Jean Balcer Financial Aid Processing Coordinator Davenport University

Default information on ISIR & NSLDS Academic Year on NSLDS How to find repayment codes SULA Information Try to identify capitalized interest Discuss the reaffirmation process

When a student is in default, on their ISIR there is a SAR code for each servicer they are in default with. There is not a C code associated with this SAR code, you the schools will not see this code. Example: SAR code 181 = Default Resolution Group (GA 611); SAR code 207 = Great Lakes Educational Loan Services (GA 727) Viewing NSLDS loan history, you can identify which servicer they are in default with. Student must receive default clearance letter from each servicer before regaining Title IV eligibility.

Common issue: the student consolidates all loans to get out of default, but the defaulted loans are not fully paid in full. If the principal balance is greater than $25 per loan, Debt Management and Collections will not update the loan as paid in full. The loan is considered underfunded. The student has to contact Direct Consolidation to have them either send another payment or the student has to pay the remaining principal balance.

You can now view the student’s Academic Year(AY) on NSLDS. After pulling up a student’s Loan history, click on the Loan Detail tab.

The academic year is useful when determining if a student has overlapping academic years when they are transferring mid-year.

To determine what repayment type a student is in, bring up a student’s loan history. Then click on Loan Detail tab for any loan. Scroll down to section “Activities for Loan.” This section will show deferment dates, repayment plan and forbearance information. If you click on the “?” in this section, it will give you the list of all the repayment codes. For example: SF = standard repayment, P1 = Pay as you Earn – No Partial Financial Hardship.

Each sub loan is individually flagged.

Click on Subsidized Usage button

Per NSLDS Newsletter (#46): Web site now displays a new warning icon for borrowers who have, because of the 150% Direct Subsidized Loan Limit, lost interest subsidy on one or more Direct Stafford Subsidized (SULA Eligible) (D0) and/or Direct Consolidation Subsidized (SULA Eligible) (D9) loans. The following icon will display on the Loan History, Grant History, Overpayment History, and Overpayment List pages. It will also display on the Student Access Interface page.

Loss of Subsidy Field A new field called “Loss of Sub” has been added to the Loan Summary for Direct Stafford Subsidized (SULA Eligible) (D0) and Direct Consolidation Subsidized (SULA Eligible) (D9) loans. This field will only appear for loans which have lost their interest subsidy. In all other cases, this field will not appear.

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 the 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.

You can also look at the 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 the aggregate limits.

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.

As of 1/20/2010

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. Effective end of December 2014, NSLDS will now flag a student as exceeding loan limits if the overaward is greater than $ This a change from the previous amount of $ Beginning of January 2015 CPS did an ISIR push with this update.

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

New for 2015/2016, there are two new SAR codes 392 for graduate loans and 393 for undergraduate loans. From SAR Comment Codes and Text: “However, if there is a value of “R” in the NSLDS Graduate Subsidized Loan Limit Flag field or the NSLDS Graduate Combined Loan Limit field on the ISIR, the school must review the student’s entire NSLDS loan record to determine if that “R” value is shown on the loan or loans that resulted in the excess borrowing. If so, the student regains eligibility to participate in the federal student aid programs.”

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.

NSLDS Customer Support Center Phone: Toll: Fax: Web:

Any examples you would like work through?

Jean Balcer Davenport University Financial Aid Processing Loan Coordinator