(DLB - 96 - 21) Improvements in the School Reconciliation System for the William D. Ford Federal Direct Loan Program

SFA Information for Financial Aid Professionals
U.S. Department of Education

PublicationDate: 11/1/96 BulletinID: DLB - 96 - 21 DLB-96-21 November 1996 Dear Colleague: We are making a number of improvements in the School Reconciliation System for the William D. Ford Federal Direct Loan Program. One area that is being revised to make it more useful, is the type of acknowledgments codes that you will receive after we process your reconciliation file. Many schools have suggested that we modify these acknowledgements to ensure that they accurately reflect the status of reconciliation records rejected by the Loan Origination Center (LOC). At the time that the 1996-97 EDExpress software and technical references were distributed, we told you about a series of error codes that we would be using in acknowledging records that we could not accept. A listing of these error codes is enclosed with this letter. We have decided to add one additional error code, which has a value of 2. Should you receive back an error message with an error code of 2, it means that an error has occurred which is being researched by the LOC. What that error code actually means is that the Loan Servicing Center has to manually research your disbursement record. On the following reconciliation attempt, records that were flagged with error code 2 will be returned to you as either accepted or with a more specific error reason. In order to be able to provide you with more precise error codes, we will need to add one more day to the processing of your reconciliation file. Therefore, if you submit your file on Monday you will receive it back on Wednesday. However, you may also submit disbursement files and reconciliation files on the same day. Therefore, we believe that the revised reconciliation system will be even more useful and timely than it has been in the past. We expect this new capability to be available within the next two to three weeks; with the earliest date being November 27, 1996. Please note that these new error codes may be used with both year 2 and 3 message codes. We hope that these changes will improve the reconciliation process for all Direct Loan schools. We appreciate your continued support of the Direct Loan Program. Sincerely, Diane M. Voigt, Chair Direct Loan Task Force Enclosure CODEReject Reason ANot in Use BLoan Not Booked - Missing Disbursement Record CLoan Not booked - Missing Promissory Note and Disbursement Record DNot in Use ENot in Use FFee Amount Mismatch GGross Amount Mismatch HLoan Not Booked - Missing Promissory Note IInvalid Value JAdjustment Amount Mismatch KLoan Not Booked - Missing Origination Record and Disbursement Record LNot in Use MMismatch on all Amount Fields NNet Amount Mismatch OLoan Not Booked - Missing Origination Record, Promissory Note, and Disbursement Record PDisbursement Record not Received by LOC QAdjustment Record not Received by LOC RNot in Use SCancellation Record not Received by LOC TCash Receipt not Received by LOC UAlready Reconciled VReturn of Excess Cash not Received by LOC WReconciliation Dates in Error XAmount matches, Date is out of Range YAmount mismatch, Date is correct ZDisbursement, Adjustment, or Cancellation Record has been Rejected by LOC 0Note in Use 1Promissory Note has Been rejected by LOC 2Discrepancy being researched by LOC 3Not in Use 4Not in Use 5Not in Use 6Not in Use 7Not in Use 8Not in Use 9Not in Use