Posted Date:July 16, 2010
|Author:||William Leith, Service Director, Program Management, Federal Student Aid|
Subject: Reminder of Origination Fee Reduction for Direct Subsidized Loans and Direct Unsubsidized Loans
As explained in a February 4, 2010 Electronic Announcement posted on the Information for Financial Aid Professionals (IFAP) Web site, the origination fee for Direct Subsidized Loans and Direct Unsubsidized Loans was reduced for 2010-2011. The February announcement provides operational guidance for schools and third party software providers on implementing these latest reductions in the origination fee.
In the past few months, many Direct Subsidized Loan and Direct Unsubsidized Loan awards rejected because the correct origination fee was not included with the award and/or was not used to calculate the award and its disbursements. For this reason, we want to remind schools of the previously provided guidance that is critical to successfully implementing the origination fee reduction for Direct Subsidized Loan and Direct Unsubsidized Loan awards.
We ask that schools carefully review all disbursement dates, origination fee values, and up-front interest rebate values prior to submitting records to the Common Origination and Disbursement (COD) System. This is particularly important if an award was originally submitted with an earliest disbursement date on or before June 30, 2010, but the earliest disbursement date has subsequently changed to on or after July 1, 2010.
Again, complete information is provided in the February 4, 2010 Electronic Announcement.
If you have questions about COD System processing or the origination fee reduction, contact the COD School Relations Center at 800/848-0978. You may also e-mail CODSupport@acs-inc.com.