2. Session 42 Direct Loan Funding and Cash Management A-Z George Karayianis Tremayne Cobb

3. 2 Session Overview Funding Process Overview Funding Methods Using GAPS Hands-On Exercise

4. 3 “How do schools get their $Money$?” Funding Process Overview

5. 4 Funding Delivery Methods Advanced Funds/School- Initiated Drawdowns Pushed Cash/System- Initiated Drawdowns

6. 5 Advanced Funds/School-Initiated Drawdowns School receives an initial CFL. School draws down cash via the GAPS Web site. School sends in disbursement records to substantiate cash received. COD sends CFL increases to GAPS so school can continue to drawdown funds as needed.

7. 6 Funding Flow - Advanced Funds SCHOOL GAPS COD Batches CFL/authorization

8. 7 Pushed Cash/System-Initiated Drawdowns COD initiates drawdown requests and cash is deposited in a school’s bank account based on disbursements accepted and posted by COD. Schools must have an accepted origination record and MPN on file before an actual disbursement is accepted and cash is pushed to a school.

9. 8 Funding Flow - Pushed Cash SCHOOL GAPS COD Batches CFL/authorization and drawdown request

10. 9 Ex: Funded Disbursement Listing Run Date: 11/2/06 US Department of Education Page: 1 Federal Direct Loan Program Funded Disbursement Listing Report For Loans to be Funded by: 11/1/06 For Academic Year 2006-2007 School: George’s Hair Salon School Code: G11111 13 Maple Pl. Washington, DC 20202 Student Loan ID Disb Date Gross Fee Rebate Net Amt. Sally Mae 233234454S07G11111001 11/2/03 $2,500 -$100 $38 $2,438 Jerry Jones 212121233S07G11111001 10/28/03 $2,383 -$95 $36 $2,324 Marcy Kay 887890766U07G11111001 11/5/03 $2,000 -$80 $30 $1,950 -------------------- Total School Amount $6,712

11. 10 Monitoring Statuses Cash Monitoring 1 (HCM1) –Funding method can be Advanced Funds or Pushed Cash Cash Monitoring 1 (HCM2) and Reimbursement –Funding method is Pushed Cash –Required to have a signed MPN on file and accepted origination record before COD will accept actual disbursement

12. 11 Cash Management Requirements 30-Day Reporting Requirement –685.301(d) Direct Loan 3-Day Cash Rule –668.162(b) Monthly Reconciliation –685.102(b) Direct Loan

13. 12 Reconciliation and Closeout

14. 13 Direct Loan Reconciliation versus End-of- Year Closeout Monthly Reconciliation –Compare your records with the Dept’s to identify and resolve outstanding discrepancies. Closeout –Net Accepted and Posted –Disbursements =GAPS net cash –Ending Cash Balance (ECB) = 0

15. 14 COD and GAPS Tools to help reconcile Direct Loans COD Funding Web screens Reports (COD) GAPS

16. 15 School Funding Info Web Screen School of Outstanding Students Funding Info Program Direct LoanAward Year 06-07 Entity ID44544444 Initial CFL$56,000 Current CFL$200,000 Available Balance$15,000 Cash > Net Accepted & Posted Disbursements$0 Net Accepted & Posted Disbursements$185,000 Net Drawdowns$185,000 Disbursement To Drawdown Ratio1.0000

17. 16 Cash Activity Screen School of Outstanding Students Program Direct LoanAward Year 06-07 Net Draws $30,000 Cash > Accepted & Posted Disbursements & older than 30 days $0 Totals Date of Transaction10/23/06 Time1:35PM Drawdowns$30,000 $2,000 Drawdown adjustments$0 Refunds$1,000 Returns$0 Days for On-time reporting Payment Control Number 2006102321221 Accepted & Posted Disbursements Applied$20,000 $0 Cash > Accepted & Posted Disbursements$10,000 Source SystemGAPS

18. 17 The Department of Education’s Grant Administration and Payment System (GAPS)

19. 18 E-Payments Web site (http://e-grants.ed.gov)

20. 19 Logon to GAPS ed101 *******

21. 20 Main Menu School of Outstanding Students 100 Student Way Bookville, AZ 22222 Please select one of the following options: Payment Requests Reports Refunds Password Maintenance User’s Guide Select New Payee Help Exit Select “Payment Requests” from Main Menu Payment Requests

22. 21 Select “Create Direct Loan Payment Requests” from Payment Requests Menu Create Payment Requests Modify Payment Requests View Payment Requests Adjust Drawdown Amounts View Authorization History Create Direct Loan Payment Requests Modify Direct Loan Payment Requests View Direct Loan Payment Requests Adjust Direct Loan Drawdown Amounts

23. 22 Enter Payment Amount Document NumberSchoolYear Recipient Reference Last Date to Draw Funds Request Amt P268k059999School of Outstanding Students2005ABC17/31/2006 P268k069999School of Outstanding Students2006ABC27/31/2007 P268k079999School of Outstanding Students2007ABC37/31/2008 Sort: ● Document No. ● School ● Recipient ReferenceSchool of Outstanding Students 100 Student Way Bookville, AZ 22222 Payee DUNS: 111111111Pay by: ACHDeposit Date (MM/DD/YYYY 10/19/2006 Direct Loan Payment Requests (Create) You have to save your work 2:02 Return to Payment Requests Menu Exit

24. 23 Electronic Refunds Main Menu School of Outstanding Students 100 Student Way Bookville, AZ 22222 Please select one of the following options: Payment Requests Reports Refunds Password Maintenance User’s Guide Select New Payee Help Exit Refunds

25. 24 Check “refunds to open awards” and “initiate refunds” Refunds Menu School of Outstanding Students 100 Student Way Bookville, AZ 22222 Please select one of the following options:  Refunds to Open Awards  Perkins  Interest  Refunds to Closed Awards Initiate Refund Bank Account Maintenance Refunds Report Initiate Refunds X

26. 25 Awards and net draws will be displayed PR Award NumberNet DrawsRefund AmountAccount Name P268k059999$23,000$ School Refund Account A P268k069999$18,000$ School Refund Account A School Refund Account A P268k079999$3,000$ School Refund Account A Refunds to Open Awards Please note --- your session will be timed out after 10 minutes of inactivity. Any button click will reset the inactivity timer. DUNS Number: 111111111

27. 26 Enter the amount(s) to be refunded PR Award NumberNet DrawsRefund AmountAccount Name P268k059999$23,000$ School Refund Account A P268k069999$18,000$ School Refund Account A School Refund Account A P268k079999$3,000$ School Refund Account A Refunds to Open Awards Please note --- your session will be timed out after 10 minutes of inactivity. Any button click will reset the inactivity timer. DUNS Number: 111111111 100.00 ContinueCancel

28. 27 Refund Confirmation P268k079999$3,000$1,293School Refund Account A20061018R01000 PR Award Net Draws Refund Amt Account Name Confirmation Number Comments Grand Total: $1,293 Settlement Date: 10/20/2006 NOTE: It will take two days before refund is posted to GAPS Refunds to Open Awards Confirmation DUNS Number: 111111111 FirstPrevious P268k059999 – P268k079999 NextLast

29. 28 Drawdown Adjustments Can’t move more than has been drawn Net adjustment must equal zero Do not use adjustments as a substitute for returning excess cash Do not use adjustments to close out a year or bring your school’s cash balance to zero

30. 29 Select “Payment Requests” from Main Menu Main Menu School of Outstanding Students 100 Student Way Bookville, AZ 22222 Please select one of the following options: Payment Requests Reports Refunds Password Maintenance User’s Guide Select New Payee Help Exit Payment Requests

31. 30 Select Adjust Direct Loan Drawdown Amounts Create Payment Requests Modify Payment Requests View Payment Requests Adjust Drawdown Amounts View Authorization History Create Direct Loan Payment Requests Modify Direct Loan Payment Requests View Direct Loan Payment Requests Adjust Direct Loan Drawdown Amounts

32. 31 Adjustments between years and/or campuses SchoolAcademic YearNet DrawsAdjustments School of Outstanding Students - Boston2006$3,000 School of Outstanding Students - Boston2007$5,000 School of Outstanding Students - Dallas2006$4,000 School of Outstanding Students - Dallas2007$10,000 Total$22,000 $0.00 Payee DUNS: 111111111 School of Outstanding Students Bookville, AZ 22222 Direct Loan Drawdown Adjustments Return to Payment Requests Menu Select New Payee OKCancel Exit

33. 32 Enter the amounts to be adjusted and click “OK” SchoolAcademic YearNet DrawsAdjustments School of Outstanding Students - Boston2006$3,000($500) School of Outstanding Students - Boston2007$5,000$1,000 School of Outstanding Students - Dallas2006$4,000$700 School of Outstanding Students - Dallas2007$10,000($1.200) Total$22,000 $0.00 Payee DUNS: 111111111 School of Outstanding Students Bookville, AZ 22222 Direct Loan Drawdown Adjustments Return to Payment Requests Menu Select New Payee OKCancel Exit

34. 33 Adjustment Confirmation SchoolAcademic YearNet DrawsAdjustments School of Outstanding Students - Boston2006$2,500 School of Outstanding Students - Boston2007$6,000 School of Outstanding Students - Dallas2006$4,700 School of Outstanding Students - Dallas2007$8,800 Total$22,000 $0.00 Payee DUNS: 111111111 School of Outstanding Students Bookville, AZ 22222 Direct Loan Drawdown Adjustments Return to Payment Requests Menu Select New Payee Exit The drawdown amounts have been adjusted

35. 34 GAPS Reports Main Menu School of Outstanding Students 100 Student Way Bookville, AZ 22222 Please select one of the following options: Payment Requests Reports Refunds Password Maintenance User’s Guide Select New Payee Help Exit Reports

36. 35 Select “Activity Report” Activity Report Refund Report Award Balances Report Activity Report Reports Menu

37. 36 Activity Report - Selection Screen Payee DUNS111111111 Payee NameSchool of Outstanding Students Award(s) Status● Any ● Open ● Closed Period From Through PR Award Number Select Activity Report (Select) Return to Payment Requests Menu Select New Payee Exit

38. 37 Activity Report - Cumulative Summary Row ID PR Award Number A Cumulative Draws B Cumulative Refunds C Cumulative Returns D Net Adjustments E (A-B-C+D) Net Drawdowns P268k059999$6,000$1,000$0($500)$4.500 P268k069999$7,000$0 $500$7,500 P268k079999$4,000$600$0 $3,400 1 2 3 Cumulative Summary Table From October 2002 Through October 2006 Payee DUNS111111111 Payee NameSchool of Outstanding Students Payee Address100 Student Way Bookville, AZ 22222

39. 38 Activity Report - Record Detail Payee DUNS111111111 Payee NameSchool of Outstanding Students Payee Address100 Student Way Bookville, AZ 22222 DateDrawdownsRefundsReturnsAdjustments 10/16/2006($500) 9/1/2006$2,000 8/18/2006$1,300 7/4/2006$700 Transactions PR Award Number P268k079999 DETAIL TABLE

40. 39 GAPS Access Full Access View Access –Limit 5 user IDs of each access per school Download form from e-payment web site Fax completed form to GAPS –(202-205-0729)

41. 40 GAPS Helpdesk 1-888-336-8930 Helpdesk hours of operation are 8 a.m. to 6 p.m., EST, Monday through Friday.

42. 41 Other Direct Loan Sessions Session 40Hands On Tour of DL Tools Session 41Best Practices in Using DL LSDA Session 43Best Practices for Processing DL at Your School Session 44Direct Loans A – Z Session 45Direct Loans – How to Get Started Session 46What’s New in Direct Loans: Grad PLUS and other HERA Related Changes Session 47Direct Loan Reconciliation and Closeout Session 48Direct Loan Reports & Reference Materials-Tools of the Trade Session 49How Direct Loan Servicing is Improving the Financial Aid Experience for You and Your Students