DIRECT LOAN CLOSEOUT INFORMATION FOR 2012-2013 PROGRAM YEAR

The Direct Loan closeout deadline for the 2012-2013 Program Year is Thursday, July 31, 2014. This is the last processing day of the program year, so all school data must be received and accepted by this date to be included in a school’s final Ending Cash Balance for the year.

 

Note: 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 should contact the Common Origination and Disbursement (COD) School Relations Center for further assistance. Once the closeout deadline has passed, requests may be made directly through the COD Web site.

 

As a reminder, all cash management, disbursement reporting, and monthly reconciliation regulatory requirements supersede the closeout deadline. If a school is meeting these regulatory requirements, the final closeout stage should begin no later than the last award end date at the school for a given program and year. In other words, a school should be able to reconcile to a zero Ending Cash Balance and close out soon after its final disbursements and should not wait until the closeout deadline.

To be considered successfully closed out, a school must—

 

  • Have an Ending Cash Balance of $0 and Total Net Unbooked Disbursements of $0 internally, and as reflected on the School Account Statement (SAS), and
  • Complete the Balance Confirmation form on the COD Web site.

 

As part of the closeout process, schools will be sent ongoing notices via Zero Balance or Remaining Balance e-mails. In addition, a Notification/Warning Letter will be distributed via e-mail to schools in early May 2014. This letter will go to the Financial Aid Administrator and President at each school that has not confirmed closeout on the COD Web site (including any schools with a zero balance that have not confirmed closeout). It will serve as a reminder to finish processing and confirm closeout before the final deadline. After the closeout deadline, schools with remaining balances will be billed.

 

A school must be aware of its closeout status even if its Direct Loan processing is handled by a third party servicer. Schools are encouraged to communicate regularly with its third party servicer to ensure closeout is completed. It is the school’s responsibility to ensure that it finishes processing and confirms closeout on time.

 

To learn the key factors to an easy reconciliation and closeout process, as well as numerous tools that are available to assist you in your reconciliation and closeout efforts, please see this electronic announcement at http://ifap.ed.gov/eannouncements/0204141213closeoutinfo1of3partseries.html.

 

There is also an attachment containing frequently asked questions about the Direct Loan Closeout for the 2012-2013 program year.

 

DJA Clients: DJA has already ensured that many of our schools are closed out and will continue to automatically do this for our schools soon after final disbursements have been made.

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