Posted Date: May 5, 2016
|Author:||Sue O'Flaherty, Service Director, Program Management, Federal Student Aid|
Subject: Record Submission Due Date for 2014-2015 Direct Loan Program Year Closeout
We previously informed you in a February 5, 2016 Electronic Announcement that the closeout deadline for the 2014-2015 Direct Loan Program Year is Friday, July 29, 2016. This is the last processing day before the end of the program year. All school data must be received and accepted by this date to be included in a school's final Ending Cash Balance for the year.
To be considered successfully closed out, the school must—
Reconcile to an Ending Cash Balance of $0 and Total Net Unbooked Disbursements of $0, as reflected on your monthly School Account Statement (SAS) Report and in your school’s internal records; and
Complete the Balance Confirmation form on the Common Origination and Disbursement (COD) Web site. The Balance Confirmation form can be completed after the school has reconciled to a $0 balance and has received a Zero Balance Letter, which is sent to the school via e-mail (default format) or paper (if email address is invalid/unavailable). Once the letter is received, the school should log in to the COD Web site. Click on the Balance Confirmation link from the School options menu on the left-hand side of the page, and follow the instructions on the Balance Confirmation screen.
To meet the closeout deadline, all records must be submitted to the COD System no later than 8:00 P.M. (ET) on Friday, July 29, 2016. After this deadline, Direct Loan records will not be accepted by the COD System and you will no longer have Direct Loan funds available to draw down for the 2014-2015 Award Year. In other words, a school’s Net Authorizations/Current Funding Level in G5 and the COD System will be reduced to the level of Net Drawdowns, resulting in a $0 Available Balance in both systems.
All records submitted prior to the closeout deadline must be accepted by the COD System to be included in a school's final Ending Cash Balance for 2014-2015. Also, refunds of cash transactions can take 7-9 days to process from G5 to the COD System to be included in your school’s balance. Please plan accordingly to allow ample time for refunds of cash to be included in your final Ending Cash Balance prior to the deadline.
Note: Direct Loan funds are school, program, and award-year specific.
Exceptions to the last processing day of the program year may be made on a case-by-case basis, if the school’s processing period extends beyond the closeout deadline. Schools falling within this category must contact the COD School Relations Center at the number provided below for further assistance. Once the closeout deadline has passed, requests for extensions may be made via the COD Web site.
As a reminder, all cash management, disbursement reporting, and monthly reconciliation regulatory requirements supersede the closeout deadline. If a school is meeting these regulatory requirements, the final closeout stage should begin no later than the last award end date at the school for a given program and year. A school should be able to reconcile to a zero Ending Cash Balance and close out soon after its final disbursements and should not wait until the closeout deadline.
For additional Direct Loan Closeout information for the 2014-2015 program year, schools can refer to the February 5, 2016 Electronic Announcement.
We appreciate your cooperation as we work to close out the 2014-2015 Direct Loan Program Year. If you have questions about this announcement, need assistance with closeout, or have any special processing considerations that will prevent your school from meeting the closeout deadline, contact the COD School Relations Center at 800/848-0978. You may also e-mail CODSupport@ed.gov.
Publication Date: 5/5/2016