Student Financial Assistance

Session 63

Direct Loan Reconciliation Hands-On

At Your Assistance
n

Bob Martin, Direct Loan CAM, Dallas

Ashley and her GrandDad

And….
n

Morgan Hamil, Reconciliation Accountant, LOC, Montgomery, AL

Morgan, husband Chris and niece Kaitlyn

Agenda….
n n

n

LO-Online DL Tools Cash Rebuild lost database Compare LOC database (732 Report) with school database Reports

Bob’s 8 Steps to Reconciliation Heaven!!
1. 2. 3. 4. 5. 6. 7. 8. Create LOR; Send to LOC Import Acknowledgement (Status =A) Print MPN; Manifest to LOC/eMPN Import Acknowledgement (Status = A) Draw down cash. Cash Management (Business Office) Disburse; Send Disb. Record to LOC Import Acknowledgement (Status = A)

How long should it take you to “Book” a loan?
n

Schools must submit the loan origination record, promissory note, and disbursement record to ED within 30 days of the initial disbursement. All subsequent disbursement (and adjustment) records must also be submitted within 30 days of the disbursement.

Session 63- 9

Lets’ see how we can achieve reconciliation using these tools...

LO-Online Web Enhancements…...

• DLB 01-05 • Announced enhancements to the Loan Origination Web site: • Navigation • Security • Change Record Processing • Audit History • MPN Review •Batch Report Options • Loan File Rebuild • Entrance Counseling Results

Http://lo-online.ed.gov
5

User Registration
• More roles to choose from – SFAO – AFAO view or update – CAFAO view or update – Credit Check – Entrance Counseling – Entrance/Servicing School Servicing

Session 63-15

Change Record Processing
n

Loans – Academic Year – Loan Period – Loan Amount Approved – Dependency Status – HEAL Indicator – College Year – Disclosure Print Indicator – P-Note Print Indicator

n

Anticipated Disbursements – Date – Gross

n

Changes made via the web are not acknowledged back to schools Changes are edited same as through batch Change is displayed immediately Only change one field at a time

n

n

n

Session 63-16

People and Loan Information
n n

People and Loan searches separated Person Detail: – demographic information – local address

n

Loan Detail: – change loan information – change and add new anticipated disbursements
Session 63-17

Session 63-18

Session 63-19

Session 63-20

Anticipated Disbursements
n

Change Anticipated Disbursements – does not change any actual disbursement information – if actual disbursements need to be changed, send through batch

Session 63-21

MPN Review
n n

Check to see if student has an MPN on file Displays: – Loan Year – Status – Date of MPN – Expiration Date

n

Indicator for electronic versus paper note
Session 63-22

Session 63-23

How School Will Know There is a Note
n n n n

P-Note Acknowledgement Record LO Acknowledgement Record LO Web Site If you want to know note was electronic: – On LO Web Site – On LO Acknowledgement Record (in FILLER)
64

Batch Report Options
• SFAO specifies: – Which reports are received (disable receipt) – What format (formatted or flat file)

Anticipated Disbursement Listing Actual Disbursement Roster 30-Day Warning Inactive Loans SSN/Name/DOB Duplicate Borrower

– Pending Change over 45 Days – Disbursement Activity Not Yet Booked in Servicing

– – – – –

– DLSAS (disable only if program year is closed) – 732 (disable only if program year is closed)

Session 63-25

Loan File Rebuild
n

SFAO can choose to have data restore sent by: – Loan ID – Program Year (for 2000/2001 and forward) – Date Range – SSN

n

When pending: – Can change information – Delete from processing
Session 63-26

DL Tools
n n n

Cash Management is Back!! Rebuild lost database Compare your database and the LOC database

A Bold New Step for ED!!!

Session 63-28

DL Tools For 2000/2001
n n n

Cash Management Rebuild No ability to run 732 Compare (Gary’s Compare)

DL Tools For 2001/2002
n n n

Cash Management Rebuild and Compare 732 Compare

Download From IFAP

Same Look and Feel as EDExpress

Let’s Look at Setup

Setup--Security Users

Compare Process in DL Tools
n

Process
– Import Data
• 732 Cash Detail and Loan Detail • External Cash Detail and Loan Detail

– Print Reports
• • • • 732 Cash Detail 732 Loan Detail Cash Detail Comparison Loan Detail Comparison
Session 63-35

DL Tools - Compare Lists and Reports
n

732 Cash Detail List 732 Loan Detail List Cash Detail Comparison Report Loan Detail Comparison Report
Session 63-36

n

n

n

Let’s Look at Each Function
n

Cash Management Available for 00/01 and 01/02

DL Tools -Cash Management
n

Tool to track Cash Receipts and Returns of Excess Cash Available for 2000-2001 and 2001-2002 Records entered manually or through external add import
Session 63-38

n

n

DL Tools- Cash Management

Session 63-39

LOC Drawdown Report
The date schools should use to compare against internal records.
Drawdown Amt $22,678 $36,495 $114,145 $18,721 $16,992 ($16,992) $25,000 $15,000 $50,000 $30,000 $312,039 GAPS Debit Date 07/21/1999 09/07/1999 11/10/1999 04/03/2000 09/17/2000 09/17/2000 04/05/2001 04/25/2001 04/30/2001 05/22/2001 Rec Ind N N N N N N N N N N

Program Year funds are applied

Drawdown Date 07/20/1999 20:12:17 09/05/1999 21:16:44 11/09/1999 18:10:06 04/01/2000 09:10:12 09/15/2000 21:29:07 09/15/2000 00:00:00 04/03/2001 19:07:18 04/22/2001 19:19:53 04/27/2001 19:24:25 05/19/2001 21:10:17 TOTAL

GAPS Control No 199907189912 199909049916 199911089915 200003300098 199907189912 199907189912 200004030001 200004220012 200004270035 200005190083

Yr 06 06 06 06 06 06 07 07 07 6

Batch Date 07/20/1999 20:12:17 09/05/1999 21:16:44 11/09/1999 18:10:06 04/01/2000 09/15/2000 09/15/2000 04/03/2001 04/22/2001 04/27/2001 09:10:12 21:29:07 00:00:00 19:07:18 19:19:53 19:24:25

Att #

Processed Date 00/00/0000 00/00/0000 00/00/0000 00/00/0000 00/00/0000 00/00/0000 00/00/0000 00/00/0000 00/00/0000 00/00/0000

Action Code P P P P P A P P P P

05/19/2001 21:10:17

Session 63-40

LOC Excess Cash Reports
The date funds were deposited by the Department
Program Year funds are applied

Recon Applied Date 08/09/1999 08/09/1999 04/21/2001 05/10/2001 Received Date 08/09/1999 11/10/1999 04/21/2001 05/10/2001 Trans Number 3438 3438 1089 1105 Prog Year 06 06 07 07 Total Applied Amount $4,500 ($4,500) $5,000 $5,000 $10,000 Recon Ind N N N N Proc Date Batch Number EC19990809089 EC19991110012 EC20000421059 EC20000510001 SF215 Number 101399 101399 446737 447437 SF215 Date 08/09/1999 08/09/1999 04/21/2001 05/10/2001 SF215 Amount $0.00 $0.00 $0.00 $0.00

Session 63-41

Or, Click the green $ Icon

Make an Entry, Then Save

Note: You can enter positive OR negative number for Excess Cash!!

n You

Can Also Populate the Cash Database by Importing a Cash Detail File From a Mainframe System (DLEXCASH.xxx)(see the Tech Ref for layouts or print them from DL Tools)

Adding Cash Entries en masse
Session 63-45

“I just lost my database, what do I do?” Request a Rebuild File!!
n

n

Online, via http://lo-online.ed.gov Or, By calling your CSR at LOC

Session 63-47

Session 63-48

Session 63-49

Date Range Not Supported This Year!

Session 63-50

Session 63-51

Session 63-52

Do a Rebuild Compare First!!!!

You Can Import the File again to update your .mdb file

You’ll See Unmatched Origination Records First

And Unmatched Disbursement Records next…..

Once the school is satisfied that they will not overwrite any work they have already done, do the Rebuild Import again--this time for Real!!
Session 63-56

Voila!! Instant Database!

Session 63-58

Finally…..
n

Last, but not least:

THE 732 COMPARE
n

In 01/02 and subsequent years, but not functional for 00/01

First, Bring In the 732 Detail File (ED1202OP)

Clears any previous 732 in temporary DL Tools database

Then, Run Your Compare Via the Print Function

View the Results...

Reside on School Side Only; Need to be Sent

Cash Detail Comparison

Compare Program
n

The Compare Program is a Microsoft Access 97/2000 database that was developed by the Direct Loan School Relations Office CAM’s to assist you in electronically comparing your school data with the 732-LOS Detail Report.

Session 63-65

Compare Program
n

n

n

You can contact your Account Manager to get a copy of the program There are two versions of the program – EDExpress – Mainframe/Custom schools There are programs for – 1997/98 – 1998/99 – 1999/00 – 2000/01
Session 63-66

Additional Tools/Reports for Making Reconciliation/Closeout a Success

Session 63-67

What is the BEST tool for Reconciliation?

n

Daily, Weekly, Monthly detailed processing.

Session 63-68

More Tools…..
n n n n

30 Day Warning School/LOC Totals List Status Measurement Tools Report Disbursement Measurement Report

Session 63-69

The 2001/02 - DLSAS
n

You can receive the DLSAS in one of the following format:
• Text format (current format) - DSAS02OP • Comma Delimited (new format) - DSAC02OP
• both will be Batch Type “AS” • both will be transmitted via Student Aid Internet Gateway (SAIG)

Session 63-70

Report Date: 11/15/2001 U.S. DEPARTMENT OF EDUCATION PAGE: 1 Report Time: 08:39:05 2001-2002 Federal Direct Loan Program Direct Loan School Account Statement (ALL RECORDS) THIS DOCUMENT CONTAINS SENSITIVE INFORMATION PROTECTED BY THE PRIVACY ACT ******************************************************************************** BATCH ID: AS2G0122420011112085816 LOC Process Date: 11/12/2001 School Code: Month End: G01224 10/31/2001

2001-02 DLSAS YTD Cash Summary

YEAR-TO-DATE CASH SUMMARY Beginning Balance: Cash Receipts: Excess Cash Returned: Total Net Cash Receipts: Net Booked Disb. Actual: Net Booked Disb. Adjustments: Total Net Booked Loan Detail: $ $ $ 50,000 -5,000 $ $ $ -30,000 5,000 $ -25,000 45,000 0

Ending Cash Balance:

$

20,000

-----------------------------------------------------------------------------Net Unbooked Disb. Actual: $ Net Unbooked Disb. Adjustments: $ Total Net Unbooked Loan Detail: Adjusted Ending Cash Balance: -2,000 0 $ $ -2,000 18,000

Session 63-71

Changes to the DLSAS from prior years
n

Year-to-Date Disbursement Summary by Loan Type
– Subsidized Loans (YS) – Unsubsidized Loans (YU) – PLUS Loans (YP) – Total for Subsidized/Unsubsidized/PLUS Loans (YT)

Session 63-72

Report Date: 11/15/2001 U.S. DEPARTMENT OF EDUCATION PAGE: 2 Report Time: 08:39:05 2001-2002 Federal Direct Loan Program Direct Loan School Account Statement (ALL RECORDS) THIS DOCUMENT CONTAINS SENSITIVE INFORMATION PROTECTED BY THE PRIVACY ACT ******************************************************************************** BATCH ID : AS2G0122420011202085816 LOC Process Date: 11/12/2001 School Code: Month End: G01224 10/31/2001

YEAR-TO-DATE DISBURSEMENT SUMMARY

2001-02 DLSAS YTD Disbursement Summary

Disbursement Loan Totals: BOOKED LOANS ----------------$ 10,152 $ 304 $ 152 $ 10,000 $ $ $ $ $ $ $ $ 15,228 456 228 15,000 0 0 0 0 UNBOOKED LOANS ----------------$ 2,028 $ 60 $ 32 $ 2,000 $ $ $ $ $ $ $ $ 0 0 0 0 0 0 0 0

Subsidized Subsidized Subsidized Subsidized

Gross : Fee : Rebate : Net : Gross : Fee : Rebate : Net :

Unsubsidized Unsubsidized Unsubsidized Unsubsidized PLUS PLUS PLUS PLUS Gross : Fee : Rebate : Net :

Total for all Loan Types: Sub/Unsub/PLUS Sub/Unsub/PLUS Sub/Unsub/PLUS Sub/Unsub/PLUS Gross : Fee : Rebate : Net : $ $ $ $ 25,380 760 380 25,000 $ $ $ $ 2,028 60 32 2,000

Session 63-73

Report Date: 11/15/2001 U.S. DEPARTMENT OF EDUCATION PAGE: 3 Report Time: 08:39:05 2001-2002 Federal Direct Loan Program Direct Loan School Account Statement (ALL RECORDS) THIS DOCUMENT CONTAINS SENSITIVE INFORMATION PROTECTED BY THE PRIVACY ACT ******************************************************************************* * LOC Process Date: School Code: Month End: 11/12/2001

G01224 10/31/2001

2001-02 DLSAS Monthly Cash Summary

MONTHLY CASH SUMMARY Beginning Balance: Cash Receipts: Excess Cash Returned: Total Net Cash Receipts: Net Booked Disb. Actual: Net Booked Disb. Adjustments: Total Net Booked Loan Detail: $ $ $ 35,000 -5,000 $ $ $ -15,000 5,000 $ -10,000 30,000 0

Ending Cash Balance:

$

20,000

-----------------------------------------------------------------------------Net Unbooked Disb. Actual: $ Net Unbooked Disb. Adjustments: $ Total Net Unbooked Loan Detail: Adjusted Ending Cash Balance: -2,000 0 $ $ -2,000 18,000

Session 63-74

Changes to the DLSAS from prior years
n

Monthly Disbursement Summary by Loan Type
– Subsidized Loans (MS) – Unsubsidized Loans (MU) – PLUS Loans (MP) – Total for Subsidized/Unsubsidized/PLUS Loans (MT)

Session 63-75

Report Date: 11/15/2001 U.S. DEPARTMENT OF EDUCATION PAGE: 4 Report Time: 08:39:05 2001-2002 Federal Direct Loan Program Direct Loan School Account Statement (ALL RECORDS) THIS DOCUMENT CONTAINS SENSITIVE INFORMATION PROTECTED BY THE PRIVACY ACT ******************************************************************************** BATCH ID : AS2G0122420011112085816 LOC Process Date: 11/12/2001 School Code: Month End: G01224 10/31/2001

2001-02 DLSAS Monthly Disburse. Summary

MONTHLY DISBURSEMENT SUMMARY Disbursement Loan Totals: BOOKED LOANS ----------------$ 5,076 $ 152 $ 76 $ 5,000 $ $ $ $ $ $ $ $ 10,152 304 152 10,000 0 0 0 0 UNBOOKED LOANS ----------------$ 2,028 $ 60 $ 32 $ 2,000 $ $ $ $ $ $ $ $ 0 0 0 0 0 0 0 0

Subsidized Subsidized Subsidized Subsidized

Gross : Fee : Rebate : Net : Gross : Fee : Rebate : Net :

Unsubsidized Unsubsidized Unsubsidized Unsubsidized PLUS PLUS PLUS PLUS Gross : Fee : Rebate : Net :

Total for all Loan Types: Sub/Unsub/PLUS Sub/Unsub/PLUS Sub/Unsub/PLUS Sub/Unsub/PLUS Gross : Fee : Rebate : Net : $ $ $ $ 15,228 456 228 15,000 $ $ $ $ 2,028 60 32 2,000

Session 63-76

DLSAS Cash Detail
n n n n n n

Report Date: 11/15/2001 U.S. DEPARTMENT OF EDUCATION PAGE: 5 Report Time: 08:39:05 2001-2002 Federal Direct Loan Program Direct Loan School Account Statement (ALL RECORDS) THIS DOCUMENT CONTAINS SENSITIVE INFORMATION PROTECTED BY THE PRIVACY ACT ******************************************************************************** LOC Process Date: School Code: Month End: 11/12/2001

n

n n

G01224 10/31/2001

n

CASH DETAIL RECORDS FOR THIS MONTH TRANS TYPE ---------Cash Receipt Excess Cash Cash Receipt DATE ---------10/02/2001 10/05/2001 10/30/2001 AMOUNT --------------$ 15,000 $ 5,000 $ 20,000 GAPS CONTROL # -------------1234567890123 2154567890123 CHECK # ------5939

n n n n n

Session 63-77

732 Report
The 732 Report is a report generated by the Loan Origination Center (LOC) to assist schools with their reconciliation and Program Year Close Out (PYCO). It contains the following segments: Year-to-Date Cash Summary – Cash Detail – Loan-level Detail

Session 63-78

732 Cash Summary
Total Returns Total Rec Sch Reg Beg Cash of Excess Cash on Total Actual Total N e t Adj Loan Ending Cash Adj Ending Net Un Cash Short

As-of-Date T y p e C o d e C o d e B a l Receipts Cash Hand Disb F i l l e r Disb Detail B a l a n c e b k e d Bal Name 10/31/2001 T1 E90471 1 0 50000 -5000 45000 30000 -5000 25000 20000 2000 18000 D L U

Session 63-79

732 Cash Detail
LOC Record As-of-Date T y p e 10/31/2001 R 10/31/2001 R 10/31/2001 X GAPS Posting GAPS Control Check Date Amount Date Number Number 10/2/2001 15000 10/2/2001 1234567890123 10/30/2001 10/9/2001 20000 10/30/2001 2154567890123 -5000 10/9/2001 5939

Session 63-80

732 Loan Detail
Tot Re c As-of-Date Type Loan ID 10/31/2001 B 10/31/2001 B 10/31/2001 B 10/31/2001 B 10/31/2001 U 10/31/2001 U 111222222S02G01224001 222444444S02G01224001 333555555U02G01224001 058626852S02G01224001 058764778S02G01224001 Total Total Gross F e e Amt 5076 5076 5076 1520 507 Am t 152 152 304 152 40 15 Inter Rebt Amt 76 76 76 20 8 Tot Net Amt 5000 5000 5000 1500 500

299999999S02G01224001 10152

152 10000

Session 63-81

The 2001/02 -732 Report
n

You can receive the 732 in one of the following options: • Current 732 Loan Detail Report with Year-to-Date loan level totals • New 732 Disbursement Activity Report which contains: • disbursement summary by loan type • cash receipt • excess cash • disbursement activity detail information • cash summary

Session 63-82

The 2001/02 -732 Report
n

732 Loan Detail Report: • Message Class ED1202OP/ED0902OP includes • Disbursement Summary Records • YS - summary for Subsidized (Sub) Loans • YU - summary for Unsubsidized (Unsub) Loans • YP - summary for Plus Loans • YT - summary for Sub, Unsub and Plus • Cash Receipts (“R”) • Excess Cash (“X”) • Loan Detail (“B” or “U”)
Session 63-83

732 Disbursement Totals
School Code T y p e / Reg Record S c h o o l ion As-of-Date Type No Code 10/31/2001 YS 10/31/2001 YU 10/31/2001 YP 10/31/2001 YT G01224 G01224 G01224 G01224 1 1 1 1 Un booked Interest Rebate Amount 32 0 0 32

Booked Un Un B o o k e d Booked Interest B o o k e d b o o k e d b o o k e d Gross Fee R e b a t e Net Gross Fee F i l l e r A m o u n t A m o u n t A m o u n t A m o u n t A m o u n t Amount 10152 15228 0 25380 304 456 0 760 152 228 0 380 10000 15000 0 25000 2028 0 0 2028 60 0 0 60

Un booked Net Amount 2000 0 0 2000

Session 63-84

732 Disbursement Detail
Int Rec Disb Disb Seq School As-of-Date Type Loan ID No Typ No Disb Date 10/31/2001 B 111222222S02G01224001 1D 1 10/15/2001 10/31/2001 B 111222222S02G01224001 1A 2 10/18/2001 10/31/2001 B 10/31/2001 B 10/31/2001 B 10/31/2001 U 10/31/2001 U 222444444S02G01224001 299999999S02G01224001 333555555U02G01224001 058626852S02G01224001 058764778S02G01224001 1D 1D 1D 1D 1D Net Tot Total Total Inter Tot

Booked Gross Fee Rebt Net Adj Gross Fee Rebt Net Date Amt Amt Amt Amt Amt Amt Amt Amt Amt 10/17/2001 10152 304 152 10000 10/22/2001 5076 152 76 5000 -5000 5076 152 76 5000 76 5000 152 10000 76 20 8 5000 1500 500 5076 10152 5076 1520 507 152 304 152 40 15 76 5000 152 10000 76 20 8 5000 1500 500

1 9/5/2001 9/10/2001 5076 152 1 10/26/2001 10/30/2001 10152 304 1 9/10/2001 1 10/5/2001 1 10/15/2001 9/15/2001 5076 152 1520 40 507 15

Session 63-85

More Information
For More Information on Reconciliation and Closeout, attend:

Session 12: Direct Loan Database Management- Avoiding Common Mistakes n Session 17: Direct Loan Tools- More Uses than Duct Tape n Computer Lab Reconciliation Help Area n Spring Reconciliation Training offered by the regional CAMS (look for upcoming training at http://www.ed.gov/offices/OPE/announce/trng/)
n

Session 63-86

Reconciliation Assistance
Contact: n Your regional Client Account Management Staff (see list on following slide) n Your Customer Service Representative or Reconciliation Accountant at the LOC, (800) 848-0978 or loan_origination@mail.eds.com n Direct Loan Operations (202) 205-6466
Session 63-87

CAM Contact Information
Region States Number I-Boston CT, MA, ME, NH, RI, VT (617) 565-6911 II-New York NJ, NY, PR, VI (212) 264-8012 III-Philadelphia DC, DE, MD, PA, VA, WV (215) 656-5929 IV-Atlanta AL, FL, GA, KY, MS, NC, SC, TN (404) 562-6259 V-Chicago IL, IN, OH, MI, WI (312) 886-8766 VI-Dallas AR, LA, NM, OK, TX (214) 880-2405 VII-Kansas City IA, KS, MO, NE (816) 880-4090 VIII-Denver CO, MN, MT, ND, SD, UT, WY (303) 844-3677 IX-San Francisco AZ, CA, HI, NV (415) 556-4201 X-Seattle AK, ID, OR, WA (206) 287-9840

Session 63-88

n

Questions ?

Session 63-89

Let’s Get Busy…..

n

Instructor Demo/Participant Hands-On….