Posted Date:December 8, 2011
Foreign School Update ID: FS-2011-09
|Author:||William Leith, Service Director, Program Management, Federal Student Aid|
Subject: Direct Loan Origination Tool Processing Reminders - Disbursement Release Indicator and MPN Filter
In July 2011, we implemented additional Common Origination and Disbursement (COD) System functionality that included changes to the Direct Loan Origination Tool (DLOT). The functionality was explained in a Foreign School Update (FS-2011-03) posted on the Information for Financial Aid Professionals (IFAP) Web site on July 7, 2011.
In this update, we provide processing reminders about two DLOT features: the Disbursement Release Indicator (DRI) and the Master Promissory Note (MPN) filter.
Disbursement Release Indicator
As explained in FS-2011-03, the DLOT was enhanced to automatically populate the DRI field. At the time a school originates a loan, if the disbursement date is up to seven days in the future or any date in the past, the DLOT will default the DRI to a value of “True,” to indicate an actual disbursement. If the disbursement date is more than seven days in the future, the DLOT will default the DRI to a value of “False,” to indicate an anticipated disbursement. If a school does not want take advantage of the automatic update of the DRI, it must originate the loan more than seven days before the first anticipated disbursement date.
Note: When sending disbursement dates that are in the future, a school must remember to change the disbursement date if the actual date the disbursement is made is different than the date that was originally sent to the COD System.
In addition, once the DRI is set to a value of “True,” it cannot be changed to a value of “False.” As a result, if the DRI has been set to “True” and the school does not disburse the funds to the student, the school must reduce the disbursement amount to zero.
MPN Filter Parameters
When using the MPN filter in the DLOT (during Step 1, Selecting Students), the list of students that have MPNs may include students with MPNs used to borrow loans in previous academic years. It does not identify if students have an MPN for the new academic year. As an alternative, we suggest that a school search for unlinked MPNs by date range or by student SSN via the COD Web site’s MPN Search page to determine which students have completed a new MPN. Some schools may also be able to use the available MPN reports, such as the weekly Direct Loan Completed MPN Report.
If you have questions or need assistance after you read this update, e-mail your school’s Federal Loan School Support Team Point of Contact at the address he or she provided. If you are not sure who your Point of Contact is, you can e-mail DLOPS@ed.gov.
Alternatively, you may contact the COD School Relations Center at 716/284-7575 or by e-mail at CODSupport@acs-inc.com.