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Setting Up Loan Types for CRC

To set up loan types for CRC, 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 your institution uses in the loan origination process.

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 federal 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

Associate 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. Loan types are used for both CL 4 and CRC.

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, the loan category is Sub/Unsub and the loan program is FFELP. To set up an alternative loan program processed through CommonLine, the loan category is Alt Loan (alternative loan), and the loan program is Alternative.
Loan Refund Indicator

Select from:

Borrower: Select to have the borrower of the loan receive any refunds or overage. For example, the borrower could 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. Designating the student as the recipient for PLUS refunds requires additional setup in PeopleSoft Student Financials.

Requirements

The system enforces the selected requirements during loan origination and validation.

Field or Control

Definition
Loan References Required

Enter reference information on the CommonLine Promissory Note PLUS/Alt and Originate Loans components. Enter the number of references required in the Nbr Ref Rq (number of references required) field.
Nbr Ref Rq (number of references required)

Enter the number of references required if you selected the Loan References Required check box.
Credit Check Required

Select to require a credit check.
Loan Cosigner Required

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

Enter the number of cosigners required if you selected the Cosigner Required Amount check box.
Cosigner Required Amount

Enter the minimum loan amount requiring a cosigner. Enter cosigner information on the CommonLine Promissory Note PLUS/Alt and Originate Loans components. This setting is enforced by the loan servicer.
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.
Max Nbr Disbs (maximum number disbursements)

Indicates the maximum amount of disbursements.
Min Loan Amt (minimum loan amount)

Indicates the smallest amount for which a loan can be originated.

Loan Item Types

Select a setID and an item type. You can have multiple item types associated with the same loan type. You cannot share item types across multiple loan types. For example, to define FFELP Stafford loans where the loan category is Sub/Unsub, enter the subsidized and unsubsidized item types.

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

The system displays the type loan fee, loan fee amount, 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)

Indicates a code to notify loan agencies 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's 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 of 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 created when a loan is originated.

Note: For Direct Loan, the system does not generate an assigned checklist during loan origination. It generates an assigned checklist when you run the print promissory note process.