Transcript NSLDS Reviews

Jean Balcer
Financial Aid Processing Coordinator
Davenport University
•
Default information on ISIR & NSLDS
•
Academic Year on NSLDS
•
How to find repayment codes
•
SULA Information
•
Try to identify capitalized interest
•
Discuss the reaffirmation process
• When a student is in default, on their ISIR
there is a SAR code for each servicer they are
in default with. There is not a C code
associated with this SAR code, you the schools
will not see this code.
• Example: SAR code 181 = Default Resolution
Group (GA 611); SAR code 207 = Great Lakes
Educational Loan Services (GA 727)
• Viewing NSLDS loan history, you can identify
which servicer they are in default with.
• Student must receive default clearance letter
from each servicer before regaining Title IV
eligibility.
• Common issue: the student consolidates all loans
to get out of default, but the defaulted loans
are not fully paid in full. If the principal
balance is greater than $25 per loan, Debt
Management and Collections will not update the
loan as paid in full. The loan is considered
underfunded.
• The student has to contact Direct Consolidation
to have them either send another payment or the
student has to pay the remaining principal
balance.
•
You can now view the student’s Academic
Year(AY) on NSLDS.
•
After pulling up a student’s Loan history,
click on the Loan Detail tab.
•
The academic year is useful when determining if
a student has overlapping academic years when
they are transferring mid-year.
•
To determine what repayment type a student is
in, bring up a student’s loan history.
•
Then click on Loan Detail tab for any loan.
•
Scroll down to section “Activities for Loan.”
This section will show deferment dates,
repayment plan and forbearance information.
•
If you click on the “?” in this section, it
will give you the list of all the repayment
codes.
•
For example: SF = standard repayment, P1 = Pay
as you Earn – No Partial Financial Hardship.
Each sub loan is
individually flagged.
Click on Subsidized
Usage button
Per NSLDS Newsletter (#46):
Web site now displays a new warning icon for
borrowers who have, because of the 150% Direct
Subsidized Loan Limit, lost interest subsidy on
one or more Direct Stafford Subsidized (SULA
Eligible) (D0) and/or Direct Consolidation
Subsidized (SULA Eligible) (D9) loans. The
following icon will display on the Loan History,
Grant History, Overpayment History, and
Overpayment List pages. It will also display on
the Student Access Interface page.
Loss of Subsidy Field
A new field called “Loss of Sub” has been added to
the Loan Summary for Direct Stafford Subsidized
(SULA Eligible) (D0) and Direct Consolidation
Subsidized (SULA Eligible) (D9) loans. This field
will only appear for loans which have lost their
interest subsidy. In all other cases, this field
will not appear.
•
The consolidated loans and older FFELP loans
are usually the culprit for capitalized
interest.
•
Usually capitalized interest will be added to
AGG OPB when the OPB balance is less than the
disbursed amount on the FFELP loan.
•
One way to determine which loan may be the
issue is to compare current loan history to a
prior loan history. If current is higher, then
principal balance increased.
• You can also look at the Loan Detail tab on
NSLDS to see if the AGG OPB balance has
increased from a prior date.
• If you can find the loan that created the
overaward, you may be able to go to the
servicer’s website to look at loan payment
history; there it will indicate if capitalized
interest has been added.
• If so, you can use that as your documentation as
to why the student is over the aggregate limits.
• If not, then you will need to obtain a
Reaffirmation letter or Satisfactory Repayment
Arrangements letter.
• If the student has consolidated all of their
loans, the student has then reaffirmed their
debt as he or she has to sign a new Promissory
Note for the consolidation.
As of 1/20/2010
• When a student is flagged on NSLDS for exceeding
loan limits, the school must rectify the
overaward before the student is eligible for
Title IV funds.
• Effective end of December 2014, NSLDS will now
flag a student as exceeding loan limits if the
overaward is greater than $25.00. This a change
from the previous amount of $100.00. Beginning
of January 2015 CPS did an ISIR push with this
update.
• Per regulations, even if the overaward is $1.00
the school must rectify the overaward either by
reallocating a sub overaward or the student
obtains reaffirmation letter.
• Gen 13-02: Remaining Title IV Eligibility after
exceeding loan limits explains the steps to take
for the reaffirmation letter.
• New for 2015/2016, there are two new SAR codes
392 for graduate loans and 393 for undergraduate
loans.
• From SAR Comment Codes and Text: “However, if
there is a value of “R” in the NSLDS Graduate
Subsidized Loan Limit Flag field or the NSLDS
Graduate Combined Loan Limit field on the ISIR,
the school must review the student’s entire
NSLDS loan record to determine if that “R” value
is shown on the loan or loans that resulted in
the excess borrowing. If so, the student regains
eligibility to participate in the federal
student aid programs.”
Process for LLE issue – requesting reaffirmation letter.
GEN-13-02: Regaining Title IV Eligibility after exceeding loan limits.
A student who has inadvertently over borrowed may regain Title IV eligibility by making
satisfactory repayment arrangements acceptable to the servicer of the loan. The
satisfactory repayment arrangement requirement can be met if the student agrees, in
writing, to repay the excess amount according to the terms and conditions of the
promissory note that supported the loan. This is called “reaffirmation.”
The reaffirmation process includes the following steps:
Step 1 – Either the institution or the student contacts the servicer and explains that the
student has inadvertently over borrowed and wishes to reaffirm debt.
Step 2 – The servicer sends the student a reaffirmation agreement.
Step 3 – The student reads, signs and returns to the servicer the reaffirmation
agreement.
Step 4 – The servicer sends the student confirmation that the reaffirmation agreement
has been accepted. The student or servicer must provide a copy of the reaffirmation
confirmation to the institution.
Step 5 – The inadvertent over borrowing is considered to have been resolved as of the
date the servicer receives the student’s signed reaffirmation agreement.
--------------------------------------------------------------------------------------------------------------------DU FA Loan Coordinator or specialist will complete step 1 on behalf of the student.
Notes will be made in RHACOMM which servicer was contacted and will note how the
servicer will be sending the letter to the student, such as via email or regular mail. It is
the student’s responsibility to submit the confirmation of reaffirmation.
NOTE: for Sallie Mae serviced loans, once we have requested the reaffirmation letter
and Sallie Mae has generated the letter; the student can log onto their account with
Sallie Mae and go to “View Correspondence History” and click on Incoming
Notifications. Here they should be able to re-print the reaffirmation letter.
• When the student receives the
letter, they have two options:
reaffirmation
1. Pay the overaward. Payment must accompany the
letter back to the servicer in order to be applied
directly to principal.
2. Sign the reaffirmation, which is an amendment to
the original promissory note.
NSLDS Customer Support Center
Phone:
1-800-999-8219
Toll: 1-785-838-2141
Fax: 1-785-838-2154
Web: www.nsldsfap.ed.gov
Email:
[email protected]
Any examples you would like work
through?
Jean Balcer
Davenport University
Financial Aid Processing Loan Coordinator
[email protected]
989-393-2635