Direct Loan Systems Primer

1
Session 4

• Direct Loan Systems Primer
• Craig Rorie
• Wood Mason

2
What well talk about

• School software solution
• Student Aid Internet Gateway (SAIG)
• Common Origination Disbursement (COD)

3
What well talk about

• Electronic Master Promissory Note (eMPN)
• G-5
• Servicing

4
School Solution

• Custom Mainframe
• Commercial vendor software/application
• EDExpress
• Stand-alone
• Combination with mainframe app
• Combination with vendor app

5
(No Transcript)
6
Right about now youre probably asking yourself

• Why am I creating a Common Record and what in the
  world am I going to do with it when Im done?

7
Student Aid Internet Gateway (SAIG)

• Electronic communications network
• Data Point Administrator (DPA)
• TG Mailbox
• FSA systems

8
SAIG System Overview
SAIG Mailbox
FSA Application Systems
https//www.saigportal.ed.gov
Mainframe Midrange Users TDClient
FMS COD CPS NSLDS CSB

• Postsecondary
• Institution

PC Users EDconnect

• 3rd Party
• Servicers

9
https//fsawebenroll.ed.gov
10
Right about now youre probably asking yourself

• So, where do I send this thing once Ive created
  it?

11
www.cod.ed.gov
12
COD Welcome Screen
13
Batch Search
14
(No Transcript)
15
Person Menu
16
Person Information
17
Direct Loan Information
18
Award Detail
19
Disbursement
20
Disbursement Detail
21
Disbursement History
22
School Summary Information
Jill Friendly
Jo Gabriel
Patience Abounds
23
(No Transcript)
24
Direct Loan Newsbox
Grand Moolah University
00000000-DL
00000000-Pl
25
Right about now youre probably asking yourself

• I thought I had to have a promissory note on the
  COD database before I could disburse? My FFELP
  Lender did all that MPN stuffhow do I do it in
  the Direct Loan Program?

26
www.dlenote.ed.gov
27
Promissory Note
28
Credit Check Decision
29
Right about now youre probably asking yourself

• Okay, Ive got everything in COD for this
  loanwhere do I get the cash to disburse to my
  borrowers?

30
The G5 System
31
The G5 System

• Provides location for all school funding
  processes
• Drawdowns
• Drawdown adjustments
• Returns of funds
• Viewing of award activity
• G5 funding reports

32
G5 Registration
33
Establish G5 Account

• Have a DUNS Number
• Call 1-866-705-5711 or
• Online at http//www.dnb.com
• Award Document ID
• 11 Character unique ID
• P268K10

34
Establish G5 Account

• Set up bank information
• Enroll in Automated Clearing House (ACH) using
  Direct Deposit Sign-Up Form (SF-1199A), or
• FEDWIRE by enrolling with CFO, Department of
  Education
• Obtain user ID and password
• ED mails User IDs and passwords to payees
  business address

35
G5 Online Training
36
Right about now youre probably asking yourself

• Okay, Ive got everything in COD for this loan
  and Ive drawn and disbursed the funds to my
  borrower. What happens now? What happens to my
  borrower when she goes into repayment?

37
Borrower Services Online
38
Borrower Services

• Repayment options tailored to individual need
• Standard, Extended, and Graduated
• Income Based
• Income Contingent
• Alternative
• Public Service Loan Forgiveness

39
Borrower Services

• Electronic billing/payments
• EDA and on-line payment options
• Self-Service tools for borrowers
• Telephone voice response system, web portals

40
Borrower Services

• Online form submission
• Electronic PIN signatures
• Loan Consolidation

41
School Services Online
42
School Services
43
School Services

• Default/Delinquency Management
• Pre-Repayment Counseling
• Calls begin two months prior to entering
  repayment
• Emails to assist with repayment options
• Delinquency Counseling
• Calls begin at 31 days (22 calls)
• Letters begin at 7 days delinquent (12)

44
School Services

• Call Campaigns
• High balance calls (balance of 80K or greater)
• Late Stage Delinquency Assistance
• Partner with DLSS to facilitate contact with
  seriously delinquent borrowers

45
Right about now youre probably asking yourself

• Man, are these guys ever going to quit talkin?

46
School Customer Service Centers

• COD School Relations Centerhttp//www.cod.ed.gov
  [phone]
• School Services - DLSShttp//www.dl.ed.gov/school
  s [phone]
• Direct Loan Consolidation Centerhttp//www.loanco
  nsolidation.ed.gov
• [phone]

47
School Customer Service Centers

• CPS/SAIGhttp//www.fsawebenroll.ed.gov(800)
  330-5947
• G5 Help Deskhttp//www.g5.gov [phone]
• NSLDShttp//www.nsldsfap.ed.gov
• [phone]

48
Direct Loan Systems Primer

• Questions???
• Dlenrollment_fsa_at_ed.gov