Adjusting CommonLine Loan Item Types

CommonLine loans are highly dependent on the Packaging process. During the process of originating, transmitting, and receiving loan information from the loan servicer, changes to the loan award can affect the loan process. Conversely, changes to loan information by the lender can affect the loan award information in the student's package. After a CommonLine item type is awarded and accepted, it is ready for immediate processing by the loan program. The loan is originated and transmitted electronically to the loan servicer. After approval by the servicer, you can update the award in the student's package if the disbursement amounts and fees need to be corrected with the amounts confirmed by the lender. The system performs this automatically by the CommonLine and CRC loan inbound processes. After the loan is guaranteed, adjustments to the loan item type amounts trigger an adjustment to the loan by the loan origination process, and this information is transmitted to the loan servicer.

A problem exists when you change the loan item type while the loan is in transit to the servicer and a response has not yet been received by the school. If this occurs, the notification of the loan guarantee fails to load by the loan inbound processes if the amount of the item type no longer matches the amount of the loan. To resolve the issue, users must determine the proper corrective action. This often requires readjustment of the loan award so that the loan inbound processes can complete their task, and then readjusting again the loan award to the student's true eligibility.

To prevent this problem, Packaging no longer allows loan awards to be adjusted if an originated loan exists for the item type with a loan origination transmission status of Transmitted. Awards can be modified after the loan has been processed by the loan servicer and the approval (or rejection) of the loan has been loaded into the system. In cases where a school must modify the award amount, you can change the transmission status of the loan using the Override Loan Status component. You should perform this action after careful consideration, as additional actions may be required to ensure that the loan is correctly processed to completion.