Posted Date:February 27, 2015
|Author:||Jana Hernandes, Service Director, Operations, Federal Student Aid|
Subject: Notice to Guaranty Agencies Regarding Modifications to Overpayment Layout Portion of Loan Consolidation Adjustment Payoff Manifests
Adjustment Payoff Manifests are used by loan holders to notify consolidation servicers of overpayments or underpayments of loan payoffs in the loan consolidation process. There are two distinct templates: one for underpayment reporting and one for overpayment reporting. Each template has two possible transmission layouts, one for spreadsheet submittal and one for a flat-file batch submittal. In this announcement we inform the community about changes made to the layouts and action items for Guaranty Agencies.
The information in this announcement is presented as follows:
Changes to Overpayment Layouts of the Adjustment Payoff Manifest
Required Guaranty Agency Actions
Changes to Overpayment Layouts of the Adjustment Payoff ManifestFederal Student Aid has made modifications to the overpayment layouts of the Loan Consolidation Adjustment Payoff Manifest specifically for use with Guaranty Agencies. These changes were made in order to accommodate the reporting of non-cash overpayments of principal and interest and/or cash overpayments of collection costs.
The following changes were made to the overpayment layout for use by Guaranty Agencies:
Replaced “Amount Returned” field on Guaranty Agency version of overpayment spreadsheet layout with “Collection Costs Amount Returned,” “Non-Cash Principal Amount Returned,” and “Non-Cash Interest Amount Returned” fields.
Replaced “Amount Returned” field on Guaranty Agency version of overpayment submittal file layout with “Collection Costs Amount Returned,” “Non-Cash Principal Amount Returned,” and “Non-Cash Interest Amount Returned” fields.
The new overpayment spreadsheet submittal layout and batch file layout are included as an attachment to this announcement.
Note: The underpayment file layouts have not changed since they were implemented in January 2014 with the new Direct Consolidation Loan process and should continue to be used for submission of any and all underpayments to the consolidation servicers.
Required Guaranty Agency Actions
Guaranty Agencies should stop using the previous version of the spreadsheet submittal or batch file layout for overpayment notification to the consolidation servicers effective Friday, March 27, 2015. Beginning on this date, only the new spreadsheet submittal and batch file layouts should be used. If the Guaranty Agency is unable to put the new batch file layout into production usage on Friday, March 27, 2015, the agency should coordinate the transition to the new layout with the consolidation servicers and the agency should use the new spreadsheet submittal layout until such time as the new batch layout can be used.
Underpayments and overpayments must be reported separately on the specified file layouts and cannot be combined on a single file submittal. For example, if there is an underpayment in principal on the loan but an overpayment in cash-based collection costs, an Adjustment Payoff Manifest Underpayment file (or spreadsheet) would be submitted for the underpayment of the principal amount and an Adjustment Payoff Manifest Overpayment file (or spreadsheet) would be submitted for the overpayment of the collection costs. The two transactions described in the example must not be submitted on a single transaction file layout.
We appreciate the support of Guaranty Agencies in implementing the new overpayment layouts of the Loan Consolidation Adjustment Payoff Manifest.
If a Guaranty Agency has questions about using the changed layouts, the Guaranty Agency should contact the appropriate consolidation servicer. Contact information for the consolidation servicers is available on the Information for Financial Aid Professionals (IFAP) Web site’s Loan Consolidation for Loan Holders and Servicers page.