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(Direct Loans) Subject: Supplemental Information - Online Direct Loan Entrance Counseling Functionality

Posted Date:May 28, 2010

Author: William Leith, Service Director, Program Management, Federal Student Aid

Subject: Supplemental Information - Online Direct Loan Entrance Counseling Functionality

We previously posted guidance about Direct Loan Entrance Counseling in a March 19, 2010 Electronic Announcement on the Information for Financial Aid Professionals (IFAP) Web site. This announcement and its two attachments supplement the information in the earlier announcement by explaining the two Web sites where a borrower may complete online entrance counseling and how the processing impact to schools differs based on which Web site a borrower uses to complete entrance counseling.

As a reminder, first-time borrowers are required to complete Direct Loan Entrance Counseling prior to receiving the first disbursement of a Direct Loan. However, a borrower who is receiving his or her first Direct Loan is not required to complete entrance counseling if he or she has previously received the same type of loan through the Federal Family Education Loan (FFEL) Program.

Online Direct Loan Entrance Counseling Locations

Online Direct Loan Entrance Counseling can be completed at two Web sites:

Depending on the Web site, the information in the entrance counseling session is different in format and presentation. However, regardless of which location a borrower uses to complete entrance counseling, the material meets all federal requirements.

Note: The StudentLoans.gov Web site will eventually be the only source for entrance counseling offered by Federal Student Aid. While an end date is not known at this time, Direct Loan schools that currently use the Direct Loan Servicing Online Web site for entrance counseling should begin the process of transitioning their students to the StudentLoans.gov Web site, as soon as it is convenient for both the school and its student borrowers.

Summary of Operational Impacts

If a borrower completes entrance counseling via the StudentLoans.gov Web site,

  • The school will receive a response file from the COD System (Document type “EC” and message class CRECMYOP).
  • The school can use the COD Web site to search and view entrance counseling results.
  • Pre-formatted reports are not available at this time, but are being considered as future enhancements.

If a borrower completes entrance counseling via the Direct Loan Servicing Online Web site,

  • The school will not receive a response file from the COD System.
  • The school can use the Direct Loan Servicing for Schools Web site to search and view entrance counseling results.
  • Pre-formatted reports are available. The reports can be sent to the school on a regular basis or can be requested “on-demand” through the Direct Loan Servicing for Schools Web site.

Contact Information

If you have questions about this announcement or its attachments, contact the COD School Relations Center at 800/848-0978. You may also e-mail CODSupport@acs-inc.com.

Last Modified: 05/27/2010