Posted Date: July 6, 2018

Author:  Federal Student Aid

Subject: Additional 2016–17 Direct Loan Program Year Closeout Information

Over the past few months, we have provided information about the 2016–17 Direct Loan Program Year closeout (see the February 12, 2018 Electronic Announcement and the May 16, 2018 Electronic Announcement). This announcement supplements the previous guidance.

As a reminder, to be considered successfully closed out, the school must—

  • Reconcile to an Ending Cash Balance of $0 and Total Net Unbooked Disbursements of $0, as reflected on your monthly School Account Statement (SAS) Report and in your school’s internal records; and

  • Complete the School Balance Confirmation form on the Common Origination and Disbursement (COD) Web Site. The Balance Confirmation form can be completed after the school has reconciled to a $0 balance both internally and externally. Once the school has completed their final reconciliation, the school should log in to the COD Web Site. From the School options menu click on the Balance Confirmation link on the left-hand side of the page, and follow the instructions on the School Balance Confirmation screen.

When is the Closeout Data Submission Deadline?

The closeout deadline to submit records is 8:00 P.M. (ET) on Tuesday, July 31, 2018.  The COD System subsequently must accept all records submitted by the closeout deadline to be included in the school's final Ending Cash Balance for 2016–17. Any 2016–17 batches or records received after the closeout deadline will be rejected and returned to the school.

Notes:

     

1.)  

Though the closeout deadline is July 31, 2018, cash management, disbursement/adjustment reporting, and monthly reconciliation requirements supersede the closeout deadline. A school should be able to reconcile to a zero ($0) balance and close out within a month or two of its final 2016–17 actual disbursements.

     

2.)  

Prior to program year close out, schools should ensure that fields related to Subsidized Usage Limit Applies (SULA), such as academic year dates, loan period dates, loan and/or disbursement amounts, etc., are updated appropriately.

What if a school does not successfully close out by the deadline?

Any school that has not successfully closed out by the closeout deadline and has a positive Ending Cash Balance will be sent a Direct Loan Demand Letter requesting the return of the outstanding balance as a refund of cash. If the outstanding balance is not paid by the deadline noted in the letter, a receivable will be established, and the school will be billed accordingly.

Any school that has not successfully closed out by the closeout deadline and has a negative Ending Cash Balance will be sent a Direct Loan Negative Balance Letter requesting the resolution of the outstanding balance.

Exceptions to the last processing day of the program year may be made on a case-by-case basis, if the school’s processing period extends beyond the closeout deadline. Schools falling within this category must contact the COD School Relations Center at the number provided below for further assistance. Once the closeout deadline has passed, requests for extensions may be made via the Request Reopen/Extended Processing link under the School menu on the COD Web Site.

If a school has any concerns about meeting the closeout deadline, they should contact COD School Relations prior to the deadline for further assistance.

When is the deadline for drawdowns and/or drawdown adjustments?

Drawdowns and/or drawdown adjustments must also be requested and/or completed by the processing deadline of 8:00 P.M. (ET) on Tuesday, July 31, 2018.

Notes:

     

1.)  

As a reminder, all refunds for Direct Loan must be returned via G5. Refunds of Cash sent via G5 can take 7-9 days to process and post to the COD System. A school should consider its timing when submitting Refunds of Cash in order for these types of transactions to be reflected in its Ending Cash Balance prior to the deadline.

     

2.)  

The G5 website will not be available from 12:00 A.M. (ET) on Saturday, July 28, 2018 through 6:00 A.M. (ET) on Monday, July 30, 2018. Schools will not be able to draw down or return funds during this period. A school should consider the impact that the outage period may have on your school’s closeout process.

How will a school learn its final balance?

In early August 2018, we will produce a final 2016–17 SAS Report and send it to all schools. A school will receive this SAS Report even if it is at a $0 balance or has previously closed out for this program year. If a school has not completed reconciliation to a $0 balance prior to the deadline, it is important that its reconciliation be completed using this final SAS Report. This SAS Report will serve as a final record of the school's official Ending Cash Balance for the 2016–17 program year and should be kept as part of your reconciliation documentation.

Contact Information

We appreciate your cooperation as we work to close out the 2016–17 Direct Loan Program Year. If you have questions about this announcement or need assistance with closeout, contact the COD School Relations Center at 1-800-848-0978. You may also email CODSupport@ed.gov.

   

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