Over the past few months, we have provided information about 2018–19 Direct Loan Program Year closeout (see the January 31, 2020 Electronic Announcement and the May 7, 2020 Electronic Announcement). This announcement supplements the previous guidance.
As a reminder, to be considered successfully closed out, the school must—
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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
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Complete the School Balance Confirmation form on the Common Origination and Disbursement (COD) website. 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 website. 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 p.m. Eastern time (ET) on Friday, July 31, 2020. 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 2018–19. Any 2018–19 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, 2020, cash management, disbursement/adjustment reporting, and monthly reconciliation requirements supersede the closeout deadline. A school should be able to reconcile to a zero balance and close out within a month or two of its final 2018–19 actual disbursements. |
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| 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 website.
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 p.m. (ET) on Friday, July 31, 2020.
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.
How will a school learn its final balance?
In early August 2020, Federal Student Aid will produce a final 2018–19 SAS Report and send it to all schools. A school will receive this SAS Report even if it is at a zero balance or has previously closed out for this program year. If a school has not completed reconciliation to a zero 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 2018–19 program year and should be kept as part of its reconciliation documentation.
Contact Information
We appreciate your cooperation as we work to close out the 2018–19 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.