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Tips on dealing with Edit Comment Codes for Disbursements

PublicationDate: 4/13/2000
Summary: Tips on dealing with Edit Comment Codes for Disbursements
Author: General Manager: SFA School Channel

Posted on April 13, 2000

TO: All Destination Points
FROM: Pell Grant Processing
RE: Tips on dealing with Edit Comment Codes for Disbursements

THIS MESSAGE: Will give you some helpful hints on understanding and correcting Edits 403 and 406 which may be received when processing Pell Grant Disbursement Records

What is an edit 406 and how can I correct it?

An edit comment code 406 (or 506 edit code for Special Disbursement) is received when the reported disbursement is out of the range of possible valid disbursements. The "range" is determined by the Origination Award Amount accepted on the Origination record for the student. Schools may at anytime “correct” the origination record accepted by RFMS in order to give the recipient the amount of funds he or she is entitled to based on actual enrollment status,
cost of attendance, and the EFC on the Pell-eligible ISIR. You can “correct” an Origination record by submitting a new Origination record. The RFMS maintains and refers to only the most current origination record available when processing disbursements.

If an applicant has more than one Pell-eligible transaction with different EFCs, we expect the FAA to use professional judgment or conduct verification to determine which transaction best represents the student's financial status. Schools should also verify that the Payment
Methodology and Academic Calendar were reported correctly on the origination record because this may also impact the accepted origination award amount.

Schools do not need to correct the accepted originated amount downward if the recipient is disbursed a lesser amount; however, they must correct information on the Origination record if the recipient is entitled to a greater amount than allowed by the accepted origination award
amount. Changes to increase the originated award amount would normally be due to the student increasing his or her enrollment status (i.e., half-time to full time) or submitting asset/liability information changes through the application processing system that result in a lower EFC.

Why did I receive a 403 edit code?

An edit comment code of 403 is received when the Disbursement Reference Number is invalid, duplicated, or missing. Each disbursement record must have a unique disbursement reference number between 01-90. This number must be unduplicated.

The only exceptions are when a disbursement record is rejected or the whole disbursement batch has been rejected. After receiving back a rejected disbursement record and making the
appropriate corrections the disbursement record may be resubmitted with the same disbursement reference number. If it is a batch that has been rejected, after corrections have been made to the batch the same disbursement records with the same disbursement reference numbers may be used and resubmitted.

Please do not regenerate a batch of disbursement records if it appears that the batch has not been acknowledged and returned to you. If you are missing an acknowledgment for a batch of disbursements, please call the Pell Grant Hotline at 1-800-4PGRANT (800-474-7268) and verify if the batch was received and processed. By regenerating a batch of disbursement records that were already processed by RFMS, you are sending a batch of duplicate disbursement reference numbers, and those records will be rejected.

Last Modified: 04/12/2000