10 th Anniversary 1999 - 2009 Direct Loans and Banner Dave Curran, Principal Consultant.

10th Anniversary 1999 - 2009

Direct Loans and Banner

Dave Curran, Principal Consultant

Before we start….

Please turn off cell phones or change to silent mode

Please jot down questions and hold until end of section

My Background

Philadelphia, PA Native and Resident BS, De Sales University , PA R.O.T.C/Commissioned at Lehigh University M.B.A, Oklahoma City University, OK

Former Director of Financial Aid University of Texas at San Antonio, TX

My Current and Former Financial Aid & Self-Service Implementations Georgetown University (FM/IM INAS, Undergraduate, Graduate, Law,

Medical and International; School of Foreign Service Doha, Qatar) Brown University (FM/IM INAS, Undergraduate ,Graduate and

Medical) Temple University (Undergraduate ,Graduate, Law and Medical) Villanova University (FM/IM INAS, Undergraduate ,Graduate)

Agenda

Information for clients switching to Direct Loans

OverviewBanner Set upBanner Day-to-Day ProcessingQuestion and Answer

Differences: Direct Loans vs. FFELP

You will not be dealing with multiple lenders, guarantors, servicers, or disbursing agents

COD DL reporting is similar to COD Grants reportingLoan processing is controlled by FAO, not the guarantorReturn of loan funds is accomplished through COD

reporting process, similar to grantsIneligible funds for one student may be used to pay

another student instead of returning fundsOne MPN for the student, even if enrolled in different DL

schools over the yearsRequires year end reconciliation

Advantages of Direct Loans

Financial Aid Office controls the processSchools chooses when to disburse loans

Require acknowledgement of PN? Of COD origination?No need to send hold and release request to

guarantorNo need to import EFT roster Minimal involvement for Bursar Office Response files from COD are received in a matter of

hours

Becoming a Direct Loan Participant

Currently the completion of process could take up to six months Submit the Electronic Application for Participation to be approved Send e-mail request to actively participate and receive final

approval Complete or update SAIG mailbox enrollment Set School up to receive DL funds via GAPS Contact COD school relations for assistance in:

Updating DL contact information Sign up to receive DL Bulletins Select DL Report options Establish promissory note process Request Entrance Counseling files

Decisions to be made

Will the school use the electronic MPN? Will acknowledgement of MPN be required for

disbursement? Will acknowledgement of origination record be required for

disbursement? How often to receive Entrance Counseling files? How to communicate with students on changes –

Remember! All new DL borrowers must complete a new MPN.

(Some schools also require a new Entrance Counseling from each student, although this is optional.)

Overview

To outline the set-up process for direct loans

Explain the day-to-day or operational procedures for direct loans

Part 1 – Setup

Direct Loan Setup

RESOURCES TO REVIEW: SGHE Publication “COD Handbook” Loan Processing chapter, in the Banner

Financial Aid User Guide Banner Help > Online Help on that specific

form Annual Spring Banner Financial Aid

Release contains updates for federal loan processing as well as COD processing

Direct Loan Setup

OTHER HELPFUL RESOURCES: Direct Loan listserv National Direct Student Loan Coalition

http://www.directstudentloancoalition.org/ Direct Loan Reference Material available at

https://www.fsadownload.ed.gov/ Direct Loan Simulations and CBT’s

http://www.nasfaa.org/publications/2008/eacodcbt102308.html

Direct Loan Setup

AR Creates Detail Codes TSADETC – Detail Code Control Form

FA Creates Fund Codes & Characteristics RFRBASE – Fund Base Data Form RFRMGMT – Fund Management Form

Enter/View DL School Code RORCODI – COD Entity ID Rules ROAUSIO – US Specific Institutional Financial

Aid Options

TSADETC (Detail Code Control Form)

This form is owned by AR and is used to

create the detail codes

that are associated with

FA funds on the RFRBASE

form.

Ask Student Accounts

personnel to establish loan

fund detail codes for

Direct Loans. Names as shown above will appear on billing statement.

RFRBASE (Fund Base Data Form)

Create Fund Codes & Characteristics.

Must create separate fund codes for each Direct Loan fund: -Direct Sub-Direct Unsub-Direct PLUS

Can have multiple Direct Loan fund codes for each loan type if desired.

RFRMGMT (Funds Management Form)

The Rebate Fee % and the Loan Fee % are Required. The Interest Rate is Optional. You must - Select Direct Loan Indicator

RORCODI (COD Entity ID Rules)

Enter School’s Reporting ID, Source ID, Federal ID and DL School Code- Indicate which record is your Institutional Default

The DL School Code will then display on ROAUSIO.

ROAUSIO (US Specific Institutional Options Form)- ROAINST

Complete Loan Options - Loan Type of Both (or Direct)- Indicate Multi-Year Note

Eligibility- Enter Entrance and Exit Requirements

Direct Loan Setup (cont.)

Setting the Initial Loan StatusRTVLNST – Loan Status Validation FormRPRLOPT – Loan Options Form

Prom Note Disbursement datesRPRLPRD – Loan Period Base Data Form

RTVLNST (Loan Status Validation)

Prevents disbursement memos.

“Hold” codes stop processing until removed.

Create Loan Statuses

Note: Initial Loan Status should be Active as the status is only updated manually.

Used for all loan processing, Direct, Electronic and Manual.

RPRLOPT (Loan Options Form)

School determines if PN and/or

Disbursement is required before

extracting origination School determines if Acknowledgement of

Origination and/or Prom Note is required before disbursement

RPRLPRD (Loan Period Base Data)

Create Loan

Periods

Create a disbursement

schedule for each loan period on the 2nd

page of this form

Direct Loan Setup (cont.)

Setting the Class CodesRPRCLSS – Class Code Translation -

Associate Class Code from RNANAxx to Class Code and Level in the Student System

Review Delivered Federal RulesRPIFEDR – Federal Rules Inquiry Form

Direct Loan Setup (cont.)

The COD records must contain the state and nation codes from these validation tables.

RTVCDST – COD State CodesRTVCDNT – COD Nation Codes

If the institution uses other codes for states/nations, the crosswalk field can be updated to translate for COD

REREXxx process will translate the school’s codes to the correct values needed for COD

GJAPDFT for Loan Application Creation

Define parameters for the Loan Origination Process RPRLORC

This is the same process you use to set up parameters for Electronic Loans for RPRELAP

Default parameters must exist for each user who has authority to create loan applications on-line

This enables the user to create the origination record by clicking on ‘Create Loan Applications’ in the options menu on the award form (RPAAWRD).

Set-Up Forms specific to FFELP Processing RTVCINT – Certification Initials Validation Form - Establish

certification initials for each staff that processes loans, if desired

SPAIDEN – General Person Identification – create non person record for each lender, guarantor, and servicer

RPRLNDR – Lender Base Data - Establish address information about a lender as well as to link the lender ID in SPAIDEN to the Guarantor or Insurer ID in SPAIDEN

RPRLNDA – Lenders/Disbursing Agents Rules - Link a Lender ID with a Servicer ID to expedite transmission on hold/release records

Part 2 – Day to Day Operations

Day-to-Day Processes

1. Award & Create Direct Loan: …Offer or Accepted Allowed

2. Submit Origination to COD

3. Optional - Execute MPN

4. Optional - Submit MPN to COD

5. Disburse Direct Loan & submit Disbursement to COD

6. Import Response from COD

7. Repeat 5 & 6 for all Disbursements

8. Reconcile Direct Loan Funds

Booking a Loan A booked loan is the point at which an obligation has been

established between the borrower and the Department of Education (DE) to repay a Direct Loan.

There are 3 basic components that must be established before a loan is declared as booked by the DE

If COD has received and accepted A loan origination record A completed and signed promissory note A disbursement record

Direct Loan Originations

Loan Origination Process Flow

RPRLORC

Create Loan Origination

Create Origination RecordsREREXxx_yyyyy.xml

REREXxxRPALORG

REICODD

Updated withbatch information

RPALORGREASTIDREICODDRPALDSB

RERIMxx

Import originationAcknowledgement file into Banner

REASTID

Creates Student Identifier Record

RPALORG

Updates Origination RecordUpdated by RPRLORC process

(Enter Parent Info on RPALORG for PLUS loans as needed)

FTP CRDLxxINfile to local PC.

Send file to COD

Receive acknowledgement file crdlxxop

FTP to DATAHOME directory

Updated by RERIMxx processRPAAWRD

Award Loans to Eligible

Students

Start

Origination Activity

Loan funds are first awarded on one of the award forms RPAAWRD or RPAAPMT

Students may accept loans on Web or you may enter acceptances manually or in batch

Loan records are created either on-line or in batch process

May create Originations for Accepted or Offered Loans Schools that choose to send Direct Loan Promissory

Notes with the student’s award letter can create Origination records while the fund is still in an offered status.

Batch process can be run globally or with a population selection

Prom notes may be created immediately after loan records are created (if institution is printing PN’s)

Origination Activity - Loan Origination Process RPRLORC

Origination Activities

RPALORG - Federal Direct Loan Origination Form

Major blocks Loan Information Summary block Promissory Note Summary block Loan Disbursement Summary block Disbursement Detail block Student Data block Parent Data block

This process extracts loan originations to be sent to COD for all records in a ‘R’eady or ‘N’ot Ready status on the RPALORG form.

Can be run globally or with population selection

Can be run to extract all Direct Loan activity, changes only, or loans without changes

Output CRDLxxINTransfer File to PC to send to COD via EdConnect

REREXxx Process updates the COD Document Control form - REICODD

Origination Activity – COD Extract - REREXxx Process

Origination Activities (cont.) REICODD - COD Document Control Form

Document Control Form InformationCOD Document IDExtract DateReceipt DateReceipt StatusResponse DateResponse Status

Origination Activities (cont.)REICODD – COD Document Control Form

Origination Activity – COD Import Process

RERIMxx

COD returns file as crdlxxop

RERIMxx loads incoming file into Banner

Forms updated with this processRPALORG - Federal Direct Loan Origination

FormREICODD – COD Document Control

Direct Loan Promissory Notes

Promissory Note Activities

When running RPRLORC process to create the Direct Loan Origination Records you will complete parameters pertaining to Promissory Notes.

School Prom Note Status (Required) - indicates whether the student is expected to complete a paper or an E-MPN promissory note.

If COD is going to use the Electronic Prom Note – choose Q

If COD is going to print a Prom Note – choose R

If school is going to print the Prom Note – Choose R and follow the Promissory Note Printing procedures.

REREXxx informs COD “who” will handle the Prom Note

DL Day-to-Day Process in Banner

Q – E-MPNStudent executes MPN online at DL website

School receives and uploads response filecrpnxxop – review resulting report to identify

students who have signed an e-MPN, but do not have an RPALORG record in Banner

DL Day-to-Day Process in Banner

R – Paper MPNREREXxx – Parameter 05: Promissory Note Print

0 = Schools prints from Banner

R = COD prints, sends to school

S = COD prints, sends to borrower

DL (School Prints) Promissory Note Flow

Print Promissory Notes and address labels

RPRPNPT RPALORGRPAPROM

Updates Prom Note Record

Mail Prom Notes to Student

Student returns Prom Note

RPAPROMRPALORG

Log receipt of Prom Note

RPRDLPM

Create Prom Note Manifest

Mail Manifest to CODCOD will send back anAcknowledgement file

RPAPROMRPALORG

Updates Prom Note Record

Receive Prom NoteAcknowledgement

CRPNxxOP on local PC with EDConnect software

Start

RERIMxxLoad Prom Note

Acknowledgement

RPALORGRPAPROM

Updates Prom Note Record

Promissory Note Activity

Users must still allow the student the option of signing a paper promissory note even if choosing Q - E-MPN

Promissory Note Activity RPRPNPT ProcessPaper promissory notes will print for all

students whose prom note status on RPALORG is “R”eady to Print

Loans with a prom note status of “Q” EMPN Ready will be excluded from printing.

If student opts to sign paper MPN, prom note status is manually changed to “R”

Promissory Note Activity RPRPNPT ProcessOutput:

rprpnpt.lis Alpha listing of printed notes rprpnpt.li3 Used to print mailing labels rprpnpt.li4 Contains Sub and Unsub MPNs rprpnpt.li5 Contains PLUS MPNs rprpnpt.li6 Contains Grad PLUS MPNs

Promissory Note Activity RPRPNPT ProcessOnce the student has returned the signed promissory note, the signature can be noted on the following forms:

RPALORG - Direct Loan OriginationRPAPROM – Promissory NoteRRAAREQ – Applicant RequirementsROASMRY – Applicant Summary

Prom Note Activities (cont.)

Information housed on Promissory Note form RPAPROM and the Promissory Note block of RRAAREQ

Fund Code & DescriptionTerm CodeDirect Loan Sequence NumberDirect Loan Status IndicatorSatisfied Indicator & DateEffective Date

RPAPROM (Promissory Note Form)

Promissory Note Activity RPRDLPM ProcessThis process produces the Promissory Note

Manifest of signed notes not previously manifested

Prom notes are batched in groups and mailed to the COD

Users can control the size of the batch

Promissory Note Activity COD Import Process - RERIMxx MPN/PLUS Prom Note Acknowledgement

(CRPNxxOP) file will be received, transferred and imported to Banner through the COD Import Process RERIMxx

The following forms are updated:RPALORG - Direct Loan OriginationRPAPROM – Promissory NoteREICODD - COD Document Control

Disclosure Statement Printing RPRDSPT ProcessSchools usually request on the COD Extract

Process REREXxx that COD print the Disclosure Statements but if necessary a school can print them using the Disclosure Statement Print Process RPRDSPT in Banner

If a Direct Loan disbursement is not reported as at least Edit Only more than 5 days prior to the scheduled disbursement date, your school is required to provide the Disclosure Statement to the borrower. This includes PLUS Loans.

Direct Loan Disbursements

DL Disbursement Flow

Create Disbursement RecordsREREXxx_yyyyy.xml

REREXxx

REICODD

Updated withbatch information

RPALORGREICODDRERIMxx

Import disbursementAcknowledgement file into Banner

RPALORG

Updates Record

FTP CRDLxxINfile to local PC. Send file to COD

Receive acknowledgement FTP CRDLxxOP file to DATAHOME directory

Updated by RERIMxx process

RPEDISB

Run Disbursement Process

Updates DisbursementRecord

Start

RPALORGROIDISB

Review DisbursementResults (Optional)

Disbursement Activity

RPEDISB process is run to disburse loan funds, as with any other disbursement task

The following forms are updated:RPALORG - Direct Loan OriginationRPAAWRD – Award MaintenanceROARMAN – Financial Aid Record

MaintenanceRPAAPMT – Packaging Maintenance

Disbursement Activity COD Extract Process REREXxx

This process is run to extract disbursement information for transmission to the COD

Creates the Output: CRDLxxIN Transfer File to PC to send to COD via EdConnect

Can be run to extract all Direct Loan activity, changes only, or loans without changes

Edit (Anticipated) Disbursements – automatically extracted (Regulatory requirement) prior to actual disbursements

Actual Disbursements – extracted once the scheduled disbursement date is reached and amount is in Paid Status

Disbursement Activity COD Import Process RERIMxx Files are returned from COD via EDConnect

and imported into Banner:CRDLxxOP

The following forms are updated:RPALORG - Direct Loan OriginationREICODD - COD Document Control

Direct Loan Changes

DL Change Activity

RPEDISB

If making a change toDisbursement, you must

also run the disbursementprocess

Create Change Information

RPALORG

Updated by changes made onRPALORG

RPADLCR

REREXxx

Create Change ExtractFile CRDLxxIN

RERIMxxImport originationacknowledgement

file into Banner

FTP CRDLxxINfile to local PC.

Send file to COD

Receive acknowledgement FTP CRDLxxOP file to DATAHOME directory

Records that were extractedare now removed from form

RPADLCR

REICODD

Updated withbatch information

RPALORGREICODD

Updated with data from acknowledgement file

Start

Lists types Of Changes

RORDATA

Direct Loan Change Process

Update award on RPAAWRDUpdate RPALORG Direct Loan Origination form Run disbursement RPEDISBExtract change records with REREXxx COD ExportTransmit file to CODReceive receipt/response filesTransfer to datahome directoryImport receipt/response files with RERIMxx COD

Import

Change Activity

Changes made on Direct Loan Origination form RPALORG automatically go to Direct Loan Correction Form RPADLCR where changes can be reviewed and deleted before extracting.

Direct Loan changes are logged and acknowledged on Applicant Data Log Application form ROAALOG.

Can see status updates Can use the Resend feature to send individual changes back for

processing Changes are specifically geared to origination activity

Disbursement changes go out as either positive or negative disbursement records

RPADLCR (Corrections Form)

Making Changes to RPALORG in Sent StatusWhen record is in ‘Sent’ status changes can

still be made to:grade level on page 1Promissory note status on page 2student demographic date on page 4

These changes will be logged on RPADLCR but will not be extracted until the record is no longer in Sent status

Sample Changes

Change to Loan Amount before Origination is Sent

Loan Decrease after DisbursementLoan Increase after Disbursement

Note: You can increase a current origination or create a new origination for the difference

Refer to the SunGard COD Handbook for more information on Direct Loan Changes

Direct Loan Entrance/Exit Counseling

DL Entrance / Exit Activity

DECFENOP.datDLFFEXOP.dat

Receive Entrance &Exit files from COD

Upload Entrance / ExitActivity

RPRDUxxStudent Entrance / Exit

Record is updated

RPILECS

Create rules for Loading Entrance &

Exit Data

ROAUSIORTVTREQRFRMGMT

Post Entrance / Exit DataEntrance – either as a tracking

requirement via fund on RFRMGMT or batch posting

Exit – either batch posting or by running RRREXIT

RRAAREQ

Posts Exit Requirement to RRAAREQ for students needing

an exit interview

RRREXIT

Entrance / Exit Requirement Updated

RRAAREQ

Batch informationUpdated

RPIBATC

Transfer files from local PC to

Banner server

Note: these files will continue to be received in a fixed

length format. Full Participant schools will continue to use the RPRDUxx process to

upload these files into Banner.

Entrance/Exit Activity

Entrance/Exit requirements are posted on RRAAREQ form

Entrance and Exit codes as assigned to students on RRAAREQ Entrance can be posted via RFRMGMT when fund is awarded or Batch

Posted Exit Records can be posted to a student’s file via RRREXIT or batch

posted

Students complete Entrance/Exit interviews on ED website

Entrance counseling data is sent as DECFENOP file Exit counseling data is sent as DLFFEXOP fileNote: Be sure to request these message classes (plain text) in order

to load them into Banner.

Entrance/Exit Activity

COD sends Entrance Counseling files on a regular basis

Files are uploaded into Banner via the Direct Loan Flat-File Upload process RPRDUxx

Incoming data populates the Loan Electronic Counseling Status form RPILECS

Scroll bar allows user to access multiple records

RPILECS can be accessed from RPALORG form

RPILECS (Entrance Counseling Form)

DIRECT LOAN RECONCILIATION

DIRECT LOAN RECONCILIATIONWhat constitutes Reconciliation?

Ending Cash Balance of -0-

School’s cash drawdowns should equal booked disbursements, less cash returned

If not equal, school should be able to identify and justify any differences

** This should be done regularly on a monthly basis to avoid issues at the end of the year.

DL Reconciliation Process

RPRDUxx

Upload files to Banner

COD sends School Account Statement for prior month’s

transactions

Receive fixed length SAS files on

local PC via EDConnect

Start

DSDFxxOP.DATDSLFxxOP.DAT

Transfer files from local PC to

Banner server

RPIDLAS

RPALORG

RPACASHUpdates

Use Institutional procedures to reconcile SAS data with Business

Office records on a monthly basis.

School Account Statement Activity

SAS – School Account Summary files are received via EDConnect and uploaded into Banner

DSDFxxOP.DATDSLFxxOP.DAT

Banner supports only these message classes for SAS

Reconciliation Activities – RPACASH - Cash Drawdown FormEnables you to record the drawdown of cash from the Department (ED) and

record the return of excess cash to the Department. • This must be manually entered after each drawdown so the

School Account Summary statement will load in accordingly.

RPACASH - Cash Drawdown FormManually Enter:

DateAmountAid YearAction

R – Receipt of FundsX – Return of Funds

GAPS Control NumberCheck Number – if Return of Funds

Batch ID is populated by upload of dsasxxop.dat file

RPIDLAS - Account Summary Form

Displays account

summary detail

directly from the School

AccountSummary statement

DIRECT LOAN RECONCILIATIONDL Reconciliation Process in BannerCompare FA totals in Banner to COD Totals –

identify differences

RERCDxx – COD Print ProcessReport of detailed data for originations and/or

disbursements by Document IDReport of unsent origination records

DIRECT LOAN RECONCILIATION

DL Reconciliation Process in Banner

Compare FA totals to Finance Totals – identify differences Forms

ROAMGMT – Funds Management RFIBUDG – Fund Budget Inquiry RPACASH – Direct Loan Cash Drawdown FGITBAL – General Ledger Trial Balance FGIBDST – Organization Budget Status

Reports RFRABAL – Account Balance RFRBUDG – Fund Budget FGRTBAL – Trial Balance FGRGLTA – General Ledger Detail Transaction

Direct Loan Compare Reconciliation Process (RPRCPxx)

The Direct Loan Compare for the Reconciliation process can be run to extract required data used with the ‘Compare reports for the SAS files’ using the Direct Loan Tools for Windows software.

Files that are exported include: DLEXCASH — Provides data about the cash summary DLEXLOAN — Provides a summary of loan disbursements DLEXDISB — Provides data related to individual

disbursement transactions

Note: The Direct Loan Tools for Windows software is available via the FSA download Web Site. Instructions for installing, using, and support of the software are available there. This software is not supported by Sungard Higher Education.

www.sfadownload.ed.gov

DIRECT LOAN RECONCILIATION

DL Reconciliation Tips Timing Issues – possible to not be in balance at any given

time due to the timing of drawdown's, submission of disbursement records and adjustments

Key is to identify reconciling records Closeout letter

Compares GAPS Cash Balance to COD Booked Disbursements

Received from the Department of Ed once year is complete

Successful Closeout declared if equal

MPN Discharge, Expired MPN, and MPNs Due to Expire Report

MPN Discharge Report - COD generates three fixed-length Direct Loan MPN reports. These reports are loaded via the Direct Loan Flat-File Upload process RPRDUxx and updates the Direct Loan Origination Form (RPALORG)

MPN Discharge Report (MPNDISOP)— Notifies schools of MPNs that have become inactive within the last 30 days due to discharges for death and unauthorized signature

Expired MPN Report (MPNINAOP) — Notifies schools of inactive MPNs within the last 30 days due to normal disbursement inactivity

MPNs Due to Expire Report (MPNEXPOP) — Notifies schools of MPNs that are about to expire or become inactive within a specific number of days.

Summary

Discussed the commonly used forms and processes in the Financial Aid Direct Loan module

Reviewed the loan origination and disbursement processes

Reviewed promissory notes, entrance and exit processes

Reviewed Direct Loan change activityReviewed Reconciliation

Other Direct Loan Training Opportunities

Summit 2010 – Pre Summit Direct Loan Training is being planned, watch for this opportunity.

Federal monies may be available for Direct Loan Training if bill is passed to eliminate FFELP programs. Your SunGard Financial Aid Consultants are ready to provide this training.

Current Direct Lending classes are available via Webex, go to SunGard.com and click on Training.

School Resources

https://www.fsawebenroll.ed.gov/PMEnroll/index.jsp To update SAIG mailbox enrollment

https://www.g5.gov To set up school to receive funds via GAPS

http://www.ed.gov/offices/OSFAP/DirectLoan/participating.html For full directions on becoming a DL participant

http://www.ifap.ed.gov/eannouncements/1007CODUpdatedCBTDoc.html

for COD Computer Based Training

April 10, 2023

[email protected]