Posted Date: February 7, 2017
|Author:||Sue O'Flaherty, Service Director, Program Management, Federal Student Aid|
Subject: Direct Loan Closeout Information for 2015-2016 Program Year
The Direct Loan closeout deadline for the 2015-2016 Program Year is Monday, July 31, 2017. This is the last processing day of the program year, so 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.
Note: 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 should contact the Common Origination and Disbursement (COD) School Relations Center at the number provided below for further assistance. Once the closeout deadline has passed, requests may be made directly through 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. In other words, 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.
To be considered successfully closed out, a school must—
As part of the closeout process, we will send ongoing notices via Zero Balance or Remaining Balance emails. In addition, we will distribute a Notification/Warning Letter via email to schools in early May 2017. This letter will go to the Financial Aid Administrator and President at each school that has not confirmed closeout on the COD Web Site (including any schools with a zero balance that have not confirmed closeout). It will serve as a reminder to finish processing and confirm closeout before the final deadline. After the closeout deadline, schools with remaining balances will be billed.
A school must be aware of its closeout status even if its Direct Loan processing is handled by a third party servicer. We encourage each school to communicate regularly with its third party servicer to ensure closeout is completed. It is the school’s responsibility to ensure that it finishes processing and confirms closeout on time.
A key factor to an easy reconciliation and closeout is staying on top of the process. We encourage schools to review the following information:
There are numerous tools available to assist schools in reconciliation and closeout efforts. These tools are as follows:
We appreciate your cooperation as we work to close out the 2015-2016 Direct Loan Program Year. If you have questions about this announcement or need assistance with closeout, contact the COD School Relations Center at 800/848-0978. You may also email CODSupport@ed.gov.
Publication Date: 2/7/2017