Direct Lending and ISRS September 29, 2010

Agenda Certification of Direct Loans FA1121CF Loan Certification Download Returning or Canceling Loans - ISRS and EdExpress entries needed MPN Load and Entrance Counseling Load - changes to error message and SSN check Questions

Loan Certification Errors FATAL: Error Writing FA_LOAN_FUNDS records Resolution: Make sure there are not multiple active MPN records on the FA0234UG screen or Review for proration and indicate on the FA0170UG screen or Change the Proration to Manually Reviewed and Adjusted.

Loan Certification Errors FATAL: Loan cert amount < $100 Resolution: Check the aggregate amounts on the FA0016UG and what is on the Certification Printout. The student may have loans at another MnSCU Institution for the same award year. One place to check is the FA0110UG screen. Does the student have remaining eligibility at your college?

Loan Certification Errors FATAL: Unmet need greater than $200 This fatal error is to ensure that the student receives their full sub loan as required by Federal Regulations. Resolutions: The system assumes there is sub eligibility remaining. If you have verified there is no more eligibility for the term or award year, you have a number of options. If a loan has been was packaged for fall and spring, the loan, in most instances, should be certified in the same manner. The student must receive their maximum eligibility for sub loans prior to certifying any unsub loans.

Loan Certification Errors FATAL: Unmet need greater than $200 Option 1. Enter a Subsidized Award amount on the FA0158UG Transfer Award screen. You can use 91017765 for the ID which is Other Minn. for a specific term, (i.e. Fall). Option 2. Enter an Estimated Subsidized Award on the FA0106UG screen to fulfill the annual limit. Option 3. Enter an Local Need Based Estimated Award on the FA0106UG screen.

Loan Certification Errors FATAL: Unmet need greater than $200 Option 4. If certifying a loan and the student has another award, for instance a Third Party Award for Fall Term, and assuming there will be one for Spring, make sure there is an estimated award for Spring on the FA0106UG screen.

Loan Certification Errors NOTE: No matter which option you choose, make sure you document what you have done using the FA0037UG FA Comments screen. If you have entered a transfer award on the FA0158UG screen or an estimated loan/award on the FA0106UG screen, make sure you delete it after you have certified the loan.

FA1121CF Loan Certification Download ERROR MESSAGE- No NSLDS record. This may occur, if there is a legal name change that has been made in ISRS, but has not been updated in NSLDS. Resolution: Verify the data on NSLDS or Change the NSLDS match record from a “7” to a “1” on the FA0006UG screen or Add in NSLDS records on the FA0213UG screen if student has had prior student loans.

FA1121CF Loan Certification Download This process does only a small amount of editing. If there is a bad or incomplete permanent address, the diagnostic report will indicate this. (Examples, such as zip code, Canadian/foreign address, or permanent address that has been end dated.) The address needs to be corrected. NOTE: It is automatically set up to pull the permanent address for the students as Direct Loan Servicing does not want campus address/local addresses. The loan status does not need to be updated as the next transmission will pick up the loan again.

Loan Certification Errors Questions?

Direct Loan Tip The effective date on the FA0198UG Disbursement screen is the date that the Aid Applied Process will use to pay the student. Changing the date on the FA0106UG Award screen will not work as it is not used for Aid Applied of Direct Loans. NOTE: There have been instances where you are not allowed to change the date on the FA0198UG screen. Development is working to fix that as soon as possible.

Direct Loan Tip Whenever importing files into EdExpress through an ISRS process or COD Acknowledgement files, be sure to resolve any issues/errors that print on the reports.

Canceling a DL with NO Disb When you are canceling a loan totally and loan funds have not been paid, add a disbursement status record and enter code 90 - Canceled not processed by Aid Applied on the FA0198UG FA Loan Disbursement Maintenance screen. Caution: Remember to cancel each disbursement for the loan you are canceling. If the disbursement is not canceled, Aid Applied would pay the loan and it would then need to be repaid by the student.

Canceling a DL with NO Disb A popup screen will appear with the above message, click on Yes. The Loan Status on the FA0170UG will be automatically updated to a 90 Status when you click on Yes. Go to the FA0106UG Award Screen and make sure the Loan is canceled there as well. NOTE: A corresponding entry must be made in EdExpress by entering zero for the loan amount on the origination tab and storing it. The disbursement(s) will then be updated to zero automatically at the time it is stored.

Canceling a DL with NO Disb Note: If a loan is canceled in ISRS and in EdExpress (student declined) and then the student requests the loan later, you should create and certify a new loan and transmit it. It is much easier to add a second sequence for the award on the FA0106UG and certify another loan. You then have separate records for the 2nd loan and don't have to worry about making sure that all transactions were changed, etc.

Reduction of a Loan Disbursement Amount with NO Disb Go to the FA0198UG FA Loan Disbursement Maintenance Screen and reduce the Gross Amount. The revised Net Disbursement Amount will adjust accordingly. Save the changes. Go to the FA0170UG screen and adjust the accepted amount to agree with the Gross Amount from the FA0198UG screen. NOTE: Corresponding entries must be made in EdExpress.

Entries in EdExpress For a reduction of a disbursement that has not been paid (such as second disbursement), change the gross amount of the disbursement on the disbursement tab, store the information, and then move to the origination tab to change the Loan Amount Approved. Then save the information.

Entries in EdExpress If one changes the loan amount approved and stores the transaction, check the disbursements as they will be adjusted automatically to even disbursement amounts. But, if an adjustment is being done only for the last disbursement, double check to be sure that the process did not change the amount of the disbursements. After both the origination and disbursement records have been changed, close the student’s file. When other adjustments have been made, it is important to go to “Export” a file, and create the file with the changes – always create only direct loan records. The export file then needs to be sent to COD using EdConnect.

Reduction of a Direct Loan Disbursement Go to the FA0198UG FA Loan Disbursement Maintenance Screen – After the initial disbursement has been made and a reduction is being done to reflect an over award or the student’s choice, etc., the Net Return Amount should be entered along with the appropriate reason for the reduction. Double clicking on the reason field will identify the values available. Once the net return amount is entered, the adjusted gross amount (this amount will also be reflected on the FA0170UG screen) will reflect the change as well as the disbursement status will change to 41 (or 42, 43, etc. according the sequence numbers of the reductions). Save the changes. See Next Slide

FA0198UG FA Loan Disbursement Maintenance

Reduction of a Direct Loan Disbursement (cont.) The disbursement status will be read by the aid applied process and will reduce the amount of disbursement accordingly. The disbursement status then changes to “29” again. Then manually add another disbursement status record (30 = reported to COD). Save the changes. Check the FA0106UG screen to make sure the changes appear on that screen. NOTE: Corresponding entries must be made in EdExpress.

Entries in EdExpress 194   See next slide for details.

Entries in EdExpress The ISRS changes are to be reflected in EdExpress loan records. Enter the social security number to select the appropriate direct loan (Award ID: 10043 Loan #01 and disbursement term-20095 and number-02). See example where the original “net disbursement amt” is listed as $1,229.00 – net return amount $1,035.00 = net disbursement amount of $194. Click on the disbursement tab to reduce the net disbursement amount. Enter Disbursement #2, Disbursement Type = A or N, and Disbursement Amount = 194. Once this has been done, save the record and it will be flagged as a record ready to be sent to COD.

Entries in EdExpress Note: The Reduction of the Loan Disbursement must be done and stored prior to adjusting the loan amount approved on the origination tab. See next slide for details.

Entries in EdExpress NOTE: The “adjusted amount” now shows $1035.00, which equals the amount of the net return amount on the FA0198 record, and the status is “R” ready for reporting. To reflect the reduction of total loan, then click on the origination tab to reduce the Loan Amount Approved = Gross Amount is $1429 and store that record. NOTE: Disbursement entries in the two systems are just the opposite, which is ISRS = amount of the reduction and EdExpress = net disbursement amount.  

Reduction of a Loan Disbursment Amount in EdExpress Question-When making a reduction to the Fall Disbursement, can you also reduce the spring disbursement even though it has not been disbursed. Answer-Yes, make the fall adjustment, store, and then you can reduce the spring gross amount and store. Once that has been completed, then go to the origination tab and change the loan approved amount to agree with the total of the loan. Save the changes. Remember to make corresponding entries in ISRS on the FA0198UG screen.

Questions?

MPN Load FA0235UG MPN Load screen-Modified so Transfer and Load are done at the same time. The process is now the same as the FA0265UG Entrance Counseling Transfer. Reminder: Make sure you have conditions set up for all Direct Loan award ID’s on the FA0152UG screen. DL Plus(Parents) - Condition 0139 Perkins - - - - - - - - Condition 0128 10217 DL Grad Plus - - - - Condition 0138

Multiple MPN Issue PROBLEM: Students are not notified if they attempt to do an new eMPN and one already exists. If a student completed an MPN while attending a different college and they complete one for your college as well, the MPN process does not link to the new MPN, the origination loan record will link to the original MPN, which has not expired. The second MPN will be listed as an Unlinked MPN on the 30 Day Warning Report from COD.

MPN and Entrance Counseling Load Some minor changes have been made to the MPN Load and the Entrance Counseling Load and will be released on October 7th, 2010. ERROR: Invalid SSN, student exists multiple times at this RC_ID—This message will only display if the SSN exists multiple times at your college and duplicate resolution is needed.

Entrance Counseling Load FA0265UG This transfer can only be used with files named crecmyop. NOTE: Entrance Counseling files named decfenop must be loaded using the FA0442CB report process.

Direct Lending Reconciliation Session WebEx will be October 6th at 10:30 am

Contact the ISRS Help Desk at 1-877-466-6728 Or 1-877-GO MNSCU Questions Contact the ISRS Help Desk at 1-877-466-6728 Or 1-877-GO MNSCU