Posted Date:September 22, 2011
|Author:||William Leith, Service Director, Program Management, Federal Student Aid|
Subject: Forthcoming COD System Update to Accept Single Disbursement Loans Based on Cohort Default Rate
In Dear Colleague Letter GEN-08-12 posted on the Information for Financial Aid Professionals (IFAP) Web site, the Department of Education (the Department) explained that effective for loans first disbursed on or after October 1, 2011, a school whose cohort default rate for each of the three most recent fiscal years for which data are available is less than 15 percent may disburse any Direct Loan in a single installment for any period of enrollment that is not more than one semester, one trimester, one quarter, or four months.
During the period October 21-22, 2011, we will update the Common Origination and Disbursement (COD) System to begin accepting single disbursement loans from schools whose cohort default rate for each of the three most recent fiscal years for which data are available is less than 15 percent.
Until that time, schools that are interested in and eligible for this provision should not submit single disbursement loans to the COD System via batch or the COD Web site. Note: The COD System will continue to accept single disbursement loans for a school whose cohort default rate is less than 10 percent for each of the three most recent fiscal years for which data are available (the provision in effect through September 30, 2011).
We appreciate the community’s patience as we update the COD System. If you have questions about this announcement, contact the COD School Relations Center at 800/848-0978. You may also e-mail CODSupport@acs-inc.com.