10 th Anniversary 1999 - 2009

1. 10th Anniversary 1999 - 2009 Direct Loans and Banner Dave Curran, Principal Consultant

2. Before we start…. • Please turn off cell phones or change to silent mode • Please jot down questions and hold until end of section

3. My Background Philadelphia, PA Native and Resident • BS, De Sales University , PA • R.O.T.C/Commissioned at Lehigh University • M.B.A, Oklahoma City University, OK Former Director of Financial Aid • University of Texas at San Antonio, TX My Current and Former Financial Aid & Self-Service Implementations • Georgetown University (FM/IM INAS, Undergraduate, Graduate, Law, Medical and International; School of Foreign Service Doha, Qatar) • Brown University (FM/IM INAS, Undergraduate ,Graduate and Medical) • Temple University (Undergraduate ,Graduate, Law and Medical) • Villanova University (FM/IM INAS, Undergraduate ,Graduate)

4. Agenda Information for clients switching to Direct Loans Overview Banner Set up Banner Day-to-Day Processing Question and Answer

5. Differences: Direct Loans vs. FFELP You will not be dealing with multiple lenders, guarantors, servicers, or disbursing agents COD DL reporting is similar to COD Grants reporting Loan processing is controlled by FAO, not the guarantor Return of loan funds is accomplished through COD reporting process, similar to grants Ineligible funds for one student may be used to pay another student instead of returning funds One MPN for the student, even if enrolled in different DL schools over the years Requires year end reconciliation

6. Advantages of Direct Loans Financial Aid Office controls the process Schools chooses when to disburse loans Require acknowledgement of PN? Of COD origination? No need to send hold and release request to guarantor No need to import EFT roster Minimal involvement for Bursar Office Response files from COD are received in a matter of hours

7. Becoming a Direct Loan Participant Currently the completion of process could take up to six months Submit the Electronic Application for Participation to be approved Send e-mail request to actively participate and receive final approval Complete or update SAIG mailbox enrollment Set School up to receive DL funds via GAPS Contact COD school relations for assistance in: Updating DL contact information Sign up to receive DL Bulletins Select DL Report options Establish promissory note process Request Entrance Counseling files

8. Decisions to be made Will the school use the electronic MPN? Will acknowledgement of MPN be required for disbursement? Will acknowledgement of origination record be required for disbursement? How often to receive Entrance Counseling files? How to communicate with students on changes – Remember! All new DL borrowers must complete a new MPN. (Some schools also require a new Entrance Counseling from each student, although this is optional.)

9. Overview To outline the set-up process for direct loans Explain the day-to-day or operational procedures for direct loans

10. Part 1 – Setup

11. Direct Loan Setup RESOURCES TO REVIEW: SGHE Publication “COD Handbook” Loan Processing chapter, in the Banner Financial Aid User Guide Banner Help > Online Help on that specific form Annual Spring Banner Financial Aid Release contains updates for federal loan processing as well as COD processing

12. Direct Loan Setup OTHER HELPFUL RESOURCES: Direct Loan listserv National Direct Student Loan Coalition http://www.directstudentloancoalition.org/ Direct Loan Reference Material available at https://www.fsadownload.ed.gov/ Direct Loan Simulations and CBT’s http://www.nasfaa.org/publications/2008/eacodcbt102308.html

13. Direct Loan Setup AR Creates Detail Codes TSADETC– Detail Code Control Form FA Creates Fund Codes & Characteristics RFRBASE–Fund Base Data Form RFRMGMT– Fund Management Form Enter/View DL School Code RORCODI – COD Entity ID Rules ROAUSIO – US Specific Institutional Financial Aid Options

14. TSADETC (Detail Code Control Form) This form is owned by AR and is used to create the detail codes that are associated with FA funds on the RFRBASE form. Ask Student Accounts personnel to establish loan fund detail codes for Direct Loans. Names as shown above will appear on billing statement.

15. RFRBASE (Fund Base Data Form) • Create Fund Codes & Characteristics. • Must create separate fund codes for each Direct Loan fund: • Direct Sub • Direct Unsub • Direct PLUS • Can have multiple Direct Loan fund codes for each loan type if desired.

16. RFRMGMT (Funds Management Form) The Rebate Fee % and the Loan Fee % are Required. The Interest Rate is Optional. You must - Select Direct Loan Indicator

17. RORCODI (COD Entity ID Rules) Enter School’s Reporting ID, Source ID, Federal ID and DL School Code - Indicate which record is your Institutional Default The DL School Code will then display on ROAUSIO.

18. ROAUSIO (US Specific Institutional Options Form)- ROAINST Complete Loan Options - Loan Type of Both (or Direct) - Indicate Multi-Year Note Eligibility - Enter Entrance and Exit Requirements

19. Direct Loan Setup (cont.) Setting the Initial Loan Status RTVLNST – Loan Status Validation Form RPRLOPT – Loan Options Form Prom Note Disbursement dates RPRLPRD – Loan Period Base Data Form

20. RTVLNST (Loan Status Validation) Create Loan Statuses Prevents disbursement memos. Used for all loan processing, Direct, Electronic and Manual. “Hold” codes stop processing until removed. Note: Initial Loan Status should be Active as the status is only updated manually.

21. RPRLOPT (Loan Options Form) School determines if PN and/or Disbursement is required before extracting origination School determines if Acknowledgement of Origination and/or Prom Note is required before disbursement

22. RPRLPRD (Loan Period Base Data) Create Loan Periods Create a disbursement schedule for each loan period on the 2nd page of this form

23. Direct Loan Setup (cont.) Setting the Class Codes RPRCLSS – Class Code Translation - Associate Class Code from RNANAxx to Class Code and Level in the Student System Review Delivered Federal Rules RPIFEDR – Federal Rules Inquiry Form

24. Direct Loan Setup (cont.) The COD records must contain the state and nation codes from these validation tables. RTVCDST – COD State Codes RTVCDNT – COD Nation Codes If the institution uses other codes for states/nations, the crosswalk field can be updated to translate for COD REREXxx process will translate the school’s codes to the correct values needed for COD

25. GJAPDFT for Loan Application Creation Define parameters for the Loan Origination Process RPRLORC This is the same process you use to set up parameters for Electronic Loans for RPRELAP Default parameters must exist for each user who has authority to create loan applications on-line This enables the user to create the origination record by clicking on ‘Create Loan Applications’ in the options menu on the award form (RPAAWRD).

26. Set-Up Forms specific to FFELP Processing RTVCINT – Certification Initials Validation Form - Establish certification initials for each staff that processes loans, if desired SPAIDEN – General Person Identification – create non person record for each lender, guarantor, and servicer RPRLNDR – Lender Base Data - Establish address information about a lender as well as to link the lender ID in SPAIDEN to the Guarantor or Insurer ID in SPAIDEN RPRLNDA – Lenders/Disbursing Agents Rules - Link a Lender ID with a Servicer ID to expedite transmission on hold/release records

27. Part 2 – Day to Day Operations

28. Day-to-Day Processes Award & Create Direct Loan: …Offer or Accepted Allowed Submit Origination to COD Optional - Execute MPN Optional - Submit MPN to COD Disburse Direct Loan & submit Disbursement to COD Import Response from COD Repeat 5 & 6 for all Disbursements Reconcile Direct Loan Funds

29. Booking a Loan A booked loan is the point at which an obligation has been established between the borrower and the Department of Education (DE) to repay a Direct Loan. There are 3 basic components that must be established before a loan is declared as booked by the DE If COD has received and accepted A loan origination record A completed and signed promissory note A disbursement record

30. Direct Loan Originations

31. Loan Origination Process Flow RPALORG REREXxx RPALORG Create Origination Records REREXxx_yyyyy.xml Updates Origination Record Updated by RPRLORC process (Enter Parent Info on RPALORG for PLUS loans as needed) REASTID FTP CRDLxxIN file to local PC. Send file to COD Creates Student Identifier Record RPRLORC REICODD Create Loan Origination Updated with batch information Receive acknowledgement file crdlxxop FTPto DATAHOME directory Updated by RERIMxx process Start RPAAWRD RPALORG REASTID REICODD RPALDSB Award Loans to Eligible Students RERIMxx Import origination Acknowledgement file into Banner

32. Origination Activity Loan funds are first awarded on one of the award forms RPAAWRD or RPAAPMT Students may accept loans on Web or you may enter acceptances manually or in batch

33. Loan records are created either on-line or in batch process May create Originations for Accepted or Offered Loans Schools that choose to send Direct Loan Promissory Notes with the student’s award letter can create Origination records while the fund is still in an offered status. Batch process can be run globally or with a population selection Prom notes may be created immediately after loan records are created (if institution is printing PN’s) Origination Activity - Loan Origination Process RPRLORC

34. Origination Activities RPALORG - Federal Direct Loan Origination Form Major blocks Loan Information Summary block Promissory Note Summary block Loan Disbursement Summary block Disbursement Detail block Student Data block Parent Data block

35. This process extracts loan originations to be sent to COD for all records in a ‘R’eady or ‘N’ot Ready status on the RPALORG form. Can be run globally or with population selection Can be run to extract all Direct Loan activity, changes only, or loans without changes Output CRDLxxIN Transfer File to PC to send to COD via EdConnect REREXxx Process updates the COD Document Control form - REICODD Origination Activity – COD Extract - REREXxx Process

36. Origination Activities (cont.) REICODD - COD Document Control Form Document Control Form Information COD Document ID Extract Date Receipt Date Receipt Status Response Date Response Status

37. Origination Activities (cont.)REICODD – COD Document Control Form

38. Origination Activity – COD Import Process RERIMxx COD returns file as crdlxxop RERIMxx loads incoming file into Banner Forms updated with this process RPALORG - Federal Direct Loan Origination Form REICODD – COD Document Control

39. Direct Loan Promissory Notes

40. Promissory Note Activities When running RPRLORC process to create the Direct Loan Origination Records you will complete parameters pertaining to Promissory Notes. School Prom Note Status (Required) - indicates whether the student is expected to complete a paper or an E-MPN promissory note. If COD is going to use the Electronic Prom Note – choose Q If COD is going to print a Prom Note – choose R If school is going to print the Prom Note – Choose R and follow the Promissory Note Printing procedures. REREXxx informs COD “who” will handle the Prom Note

41. DL Day-to-Day Process in Banner Q – E-MPN Student executes MPN online at DL website School receives and uploads response file crpnxxop – review resulting report to identify students who have signed an e-MPN, but do not have an RPALORG record in Banner

42. DL Day-to-Day Process in Banner R – Paper MPN REREXxx – Parameter 05: Promissory Note Print 0 = Schools prints from Banner R = COD prints, sends to school S = COD prints, sends to borrower

43. DL (School Prints) Promissory Note Flow Start RPRPNPT RPALORG RPAPROM Print Promissory Notes and address labels Updates Prom Note Record Mail Prom Notes to Student Student returns Prom Note RPAPROM RPALORG Log receipt of Prom Note RPALORG RPAPROM RPAPROM RPALORG RPRDLPM Create Prom Note Manifest Updates Prom Note Record Updates Prom Note Record Receive Prom Note Acknowledgement CRPNxxOP on local PC with EDConnect software Mail Manifest to COD COD will send back an Acknowledgement file RERIMxx Load Prom Note Acknowledgement

44. Promissory Note Activity Users must still allow the student the option of signing a paper promissory note even if choosing Q - E-MPN

45. Promissory Note Activity RPRPNPT Process Paper promissory notes will print for all students whose prom note status on RPALORG is “R”eady to Print Loans with a prom note status of “Q” EMPN Ready will be excluded from printing. If student opts to sign paper MPN, prom note status is manually changed to “R”

46. Promissory Note Activity RPRPNPT Process Output: rprpnpt.lis Alpha listing of printed notes rprpnpt.li3 Used to print mailing labels rprpnpt.li4 Contains Sub and Unsub MPNs rprpnpt.li5 Contains PLUS MPNs rprpnpt.li6 Contains Grad PLUS MPNs

47. Promissory Note Activity RPRPNPT Process Once the student has returned the signed promissory note, the signature can be noted on the following forms: RPALORG - Direct Loan Origination RPAPROM – Promissory Note RRAAREQ – Applicant Requirements ROASMRY – Applicant Summary

48. Prom Note Activities (cont.) Information housed on Promissory Note form RPAPROM and the Promissory Note block of RRAAREQ Fund Code & Description Term Code Direct Loan Sequence Number Direct Loan Status Indicator Satisfied Indicator & Date Effective Date

49. RPAPROM (Promissory Note Form)

50. Promissory Note Activity RPRDLPM Process This process produces the Promissory Note Manifest of signed notes not previously manifested Prom notes are batched in groups and mailed to the COD Users can control the size of the batch