Publication Date: July 2004
Bulletin ID: DLB-04-19
Summary: Additional 2002-2003 Direct Loan Program Year Closeout Information
Posted on 07-01-2004
July 2004
DLB-04-19
Subject: Additional 2002-2003 Direct Loan Program Year Closeout Information
Dear Partner,
Over the past few months, we have provided information about 2002-2003 Direct Loan Program Year closeout (see also DLB-04-15 (http://www.ifap.ed.gov/dlbulletins/DLB0415.html) and DLB-04-18 (http://www.ifap.ed.gov/dlbulletins/DLB0418.html)). This bulletin supplements the previous guidance. As a reminder, to be considered successfully closed out, your school must have an Ending Cash Balance of $0 and Total Net Unbooked Disbursements of $0, as reflected on your School Account Statement (SAS) Report.
When is the processing deadline?
The processing deadline to submit records is 8:00 P.M. (ET) on Friday, July 30, 2004. The COD System subsequently must accept all submitted records in order to be included in your school's final Ending Cash Balance for 2002 2003.
Any 2002-2003 batches or records received after this time will be rejected and returned to the school.
When is the deadline for drawdowns and/or drawdown adjustments?
Drawdowns and/or drawdown adjustments must also be requested/completed by the processing deadline of 8:00 P.M. (ET) on Friday, July 30, 2004.
How will my school learn its final balance?
In early August, we will produce a final 2002-2003 SAS Report and send it to all schools. Your school will receive this SAS Report even if it is at a zero balance or has previously closed out for this program year. This SAS Report will serve as a final record of your school's official Ending Cash Balance for 2002 2003.
What if my school does not have a zero balance by the deadline?
Schools that are prevented from successfully closing out by the processing deadline because of outstanding COD System issues will be granted extended processing. Following the deadline, we will notify schools with outstanding COD System issues in writing that they have been granted extended processing (see "What is extended processing?" below).
Please consider that, in some cases, a school's ending cash balance in the COD System is due only in part to an outstanding COD System issue. A portion of the school's ending cash balance could be due to the fact that the school has not submitted records or that the school is experiencing a school-specific system issue. We encourage schools to resolve non-COD related issues before the processing deadline.
Schools that have not successfully closed out by the processing deadline and do not have outstanding COD System issues will be sent a Final Demand Letter requesting the outstanding balance to be returned as a refund of cash. If this is not paid by the deadline noted in the letter, a receivable will be established and your school will be billed accordingly. Extended processing will not be automatically granted in these cases.
What is extended processing?
Extended processing allows schools with COD System issues additional time to process affected records following the deadline. Schools granted extended processing will be notified, in writing, about the timeframe during which they can submit batches. (Note: there will be a short period of time between the Program Year Closeout processing deadline and the extended processing approval date during which no batches will be processed.) With extended processing, schools will continue to receive all regular reports for the allotted period. More information about extended processing will be provided in a subsequent bulletin.
What if my school needs assistance?
Schools should contact their Customer Service Representatives at the COD School Relations Center for assistance with closeout. They can be reached at 800/848-0978 or by sending an email to codsupport@acs-inc.com.
We appreciate your continued cooperation as we work to close out the 2002-2003 Direct Loan Program Year and thank you for your ongoing partnership in the Direct Loan Program.
Sincerely,
Jane Holman
Acting Director, Title IV Delivery
School Delivery Channel