11-16: Increased Postscreening Volumes due to COD System Changes for 150% Direct Subsidized Loan Limit Implemented on October 28-30, 2016

Posted Date: November 16, 2016

Author:  Sue O'Flaherty, Service Director, Program Management, Federal Student Aid

Subject: Increased Postscreening Volumes due to COD System Changes for 150% Direct Subsidized Loan Limit Implemented on October 28-30, 2016

In two recent announcements posted to the Information for Financial Aid Professionals (IFAP) website, we provided implementation information for additional Common Origination and Disbursement (COD) System functionality to support processing for the 2016-2017 Award Year. The first announcement explained the COD System changes specific to the 150% Direct Subsidized Loan Limit calculations that were implemented during the period of October 28-30, 2016. The second announcement explained other COD System changes that were also implemented at that time.

As described in the previous announcements, we made changes to the 150% Subsidized Loan Limit calculations to improve processing and the accuracy of the calculations. Generally, the changes will have a positive impact on borrowers’ eligibility for Direct Subsidized Loans. To ensure borrower eligibility is reflective of the most current Subsidized Usage information, we recalculated Subsidized Usage for existing Direct Subsidized Loans, and we sent system-generated SULA Calculation (CRSU) responses with that updated Subsidized Usage information to schools the week of October 31, 2016.

The updated calculations trigger several additional processes that generate Subsidized Usage information back to schools. Accordingly, in the coming weeks schools may see increased activity in other ways as explained below. Many schools may have already reviewed borrower eligibility using the information in the CRSU responses from the COD System. Schools can determine if additional action is needed based on their current business practices.

National Student Loan Data System (NSLDS®) Postscreening and Updated Institutional Student Information Records (ISIRs) – As part of day-to-day processing, when Subsidized Usage information changes on Direct Subsidized Loan awards, the updated information is passed from the COD System to NSLDS. NSLDS performs postscreening on the updated information and if a change in the student’s eligibility results, an updated ISIR is generated and sent to the school. Given the larger volume of borrowers with updated calculations, schools may already have received and will continue to receive an increased number of updated ISIRs resulting from the additional NSLDS postscreening. Schools can identify the updated ISIRs by reviewing the records for the following identifiers and data element values:

  • The ISIRs are sent under the IGSG17OP and IGSG18OP message classes.

  • The Transaction Data Source/Type Code equals 5N (NSLDS Postscreening).

  • The ISIRs include an NSLDS Postscreening Reason Code of "27".

  • The ISIRs include SAR comment code 004.

  • The NSLDS Postscreening Reason Code field displays "Other" on the FAA Info page in Student Inquiry on the FAA Access to CPS Online website.

Student Aid Reports (SARs) – Similar to the resulting ISIRs, updated SARs will be produced and sent to borrowers. The SARs include SAR comment code 004, which states “This SAR has been produced due to a change in your financial aid history information in the National Student Loan Data System (NSLDS) that may affect your eligibility for federal student aid.” Schools may see an increase in questions from borrowers who receive an updated SAR.

Contact Information

For questions about the COD System implementation or the system changes explained in the earlier announcements, contact the COD School Relations Center at 800/848-0978. You may also email CODSupport@ed.gov.

For questions about NSLDS postscreening, contact the NSLDS Customer Support Center at 800/999-8219. You may also email nslds@ed.gov.

 

Publication Date: 11/16/2016


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