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() Summary: Operational Guidance for Direct Loan Changes to be Implemented June 27-28, 2008

Publication Date: June 27, 2008

Bulletin ID: DLB-08-17

Summary: Operational Guidance for Direct Loan Changes to be Implemented June 27-28, 2008

Posted on 06-27-2008

Dear Direct Loan Colleague:

Over the past several months, a number of regulatory and legislative changes to the terms and conditions of Direct Loan Program loans have required corresponding changes in how schools process Direct Loan data in the Common Origination and Disbursement (COD) System.

We have covered some of these changes in previously released communications. This bulletin and its attachment, "Operational Guidance for Direct Loan Changes to be Implemented June 27-28, 2008", provide additional and, in some cases, new information about the operational implementation of the changes affecting the Direct Loan Program.

Note: Outage information about the COD System implementation was provided in a June 20, 2008 Electronic Announcement posted on the Information for Financial Aid Professionals (IFAP) Web site.

In the attachment, we cover operational information about:

  • Origination Fee Reduction for Direct Subsidized Loans and Direct Unsubsidized Loans
  • Interest Rate Reduction for Undergraduate Direct Subsidized Loans
  • Entrance Counseling for Graduate and Professional Student Direct PLUS Loan Borrowers
  • "Late" Late Disbursements
  • Loan Periods Greater than 12 Months
  • Increased Annual Loan Limits for Direct Unsubsidized Loans
  • Revised MPNs for Direct PLUS Loans and Direct Subsidized Loans/Direct Unsubsidized Loans
  • Option Change for the Direct Loan Electronic Master Promissory Note
  • Changes to Direct PLUS Loan Terms and Conditions
  • Change to "Pnote Search" Screen on the COD Web site

Some changes do not affect processing with the COD System, but may affect a school’s processes. Please review all sections of the attachment as well as the previously released communications.

If you have questions about the information contained in this bulletin, please contact the COD School Relations Center at 800/848-0978 or by e-mail at CODSupport@acs-inc.com.

Thank you for your ongoing partnership in the Direct Loan Program.

Sincerely,

William Leith
Acting General Manager, Application, Operations and Delivery Services