Posted Date:July 10, 2009
Author: William Leith, Service Director, Program Management, Federal Student Aid
Subject: Operational Change to Direct Loan and TEACH Grant Funding Effective July 20, 2009
Currently, most schools participating in the William D. Ford Federal Direct Loan (Direct Loan) Program, and all schools participating in the Teacher Education Assistance for College and Higher Education (TEACH) Grant Program receive their funding through the Advance Funded method. In the near future, we will change the maximum amount a school will be able to request in G5.
Effective July 20, 2009, for all schools participating in the Direct Loan Program and TEACH Grant Program under the Advanced Funded method, the maximum amount a school can request will be equal to its Available Balance in G5. The Available Balance is the difference between a school’s Current Funding Level (CFL) and its Net Drawdowns.
If a school tries to request an amount greater than its Available Balance, the school will receive the following error message in G5:
There is a payment error. Payment amount cannot exceed $x,xxx, the available balance for award P###X####.
To resolve this error, a school has a few options.
|1 )||The school can make a new request for an amount that is less than or equal to its Available Balance.|
|2 )||The school can send additional actual disbursement records to the Common Origination and Disbursement (COD) System to receive a funding increase and make a new request once the Available Balance is increased.|
|3 )||The school can contact the COD School Relations Center and request a funding increase.|
Note: Schools participating in the Direct Loan Program under the Pushed Cash method are not affected by this change.
If you have questions about the funding change, contact the COD School Relations Center at 800/474-7268. You may also e-mail CODSupport@acs-inc.com.