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(FS-2010-08) Subject: Operational Guidance - Temporary Workaround Process for Resolving Citizenship Status Rejects

Posted Date:November 10, 2010

Foreign School Update ID: FS-2010-08

Author: William Leith, Service Director, Program Management, Federal Student Aid

Subject: Operational Guidance - Temporary Workaround Process for Resolving Citizenship Status Rejects

In this update, we explain a workaround process for resolving citizenship status rejects when processing Direct Loan awards using the Direct Loan Origination Tool (DLOT).

Currently, when a school processes a Direct Loan award using the Direct Loan Origination Tool (DLOT), the student’s citizenship status is pulled from the Central Processing System (CPS) and cannot be updated. In some cases, the CPS record reflects the student as ineligible for aid even though the student has documentation to reflect that he or she is a U.S. Citizen or an eligible non-citizen. Because the school is unable to change the status via the DLOT before sending the award, it rejects with Common Origination and Disbursement (COD) Reject Edit 013 (Citizenship Status Indicator for PLUS Borrower is not eligible) or COD Reject Edit 014 (Citizenship Status is not eligible for this award).

In February 2011, we are planning to implement changes to the DLOT that will allow a school to update the citizenship status within the tool. In the meantime, to fix the award, the school must use the COD Web site.

Resolving Citizenship Status Rejects for Direct Loan Awards

A school can correct the citizenship status for Direct Loan awards via the COD Web site. In an attachment to this update, we provide step-by-step instructions to do so.

Students Must Correct Documentation Errors

To avoid problems in the future, schools should direct any student with conflicting information to correct his or her citizenship status with the Social Security Administration (SSA) as soon as possible.

If the student’s immigration status has changed or he or she became a U.S. citizen, the student must inform the SSA to update its records. To update or correct immigration status or citizenship, the student must show proof of the new status or citizenship. For more information, visit http://www.socialsecurity.gov.

As a reminder, The ISIR Guide provides information on acceptable proof of citizenship and can be found at the FSA Download Web site at www.FSADownload.ed.gov. The ISIR Guide also explains codes and flags that appear as FAA information on the ISIR.

Contact Information

If you have questions or need assistance after you read this update or its attachment, e-mail your school’s Direct Loan enrollment team specialist (Point of Contact) at the address he or she provided. Alternatively, you may contact the COD School Relations Center at 716/284-7575.

Last Modified: 11/09/2010