Publication Date:
January 22, 2008
Bulletin ID: DLB-08-04
Summary: Direct Loan
Closeout Information for the 2006-2007 Program Year
Posted on 01-22-2008
Dear
Direct Loan Colleague:
The
closeout deadline for the 2006-2007 Direct Loan Program Year is Thursday,
July 31, 2008. This is the last processing day of the program year,
and, as such, all schools must have an Ending Cash Balance of $0 and Total
Net Unbooked Disbursements of $0, as reflected on the School Account Statement
(SAS) Report. After the closeout deadline, schools with remaining balances
will be billed.
As
part of the closeout process, we will send a Notification/Warning Letter
to schools in May 2008. This
letter will go to all schools that have not closed out on the Common Origination
and Disbursement (COD) System (including any schools with a zero balance).
The letter will be sent to the school's Financial Aid Administrator and
President as a reminder to close out before the final deadline.
A
school must be aware of its closeout status even if its Direct Loan processing
is handled by a third party servicer.
It is the school's responsibility to ensure that
it closes out on time.
If this is the case for your school, please communicate with your third
party servicer to ensure closeout is completed.
As
a reminder, reconciliation is performed on a monthly basis, and the final
closeout stage should begin as of the last loan period end date at your
school for a given program year.
A key factor to an easy reconciliation and closeout is staying on top
of the process. We encourage
your school to complete the following simple steps while reviewing your
school's internal records and the COD System records:
- Ensure that all
drawdowns and refunds of cash are accounted for and applied to the correct
program year.
- Ensure that all
disbursements and adjustments are accurate and have been reported to
and accepted by the COD System.
- Ensure that all
batches have been sent to and accepted by the COD System.
- Ensure that all
unbooked loans are resolved.
- Resolve all outstanding
rejected records.
- Return all refunds
of cash to us according to the guidance provided in DLB-08-01.
There
are numerous tools available to assist schools in reconciliation and closeout
efforts. These tools are
as follows:
- School Account
Statement (SAS) Reports
- 30-Day Warning
Reports
- G5 Web Site and
Reports
- COD Web Site (particularly
the Funding Information screen)
- DL Tools/SAS Compare
Program
- Customer Service
Representative/Reconciliation Specialist Assistance
We
appreciate your cooperation as we work to close out the 2006-2007 Direct
Loan Program Year. If you
have questions about this bulletin or need assistance with closeout, please
contact the COD School Relations Center at 800/848-0978 or by e-mail to
CODSupport@acs-inc.com.
Thank
you for your ongoing partnership in the Direct Loan Program.
Sincerely,
William
Leith
Acting
General Manager, Application, Operations and Delivery Services
Posted 01/23/08 to www.NASFAA.org. Please submit Web Site questions or comments to Web@NASFAA.org
