Direct Lending PHEAA’s FAS Solution Presented by: Jan Napiltonia, AVP Financial Aid Services.

Direct Lending PHEAA’s FAS Solution

Presented by: Jan Napiltonia, AVP Financial Aid Services

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Agenda

• Stakeholders• Key Concepts

– Loan Processing– Creating Origination & Disbursements– Sending O & D on FAS– Adjusting a Disbursement on FAS– Loan Funding

• COD Options• Reconciliation• Reports

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Key Stakeholders

School– Determines eligibility– Originates and Disburses Loans (Certifies)– Confirms

• Entrance counseling• MPN completion• Sends student notification of disbursement• Exit counseling

– Disclosure statements– Reports enrollment status– Default prevention

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Key Stakeholders

USDE• Funding

– G5• Release of funds• Return of funds

• Manages all aspects of loan processing– Approves/Denies– Reporting and reconciliation tools

• At the schools discretion provides facility for: – Electronic MPN– Entrance counseling– Disclosure Statements

• Electronic • Paper

– Exit counseling• NSLDS

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Loan Processing

• Common Record– Student (Demographic) data– Award data– Disbursement data– XML

• Response files– A – Accepted/Approved– R – Rejected– May also contain data on

• MPNs• Credit checks (Plus)

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Creating Award & Disbursement

– Loan Origination (Certification)• Award

– Establishes Loan Award• Disbursement

– False – Pending (Doesn’t affect CFL)– True – Actual

» Substantiates drawdown and can affect CFL» Can be sent within 7 days of the disbursement date

– Two step process if pending disbursement sent first– Disbursement Number– Disbursement Sequence

» Iterations/adjustments» Changes if award amount changes» Doesn’t change if only DRI being changed to ‘True’

– Award & Disbursements are sent together– Total Disbursements must equal the Award amount

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Creating O & D on FAS

• Profile Concept– Pre-populate Award & Disbursement data– Accessed from FACR – F3– Set send indicator based on range of disbursement dates

• Disbursement date with in 7 days And• Disbursement indicator = ‘True’

– Auto update the DRI to ‘True’ & send to COD, if with in 7 days

– Calculate Award Amounts Based on annual limits– Unlimited number

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Creating O & D on FAS – Case Study

Semester-based Academic Calendar

Award=$3500

Disbursement Dates = 09/15/2010 & 01/16/2011

Disbursement Release Indicator (DRI) = False or Pending

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DLIM

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DLIM List

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Award Detail

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PDSB Menu

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PDSB

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Creating O & D on FAS - Case Study

Disbursement Detail

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Sending O & D on FAS

• Disbursements are created as ‘Pending’ awards. DRI=F • Pending awards are not automatically sent to COD• Transmit Indicator must be updated to send Pending

disbursements.• Options to send Pending awards

– Update from the disbursement list, page by page– Set indicator on Master profile to ‘auto update DRI’. The system

will update all Pending indicators to True (Actual) if it is within 7 days of the disbursement date and transmit them to COD

– AWDC Mass update of Direct Loans– A mass update of the transmit indicator will be added to

disbursement list

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Sending Actual Disbursements on FAS – Case Study

• When an accepted response is returned for ‘pending’ disbursements, FAS will automatically create new disbursements with DRI=‘F’ in anticipation of sending ‘actual’ disbursements

Award = $3500 Initial Pending disbursement submission

DRI set to ‘False’ on both Disbursements Disb # 1/Seq #1 $1750.00

Disb # 2/Seq #1 $1750.00Actual First disbursement (with 7 days of disbursement date) Second submission

DRI set to ‘True’, Disb # 1/Seq #1 $1750.00 DRI is still ‘False’, Disb # 2/Seq #1 $1750.00Actual Second disbursement (with 7 days of disbursement date) Third submission

DRI ‘True’, Disb # 1/Seq #1 $1750.00DRI is set to ‘True’, Disb # 2/Seq #1 $1750.00

Sequence Number is not incremented when changing only the DRI

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Adjusting a Disbursement on FAS

• Pending Disbursement– Individual disbursements can be adjusted

– Sequence number is incremented

• Actual Fully Disbursed– Adjust the most recent– Continue working backward until you reach

the new amount– Sequence number is incremented

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Adjusting a Disbursement on FAS – Case Study

Accepted Pending disbursementInitial submission

Award = $3500Disb # 1/Seq #1 $1750.00Disb # 2/Seq #1 $1750.00

Adjustment Award = $2000 • Go to the disbursement list and select Disb #1

Disb # 1/Seq # 1, change disbursement amount to $1000.00 • Go to the disbursement list and select Disb #2

Disb # 2/Seq # 1 change disbursement amount to $1000.00

Sequence # must be incremented, since the disbursement amount is changing

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Actual fully disbursementInitial submissionAward = $3500Disb # 1/Seq #1 $1750.00Disb # 2/Seq #1 $1750.00

AdjustmentAward = $1000• Adjust the award record by pressing F11, from the award detail• Status will be ‘not ready’• Go to the disbursement list and select Disb #2, press F11 to adjust

Disb # 2/Seq # 2 $0• Go to the disbursement list and select Disb #1, press F11 to adjust

Disb # 1/Seq # 2 $1000.00Always adjust the most recent disbursement first

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• To increase a Direct Loan an ‘actual’ fully disbursementInitial submissionAward = $2000Disb # 1/Seq #1 $1000.00Disb # 2/Seq #1 $1000.00

AdjustmentAward = $3500Adjust the award record by pressing F11from award detailStatus will be ‘not ready’Create a new disbursement from the list or detailDisb # 1/Seq #1 $1000.00Disb # 2/Seq #1 $1000.00

Disb # 3/Seq #1 $1500.00

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Loan Funding

• Advanced Funding – Initial Current Funding Level (CFL)

• Send ‘actual’ disbursements (substantiate) – No sooner than 7 days prior to disbursement date

• Schools drawdown funds from G5• Funds must be credited within 3 business days• Funds may be drawndown before O & D sent to COD• But must substantiate drawdowns with in 30 days• Funds are not student specific• May reallocate funds

– CFL increased• Actual disbursements greater than initial CFL

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Loan Funding

• Booked Loan– Completed, Signed MPN– At least one accepted, actual disbursement– Accepted Award Record– Also for PLUS – Accepted Credit Check

– Loan added to the Servicing System as a collectable asset

– Student: Legally obligated to repay loan– Impacts compliance with the ’30-day rule’

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COD Options

• COD defaults to Multi year Promissory note• eMPN or paper?• Do you want to require an Award/Origination

record before a student can complete their eMPN?

• Do you want to include an electronic message to students when they complete their eMPN?

• If you need a paper MPN who will print them?– COD or school

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COD Options

• New for 2010-11– Will school participate in electronic Parent PLUS

Application?• If yes, what date do you want to begin• Remember credit checks are only good for 90 days.

– How often do you want to get Parent PLUS Applications?• Daily or On demand

– Will school participate in electronic Grad PLUS Application?• If yes, what date do you want to begin• Remember credit checks are only good for 90 days.

– How often do you want to get Grad PLUS Applications?• Daily or On demand

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COD Options

• Entrance and Exit counseling reports– In transition– Moving from DL Servicing

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Reconciliation

• Reconciliation– Verify that funding requests are offset

by disbursement requests•Must be completed monthly•Process must be documented•School compares COD’s records to its

records–Cash Activity–Disbursement Activity–Difference must be $0

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Reconciliation

• Year-end Closeout•Final reconciliation for the award

year•Must be completed no later than

published deadline•Formal confirmation must be sent

to/via COD•Contact COD School Relations Center

to arrange post-closeout processing (if necessary)

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Reconciliation

• Direct Loan Tools– Import School Account Statement (COD)– Import School data from SBS

• FAS will extract data for importing into DL Tools

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COD Reports

• School Account Statement (SAS)– Run Monthly-First full weekend of the month– Includes all data through the last day of the

previous month• Cash Summary• Disbursement Summary by Loan Type• Cash Detail• Loan Detail, Loan level• Loan Detail, Disbursement Activity Level

– Used for Reconciliation

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COD Reports

• Pending Disbursement List– Weekly– DRI=False– Reported period is a 45 day window into the future

from the date of the report or any date in the past(Disb date < or = to 45 days from the report date)

– Used for:• Determining future funding needs• Identify pending disbursements that should be actual• Identify awards or disbursements that need to be

inactivated

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COD Reports

• 30 Day Warning Report– Monthly– Unbooked awards by type– MPNs not originated– 90 days worth of data beginning 120 days prior to the report

run date• Award accepted 10/15/2010 not MPN or actual disbursement• Will appear on report after 30 days have passed since the

award was accepted– Used for:

• Identify missing pieces necessary for booking loan• Identify MPNs awaiting awards• Monitor compliance with 30 day reporting requirement

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COD Reports

• Inactive Report– Monthly– Award and disbursements have been

adjusted to $0 for the reporting period– Used for:

• Confirming accurate inactive loans• Identify awards that have dropped off the 30-

day warning report

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COD Reports

• Duplicate Student Borrower Report– Monthly– Accepted multiple sub and/or unsub with

overlapping academic years– Used for:

• Identifying potential over awards

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COD Reports

• SSN/Name/Date of Birth Change Report– Weekly– Identifier changes, 90 days prior to the

report end date– Student associated with school during any

of the 3 most recent award years– Used confirm identifier changes

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COD Reports

• Entrance Counseling Report– Daily, weekly, or monthly– Used to identify students who have

completed entrance counseling– Subject to changes since Entrance

counseling is moving from DL Servicing

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COD Reports

• Exit Counseling Report– Daily, weekly, or monthly– Used to identify students who have

completed exit counseling– Subject to changes since Entrance

counseling is moving from DL Servicing

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COD Reports

• Other reports– Delinquent borrowers– MPN Discharge – Expired MPNs– MPNs due to expire

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Reports

• COD Reports put to page center

• Customer reports made available from FAS

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Financial Aid Services Staff 1-800-443-0646 Option 4, 2

Jan Napiltonia - AVP (717-720-2077)

Mike Byers – Manager, FAS

Lisa Humphrey Cathy Machamer

Development Lead Customer Support Lead

John Aunkst Skip HetrickSteve Angle Laura

HolmesJanice Contino Andy MartinPamela Easley Marie PellishKara Marshall

Jodi Feagley – Agreements & Administrative Support

Brad Fisher – SAS Support for FAS & ALS 61

Direct Lending PHEAA’s FAS Solution Presented by: Jan Napiltonia, AVP Financial Aid Services.

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Transcript of Direct Lending PHEAA’s FAS Solution Presented by: Jan Napiltonia, AVP Financial Aid Services.