Posted Date:July 8, 2010
|Author:||William Leith, Service Director, Program Management, Federal Student Aid|
Subject: Additional 2008-2009 Direct Loan Program Year Closeout Information
Over the past few months, we have provided information about 2008-2009 Direct Loan Program Year closeout (see the February 3, 2010 Electronic Announcement, and the May 4, 2010 Electronic 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 30, 2010. 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 2008-2009. Any 2008-2009 batches or records received after the processing deadline will be rejected and returned to the school.
If a school has any concerns about meeting the processing deadline, contact COD School Relations prior to the deadline for further assistance.
Note: Though the processing deadline is July 30, 2010, 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 30, 2010.
How will a school learn its final balance?
In early August 2010, we will produce a final 2008-2009 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 2008-2009.
What if a school does not successfully closeout by the deadline?
Any school that has not successfully closed out by the processing deadline and has 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 October 2010. 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.
Any school that has not successfully closed out by the processing deadline and has 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 October 2010.
Exceptions to these letter processes may be made for a school with processing periods that extend beyond the July 30, 2010 closeout deadline. If a school falls within this category and needs to request an extension to the deadline to complete its processing, it should contact the COD School Relations Center as soon as possible.
What if a school needs further assistance with Direct Loan reconciliation and program year closeout?
We offer a suite of instructor-led, online training sessions on the Direct Loan Program. The webinar training suite consists of six different 90-minute sessions related to key aspects of Direct Loan processing, including specific sessions for Direct Loan Reconciliation and Direct Loan Reports. Complete information about the current training sessions can be found in Dear Colleague Letter ANN-10-23.
A school may also contact the COD School Relations Center for further assistance.
We appreciate your cooperation as we work to close out the 2008-2009 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.