then divides the remaining number of units by the number of units in the academic year and rounds this fraction to a two-digit decimal (as shown in the examples in the FSA Handbook) the system. Secondly, it divides the remaining number of weeks by the number of weeks in the academic year and rounds this fraction to a two-digit decimal. The system then multiplies the applicable annual loan limit by lesser of these two decimals.
When a student does not have full course registration in a Remaining Period of Study (RPS) AY, the system anticipates a proportional number of weeks in the final RPS AY based on their anticipated remaining units. When the student registers for courses, the system adjusts the units, weeks, and Payment Period dates based on the student's course registration.
Based on new guidance received from the Department of Education, if the student's final RPS AY is one-half of the program's defined Academic Year length (or less), in either units or weeks, the system will create only one Payment Period in that final RPS Academic Plan Year. If the student's RPS is greater than half of an AY, in both units and weeks, the system divides that RPS AY into two Payment Periods. Unless the user has overridden the number of PPs (see below), the system will automatically adjust the number of Payment Periods. Whenever the number of Payment Periods changes for an Academic Year, the system records the change in the student's Activity Log.
The system to allow schools to choose either 1 or 2 Payment Periods in a Non-Term student's RPS Academic Year. The feature is helpful for schools who need to adjust a student's Academic Plan when the student's the system data does not match external system data. The option only changes the number of Payment Periods when a student has less than a full AY in units or weeks in their final Remaining Period of Study. The calculated AY length remains the same; only the number of Payment Periods changes. If the AY is not the final AY in the student's program, the setting has no effect.
To apply the 1-or-2-PP override, an option is available by adding or editing a Manual Academic Year in the Program Management Wizard (PMW). In the Modify Student Academic Year –Non-term section of the PMW is a field called, "Number of Payment Periods in the Final Academic Year." The available options are: "managed by the system," "1 Payment Period," or "2 Payment Periods." Normally, the system manages the number of payment periods in the student's final Academic Year ("managed by the system"). If the "1 Payment Period" option is chosen, then the final RPS AY will have only one Payment Period. If the "2 Payment Periods" option is chosen, then the final RPS AY will have two Payment Periods. The system will also note the override in the student's Activity Log.
When the system determines an RPS AY has 1 or 2 PPs, and no override exists, the system will apply the same 1-or-2-PP logic regardless of whether the Academic Year has a Manual Academic Year (also known as a Student BBAY Modification or SBM). the system does not use the Manual Academic Year units and weeks for allocating the number of Payment Periods in the final Academic Plan Year.
Additional Unsubsidized Eligibility
A school will make a determination that the Parent was denied a PLUS, was not able to obtain an endorser and the student would like to have an Unsubsidized Loan. Once this is done, the school would cancel the PLUS award using the Modify Award wizard from the Award Tab and then go the student's Loan tab and check the Additional Eligibility Indicator on the Unsubsidized Loan record for the appropriate loan period. The system will then package the student with the additional Unsubsidized Loan eligibility.
Changing a Loan Period or Academic Year
The ability to change the loan period for a loan, adjust the loan period or to create two single term loans is accessed through the Program Management wizard on the Academic Plan tab. For the Action Type, select Manage Academic Years/Loan Periods.
The wizard then displays the information related to the student's current awards, program, and academic years.
Using the Program Management Wizard (PMW)
Before using the Program Management Wizard (PMW) to adjust loan periods, other adjustments may need to be made to loans via the Modify Award wizard.
- If the loan status is "Estimated", then do not use this functionality. Any adjustments will be overwritten on the next batch packaging process.
- If the loan is a Manual or Rebuild award, use the Modify Award wizard to zero out the awards and disbursements. Then follow the Program Management wizard steps below.
- If the loan is not Manual, Rebuild, or Partially Paid, follow the Program Management wizard steps below.
- If the first half of loan is Paid, use the Modify Award wizard to adjust accepted amount to the paid amount and to zero out any unpaid disbursements. Then follow the Program Management wizard steps below.
- If the loan is fully paid, use the Modify Award wizard to adjust accepted amount to paid amount of first term of loan, zero out disbursements for second term. Then follow the Program Management wizard steps below.
There are two paths described below:
- Steps to split a multi-term loan period into two single term loan periods.
- Steps to add a new (single term or multiple-term) loan period to an Academic Year with an existing (single term or multiple-term) loan period(s).
Program Management Wizard (PMW) Steps to Split a 2-Term Loan period into Two Single Term Loan Periods
1. Open up Program Management wizard on the Academic Plan tab
2. Select Action Type: Manage Academic Years/Loan Types
3. Select the Add Academic Year icon under Manual BBAY Modifications near the bottom of the page
4. Select Academic the Year Number for the student's academic year with the loans you wish to adjust
5. Select the Federal Award Year to be associated with the academic year for the loan
6. Select the terms for the loan period by clicking on the green plus icons. The selected terms will populate in the box to the right.
7. Change the Loan Period to "2" for second term (A-2013-09) (Note: Select "None" for the second term if this BBAY will only have loans from the first term). Note that a second Academic Year Loan Period is added at the bottom. The loan period start and end date show that each single term loan period is only one term in length.
8. If the two loans in this BBAY will be from different Federal Award Years, then under the Academic Year Loan Periods, click the Edit icon on second Loan Period (Begin Date: 9/2/2013)
9. Set the Federal Award Year to 2014-2015, then click the Update icon.
10. Click the Save icon at top of this sub-page.
11. Click the Continue icon at the top of Program Management wizard.
12. Click the Finish icon.
13. Use the Add Award wizard or the Modify Award wizard to add or adjust awards as appropriate.
add an additional loan period rather than splitting an existing one
In this example, we will leave a 2-term loan in place, and add a second loan period that is just for the second term.
1. Follow Steps 1 through 6 above – the student has a 2-term loan from 12/2/2013 to 7/17/2014.
a. Click Add Loan Period at the bottom of the screen.
2. Select the single term for the new loan by clicking on the appropriate green circle, then click the Save icon.
3. The new 1-term loan period has been created, while the original 2-term loan period still exists.
a. Follow steps 10-12 above to finish the wizard.
The system will shorten the prior loans (update loan period end date) and cancel all disbursements after the loan period end date for that loan. New loan will be created and it will be marked as "HasCODChanges" so that it can be exported to COD for origination.
Abbreviated Loan Periods
In order to support financial aid for non-term external transfer students who received aid at their prior school, or who are transferring from a term program into a non-term program at the same school, the open or overlapping AY for the prior program is accounted for using an "Abbreviated Period." Abbreviated Periods maintain aid for open/overlapping Academic Years (short BBAYs) allowing the students to finish their remaining AY aid eligibility at this institution.
The Program Management Wizard (PMW) allows for the manual creation of the abbreviated period. If the "Has Abbreviated Period" checkbox is selected, you will see a grid containing "NSLDS Awards from Other Institutions" in the 'Add/Modify Academic Year' modal window within the PMW. If FAH or TSM files from NSLDS were imported, the grid will display award data for DL Subsidized and DL Unsubsidized awards whose academic year start and end dates contain the program start date (anticipated program start date if the actual program start date is not available) of the program selected on the "Add Academic Year" Modal window. The grid displays the total amount that the student was awarded for this fund during the AY, based on NSLDS FAH data in the Total Used column. The grid also enables the user to override the amount for the award. If no FAH or TSM files from NSLDS were imported, the grid will display DL Subsidized and DL Unsubsidized awards names only and the ability to enter the "Override Amount" of each fund for the academic year. The override amount entered is used to reduce the student's eligibility during the AY. The system uses this amount when entered, otherwise, the system will use the 'Total Used' amount from NSLDS to reduce the student's eligibility for the AY. A new activity log entry is generated for the student when the "Override Amount" value is edited on the "Add Academic Year" modal window in the Program Management Wizard. The "Program Start / Re-entry Date" field is editable to allow you to override the date. If you change the date value, a "recalculate" button will appear to the right of the field. Upon selecting the "recalculate" button, the system will re-query the NSLDS data based on the new date value entered.
The system can alert you to the overlapping of prior AYs in different ways. When data is imported from NSLDS (the FAH or TSM file), the system will generate the "Review Overlapping Academic Year from NSLDS" task when it detects that the student's Academic Year start date in the system falls within the academic year start date and the academic year end date of an award on the NSLDS history file. Alternatively, you may be alerted to this scenario as a result of the import of a new ISIR via the "Review Overlapping Loan Period from ISIR" task.
Once the task has been triggered, the school will use the Program Management Wizard to manually modify the student's Academic Year in the system, and designate that SBM (Student BBAY Modification record, or manually adjusted Academic Year) as an "Abbreviated Period."
When "Has Abbreviated Period" is checked, the marked Academic Year is flagged as an "Abbreviated Period." You must adjust the Academic Year start and end dates to align with the open AY on the student's NSLDS record at the student's prior institution.
You have the ability to set up separate disbursement schedules for these abbreviated periods. The disbursement schedule supports Abbreviated Periods greater than four months in length, or Abbreviated Periods less than or equal to four months in length. The Disbursement Schedule options allow a school to disburse based weeks.