DIRECT LOAN

TROUBLESHOOTING

GUIDED DISCUSSION S P R

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TR

AI N

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MAKING A DIFFERENCE 2014-2015

Aaron Peterson, Anoka-Ramsey Community College

Angela Lofgren, Metropolitan State University

Jody Stadler, University of Minnesota -Twin Cities

DISCUSSION TOPICS

• NSLDS Over-awards

• Resolving Default

• COD

• PLUS Processing

MAKING A DIFFERENCE 2014-2015

NSLDS OVER-AWARDSOver-award Flags• 2014-2015 FSA Handbook p. 4-60• If a student is over-awarded and your school has already

disbursed Direct or PLUS loan funds, you have a few options:• The second or subsequent disbursement can be canceled or reduced

• If the over-award situation occurs after Direct Loan funds have been fully disbursed, you do not need to adjust it. However, you might have to adjust the aid package to prevent an over-award of Campus-Based funds.

Documentation• GEN 96-13• Attachment C, Question 37

• NSLDS documentation

Reaffirmation or Promise–to–Pay

MAKING A DIFFERENCE 2014-2015

RESOLVING DEFAULT

Regulations

• GEN 96-13

• Repayment in full (including consolidation)

• Satisfactory repayment arrangements

• Loan rehabilitation

• Know your NSLDS Loan Status codes: 2014-2015 FSA Handbook p. 1-

59

Documentation

• Letter from Loan Servicer

• Unacceptable Documentation

COD… TIPS, TRICKS, AND TESTIMONIALS

How to find the meaning of an Error Code:

Log into COD and then go to the BATCH tab

• Type in student’s SSN and click on the corresponding “Reject” link

What are some “common” Reject codes that administrators encounter?

Remember, contact COD when in doubt! (800)848-0978

PLUS PROCESSING New PLUS Loan Changes Effective March 29, 2015

• EA 2/27/2015• PLUS Loan Counseling Requirement• New <CreditRequirementsMet> tag in Common Record • New Requirements for Determining Adverse Credit:• Bankruptcy, foreclosure, tax lien, default determination

OR• The applicant has one or more debts that are:• 90+ days delinquent• Are in collection or have been charged off during the two years prior

the credit report.

AND• The total amount of the outstanding balance of those debts is

greater than $2,085.00

SUMMARYNSLDS Over-awards:

Resolving Defaults:

PLUS Processing:

Tips and Tricks?

MAKING A DIFFERENCE 2014-2015

AARON PETERSON, Anoka Ramsey Community CollegeAaron.Peterson@anokaramsey.edu

ANGELA LOFGREN, Metro State UniversityAngela.Lofgren@metrostate.edu

JODY STADLER, University of Minnesota - Twin Citiesstad0059@umn.edu

Thank you for attending!