A school has a student who completes the fall term on December 6 and does not enroll in any subsequent term. The student applies for graduation after the end of the term. In February, the school determines the student met all graduate requirements and assigns a graduation date of December 7. What is the correct effective date that should be reported for the change to a graduate status and what is timely reporting based upon?
The student should be reported as withdrawn or “W” before the end of the term if there was no indication the student would be re-enrolling and then the status changed to graduated or “G” once any graduation audit or confirmation were complete. The U.S. Department of Education (ED) confirmed, there is no time limit on a “G” retroactively protecting subsidy. As long as the school also reported a “W” effective not after the end of the last SULA loan period, the later “G” will protect the loans. The NSLDS team put that change in early last year to protect loans as of the “W” effective date if the “W” is followed by a “G”. This is to keep schools from having to force a backdate of a “G” effective date. The key is to ensure the “W” is reported first and the effective date of the “W” which should not be after the end of the loan period.
Publication Date: 8/29/2016