Posted Date: June 30, 2009
Author: William Leith, Service Director, Program Management, Federal Student Aid
Subject: Additional 2007-2008 Direct Loan Program Year Closeout Information
Over the past few months, we have provided information about 2007-2008 Direct Loan Program Year closeout (see the January 30, 2009 Electronic Announcement and the May 1, 2009 announcement). This announcement supplements the previous guidance. As a reminder, to be considered successfully closed out, the school must--
Have an Ending Cash Balance of $0 and Total Net Unbooked Disbursements of $0, as reflected on your School Account Statement (SAS) Report; and
Complete the Balance Confirmation form on the Common Origination and Disbursement (COD) Web site. The Balance Confirmation form can be completed after the school has received a Zero Balance Letter, which is sent to the school via e-mail. Once the e-mailed letter is received, the school should log in to the COD Web site, click the Balance Confirmation link from the School options menu on the left-hand side of the page, and follow the instructions on the Balance Confirmation screen.
When is the processing deadline?
The processing deadline to submit records is 8:00 P.M. (ET) on Friday, July 31, 2009. The COD System subsequently must accept all records submitted by the processing deadline in order for them to be included in the school's final Ending Cash Balance for 2007-2008. Any 2007-2008 batches or records received after the processing deadline will be rejected and returned to the school.
Note: Though the processing deadline is July 31, 2009, a school must meet all existing regulations for drawing funds and reporting disbursements in a timely manner.
When is the deadline for drawdowns and/or drawdown adjustments?
Drawdowns and/or drawdown adjustments must also be requested/completed by the processing deadline of 8:00 P.M. (ET) on Friday, July 31, 2009.
How will a school learn its final balance?
In early August 2009, we will produce a final 2007-2008 SAS Report and send it to all schools. A school will receive this SAS Report even if it is at a zero balance or has previously closed out for this program year. This SAS Report will serve as a final record of the school's official Ending Cash Balance for 2007-2008.
What if a school does not successfully closeout by the deadline?
Schools that have not successfully closed out by the processing deadline and have a positive Ending Cash Balance will be sent a Final Demand Letter requesting the return of the outstanding balance as a refund of cash. Final Demand Letters will be mailed during September 2009. If the outstanding balance is not paid by the deadline noted in the letter, a receivable will be established, and the school will be billed accordingly.
Schools that have not successfully closed out by the processing deadline and have a negative Ending Cash Balance will be sent a Negative Balance Letter requesting the resolution of the outstanding balance. Negative Balance Letters will be mailed during September 2009.
We appreciate your cooperation as we work to close out the 2007-2008 Direct Loan Program Year. If you have questions about this announcement or need assistance with closeout, contact the COD School Relations Center at 800/848-0978. You may also e-mail CODSupport@acs-inc.com.