() Summary: Extended Processing for 2002-2003 Direct Loan Program Year Closeout

July 2004

DLB-04-21

Subject: Extended Processing for 2002-2003 Direct Loan Program Year Closeout

Dear Partner:

A few weeks ago, we provided information about 2002-2003 Direct Loan Program Year closeout (see DLB-04-19 (http://www.ifap.ed.gov/dlbulletins/DLB0419.html). This bulletin supplements the previous guidance by providing more details about extended processing.

Most schools should have an Ending Cash Balance of $0 and Total Net Unbooked Disbursements of $0 by the July 30, 2004 processing deadline. Schools that do not reach zero will be sent a Final Demand letter in early September 2004 (schools with known outstanding COD System issues will not receive this letter). In certain cases, Federal Student Aid (FSA) may grant extended processing to schools. Extended processing allows schools additional time to process affected records following the July 30, 2004 processing deadline.

Schools with outstanding COD System issues

Beginning sometime after August 9, 2004, schools with outstanding COD System issues that have been reported to and tracked by the COD School Relations Center will be granted extended processing. Schools will be notified, in writing, about the timeframe during which they can submit batches. No batches will be accepted for processing until the extended processing approval date is provided. During the extended processing period, schools will continue to receive all regular reports. (If at a later time, these schools need to request additional extended processing time, they must follow the instructions below.)

All other schools

From August 2, 2004 through August 20, 2004, schools that do not have outstanding COD System issues, but believe that they have extenuating circumstances and should be allowed extended processing, must contact the COD School Relations Center via email at codsupport@acs-inc.com to request extended processing. The subject line should include: "Extended Processing" and the school's name and Direct Loan code. In order for the request to be processed, the email must also include the following information:

• School name and Direct Loan code;
• School contact name, phone number, and email address;
• Reason extended processing is being requested, including an explanation of the issues that prevented closeout by the July 30, 2004 processing deadline; and
• Dollar amount of records that will be resolved if extended processing is approved (this should be known).

Schools approved for extended processing will receive an approval letter providing the period during which extended processing will be available. Schools denied extended processing will be contacted by the COD School Relations Center.

In most cases, schools that cannot explain a positive non-zero balance will not be approved for extended processing. These schools should return the money as a refund of cash before the July 30, 2004 processing deadline.

Schools with a negative non-zero balance should ensure that all downward disbursement adjustments are submitted to the COD System before the July 30, 2004 processing deadline.

We appreciate your continued cooperation as we work to close out the 2002-2003 Direct Loan Program Year. If you have questions about this bulletin or need assistance with closeout, please contact the COD School Relations Center at 800/848-0978 or send an email to codsupport@acs-inc.com. Thank you for your ongoing partnership in the Direct Loan Program.

Sincerely,

Jane Holman
Acting Director, Title IV Delivery
School Delivery Channel