1. Session C-17 National Student Loan Database System- NSLDS Aggregate Calculations Brenda Seidel U.S. Department of Education Jim Yoder Vangent The PDF embedded document is the NSLDS Aggregate Calculations Participant Workbook used by participants in this session. It also contains a blank Aggregate Worksheet for FAAs to use when hand calculating consolidation loans. To view each Adobe Acrobat Document embedded in the various slides that follow, escape out of presentation mode and double click the Adobe Acrobat Document:

2. 2 Objectives Understand aggregate loan terms Identify loan types that impact aggregate limit calculations Hand calculate aggregates using NSLDS methodology

3. 3 Defining & Using Aggregates NSLDS Loan Terms –Outstanding Principal Balance (OPB) –Aggregate amounts Aggregate Loan Information Loan Level Aggregate Principal Balance –Net Loan Amount Loan Amount less Cancellations and Refunds Why are NSLDS Aggregate amounts used?

4. 4 NSLDS Aggregate Totals Calculation Process

5. 5 Calculate Each Loan Type’s Loan Level Aggregate OPB NSLDS reviews loans in student’s financial aid history Categorizes each loan into respective loan type (e.g., Sub or Unsub)

6. 6 Calculate Each Loan Type’s Loan Level Aggregate OPB, cont. Three main loan groupings: –Recent loans –Older loans –Consolidation Loans

7. 7 Recent Loans May have adjustments not yet posted May have additional disbursements or adjustments not yet reported to NSLDS Included at end of calculation as Pending Disbursements

8. 8 Recent Loans, cont. Recent loans Period End Date Loan Period End Date plus 90 days has not yet passed Loan StatusIA, ID, IG, IM Aggregate Outstanding Principal Balance (Agg. OPB) Greater of –OPB, or –Disbursed Amount Not to exceed Net Loan Amount Pending Disbursement Net Loan Amount less reported amounts (Total Disb or OPB)

9. 9 Components of Recent Loans Pending Disbursement Amount = Net Loan Amount – Disbursement Amount Loan Status (“in school”) Loan Period End Date + 90 Days has not passed Greater of: Disbursement Amount or OPB

10. 10 Hand Calc a Recent Loan Review Student’s FAH Exercise #1 Determine Recent Loans Agg OPB and Pending Disbursements: 1) Find the recent loan and determine the Agg OPB. Fill in section A of the worksheet. 2) Determine the recent loans pending disbursements and fill in section B of the worksheet.

11. 11 Older Loans Included in Aggregate OPB calculations Older loans Period End Date90 days or older Loan Status “Open” Loan Status (i.e. OPB>0) Aggregate Outstanding Principal Balance (Agg. OPB) Lesser of –Net Loan Amount, or –Disbursed Amount, or –OPB If all are greater than zero

12. 12 Components of Older Loans Loan Status Loan Period End Date + 90 days have passed Lesser of: Disbursement Amount, OPB or Net Loan Amount

13. 13 Hand Calc an Older Loan Review Student’s FAH Exercise #2 Determine Older Loan’s Agg OPB: 1) Find the older loan and determine the Agg OPB. Fill in section C of the worksheet.

14. 14 Consolidation Loans (CL) & Aggregate OPB Process to determine impact of CL on Aggregate OPB: A. Identify underlying loans B. Determine number of CLs & Totals C. Determine Calculated Agg. OPBs D. Determine CL’s Unallocated Agg. OPB E. Calculate CL’s Combined Loans Agg. OPB

15. 15 Identify CL’s Underlying Loans Step 1: Determine Loan Status Loan Status is one of these:  PC  PN  DN  DP  PF Step 2: Determine Loan Status Date Loan Status Date: ________ Is Loan Status Date within 210 days (before or after) Consolidation Loan Date?  Yes  No Step 3: Underlying Loan? If Loan Status is one listed in Step 1 and the answer to Step 2 is Yes, then loan is underlying loan.

16. 16 Identify Underlying Loans Review Student’s FAH Exercise #3 Identify the underlying loans: 1) Find the consolidation loan’s underlying loans and fill in section E of the worksheet. Enter the underlying loan number and its corresponding disbursement amount.

17. 17 Consolidation Loans (CL) & Aggregate OPB Process to determine impact of CL on Aggregate OPB: B. Determine number of CLs & Total Amounts

18. 18 Determine Calculated Agg. OPBs Why is the ratio (%) important? –NSLDS determines the loan type amounts based on percentages / portions of the overall totals. 47% of the Consolidation loan is the Subsidized portion 35% of Consolidation loan is Unsub portion

19. 19 Determine Calculated Agg. OPBs Calculate ratio for each Loan Type - percentage of CL attributable to Loan Type Sum of CL Disb Amts Sum of Underlying Loans’ Disb Amts Ratio =

20. 20 Example to determine a ratio Determine ratio for subsidized loans Total of underlying Sub Disbursement Amounts = $18,625 Total of CL Disbursement Amounts = $39,000 Ratio = $18625/$39,000 = 0.47756

21. 21 Ratios for Loan Types/Amounts Review Student’s FAH Exercise #4 Determine totals to get your ratios: 1) Determine the totals for the underlying loan disbursements in section E of the worksheet. 2) Fill in the amounts for each consolidation loan in section D of the worksheet, and then total the disbursement amounts. 3) In section F, determine the Subsidized amounts and fill in columns 2 through 4. Do the same for the other loan types in sections G and H.

22. 22 Example of applying ratios Determine ratio for subsidized loans Total of underlying Sub Disbursement Amounts = $18,625 Total of CL Disbursement Amounts = $39,000 Ratio = $18625/$39,000 = 0.47756 Determine Calculated Subsidized Aggregates (Ratio  CL Agg OPB Amount) –Calculated Subsidized Aggregate for CL #4= $8,119 (0.47756  $17,000) –Calculated Subsidized Aggregate for CL #5= $10,506 (0.47756  $22,000)

23. 23 Determine Calculated Agg. OPBs Determine each Loan Type’s Calculated Agg. OPB amount for each CL Aggregate = Ratio  CL Agg. OPB Amt

24. 24 Apply Ratios to Loan Types Review Student’s FAH Exercise #5 Apply the ratios to each loan type: 1) In section F, fill in column 5 then multiple the ratio for each consolidation loan to get their individual Subsidized calculated amounts. Do the same for the other loan types in section G and H. Total each sections calculated amounts.

25. 25 Calculate CL Unallocated Amounts CL Agg. OPB Amt (Older Loan) - Total Perkins Share - Total PLUS Share - Calculated Sub Aggregate OPB - Calculated Unsub Aggregate OPB = Calculated Consolidation, Unallocated Aggregate OPB for CL

26. 26 Aggregate OPB

27. 27 Sum Loan Level Agg. OPBs by Loan Type Collect all loan level Agg. OPB numbers Roll individual calculated numbers into respective loan types

28. 28 Sum Loan Level Agg. OPBs by Loan Type, cont. Add in respective loan type’s pending disbursements Display each loan type’s Aggregate OPB Totals in Aggregate Loan Information section

29. 29 Subsidized Loan Aggregate Calculation Components Subsidized OPB- Loan Types (from Loan Summary- Agg. OPBs)  FFEL Subsidized (SF)  Recent or Older Loans  Direct Stafford Subsidized (D1)  Recent or Older Loans  Direct Consolidation Subsidized (D6)  Calc’d Sub Amounts  FFEL Consolidation (CL)  Calc’d Sub Amounts

30. 30 Unsubsidized Loan Aggregate Calculation Components Unsubsidized OPB- Loan Types (from Loan Summary- Agg. OPBs) FFEL Unsub Supplemental Loan (SL) Older Loans  Federally Insured (FISL) FFEL Refinanced Loan (FI)  Older Loans  Direct Stafford Unsubsidized (D2)  Recent or Older Loans  Direct Consolidation Unsubsidized (D5)  Calc’d Unsub Amounts  FFEL Consolidation (CL)  Calc’d Unsub Amounts

31. 31 Evaluate Totals for Eligibility = +

32. 32 Adding up the Agg. OPBs Review Student’s FAH Exercise #6 Adding up the Agg OPBs to get your Aggregate Totals and compare them to loan limits: 1) Determine the unallocated amounts for each consolidation loan by filling in the totals in section J of the worksheet. 2) Determine Mary’s aggregate total information by filling in the totals in section K of the worksheet. Add up each section’s total amounts, by the respective loan types. 3) Compare the Subsidized and Combined totals to the loan limit chart to determine which two warning icons Mary would receive when displaying her NSLDS Financial Aid History web page.

33. 33 Additional NSLDS Resources NSLDS for Financial Aid Professionals http://nsldsfap.ed.gov Information for Financial Aid Professionals (IFAP) –Dear Colleague Letter GEN-96-13 –Dear Partner Letter GEN-03-12 –NSLDS Newsletters

34. 34 We appreciate your feedback and comments. We can be reached at: NSLDS Customer Service Phone:800-999-8219 Fax:785-838-2154 Web:www.nsldsfap.ed.gov Email:nslds@ed.gov Contact Information