Direct Loan Training Suite Session 2 Direct Loan Systems Primer

Direct Loan Training Suite Topics for Today Direct Loan Process Overview School software solution Student Aid Internet Gateway (SAIG) Common Origination & Disbursement (COD) New Direct Loan Borrower Web site G-5 Servicing 2

Direct Loan Training Suite Direct Loan Processing Cycle 3

Direct Loan Training Suite Direct Loan Processing Systems Funding Data COD G-5 SAIG Origination & Disbursement Funding Request Money 4

Direct Loan Training Suite Common Origination and Disbursement (COD) System COD is person-centric –Pell, ACG, SMART, TEACH, DL School sends information to COD COD processes/edits and returns response 5

Direct Loan Training Suite Submitting Records to COD Document –Via SAIG mailbox –Picked up by periodic “sweeps” –Typically transmits many student records Online at COD Web site –Transactions almost “real time” –Involves one student record at a time 6

Direct Loan Training Suite G-5 Maintains school’s Direct Loan account Allows schools to request money via the G-5 Web site 7

Direct Loan Training Suite Direct Loan Processing COD Originations, Disbursements & Paper MPNs Responses Servicers Loans and Disbursements 8

Direct Loan Training Suite Direct Loan Processing Systems Funding Data CPS FAFSA SAR COD SAIG Origination & Disbursement G-5 NSLDS Servicers e-MPN New Direct Loan Borrower Web site Funding Request Money Loans and Disbursements Enrollment Status Repayment/ Servicing SAIG Enrollment Data SAIG ISIR Loans and Disbursements 9

Direct Loan Training Suite School Solution Custom Mainframe Commercial vendor software/application EDExpress –Stand-alone –Combination with mainframe app –Combination with vendor app 10

Direct Loan Training Suite Common Record “Data Blocks” Disbursement Award Person Entity Information Common Record Response 11

Direct Loan Training Suite Funding Data CPS FAFSA SAR COD SAIG Origination & Disbursement G-5 NSLDS Servicers e-MPN New Direct Loan Borrower Web site Funding Request Money Loans and Disbursements Enrollment Status Repayment/ Servicing SAIG Enrollment Data SAIG ISIR Loans and Disbursements Direct Loan Processing Systems 12

Direct Loan Training Suite Destination Point COD TG Mailbox SAIG Process 13

Direct Loan Training Suite 14

Direct Loan Training Suite Loans and Disbursements Funding Data CPS FAFSA SAR COD SAIG Origination & Disbursement G-5 NSLDS Servicers e-MPN New Direct Loan Borrower Web site Funding Request Money Loans and Disbursements Enrollment Status Repayment/ Servicing SAIG Enrollment Data SAIG ISIR Direct Loan Processing Systems 15

Direct Loan Training Suite COD Enrollment Designate a School Security Administrator –Manages school user accounts see: UpdatedCODWebsiteSchools. html UpdatedCODWebsiteSchools. html 16

Direct Loan Training Suite cod.ed.gov 17

Direct Loan Training Suite COD Welcome Screen 18

Direct Loan Training Suite Batch Search 19

Direct Loan Training Suite Batch Search Results 20

Direct Loan Training Suite Batch Summary 21

Direct Loan Training Suite Batch Detail 22

Direct Loan Training Suite Person Menu 23

Direct Loan Training Suite Person Information 24

Direct Loan Training Suite Person Direct Loan Information 25

Direct Loan Training Suite Award Detail 26

Direct Loan Training Suite Disbursement Information 27

Direct Loan Training Suite Disbursement History 28

Direct Loan Training Suite COD-MPN Search 29

Direct Loan Training Suite Promissory Note Search By Date 30

Direct Loan Training Suite Master Promissory Note 31

Direct Loan Training Suite Credit Check Information 32

Direct Loan Training Suite NEW DirectLoan Web site – subject to change  ………………………………………  Spanish Entrance Counseling 33

Direct Loan Training Suite 34 School Options For the Award Year, there will be six new School Options for the Direct Loan program –Default values will be populated in the School Options fields –The new options are not award year specific –Default values for the one time update are listed below: Field NameValid Values Displayed on the Web One Time Update Entries: Participate in Electronic Parent PLUS ApplicationYes or NoYes Participate in Electronic Parent PLUS Application Begin Date MM/DD/YYYY05/01/2010 Parent PLUS Application Response OptionDaily or On DemandDaily Participate in Electronic Grad PLUS ApplicationYes or NoYes Grad PLUS Application Response OptionDaily or On Demand05/01/2010 Participate in Electronic Grad PLUS Application Begin Date MM/DD/YYYYDaily 34

Direct Loan Training Suite New Schema – 3.0c The DL PLUS Award Block the new elements associated with the new application process: New TagValid Values ApplicationCompleteDateFormatted Date – YYYY-MM-DD LoanAmountNumeric CreditBalanceOption“B” – for borrower or “S” – for student CreditActionChoice: “A” – for appeal credit decision, “E” – for pursue an endorser, “N” – for pursue an unsubsidized loan (not pursuing PLUS) or “U” – for no action will be taken at this time CreditAppealStatus: “A” – for appeal accepted, “D” – for appeal denied, “P” – for appeal pending, “R” – for appeal closed without final decision MaximumLoanIndicator “true” – for up to maximum cost of attendance selected or “false” – for loan amount selected CreditDecisionExpirationDateFormatted Date – YYYY-MM-DD OriginalCreditDecisionStatus:“A” – for Accepted, “P” – for Pending or “D” – for Denied DefermentOption:“true” – for deferring or “false” – for not deferring ApplicationIDWill have a sequence number that is unique to each PLUS Application 35

Direct Loan Training Suite Student Access: 36

Direct Loan Training Suite Exit Counseling 37

Direct Loan Training Suite FAA exit counseling reports Upload external excel file of results 38 University of Federal Student Aid UNIVERSITY OF FEDERAL STUDENT AID, WASHINGTON, DC

Direct Loan Training Suite School Summary Financial 39

Direct Loan Training Suite Cash Activity 40

Direct Loan Training Suite Direct Loan Newsbox

Direct Loan Training Suite Loans and Disbursements Funding Data CPS FAFSA SAR COD SAIG Origination & Disbursement G-5 NSLDS Servicers e-MPN New Direct Loan Borrower Web site Funding Request Money Loans and Disbursements Enrollment Status Repayment/ Servicing SAIG Enrollment Data SAIG ISIR Direct Loan Processing Systems 42

Direct Loan Training Suite 43 The G5 System Provides location for all school funding processes –Drawdowns –Drawdown adjustments –Refunds (money returned to the Department electronically) –G5 funding reports 43

Direct Loan Training Suite Establish G5 Account Have a DUNS Number –Call or –Complete a D-U-N-S Request Form at Award Document ID –11 Character unique ID –P268K10#### Set up bank information –Enroll in Automated Clearing House (ACH) using Direct Deposit Sign-Up Form (SF-1199A), or –FEDWIRE by enrolling with CFO, Department of Education Obtain user ID and password –ED mails User IDs and passwords to payee’s business address 44

Direct Loan Training Suite 45

Direct Loan Training Suite G5 – Returning Funds Returning funds electronically through G5 is preferred –Amounts > $100,000 must use G5 Designated Refund Bank Account COD Disbursement Record may need updating 46

Direct Loan Training Suite 47

Direct Loan Training Suite G5 Online Training 48

Direct Loan Training Suite Loans and Disbursements Funding Data CPS FAFSA SAR COD SAIG Origination & Disbursement G-5 NSLDS Servicers e-MPN New Direct Loan Borrower Web site Funding Request Money Loans and Disbursements Enrollment Status Repayment/ Servicing SAIG Enrollment Data SAIG ISIR Direct Loan Processing Systems 49

Direct Loan Training Suite Servicing Future Current Servicer: –ACS Four Additional Servicers: –Great Lakes Education Loan Services –Nelnet –Sallie Mae Corporation –AES / PHEAA 50

Direct Loan Training Suite Servicing Future ServicerSchool ContactBorrower Contact FedLoan Servicing (PHEAA) NSLDS Servicer Code: School Phone: Web: Borrower Phone: Web: Great Lakes Educational Loan Services NSLDS Servicer Code: School Phone: Web: Borrower Phone: Web: Nelnet NSLDS Servicer Code: School Phone: Web: Borrower Phone: Web: Sallie Mae NSLDS Servicer Code: School Phone: Web: Borrower Phone: Web: 51

Direct Loan Training Suite Servicing Future July 15, 2010 –Allocations of new borrower loan volume August 31, 2010 –Additional Servicers fully operational and ready to service Direct Loans 52

Direct Loan Training Suite Servicing Future Servicers comply with all legislative and regulatory requirements and unique best in business services Borrower’s loans with one Servicer Schools work with Multiple Servicers 53

Direct Loan Training Suite Accessing Current Direct Loan Servicing via COD DL Servicing MUST be accessed from COD 1.Click on Services 2.Click Direct Loan Servicing 3.Click the schools link DL Servicing MUST be accessed from COD 1.Click on Services 2.Click Direct Loan Servicing 3.Click the schools link 54

Direct Loan Training Suite Current Servicer - School Services Click here to see Repayment Estimates 55

Direct Loan Training Suite Current Servicer - School Services Online - Delinquency Reports Summary Delinquency Report Late Stage Delinquency Report 56

Direct Loan Training Suite 57 General Federal Student Aid Information COD School Relations-Applicant Services (800) Direct Loan Servicing Center – Borrower Services Direct Loan Consolidation Center Federal Student Aid Ombudsman Direct Loan Information Call Center Contacts for Borrowers 57

Direct Loan Training Suite School Customer Service Centers COD School Relations Center (800) School Services – DLSS (ACS) (888) Direct Loan Consolidation Center (800)

Direct Loan Training Suite School Customer Service Centers CPS/SAIG (800) G5 Help Desk (888) NSLDS (800)

Direct Loan Training Suite Direct Loan Programmatic Primer Direct Loan Systems Primer Direct Loan Processing in COD for New Participants Direct Loan Reconciliation Direct Loan Reports Direct Loan Tools (Software) 60

Direct Loan Training Suite Direct Loan Systems Primer Questions??? 61