Over the past few months, we have provided information about 2020–21 Direct Loan Program Year closeout (see the Feb. 16, 2022 Electronic Announcement and the April 26, 2022 Electronic Announcement). This announcement supplements the previous guidance.
As a reminder, to be considered successfully closed out, the school must—
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Reconcile to an Ending Cash Balance of $0 and Total Net Unbooked Disbursements of $0, as reflected on your monthly School Account Statement (SAS) and in your school’s internal records; and
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Complete the School Balance Confirmation form on the Common Origination and Disbursement (COD) website. The Balance Confirmation form can be completed after the school has reconciled to a $0 balance both internally and externally. Once the school has completed their final reconciliation, the school should log in to the COD website. From the School options menu click on the Balance Confirmation link on the left-hand side of the page and follow the instructions on the School Balance Confirmation screen.
When is the Data Submission (Closeout) Deadline?
The data submission (closeout) deadline to submit records is 8 p.m. Eastern time (ET) on Friday, July 29, 2022. The COD System subsequently must accept all records submitted by the data submission (closeout) deadline to be included in the school's final Ending Cash Balance for 2020–21. Any 2020–21 batches or records received after the closeout deadline will be rejected and returned to the school.
Notes:
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Though the data submission (closeout) deadline is July 29, 2022, cash management, disbursement/adjustment reporting, and monthly reconciliation requirements supersede the closeout deadline. A school should be able to reconcile to a $0 balance and close out within a month or two of its final 2020–21 actual disbursements.
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Prior to program year close out, schools should ensure that fields related to Subsidized Usage Limit Applies (SULA), such as academic year dates, loan period dates, loan and/or disbursement amounts, etc., are updated appropriately.
Reminder: After June 27, 2021, the COD System will no longer include Direct Subsidized Loans with an earliest disbursement date on or after July 1, 2021, in subsidized usage calculations. In addition, new borrowers (for COD System purposes, this means borrowers who do not have any Direct Loans on file with a positive balance) will not be flagged with the SULA Indicator if their first Direct Loan has an earliest disbursement date on or after July 1, 2021.
What if a school does not successfully close out by the data submission (closeout) deadline?
Any school that has not successfully closed out by the data submission (closeout) deadline and has a positive Ending Cash Balance will be sent a Direct Loan Demand Letter requesting the return of the outstanding balance as a refund of cash. 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 data submission (closeout) deadline and has a negative Ending Cash Balance will be sent a Direct Loan Negative Balance Letter requesting the resolution of the outstanding balance.
Exceptions to the last processing day of the program year may be made on a case-by-case basis if the school’s processing period extends beyond the data submission (closeout) deadline. Schools falling within this category must contact the COD School Relations Center at the number provided below for further assistance. Once the closeout deadline has passed, requests for extensions to submit new or increased awards, new disbursements, or upward disbursement adjustments may be made via the Request Reopen/Extended Processing link under the School menu on the COD website. Schools do not need to request Extended Processing to process downward adjustments to disbursements or non-financial changes.
If a school has any concerns about meeting the data submission (closeout) deadline, they should contact COD School Relations prior to the deadline for further assistance.
When is the deadline for drawdowns and/or drawdown adjustments?
Drawdowns and/or drawdown adjustments must also be requested and/or completed by the processing deadline of 8 p.m. (ET) on Friday, July 29, 2022.
As a reminder, all refunds for Direct Loan must be returned via G5. Refunds of Cash sent via G5 can take 7–9 days to process and post to the COD System. A school should consider its timing when submitting Refunds of Cash in order for these types of transactions to be reflected in its Ending Cash Balance prior to the deadline.
How will a school learn its final balance?
In early August 2022, Federal Student Aid will produce a final 2020–21 SAS and send it to all schools. A school will receive this SAS even if it is at a $0 balance or has previously closed out for this program year. If a school has not completed reconciliation to a $0 balance prior to the deadline, it is important that its reconciliation be completed using this final SAS. This SAS will serve as a final record of the school's official Ending Cash Balance for the 2020–21 program year and should be kept as part of its reconciliation documentation.
Contact Information
We appreciate your cooperation as we work to close out the 2020–21 Direct Loan Program Year. If you have questions about this announcement or need assistance with closeout, contact the COD School Relations Center at 1-800-848-0978. You may also email CODSupport@ed.gov.