Setting Up Direct Lending

The system assigns and displays a unique numeric identifier when you create a destination.

This should display Direct for direct lending.

Enter the tolerance value to determine the amount difference that the system should allow with loans.

This field does not apply to direct loans.

This field does not apply to direct loans.

Select the servicer ID for direct lending. This value is delivered with your system.

The system displays the OE Cd and Branch for the Servicer ID that you select.

Select Servicer for direct lending. The physical destination refers to the destination that you intend to receive the loan application.

Select the default promissory note print code to report to COD on each individual loan award. Value updates the COD Promissory Note Print Code field. Select the appropriate option depending on your institution's arrangement with COD. The Loan Print Option can also be overridden on an individual loan application level.

COD processing recommends leaving the Loan Print Option blank. If left blank, the 'Promissory Note Print Code' tag is not submitted, and the school's Promissory Note Print Indicator is set to 'Y'. When the Promissory Note Print Indicator is set to 'Y', this indicates to COD that the loan promissory note correspondence is eligible to be sent electronically by COD.

See the U.S. Department of Education's Common Origination and Disbursement (COD) Technical Reference, Electronic Master Promissory Notes and Submitting a Promissory Note Print Code.

• Destination Prints (Sends to Borrower) – COD prints and sends to borrower on paper format.

• Destination Prints (Returns to School) – COD prints and sends to school on paper format.

• School Prints – School prints on-site and provides to borrower.

• Destination Reprints – COD reprints and sends to borrower on paper format.

• Destination Reprints (Sent to School) – COD reprints and sends to school on paper format.

Select this check box to save the page without having designated a Guarantor ID, Lender ID, and Servicer ID. But, this does not apply to direct lending, so you can save the page with only the Servicer ID without selecting this check box.

Select Servicer for direct lending.

Select Servicer for direct lending.

Select Servicer for direct lending.

Identify the loan category for the loan destination to process. The loan categories include PLUS, Sub/Unsub, Subsidized, and Unsub. The category Sub/Unsub does not apply to direct lending. Direct lending institutions should use Subsidized, Unsub, and PLUS. You should add a loan category for all three Direct Lending loan types: subsidized, unsubsidized, and PLUS.

This field does not apply to direct lending.

Identify the loan processing level that the loan destination performs for the corresponding loan category. For direct lending, select Direct for all of your loan categories.

Select the field to change. The change field numbers correspond to those assigned by COD, as defined in the COD Technical Reference.

Indicates whether the specified change field number represents a demographic or financial change.

Select the parameter for each field.

No Chg (no change). The system does not consider the specified field during change processing. When you make changes to fields to which this change parameter is assigned, the system does not create a change transaction.

Spnd Red (suspend reduced). This is used for financial change types only. If the change results in a reduced disbursement amount, the system suspends the loan.

Suspend When you make changes to fields to which this change parameter is assigned, the system creates a change transaction and places the loan on hold. This enables you to review the loan to determine whether the change is appropriate. If the change is fine, you can remove the hold.

Indicate whether your loan institution can originate All Loans (both FFELP and direct lending) Direct (Lending only), or FFELP (only). Alternative loans are not affected by this setting.

Indicate where the loan disclosure is printed. Select from COD, Reprint, and School. Reprint indicates that the Department of Education has authorized the institution to reprint copies of the Direct Loan Disclosure Statement. In most cases, you should select COD.

Indicate the source for the student's Social Security Number, CC (Campus Community) or ISIR.

Enter your DUNS ID. The Department of Education assigns the DUNS number to the reporting institution.

Enter your school code for direct lending. This field is hidden if your school does not participate in the direct lending program. School code is used to create the loan application ID for COD loan application processing.

Enter the Common School ID number that is assigned to your institution by the U.S. Department of Education. This value is used as the COD Routing ID for students associated with the context School Code, Career, and FFELP/Direct Participant level.

Select to activate the COD Common ID field.

Displays as "checked" (default value) and is required for Direct Loan processing.

Select this check box if your institution as been approved as an EDE special school.

Use this number to prioritize the list of contacts. The person with a contact number of one is considered the primary contact.

Enter the name of the loan officer.

Enter the title of the loan officer.

Enter information about the functional area that this contact person administrates.

Select Direct for direct lending.

Indicates the default loan destination. Select the loan destination number that you created for this processing year for direct lending COD. The loan destination number is created on the Loan Dest Profile page.

Select the servicer's mailbox type of None, Internet, or Compuserve.

Enter the servicer's mailbox identification or address to which data files are sent when the files are transmitted using the internet or a private communication network.

Select Subsidized, Unsubsidized, or PLUS depending on the type of loan that you are defining. Do not select any option except one of these for direct lending. If you select PLUS, a Graduate PLUS Indicator check box appears. Select the check box for Grad PLUS loans.

Select if loan type is used to identify an additional unsubsidized Stafford loan Financial Aid Item Type awarded specifically for a dependent student with a PLUS Loan denied.

Select the Direct option for direct lending.

For example, to set up a Subsidized Stafford loan processed through direct lending, the Loan Category is Subsidized and the Loan Program is Direct.

Select one of the following.

Borrower: The borrower of the loan receives any refunds from the loan. For example, the borrower could be a parent or guardian for a PLUS loan.

Student: The student receives any refunds from the loan, whether they are the borrower or not.

You can override the loan refund indicator at the loan application level.

Select if a credit check is required for the type of loan. If selected, direct loan disbursements to the students and transmissions to COD do not occur until the credit check is accepted. Select this check box for PLUS loans.

Enter the rate to print on the promissory note for this type of loan and transmitted on the loan origination record. Ensure that the loan fee rate matches the loan fee setup for the financial aid item type you associate with this loan type.

Enter the maximum number of disbursements that are allowed per loan. The recommended values are 20 for Stafford loans and 4 for PLUS loans.

Enter the minimum loan amount that your institution allows. The value should not be less than the COD minimum.

The set ID that you select determines the item types that are available for you to select.

The selection available depends on the set ID that you entered. For direct lending you cannot have multiple financial aid item types associated with the same loan type. You must create a separate loan type for each direct lending item type to process. You cannot share financial aid item types across multiple loan types. If you try to use the same item type with a new or another loan type setup, you receive an error message.

Displays the type of loan fee associated with the item type selected. When you insert a row, you can use the inner scroll bar to view the new rebate loan fee percentage.

Displays the dollar amount of the loan fee for the item type selected.

Displays the loan fee type associated with the financial aid item type. For direct lending you should have a row for rebate and a row for loan fees.

Displays the loan fee percentage charged for the item type selected. These values are from your item type setup. The system also displays the interest rebate provided on the item type setup.

Displays the direct lending version you are using.

This is used for Stafford loans only. When entering an additional disbursement, the system adds the value specified in this field to the current date. This date becomes the anticipated disbursement date on the Origination Change Record for the added disbursement. Use this field to add days to the anticipated disbursement date so the money is actually disbursed later than the anticipated disbursement date.

For example, you can take a loan that is being processed today and use this field to add days to the anticipated disbursement date that is placed on the Loan Origination record. This makes the date reported to the COD later than the disbursement date. This field is not commonly used because generally institutions disburse sooner, not later.

Select when the system allows loans to be disbursed to the student's accounts.

Orig Ack: Disburses loans after you receive the Origination Acknowledgment.

Orig: Disburses loans after you originate the loan.

Orig+PNote: Disburses loans after you receive the origination and promissory note acknowledgments.

PNote Ack: Disburses loans after you receive the promissory note acknowledgment.

Select when the system should allow transmission of disbursement files to COD.

Orig Ack: Transmits direct lending disbursements after you receive the origination acknowledgment.

Orig+PNote: Transmits direct lending disbursements after you receive the origination acknowledgment and COD accepts the promissory note.

Select a Checklist item to associate with the loan type. You define the checklist items available. The primary use of attaching a checklist requirement is to prevent disbursement of loan funds until the required documents on the checklist are completed. You can also use it to send reminders and for statistical reporting.

Some examples of possible checklist items are Direct Loan Promissory Note, Direct PLUS Prom Note, FFELP Promissory Note, FFELP PLUS Promissory Note, Perkins Promissory Note, Health Professional Note, and an Institutional/University Note.

Click this button to automatically populate the Career, Academic Program, Academic Plan, and NSC Classification from the Academic Plan table instead of having to manually populate the table. Please note that even though you may click this button to auto-populate the table, you can still override the values here so that they can be different than what's contained on the Academic Plan table.

Select a NSC Classification value to associate with the Academic Career and Academic Plan. Valid values include:

• Associate's Degree

• Bachelor's Degree

• Certificate – Undergraduate

• Doctoral Degree

• Master's Degree

• Post baccalaureate certificate

• Post doctorate

• Professional

• Unspecified-Grad/Professional

• Unspecified-Undergraduate

Select a corresponding COD Credential Level to associate with the selected NSC Classification. Valid values include:

• Associate degree

• Bachelor's degree

• Doctoral degree

• First Professional degree

• Graduate/professional certif

• Master's degree

• Non-credential programs (preparatory coursework/teacher certification)

• Post Baccalaureate certificate

• Undergrad diploma/cert

Select the term category for the default term enrollment limits of the academic program.

Enter the SULA unit total threshold for each term category. The SULA unit total represents the summed number of Anticipated plus Current plus Remote units for the given SULA Load.

Select the SULA Load value. Values for this field are delivered with your system as translate values.