• DL Transition Check List Developed by NASFAA and the U.S. Department of Education (PDF)

NASFAA has been advocating for alternatives to abruptly ending FFELP, but there is no guaranty that institutions will be able to make FFELP student loans after July 2010. NASFAA encourages all institutions to prepare to make loans through the Direct Loan program so you can continue to provide seamless access to student loans no matter what happens to FFELP.

Setting Up Your School for Direct Loans

E-mail a request to the COD School Relations Center (CODSupport@acs-inc.com) with "Request to Participate in the Direct Loan Program" in the subject line of the e-mail. The e-mail should include:

1. Name of your school
2. Address including city, state, and zip code
3. Person requesting participation (Financial Aid Director or an official listed on the E-App is preferred)
4. E-mail and phone number of the official
5. OPE ID
6. DUNS Number (if known)
7. Award Year that processing will begin

The COD School Relations Center will issue an automated tracking number and you will receive a participation acknowledgement e-mail that includes your school's Direct Loan code.

COD Web Site Access

To view or process Direct Loan data on the COD Web site, you must have an authorized COD user ID and password. If you already have valid COD user ID and password you do NOT need to request a separate one for Direct Loans. To obtain access to the COD Web site, a school must designate a School Security Administrator who is responsible for establishing other users and associated procedures. More information about the School Security Administrator is available on the Department's Web site. Third-party servicers can also obtain access to the COD Web site by referring to directions on the Department's Web site.

G5 Bank Account Information

G5 is the Department of Education's payment system, and all schools receive Title IV funding through G5. To receive Direct Loan funds, a school must review its bank account information in G5 or provide new information.

• Schools with a single bank account for Title IV funds that plan to use the same account for Direct Loans don't need to take any further action.

• Schools with more than one bank account for Title IV funds must contact G5 (1-888-336-8930) to designate the specific account that will be used for Direct Loan funds.

• Schools that want to use a new bank account for Direct Loan funds must mail a new direct deposit form (Form SF1199A) to G5 at:

  U.S. Department of Education
  Financial Management Operations
  400 Maryland Avenue, SW, RM 4C137
  Washington, DC 20202-4328

Information about establishing banking can be found in the Banking section of the FAQs on the G5 Web site.

G5 Access

You must have an authorized G5 user ID and password to access G5.

• Schools with a valid G5 user ID and password do NOT need to request a separate one for Direct Loans.

• School without a G5 user ID and password must submit a completed G5 Users Authorization Form -- available on the G5 Web site.

More information is on the G5 G5 Web site or by calling the G5 Hotline at 1-888-336-8930.

Direct Loan Servicing Report Setup

The Direct Loan Servicing System can generate several reports for schoos and send them to the school's SAIG mailbox. You can set up report options through the Direct Loan Servicing Online School Site.

Other Helpful Actions

Learn how to use the COD Web site by completing the COD computer-based training (CBT).

Sign up for the Direct Loan listserv. The Direct Loan Division uses this read-only listserv to send important information, reminders of key dates, and updates on processing issues. Send an e-mail request to be added to the listserv with your name, school, and complete e-mail address to dlops@ed.gov.

Review your settings on the "Subscription Options" page on the IFAP Web site in order to receive notification of all Direct Loan-related guidance and communications.

Direct Loan Servicing and Consolidation

Establish contact with the school's primary customer service representative (CSR) at the COD School Relations Center at 800/848-0978 or CODSupport@acs-inc.com. Your CSR can assist you with:

• Updating current Direct Loan contact information
• Selecting Direct Loan Report Options
• Signing up to receive Direct Loan bulletins via e-mail

Schools with Additional Locations

Each location will need to be set up before processing can begin for that location. Schools that plan to have any additional locations originate Direct Loans separately from the main campus will need to have seperate OPE IDs and unique DUNS Numbers for each location.

Resources

About the Department's Efforts to Ease Schools' Transition into Direct Lending

National Direct Student Loan Coalition

Resources from the National Direct Student Loan Coalition (PDF)

• Direct Loan Set-Up Brochure with Checklist (PDF)
• A List of Direct Loan Mentors Who Will Help You
• A Sample Announcement to Notify Students and Families (MS Word)

Department of Education's Steps to Participating in the Direct Loan Program

Department of Education Direct Loan Bulletins

Tracking legislation that would eliminate FFELP