Summary: This message provides instructions for setting up newly originated loans within EDExpress, Version 5.3
Author: CPS - Central Processing System (CPS)
Posted on July 9, 1999
The Department of Education is delighted that we are able to offer students a reduction in their Direct Subsidized and Unsubsidized loan origination fee for 1999-2000. This message provides instructions for setting up newly originated loans within EDExpress, Version 5.3. Unfortunately, the timing of this change will necessitate an adjustment to existing loans so we are also providing instructions on how to make these changes.
SETUP FOR NEWLY ORIGINATED LOANS
There is a one-time procedure that should be performed at the Setup level to accommodate the Origination Fee Reduction for Direct Subsidized and Unsubsidized Loans for all newly originated loans with a first disbursement on or after August 15, 1999.
The loan percentages for Stafford and PLUS loans are now processed separately. You can select the origination fee percentage at both the default and loan record level.
At the default level, you set an origination fee for Stafford and PLUS loans by entering Direct Loan Setup. Enter the correct fee percentage for your Stafford loans in the Stafford Fee field. You must also set the correct fee for PLUS loans using the PLUS Fee field.
To set the origination fee for an individual loan, a new field, Fee Percentage, is located on the Loan Tab in the lower right hand corner. This option is available when the loan status is N or when you have adjusted a loan to $0.
ADJUSTMENTS TO EXISTING LOANS
Steps to help you with the process of changing existing loans to the new fee percentage are:
1. You should print a list of all loans for which you wish to change the origination fee. This list should include the borrowers name, loan ID, loan amount requested and loan amount approved. This information is used later in the process.
2. Reduce the loan amount requested, the loan amount approved and all anticipated disbursements to zero. We do NOT recommend that you use an ACCESS 97 program to do this as change records will not be generated and your disbursement records will be rejected by the LOC.
3. If you have already exported these origination records to the LOC, you MUST export the origination change record. The change records adjust the loan to zero at the LOC and enables the next step to be performed.
4. Once you receive the change record acknowledgement, go into Setup and change the Stafford Fee Percentage from 4% to 3%. (Remember: You must have EDExpress Version 5.3 loaded).
5. A new field added to the Loan Tab called Fee Percentage MUST also be manually changed from 4% to 3% for all existing loans. This field cannot be updated while the loan is active (not at $0 for loan amount requested and loan amount approved).
6. You can now enter the loan amount requested and loan amount approved either manually (using information from step 1) or through an import external change record. The software will recalculate the anticipated disbursement fees and net amounts using the new Direct Loan System Setup information for fee percentage.
7. You are now ready to export the origination change record to the LOC for processing.
We regret that a simple solution does not exist for changing existing loans to the new origination fee level. However, we believe that the extra effort it takes to make these adjustments will be offset by the benefit your students will receive from this fee reduction.
If You Have Any Questions
If you have any questions regarding these procedures, please contact CPS Customer Service at 800/330-5947 or via email at CPS@NCS.COM.