Direct Loans Ill do it over my dead body

1
Direct Loans Ill do it over my dead body!

• Betty Davis, Senior Director, Student Financial
  Services, Point Park University
• Sandra Cronin, Director of Financial Aid,
• Point Park University
• Sherry Proper, Director of Financial Aid,
• Allegheny College

2
Why we went Direct Lending Allegheny College

• Fall of 2007 Spring of 2008
• Nervousness about financial industry
• Did research on DL and Datatel system
• Decided to sign up and implement technology (no
  obligation to participate)
• Allegheny was not planning to process any DLs
  for 2008-2009

3
Initial Population Allegheny College

• Sign-up process technology set-up went smoothly
  
• Datatel consultant came for 1 1/2 days
• But did the system work?
• Offered DL as an option to new FR returning
  students whose lenders no longer participated in
  FFELP

4
Initial Population Allegheny College

• Approximately 140 FR 10 returning students
  chose DL in 2008-2009
• About 20 DL PLUS loans
• Replaced FFELP Stafford with DL for these
  students processed DL
• Processing went very smoothly
• Reconciliation was a little challenging

5
Initial Population Point Park University

• 2009-2010 Transfer students who already had
  Federal Direct Loans were kept in the program.
  Powerfaids has the ability to perform a Quality
  Control (QC) rule to check for prior
  participation and the counselor was prompted to
  award the student a Direct Loan.
• New parents to Point Park University who had
  previous Direct PLUS loans were doing their own
  approvals without our knowledge!

6
Getting started with Direct Loans

• Submit E-App through the Electronic Application
  for Program Participation to add Direct Loans to
  your Eligibility and Certification Approval
  Report (ECAR). Website http//www.eligcert.ed.go
  v/
• After ECAR is approved, send an email to Common
  Origination and Disbursement School Relations
  center at codupport_at_acs-inc.com. Subject line
  Request to participate in the Direct Loan
  program. In email Name of school, school
  address, person requesting participation (should
  be Director listed on ECAR), email and phone
  number of person requesting participation, DUNS
  number, and award year for starting participation

7
Getting started with Direct Loans

• You will receive an email confirmation of your
  participation and Direct Loan contact person from
  FSA programs. You may need to enter your Direct
  Loan code in your FAMS system.
• Confirm bank account information with G5. This
  is a good point to include your Business Office
  regarding participation in the new program yes,
  it is just like Pell.

8
Getting started with Direct Loans

• Obtain COD website access (need a security
  administrator) for all persons who need access to
  view and update Direct Loans at
  ifap.ed.gov/eannouncements/0201UpdatedCODWebsiteSc
  hools.html
• Decide on your MPN options (electronic or paper)
  through COD website
• Direct Loan Listserv available by sending an
  email request to dlops_at_ed.gov

9
Getting started with Direct Loans

• May want to apply for separate SAIG mailbox
• Decide on method for transmitting files
• EdExpress
• EdConnect
• Purchase other software from a third party vendor
• Develop your own software
• Technical specifications available in the COD
  Technical Reference on FSA Download

10
FAMS Considerations - Datatel

• How do you process Pell grants?
• How efficient are your Pell processing
  procedures?
• Do research on your FAMS COD capabilities
• Side note - Perkins Loans likely to be processed
  this same way in the near future
• Dont be afraid ACG, SMART, and TEACH are more
  complicated than DL

11
FAMS Considerations - Powerfaids

• Two different methods for sending files
• Data Integration Direct Loan
• Data Integration COD Reporting (recommended by
  College Board)
• Decide on disbursement method (net or gross)
• Net Disbursement used by Point Park even though
  not recommended by Jenzabar
• OOPS!
• Commonline Loan screen defaults get erased when
  sending Direct Loan files out (we learned the
  hard way)

12
FAMS Considerations - Powerfaids

• Loan Disbursement Authorization does not
  currently work for Direct Loans
• Work around is to use QC Rules
• Update expected in future release of software

13
It really is just like Pell

• Send origination files to COD
• Start small do five for the first run
• Import response files
• Double-check as your comfort level permits - both
  in your software and on COD
• Decide on an internal business cycle for sending
  and uploading files.
• Contact COD for any problems

14
Direct Sub/Unsub Requirements

• Entrance counseling
• https//www.dl.ed.gov
• MPN Completion
• https//dlenote.ed.gov
• Files are imported through SAIG mailbox
• We run a process to place a completed code in
  Communications Management

15
PLUS Requirements

• Credit check can be initiated by parent or school
• Parent initiates credit check through MPN
  completion
• https//dlenote.ed.gov
• School initiates credit check by sending
  origination record
• Faster process (better if expecting a denial)
• Need permission and disclosures first

16
Ready to Disburse? Point Park University

• Confirm funds are in G5 account
• Send disbursement files to COD
• Start small do five for the first run
• Load response files into software
• Send disbursements onto student account

17
Ready to Disburse? Allegheny College

• Package Direct Sub/Unsub with action code E
• Send origination record through COD
• When MPN and Entrance Counseling are complete
• Change action code to A
• Transmit to students account
• Send disbursement record through COD

18
Ready to Disburse? Allegheny College

• Imported record indicates PLUS loan
• Add borrower info to Datatel (from COD), PLUS
  loan award amount
• Send origination record
• Check for credit decision (detail in PLUS award
  screen for accepted or denied)
• If accepted, transmit to account send
  disbursement record

19
Reconciliation

• Challenging the first year
• Could not import Student Account Summary (SAS)
  report into Datatel
• Used Cash Summary Report on COD and our internal
  records
• Recent Datatel patch improves DL processing and
  reconciliation process (SAS report now imports
  easily)

20
Conclusion Allegheny College

• Went better than expected
• Stafford processing much easier than FFELP
• PLUS time-consuming and more difficult than FFELP
• Some difficulties in having both programs
• Made one MAJOR mistake transmitted DL
  origination records this year for non-enrolled
  students DO NOT DO THIS!

21
Conclusion Point Park University

• Point Park University
• Not as bad as I thought
• Looking forward to using reports instead of
  checking individual students
• If not forced 100 next year, will do freshmen
  and/or students who have never borrowed
  previously in Direct Loan program.