Direct Loans Tips and Tricks Your Presenter Ashley

Direct Loans Tips and Tricks

Your Presenter Ashley Bergemann Marquette University Financial Aid Systems Analyst 10 ish years in PS FA Mother of two adorable children

Agenda/Contents Setup Processing Reconciliation SULA Sequestration

Marquette University We are 12, 000+ students 5 Careers Currently at People. Soft 9. 0 People. Tools version 8. 54. 09 DL school since 1998 $100, 000+ in disbursements

Disclaimer Many ways to do one thing Do what best fits your institution 2014 HEUG Midwest Regional

Setup

Academic Year Start and End Reported to COD in the origination file Consider SULA reporting 2014 HEUG Midwest Regional

Loan Period Start and End Earliest and last date of instruction Calculated using the earliest loan period start date and latest loan period end date from the terms in the disbursement plan 2014 HEUG Midwest Regional

Aggregate Areas 2014 HEUG Midwest Regional

Disbursement Plans Buckets – multiple disbursement ids for each term Increase or reinstate a loan with same item type Up to 20 Post term increase One loan id 2014 HEUG Midwest Regional

Disbursement Plan Updates over time have reduced need for multiple buckets Can reinstate a PLUS or Stafford We require students to actively accept increases to loans 2014 HEUG Midwest Regional

2014 HEUG Midwest Regional

13 Loan Fee Table Must be in alpha order Fee before rebate

14 Loan Type Setup Any loan item type must have a corresponding loan type Loan fee before rebate Additional Unsub Eligibility for Unsub in lieu of PLUS loans Remember during aid year rollover/sequestration

Loan Type Setup continued 2014 HEUG Midwest Regional

Item Type Setup 16

Processing

18 Awarding Tips The 1 st disbursement must always be equal to or greater than the 2 nd disbursement for all Direct Loans

19 Awarding Tips Disbursement 01 is greater than Disbursement 05 Financial Aid> Awards> Award Processing> Assign Awards to a Student (Disbursement hyperlink)

20 Awarding Tip-Stafford Loans Disbursement Buckets can not be reused after disbursement • The loan disbursed on buckets 01 and 05 • Loan was canceled • Buckets 01 and 05 can not be reused after disbursement • Loan was reinstated using buckets 02 and 06

21 Awarding Tips-Stafford Loans To increase a Stafford Loan New Item type if disbursed Unless you have buckets

22 Awarding Tips-Stafford Loans To increase a Stafford Loan Action B to offer and accept Increase to new amount

23 Awarding Tips- Stafford Loans Custom split the disbursement when decreasing or canceling 2 nd disbursement Remember the 1 st disbursement must always be greater than the 2 nd so the 1 st disbursement can not be decrease to less than the 2 nd

24 Awarding Tips-PLUS Loans only have one disbursement bucket per term If the loan is increased, the buckets can not be reused. A new item type must be used

25 Awarding Tips-PLUS Loans Best Practice: Originate all PLUS loans Change to a PLUS when credit = denied Award has been adjusted incorrectly error in DLOUT

Awarding Tips-PLUS Loans Pending credit check for a Parent PLUS Loan COD can not complete a credit check because the parent SSN, name or date of birth is incorrect Should be able to change information, re-originate Sometimes it doesn’t work Cancel loan Originate Send to COD Update info Award new loan Originate 26

Re-awarding Direct Loans with New Disbursement Plans Option 1 1. Cancel the original loan (with the original disbursement plan and split code) on the Student Aid Package page. 2. Insert a row on the Student Aid Package page below the row for the canceled loan in Step 1. 3. Using the same financial aid item type as the original loan, award the loan with the new disbursement plan and split code. This option no longer works New item type 2014 HEUG Midwest Regional

Re-awarding Direct Loans with New Disbursement Plans Option 2 1. Using the original loan that you awarded (with the original disbursement plan), create a custom split so the money is allocated only to the new terms. 2. Originate the loan. 3. Access the Application Financial page (Financial Aid, Loans, Direct Lending Management, Manage Direct Loan Application) and select the Override Loan Dates check box. Change the Loan Period Start, Loan Period End, and Antc Date (anticipated disbursement date) to match the new period for which the loan is awarded. 2014 HEUG Midwest Regional

Origination ORDER MATTERS! 1. 2. 3. 4. ATB Update Award Indicator Origination Process Loan dates 2014 HEUG Midwest Regional

Origination Check origination (FAPLBOG 1) log file for errors • Loan fee errors • Minimum amount • Split code/disbursement plan • Zero dollar first disbursement 2014 HEUG Midwest Regional

Origination and Disbursement Common Origination Errors Bio/Demo Incorrect Loan Information Origination Changes 31

Origination Issues Common Origination Errors Bio/Demo for borrower is incomplete or incorrect Middle initial can not be lower case No permanent address or phone type Visa/permit type for a resident alien is not AR 1 SSN is a delivered and required visa type for resident aliens or date of birth is blank 32

Origination Issues Loan information is incorrect Loan was awarded using cents All Direct Loan disbursements must be awarded in whole dollars- never use cents The 1 st disbursement is less than the 2 nd disbursement The loan period start date is before the beginning of the aid year start date 33

Origination Issue Origination change issues Any bio/demo changes are sent as an origination change if the loan has been originated. If the loan was canceled after it has originated, the system will still send bio/demo changes. These changes will reject and there is nothing that can stop these changes from being sent and rejected. If you reallocate subsidized and unsubsidized loans at the same time, the increase may be rejected because the decrease has not been processed. Just resend the origination that rejects. 34

Outbound 2014 HEUG Midwest Regional

Loans on Hold Run DLOUT Run Validation Errors Financial Aid > Loans > Direct Lending Reconciliation > Validation Errors Report Orig/Orig Chg Validate Errors Disb Validation Error Report Fix Run DLOUT Look at log file fix Run loans on Hold – hint just run query fix 2014 HEUG Midwest Regional

DLOUT log error – disb skipped 2014 HEUG Midwest Regional

DLOUT log error – disb skipped 2014 HEUG Midwest Regional

COD reject – payment period 2014 HEUG Midwest Regional

2014 HEUG Midwest Regional

Reconciliation

Direct Loan Servicing Reports

SULA

2014 HEUG Midwest Regional

2014 HEUG Midwest Regional

2014 HEUG Midwest Regional

Sequestration

Sequestration 2014 HEUG Midwest Regional

Other stuff CRCS CRSU Expired MPN only in original origination Read the Tech Ref!!!! 2014 HEUG Midwest Regional

Direct Loan Processing – Tip to Tail https: //www. heug. org/p/do/sd/topic=918&sid=7543 Direct Loan and Pell Reconciliation https: //www. heug. org/p/do/sd/topic=2365&sid=16499 20232 – Direct Lending https: //www. heug. org/p/do/sd/topic=933&sid=4350 Everything People. Books doesn’t tell you about Direct Loans https: //www. heug. org/p/do/sd/topic=933&sid=9775 Delivered Loan Entrance Counseling Explained https: //www. heug. org/p/do/sd/topic=2401&sid=17369 Singing the Praises of Loan Period Date Changes https: //www. heug. org/p/do/sd/topic=933&sid=18116 SULA Best Practices https: //www. heug. org/p/do/sd/topic=933&sid=18240 SULA: Resolving Errors 2014 HEUG Midwest Regional https: //www. heug. org/p/do/sd/topic=3&sid=17762

Questions?

Contact Information Ashley Bergemann Systems Office Analyst of Student Financial Aid Marquette University E-mail: Ashley. bergemann@Marquette. edu Phone: 414 -288 -4774

This presentation are available for download from the Conference site at https: //www. heug. org/page/usalliance-conference-files Note: Sessions from previous HEUG conferences are also available.