Posted Date: August 13, 2012

Author:  Pamela Eliadis, Service Director, System Operations & Aid Delivery Management, Federal Student Aid

Subject: NSLDS Enhanced Formula for Calculating Unsubsidized Aggregate Loan Limit Amounts

We are pleased to inform the community of an enhancement to the formula we use to calculate aggregate loan limit amounts reflected on the National Student Loan Data System (NSLDS) Professional Access Web site.  Using the enhanced formula, we will no longer include PLUS loan amounts that can be attributed to having been consolidated into a Direct Unsubsidized Consolidation Loan when we calculate a borrower’s unsubsidized aggregate loan amount.

Prior to implementing the enhanced formula, we did not factor out PLUS loan amounts that had been consolidated into a Direct Unsubsidized Consolidation loan when we calculated aggregate loan limit amounts.  This resulted in an inflated unsubsidized aggregate loan amount and, likewise, an inflated combined loan limit amount.  An affected borrower’s school saw the inflated amount on the NSLDS Professional Access Web site and the Institutional Student Information Record (ISIR).

Now that we have implemented the enhanced formula, we will factor out PLUS loan amounts that have been consolidated into a Direct Unsubsidized Consolidation Loan when we calculate aggregate loan limit amounts.  This means that we will not include the consolidated PLUS loan amount when determining and displaying an affected borrower’s unsubsidized aggregate loan amount.  Likewise, the consolidated PLUS loan amount will be factored out of the borrower’s combined loan limit amount.

The enhanced formula logic will flow as follows:

  • Evaluate a borrower’s Direct Unsubsidized Consolidation Loan (D5).

  • Remove Direct Graduate PLUS (D3), Direct Parent PLUS (D4), FFEL Graduate PLUS (GB), and/or FFEL Parent PLUS (PL) amounts from the Direct Unsubsidized Consolidation Loan (D5) amount.

  • Include the uninflated Direct Unsubsidized Consolidation Loan (D5) amount in the unsubsidized aggregate loan amount calculation.

  • Include the unsubsidized aggregate loan amount in the borrower’s combined loan limit amount.

Enhanced Formula Reflection on NSLDS Web Site, Prescreened ISIRs, and Postscreened ISIRs

On August 10, 2012, all unsubsidized aggregate loan amounts reflected on the NSLDS Professional Access Web site were updated, if applicable, using the enhanced formula and no longer include consolidated PLUS loan amounts.  In addition, all prescreened 2012-2013 ISIRs processed after August 10, 2012 will include unsubsidized aggregate loan amounts calculated using the enhanced formula.

The NSLDS postscreening process automatically detects differences in updated Direct Loan amounts for borrowers who were previously reported as exceeding the combined loan limit and creates new postscreened ISIRs that reflect the new updated aggregate balances.  As a result of the enhanced formula implementation, schools may receive an increased number of postscreened 2011-2012 and 2012-2013 ISIRs that will be generated on August 14, 2012.  These ISIRs will include an NSLDS Postscreening Reason Code = 12.

Contact Information

If you have questions about the NSLDS enhanced formula for calculating unsubsidized aggregate loan limit amounts or its impact on combined loan limit amounts, contact the NSLDS Customer Support Center at 800/999-8219.  You can also contact Customer Support by e-mail at nslds@ed.gov.

   

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