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Setting Up Loan Types

To set up loan types, use the Create Loan Types component (LOAN_TYPE).

This section discusses how to:

Page Name

Definition Name

Navigation

Usage

Loan Type Table

LOAN_TYPE_TABLE

select Set Up SACR, then select Product Related, then select Financial Aid, then select Loans, then select Create Loan Types, then select Loan Type Table

Define the types of loans that your institution uses in the loan origination processes.

CommonLine/NSLDS Xref

LOAN_TYPE_TABLE2

select Set Up SACR, then select Product Related, then select Financial Aid, then select Loans, then select Create Loan Types, then select CommonLine/NSLDS Xref

Link loan types defined for CommonLine processing with the borrower's loans reported by the NSLDS.

Checklist Setup

LOAN_TYPE_DOCUMENT

select Set Up SACR, then select Product Related, then select Financial Aid, then select Loans, then select Create Loan Types, then select Checklist Setup

Assign a checklist to be generated when a loan is originated.

Access the Loan Type Table page (select Set Up SACR, then select Product Related, then select Financial Aid, then select Loans, then select Create Loan Types, then select Loan Type Table).

Image: Loan Type Table page

This example illustrates the fields and controls on the Loan Type Table page. You can find definitions for the fields and controls later on this page.

Loan Type Table page

When you set up a loan financial aid item type, you include specific conditions for processing the loan. You must complete the Loan Type Table page to complete the setup.

Processing

Field or Control

Definition
Loan Category

Select from Alt Loan (alternative loan), PLUS, Sub/Unsub (subsidized/unsubsidized), Subsidized, and Unsubsidized. If you select PLUS, a Graduate PLUS Indicator check box displays. Select the check box for Grad PLUS loans.

Loan Program

Select from Alternative, Direct, FFELP, Health, Perkins, State, and University.

For example, to set up Stafford loans processed through CommonLine, you might specify the loan category as Sub/Unsub and the loan program as FFELP. To set up an alternative loan program processed through CommonLine, specify the loan category as Alt Loan (alternative loan), and the loan program as Alternative.
Loan Refund Indicator

Select from:

Borrower: Select to have the borrower of the loan receive any refunds or overage. For example, the borrower would be a parent or guardian for a PLUS loan.

Student: Select to have the student to receive any refunds from the loan.

You can override this field at the loan application level. Note that additional setup is required in Student Financials to generate refunds to the proper recipient.

Requirements

The system enforces the selected requirements during loan validation when utilizing the corresponding loan edit.

Field or Control

Definition
Loan References Required

Enter reference information on the Promissory Note Plus and Promissory Note Alt pages and Loan Origination components (SFA_CRC_ORIG). Enter the number of references required in the Nbr Ref Rq (number of references required) field.

Loan Cosigner Required

If you select this check box, enter the number of cosigners required in the Nbr Csg Rq (number cosigners required) field.
Cosigner Required Amount

Enter the minimum loan amount that requires a cosigner. Enter cosigner information on the Promissory Note Plus and Promissory Note Alt pages and Loan Origination components (SFA_CRC_ORIG). Note that this requirement is enforced by the loan servicer and not the loan validation process.
Loan Fee Rate

Enter the loan fee rate to print on the promissory note for this loan type. Ensure that the loan fee rate matches the loan fee setup for the item type that you associate with this loan type.

Loan Item Types

Field or Control

Definition
SetID

Select a setID and an item type. You can associate multiple item types with the same loan type. You cannot share item types across multiple loan types. For example, to define FFELP Stafford loans, enter the subsidized and unsubsidized item types.

Note: Based on the business processes defined by your institution, you might need to create multiple loan types for the same loan program.

The system displays the loan fee, description, loan fee amount, loan fee type, and loan fee percent for the item type selected. These values are associated with the item type when you set up the financial aid item type on the Loan Fee Table page.

Access the CommonLine/NSLDS Xref page (select Set Up SACR, then select Product Related, then select Financial Aid, then select Loans, then select Create Loan Types, then select CommonLine/NSLDS Xref).

Image: CommonLine/NSLDS Xref page

This example illustrates the fields and controls on the CommonLine/NSLDS Xref page. You can find definitions for the fields and controls later on this page.

CommonLine/NSLDS (National Student Loan Data System) Xref (cross reference) page

When you originate a CommonLine loan, the system uses the information set up on this page to search for similar loans in the borrower's NSLDS history. If a prior loan is found, the system uses the prior loan information to derive the new loan's destination. This optional feature can be set up in the Loan Institution setup page.

Field or Control

Definition
Alternative Loan Type Cd (alternative loan type code)

The system uses this code to notify loan agencies about the type of alternative loan. Alternative loan codes are assigned by NCHER.
NSLDS Loan Type

Select a loan type to translate the NSLDS loan type that is defined in the NSLDS tables.

For more information, see www.ncher.us

Access the Checklist Setup page select (Set Up SACR, then select Product Related, then select Financial Aid, then select Loans, then select Create Loan Types, then select Checklist Setup).

Image: Checklist Setup page

This example illustrates the fields and controls on the Checklist Setup page. You can find definitions for the fields and controls later on this page.

Checklist Setup page

The values for the Loan Type, Loan Program, and Loan Ctgry (loan category) fields are based on the aid year and academic institution that you selected to access the page.

Field or Control

Definition
Checklist

Select a checklist to be generated at the time the loan is originated.

Note: The system does not generate checklists for direct loans during origination. It generates checklists after you run the promissory note process.