# Volume II, Section 1 -- Full Participant Implementation Guide

## Overview

This chapter provides assistance to Full Participants (Schools,
EDExpress Users, Third Party Servicers, and Software Providers) with
implementing the COD System for the 2004-2005 Pell Grant and Direct Loan
Programs. It serves as a companion to the 2004-2005 Overview of Changes,
Common Record Layout and Full Participant Edit Codes contained in this
Technical Reference and the XML Common Record Schema v2.0d available at
[www.ifap.ed.gov](http://www.ifap.ed.gov/).

**Note:** Phase-In Participants are advised to refer to the Pell Grant
Phase-In Participant Implementation Guide and the Direct Loan Phase-In
Participant Implementation Guide contained in Volume III and Volume IV
of this Technical Reference.

**All schools that intend to transmit records to COD as Full
Participants in 2004-2005, and were not Full Participants for a prior
award year, are required to register as a Full Participant with the COD
School Relations Center prior to transmitting 2004-2005 records**. If
your school submits 2004-2005 records in XML Common Record format and
COD is unaware that your school is a Full Participant, your records will
reject. **Additionally, all new EDExpress Users must register as Full
Participants prior to using EDExpress to transmit 2004-2005 records to
COD**. If your school submits 2004-2005 records using EDExpress software
and COD is unaware that your school is an EDExpress user, your records
will reject.

Schools are encouraged to discuss their participant status with their
software vendor, third party servicers, and/or IT Department prior to
registering. **Once a school has submitted records for an award year as
a Full Participant, the school is unable to revert to submitting
Phase-In Participant records for that award year.**

Schools may inquire about the registration process by contacting the COD
School Relations Center at the following phone numbers or email address:

-   1-800-474-7268 for Pell Grant assistance

-   1-800-848-0978 for Direct Loan assistance

-   CODSupport@acs-inc.com

Any questions concerning the material in this document should be
directed to the COD School Relations Center.

[Overview 1](#overview)

[Full Participants in 2004-2005 6](#full-participants-in-2004-2005)

[*XML version of EDExpress for 2004-2005*
6](#xml-version-of-edexpress-for-2004-2005)

[*Full Participant Status by Program*
7](#full-participant-status-by-program)

[Common Record Valid Format Rules 8](#common-record-valid-format-rules)

[*Common Record XML Schema Guidelines*
8](#common-record-xml-schema-guidelines)

[*2004-2005 Common Record XML Schema* 8](#common-record-xml-schema)

[*Maximum Length Values and Leading Zeros*
12](#maximum-length-values-and-leading-zeros)

[*Empty (Blank) and Null Tags* 12](#empty-blank-and-null-tags)

[*Data Types* 14](#data-types)

[*Date Fields* 14](#date-fields)

[*Year Fields* 15](#year-fields)

[*Date/Time Fields* 15](#datetime-fields)

[*Decimal Fields* 15](#decimal-fields)

[*Dollar Amount Fields* 16](#dollar-amount-fields)

[*Percentage Fields* 18](#percentage-fields)

[*Integer Fields* 19](#integer-fields)

[*String Fields* 19](#string-fields)

[*Boolean Fields* 19](#boolean-fields)

[*XML Predefined Entity References*
20](#xml-predefined-entity-references)

[Common Record Processing Rules 21](#common-record-processing-rules)

[*Document* 21](#document)

[*Document Submission* 21](#document-submission)

[*Batch Processing* 21](#batch-processing)

[*COD Message Classes* 22](#cod-message-classes)

[*Logical Record Length Limitation*
23](#logical-record-length-limitation)

[*COD Receipts* 23](#cod-receipts)

[*Response Documents* 23](#response-documents)

[*Response Code* 25](#response-code)

[*Storing of Reject Records* 28](#storing-of-reject-records)

[*Document Validation* 29](#document-validation)

[*Sequence of Data Elements Required for Document Processing*
30](#sequence-of-data-elements-required-for-document-processing)

[*Documents Must be Submitted by a Full Participant*
30](#documents-must-be-submitted-by-a-full-participant)

[*Document ID Required for Document Submission*
30](#document-id-required-for-document-submission)

[*Duplicate Document IDs* 31](#duplicate-document-ids)

[*Inability to Process Future-Dated Documents*
32](#inability-to-process-future-dated-documents)

[*Documents Submitted Must Contain at Least One Detailed Record*
32](#documents-submitted-must-contain-at-least-one-detailed-record)

[*Document Submissions of One Detailed Record*
33](#document-submissions-of-one-detailed-record)

[*Minimum Data Elements Required for Document Processing*
34](#minimum-data-elements-required-for-document-processing)

[*Routing ID* 41](#routing-id)

[*Entity ID* 42](#entity-id)

[*Total Count in the Reported Financial Summary Complex Element*
48](#total-count-in-the-reported-financial-summary-complex-element)

[*Total Award Amount Reported in the Reported Financial Summary Complex
Element*
50](#total-award-amount-reported-in-the-reported-financial-summary-complex-element)

[*Total Disbursement Amount Reported in the Reported Financial Summary
Complex Element*
50](#total-disbursement-amount-reported-in-the-reported-financial-summary-complex-element)

[*Student Identifier* 51](#student-identifier)

[*Changing Student Identifier Information*
53](#changing-student-identifier-information)

[*Borrower Identifier* 55](#borrower-identifier)

[*CPS Transaction Number* 56](#cps-transaction-number)

[*Student Identifier and Data Elements Matched against the CPS*
57](#student-identifier-and-data-elements-matched-against-the-cps)

[*Data Elements Pulled from the CPS*
62](#data-elements-pulled-from-the-cps)

[*Note Message Field* 63](#note-message-field)

[*Removal of Invalid Phone Number Edit*
64](#removal-of-invalid-phone-number-edit)

[*Updating Phone Numbers* 64](#updating-phone-numbers)

[Direct Loan Award and Disbursement Process
66](#direct-loan-award-and-disbursement-process)

[*Utilizing Loan Key for Subsidized and Unsubsidized Direct Loans*
66](#utilizing-loan-key-for-subsidized-and-unsubsidized-direct-loans)

[*Disbursement Sequence Number Required on all Disbursements*
70](#disbursement-sequence-number-required-on-all-disbursements)

[*Disbursement Release Indicator* 71](#disbursement-release-indicator)

[*Establishing an Initial Direct Loan Award*
72](#establishing-an-initial-direct-loan-award)

[*Submitting Direct Loan Anticipated Disbursement Information*
74](#submitting-direct-loan-anticipated-disbursement-information)

[*Generating Disclosure Statements*
75](#generating-disclosure-statements)

[*Performing Annual Loan Limit Edits*
80](#performing-annual-loan-limit-edits)

[*Submitting Direct Loan Disbursement Information and Disbursement
Release Indicator*
81](#submitting-direct-loan-disbursement-information-and-disbursement-release-indicator)

[*Reporting Pennies in the Award and Disbursement Amount Data Elements*
87](#reporting-pennies-in-the-award-and-disbursement-amount-data-elements)

[*Calculating Direct Loan Disbursements*
87](#calculating-direct-loan-disbursements)

[*Disbursement Net Amount, Disbursement Fee Amount, and Interest Rebate
Amount Calculations*
92](#disbursement-net-amount-disbursement-fee-amount-and-interest-rebate-amount-calculations)

[*Updating and Adjusting Direct Loan Disbursement Amounts and Dates*
95](#updating-and-adjusting-direct-loan-disbursement-amounts-and-dates)

[*Disbursement Requirements for Award Amount Updates*
98](#disbursement-requirements-for-award-amount-updates)

[*Inactivating a Direct Loan* 100](#inactivating-a-direct-loan)

[*Generating Direct Loan Booking Notification Responses*
101](#generating-direct-loan-booking-notification-responses)

[*Generating Payment to Servicing Responses*
104](#generating-payment-to-servicing-responses)

[*Loan Discharge* 107](#loan-discharge)

[Direct Loan Master Promissory Notes
110](#direct-loan-master-promissory-notes)

[*Master Promissory Notes* 110](#master-promissory-notes)

[*Master Promissory Note Features*
112](#master-promissory-note-features)

[*Multi-Year MPN Feature* 112](#multi-year-mpn-feature)

[*Schools Opting for Single-Year MPN Feature*
113](#schools-opting-for-single-year-mpn-feature)

[*Single-Year MPN Feature* 114](#single-year-mpn-feature)

[*Single-Loan MPN Feature (PLUS Only)*
114](#single-loan-mpn-feature-plus-only)

[*Master Promissory Note Printing Process*
115](#master-promissory-note-printing-process)

[*Submitting a Promissory Note Print Code*
119](#submitting-a-promissory-note-print-code)

[*Linking an MPN to a Direct Loan Subsidized/Unsubsidized or PLUS Award*
121](#linking-an-mpn-to-a-direct-loan-subsidizedunsubsidized-or-plus-award)

[*Closing MPNs* 129](#closing-mpns)

[*Generating a Master Promissory Note Response*
130](#generating-a-master-promissory-note-response)

[Direct Loan PLUS Credit Check 133](#direct-loan-plus-credit-check)

[*Requesting a PLUS Credit Decision*
133](#requesting-a-plus-credit-decision)

[*Credit Decision Appeal Process* 133](#credit-decision-appeal-process)

[*Generating Credit Decision Override Responses*
134](#generating-credit-decision-override-responses)

[Direct Loan Entrance/Exit Interview
137](#direct-loan-entranceexit-interview)

[*Requesting an Entrance Counseling File/Report*
137](#requesting-an-entrance-counseling-filereport)

[*Requesting an Exit Counseling File/Report*
137](#requesting-an-exit-counseling-filereport)

[*Direct Loan Closeout* 137](#direct-loan-closeout)

[Pell Grant Award and Disbursement Process
139](#pell-grant-award-and-disbursement-process)

[*Pell Grant Correction Edits can be Treated as Rejects*
139](#pell-grant-correction-edits-can-be-treated-as-rejects)

[*Reporting Pennies in the Award and Disbursement Amount Data Elements*
139](#reporting-pennies-in-the-award-and-disbursement-amount-data-elements-1)

[*Establishing Pell Grant Award Information*
141](#establishing-pell-grant-award-information)

[*Disbursement Sequence Number Required on all Disbursements*
143](#disbursement-sequence-number-required-on-all-disbursements-1)

[*Disbursement Release Indicator*
144](#disbursement-release-indicator-1)

[*Submitting Pell Grant Disbursement Information and Disbursement
Release Indicator*
145](#submitting-pell-grant-disbursement-information-and-disbursement-release-indicator)

[*Updating and Adjusting Pell Grant Disbursement Amounts and Dates*
149](#updating-and-adjusting-pell-grant-disbursement-amounts-and-dates)

[*Processing System-Generated Pell Responses*
151](#processing-system-generated-pell-responses)

[*Reporting Verification Status Code*
151](#reporting-verification-status-code)

[*Negative Pending Records* 155](#negative-pending-records)

[*Concurrent Enrollment* 156](#concurrent-enrollment)

[*Pell Potential Overaward Process (POP)*
157](#pell-potential-overaward-process-pop)

[*Pell Administrative Cost Allowance (ACA)*
160](#pell-administrative-cost-allowance-aca)

[*Pell Close-Out Processing* 160](#pell-close-out-processing)

[*Post-Deadline Processing* 161](#post-deadline-processing)

[User Readiness Checklist 162](#user-readiness-checklist)

## Full Participants in 2004-2005

### XML version of EDExpress for 2004-2005

The EDExpress Software Release 2.0 communicates to COD using the Common
Record in XML for Pell Grant and Direct Loan awards. The Internal Import
and Export files for EDExpress Combination System users continue to be
offered in fixed-length format and not XML.

***Business Rules:***

1)  EDExpress Release 2.0 exports and imports the XML Common Record to
    and from COD for Pell and Direct Loan awards.

2)  EDExpress Users are Full Participants in the 2003-2004 award year
    and forward.

    a.  A school/Third Party Servicer that uses EDExpress Release 2.0 to
        export and import Direct Loan and/or Pell Grant data to COD is a
        Full Participant

3)  EDExpress Users should refer to the sections within Volume II --
    Common Record Full Participant Technical Reference of the 2004-2005
    COD Technical Reference as their reference tool.

4)  The EDExpress Internal Import and Export files used by EDExpress
    Release 2.0 and Combination and Mainframe Systems continue to be
    offered in fixed-length format and not XML for 2004-2005.

5)  All reports continue to be produced and imported into EDExpress in
    current formats and not XML.

> **Note:** **All schools that intend to transmit records to COD using
> EDExpress Software Release 2.0 in 2004-2005, and have not used
> EDExpress in previous award years, are required to register as a Full
> Participant with the COD School Relations Center prior to transmitting
> 2004-2005 records**. If your school submits 2004-2005 records using
> EDExpress software and COD is unaware that your school is an EDExpress
> user, your records will reject. After registering as a Full
> Participant, your school should familiarize itself with its Routing ID
> (formerly known as Common School ID). The Routing ID is found on the
> COD web site and is labeled COD ID. If your school is unable to locate
> its Routing ID, please contact COD School Relations for assistance.
> This Routing ID is required to complete the setup process for the
> EDExpress Software Release 2.0. To register as a COD Full Participant
> for 2004-2005, please review the IFAP Electronic Announcement dated
> 10/31/2003 and titled Summary: COD Full Participant Set-up for
> 2004-2005 Award Year for more information.

### Full Participant Status by Program

For the 2004-2005 award year, schools may choose to be a COD Full
Participant for one award program and a Phase-In Participant for the
other award program.

#### Business Rules:

1)  Schools that use multiple software packages to process their award
    programs are able to submit records for one program in XML Common
    Record format and records for another program in fixed-length
    flat-file format.

2)  Schools are required to register with the COD School Relations
    Center as a Full Participants prior to submitting 2004-2005 records
    if they were not a Full Participant for a prior award year. Schools
    must specify that they intend to process as a Full Participant for
    one program and a Phase-In Participant for the other program.

#### Example:

School A uses the Department of Education EDExpress software to submit
Direct Loan records and a homegrown software product to submit Pell
Grant records to COD. Since EDExpress software Release 2.0 supports the
XML Common Record for 2004-2005, School A is, by default, a COD Full
Participant for the Direct Loan program. However, their homegrown
software product has not been modified to accommodate the XML Common
Record in 2004-2005 and will continue to use the fixed length, flat file
formats. As a result, School A will continue to be a Phase-In
Participant for the Pell Grant program. School A contacts the COD School
Relations Center to register as a Full Participant for the Direct Loan
program and to confirm that it will continue to process as a Phase-In
Participant for the Pell Grant program.

## Common Record Valid Format Rules

### Common Record XML Schema Guidelines

The Common Record XML Schema guidelines reflect accepted industry
practices and recommendations from the Post-Secondary Electronic
Standards Council.

#### Business Rules:

1)  The Common Record XML Schema contains the validation rules for the
    Common Record document that is transmitted to COD.

2)  XML Schema version information is reflected in the Namespace
    attribute "xmlns" and its value (e.g.
    <http://www.ed.gov/FSA/COD/2004/v2.0d>) in the \<CommonRecord
    xmlns=""\> root element of the Common Record document.

3)  The Namespace attribute its value are required on all 2003-2004 and
    forward submissions.

4)  The XML Schema and the namespace attribute can be used throughout
    the development and testing of a system to validate the system's XML
    document output. For example, if a "1.0g" Namespace is submitted
    containing "2.0c" elements, it is likely that there is a software
    configuration problem.

5)  Typically, XML Schema validation is *not* performed during
    production processing.

6)  Since XML Schema validation is not performed during production, the
    Namespace attribute and its value should not be edited during
    production processing. Updates to the value contained in the
    Namespace attribute should *not* influence production processing.

7)  Editing against the value in the Namespace attribute may jeopardize
    processing when Schema updates occur.

### 2004-2005 Common Record XML Schema 

All tag names in the 2004-2005 Common Record XML schema v2.0 have been
updated to reflect EBXML standards and recommendations from the
Post-Secondary Electronic Standards Council. The Common Record XML
schema v2.0 latest release is available at
[www.ifap.ed.gov](http://www.ifap.ed.gov/).

#### Business Rules:

> **Note**: Please see "Common Record Schema Guidelines" for more
> information about editing against the Namespace attribute.

1)  All 2004-2005 award year Common Record document submissions must
    conform to the latest Common Record XML schema version for the
    2004-2005 award year (currently v2.0d).

2)  Common Record Response Documents for the 2004-2005 award year will
    be returned in the latest Common Record XML schema v2.0. (see
    example)

    a.  The attribute "xmlns" and its value (e.g.
        <http://www.ed.gov/FSA/COD/2004/v2.0d>) will be returned in the
        \<CommonRecord xmlns=""\> root element of Common Record Response
        Documents for 2004-2005 submissions.

3)  2003-2004 award year Common Record document submissions can either
    continue to conform to the latest 2003-2004 award year Common Record
    XML schema (v2.0c) OR conform to the new Common Record XML schema
    v2.0 latest release.

```{=html}
<!-- -->
```
a.  The attribute "xmlns" and its value (e.g.
    <http://www.ed.gov/FSA/COD/2004/v2.0d> or .
    http://www.ed.gov/FSA/COD/2003/v2.0c) in the \<CommonRecord
    xmlns=""\> root element of the document are required on all
    2003-2004 submissions.

```{=html}
<!-- -->
```
4)  Common Record Response Documents for the 2003-2004 award year will
    be returned in the latest 2003-2004 award year Common Record XML
    schema (v2.0c). (see example)

```{=html}
<!-- -->
```
a.  The attribute "xmlns" and its value (e.g.
    http://www.ed.gov/FSA/COD/2003/v2.0c) will be returned in the
    \<CommonRecord xmlns=""\> root element of Common Record Response
    Documents for 2004-2005 submissions.

```{=html}
<!-- -->
```
5)  2002-2003 award year Common Record document submissions can either
    continue to conform to the Common Record XML schema v1.0g OR conform
    to the new Common Record XML schema v2.0 latest release for either
    2003-2004 (2.0c) or 2004-2005 (2.0d).

6)  Common Record Response Documents for the 2002-2003 award year will
    be returned in either the 1.0g schema or the latest XML schema
    version for the 2003-2004 award year (v2.0c). (see example)

7)  If multiple award years are submitted in one Common Record document,
    Common Record Response Documents will be returned in the latest XML
    schema version used to submit records for the highest award year
    contained in the Common Record submission. (see example)

8)  The COD System uses the XML format of the Document ID tag as an
    indicator of the XML schema version to which the Common Record
    document conforms. The COD System processes the Common Record
    Document using the XML schema version indicated by the Document ID
    tag.

```{=html}
<!-- -->
```
a.  If tags are identified that are not specific to the XML schema
    version used for processing, the document is considered invalid and
    Customer Service is notified of the error. Customer Service works
    with the school to avoid future processing problems.

```{=html}
<!-- -->
```
9)  Non-standard abbreviations have been eliminated from all tag names
    in the XML Common Record XML schema v2.0.

10) The following tags have been added to the XML Common Record schema
    v2.0:

```{=html}
<!-- -->
```
a.  \<CPSVerificationIndicator\>

b.  \<HighestCPSTransactionNumber\>

> **Note**: Please refer to Volume II, Section 3 -- Full Participant
> Common Record Layout in this technical reference for more information
> about the CPS Verification Indicator and Highest CPS Transaction
> Number tags.

***Example:***

+-------------+--------------+-------------+-------------------------+
| **Common    | **Award      | **Schema    | **Namespace Value       |
| Record      | Years        | version     | returned in Response**  |
| Schema      | contained in | contained   |                         |
| Version     | the Common   | in the COD  |                         |
| submitted** | Record       | Common      |                         |
|             | Submission** | Record      |                         |
|             |              | Response    |                         |
|             |              | Document**  |                         |
+-------------+--------------+-------------+-------------------------+
| 1.0g        | 0203         | 1.0g        | n/a                     |
+-------------+--------------+-------------+-------------------------+
| 2.0c        | 0203         | 2.0c        | http://www.ed           |
|             |              |             | .gov/FSA/COD/2003/v2.0c |
+-------------+--------------+-------------+-------------------------+
| 2.0d        | 0203         | 2.0c        | http://www.ed           |
|             |              |             | .gov/FSA/COD/2003/v2.0c |
+-------------+--------------+-------------+-------------------------+
| 2.0c        | 0304         | 2.0c        | http://www.ed           |
|             |              |             | .gov/FSA/COD/2003/v2.0c |
+-------------+--------------+-------------+-------------------------+
| 2.0d        | 0304         | 2.0c        | http://www.ed           |
|             |              |             | .gov/FSA/COD/2003/v2.0c |
+-------------+--------------+-------------+-------------------------+
| 2.0c        | 0405         | 2.0d        | http://www.ed           |
|             |              |             | .gov/FSA/COD/2004/v2.0d |
+-------------+--------------+-------------+-------------------------+
| 2.0d        | 0405         | 2.0d        | http://www.ed           |
|             |              |             | .gov/FSA/COD/2004/v2.0d |
+-------------+--------------+-------------+-------------------------+
| 2.0c        | 0203         | 2.0d        | http://www.ed           |
|             |              |             | .gov/FSA/COD/2004/v2.0d |
|             | 0304         |             |                         |
|             |              |             |                         |
|             | 0405         |             |                         |
+-------------+--------------+-------------+-------------------------+
| 2.0d        | 0203         | 2.0d        | http://www.ed           |
|             |              |             | .gov/FSA/COD/2004/v2.0d |
|             | 0304         |             |                         |
|             |              |             |                         |
|             | 0405         |             |                         |
+-------------+--------------+-------------+-------------------------+
| 2.0c        | 0203         | 2.0c        | http://www.ed           |
|             |              |             | .gov/FSA/COD/2003/v2.0c |
|             | 0304         |             |                         |
+-------------+--------------+-------------+-------------------------+

### Maximum Length Values and Leading Zeros

XML does not require that the data occupy the maximum length specified
for a tag.

#### Business Rules:

1)  Do not include leading zeros and spaces to satisfy the maximum
    length for a given tag.

#### Examples:

EXAMPLE #1:

In the example below, the student's first name, John, is four (4)
characters long. Although the first name tag has a maximum length of 12
characters, leading zeros or spaces are not necessary to occupy the
maximum length of the tag.

\<FirstName\>JOHN\</FirstName\>

EXAMPLE #2:

In the example below, the Disbursement Amount is 400.00. Although the
disbursement amount tag has a valid value up to 99999999.99, leading
zeros or spaces are not necessary to occupy the length of the tag.

\<DisbursementAmount\>400.00\</DisbursementAmount\>

### Empty (Blank) and Null Tags

The COD System differentiates between a tag being empty (blank) and a
tag being null in the database.

#### Business Rules:

1)  An empty tag is one in which content of the tag equals blank or
    spaces.

2)  An empty tag is reported as:

> \<LowTuitionFeesCode\>\</LowTuitionFeesCode\>
>
> OR
>
> \<LowTuitionFeesCode/\>

3)  Tags not necessary or not applicable for the document submission
    should be omitted, rather than reported as empty. See EXAMPLE #1, 2.

4)  A blank tag is reported as:

> \<LowTuitionFeesCode\> \</LowTuitionFeesCode\>

5)  Tags that can contain blank as a valid value have \<xsd: enumeration
    value= " "/\> defined for them in the XML Common Record Schema.

6)  If a school reports blank for a tag that does NOT have blank as a
    valid value defined in the XML Common Record Schema, the tag will
    reject with error code 996.

7)  If a school reports blank for a tag that does have blank as a valid
    value defined in the XML Common Record Schema, blank will override
    the data in the COD database.

8)  A null tag is used to remove or delete content currently on the COD
    database.

9)  A null tag is reported as:

> \<LowTuitionFeesCode xsi:nil="true"\>

10) Tags that can contain null values have a nil=true attribute set for
    them in the XML Common Record Schema.

11) If a tag has a minOccurs greater than zero and the school has no
    content to report in that tag, the school must report a null tag.
    See EXAMPLE #3.

#### Examples:

EXAMPLE #1

If a student does not have a middle initial, the Middle Initial tag
should be omitted from the Common Record, rather than reported as empty
or blank.

\<Name\>

> \<FirstName\>SUE\</FirstName\>
>
> \<LastName\>SMITH\</LastName\>

\</Name\>

EXAMPLE #2

For Direct Loans, the Additional Unsubsidized Loan for Health
Professionals Indicator, \<HPPAIndicator\>, is not necessary if the
student does not qualify. In these cases, this tag should not be
included in the document, rather than reported as empty.

EXAMPLE #3

Address State/Province Code, \<AddressStateProvinceCode\>, is a required
tag in the Address complex element. Address State/Province Code has a
minimum length of 2 characters and therefore, the tag cannot be
submitted as empty. Additionally, blank is not an enumerated value. If
reporting a foreign address where Address State/Province Code is not
applicable, the Address State/Province Code tag must be reported as
null, rather than being omitted or reported as empty or blank.

\<AddressStateProvinceCode
xsi:nil=\'true\'\>\</AddressStateProvinceCode\>

### Data Types

The Common Record includes the following data types:

1)  Date

2)  Date/Time

3)  Year

4)  Decimal

5)  Integer

6)  String

7)  Boolean

**Note:** Each of these data types is discussed in detail below.

### Date Fields

All date fields on the Common Record use the following format:
CCYY-MM-DD.

#### Business Rules:

1.  The dashes must be included.

2.  The CC designates the Century.

3.  The YY designates the Year.

4.  The MM designates the Month.

5.  The DD designates the Day.

6.  A leap year is defined as one in which the value of YY is divisible
    by four (4).

7.  In a leap year, the valid values for DD are "01 -- 29" when MM is
    equal to "02".

> **Note:** This leap year logic represents no change from prior years.

### Year Fields

All year fields on the Common Record use the following format: CCYY.

#### Business Rules:

1)  The CC designates the Century.

2)  The YY designates the Year.

### Date/Time Fields

All date/time fields on the Common Record use the following format:
CCYY-MM-DDThh:mm:ss.ff.

#### Business Rules:

1)  The punctuation marks (dashes, colons and decimal point) must be
    included.

2)  The CC designates the Century.

3)  The YY designates the Year.

4)  The MM designates the Month.

5)  The DD designates the Day.

6)  The T is the date/time separator.

7)  The hh designates the Hour.

8)  The mm designates the Minutes.

9)  The ss designates the Seconds.

10) The ff designates the hundredths of a second. This value may be zero
    (00).

11) The hh must be submitted in 24 hour clock time.

### Decimal Fields

Decimal fields on the Common Record are either dollar amount fields or
percentage fields. Each of these field types is described in detail
below.

### Dollar Amount Fields

Dollar amount fields on the Common Record use the following format:
-999999.99 to 999999999999.99.

#### Business Rules:

1)  Leading zeros are not necessary to occupy the maximum length of the
    field.

2)  Dollar amount fields may include two digits to the right of a
    decimal point.

3)  If a dollar amount reported by the school does not contain a decimal
    point, the COD System infers a decimal point and two zeros after the
    last digit reported. See EXAMPLE #1.

4)  To report cents (partial dollar amounts), the school must submit a
    decimal point and the digits to the right of the decimal point. See
    EXAMPLE \# 1.

5)  When reporting a positive dollar amount, the school must submit
    amount fields without a sign indicator.

6)  When reporting a negative dollar amount, the school must submit the
    amount field with the negative sign in the lead character, e.g.
    FISAP Income Amount. See EXAMPLE #2.

> **Note**: FISAP Income Amount field is currently not in use for the
> 2002-2003 award year and forward.

7)  Common Records may be returned to the source with a negative sign in
    the lead character of a dollar amount field, e.g. Payment to
    Servicer Amount. See EXAMPLE #3.

8)  The following fields on the Common Record are dollar amount fields:

    a.  Total Award Amount Reported, \<TotalReportedAward\>

    b.  Total Disbursement Amount Reported,
        \<TotalReportedDisbursement\>

    c.  Award Amount, \<FinancialAwardAmount\>

    d.  Federal Share Amount, \<FederalShareAmount\> (**Note**:
        Currently not applicable for the 2002-2003 award year and
        forward.)

    e.  FISAP Income Amount, \<FISAPIncomeAmount\> (**Note**: Currently
        not applicable for the 2002-2003 award year and forward.)

    f.  Award Amount Requested, \<FinancialAwardAmountRequested\>
        (**Note**: For 2002-2003 award year only)

    g.  Cost of Attendance, \<AttendanceCost\>

    h.  Disbursement Amount, \<DisbursementAmount\>

    i.  Disbursement Net Amount, \<DisbursementNetAmount\>

    j.  Disbursement Fee Amount, \<DisbursementFeeAmount\>

    k.  Interest Rebate Amount, \<InterestRebateAmount\>

    l.  Payment to Servicer Amount, \<PaymentToServicerAmount\>

    m.  Booked Loan Amount, \<BookedLoanAmount\>

    n.  Endorser Amount, \<EndorserAmount\>

    o.  Year to Date Disbursement Amount, \<YTDDisbursementAmount\>

    p.  Scheduled Federal Pell Grant, \<ScheduledPellGrant\>

    q.  Negative Pending Amount, \<NegativePendingAmount\>

    r.  Total Financial Disbursement Accepted,
        \<TotalFinancialDisbursementAccepted\>

    s.  Total Financial Award Accepted, \<TotalFinancialAwardAccepted\>

    t.  Total Funded Disbursement Accepted,
        \<TotalFundedDisbursementAccepted\>

    u.  Total NonFunded Disbursement Accepted,
        \<TotalNonFundedDisbursementAccepted\>

    v.  Total Amount Corrected, \<TotalFinancialAwardCorrected\>

#### Examples:

EXAMPLE #1:

When reporting an amount of \$2625.34:

1\) Include the decimal point and two digits to the right: 2625.34

> OR

2\) Include the decimal point and two zeroes to the right: 2625.00

> OR

3\) Omit the decimal point and report the whole dollar amount only: 2625

Then, the COD System infers a decimal point and two zeros and stores
2625**.**00

**DO NOT** submit 262500 as the COD System infers a decimal and stores
this submission as 262500.00.

**Note**: Pennies are not processed or stored by the COD System for the
Direct Loan Program but are processed and stored for the Pell Grant
Program. All Direct Loan reported amounts that include partial dollar
amounts will be truncated. Please refer to the Reporting Pennies in the
Award and Disbursement Amount Data Elements sections for more
information about reporting pennies in the Direct Loan and Pell Grant
Programs.

EXAMPLE #2:

The FISAP Income Amount tag can be reported with a negative value for
Campus-Based information.

\<FISAPIncomeAmount\>-10000\</FISAPIncomeAmount\>

**Note**: FISAP Income Amount tag is currently not applicable for the
2002-2003 award year and forward.

EXAMPLE #3:

The Payment to Servicer Amount is returned with a negative sign as the
lead character in the amount field.

\<PaymentToServicerAmount\>-1000.00\</PaymentToServicerAmount\>

**Note:** Refer to the topic entitled "Generating Payment for Servicer
Response" for more information on the Payment to Servicer Amount.

### Percentage Fields

Percentage fields on the Common Record use the following format: 0 --
999.999

#### Business Rules:

1)  Leading zeros are not necessary to occupy the maximum length of the
    field.

2)  Percents must be reported as whole numbers or mixed numbers without
    the percent sign.

3)  The following fields on the Common Record are percentage fields:

    a.  Origination Fee Percentage, \<OriginationFeePercent\>

    b.  Interest Rebate Percentage, \<InterestRebatePercent\>

    c.  Total Eligibility Used, \<TotalEligibilityUsed\>

#### Examples:

Three percent (3%) is reported as 3 or 3.0 and the COD System stores as
3.000

One and a half percent (1.5%) is reported as 1.5 and the COD System
stores as 1.500

**Note**: Please refer to Volume II, Section 3 - Common Record Layout in
this Technical Reference for more information on valid values and
formats on specific fields.

### Integer Fields

Integer fields on the Common Record are non-dollar amount,
non-percentage, numeric fields.

#### Business Rules:

1)  Integer fields contain whole numbers.

2)  Integer fields do not contain decimal points, dollar or percent
    signs.

### String Fields

String fields on the Common Record are alphanumeric fields that can
contain a variety of characters.

#### Business Rules:

1)  String fields can contain all ASCII characters, except a raw,
    unescaped opening angle bracket (\<), ampersand (&), closing angle
    bracket (\>), quotation mark (\"), or apostrophe (\').

> **Note:** Refer to the topic entitled "XML Predefined Entity
> References" for more information.

### Boolean Fields

Boolean fields on the Common Record are fields that have exactly two
values: true or false

#### Business Rules:

1)  Boolean fields contain a value of 'true' or 'false.'

### XML Predefined Entity References

XML does not allow character data inside an element to contain a raw
unescaped opening angle bracket (\<), ampersand (&), closing angle
bracket (\>), quotation mark (\"), or apostrophe (\'). If these
characters are necessary in your markup, they must be escaped using
predefined entity references. An XML parser replaces the predefined
entity references with actual characters.

#### Business Rules:

1)  XML predefines the following five entity references:

    -   &lt; the less than sign (\<)

    -   &amp; the ampersand (&)

    -   &gt; the greater than sign (\>)

    -   &quot; the straight, double quotation marks (\")

    -   &apos; the apostrophe, straight quotation mark (\')

## Common Record Processing Rules

### Document

An XML document is the vehicle through which data is transmitted. A
Common Record transmission is considered to be an XML document. A Common
Record transmission, or document, may contain multiple awards and
multiple disbursements for one or multiple students. In cases where the
Reporting School transmits data for multiple Attended Schools, the
Common Record may contain student, award, and disbursement data for
multiple schools. It can be thought of as a batch.

### Document Submission

Common Record documents can be submitted to the COD System via Batch
Processing or the COD web site.

### Batch Processing

All documents submitted via batch processing for the 2004-2005 award
year must be submitted via the Electronic Data Exchange over the Student
Aid Internet Gateway (SAIG).

#### Business Rules:

1)  All documents submitted via batch processing must be submitted via
    the Student Aid Internet Gateway (SAIG).

2)  Each transmission must have a SAIG transmission batch header
    (O\*N05) and trailer (O\*N95) record.

3)  Each transmission can include the SAIG transmission header (O\*N01)
    and trailer (O\*N99) record. Inclusion of the SAIG transmission
    header (O\*N01) and trailer (O\*N99) record is optional, and is not
    required for COD processing.

4)  Only one set of Common Record begin and end tags can be submitted
    within each pair of SAIG transmission batch header (O\*N05) and
    trailer (O\*N95).

5)  If more than one set of Common Record begin and end tags is
    submitted within a pair of SAIG transmission batch header (O\*N05)
    and trailer (O\*N95) COD rejects the document with error code 105.

6)  Multiple pairs of SAIG transmission batch headers (O\*N05) and
    trailers (O\*N95) can be submitted within the SAIG transmission
    headers (O\*N01) and trailers (O\*N99). See EXAMPLE below.

7)  Beginning in award year 2004-2005, SAIG has expanded the variable
    length Batch Number field on the SAIG Transmission batch header
    (O\*N05) and trailer (O\*N95) from positions 42 -- 67 to positions
    42 -91.

    a.  Positions 42 -- 61 are reserved for school use.

    b.  Positions 62 -- 91 are reserved for Department of Education use.

    c.  COD populates positions 62 -- 91 with the 30 character Common
        Record Document ID on all response records. If the school
        populates any data in positions 62-91 on the incoming record,
        COD will overwrite this data with the Document ID on the
        response record.

> **Note**: EDConnect users must upgrade to EDConnect version 5.3 or
> higher in order for their records not to reject.

**Note:** For further information, please refer to the "SAIG Host
Communication Guide" <http://www.sfadownload.ed.gov/mainframeguide.htm>

#### Example:

N01 -- Transmission Header

N05 -- Transmission Batch Header

\<CommonRecord\>

\</CommonRecord\>

N95 - Transmission Batch Trailer

N05 - Transmission Batch Header

\<CommonRecord\>

\</CommonRecord\>

N95 -- Transmission Batch Trailer

N99 - Transmission Trailer

### COD Message Classes

For information on the message classes to be used by COD Full
Participants, please refer to Volume II, Section 2 - COD Full
Participant Message Class in this Technical Reference.

### Logical Record Length Limitation

For information and recommended solutions concerning the 32 kilobyte
file length limitation on mainframe systems and the 4000 byte limitation
on the COD System, refer to the Common Record Physical Record Layout
topics within Volume II, Section 3 - Common Record Layout in this
Technical Reference.

### COD Receipts 

COD Receipts are generated for every Common Record document received via
SAIG by the COD System. The COD Receipt indicates that the Common Record
document was received and can be read by the COD System.

#### Business Rules:

1)  One COD Receipt is generated per Common Record document received via
    SAIG by the COD System.

2)  The COD Receipt is generated after the COD System validates the
    Common Record against the XML Common Record Schema, but before
    actual processing of the Common Record.

3)  A COD Receipt is not generated for Common Record data submitted via
    the COD web site.

#### Example:

The following is an example of a COD Receipt:

CommonRecord\>

  \<DocumentID\>2004-03-18T09:09:09.0012345678\</DocumentID\>

  \<CreatedDateTime\>2004-03-18T09:20:01.00\</CreatedDateTime\>

\<Source\>

  \<COD EntityID=\"00000001\"/\>

  \</Source\>

\<Destination\>

  \<School EntityID=\"12345678\"/\>

  \</Destination\>

  \<Receipt\>2004-03-18T09:21:00.00\</Receipt\>

\</CommonRecord\>

### Response Documents

For all Common Records received and processed by the COD System, the COD
System returns a Response document indicating the status of Common
Record processing, including any rejected data elements and reason for
the rejection.

#### Business Rules:

1.  The COD System sends one Response document for each Common Record
    document processed by the COD System.

2.  A Response complex element is generated for each major complex
    element reported on a Common Record document: Document, Reported
    School, Student, Award, and Disbursement.

3.  All Response complex elements are nested within the Response
    document.

4.  Schools have an option to receive a Full or Standard Response to
    Common Records processed by the COD System.

    a.  A Full Response contains all the original tags sent by the
        School and the rejected data elements and reason codes.

    b.  A Standard Response contains only the rejected data elements and
        reason codes.

    c.  This option defaults to a Standard Response.

> **Note**: EDExpress users always receive a Full Response regardless of
> their selected response option.

5.  Schools can override this option on a record-by-record basis by
    submitting the \<FullResponseCode\> tag on the Common Record.

    a.  If the \<FullResponseCode\> tag is not sent, the option defaults
        to Standard Response.

6.  Schools must contact COD School Relations if they would like the
    default option changed to Full Response.

7.  For Common Records transmitted via SAIG, the COD System sends
    Response Documents to the school's SAIG mailbox.

8.  For Common Records transmitted via the web, schools have an option
    to receive a response either via the web or via their SAIG mailbox.

    a.  Unless the school changes this option on the COD web site, the
        school will receive a response via the web.

    b.  A response via the web will only indicate whether the record was
        accepted or rejected and will not contain submitted data
        elements.

    c.  Schools that participate in both the Pell Grant and Direct Loan
        Programs that do not wish to receive a response via the web must
        change this option for each program.

    d.  Schools that chose to receive a response for web activity via
        their SAIG mailbox will receive a Full Response.

+--------------------+----------------------+-------------------------+
| **School will      | **If the school      |                         |
| receive:**         | sends the Common     |                         |
|                    | Record via:**        |                         |
+--------------------+----------------------+-------------------------+
|                    | **SAIG Mailbox**     | **COD Web Site**        |
+--------------------+----------------------+-------------------------+
| > **Receipt**      | > Via SAIG Mailbox   | > N/A                   |
+--------------------+----------------------+-------------------------+
| > **Response**     | > Via SAIG Mailbox   | > On COD Web Site       |
|                    |                      |                         |
|                    |                      | AND/OR                  |
|                    |                      |                         |
|                    |                      | > Via SAIG Mailbox      |
+--------------------+----------------------+-------------------------+

#### 

#### Example:

The following diagram illustrates how a Response complex element is
generated for every complex element of data submitted on the Common
Record and the nesting of those complex elements within the Response
Document:

> Common Record
>
> Reporting School
>
> Attended School
>
> Student
>
> Award
>
> Award Response
>
> Disbursement
>
> Disbursement Response
>
> Student Response
>
> Attended School Response
>
> Reporting School Response
>
> Common Record Response

### Response Code 

For each Response complex element returned, the COD System generates a
Response Code that indicates whether the complex element was accepted,
rejected, or corrected. The Response complex element and Response Code
is returned for each major complex element: Reporting School, Student,
Award, and Disbursement.

#### Business Rules:

1.  The COD System returns a Response complex element with a Response
    Code of A (Accepted), R (Rejected), or C (Corrected).

2.  A Response complex element with a Response Code of A (Accepted) is
    returned to indicate that the complex element was accepted.

3.  A Response complex element with a Response Code of A (Accepted) may
    have a warning edit returned on the complex element.

4.  A Response complex element with a Response Code of A (Accepted) does
    not exclude another complex element in the hierarchy from being
    accepted, corrected, or rejected.

```{=html}
<!-- -->
```
a.  If a Person complex element is Accepted, this does not exclude the
    possibility that the Award or Disbursement complex elements may be
    accepted, corrected, or rejected.

b.  If an Award complex element is Accepted, this does not exclude the
    possibility that the Person or Disbursement complex elements may be
    accepted, corrected, or rejected.

```{=html}
<!-- -->
```
4)  A Response complex element with a Response Code of R (Rejected) is
    returned to indicate that the data elements in the complex element
    are rejected.

5)  A Response complex element with a Response Code of R (Rejected) is
    returned with at least one reject edit.

6)  A Response complex element with a Response Code of R (Rejected) can
    result in other complex elements being rejected.

```{=html}
<!-- -->
```
a.  On the initial submission of a Person, if a Person complex element
    is rejected, then the Award complex element is rejected, even if all
    data in the Award complex element passed the edits, because the COD
    System cannot accept an Award complex element without an established
    Person.

b.  On the initial submission of a Person, if all Award complex elements
    in the submission are rejected, then the Person complex element is
    rejected, because the COD System cannot accept a Person complex
    element without at least one established Award.

c.  On an initial submission of an Award, if an Award complex element is
    rejected, then the Disbursement complex element is rejected, even if
    all data in the Disbursement complex element passed the edits,
    because the COD System cannot accept the Disbursement complex
    element without an established Award.

> **Note**: Please refer to the topic entitled "Documents Must Contain
> At Least One Detailed Record" for more information.

7)  A Response complex element with a Response Code of C (Corrected) is
    returned only when at least one data element within the complex
    element has been corrected. Because the COD System corrects only
    Pell Grant Award and Disbursement data for schools that choose to
    have their data corrected rather than rejected, a \<ResponseCode \>
    of C is returned only in these complex elements.

```{=html}
<!-- -->
```
a.  A Response complex element with a Response Code of C (Corrected)
    does not preclude another complex element in the hierarchy from
    being accepted, corrected, or rejected.

b.  If an Award complex element is corrected, this does not exclude the
    possibility that the Disbursement complex element may be accepted,
    corrected, or rejected.

c.  If a Disbursement complex element is corrected, this does not
    exclude the possibility that the Award complex element may be
    accepted, corrected, or rejected.

#### Example:

+----------------------+-----------------------+----------------------+
| **Complex Element**  | **Processed with      | **Response Code**    |
|                      | Edits**               |                      |
+----------------------+-----------------------+----------------------+
| Person               | No                    | A (Accepted)         |
+----------------------+-----------------------+----------------------+
| Award (1)            | No                    | A (Accepted)         |
+----------------------+-----------------------+----------------------+
| Disbursement         | No                    | A (Accepted)         |
|                      |                       |                      |
| (for Award 1)        |                       |                      |
+----------------------+-----------------------+----------------------+

+----------------------+-----------------------+----------------------+
| **Complex Element**  | **Processed with      | **Response Code**    |
|                      | Edits**               |                      |
+----------------------+-----------------------+----------------------+
| Person               | No                    | A (Accepted)         |
+----------------------+-----------------------+----------------------+
| Award (1)            | Yes (with             | C (Corrected)        |
|                      | corrections)          |                      |
+----------------------+-----------------------+----------------------+
| Disbursement         | No                    | A (Accepted)         |
|                      |                       |                      |
| (for Award 1)        |                       |                      |
+----------------------+-----------------------+----------------------+

+----------------------+-----------------------+----------------------+
| **Complex Element**  | **Processed with      | **Response Code**    |
|                      | Edits**               |                      |
+----------------------+-----------------------+----------------------+
| Person               | No                    | R (Rejected)         |
|                      |                       | \*Because no Awards  |
|                      |                       | were accepted        |
+----------------------+-----------------------+----------------------+
| Award (1)            | Yes                   | R (Rejected)         |
+----------------------+-----------------------+----------------------+
| Disbursement         | No                    | R (Rejected)         |
|                      |                       | \*Because the Award  |
| (for Award 1)        |                       | was not accepted     |
+----------------------+-----------------------+----------------------+

+----------------------+-----------------------+----------------------+
| **Complex Element**  | **Processed with      | **Response Code**    |
|                      | Edits**               |                      |
+----------------------+-----------------------+----------------------+
| Person               | No                    | A (Accepted)         |
|                      |                       | \*Because at least   |
|                      |                       | one Award was        |
|                      |                       | accepted             |
+----------------------+-----------------------+----------------------+
| Award (1)            | No                    | A (Accepted)         |
+----------------------+-----------------------+----------------------+
| Award (2)            | Yes                   | R (Rejected)         |
+----------------------+-----------------------+----------------------+
| Disbursement         | No                    | R (Rejected)         |
|                      |                       | \*Because the Award  |
| (for Award 2)        |                       | was not accepted     |
+----------------------+-----------------------+----------------------+

### 

### Storing of Reject Records

The COD System does not store records that have rejected at the Document
(Batch) and Entity level. The COD System does store Document and Entity
data from records that have been rejected at the Person, Award, or
Disbursement level. Records that have rejected at the Person, Award,
and/or Disbursement levels can be viewed on the COD web site.

#### Business Rules: 

1)  Schools may view their rejected records on the COD web site.

2)  Rejected records are not included in the Pell YTD, Pell
    Reconciliation report, or Direct Loan Rebuild file.

> **Note**: Please refer to Volume VIII, Section 8 -- COD Reports for
> more information concerning the Pell YTD, Pell Reconciliation report,
> and Direct Loan Rebuild file.

### Document Validation

If a document does not validate against the XML Common Record Schema,
the COD System does not process the document.

#### Business Rules:

1.  The COD System contains a validation program that ensures that the
    Common Record documents are well formed and properly structured.

2.  The COD System processes the Common Record Document using the XML
    schema version indicated by the Document ID tag.

    a.  If tags are identified that are not specific to the XML schema
        version used for processing, the document is considered invalid
        and Customer Service is notified of the error. Customer Service
        works with the school to avoid future processing problems

3.  The COD System does not process a document if:

    a.  The Document ID is missing or incomplete.

> OR

b.  The document structure does not meet the rules of the XML Common
    Record Schema.

> OR

c.  More than one Common Record document is inserted between a pair of
    SAIG Transmission Batch Header (O\*N05) and Trailers (O\*N95).

```{=html}
<!-- -->
```
4)  When a Common Record is submitted with a missing or incomplete
    Document ID, the COD System cannot return a receipt or response to
    the sender.

5)  When a Common Record document does not meet the rules of the XML
    Common Record Schema, the COD System returns a Receipt and Response
    with an error code

6)  When more than one Common Record is inserted between a pair of SAIG
    Transmission Batch Headers (O\*N05) and Trailer (O\*N95), the COD
    System returns a Receipt and Response with an error code 105 and
    message.

> **Note:** This is not an issue if you use Edconn32.

**Note:** Please refer to the Document ID Required for Document
Submission, Sequence of Data Elements Required for Document Processing,
and Document Submission sections for more information.

### Sequence of Data Elements Required for Document Processing

The sequence of data within the Common Record is dictated by the
sequence of data elements presented in the XML Common Record Schema.

#### Business Rules:

1)  Data elements submitted by a school must occur in the same sequence
    as depicted in the XML Common Record Schema.

2)  A Common Record submitted with data elements out of sequence will
    not validate against the XML Common Record Schema, and will
    therefore be rejected.

### Documents Must be Submitted by a Full Participant

The COD System accepts Common Records submitted by Full Participants.
Phase-In Participants must submit records in the Direct Loan or Pell
Grant fixed-length record formats to the COD System.

#### Business Rules:

1)  XML Common Records submitted by Phase-In Participants are rejected
    with error code 107 for 2003-2004 records and forward and error code
    010 for 2002-2003 records.

2)  Fixed-length format records submitted by Full Participants are
    rejected with error code 005.

> **Note:** For information on the fixed-length record formats, refer to
> Volume III, Section 3 -Pell Grant Fixed Length Record Layouts and
> Volume IV, Section 3 - Direct Loan Fixed Length Record Layouts
> available within this Technical Reference.

### Document ID Required for Document Submission 

The COD System checks to ensure the Document ID is present and is
properly formatted.

#### Business Rules:

1)  Document ID is an essential element for importing, storing and
    tracking the data submitted in a Common Record Document by a school.

2)  The COD System does not process documents that do not have a
    Document ID.

3)  The COD System does not process documents that have an incomplete
    Document ID.

4)  The COD System does not process documents that have an invalid
    Document ID format.

5)  The COD System uses the Document ID as an indicator of the XML
    schema version to use for processing the entire document.

6)  The entity ID listed in the Document ID must be the same entity ID
    as the Source Entity ID.

7)  The COD System is unable to store a Common Record document that has
    an invalid, incomplete, or missing Document ID.

8)  The COD System cannot return a receipt or response to a sender that
    submits an invalid, incomplete, or missing Document ID.

**Note**: Please refer to Volume II, Section 3 - Common Record Layout in
this Technical Reference for proper format of the Document ID.

### Duplicate Document IDs

The COD System checks the Document ID for duplicates on the COD
database.

#### Business Rules:

1)  Document ID for Full Participants is defined as the DateTime stamp
    and the Source Entity ID.

2)  A duplicate document is defined as a document that has a Document ID
    identical to one already established on the COD System.

3)  The COD System rejects the document if the Document ID is duplicate.

4)  A rejected Document ID cannot be resubmitted as the COD System will
    recognize it as a duplicate.

5)  The COD System generates a Receipt if the Document ID is duplicate.

6)  The COD System generates a Response with error code 003 for
    documents with duplicate Document IDs. The Response does not contain
    detail data elements.

**Note:** Please refer to Volume II, Section 3 - Common Record Layout
for an example of a Document ID.

### Inability to Process Future-Dated Documents

The COD System confirms that the date portion of the Document\'s Created
DateTime is not greater than the System Date.

#### Business Rules:

1)  If the date portion of the Document\'s Created DateTime is greater
    than the System Date, the COD System rejects the document with error
    code 006.

2)  The COD System generates a Receipt and a Response for future-dated
    documents.

3)  Schools over the international dateline should resubmit documents
    rejected with error code 006.

### Documents Submitted Must Contain at Least One Detailed Record

A detailed record consists of at least one Student Identifier and one
Award. A Student Identifier consists of the student tag and three
attributes: Social Security Number, Date of Birth, and Last Name.

#### Business Rules:

1)  The COD System rejects the document if it does not contain at least
    one detailed record.

    a.  A detailed record on a New record is defined as at least one
        Student Identifier (Social Security Number, Date of Birth and
        Last Name) and one Award tag.

    b.  A detailed record on an Update record is defined as at least one
        Student Identifier (Social Security Number, Date of Birth and
        Last Name) and one Award tag.

```{=html}
<!-- -->
```
2)  The COD System generates a Response with error code 007 for
    documents with no detailed records.

**Note:** For more information on the Student Identifier, please refer
to the Student Identifier section. For more information on the Award,
please refer to the Minimum Data Elements Required for Document
Processing section.

### Document Submissions of One Detailed Record

The COD System is designed to process a large number of detailed records
at one time when submitted together in a Common Record document.
Standard school practice when submitting records is to submit a large
quantity of records at once in one document. The design of the COD
System incorporates this common school practice with its batch
processing functionality.

#### Business Rules:

1)  The COD System will accept and process single detailed record
    documents, but is not designed to regularly process multiple Common
    Record document submissions of one record each.

2)  Processing time increases with submission of multiple documents of
    one detailed record each.

```{=html}
<!-- -->
```
a.  The time it takes the COD System to process a Common Record document
    is effected by the amount of time it takes to process the individual
    components of the document:

    i.  the batch header and trailer

    ii. the records contained within the document

b.  The time it takes the COD System to process each record within a
    Common Record document is minimal in comparison to the time it takes
    the COD System to process the batch header and trailer.

c.  The processing time for the batch header and trailer does not vary
    with document size. The batch header and trailer will be processed
    in the same amount of time by the COD System for a document
    containing one detailed record, as for a document containing 50
    records.

d.  Processing time for a multiple records submitted in individual
    Common Record documents will take significantly more time than it
    takes to process the same number of records submitted together in
    one Common Record document. For example, it will take much longer
    for the COD System to process 50 documents of one record each than
    one document containing 50 records.

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```
3)  Multiple document submissions each containing one individual record
    will delay processing of all schools' records submitted after the
    group of single record documents.

4)  The COD System will NOT reject document submissions containing only
    one record.

5)  Document submissions containing only one record should be submitted
    on an exception basis only.

6)  The COD web site is designed to accommodate record submission on a
    record by record basis. Schools may submit multiple individual
    records to the COD System via the COD web site without experiencing
    processing delays.

### Minimum Data Elements Required for Document Processing

The COD System requires certain data elements for processing each
complex element of the document.

#### Business Rules

1)  The following data elements are required for processing a change to
    Student demographic data for a Pell Grant Award:

> \<CommonRecord xmlns=""\>
>
> \<DocumentID\>
>
> \<CreatedDateTime\>
>
> \<Source\>
>
> \<SourceEntityID=""\>
>
> \<Destination\>
>
> \<DestinationEntityID=""\>
>
> \<ReportedSchoolEntityID=""\>
>
> \<AttendedSchoolEntity ID\>
>
> \<Student SSN="" BirthDate="" LastName=""\>
>
> \<Pell\>
>
> \<FinancialAwardYear\>

2)  The following data elements are required for processing a change to
    Student demographic data for a Direct Loan Subsidized or
    Unsubsidized Award:

> \<CommonRecord xmlns=""\>
>
> \<DocumentID\>
>
> \<CreatedDateTime\>
>
> \<Source\>
>
> \<SourceEntityID=""\>
>
> \<Destination\>
>
> \<DestinationEntityID=""\>
>
> \<ReportedSchoolEntityID=""\>
>
> \<AttendedSchoolEntity ID\>
>
> \<Student SSN="" BirthDate="" LastName=""\>
>
> \<DLSubsidized\> OR \<DLUnsubsidized\>
>
> \<FinancialAwardYear\>
>
> \<FinancialAwardNumber\>

3)  The following data elements are required for processing a change to
    Student demographic data for a Direct Loan PLUS Award:

> \<CommonRecord xmlns=""\>
>
> \<DocumentID\>
>
> \<CreatedDateTime\>
>
> \<Source\>
>
> \<SourceEntityID=""\>
>
> \<Destination\>
>
> \<DestinationEntityID=""\>
>
> \<ReportedSchoolEntityID=""\>
>
> \<AttendedSchoolEntity ID\>
>
> \<Student SSN="" BirthDate="" LastName=""\>
>
> \<Borrower SSN="" BirthDate="" LastName=""\>
>
> \<DLPLUS\>
>
> \<FinancialAwardYear\>
>
> \<FinancialAwardNumber\>
>
> **Note:** The COD database is student centric. Changing the student
> demographic data for one award year and award type will change it for
> all award years and award types for that student. Please refer to the
> Changing Student Identifier Information topic for more information
> about submitting changes to the Student Identifier.

4)  The following data elements are required for processing a Direct
    Loan Subsidized or Unsubsidized Award:

> \<CommonRecord xmlns=""\>
>
> \<DocumentID\>
>
> \<CreatedDateTime\>
>
> \<Source\>
>
> \<Source EntityID=""\>
>
> \<Destination\>
>
> \<Destination EntityID=""\>
>
> \<ReportingSchool EntityID=""\>
>
> \<ReportedFinancialSummary\>
>
> \<FinancialAwardType\>
>
> \<FinancialAwardYear\>
>
> \<TotalCount\>
>
> \<TotalReportedAward\>
>
> \<AttendedSchool EntityID=""\>
>
> \<Student SSN="" BirthDate="" LastName=""\>
>
> \<DLLoanInformation Loankey=""\>
>
> \<OriginationFeePercent\>
>
> \<InterestRebatePercent\>
>
> \<StudentLevelCode\>
>
> \<FinancialAwardBeginDate\>
>
> \<FinancialAwardEndDate\>
>
> \<AcademicYearBeginDate\>
>
> \<AcademicYearEndDate\>
>
> \<DLSubsidized\> or \<DLUnsubsidized\>
>
> \<FinancialAwardYear\>
>
> \<CPSTransactionNumber\>
>
> \<FinancialAwardAmount\>
>
> \<LoanKey\>
>
> \<FinancialAwardNumber\>
>
> \<FinancialAwardID\>
>
> \<FinancialAwardCreateDate\>
>
> \<Disbursement\>
>
> \<Disbursement Number =""\>
>
> \<DisbursementAmount\>
>
> \<DisbursementDate\>
>
> \<DisbursementNetAmount\>
>
> \<DisbursementFeeAmount\>
>
> \<InterestRebateAmount\>

5)  The following data elements are required for processing a Direct
    Loan PLUS Award:

> \<CommonRecord xmlns=""\>
>
> \<DocumentID\>
>
> \<CreatedDateTime\>
>
> \<Source\>
>
> \<Source EntityID=""\>
>
> \<Destination\>
>
> \<Destination EntityID=""\>
>
> \<ReportingSchool EntityID=""\>
>
> \<ReportedFinancialSummary\>
>
> \<FinancialAwardType\>
>
> \<FinancialAwardYear\>
>
> \<TotalCount\>
>
> \<TotalReportedAward\>
>
> \<AttendedSchool EntityID=""\>
>
> \<Student SSN="" BirthDate="" LastName=""\>
>
> \<DLLoanInformation LoanKey=""\>
>
> \<OriginationFeePercent\>
>
> \<InterestRebatePercent\>
>
> \<StudentLevelCode\>
>
> \<FinancialAwardBeginDate\>
>
> \<FinancialAwardEndDate\>
>
> \<AcademicYearBeginDate\>
>
> \<AcademicYearEndDate\>
>
> \<DLPLUS\>
>
> \<FinancialAwardYear\>
>
> \<FinancialAwardAmount\>
>
> \<LoanKey\>
>
> \<DefaultOverpayCode\>
>
> \<FinancialAwardNumber\>
>
> \<FinancialAwardID\>
>
> \<FinancialAwardCreateDate\>
>
> \<FinancialAwardAmountRequested\>
>
> \<Disbursement\>
>
> \<Disbursement Number =""\>
>
> \<DisbursementAmount\>
>
> \<DisbursementDate\>
>
> \<DisbursementNetAmount\>
>
> \<DisbursementFeeAmount\>
>
> \<InterestRebateAmount\>
>
> \<Borrower SSN="" BirthDate="" LastName=""\>
>
> \<Identifiers\>
>
> \<Contacts\>
>
> \<Address\>
>
> \<AddressLine\>
>
> \<AddressCity\>
>
> \<AddressStateProvinceCode\>
>
> \<AddressPostalCode\>
>
> \<CitizenshipStatusCode\> (This tag is for student and parent
> borrower)
>
> \<DefaultOverpayCode\>

6)  The following data elements are required for processing a change to
    a Direct Loan (Subsidized, Unsubsidized, or PLUS) Award:

> \<CommonRecord xmlns=""\>
>
> \<DocumentID\>
>
> \<CreatedDateTime\>
>
> \<Source\>
>
> \<Source EntityID=""\>
>
> \<Destination\>
>
> \<Destination EntityID=""\>
>
> \<ReportingSchool EntityID=""\>
>
> \<ReportedFinancialSummary\>
>
> \<FinancialAwardType\>
>
> \<FinancialAwardYear\>
>
> \<TotalCount\>
>
> \<TotalReportedAward\>
>
> \<AttendedSchool EntityID=""\>
>
> \<Student SSN="" BirthDate="" LastName=""\>
>
> \<DLSubsidized\> or \<DLUnsubsidized\> or \<DLPLUS\>
>
> \<FinancialAwardYear\>
>
> \<FinancialAwardNumber\>
>
> \<FinancialAwardID\> (Optional)
>
> \<Disbursement\>
>
> \<Disbursement Number =""\>
>
> \<DisbursementAmount\>
>
> \<DisbursementDate\>
>
> \<DisbursementNetAmount\>
>
> \<DisbursementFeeAmount\>
>
> \<InterestRebateAmount\>

7)  The following data elements are required for processing a Direct
    Loan anticipated disbursement (Disbursement Release Indicator set to
    "false"):

> \<CommonRecord xmlns=""\>
>
> \<DocumentID\>
>
> \<CreatedDateTime\>
>
> \<Source\>
>
> \<Source EntityID=""\>
>
> \<Destination\>
>
> \<Destination EntityID=""\>
>
> \<ReportingSchool EntityID=""\>
>
> \<ReportedFinancialSummary\>
>
> \<FinancialAwardType\>
>
> \<FinancialAwardYear\>
>
> \<TotalCount\>
>
> \<TotalReportedAward\>
>
> \<TotalReportedDisbursement\>
>
> \<AttendedSchool EntityID=""\>
>
> \<Student SSN="" BirthDate="" LastName=""\>
>
> \<DLSubsidized\> or \<DLUnsubsidized\> or \<DLPLUS\>
>
> \<FinancialAwardYear\>
>
> \<FinancialAwardNumber\>
>
> \<FinancialAwardID\> (Optional)
>
> \<Disbursement\>
>
> \<Disbursement Number =""\>
>
> \<DisbursementAmount\>
>
> \<DisbursementDate\>
>
> \<DisbursementNetAmount\>
>
> \<DisbursementFeeAmount\>
>
> \<InterestRebateAmount\>
>
> \<DisbursementReleaseIndicator = "false"\>

8)  The following data elements are required for processing a Direct
    Loan actual disbursement (Disbursement Release Indicator set to
    "true"):

> \<CommonRecord xmlns=""\>
>
> \<DocumentID\>
>
> \<CreatedDateTime\>
>
> \<Source\>
>
> \<Source EntityID=""\>
>
> \<Destination\>
>
> \<Destination EntityID=""\>
>
> \<ReportingSchool EntityID=""\>
>
> \<ReportedFinancialSummary\>
>
> \<FinancialAwardType\>
>
> \<FinancialAwardYear\>
>
> \<TotalCount\>
>
> \<TotalReportedAward\>
>
> \<TotalReportedDisbursement\>
>
> \<AttendedSchool EntityID=""\>
>
> \<Student SSN="" BirthDate="" LastName=""\>
>
> \<DLSubsidized\> or \<DLUnsubsidized\> or \<DLPLUS\>
>
> \<FinancialAwardYear\>
>
> \<FinancialAwardNumber\>
>
> \<FinancialAwardID\> (Optional)
>
> \<Disbursement\>
>
> \<Disbursement Number=""\>
>
> \<DisbursementAmount\>
>
> \<DisbursementDate\>
>
> \<DisbursementSequenceNumber\>
>
> \<DisbursementNetAmount\>
>
> \<DisbursementFeeAmount\>
>
> \<InterestRebateAmount\>
>
> \<DisbursementReleaseIndicator = "true"\>

9)  The following data elements are required for processing a Pell Grant
    Award:

> \<CommonRecord xmlns=""\>
>
> \<DocumentID\>
>
> \<CreatedDateTime\>
>
> \<Source\>
>
> \<Source EntityID=""\>
>
> \<Destination\>
>
> \<Destination EntityID=""\>
>
> \<ReportingSchool EntityID=""\>
>
> \<ReportedFinancialSummary\>
>
> \<FinancialAwardType\>
>
> \<FinancialAwardYear\>
>
> \<TotalCount\>
>
> \<TotalReportedAward\>
>
> \<AttendedSchool EntityID=""\>
>
> \<Student SSN="" BirthDate="" LastName=""\>
>
> \<Pell\>
>
> \<FinancialAwardYear\>
>
> \<CPSTransactionNumber\>
>
> \<FinancialAwardAmount\>
>
> \<AttendanceCost\>
>
> \<EnrollmentDate\>
>
> **Note:** Beginning with the 2004-2005 award year and forward, the
> following data elements will not be required by the COD System for
> processing a Pell Grant Award:
>
> \<AcademicCalendarCode\>
>
> \<PaymentMethodCode\>
>
> \<WeeksUsedCalculate\>
>
> \<WeeksProgramsAcademicYear\>
>
> \<HoursAwardYear\>
>
> \<HoursProgramsAcademicYear\>
>
> If a Full Participant school submits data in these tags, the COD
> System will not edit or store the data and will not return these tags
> on a Full Response.

10) The following data elements are required for processing a change to
    a Pell Grant Award:

> \<CommonRecord xmlns=""\>
>
> \<DocumentID\>
>
> \<CreatedDateTime\>
>
> \<Source\>
>
> \<Source EntityID=""\>
>
> \<Destination\>
>
> \<Destination EntityID=""\>
>
> \<ReportingSchool EntityID=""\>
>
> \<ReportedFinancialSummary\>
>
> \<FinancialAwardType\>
>
> \<FinancialAwardYear\>
>
> \<TotalCount\>
>
> \<TotalReportedAward\>
>
> \<AttendedSchool EntityID=""\>
>
> \<Student SSN="" BirthDate="" LastName=""\>
>
> \<Pell\>
>
> \<FinancialAwardYear\>

11) The following data elements are required for a Pell Grant
    anticipated disbursement (Disbursement Release Indicator set to
    "false"):

> \<CommonRecord xmlns=""\>
>
> \<DocumentID\>
>
> \<CreatedDateTime\>
>
> \<Source\>
>
> \<Source EntityID=""\>
>
> \<Destination\>
>
> \<Destination EntityID=""\>
>
> \<ReportingSchool EntityID=""\>
>
> \<ReportedFinancialSummary\>
>
> \<FinancialAwardType\>
>
> \<FinancialAwardYear\>
>
> \<TotalCount\>
>
> \<TotalReportedAward\>
>
> \<TotalReportedDisbursement\>
>
> \<AttendedSchool EntityID=""\>
>
> \<Student SSN="" BirthDate="" LastName=""\>
>
> \<Pell\>
>
> \<FinancialAwardYear\>
>
> \<Disbursement\>
>
> \<Disbursement Number =""\>
>
> \<DisbursementAmount\>
>
> \<DisbursementDate\>
>
> \<DisbursementReleaseIndicator = "false"\>
>
> \<PaymentPeriodStartDate\> (if school ineligible)

12) The following data elements are required for processing a Pell Grant
    actual disbursement (Disbursement Release Indicator set to "true"):

> \<CommonRecord xmlns=""\>
>
> \<DocumentID\>
>
> \<CreatedDateTime\>
>
> \<Source\>
>
> \<Source EntityID=""\>
>
> \<Destination\>
>
> \<Destination EntityID=""\>
>
> \<ReportedSchool EntityID=""\>
>
> \<ReportedFinancialSummary\>
>
> \<FinancialAwardType\>
>
> \<FinancialAwardYear\>
>
> \<TotalCount\>
>
> \<TotalReportedAward\>
>
> \<TotalReportedDisbursement\>
>
> \<AttendedSchool EntityID=""\>
>
> \<Student SSN="" BirthDate="" LastName=""\>
>
> \<Pell\>
>
> \<FinancialAwardYear\>
>
> \<Disbursement\>
>
> \<Disbursement Number=""\>
>
> \<DisbursementAmount\>
>
> \<DisbursementDate\>
>
> \<DisbursementSequenceNumber\>
>
> \<DisbursementReleaseIndicator = "true"\>
>
> \<PaymentPeriodStartDate\> (if school ineligible)

### Routing ID

In 2003-2004, the Common School Identifier became known as the Routing
ID. The Routing ID was established in award year 2002-2003 as an
identifier assigned to Schools and Third Party Servicers that is common
across the Pell Grant and Direct Loan programs.

#### Business Rules:

1.  The Routing ID is used in the Entity ID tags on the Common Record
    and serves as a routing number for COD.

2.  The Routing ID is a randomly generated eight-character, numeric key.
    The values in the key do not signify any information about the
    numbered entity except its identity.

3.  Routing IDs are assigned to all post-secondary Schools, Third Party
    Servicers, and the COD System, although only Full Participant
    post-secondary Schools, Third Party Servicers, and the COD System
    actively use their Routing ID in 2002-2003 records and forward.

4.  The Routing ID replaces the Pell Institution Number and Direct Loan
    (E/G) School code.

> **Note:** The Pell Institution Number is still used in data requests.
> The Direct Loan (E/G) School code is still used in the 21 character
> Award ID (Loan ID) and the MPN ID.

5.  The Routing ID can be viewed on the COD web site by accessing the
    School Summary page. The Routing ID is titled the COD ID.

### Entity ID 

A valid Routing ID is required in the Source, Destination, Reporting
School, and Attended School Entity ID tags.

#### Business Rules:

1.  A valid Routing ID must be reported in the following fields:

    a.  Source Entity ID, \<Source\>

    b.  Destination Entity ID, \<Destination\>

    c.  Reporting School Entity ID, \<ReportingSchool EntityID = ""\>

    d.  Attended School Entity ID, \<AttendedSchool EntityID = ""\>

    e.  A valid Entity ID is the Routing ID for the school or Third
        Party Servicer.

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2)  The **Source Entity ID** is the physical sender of the document

    a.  The Source Entity ID must be the same Entity ID listed in the
        Document ID.

    b.  The Source Entity ID can be a school or Third Party Servicer.

    c.  Since the Source Entity sends the Common Record document to COD,
        the TG Destination Number that the Source Entity reported in the
        SAIG Transmission Header and Trailer is more than likely for the
        same entity.

3)  The **Destination Entity ID** is the destination or recipient of the
    document.

    a.  If a School sends the document to the COD System, the
        Destination Entity ID is "00000001" for COD.

    b.  If the document is sent from the COD System back to the Source,
        the Destination Entity ID is equal to the Source Entity ID on
        the original transmission.

    c.  The response file is sent to the TG Number reported in the
        Transmission Header and Trailer.

4)  The **Reporting School Entity ID** is the school that sends and
    receives data for the campuses or students it serves.

    a.  The Reporting School Entity ID must be a school and cannot be a
        Third Party Servicer.

    b.  The Reporting School Entity ID does not have to be equal to the
        Source Entity ID, but must have a relationship with the Source
        Entity ID and the TG Destination Number.

5)  The **Attended School Entity ID** is the school or campus where the
    student attends class, if that location is separately eligible.

    a.  Attended School Entity ID must be equal to the Reporting School
        Entity ID

> OR

b.  Attended School Entity ID must have an established relationship to
    the Reporting School Entity ID.

c.  If the school or campus where the student attends class is not
    separately eligible, the Reporting School Routing ID must be
    reported in the Attended School Entity ID tag.

> **Note:** Reporting and Attended relationship are still a relatively
> new concept in the Direct Loan program since the implementation of the
> COD System. Direct Loan schools are encouraged to call COD School
> Relations to verify that the Reporting/Attended relationships are
> accurately set in COD prior to transmitting any records. Additionally,
> schools that report for multiple Attended Schools are encouraged to
> contact COD School Relations to verify these relationships. If COD is
> unaware of your school's Attended/Reporting relationships, your
> records will reject.

6)  Multiple Reporting School Entity IDs and Attended School Entity IDs
    can be submitted in the same Common Record.

> **Note**: The Reporting and Attended relationships reported in the
> Common Record do not affect the funding process. Funding relationships
> are controlled separately from the reporting and attended
> relationships.

7)  The COD System checks the Source Entity ID against the COD database
    and rejects the document if the Entity ID cannot be found or is
    invalid.

8)  When the Source Entity ID cannot be found, the COD System generates
    a Response with error code 004.

9)  When the Source Entity ID is invalid, the COD System generates a
    Response with error code 001.

> Currently, if a school has separate TG numbers for Pell and Direct
> Loan and wishes to report both Pell and Direct Loan in one Common
> Record, the school must contact SAIG to complete paperwork to have one
> TG Number (schools may select which number they want to use) that
> reports both Pell and Direct Loan. This does NOT mean that every
> Common Record must have both Pell and Direct Loan information. It
> simply means the school would like the option of sending both Pell and
> Direct Loan in the same Common Record document. The school can also
> continue processing Pell Grant and Direct Loan information by sending
> separate Common Record documents for each program using separate TG
> numbers.

#### Examples:

EXAMPLE 1:

In this first example, a Common Record is submitted for Pell and Direct
Loan programs for multiple schools using one TG Number for the SAIG
Transmission Batch Header. The Reporting Entity is sending the Common
Record and is reporting awards for two other schools which are both
separately eligible.

School A:

-   Reports for two additional locations -- School B and School C.
    Therefore, this Routing ID is used in the Reporting Entity ID tag.

-   Sends the Common Record to COD. Therefore, School A Routing ID is
    used in the Source Entity ID and the Document ID.

-   TG \# = 99991. This TG \# is used in the SAIG Transmission Batch
    Header and Trailer.

-   Routing ID = 11111111

School B:

-   Has an Attended relationship with School A. This Routing ID is used
    in the Attended School Entity ID tag.

-   TG \# is not applicable because School A sends the Common Record.

-   Routing ID = 22222222

School C:

-   Has an Attended relationship with School A. This Routing ID is used
    in the Attended School Entity ID tag.

-   TG \# is not applicable because School A sends the Common Record.

-   Routing ID = 33333333

> SAIG Transmission Header Record
>
> SAIG Transmission Batch Header Record (Header Destination \# - TG
> #99991)
>
> \<CommonRecord\>
>
> \<DocumentID\>2004-08-29T09:09:09.0011111111\</DocumentID\>
>
> \<CreatedDateTime\>2004-08-29T17:20:01.00\</CreatedDateTime\>
>
> **\<Source\>**
>
> **\<School EntityID=\"11111111\"/\>**
>
> **\</Source\>**
>
> \<Destination\>
>
> \<COD EntityID=\"00000001\"/\>
>
> \</Destination\>
>
> **\<ReportingSchool EntityID=\"11111111\"\>**
>
> \<ReportedFinancialSummary\>
>
> \</ReportedFinancialSummary\>
>
> **\<AttendedSchool EntityID=\"22222222\"\>**
>
> \<Student SSN="123456789" BirthDate="1985-01-01" LastName="SMITH"\>
>
> \<Pell\>
>
> \</Pell\>
>
> \<DLSubsidized\>
>
> \</DLSubsidized\>
>
> \</Student\>
>
> \<Student SSN="987654321" BirthDate="1982-02-20" LastName="JONES"\>
>
> \<DLSubsidized\>
>
> \</DLSubsidized\>
>
> \<DLUnsubsidized\>
>
> \</DLUnsubsidized\>
>
> \</Student\>
>
> \</AttendedSchool\>
>
> **\<AttendedSchool EntityID=\"33333333\"\>**
>
> \<Student SSN="456789123" BirthDate="1985-07-15" LastName="CLARK"\>
>
> \<Pell\>
>
> \</Pell\>
>
> \<DLSubsidized\>
>
> \</DLSubsidized\>
>
> \</Student\>
>
> \<Student SSN="321654987" BirthDate="1983-05-25" LastName="JONES"\>
>
> \<DLSubsidized\>
>
> \</DLSubsidized\>
>
> \<DLUnsubsidized\>
>
> \</DLUnsubsidized\>
>
> \</Student\>
>
> \</AttendedSchool\>
>
> \</ReportingSchool\>
>
> \</CommonRecord\>
>
> SAIG Transmission Batch Trailer Record (Trailer Destination \# - TG
> #99991)
>
> SAIG Transmission Trailer Record

EXAMPLE 2:

In this second example, a Common Record is submitted for Pell and Direct
Loan programs for multiple schools using one TG Number for the SAIG
Transmission Batch Header. A Third Party Servicer is sending the records
for multiple schools.

Third Party Servicer:

-   Sends the Common Record to COD for Schools D and E. Therefore, the
    Third Party Servicer Routing ID is used in the Source Entity ID and
    the Document ID.

-   TG \# = 88888. This TG \# is used in the SAIG Transmission Batch
    Header and Trailer.

-   Routing ID = 44444444

School D:

-   Uses a Third Party Servicer to send records to COD; however, does
    its own reporting for students that attend its campus. School D
    Routing ID is used in the Reporting School Entity ID and Attended
    School Entity ID tag.

-   TG \# is not applicable because the Third Party Servicer sends the
    Common Record.

-   Routing ID = 55555555

School E:

-   Uses a Third Party Servicer to send records to COD; however, does
    its own reporting for students that attend its campus. School E
    Routing ID is used in the Reporting School Entity ID and Attended
    School Entity ID tag.

-   TG \# is not applicable because the Third Party Servicer sends the
    Common Record.

-   Routing ID = 66666666

> SAIG Transmission Header Record
>
> SAIG Transmission Batch Header Record (Header Destination \# - TG
> #88888)
>
> \<CommonRecord\>
>
> \<DocumentID\>2004-08-29T09:09:09.0044444444\</DocumentID\>
>
> \<CreatedDateTime\>2004-08-29T17:20:01.00\</CreatedDateTime\>
>
> **\<Source\>**
>
> **\<ThirdPartyServicer EntityID=\"44444444\"/\>**
>
> **\</Source\>**
>
> \<Destination\>
>
> \<COD EntityID=\"00000001\"/\>
>
> \</Destination\>
>
> **\<ReportingSchool EntityID=\"55555555\"\>**
>
> \<ReportedFinancialSummary\>
>
> \</ReportedFinancialSummary\>
>
> **\<AttendedSchool EntityID=\"55555555\"\>**
>
> \<Student SSN="123456789" BirthDate="1985-01-01" LastName="SMITH"\>
>
> \<Pell\>
>
> \</Pell\>
>
> \<DLSubsidized\>
>
> \</DLSubsidized\>
>
> \</Student\>
>
> \<Student SSN="987654321" BirthDate="1982-02-20" LastName="JONES"\>
>
> \<DLSubsidized\>
>
> \</DLSubsidized\>
>
> \<DLUnsubsidized\>
>
> \</DLUnsubsidized\>
>
> \</Student\>
>
> \</AttendedSchool\>
>
> \</ReportingSchool\>
>
> **\<ReportingSchool EntityID=\"66666666\"\>**
>
> \<ReportedFinancialSummary\>
>
> \</ReportedFinancialSummary\>
>
> **\<AttendedSchool EntityID=\"66666666\"\>**
>
> \<Student SSN="456789123" BirthDate="1985-07-15" LastName="CLARK"\>
>
> \<Pell\>
>
> \</Pell\>
>
> \<DLSubsidized\>
>
> \</DLSubsidized\>
>
> \</Student\>
>
> \<Student SSN="321654987" BirthDate="1983-05-25" LastName="JONES"\>
>
> \<DLSubsidized\>
>
> \</DLSubsidized\>
>
> \<DLUnSubsidized\>
>
> \</DLUnsubsidized\>
>
> \</Student\>
>
> \</AttendedSchool\>
>
> \</ReportingSchool\>
>
> \</CommonRecord\>
>
> SAIG Transmission Batch Trailer Record (Trailer Destination \# - TG
> #88888)
>
> SAIG Transmission Trailer Record

EXAMPLE 3:

In this third example, a Common Record is submitted for the Pell and
Direct Loan programs for multiple schools. The Reporting Entity is
sending the Common Record and is reporting awards for one other school
which is NOT separately eligible.

School F:

-   Reports for one additional location -- School G. Therefore, this
    Routing ID is used in the Reporting Entity ID tag.

-   Sends the Common Record to COD. Therefore, this Routing ID is used
    in the Source Entity ID and the Document ID.

-   TG \# = 33331. This TG \# is used in the SAIG Transmission Batch
    Header and Trailer.

-   Routing ID = 77777777

School G:

-   Has an Attended relationship with School F; however, this location
    is not separately eligible and therefore its Routing ID is NOT used
    in the Attended School Entity ID tag.

-   TG \# is not applicable because School F sends the Common Record.

-   Routing ID = 88888888

> SAIG Transmission Header Record
>
> SAIG Transmission Batch Header Record (Header Destination \# - TG
> #33331)
>
> \<CommonRecord\>
>
> \<DocumentID\>2004-08-29T09:09:09.0077777777\</DocumentID\>
>
> \<CreatedDateTime\>2004-08-29T17:20:01.00\</CreatedDateTime\>
>
> **\<Source\>**
>
> **\<School EntityID=\"77777777\"/\>**
>
> **\</Source\>**
>
> \<Destination\>
>
> \<COD EntityID=\"00000001\"/\>
>
> \</Destination\>
>
> **\<ReportingSchool EntityID=\"77777777\"\>**
>
> \<ReportedFinancialSummary\>
>
> \</ReportedFinancialSummary\>
>
> **\<AttendedSchool EntityID=\"77777777\"\>**
>
> \<Student SSN="123456789" BirthDate="1985-01-01" LastName="SMITH"\>
>
> \<Pell\>
>
> \</Pell\>
>
> \<DLSubsidized\>
>
> \</DLSubsidized\>
>
> \</Student\>
>
> \<Student SSN="987654321" BirthDate="1982-02-20" LastName="JONES"\>
>
> \<DLSubsidized\>
>
> \</DLSubsidized\>
>
> \<DLUnsubsidized\>
>
> \</DLUnsubsidized\>
>
> \</Student\>
>
> \</AttendedSchool\>
>
> \</ReportingSchool\>
>
> \</CommonRecord\>
>
> SAIG Transmission Batch Trailer Record (Trailer Destination \# - TG
> #33331)
>
> SAIG Transmission Trailer Record

### Total Count in the Reported Financial Summary Complex Element 

The COD System verifies that the Total Number of Students Tags by Award
Type and Award Year, \<TotalCount\>, reported in the Reported Financial
Summary complex element equals the total number of student tags by award
type and award year in the document.

#### Business Rules:

The COD System compares the Total Number of Students Tags by award type
and award year, \<TotalCount\>, reported against the actual total number
of student tags by award type (Pell, DL Subsidized, DL Unsubsidized, and
DL PLUS), by award year, and by Reporting School Entity ID in the
document.

1)  The COD System determines the actual total number of student tags by
    award type and award year in the Document by counting the number of
    Student Identifiers (SSN, Date of Birth and Last Name) for each
    award type (Pell, DL Subsidized, DL Unsubsidized, and DL PLUS),
    award year, and Reporting School Entity ID in the document.

> **Note:** Refer to the topic entitled "Student Identifier" for more
> information on the Student Identifier.

2)  The COD System sends a warning with error code 008 if the reported
    \<TotalCount\> and the actual number of student tags by award type
    and award year are not identical. The warning does not prevent the
    document from being processed by the COD System.

3)  The Total Number of Students reported may be a duplicated count. In
    the event that identical Student Identifiers are reported multiple
    times within a document for multiple award types or award years, the
    COD System counts them multiple times.

4)  The Total Number of Students is reported by Award Year, by Award
    Type (Pell, DL Subsidized, DL Unsubsidized, and DL PLUS), and by
    Reported School Entity ID.

#### Example:

In the following example, a Common Record is submitted for a student
\<Student SSN=\"123456789\" BirthDate=\"1972-01-01\"
LastName=\"SMITH\"\> containing one DL Subsidized and one Pell award.
Since the \<TotalCount\> is not an unduplicated count of student tags,
the student tag is counted twice in the Reported Financial Summary
block, once for each award type and award year:

\<ReportedSchool EntityID=\"00123400\"\>

\<ReportedFinancialSummary\>

\<FinancialAwardType\>DLSubsidized\</FinancialAwardType\>

\<FinancialAwardYear\>2005\</FinancialAwardYear\>

\<TotalCount\>1\</TotalCount\>

\<TotalReportedAmount\>2000\</TotalReportedAmount\>

\<TotalReportedDisbursement\>1970\</TotalReportedDisbursement\>

\</ReportedFinancialSummary\>

\<ReportedFinancialSummary\>

\<FinancialAwardType\>Pell\</FinancialAwardType\>

\<FinancialAwardYear\>2005\</FinancialAwardYear\>

\<TotalCount\>1\</TotalCount\>

\<TotalReportedAward\>3700\</TotalReportedAward\>

\<TotalReportedDisbursement\>3700\</TotalReportedDisbursement\>

\</ReportedFinancialSummary\>

### Total Award Amount Reported in the Reported Financial Summary Complex Element

The COD System verifies that the Total Award Amount reported in the
Reported Financial Summary complex element equals the actual total of
all Award Amounts contained in the document.

#### Business Rules:

1)  The COD System compares the Total Award Amount Reported,
    \<TotalReportedAward\>, against the actual total of all Award
    Amounts contained in the document.

2)  The COD System determines the actual total of all Award Amounts by
    adding the values of all the Award Amount tags in the document.

3)  The COD System sends a warning with error code 102 if the Total
    Award Amount Reported and the actual total of all Award Amounts are
    not equal. The warning does not prevent the document from being
    processed by the COD System

4)  The Total Award Amount must be reported by Award Year, by Award Type
    (Pell, DL Subsidized, DL Unsubsidized, and DL PLUS), and by Reported
    School Entity ID.

#### Example:

\<ReportedSchool EntityID=\"00123400\"\>

\<ReportedFinancialSummary\>

\<FinancialAwardType\>DLSubsidized\</FinancialAwardType\>

\<FinancialAwardYear\>2005\</FinancialAwardYear\>

\<TotalCount\>1\</TotalCount\>

\<TotalReportedAmount\>2000\</TotalReportedAmount\>

\<TotalReportedDisbursement\>1970\</TotalReportedDisbursement\>

\</ReportedFinancialSummary\>

\<ReportedFinancialSummary\>

\<FinancialAwardType\>Pell\</FinancialAwardType\>

\<FinancialAwardYear\>2005\</FinancialAwardYear\>

\<TotalCount\>1\</TotalCount\>

\<TotalReportedAward\>3700\</TotalReportedAward\>

\<TotalReportedDisbursement\>3700\</TotalReportedDisbursement\>

\</ReportedFinancialSummary\>

### Total Disbursement Amount Reported in the Reported Financial Summary Complex Element

The COD System verifies that the Total Disbursement Amount Reported in
the Reported Financial Summary complex element equals the actual total
of all Disbursement Amounts contained in the document.

#### Business Rules:

1)  The COD System compares the Total Disbursement Amount Reported,
    \<TotalReportedDisbursement\> against the actual total of all
    Disbursement Amounts contained in the document.

2)  The COD System determines the actual total of all Disbursement
    Amounts by adding the values of the Disbursement Amount (gross)
    fields, regardless of whether the Disbursement Release Indicator is
    "true" or "false," in the document.

3)  The COD System sends a warning with error code 090 if the Total
    Disbursement Amount Reported and the actual total of all
    Disbursement Amounts are not equal. The warning does not prevent the
    document from being processed by the COD System.

4)  The Total Disbursement Amount Reported must be reported by Award
    Year, by Award Type (Pell, DL Subsidized, DL Unsubsidized, and DL
    PLUS), and by Reported School Entity ID.

#### Example:

\<ReportedSchool EntityID=\"00123400\"\>

\<ReportedFinancialSummary\>

\<FinancialAwardType\>DLSubsidized\</FinancialAwardType\>

\<FinancialAwardYear\>2005\</FinancialAwardYear\>

\<TotalCount\>1\</TotalCount\>

\<TotalReportedAmount\>2000\</TotalReportedAmount\>

\<TotalReportedDisbursement\>1970\</TotalReportedDisbursement\>

\</ReportedFinancialSummary\>

\<ReportedFinancialSummary\>

\<FinancialAwardType\>Pell\</FinancialAwardType\>

\<FinancialAwardYear\>2005\</FinancialAwardYear\>

\<TotalCount\>1\</TotalCount\>

\<TotalReportedAward\>3700\</TotalReportedAward\>

\<TotalReportedDisbursement\>3700\</TotalReportedDisbursement\>

> \</ReportedFinancialSummary\>

### Student Identifier 

The COD Student Identifier is composed of the student's current Social
Security Number, current Date of Birth, and current Last Name. Current
is defined as the value stored in COD as of the date of the
transmission.

#### Business Rules:

1)  The Student Identifier is located in the Student complex element of
    the Common Record, and is reported by the school.

2)  A Student Identifier is a required data element for all submissions
    of a Common Record.

3)  A Student Identifier consists of the student tag and three
    attributes: the student's current Social Security Number, current
    Date of Birth, and current Last Name.

    a.  The Social Security Number portion of the Student Identifier
        must contain nine digits.

    b.  The Social Security Number portion of the Student Identifier
        must be within the range of 001-01-0001 to 999-99-9998.

    c.  The Social Security Number portion of the Student Identifier may
        or may not contain hyphens after the third and fifth digits.

    d.  The Date of Birth portion of the Student Identifier must be in
        the CCYY-MM-DD format.

    e.  The Date of Birth portion of the Student Identifier must be
        greater than 1905-01-01 and less than 1996-12-31.

    f.  The Last Name portion of the Student Identifier may consist of
        upper case letters A-Z, numbers 0-9, spaces, period, apostrophe
        and dash.

    g.  The Last Name portion of the Student Identifier may be blank.

```{=html}
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```
4)  All three attributes of the Student Identifier (current Social
    Security Number, current Date of Birth, and current Last Name) are
    required for processing by the COD System.

5)  The Student Identifier submitted by a school to establish the
    student on COD is matched to data from the CPS.

```{=html}
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```
a.  For Pell Grants, the SSN, Date of Birth, and first two characters of
    the Last Name are matched with the CPS data.

b.  For Subsidized and Unsubsidized Direct Loans, the SSN and Date of
    Birth are matched with the CPS data.

    **Note:** For Direct Loan PLUS Awards the student is established and
    the person (parent borrower) must be established. Parent borrowers
    are not matched against data from the CPS.

```{=html}
<!-- -->
```
6)  If a match is found on CPS, COD accepts the student and establishes
    the student identifier on COD. The student identifier must be
    submitted in subsequent transactions for that student.

> **Note:** Please refer to the Changing Student Identifier Information
> section for more information on making corrections or updates to the
> student identifier.

7)  If a match is not found on CPS, COD rejects the student and returns
    an error code of 011.

#### Example:

\<Student SSN=\"123456789\" BirthDate=\"1972-01-01\"
LastName=\"SMITH\"\>

### Changing Student Identifier Information

In order to change Student Identifier information, the school or student
must first submit a correction to the ISIR, which will result in another
transaction on the CPS. After the correction has been submitted to and
accepted by the CPS, the school must send a Common Record to the COD
System reporting the student tag with the previously reported Student
Identifier information currently stored on COD and the changed data in
the corresponding simple element (Social Security Number, Date of Birth,
or Last Name).

**Note**: Please refer to the Minimal Data Elements Required for
Processing section for more information on changing other student
demographic information.

#### Business Rules:

1.  COD stores one Student Identifier for a student; COD does not store
    separate Student Identifiers for each award.

2.  Changes to the Student Identifier data elements must be submitted in
    the Social Security Number, Date of Birth, and/or Last Name simple
    element tags and NOT in the Student tag. Changes submitted in the
    Student tag will not be recognized by the COD System.

3.  Upon receipt of a changed Social Security Number, Date of Birth, or
    Last Name simple element from the school, the COD System attempts to
    match the changed simple element against the CPS.

    a.  If an identical change is found on the CPS, the COD System
        accepts the changed simple element, updates the Student
        Identifier, and sends a Response to the school.

    b.  If an identical change is not found on the CPS, the COD System
        rejects the changed simple element, and sends a Response to the
        school with error code 012.

> **Note:** Due to the order in which COD matches student identifier
> data elements with the CPS, it is possible that COD will return error
> code 012 on SSN even when a school submitted a change on Date of Birth
> or Last Name, if the Date of Birth and/or Name has not been updated on
> the CPS. Please refer to the topic entitled "Student Identifier and
> Data Elements Matched against the CPS" for more information.

3)  Regardless of whether the changed simple element is accepted or
    rejected by the COD System, the old Student Identifier is returned
    in the Response.

4)  If the changed simple element is accepted, the school must submit
    the new Student Identifier combination in future transmissions.

5)  If the changed simple element is rejected, the old Student
    Identifier combination must be used in future transmissions.

6)  The COD System stores the Social Security Number previously
    submitted to the COD System for query purposes on the COD web site.

7)  If the Social Security Number, Date of Birth, or Last Name simple
    element is submitted with the same value that is listed in the
    attribute on the COD System, no update takes place and a warning is
    sent to the school with error code 015.

8)  If the award year submitted on the change record is lower than the
    highest award year listed for the student on the COD System, or if
    the CPS transaction number on the change record is lower than the
    highest CPS transaction number on the COD System for that award year
    and student, no update takes place and a warning is sent to the
    school with error code 116.

9)  If a combination of the current Social Security Number, current Date
    of Birth, or current Last Name simple elements are changed in the
    same submission, all changes must be matched on the CPS.

    a.  If all changes are not matched on the CPS, the COD System
        rejects all changed simple elements and the old Student
        Identifier is returned in the Response to the school.

#### Example: 

A student's last name changes from Oldhat to Newburry. Once the
correction has been submitted to the CPS, the appropriate submission to
the COD System is:

\<Student SSN=\"123456789\" BirthDate=\"1972-01-01\"
LastName=\"OLDHAT\"\>

\<Name\>

\<LastName\>NEWBURRY\</LastName\>

\</Name\>

\</Student\>

The COD Response contains the old student identifier:

\<Student SSN=\"123456789\" BirthDate=\"1972-01-01\"
LastName=\"OLDHAT\"\>

If the COD System accepts the change, subsequent transmissions by the
school must contain:

\<Student SSN=\"123456789\" BirthDate=\"1972-01-01\"
LastName=\"NEWBURRY\"\>

If the COD System rejects the change, subsequent transmissions by the
school must contain:

\<Student SSN=\"123456789\" BirthDate=\"1972-01-01\"
LastName=\"OLDHAT\"\>

### Borrower Identifier 

The Borrower Identifier is used to submit parent borrower data when
processing a PLUS Loan. The COD Borrower Identifier is composed of the
parent borrower's current Social Security Number, current Date of Birth,
and current Last Name. Current is defined as the value stored in COD as
of the date of the transmission.

#### Business Rules:

1)  The Borrower Identifier is located in the Person complex element of
    the Common Record, and is reported by the school.

2)  A Borrower Identifier is a required data element for all submissions
    for a PLUS Loan.

3)  A Borrower Identifier consists of the Borrower tag and three
    attributes: the person's current Social Security Number, current
    Date of Birth, and current Last Name.

    a.  The Social Security Number portion of the Borrower Identifier
        must contain nine digits.

    b.  The Social Security Number portion of the Borrower Identifier
        must be within the range of 001-01-0001 to 999-99-9998.

    c.  The Social Security Number portion of the Borrower Identifier
        may or may not contain hyphens after the third and fifth digits.

    d.  The Date of Birth portion of the Borrower Identifier must be in
        the CCYY-MM-DD format.

    e.  The Date of Birth portion of the Borrower Identifier must be
        greater than 1905-01-01 and less than 1996-12-31.

    f.  The Last Name portion of the Borrower Identifier may consist of
        upper case letters A-Z, numbers 0-9, spaces, period, apostrophe
        and dash.

    g.  The Last Name portion of the Borrower Identifier may be blank.

4)  The Borrower Identifier submitted by a school to establish the
    parent borrower on COD is NOT matched with data from CPS.

5)  The Borrower Identifier is changed using the same process as
    updating a Student Identifier. However, the updates to a Borrower
    Identifier are NOT matched to CPS data on file at COD.

6)  Schools cannot change the SSN of a PLUS Borrower because the PLUS
    credit check was performed using the original SSN. Instead, schools
    must originate a new PLUS loan and perform a credit check using the
    new SSN. Attempts to change the SSN of PLUS Borrower will reject
    with edit code 996.

#### Example:

\<Borrower SSN=\"123456789\" BirthDate=\"1962-01-01\"
LastName=\"SMITH\"\>

### CPS Transaction Number 

The CPS Transaction Number is a required field on the Common Record for
Pell Grant and Direct Loan (DL Subsidized, DL Unsubsidized) processing.

#### Business Rules:

1)  The CPS Transaction Number is a required field on the Common Record
    for Pell Grant and Direct Loan (DL Subsidized, DL Unsubsidized)
    Award information.

**Note:** The CPS Transaction Number is not a required field for DL PLUS
loans.

### Student Identifier and Data Elements Matched against the CPS

COD performs two matches against CPS. The first match confirms that the
Student Identifier exists on the CPS. This match does not utilize the
CPS Transaction Number submitted by the school. The second match
validates certain data elements for editing purposes. This match
utilizes the CPS Transaction Number submitted by the school.

#### Business Rules:

1)  The COD System stores one Student Identifier for a student. The COD
    System does not store separate Student Identifiers for each award.

2)  The CPS Transaction Number is stored at the Award level; the COD
    System stores a separate CPS Transaction Number for each award.

3)  The COD System performs a match against the CPS when a Common Record
    contains:

    a.  A new student with an award (See Example 1)

    b.  A change to the Student Identifier (See Example 2)

    c.  A new award with a new CPS Transaction Number (See Example 2)

    d.  An existing award with a new CPS Transaction Number (See Example
        3)

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```
4)  When a Common Record contains a **new student** with a Pell Grant
    award,

    a.  COD matches the SSN, Date of Birth, first two characters of the
        Last Name, and the CPS Transaction Number with data from CPS.

    b.  COD uses the CPS Transaction Number submitted to pull data
        elements from CPS for processing the award.

5)  When a Common Record contains a **new student** with a Subsidized or
    Unsubsidized Direct Loan award,

    a.  COD matches the SSN, Date of Birth, and the CPS Transaction
        Number with data from CPS.

    b.  COD uses the CPS Transaction Number submitted to pull data
        elements from CPS for processing the award.

6)  When a Common Record contains a **change to the Student
    Identifier**,

    a.  COD checks that [any]{.underline} CPS Transaction Number greater
        than the CPS Transaction Number used to establish the student
        exists in the data from CPS. If the CPS Transaction Number on
        the change record is lower than the highest CPS Transaction
        Number on the COD database, no update to the student identifier
        takes place and warning edit 116 is sent to the school.

**Note:** When a school sends a change to a Direct Loan award with a new
CPS Transaction Number, COD does NOT go back out to CPS and pull info on
that CPS Transaction Number.

b.  COD matches the changed SSN, Date of Birth and Last Name with data
    from CPS. For Direct Loans this match is only on the Social Security
    Number (SSN) and Date of Birth.

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```
7)  When a Common Record contains a **new award** for an existing
    student,

```{=html}
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```
a.  The Student Identifier tag must be the current Student Identifier on
    file at COD.

b.  COD uses the CPS Transaction Number submitted to pull data elements
    from CPS for processing the award.

c.  COD does NOT match the student identifier data elements with the CPS
    Transaction number submitted in the Award complex element.

```{=html}
<!-- -->
```
8)  When a Common Record contains a **new CPS Transaction Number** for
    an existing award,

```{=html}
<!-- -->
```
a.  The Student Identifier needs to be the current Student Identifier on
    file at COD.

b.  COD uses the new CPS Transaction Number submitted to pull data
    elements from CPS for processing the award.

c.  COD does NOT match the student identifier data elements with the CPS
    Transaction number submitted in the Award complex element

```{=html}
<!-- -->
```
9)  COD matches the student identifier data elements in the following
    order: SSN, Date of Birth, and Last Name.

> **Note**: It is possible that COD will return error code 012 on SSN
> even when a school submitted a change on Date of Birth or Name if the
> Name and/or Date of Birth has not been updated on the CPS.

10) When a new award is submitted with a CPS Transaction Number already
    used by a previously accepted award for the same student, a new CPS
    match is NOT performed.

11) A later CPS Transaction Number submitted by a student or another
    school does NOT affect a match performed using an earlier CPS
    Transaction Number.

> **Note:** The CPS Transaction Number is not a required field for DL
> PLUS loans.

#### Examples:

EXAMPLE #1: New student and new award

A school submits a Pell Grant for a student (SID = 3188888881982-03-04
Jones) using CPS Transaction Number 01. There is a match at COD on the
CPS data. This establishes the student on the COD Database with a
student identifier: 3138888881982-03-04Jones .

  ---------------- -- ----------- ------------ --------- --------- ---------
  **CPS**             **CPS AAF**                                  

  **SAR ID**          **SSN**     **DOB**      Last Name Pell      **EFC**
                                                         Elig?     

  318888888Jo01       318888888   1982-03-04   JONES     Y         0
  ---------------- -- ----------- ------------ --------- --------- ---------

  -----------------------------------------------------------------------
  **Current Student Identifier = 3188888881982-03-04 JONES**

  **COD SID Database**

  SID 318888888 1982-03-04 JONES
  -----------------------------------------------------------------------

+-----------------------------------------------------------------------+
| **Pell Award**                                                        |
|                                                                       |
| CPS Transaction# 01                                                   |
|                                                                       |
| \$4000                                                                |
|                                                                       |
| Accepted                                                              |
+-----------------------------------------------------------------------+

EXAMPLE #2: New award, New CPS Transaction Number and Change to student
identifier

The student gets married resulting in a Name change from Jones to
Taylor. The student also becomes a graduate student and is no longer
Pell eligible. These changes have already been reported to CPS resulting
in a CPS Transaction Number 03. The school submits a Direct Loan award
using CPS Transaction Number 03 and the current SID of
3188888881982-03-04JONES, but also submits the name change of Taylor.
The Direct Loan award is accepted as there is a match with CPS data at
COD for the SSN and Date of Birth and CPS Transaction Number 03. The
student identifier is updated to: 313888888 1982-03-04TAYLOR.

  ---------------- ------- ------------ ------------- ----------- --------- ---------
  **CPS**          **CPS                                                    
                   AAF**                                                    

  **SAR ID**               **SSN**      **DOB**       **Last      **Pell    **EFC**
                                                      Name**      Elig?**   

  318888888Jo01            318888888    1982-03-04    JONES       Y         0

  318888888Jo02            318888888    1982-03-04    JONES       Y         250

  318888888Jo03            318888888    1982-03-04    TAYLOR      N         0
  ---------------- ------- ------------ ------------- ----------- --------- ---------

  -----------------------------------------------------------------------
  **Current Student Identifier = 3188888881982-03-04TAYLOR**

  **COD Student Identifier (SID) Database**

  SID 318888888 1982-03-04 TAYLOR

  SID 318888888 1982-03-04 JONES
  -----------------------------------------------------------------------

+----------------------+-----------------------+----------------------+
| **Pell Award**       |                       | **DL Award**         |
|                      |                       |                      |
| CPS Transaction# 01  |                       | CPS Transaction# 03  |
|                      |                       |                      |
| \$4000               |                       | \$7500               |
|                      |                       |                      |
| Accepted             |                       | Accepted             |
+----------------------+-----------------------+----------------------+

EXAMPLE #3: Maintenance to CPS Transaction Number on existing award

The student EFC changes. The school submits an update to the Direct Loan
using CPS Transaction Number 04. The school submits using student
identifier: 318888888 1982-03-04 TAYLOR.

  ---------------- -- ------------ ------------- ----------- --------- ---------
  **CPS**             **CPS AAF**                                      

  **SAR ID**          **SSN**      **DOB**       **Last      **Pell    **EFC**
                                                 Name**      Elig?**   

  318888888Jo01       318888888    1982-03-04    JONES       Y         0

  318888888Jo02       318888888    1982-03-04    JONES       Y         250

  318888888Jo03       318888888    1982-03-04    TAYLOR      N         0

  318888888Jo04       318888888    1982-03-04    TAYLOR      N         500
  ---------------- -- ------------ ------------- ----------- --------- ---------

  -----------------------------------------------------------------------
  **Current Student Identifier = 3188888881982-03-04TAYLOR**

  **COD Student Identifier (SID) Database**

  SID 318888888 1982-03-04 TAYLOR

  SID 318888888 1982-03-04 JONES
  -----------------------------------------------------------------------

+----------------------+------------------------+----------------------+
| **Pell Award**       |                        | **DL Award**         |
|                      |                        |                      |
| CPS Transaction# 01  |                        | CPS Transaction #03  |
|                      |                        |                      |
| \$4000               |                        | \$7500               |
|                      |                        |                      |
| Accepted             |                        | Accepted             |
|                      |                        |                      |
|                      |                        | CPS Transaction# 04  |
|                      |                        |                      |
|                      |                        | \$7250               |
|                      |                        |                      |
|                      |                        | Accepted             |
+----------------------+------------------------+----------------------+

### Data Elements Pulled from the CPS

The COD System pulls certain data elements from information provided by
the CPS for editing purposes only.

#### Business Rules:

1)  The COD System uses the CPS Transaction Number reported in the Award
    complex element to pull certain data elements from information
    provided by the CPS.

2)  For each Pell Grant award received, the COD System always pulls the
    following data elements from the CPS:

    a.  Expected Family Contribution (EFC)

    b.  Secondary EFC (only in the case where the school has indicated
        its intent to pay from the secondary EFC via the
        \<SecondaryEFCCode\> field on the Common Record)

    c.  Verification Selection

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3)  The COD System determines if certain data elements are transmitted
    in the Common Record or already exist for the student and award year
    on the COD database. If neither is true, the COD System will 'pull'
    these data elements from information provided by the CPS.

    a.  For each Pell Grant award received, the following data elements
        are pulled from the CPS information when absent on both the
        Common Record submission and the COD database:

        i.  Address (Only if ALL fields are absent: Address, City,
            State, Zip/Postal Code, Country)

        ii. First Name

        iii. Loan Default/Grant Overpayment for student

        iv. Citizenship status

            b.  For each Subsidized and Unsubsidized Direct Loan award
                received, the following data elements are pulled from
                the CPS information when absent on both the Common
                Record submission and the COD database:

                i.  Address (Only if ALL fields are absent: Address,
                    City, State, Zip/Postal Code, Country)

                ii. First Name

                iii. Loan Default/Grant Overpayment for student

                iv. Citizenship status

> **Note:** Citizenship status cannot be pulled from the CPS for PLUS
> loans and, therefore, is required on the Common Record for PLUS loans.

v.  Dependency Status

### Note Message Field 

In the 2003-2004 award year, the School Use Only field was renamed the
Note Message field.

A Note Message field, \<NoteMessage\>, is included on the Common Record
in the Person, Award, and Disbursement complex elements. This field can
be used by the school for any purpose and is ignored during COD
processing.

#### Business Rules:

1)  Regardless of whether the school opts for a Full or Standard
    Response, the Note Message field is returned in the Response complex
    element if the school submits the field in the Common Record.

2)  The Note Message field is returned in all COD system-generated
    Response Documents if the field is populated on the COD database.

3)  The Note Message field can be viewed and modified on the COD web
    site for award and disbursement records.

4)  No field level compression is allowed in this field.

#### Example: 

EXAMPLE #1:

The school uses a unique identifier for the student in their system. The
school uses the \<NoteMessage\> field in the Student complex element to
record this unique identifier.

\<Student SSN=\"123456789\" BirthDate=\"1972-01-01\"
LastName=\"SMITH\"\>

\<NoteMessage\>888888\</NoteMessage\>

\</Student\>

The COD Response complex element contains the \<NoteMessage\> field with
the content submitted in the Common Record:

\<Student SSN=\"123456789\" BirthDate=\"1972-01-01\"
LastName=\"SMITH\"\>

\<NoteMessage\>888888\</NoteMessage\>

\</Student\>

### Removal of Invalid Phone Number Edit

For award year 2003-2004 and forward, COD does not reject records based
on invalid phone number values.

#### Business Rules:

1)  The COD System continues to edit Phone Numbers for valid values.

2)  If the Phone Number tag contains a valid value, the COD System
    stores the value submitted.

3)  If the Phone Number tag contains an invalid value, the COD System
    stores nil=true, rather than the value submitted.

4)  If the Phone Number tag contains an invalid value, the COD System
    does not return an error code or the tag in the Response.

    a.  If the school opts to receive a Full Response, the Phone Number
        tag contains nil=true.

### Updating Phone Numbers

The COD System stores a maximum of three phone numbers for each person.

#### Business Rules:

1)  The Common Record has a maximum occurrence of three phone number
    tags per person.

    a.  The COD System stores the first occurrence of phone number as
        Home Phone.

    b.  The COD System stores the second occurrence of phone number as
        Alternate Phone 1.

    c.  The COD System stores the third occurrence of phone number as
        Alternate Phone 2.

2)  If the Common Record contains only one instance of phone number, the
    COD System updates the Home Phone number.

3)  In order to update the Alternate Phone 1 or Alternate Phone 2, the
    school must submit all occurrences of the phone number tag.

[]{.mark}

## Direct Loan Award and Disbursement Process 

### Utilizing Loan Key for Subsidized and Unsubsidized Direct Loans

The Loan Key is a shortcut to avoid multiple submissions of tags where
data is consistent across loans for a single borrower.

#### Business Rules:

1)  There are two reference tags in the Common Record identified as Loan
    Key:

    a.  The first tag is an attribute for DL Loan Information -
        \<DLLoanInformation LoanKey="1"\>.

    b.  The second tag is a simple element - \<LoanKey\>.

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2)  Both of these reference tags are required when submitting Direct
    Loan Award information.

3)  These two reference tags link two sections of loan information
    together expediting the reporting of similar data across Subsidized
    and Unsubsidized loans for a single borrower.

4)  A Loan Key number is referenced once but can be used by multiple
    Subsidized and Unsubsidized loans within the same submission. See
    EXAMPLE #1.

> **Note:** A PLUS loan within the same submission must have a unique
> Loan Key number as some of the shared data elements in DL Loan
> Information always have different values for PLUS. For example, the
> Origination Fee for PLUS loans = 4% and for Subsidized and
> Unsubsidized loans =3%.

5)  It is permissible to send a unique Loan Key for each Subsidized and
    Unsubsidized loan. See EXAMPLE #2.

6)  A Loan Key references the following data elements shared by
    Subsidized and Unsubsidized loans:

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a.  Origination Fee Percent, \<OriginationFeePercent\>

b.  Interest Rebate Percent, \<InterestRebatePercent\>

c.  Promissory Note Print Code, \<PromissoryNotePrintCode\>

d.  Disclosure Statement Print Code, \<DisclosureStatementPrintCode\>

e.  Student Level Code, \<StudentLevelCode\>

f.  Financial Award Begin Date, \<FinancialAwardBeginDate\>

g.  Financial Award End Date, \<FinancialAwardEndDate\>

h.  Academic Year Begin Date, \<AcademicYearBeginDate\>

i.  Academic Year End Date, \<AcademicYearEndDate\>

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7)  A Loan Key number may only be referenced within that Common Record.
    The Direct Loan Information Loan Key number is not stored on the COD
    System and, therefore, the Loan Key number cannot be used in a
    subsequent Common Record to reference data submitted in the DL Loan
    Information block of a prior Common Record.

#### Examples: 

EXAMPLE #1:

In this example, there is one Loan Key. The Loan Key = "1"can be used
for a Subsidized and an Unsubsidized loan. If this student submission
also included a PLUS loan, this same Loan Key = "1"could not be used for
a PLUS loan. The PLUS loan must have a unique Loan Key such as Loan Key
= "2."

**Note:** This reference structure allows for more efficient
transmission of loan information. Loan information that could be
reported for multiple loans is "pulled up" to allow for a repeatable
complex element.

Below is the content of DL Loan Information and of the DL Subsidized and
DL Unsubsidized complex elements:

\<[DLLoanInformation LoanKey=\"1\"\>]{.mark}

\<OriginationFeePercent\>3\</OriginationFeePercent\>

\<InterestRebatePercent\>1.5\</InterestRebatePercent\>

\<PromissoryNotePrintCode\>S\</PromissoryNotePrintCode\>

\<DisclosureStatementPrintCode\>Y\</DisclosureStatementPrintCode\>

\<StudentLevelCode\>1\</StudentLevelCode\>

\<FinancialAwardBeginDate\>2004-09-01\</FinancialAwardBeginDate\>

\<FinancialAwardEndDate\>2005-05-15\</FinancialAwardEndDate\>

\<AcademicYearBeginDate\>2004-09-01\</AcademicYearBeginDate\>

\<AcademicYearEndDate\>2005-05-15\</AcadmicYearEndDate\>

\</DLLoanInformation\>

\<DLSubsidized\>

> [\<LoanKey\>1\</LoanKey\>]{.mark}
>
> \<FinancialAwardYear\>2005\</FinancialAwardYear\>

\<CPSTransactionNumber\>4\</CPSTransactionNumber\>

\<FinancialAwardAmount\>2625\</FinancialAwardAmount\>

\<FinancialAwardNumber\>001\<FinancialAwardNumber\>

\<FinancialAwardID\>123456789S03G12345001\</FinancialAwardID\>

\<FinancialAwardCreateDate\>2004-07-01\</FinancialAwardCreateDate\>

\</DLSubsidized\>

\<DLUnsubsidized\>

> [\<LoanKey\>1\</LoanKey\>]{.mark}
>
> \<FinancialAwardYear\>2004\</FinancialAwardYear\>

\<CPSTransactionNumber\>4\</CPSTransactionNumber\>

\<FinancialAwardAmount\>1000\</FinancialAwardAmount\>

\<FinancialAwardNumber\>001\<FinancialAwardNumber\>

\<FinancialAwardID\>123456789U03G12345001\</FinancialAwardID\>

\<FinancialAwardCreateDate\>2004-07-01\</FinancialAwardCreateDate\>

\</DLUnsubsidized\>

In this example, all of the Loan Key content equal one. Therefore, the
COD System knows the information in DLLoanInformation can be used for
both the DLSubsidized and DLUnsubsidized.

EXAMPLE #2:

In this example, there are two Loan Keys. The Loan Key = "1"is used for
the Subsidized loan and the Loan Key = "2" is used for the Unsubsidized
loan. If this student submission also included a PLUS loan, the PLUS
loan requires a unique Loan Key which could be Loan Key = "3."

Below is the content of DLLoanInformation for a student receiving a
Subsidized and an Unsubsidized loan where a unique Loan Key is used for
each loan.

**Note:** Submitting DLLoanInformation in this manner does NOT take
advantage of the short cut described in the previous Example #1 for
transmission of loan information. In this example, the same Loan
information is reported multiple times within the same submission.

Below is the content of DLLoanInformation for a student receiving a
Subsidized and an Unsubsidized loan where a unique Loan Key is used for
each loan.

\<[DLLoanInformation LoanKey=\"1\"\>]{.mark}

\<OriginationFeePercent\>3\</OriginationFeePercent\>

\<InterestRebatePercent\>1.5\</InterestRebatePercent\>

\<PromissoryNotePrintCode\>S\</PromissoryNotePrintCode\>

\<DisclosureStatementPrintCode\>Y\</DisclosureStatementPrintCode\>

\<StudentLevelCode\>1\</StudentLevelCode\>

\<FinancialAwardBeginDate\>2004-09-01\</FinancialAwardBeginDate\>

\<FinancialAwardEndDate\>2005-05-15\</FinancialAwardEndDate\>

\<AcademicYearBeginDate\>2004-09-01\</AcademicYearBeginDate\>

\<AcademicYearEndDate\>2005-05-15\</AcademicYearEndDate\>

\</DLLoanInformation\>

\<[DLLoanInformation LoanKey=\"2\"\>]{.mark}

\<OriginationFeePercent\>3\</OriginationFeePercent\>

\<InterestRebatePercent\>1.5\</InterestRebatePercent\>

\<PromissoryNotePrintCode\>S\</PromissoryNotePrintCode\>

\<DisclosureStatementPrintCode\>Y\</DisclosureStatementPrintCode\>

\<StudentLevelCode\>1\</StudentLevelCode\>

\<FinancialAwardBeginDate\>2004-09-01\</FinancialAwardBeginDate\>

\<FinancialAwardEndDate\>2005-05-15\</FinancialAwardEndDate\>

\<AcadmicYearBeginDate\>2004-09-01\</AcademicYearBeginDate\>

\<AcademicYearEndDate\>2005-05-15\</AcademicYearEndDate\>

\</DLLoanInformation\>

\<DLSubsidized\>

[\<LoanKey\>1\</LoanKey\>]{.mark}

\<FinancialAwardYear\>2005\</FinancialAwardYear\>

\<CPSTransactionNumber\>4\</CPSTransactionNumber\>

\<FinancialAwardAmount\>2625\</FinancialAwardAmount\>

\<FinancialAwardNumber\>001\<FinancialAwardNumber\>

\<FinancialAwardID\>123456789S03G12345001\</FinancialAwardID\>

\<FinancialAwardCreateDate\>2004-07-01\</FinancialAwardCreateDate\>

\</DLSubsidized\>

\<DLUnsubsidized\>

[\<LoanKey\>2\</LoanKey\>]{.mark}

\<FinancialAwardYear\>2005\</FinancialAwardYear\>

\<CPSTransactionNumber\>4\</CPSTransactionNumber\>

\<FinancialAwardAmount\>1000\</FinancialAwardAmount\>

\<FinancialAwardNumber\>001\<FinancialAwardNumber\>

\<FinancialAwardID\>123456789U03G12345001\</FinancialAwardID\>

\<FinancialAwardCreateDate\>2004-07-01\</FinancialAwardCreateDate\>

\</DLUnsubsidized\>

In this example, the DLSubsidized and DLUnsubsidized have unique Loan
Key content. Therefore, the DLLoanInformation cannot by "pulled up" and
the DLLoanInformation complex element is submitted twice with
information for each loan.

### Disbursement Sequence Number Required on all Disbursements 

A Disbursement Sequence Number must be reported for all disbursements.
This is an indicator of a single transaction associated with a specific
disbursement number.

#### Business Rules:

1.  The Disbursement Sequence Number determines the order in which the
    transaction must be processed for a given Disbursement Number.

2.  The Disbursement Sequence Number must be reported in an incremental,
    ascending order.

3.  The Disbursement Sequence Number valid values range from 01-99.

    a.  Disbursement Sequence Numbers 01-65 are reported by schools.

    b.  Disbursement Sequence Numbers 66-90 are reserved for COD
        system-generated adjustments to disbursements and COD web
        generated disbursements.

    c.  Disbursement Sequence Numbers 99-91 are reserved for Direct Loan
        Payment to Servicer transactions (in descending order).

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4)  The Disbursement Sequence Number must be reported as "01" when the
    Disbursement Release Indicator is set to "false".

5)  Duplicate Disbursement Sequence Numbers for the same Disbursement
    Number when the Disbursement Release Indicator is set to "true" are
    considered duplicate disbursement transactions.

6)  When resubmitting a disbursement transaction that was rejected, the
    resubmission must use the same Disbursement Sequence Number that was
    rejected.

7)  The \<DisbursementSequenceNumber\> tag is returned in the
    disbursement response complex element in all Full or Standard Common
    Record Responses.

8)  The \<PreviousSequenceNumber\> tag is returned in all Common Record
    disbursement response complex elements, including COD
    system-generated "ND", "PS", and "WB" responses, to indicate the
    previous accepted Disbursement Sequence Number on the COD System for
    this Disbursement Number.

### Disbursement Release Indicator

The Disbursement Release Indicator, formerly the Payment Trigger tag, is
used to identify disbursements that are used to substantiate cash that
has been drawn down or may lead to a change in the Current Funding Level
(CFL).

#### Business Rules:

1.  Disbursement information is submitted to the COD System with a
    Disbursement Release Indicator equal to "true" or "false."

    a.  Disbursements with a Disbursement Release Indicator set to
        "false" do NOT change the CFL. False indicates anticipated
        disbursement information.

    b.  Disbursements with a Disbursement Release Indicator set to
        "true" may change the CFL. True indicates actual disbursement
        information.

    c.  If the Disbursement Release Indicator is omitted from the Common
        Record, the COD System sets it to "false."

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2)  Depending on the funding method employed by the school, the COD
    System may accept Disbursement information with Disbursement Release
    Indicator set to "true" in advance of, on, or after the disbursement
    date.

> **Note:** Refer to the section titled Submitting Direct Loan
> Disbursement Information and Disbursement Release Indicator for more
> information.

3)  If the Disbursement Release Indicator is set to "true," the
    disbursement is processed only if the required tags in the
    Disbursement complex element are complete.

> **Note:** For information on the required tags in the Disbursement
> complex element, refer to the topic entitled "Minimum Data Elements
> Required for Document Processing".

4)  The Disbursement Release Indicator cannot be changed from "true" to
    "false" within and including seven (7) calendar days before the
    disbursement date or any time after the disbursement date.

5)  Disbursement information with a Disbursement Release Indicator set
    to "true" will not change the CFL until seven (7) calendar days
    before the disbursement date.

6)  To make an adjustment to an accepted and posted actual disbursement,
    the Disbursement Release Indicator must be set to "true".

> **Note:** Refer to topic entitled "Updating and Adjusting Direct Loan
> Disbursement Amounts and Dates" for more information.

7)  The Disbursement Release Indicator can be updated and disbursements
    can be generated, updated and adjusted on the COD web site.

### Establishing an Initial Direct Loan Award

**2004-2005 Modification**: Beginning with award year 2004-2005 and
forward, disbursement information is required when creating all initial
Direct Loan awards (Subsidized, Unsubsidized, and PLUS) on the web or by
Common Record submission to the COD System. Disbursement information is
required on initial Direct Loan awards in order to produce accurate
Disclosure Statements and to calculate the repayment period for PLUS
borrowers.

#### Business Rules:

1.  The COD System requires submission of all disbursement information
    when establishing an award via the Common Record or the COD web
    site. Required disbursement information includes:

    a.  All anticipated disbursements (Disbursement Release Indicator =
        "false")

> OR

b.  All actual disbursements (Disbursement Release Indicator = "true")

> OR

c.  A combination of actual disbursements (Disbursement Release
    Indicator = "true") and anticipated disbursements (Disbursement
    Release Indicator = "false")

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2.  The following disbursement level data elements are required for
    establishing a Direct Loan award:

    a.  Disbursement Date

    b.  Disbursement Number

    c.  Disbursement Sequence Number

    d.  Disbursement Amount

    e.  Disbursement Fee Amount

    f.  Interest Rebate Amount

    g.  Disbursement Net Amount

    h.  Disbursement Release Indicator

3.  Schools can not submit a single disbursement unless the school is
    eligible to submit single disbursements in the amount of the award.

4.  The COD System will compare the sum of the disbursements
    (anticipated and/or actual) to the Award Amount.

    a.  If the sum of the disbursements does not equal the Award Amount,
        the award will reject with error code 117.

> **Note**: When submitting a disbursement record for an established
> award, edit 067 will be returned if the sum of the disbursements is
> greater than the Award Amount.

5.  The entire award will reject with error code 117 if any
    disbursements (anticipated or actual) reject, or if all disbursement
    information is not included in the origination.

6.  A person will not be established on the COD System if an award
    rejects that contains a new student identifier or a change to a
    student identifier.

7.  The award will not be linked to an MPN if the award rejects when
    establishing an initial Direct Loan award.

> **Note**: For more information about MPN linking, please refer to the
> "Linking an MPN to a Direct Loan Subsidized/Unsubsidized award
> section.

8.  Edit 117 will not be performed on Direct Loan maintenance records.

### Submitting Direct Loan Anticipated Disbursement Information

A Direct Loan Anticipated Disbursement Record can be submitted to the
COD System to originate a loan and to determine the MPN Status.
Beginning in 2004-2005, anticipated disbursement information is required
when originating all Direct Loan awards. When disbursement information
is sent as part of the Anticipated Disbursement Record, disbursement
edits are performed, the COD System can generate Disclosure Statements,
when appropriate, and anticipated disbursements are reflected on the
Pending Disbursement List report.

**Note:** For more information, please refer to the topic entitled
"Generating Disclosure Statements".

#### Business Rules:

1)  An Anticipated Disbursement Record including Disbursement
    information with a Disbursement Release Indicator set to "false"
    functions like an Origination Record indicating estimated
    disbursements.

2)  For the 2004-2005 award year and forward, all anticipated
    disbursements are required when establishing a Direct Loan award.
    The sum of the anticipated disbursements contained in the
    Anticipated Disbursement Record must equal the Award Amount.

3)  The Response from an Anticipated Disbursement Record for a
    Subsidized or an Unsubsidized loan provides the MPN Status and MPN
    Indicator.

4)  An Anticipated Disbursement Record is processed by the COD System
    and serves as an early detection for any edit issues, which may
    cause the record to reject at the time of disbursement. For example,
    the student identifier match with the CPS is performed on an
    Anticipated Disbursement Record as well as edits on disbursements if
    submitted.

5)  Including disbursement information with a Disbursement Release
    Indicator set to "false" as part of the Anticipated Disbursement
    Record allows for the timely generation of Disclosure Statements and
    the calculation of the repayment period for PLUS borrowers.

> **Note:** If an Anticipated Disbursement Record with disbursement
> information is not submitted to the COD System, the Pending
> Disbursement List report will not reflect the estimated disbursements.
> In this case, the school's system needs the ability to query or
> identify when a loan award needs an actual disbursement submitted with
> a Disbursement Release Indicator set to "true."

### Generating Disclosure Statements

Disclosure Statements are generated for Subsidized/Unsubsidized loans
and PLUS loans.

#### Business Rules:

1)  Disclosure Statements are generated for all loan types (Subsidized,
    Unsubsidized and PLUS loans) for award year 2003-2004 and forward.

2)  Disclosure Statement Print Code is a data element on the Common
    Record indicating whether the school or COD prints the Disclosure
    Statement.

3)  The valid values for the Disclosure Statement Print Code are:

    a.  Y = COD prints and sends to borrower

    b.  R = COD reprint

    c.  S = School Prints and Sends to Borrower

4)  The COD System does NOT print a Disclosure Statement when the
    Disclosure Statement Print Code on the Common Record has a value of
    "S" (School prints and sends to borrower).

> **Note:** Refer to the matrix below labeled *Printing Disclosure
> Statements based on School Options and Disclosure Print Code.*

5.  If an award does not contain the Disclosure Statement Print Code,
    the COD System defaults to the option on the school profile when
    processing the award.

6.  Disclosure Statements printed by a school must be printed on the
    approved Disclosure Statement form.

> a\. When available, school may contact COD School Relations for the
> Disclosure Statement form.

a.  When printing the Disclosure Statement, it is recommended to use
    Courier, 10 point, 12 pitch font.

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7)  The party (school or COD) who is responsible for printing and
    mailing the Disclosure Statement is also responsible for printing
    and mailing the Plain Language Disclosure Statement, when the
    Disclosure Statement is for a subsequent loan under an MPN.

8)  Disclosure Statements must be provided to the Student borrower (for
    Subsidized/Unsubsidized) or Parent borrower (for PLUS) before or at
    the time of the first disbursement.

9)  The COD System does NOT print a Disclosure Statement for a PLUS
    award until the award has an approved credit decision.

10) For Subsidized and Unsubsidized loans, the COD System generates a
    Disclosure Statement 30 calendar days before the first disbursement
    date whether the Disbursement Release Indicator is "false" or
    "true."

11) For PLUS loans, the COD System generates a Disclosure Statement 30
    calendar days before the first disbursement date whether the
    Disbursement Release Indicator is "false" or "true," if there is an
    approved credit decision.

12) If the disbursement information is submitted to the COD System less
    than 30 calendar days before the first disbursement date, the
    Disclosure Statement is printed immediately, unless the School
    indicated that it provided the Disclosure Statement.

13) The COD System prints and mails a Disclosure Statement for a PLUS
    award upon receipt of an approved credit decision if the 30-day
    criterion has passed, unless the Disclosure Statement Print Code on
    the award or the school's print profile indicates that the school
    provides the Disclosure Statement.

> **Note:** In order for the COD System to generate a Disclosure
> Statement, disbursement information must be submitted and accepted by
> the COD System. If you wait and submit disbursement information seven
> (7) calendar days prior to the disbursement date, the Disclosure
> Statement prints seven (7) calendar days prior to the disbursement
> date.

14) The COD System prints a Disclosure Statement only once for each
    borrower unless the school requests a reprint.

15) The COD System reprints and resends the Disclosure Statement when
    the Disclosure Statement Print Code = 'R' (COD reprint).

16) The COD System does NOT automatically reprint Disclosure Statements
    when changes to the Award Amount, Disbursement Dates, or
    Disbursement Amounts are received.

17) When a Disclosure Statement is reprinted, the data printed on the
    statement is the current data in the COD System and may not match
    the original disclosure statement.

18) When a request is received to reprint the Disclosure Statement for a
    subsequent award under an MPN, the school or COD System, depending
    on who has responsibility for printing the Disclosure Statement,
    reprints the Plain Language Disclosure.

19) The COD System prints and mails the Disclosure Statement upon
    receipt of an actual disbursement (Disbursement Release Indicator =
    true), unless the award or the schools print profile indicates that
    the school provided the Disclosure Statement.

20) For the 2002-2003 and 2003-2004 award years, when a Disclosure
    Statement for a **Subsidized/Unsubsidized award** does not include
    all anticipated disbursements (Disbursement Release Indicator =
    false) and the amounts listed under the Net Disbursement Amount does
    not equal the Net Loan Amount, the COD System will print a standard
    statement in Section 9 that reads:

> **"Your school will inform you of the remaining disbursement(s) of
> your loan**."

21) For the 2002-2003 and 2003-2004 award years, when a Disclosure
    Statement for a **PLUS award** does not include all anticipated
    disbursements (Disbursement Release Indicator = false) and the
    amounts listed under the Net Disbursement Amount does not equal the
    Net Loan Amount, the COD System prints a standard statement in
    Section 12 of the Disclosure Statement that reads:

> **"The school will inform you of the remaining disbursement(s) of your
> loan."**

22) For the 2004-2005 award year and forward, the COD system requires
    Full Participants to provide all disbursement information prior to
    disbursement.

> **Note**: For the 2002-2003 and 2003-2004 award years, the COD System
> does NOT require Full Participants to provide disbursement information
> prior to submitting an actual disbursement. If a Full Participant
> sends in an Award without disbursement information and COD does not
> have an indication that the school has printed/provided or will
> print/provide the disclosure statement, warning edit (110) is sent on
> the Award Response to the school. Warning edit 110 is not applicable
> for award year 2004-2005 and forward. Warning edit 110 reads:
>
> **"School must print/provide the disclosure statement unless it sends
> disbursement data to COD at least 5 days before the first disbursement
> date."**

23) For the 2002-2003 and 2003-2004 award years, warning edit 110 is
    returned to the school under the following conditions:

    a.  A Direct Loan Award is submitted without anticipated
        disbursement data (DisbursementReleaseIndicator= False) AND

    b.  The school has sent the Disclosure Statement Print Indicator = Y
        (COD Prints) OR

    c.  The Disclosure Statement Print Code is omitted or nil AND the
        School Profile Option = COD prints

> **Note**: Warning edit 110 is not applicable for award year 2004-2005
> and forward.

24) If a Full Participant does not send actual disbursements
    (Disbursement Release Indicator= True) to COD at least 5 days before
    the first disbursement date and COD does not have an indication that
    the school has printed/provided the disclosure statement, a
    **warning edit (111)** is sent on the Disbursement Response to the
    school. Warning edit 111 reads:

> **"First Actual Disbursement was submitted less than 5 days before the
> first disbursement date without an indication that the school
> printed/provided a disclosure statement."**

25) Warning edit 111 is returned to the school under the following
    conditions:

```{=html}
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```
a.  First Actual Disbursement Indicator = Y and Disbursement Release
    Indicator = True AND

b.  COD does not have anticipated disbursement data (Disbursement
    Release Indicator =False) on file for this award (2002-2003 and
    2003-2004 awards only) and therefore the Disclosure Statement has
    not been printed AND

c.  The disbursement is not sent at least 5 days before the first
    disbursement date (date associated with disbursement with 1st
    disbursement Indicator) AND

d.  The Disclosure Statement Print Code is set to Y (COD Prints) OR

e.  The Disclosure Statement Print Code is set to nil or omitted and the
    School Profile is set to COD Prints

#### 

#### Example: 

#### Printing Disclosure Statements based on School Options and Disclosure Statement Print Code 

+----------------+------------------------------+----------------------+
| **School       | **Full Participant**         | **COD System         |
| Option set     |                              | Prints**             |
| within COD     | **Disclosure Statement Print |                      |
| System**       | Code**                       |                      |
+----------------+------------------------------+----------------------+
| School prints  | Null or No tag               | NO                   |
+----------------+------------------------------+----------------------+
| School prints  | S (School prints)            | NO                   |
+----------------+------------------------------+----------------------+
| School prints  | Y (COD prints and sends to   | YES                  |
|                | borrower)                    |                      |
|                |                              |                      |
|                | R (COD reprint)              |                      |
+----------------+------------------------------+----------------------+
| COD prints     | Null or no tag               | YES                  |
+----------------+------------------------------+----------------------+
| COD prints     | S (School prints)            | NO                   |
+----------------+------------------------------+----------------------+
| COD prints     | Y (COD prints and sends to   | YES                  |
|                | borrower)                    |                      |
|                |                              |                      |
|                | R (COD reprint)              |                      |
+----------------+------------------------------+----------------------+

#### 

#### When COD Prints a Disclosure Statement based on receipt of Disbursement information

  ---------------- ------------- ---------------- ----------- ------------------
  **Disb. Info     **Date Disb.  **Disbursement   **Disb.     **Disclosure
  Submitted**      Info          Release          Date**      Statement
                   Submitted**   Indicator**                  Generated by COD**

  **More than 30   08-01-03      False            09-10-03    **08-12-03**
  calendar days                                               
  prior to first                                              
  disbursement**                                              

  **30 calendar    08-12-03      False            09-10-03    **08-12-03**
  days prior to                                               
  first                                                       
  disbursement**                                              

  **7 calendar     09-03-03      True or False    09-10-03    **09-03-03**
  days prior to                                               
  first                                                       
  disbursement**                                              

  **On Disb.       09-10-03      True or False    09-10-03    **09-10-03**
  Date**                                                      
  ---------------- ------------- ---------------- ----------- ------------------

### 

### Performing Annual Loan Limit Edits

The COD System performs annual Loan Limit edits using Academic Year,
Student Grade Level and, when appropriate, the Additional Unsubsidized
Loan for Health Profession Programs Indicator.

#### Business Rules:

1.  To perform annual loan limit edits, the COD System selects
    Subsidized and Unsubsidized loans with the following criteria to
    pool with the incoming loan:

```{=html}
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```
a.  Same borrower as the incoming disbursement AND

b.  Same grade level as the incoming disbursement AND

c.  One of the following:

    i.  Same academic year start and end date as the incoming
        disbursement OR

    ii. Academic year that contains the academic year of the incoming
        disbursement

    iii. Academic year that is contained wholly within the academic year
         of the incoming disbursement

         2.  The COD System does not perform loan limit edits on
             disbursements for loans that have partially overlapping
             academic years.

         3.  For disbursements with overlapping academic years, the COD
             System transmits a reject error code of 039 (Incorrect
             Award Amount) to the school as part of the Response
             Document. This error code indicates that another
             disbursement with an overlapping academic year exists and
             that the school is responsible for ensuring the student has
             not exceeded his / her annual loan limits.

```{=html}
<!-- -->
```
4)  The COD System performs loan limit edits on Subsidized and
    Unsubsidized loans to ensure that a student does not exceed annual
    maximum loan limits based on Student Grade Level and, if
    appropriate, Eligibility for Additional Unsubsidized Loan for Health
    Profession Programs.

5)  The Additional Unsubsidized Eligibility for Health Profession
    Programs tag \<HPPAIndicator\> should be submitted to the COD System
    when a school awards an additional unsubsidized loan to a student in
    a Health Professions Program.

6)  The Dependency Status and Additional Unsubsidized Eligibility for a
    Dependent Student are factors not used when performing the loan
    limit edits at COD.

> **Note:** These factors must still be considered by a school when
> determining a student's loan limit.

### Submitting Direct Loan Disbursement Information and Disbursement Release Indicator

The COD System can accept Direct Loan Disbursement information in
advance, on or after the Disbursement Date.

#### Business Rules:

1.  The COD System accepts disbursement information in advance, on or
    after the disbursement date.

2.  Disbursement Date is the date the money was credited to the
    student's account or paid to the student (or borrower, if PLUS loan)
    directly for a specific disbursement number. Disbursement Date is
    NOT the date of the adjustment transaction. The Disbursement Date is
    submitted on a Disbursement transaction as well as on an Adjusted
    Disbursement Amount transaction.

> **Note:** For 2002-2003 award years and forward, Full Participants
> must submit the Disbursement Date, NOT the transaction date for
> adjusted disbursement amounts.

3.  Disbursement information is submitted to the COD System with a
    Disbursement Release Indicator equal to "true" or "false."

```{=html}
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```
a.  A Disbursement Release Indicator = "false" (submit anticipated
    disbursement information). False indicates anticipated disbursement
    information and functions like an origination record.

b.  A Disbursement Release Indicator = "true." True indicates actual
    disbursement information.

> c\. If the Disbursement Release Indicator is omitted from the Common
> Record, the COD System sets it to "false."

4.  A Disbursement Release Indicator = "false" can be updated to "true"
    on a Direct Loan disbursement.

5.  A Disbursement Release Indicator = "true" cannot be updated to
    "false" on a Direct Loan disbursement.

> **Note:** In this case, a school needs to adjust the disbursement to
> \$0. Details on adjusting disbursements to \$0 are provided in the
> Updating and Adjusting Direct Loan Disbursement Amounts and Dates
> section.

6.  Disbursement Release Indicator can be updated and disbursements can
    be generated, updated and adjusted on the COD web site.

7.  The required data elements for an Anticipated Disbursement Direct
    Loan disbursement are:

    a.  Disbursement Number, \<Disbursement Number= \" \"\>

    b.  Disbursement Amount (gross), \<DisbursementAmount\> (gross
        amount)

    c.  Disbursement Date, \<DisbursementDate\>

    d.  Disbursement Release Indicator set to "false,"
        \<DisbursementReleaseIndicator = "false"\>

    e.  Disbursement Sequence Number, \<DisbursementSequenceNumber\>

    f.  Disbursement Net Amount, \<DisbursementNetAmount\>

    g.  Disbursement Fee Amount, \<DisbursementFeeAmount\>

    h.  Interest Rebate Amount, \<InterestRebateAmount\>

8.  The required data elements for an actual disbursement are:

```{=html}
<!-- -->
```
a.  Disbursement Number, \<Disbursement Number= \" \"\>

b.  Disbursement Amount (gross), \<DisbursementAmount\> (gross amount)

c.  Disbursement Date, \<DisbursementDate\>

d.  Disbursement Release Indicator set to "true,"
    \<DisbursementReleaseIndicator = "true"\>

e.  Disbursement Sequence Number, \<DisbursementSequenceNumber\>

f.  Disbursement Net Amount, \<DisbursementNetAmount\>

g.  Disbursement Fee Amount, \<DisbursementFeeAmount\>

h.  Interest Rebate Amount, \<InterestRebateAmount\>

> **Note:** The COD System does not accept Direct Loan PLUS
> disbursements with a Disbursement Release Indicator = "true" without
> an approved credit decision on file.

4.  The calculation to determine whether or not to increase the CFL is
    driven by:

```{=html}
<!-- -->
```
a.  Disbursement Date,

b.  Disbursement Release Indicator set to "true," and

c.  Acceptance of an actual disbursement.

> **Note:** No longer does just the Disbursement Date and an accepted
> MPN (if COD prints and collects the note) drive the calculation to
> determine whether or not to increase the CFL.

4.  Schools participating in **Advanced Funded** can submit a
    Disbursement Release Indicator = "true" up to seven (7) calendar
    days prior to the disbursement date.

    a.  When the current date is seven (7) calendar days or less prior
        to the Disbursement Date and the Disbursement Release Indicator
        is set to "true," the COD System accepts the actual disbursement
        whether or not the MPN is accepted. The COD System will not
        accept a PLUS actual disbursement without an approved credit
        decision on file.

```{=html}
<!-- -->
```
i.  The CFL calculation is performed and uses the actual disbursement to
    determine if the CFL needs to be increased once the promissory note
    is on file.

ii. When the actual disbursement is accepted prior to the disbursement
    date and the promissory note is on file, the actual disbursement is
    booked on the disbursement date and passed to Servicing.

    b.  When the current date exceeds seven (7) calendar days prior to
        the Disbursement Date and the Disbursement Release Indicator is
        set to "true," the COD System rejects the disbursement with
        error code 051.

    ```{=html}
    <!-- -->
    ```
    4.  Schools participating in **Pushed Cash** can submit a
        Disbursement Release Indicator = "true" up to seven (7) calendar
        days prior to the disbursement date.

        a.  When the current date is seven (7) calendar days or less
            prior to the Disbursement Date and the Disbursement Release
            Indicator is set to "true," the COD System accepts and funds
            the actual disbursement if the MPN is accepted. If the MPN
            is rejected, the actual disbursement is rejected. In
            addition, the COD System does not accept a PLUS actual
            disbursement without an approved credit decision on file.

            i.  The CFL calculation is performed and uses the actual
                disbursement to determine if the CFL needs to be
                increased.

            ii. When the actual disbursement is accepted prior to the
                disbursement date, the actual disbursement is booked on
                the disbursement date and passed to Servicing.

        ```{=html}
        <!-- -->
        ```
        a.  When the current date exceeds seven (7) calendar days prior
            to the Disbursement Date and the Disbursement Release
            Indicator is set to "true," the COD System rejects the
            disbursement with error code 051.

> **Note:** For schools participating in Pushed Cash, the Pending
> Disbursement List report can assist in identifying estimated
> disbursements and their disbursement dates.

5.  Schools placed in **Cash Monitoring 1 (HCM1)** review status by Case
    Management can submit a Disbursement Release Indicator = "true" up
    to seven (7) calendar days prior to the disbursement date.

    a.  When the current date is seven (7) calendar days or less prior
        to the Disbursement Date and the Disbursement Release Indicator
        is set to "true," the COD System accepts and funds the actual
        disbursement if the MPN is accepted. If the MPN is rejected, the
        actual disbursement is rejected. In addition, the COD System
        does not accept a PLUS actual disbursement without an approved
        credit decision on file.

> i\. The CFL calculation is performed and uses the actual disbursement
> to determine if the CFL needs to be increased.

i.  The CFL will equal the net accepted actual disbursements. HCM1
    schools will not have any money available to them until actual
    disbursements are accepted by the COD System.

ii. When the actual disbursement is accepted prior to the disbursement
    date, the actual disbursement is booked on the disbursement date and
    passed to Servicing.

```{=html}
<!-- -->
```
a.  When the current date exceeds seven (7) calendar days prior to the
    Disbursement Date and the Disbursement Release Indicator is set to
    "true," the COD System rejects the disbursement with error code 051.

> **Note:** For schools participating in HCM1, the Pending Disbursement
> List report can assist in identifying estimated disbursements and
> their disbursement dates.

13) Schools placed in **Reimbursement** or **Cash Monitoring 2 (HCM2)**
    review status by Case Management can submit a Disbursement Release
    Indicator = "true" if the current date is equal to or after the
    Disbursement Date.

    a.  If the current date is equal to or after the Disbursement Date
        and the Disbursement Release Indicator is set to "true" the
        disbursement is reviewed and may be approved by FSA.

> i CFL is increased based on approvals by Case Management.
> Reimbursement schools receive an initial CFL based on the CFL
> calculation prior to submission of actual disbursements. Cash
> Monitoring 2 schools do not receive a CFL until the COD System accepts
> and post actual disbursements.

i.  Reimbursement Analyst initiates the drawdown through GAPS.

#### Example for Schools Participating in Advanced Funded: 

+-------------+--------------+------------+-------------+-------------+
| **Date Disb | Disbursement | **Disb     | **Accepted  | *           |
| Info        | Release      | Date**     | MPN**       | *RESULTS:** |
| Submitted** | Indicator    |            |             |             |
|             |              |            |             | **CFL       |
|             |              |            |             | Calculation |
|             |              |            |             | is          |
|             |              |            |             | Performed** |
+-------------+--------------+------------+-------------+-------------+
| 08-29-2004  | true         | 09-06-2004 | Yes or No   | NO          |
+-------------+--------------+------------+-------------+-------------+
| 08-30-2004  | true         | 09-06-2004 | Yes or No   | YES         |
+-------------+--------------+------------+-------------+-------------+
| 09-01-2004  | true         | 09-06-2004 | Yes or No   | YES         |
+-------------+--------------+------------+-------------+-------------+
| 09-08-2004  | true         | 09-06-2004 | Yes or No   | YES         |
+-------------+--------------+------------+-------------+-------------+

#### Example for Schools Participating in Pushed Cash or HCM1:

+-------------+--------------+------------+-------------+-------------+
| **Date Disb | Disbursement | **Disb     | **Accepted  | *           |
| Info        | Release      | Date**     | MPN**       | *RESULTS:** |
| Submitted** | Indicator    |            |             |             |
|             |              |            |             | **CFL       |
|             |              |            |             | Calculation |
|             |              |            |             | is          |
|             |              |            |             | Performed** |
+-------------+--------------+------------+-------------+-------------+
| 08-29-2004  | true         | 09-06-2004 | Yes or No   | NO          |
+-------------+--------------+------------+-------------+-------------+
| 08-30-2004  | true         | 09-06-2004 | No          | NO          |
+-------------+--------------+------------+-------------+-------------+
| 08-30-2004  | true         | 09-06-2004 | Yes         | YES         |
+-------------+--------------+------------+-------------+-------------+
| 09-08-2004  | true         | 09-06-2004 | No          | NO          |
+-------------+--------------+------------+-------------+-------------+
| 09-08-2004  | true         | 09-06-2004 | Yes         | YES         |
+-------------+--------------+------------+-------------+-------------+

#### Example for Schools Participating in Reimbursement or HCM2:

+-------------+--------------+------------+-------------+-------------+
| **Date Disb | Disbursement | **Disb     | **Accepted  | *           |
| Info        | Release      | Date**     | MPN**       | *RESULTS:** |
| Submitted** | Indicator    |            |             |             |
|             |              |            |             | **Review by |
|             |              |            |             | FSA**       |
+-------------+--------------+------------+-------------+-------------+
| 08-29-2004  | true         | 09-06-2004 | Yes or No   | NO          |
+-------------+--------------+------------+-------------+-------------+
| 08-30-2004  | true         | 09-06-2004 | Yes or No   | NO          |
+-------------+--------------+------------+-------------+-------------+
| 09-06-2004  | true         | 09-06-2004 | Yes         | YES         |
+-------------+--------------+------------+-------------+-------------+
| 09-06-2004  | true         | 09-06-2004 | No          | NO          |
+-------------+--------------+------------+-------------+-------------+
| 09-08-2004  | true         | 09-06-2004 | Yes         | YES         |
+-------------+--------------+------------+-------------+-------------+
| 09-08-2004  | true         | 09-06-2004 | No          | NO          |
+-------------+--------------+------------+-------------+-------------+

### Reporting Pennies in the Award and Disbursement Amount Data Elements

The Award and Disbursement Amounts on the Common Record may include
pennies. In the Direct Loan Program, pennies are not processed or stored
by the COD System. All Direct Loan reported amounts that include partial
dollar amounts will be truncated.

#### Business Rules:

1.  The data elements for Award and Disbursement Amounts on the Common
    Record may include two digits to the right of a decimal point.

```{=html}
<!-- -->
```
1.  The Direct Loan Program does NOT process or store award and
    disbursement amounts using pennies. (The method for calculating
    disbursements has not changed and is included in the next section.)

2.  Pennies that are reported in the award and disbursement amount data
    elements will be truncated by the COD System. The COD System does
    NOT round to the nearest dollar when truncating reported amounts.
    For example, a reported amount of \$2625.67 will be truncated to
    \$2625.

3.  The award and disbursement amount data elements are:

```{=html}
<!-- -->
```
a.  Award Amount, \<FinancialAwardAmount\>

b.  Award Amount Requested, \<FinancialAwardAmountRequested\> (**Note**:
    For the 2003-2004 award year only)

c.  Disbursement Amount (gross), \<DisbursementAmount\>

d.  Disbursement Fee Amount, \<DisbursementFeeAmount\>

e.  Interest Rebate Amount, \<InterestRebateAmount\>

f.  Disbursement Net Amount, \<DisbursementNetAmount\>

### Calculating Direct Loan Disbursements

The current disbursement calculations and rounding logic used to process
Direct Loans in 2003- 2004 continues to be used for 2004-2005.

The next two sections discuss these calculations and provide examples.
This first section discusses ***Disbursement Amount (Gross)
Calculations***. The next section discusses ***Disbursement Net Amount,
Disbursement Fee Amount, and Interest Rebate Amount Calculations*.**

#### Business Rules:

1)  The current method to calculate individual Disbursement Amounts
    (Gross) and the current rounding logic have not changed since the
    implementation of COD. The variance is still applied to the last
    disbursement. See **Disbursement Amount (Gross) Calculations** below
    for steps and examples.

2)  Schools submit the Disbursement Amount (gross), Disbursement Fee
    Amount, Interest Rebate Amount and Disbursement Net Amount to the
    COD System for disbursements.

3)  The method to calculate the Disbursement Net Amount and Disbursement
    Fee Amount and Interest Rebate Amount is a six step process. See the
    next section **Disbursement Net Amount, Disbursement Fee Amount, and
    Interest Rebate Amount Calculations** for the calculations and
    examples.

#### Disbursement Amount (Gross) Calculations:

When determining disbursement amounts (gross) for a loan, dollar figures
are rounded to the nearest dollar and all disbursements are equal with
the exception of the last disbursement, in some cases. This is due to
any variance being applied to the last disbursement.

When computing gross disbursement amounts, use the following
specifications:

**Step 1:** *Individual disbursement amount is Award Amount divided by
the total number of disbursements.*

> If necessary, truncate any positions that exist past 2 decimal places.

**Step 2**: *Round the individual disbursement amount. Rounding occurs
at the 1st and 2nd decimal places to the nearest dollar.*

-   If the 1st and 2nd decimal places are 50 or greater, increase the
    1st digit to the left of the decimal sign by one.

-   If the 1st and 2nd decimal places are less than 50, do not change
    the 1st digit to the left of the decimal sign.

**Step 3:** To determine the amount of the last disbursement, multiply
the individual disbursement amount by the number of disbursements.

-   If the sum of the disbursements is greater than the Loan Amount
    Approved, subtract the difference from the last disbursement.

-   If the sum of the disbursements is less than the Loan Amount
    Approved, add the difference to the last disbursement.

> The variance is applied to the last disbursement.

#### Example 1: Determining Gross Disbursement Amounts for Two Disbursements

**Award Amount:** \$2625

**Step 1:** 2625 divided by 2 = 1312.5000

> First truncate any positions that exist past 2 decimals as rounding
> occurs at the 1st and 2nd decimal places.
>
> Therefore, 1312.5000 truncates to 1312.50

**Step 2:** Round at the 1st and 2nd decimal places to determine the
individual disbursement amount.

-   If the 1st and 2nd decimal places are .50 or greater, increase the
    1st digit to the left of the decimal sign by 1.

-   If the 1st and 2nd decimal places are less than .50, do not change
    the 1st digit to the left of the decimal sign.

> Round 1312.50 to 1313. Therefore, all disbursement amounts are 1313
> except the last disbursement.

**Step 3:** To determine the last disbursement amount, multiply the
individual disbursement amount by the number of disbursements.

> Multiply 1313 by 2 = 2626
>
> Since \$2626 is more than \$2625, subtract the difference of \$1. The
> last disbursement is equal to \$1313--\$1 or \$1312.

**Final Results:**

1st Disbursement Amount (gross) = 1313

2nd Gross Disbursement Amount (gross) = 1312

Total Award Amount = \$2625

#### 

#### Example 2: Determining Gross Disbursement Amounts for Three Disbursements

**Award Amount:** \$1000

**Step 1:** 1000 divided by 3 = 333.3333

> First truncate any positions that exist past 2 decimals as rounding
> occurs at the 1st and 2nd decimal places.
>
> Therefore, 333.3333 truncates to 333.33

**Step 2:** Round at the 1st and 2nd decimal places to determine the
individual disbursement amount.

-   If the 1st and 2nd decimal places are .50 or greater, increase the
    1st digit to the left of the decimal sign by one.

-   If the 1st and 2nd decimal places are less than .50, do not change
    the 1st digit to the left of the decimal sign.

> Round 333.33 to 333. Therefore, all disbursement amounts are 333
> except the last disbursement.

**Step 3:** To determine the last disbursement amount, multiply the
individual disbursement amount by the number of disbursements.

####### Multiply 333 by 3 = 999

> Since \$999 is less than \$1000 you add the difference of \$1. The
> last disbursement is equal to \$333 + \$1 or \$334.

**Final Results:**

1st Disbursement Amount (gross) = \$333

2nd Disbursement Amount (gross) = \$333

3rd Disbursement Amount (gross) = \$334

Total Award Amount = \$1000

#### 

#### Example 3: Determining Gross Disbursement Amounts for Six Disbursements

**Award Amount:** \$22,167

**Step 1:** 22167 divided by 6 = 3694.5000

> First truncate any positions that exist past 2 decimals as rounding
> occurs at the 1st and 2nd decimal places.
>
> **Therefore, 3694.5000 truncates to 3694.50**

**Step 2:** Round at the 1st and 2nd decimal places to determine the
individual disbursement amount.

-   If the 1st and 2nd decimal places are .50 or greater, increase the
    1st digit to the left of the decimal sign by 1.

-   If the 1st and 2nd decimal places are less than .50, do not change
    the 1st digit to the left of the decimal sign.

> Round 3694.50 to 3695. Therefore, all disbursement amounts are 3695
> except the last disbursement.

**Step 3:** To determine the last disbursement amount, multiply the
individual disbursement amount by the number of disbursements.

> Multiply 3695 by 6 = 22170
>
> Since \$22170 is more than \$22167, subtract the difference of \$3.
> The last disbursement is equal to \$3695--\$3 or \$3692.

**Final Results:**

1st Disbursement Amount (gross) = \$3695

2nd Disbursement Amount (gross) = \$3695

3rd Disbursement Amount (gross) = \$3695

4th Disbursement Amount (gross) = \$3695

5th Disbursement Amount (gross) = \$3695

6th Disbursement Amount (gross) = \$3692

Total Award Amount = \$22,167

### 

### Disbursement Net Amount, Disbursement Fee Amount, and Interest Rebate Amount Calculations

A 6-step calculation is used to derive the Disbursement Net Amount,
Disbursement Fee Amount and Interest Rebate Amount. This process allows
a school to start the calculation with either the gross disbursement
amount or the net disbursement amount and arrive with the same results.

#### Business Rules:

1)  An up-front interest rebate amount is calculated at the disbursement
    level by the schools for each Subsidized, Unsubsidized, and PLUS
    loan.

2)  The combined fee/interest is a field used to assist in the
    calculation of the net disbursement amount. This field is for the
    calculation only and is NOT a field sent to the COD System.

3)  When calculating the Combined Fee/Interest Rebate Amount and the
    Loan Fee Amount, take all results out three (3) decimal places to
    ensure consistent results and then truncate.

4)  When determining the Combined Fee/Interest Rebate Amount,
    Disbursement Fee Amount, and the Interest Rebate Amount truncate the
    result by removing the cents from the whole dollar amount. Do not
    round to the nearest dollar when truncating.

5)  When calculating the individual Disbursement Fee Amount, Interest
    Rebate Amount, and Disbursement Net Amount, use the following
    specifications for all disbursements:

> To calculate **Net Disbursement Amount**:
>
> **Step 1:** Combined Fee/Interest Rebate Amount (go out to 3 decimal
> places) = Disbursement Amount (Gross) x (Origination Fee Percentage --
> Interest Rebate Percentage)
>
> **Step 2:** Truncate the Combined Fee/Interest Rebate Amount
>
> **Step 3:** Disbursement Net Amount = Disbursement Amount (gross) --
> Combined Fee/Interest Rebate Amount
>
> To calculate **Loan Fee Amount**:
>
> **Step 4:** Disbursement Fee Amount (go out to 3 decimal places) =
> Disbursement Amount (gross) x Origination Fee Percentage
>
> **Step 5:** Truncate the Disbursement Fee Amount
>
> To calculate **Interest Rebate Amount**:
>
> **Step 6:** Interest Rebate Amount = Disbursement Net Amount --
> (Disbursement Amount (gross) -- Disbursement Fee Amount)
>
> To calculate from **Disbursement Net Amount to Disbursement Amount
> (gross)** use the following calculation:
>
> Disbursement Net Amount multiplied by 100 divided by 100 minus (Fee% -
> Rebate%)
>
> OR
>
> For Subsidized and Unsubsidized loans, Disbursement Net Amount divided
> by .985 = Disbursement Amount (gross) (truncated)
>
> For PLUS loans, Disbursement Net Amount divided by .975 = Disbursement
> Amount (gross) (truncated)
>
> Then proceed with Step 4.

#### Example 1: Determining Combined Fee/Interest Rebate Amount, Disbursement Net Amount, Disbursement Fee Amount, and Interest Rebate Amount for three Disbursements

  -------- -------- ------------------------ -------------- -------------- ---------------- ----------- -------------------
                    **Step 1**               **Step 2**     **Step 3**     **Step 4**       **Step 5**  **Step 6**

  Disb.    Gross    Combined Fee/Interest    Truncated      Disb. Net      Disb. Fee Amount Truncated   Interest Rebate
  Number   Disb.    Rebate Amount            Combined       Amount                          Disb. Fee   Amount
           Amount                            Fee/Interest                                   Amount      
                                             Rebate Amount                                              

  1        \$1167   1167x(.03-.015)=17.505   17             1167-17=1150   1167x.03=35.01   35          1150-(1167-35)=18

  2        \$1167   1167x(.03-.015)=17.505   17             1167-17=1150   1167x.03=35.01   35          1150-(1167-35)=18

  3        \$1166   1166x(.03-.015)=17.49    17             1166-17=1149   1166x.03=34.98   34          1149-(1166-34)=17

  Totals   \$3500                                           \$3449                          104         53
  -------- -------- ------------------------ -------------- -------------- ---------------- ----------- -------------------

#### 

#### Example 2: Determining Combined Fee/Interest Rebate Amount, Disbursement Net Amount, Loan Fee Amount, and Interest Rebate Amount for twelve disbursements

  -------- -------- ---------------------- -------------- ----------- -------------- ----------- ---------------
                    **Step 1**             **Step 2**     **Step 3**  **Step 4**     **Step 5**  **Step 6**

  Disb.    Gross    Combined Fee/Interest  Truncated      Disb. Net   Disb. Fee      Truncated   Interest Rebate
  Number   Disb.    Rebate Amount          Combined       Amount      Amount         Disb. Fee   Amount
           Amount                          Fee/Interest                              Amount      
                                           Rebate Amount                                         

  1        \$219    219x(.03-.015)=3.285   3              219-3=216   219x.03=6.57   6           216-(219-6)=3

  2        \$219    219x(.03-.015)=3.285   3              219-3=216   219x.03=6.57   6           216-(219-6)=3

  3        \$219    219x(.03-.015)=3.285   3              219-3=216   219x.03=6.57   6           216-(219-6)=3

  4        \$219    219x(.03-.015)=3.285   3              219-3=216   219x.03=6.57   6           216-(219-6)=3

  5        \$219    219x(.03-.015)=3.285   3              219-3=216   219x.03=6.57   6           216-(219-6)=3

  6        \$219    219x(.03-.015)=3.285   3              219-3=216   219x.03=6.57   6           216-(219-6)=3

  7        \$219    219x(.03-.015)=3.285   3              219-3=216   219x.03=6.57   6           216-(219-6)=3

  8        \$219    219x(.03-.015)=3.285   3              219-3=216   219x.03=6.57   6           216-(219-6)=3

  9        \$219    219x(.03-.015)=3.285   3              219-3=216   219x.03=6.57   6           216-(219-6)=3

  10       \$219    219x(.03-.015)=3.285   3              219-3=216   219x.03=6.57   6           216-(219-6)=3

  11       \$219    219x(.03-.015)=3.285   3              219-3=216   219x.03=6.57   6           216-(219-6)=3

  12       \$216    216x(.03-.015)=3.240   3              216-3=213   216x.03=6.48   6           213-(216-6)=3

  Totals   \$2625                                         \$2589                     72          36
  -------- -------- ---------------------- -------------- ----------- -------------- ----------- ---------------

### 

### Updating and Adjusting Direct Loan Disbursement Amounts and Dates

While Disbursement Release Indicator is set to "false," the Anticipated
Disbursement Amounts and Dates can be updated. Once the Disbursement
Release Indicator = "true," the Actual Disbursement Amount and Dates can
be adjusted.

#### Business Rules:

**Updating (when Disbursement Release Indicator=false):**

1.  Disbursement Amount and Disbursement Date can be updated prior to a
    Disbursement Release Indicator = "true."

2.  To update a Disbursement Amount and/or Disbursement Date, the
    following data elements are required:

```{=html}
<!-- -->
```
a.  Disbursement Release Indicator = "false",
    \<DisbursementReleaseIndicator = "false"\>

b.  Disbursement Number, \<Disbursement Number= ""\>

c.  Disbursement Sequence Number of "01", \<DisbursementSequenceNumber\>

d.  Disbursement Amount (gross), \<DisbursementAmount\>

e.  Disbursement Net Amount, \<DisbursementNetAmount\>

f.  Disbursement Fee Amount, \<DisbursementFeeAmount\>

g.  Interest Rebate Amount, \<InterestRebateAmount\>

h.  Disbursement Date, \<DisbursementDate\>

**Adjusting (when Disbursement Release Indicator=true):**

1)  Once a disbursement transaction with a Disbursement Sequence Number
    of "01" is accepted with a Disbursement Release Indicator = "true,"
    the Disbursement Amount and Disbursement Date can be adjusted.

2)  An upward Disbursement Amount adjustment should occur on the
    Disbursement Date only if the additional funds are disbursed on that
    same date.

> **Note**: If a student requests additional aid after the Disbursement
> Date, schools should submit a new Disbursement Number and Disbursement
> Date.

3)  Disbursement Amount and Disbursement Date **cannot** be adjusted in
    the same Disbursement complex element.

4)  A disbursement transaction to adjust a Disbursement Amount or Date
    **must** have a unique Disbursement Sequence Number.

5)  Disbursement Sequence Numbers for a specific Disbursement Number
    must be used in incremental, sequential order within the range of
    01-65.

6)  Previous Sequence Number for a specific Disbursement Number is
    returned on all disbursement responses and can be used to determine
    the next Disbursement Sequence Number.

7)  Disbursement Amount and Disbursement Date can be adjusted in the
    same Common Record submission if each Disbursement complex element
    uses distinct sequential Disbursement Sequence Numbers AND is nested
    within the same Award tag.

8)  Disbursement Date is always the date the cash was credited to the
    student's account (according to Federal regulations) or paid to the
    student (or parent, if PLUS loan) directly for a specific
    disbursement number.

9)  Disbursement Date is submitted on an Adjusted Disbursement Amount
    transaction.

> **Note:** For the 2002-2003 award year and forward, Full Participants
> must submit the Disbursement Date, NOT the transaction date for
> adjusted disbursement amounts. See Example below.

10) Direct Loan disbursement amounts can be adjusted to \$0.

11) **To adjust a Disbursement Amount**, the following data elements are
    required:

```{=html}
<!-- -->
```
a.  Disbursement Release Indicator = "true",
    \<DisbursementReleaseIndicator = "true"\>

b.  Disbursement Number, \<Disbursement Number= ""\>

c.  New Disbursement Sequence Number, \<DisbursementSequenceNumber\>

d.  New Disbursement Amount (gross), \<DisbursementAmount\>

e.  Disbursement Date, \<DisbursementDate\>

f.  New Disbursement Net Amount, \<DisbursementNetAmount\>

g.  New Disbursement Fee Amount, \<DisbursementFeeAmount\>

h.  New Interest Rebate Amount, \<InterestRebateAmount\>

> **Note:** When adjusting a disbursement amount, the disbursement date
> CANNOT also be updated in the same Disbursement complex element. When
> you submit the disbursement date, it must be the disbursement date
> already on file on the COD database for this disbursement number.

12. **To adjust a Disbursement Date**, the following data elements are
    required:

    a.  DisbursementReleaseIndicator = "true"

    b.  Disbursement Number, \<Disbursement Number= ""\>

    c.  New Disbursement Sequence Number, \<DisbursementSequenceNumber\>

    d.  New Disbursement Date, \<DisbursementDate\>

> **Note:** When adjusting a disbursement date, the disbursement amounts
> CANNOT also be updated in the same Disbursement complex element. If
> you submit the disbursement amounts, the amounts must be the
> disbursement amounts already on file on the COD database for this
> disbursement number.

#### Example:

When submitting an adjusted disbursement amount for an actual
disbursement on the Common Record, the Disbursement Date (i.e. the date
the school disburses the funds to the student) is reported. The
transaction date (i.e. the date the school processes the adjusted
disbursement amount) is not submitted.

A school disburses the first disbursement of a loan to a student for
\$2000 on 9/10/2004. The school discovers that the disbursement amount
needs to be corrected to \$1000. On 9/15/2004, the school adjusts the
disbursement amount to \$1000. The school then discovers that the
student needs the full original loan amount. On 9/20/2004, the school
disburses a second disbursement to the student for \$1000. The school
does NOT upwardly adjust the first disbursement since the additional
funds were disbursed on a different date. The actual disbursement
transaction and adjusted disbursement transaction must be submitted on
the Common Record as follows:

  ---------------- ---------------- -------- ---------- ---------------- ----------- ------- ------------ -------
                   **Disbursement   **Disb   **Disb     **Disbursement   **Disb Amt  **Fee   **Interest   **Net
                   Release          \#**     Sequence   Date**           (gross)**   Amt**   Rebate Amt** Disb
                   Indicator**               \#**                                                         Amt**

  **Actual         True             01       01         09-10-2004       2000        60      30           1970
  Disbursement**                                                                                          

  **Adjusted       True             01       02         09-10-2004\*\*   1000        30      15           985
  Disbursement**                                                                                          

  **Actual         True             02       01         09-20-2004       1000        30      15           985
  Disbursement**                                                                                          
  ---------------- ---------------- -------- ---------- ---------------- ----------- ------- ------------ -------

\*\* DO NOT submit the transaction date of 09-15-2004 on the Adjusted
Disbursement.

### Disbursement Requirements for Award Amount Updates 

**2004-2005 Modification:** The anticipated and actual disbursement
amounts that exist for the award determine whether a change to the Award
Amount will be accepted or rejected by the COD System. Anticipated
disbursement information may be recalculated by the COD System when the
school submits a change to the Direct Loan Award Amount on an existing
award.

#### Business Rules:

1)  The COD System will compare the changed Award Amount to the sum of
    the actual disbursements (Disbursement Release Indicator = "true")
    and the sum of the anticipated disbursements (Disbursement Release
    Indicator = "false") to determine if the change to the Award Amount
    should be rejected or accepted.

```{=html}
<!-- -->
```
2)  A change to the Award Amount will be accepted if the new Award
    Amount is greater than or equal to the sum of the actual
    disbursements.

3)  A change to the Award Amount will be rejected if the new Award
    Amount is less than the sum of the actual disbursements. The change
    to the Award Amount will reject with error code 041. (Edit 041 is
    only returned if the Disbursement Release Indicator = "true" on the
    change record).

4)  If a new Award Amount is less than the sum of the anticipated
    disbursements and the sum of the actual disbursements is equal to
    \$0, the COD System will recalculate the anticipated disbursements
    until the sum of the anticipated disbursements is equal to the new
    Award Amount. Edit 118 will inform the school that the anticipated
    disbursements have been recalculated.

    a.  The COD System recalculates the anticipated disbursements by
        first reducing the last anticipated disbursement (highest
        disbursement number) and then reducing each of the previous
        disbursement amounts as needed. See EXAMPLE #1.

    b.  The COD System will not recalculate the anticipated
        disbursements when the school submits both a reduction to the
        Award Amount and adjustments to the anticipated disbursements in
        the same submission to the COD System.

5)  If the Award Amount is reduced to \$0 and the sum of the actual
    disbursements is equal to \$0, all anticipated disbursements will
    also be reduced to \$0 to allow loan inactivation. Warning edit 119
    will be returned in the Response document to inform schools that all
    anticipated disbursements have been reduced to \$0.

> **Note**: Please refer to the "Inactivating a Direct Loan" section for
> more information on loan inactivation.

6)  If an accepted Award Amount is less than the original Award Amount,
    but greater than the sum of the anticipated disbursements, the
    anticipated disbursements will not be recalculated by the COD
    System. See EXAMPLE #2.

7)  When COD recalculates an anticipated disbursement, the Disbursement
    Net Amount, Disbursement Fee Amount, and Interest Rebate Amounts
    will also be recalculated.

> **Note**: Please refer to the "Calculating Direct Loan Disbursements"
> and the "Disbursement Net Amount, Disbursement Fee Amount, and
> Interest Rebate Amount Calculations" sections for more information
> about Direct Loan calculations performed by the COD System.

8)  The COD system will return zero in the actual and anticipated
    disbursement data elements in the Direct Loan Rebuild file for an
    award with a Disbursement Release Indicator = "true" and the sums of
    the actual and anticipated disbursements equal zero. These data
    elements will contain zero in both the origination and disbursement
    segments of the file for award years 2002-2003 and forward.

#### Examples: 

EXAMPLE #1:

The award amount changes from \$6000 to \$1500 on award with no actual
disbursements on file. The anticipated disbursements are recalculated as
follows:

  ------------------ --------------------------- -------------------------
  Disbursement       Previous Anticipated        New Anticipated
  Number             Disbursement Amount         Disbursement Amount

  1                  \$2000                      \$1500

  2                  \$2000                      \$0

  3                  \$2000                      \$0
  ------------------ --------------------------- -------------------------

The award amount changes from \$6000 to \$3000 on an award with no
actual disbursements on file. The anticipated disbursements are
recalculated as follows:

  ------------------ --------------------------- -------------------------
  Disbursement       Previous Anticipated        New Anticipated
  Number             Disbursement Amount         Disbursement Amount

  1                  \$2000                      \$2000

  2                  \$2000                      \$1000

  3                  \$2000                      \$0
  ------------------ --------------------------- -------------------------

EXAMPLE #2:

The award amount changes from \$6000 to \$8000 on an award with no
actual disbursements on file. The anticipated disbursements are not
recalculated since the sum of the anticipated disbursements is less than
the new award amount.

  ------------------ --------------------------- -------------------------
  Disbursement       Previous Anticipated        New Anticipated
  Number             Disbursement Amount         Disbursement Amount

  1                  \$2000                      \$2000

  2                  \$2000                      \$2000

  3                  \$2000                      \$2000
  ------------------ --------------------------- -------------------------

### Inactivating a Direct Loan 

To inactivate a Direct Loan, update the Award Amount to \$0 and reduce
actual disbursements to \$0.

#### Business Rules:

1)  The Award Amount and actual disbursements must be reduced to \$0 to
    inactivate a loan.

2)  All activity can be generated and submitted in the same Common
    Record.

3)  If the Award Amount is reduced to \$0 and the sum of the actual
    disbursements is equal to \$0, the COD System will automatically
    reduce all anticipated disbursements to \$0 to allow loan
    inactivation. Warning edit 119 will be returned in the Response
    document to inform schools that all anticipated disbursements for
    the award have been reduced to \$0. See EXAMPLE 1.

4)  A funded loan can be inactivated if a borrower returns all of the
    disbursed funds to the school within 120 calendar days of
    disbursement or if the school returns the money to comply with
    Federal regulations. Principal, fees, interest and rebate are
    adjusted accordingly.

5)  If a school makes a Payment to Servicing to return funds, the
    borrower's disbursements will be reduced automatically in COD. The
    school should NOT also submit a disbursement adjustment to COD.

6)  A funded loan cannot be inactivated if a borrower returns the
    disbursed funds to Servicing after 120 calendar days. A loan will
    not be activated if the funds are returned to Servicing prior to 120
    calendar days.

#### Examples: 

EXAMPLE #1:

The award amount changes from \$6000 to \$0 on an award with no actual
disbursements on file. The COD System reduces all anticipated
disbursements to zero and inactivates the loan.

  ------------------ --------------------------- -------------------------
  Disbursement       Previous Anticipated        New Anticipated
  Number             Disbursement Amount         Disbursement Amount

  1                  \$2000                      \$0

  2                  \$2000                      \$0

  3                  \$2000                      \$0
  ------------------ --------------------------- -------------------------

### Generating Direct Loan Booking Notification Responses

The COD System generates a Booking Notification Response when the loan
books with a first disbursement. Subsequent Booking Notifications are
NOT sent for each subsequent funded disbursement.

#### Business Rules:

1)  When the Document Status is equal to "Accepted" and the Disbursement
    Release Indicator is "false," the Common Record Response indicates
    an accepted Award or in the case of Direct Loan accepted loan.

2)  When the Document Status is equal to "Accepted" and the Disbursement
    Release Indicator is "true," the Common Record Response indicates an
    accepted Disbursement.

3)  Two tags on the Common Record assist a school in determining if an
    MPN is accepted.

```{=html}
<!-- -->
```
a.  The MPN Status Code \<MPNStatusCode\> indicating a status of "A"
    (Accepted) OR

b.  The MPN Link Indicator \<MPNLinkIndicator\> indicating a status of
    "true," record has been linked to an MPN.

```{=html}
<!-- -->
```
4)  When the Credit Decision Status tag \<CreditDecisionStatus\>
    indicates a status of "A," it is indicating an accepted credit
    decision for the PLUS Loan.

5)  A loan books when the award is accepted, the MPN is accepted and the
    first Disbursement is funded. The first Disbursement must be greater
    than \$0 in order for a loan to book. In the case of a PLUS loan,
    the loan must have an accepted Credit Decision Status.

6)  When a loan books, the COD System generates a Booking Notification
    Response to the school.

7)  A COD system-generated Booking Notification Response contains a
    Document Type of "BN." The Document Type indicates the type of
    Response.

8)  A Response Document of Document Type "BN" contains a
    system-generated Document ID.

9)  A Booking Notification Response contains the following data elements
    in the Response Complex Element \<Response\>:

    i.  Booked Loan Amount, \<BookedLoanAmount\>

    ii. Booked Loan Amount Date, \<BookedLoanAmountDate\>

    iii. Document Type, \<DocumentTypeCode\>

    iv. Processing Date, \<ProcessDate\>

```{=html}
<!-- -->
```
9)  Booked Loan Amount is the total net amount of the first disbursement
    accepted and booked by COD for the award.

10) The Booking Notification allows a school to update their system with
    the Booked Status of a loan to assist with the Direct Loan
    reconciliation process.

#### Example: 

Below is a sample **Booking Notification Response**:

\<CommonRecord\>

\<DocumentId\>2004-07-0T09:09:09.0012345678\</DocumentId\>

\<CreatedDateTime\>2004-07-10T09:09:09.00\</CreatedDateTime\>

\<Source\>

\<COD EntityID=\"00000001\"/\>

\</Source\>

\<Destination\>

\<School EntityID=\"12345678\"/\>

\</Destination\>

\<FullResponseCode\>F\</FullResponseCode\>

\<ReportingSchool EntityID=\"12345678\"\>

\<AttendedSchool EntityID=\"12345678\"\>

\<Student SSN=\"123456789\" BirthDate=\"1972-01-01\"
LastName=\"SMITH\"\>

\<NoteMessage\>999999999\</NoteMessage\>

\<DLSubsidized\>

\<FinancialAwardYear\>2005\</FinancialAwardYear\>

\<NoteMessage\>999999999\</NoteMessage\>

\<FinancialAwardNumber\>001\</FinancialAwardNumber\>

\<FinancialAwardID\>123456789S03G12345001\</FinancialAwardID\>

\<Response\>

\<ResponseCode\>A\</ResponseCode\>

\<BookedLoanAmount\>985\</BookedLoanAmount\>

\<BookedLoanAmountDate\>2004-07-10\</BookedLoanAmountDate\>

\</Response\>

\</DLSubsidized\>

\<Response\>

\<ResponseCode\>A\</ResponseCode\>

\</Response\>

\</Student\>

> \<Response\>

\<ResponseCode\>A\</ResponseCode\>

\</Response\>

\</AttendedSchool\>

\<Response\>

\<ResponseCode\>A\</ResponseCode\>

\</Response\>

\</ReportingSchool\>

\<Response\>

\<DocumentTypeCode\>BN\</DocumentTypeCode\>

\<DocumentStatusCode\>A\</DocumentStatusCode\>

\<ProcessDate\>2004-07-10\</ProcessDate\>

\</Response\>

\</CommonRecord\>

### Generating Payment to Servicing Responses

When a student or parent makes a payment to Direct Loan Servicing within
120 calendar days of the disbursement date, the COD System generates a
Payment to Servicing Response that is sent to a school. This transaction
should be considered when determining the borrower's eligibility for a
subsequent loan.

#### Business Rules:

1.  A Payment to Servicing is generated by the COD System and sent to a
    school when a borrower makes a payment to Direct Loan Servicing
    within 120 calendar days of the disbursement date.

```{=html}
<!-- -->
```
1)  A Payment to Servicing transaction should NOT update the disbursed
    amount for the loan. This transaction is for informational purposes
    only and should be considered when determining the borrower's
    eligibility for future loans.

2)  In order to process a Payment to Servicing Response accurately, the
    following data elements are returned in addition to the Response
    complex element:

```{=html}
<!-- -->
```
a.  Award Year, \<FinancialAwardYear\>

b.  Award ID, \<FinancialAwardID\>

c.  Disbursement Number, \<Disbursement Number = ""\>

d.  Disbursement Sequence Number, \<DisbursementSequenceNumber\>

```{=html}
<!-- -->
```
3)  Disbursement Sequence Numbers on a Payment to Servicing Response are
    in descending, sequential order starting with 99 to 91.

4)  The Payment to Servicer Response contains the
    \<PreviousSequenceNumber\> tag indicating the previous accepted
    Disbursement Sequence Number on the COD System for this Disbursement
    Number.

5)  The Payment to Servicing Amount is reported as a dollar value with a
    negative sign.

```{=html}
<!-- -->
```
a.  If a previous Payment to Servicing Amount or partial amount needs to
    be reversed a positive dollar value is sent with the next descending
    sequential disbursement sequence number.

```{=html}
<!-- -->
```
6)  A COD system-generated Payment to Servicing Response contains a
    Document Type of "PS." The Document Type indicates the type of
    Response.

7)  A Response Document of Document Type "PS" contains a
    system-generated Document ID.

8)  A Payment to Servicing Response contains the following data elements
    in the Response complex element \<Response\>:

```{=html}
<!-- -->
```
a.  Payment to Servicer Amount, \<PaymentToServicerAmount\>

b.  Payment to Servicer Date, \<PaymentToServicerDate\>

c.  Document Type, \<DocumentTypeCode\>

d.  Processing Date, \<ProcessDate\>

e.  Previous Sequence Number, \<PreviousSequenceNumber\>

> **Note:** For all data elements refer to the sample on the next page.

#### Example:

A school receives a Payment to Servicing transaction for \$500 on a
fully disbursed \$2625 loan for a first year student. The school's
system should continue to store the borrower's loan as \$2625.

However, if the first year student decides to later request an
additional loan for \$500 for the same academic year, the \$500 Payment
to Servicing would be taken into consideration by the school when
determining the student's eligibility to borrow an additional \$500
loan.

If the student is eligible to borrow the additional \$500 loan, the
school's system should display two loans for this first-year student:

  ----------- ------------------------------ ---------------- --------------
  **Student   **Academic Year**              **Disbursed Loan **Payment to
  Grade                                      Amount**         Servicing**
  Level**                                                     

  1           09/02/2003 to 06/20/2004       \$2625           \$500

  1           09/02/2003 to 06/20/2004       \$500            
  ----------- ------------------------------ ---------------- --------------

Annual Loan Limit for 1^st^ Year = \$2625

Total Disbursed for Academic Year = \$3125

Payment to Servicing = \$500

Below is a sample **Payment to Servicing Response**:

\<CommonRecord\>

\<DocumentID\>2004-07-10T09:09:09.0012345678\</DocumentID\>

\<CreatedDateTime\>2004-07-10T09:09:09.00\</CreatedDateTime\>

\<Source\>

\<COD EntityID=\"00000001\"/\>

\</Source\>

\<Destination\>

\<School EntityID=\"12345678\"/\>

\</Destination\>

\<FullResponseCode\>F\</FullResponseCode\>

\<ReportingSchool EntityID=\"12345678\"\>

\<AttendedSchool EntityID=\"12345678\"\>

\<Student SSN=\"123456789\" BirthDate=\"1972-01-01\"
LastName=\"SMITH\"\>

\<NoteMessage\>999999999\</NoteMessage\>

\<DLSubsidized\>

\<FinancialAwardYear\>2005\</FinancialAwardYear\>

\<NoteMessage\>999999999\</NoteMessage\>

> \<FinancialAwardNumber\>001\</FinancialAwardNumber\>

\<FinancialAwardID\>123456789S05G12345001\</FinancialAwardID\>

\<Response\>

\<ResponseCode\>A\</ResponseCode\>

\<PaymentToServicerAmount\>-1000.00\</PaymentToServicerAmount\>

\<PaymentToServicerDate\>2004-07-10\</PaymentToServicerDate\>

\</Response\>

\<Disbursement Number=\"01\"\>

\<NoteMessage\>999999999\</NoteMessage\>

\<DisbursementSequenceNumber\>99\</DisbursementSequenceNumber\>

\<Response\>

\<ResponseCode\>A\</ResponseCode\>

\<PreviousSequenceNumber\>03\</PreviousSequenceNumber\>

\</Response\>

\</Disbursement\>

\</DLSubsidized\>

\<Response\>

\<ResponseCode\>A\</ResponseCode\>

\</Response\>

\</Student\>

\<Response\>

\<ResponseCode\>A\</ResponseCode\>

\</Response\>

\</AttendedSchool\>

\<Response\>

\<ResponseCode\>A\</ResponseCode\>

\</Response\>

\</ReportingSchool\>

\<Response\>

\<DocumentTypeCode\>PS\</DocumentTypeCode\>

\<DocumentStatusCode\>A\</DocumentStatusCode\>

\<ProcessDate\>2004-07-10\</ProcessDate\>

\</Response\>

\</CommonRecord\>

### Loan Discharge

A loan may be discharged if the borrower files for bankruptcy, becomes
totally and permanently disabled, becomes deceased, or if the loan was
the result of an unauthorized signature or payment. The Direct Loan
Servicing Center notifies COD of the change in the loan and/or
borrower's condition and of the effective date of the loan discharge, or
pending discharge. The discharge date is the date the Direct Loan
Servicing Center received notification of an unauthorized
signature/payment, bankruptcy, or disability, or the date of the
borrower's death.

#### Business Rules Specific to Bankruptcy:

1)  Upon receipt of a discharge notification, the COD System performs
    the following functions:

    a.  Inactivates all MPNs for the borrower dated ***prior*** to the
        discharge date. Affected MPNs remain linked to those loans dated
        prior to the discharge date, but cannot be linked to new loans.

    b.  Rejects all actual disbursements and upward disbursement
        adjustments dated ***after*** the discharge date for the
        affected awards. Edit code 089 is returned on the Award
        Response.

    c.  Accepts all actual disbursements and upward disbursement
        adjustments dated ***prior*** to the discharge date for the
        affected awards.

    d.  Accepts all downward adjustments on affected awards.

2)  A borrower who has filed for bankruptcy is eligible for future
    Direct Loan aid.

3)  A new MPN and award origination dated after the discharge date must
    be submitted to the COD System in order for the borrower to receive
    additional aid.

4)  The amount of additional aid a student can receive for that award
    year depends on the discharge status of the loan.

5)  While bankruptcy is pending on a Subsidized/Unsubsidized award, the
    amount of the affected award(s) is applied toward the student's
    annual loan limit.

6)  In the event that a Subsidized/Unsubsidized award has been
    discharged as part of the bankruptcy, the discharged amount is NOT
    applied toward the student's annual loan limit.

#### Example:

An undergraduate student in his second-year of study receives a loan of
\$3500. The student then files for bankruptcy in January of that award
year. The Direct Loan Servicing Center is notified of the pending
bankruptcy on 01/05/2005 and sends a pending bankruptcy notification to
the COD System two weeks later on 01/19/2005. The effective discharge
date for the loan is 01/05/2005. The COD System inactivates all MPNs on
file for that student dated prior to the discharge date.

The following table illustrates the disbursement activity for the award:

  ---------------- ---------------- -------- ---------- ---------------- ----------- -------------- ------------
                   **Disbursement   **Disb   **Disb     **Disbursement   **Disb Amt  **Date         **Result**
                   Release          \#**     Sequence   Date**           (gross)**   Disbursement   
                   Indicator**               \#**                                    Submitted to   
                                                                                     COD**          

  **Actual         True             01       01         09-10-2004       1000        10-3-2004      Accepted
  Disbursement**                                                                                    

  **Actual         True             02       01         01-02-2005       500         01-20-2005     Accepted
  Disbursement**                                                                                    

  **Adjusted       True             02       02         01-02-2005       1000        01-20-2005     Accepted
  Disbursement**                                                                                    

  **Actual         True             03       01         01-12-2005       1000        01-20-2005     Rejected
  Disbursement**                                                                                    

  **Anticipated    False            04       01         04-16-2005       500         N/A            N/A
  Disbursement**                                                                                    
  ---------------- ---------------- -------- ---------- ---------------- ----------- -------------- ------------

If the award is not discharged, the student is eligible to receive a new
award for the remaining \$1500 for that award year. If the award is
discharged, the student is eligible to receive a new award for the full
annual loan amount of \$3500. In both cases, a new MPN and new award
origination dated after 01/05/2005 must be on file at COD for the
student to receive additional aid.

#### Business Rules Specific to Total and Permanent Disability:

1)  The COD system continues to process all disbursement activity for
    loans originated prior to and after the discharge date.

2)  All MPNs are unaffected by the discharge.

#### Business Rules Specific to Death:

1)  Upon receipt of a discharge notification for a deceased student, the
    COD System performs the following functions:

```{=html}
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```
a)  Inactivates ***all*** MPNs for the borrower. MPNs will remain linked
    to loans dated prior to the discharge date, but cannot be linked to
    new loans.

b)  Rejects ***all*** disbursements received after the discharge date
    with edit code 095.

c)  Rejects ***all*** loan originations submitted after the discharge
    date with edit code 092.

#### Business Rules Specific to Unauthorized Signature/Payment:

1)  Upon receipt of a discharge notification for an unauthorized
    signature/payment, the COD System performs the following functions:

    a.  Inactivates ***only*** the MPN for the loan with an unauthorized
        signature/payment.

    b.  Rejects ***all*** disbursements for the affected award that are
        received after the discharge date with edit code 094.

2)  A borrower is eligible for future Direct Loan aid.

3)  The amount of the affected award is NOT applied toward the student's
    annual loan limit.

## Direct Loan Master Promissory Notes 

### Master Promissory Notes

For the 2003--2004 award year and forward, the Master Promissory Note
(MPN) is the approved promissory note for Direct Subsidized and
Unsubsidized Loans and PLUS loans for all schools.

#### Business Rules for MPNs:

1)  The MPN is a legal document requiring a student/borrower to repay
    the funds borrowed under the Direct Loan Program.

2)  No dollar amount is printed on the MPN by the school or COD.

3)  The COD System will process paper and electronic MPNs for all loan
    types for award year 2003-2004 and forward.

4)  An MPN must be signed by the borrower before disbursing a Direct
    Loan (Subsidized, Unsubsidized, or PLUS).

5)  An open MPN is valid for up to ten years from the date the MPN is
    received by the COD System provided that at least one disbursement
    is made within a year from the date COD received it and that the
    borrower does not close the MPN.

6)  To close an MPN a borrower must provide a request in writing.

> **Note:** Please refer to the topic entitled "Closing an MPN" for more
> information.

7)  When a school receives a closed MPN notification, the school must
    forward all original documentation to COD.

8)  Once an MPN is closed, no new loans can be linked to it. A new MPN
    must be generated if new loan awards are created. However, all
    disbursements and booking activities for the loans already linked to
    the closed MPN continue to be processed by the COD System.

#### Business Rules Unique to PLUS MPN:

1.  The PLUS MPN is to be used for PLUS processing for award year
    2003-2004 and forward.

2.  The field Award Amount Requested does not appear on the MPN for
    PLUS.

3.  For award year 2003-2004 and forward, Promissory Note Responses for
    PLUS MPNs (including unsolicited Promissory Note Responses) do NOT
    contain the \'Award Amount Requested\' data element.

4.  The PLUS MPN is for one or more PLUS loans that one parent borrows
    for one student.

5.  The PLUS MPN allows for a maximum of four disbursements on each
    distinct PLUS loan.

6.  The parent borrower can have multiple PLUS MPNs on the COD System
    for the same or for different students for the same or subsequent
    academic years. See EXAMPLE #1 below.

7.  A student can have multiple parents borrow PLUS loans for the same
    or subsequent academic years. See EXAMPLE #2 below.

8.  A parent borrower of a PLUS loan can also be a student borrower of a
    separate Subsidized/Unsubsidized award.

9.  The student associated on a PLUS loan cannot be the endorser for
    that same PLUS award.

```{=html}
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```
9)  The student associated on a PLUS loan cannot be the same person as
    the borrower for that same PLUS award.

    a.  If the PLUS borrower has the same SSN as the student associated
        with the PLUS award, the COD System rejects with COD edit 016.

10) Once a PLUS borrower signs a PLUS MPN, the borrower authorizes the
    COD System to perform an initial credit check and future credit
    checks for awards made under that MPN, without requiring subsequent
    authorization. Thus, multiple credit decisions can be associated
    with one MPN.

11) The PLUS MPN Status can be viewed on the COD web site.

#### Examples:

EXAMPLE #1: Parent borrower with multiple MPNs for multiple students:

Parent James Smith has two students (Jack and Jill) attending school
during the same award year (2004-2005). Their father, James Smith, signs
a PLUS MPN for student Jack Smith for 2004-2005 and signs a separate
PLUS MPN for student Jill Smith for 2004-2005.

EXAMPLE #2: Student with multiple MPNs for multiple parent borrowers:

Student Jack is attending school and multiple parents are helping to
fund his education. Jack's father, James Smith, borrows a PLUS loan and
signs an individual PLUS MPN for Jack Smith. In addition, Jack's
stepfather, Robert Jones, borrows a PLUS loan for Jack and signs a
separate PLUS MPN. Thus, there are two MPNs on the COD System associated
with Jack for the same award year, 2004-2005, for different parent
borrowers.

### Master Promissory Note Features 

All MPNs are processed using the multi-year (MY), single-year (SY), or,
in the case of PLUS loans, single-loan (SL) feature. Each feature is
discussed in more detail below.

### Multi-Year MPN Feature

For award year 2003-2004 and forward, the U.S. Department of Education
has expanded the authority for multi-year use of the Master Promissory
Note (MPN) in the William D. Ford Federal Direct Loan (Direct Loan) and
Federal Family Education Loan (FFEL) programs. Under the expanded
authority, unless a school is specifically informed otherwise, all
Direct Loan schools may allow their student borrowers (and their parent
borrowers under the PLUS MPN) to receive loans for subsequent academic
years based upon a previously signed MPN (even if that MPN was signed
before the effective date of the expanded authority). For more
information regarding eligibility for the MY MPN feature see the Dear
Colleague Letter GEN-02-10 (November 2002).

#### Business Rules:

1)  For the 2003-2004 award year and forward, the MY feature applies to
    all loan types. (Subsidized, Unsubsidized and PLUS).

2)  The MY feature has been expanded to include Direct Loan schools that
    are not four-year colleges or graduate or professional schools.

    a.  The expanded authority for multi-year use of the MPN is
        effective beginning with any Direct Loan for the 2003-2004 year
        and forward (a loan with an identification number that includes
        \"04\") that is processed after the COD System start up for the
        2003-2004 award year.

3)  Any Direct Loan school that is not a four-year college or graduate
    or professional school that would like to use the multi-year feature
    of the MPN must inform COD School Relations Center by phone at
    800/848-0978 or by e-mail at
    [CODSupport@acs-inc.com](mailto:CODSupport@afsa.com) by March 14,
    2004.

    a.  Schools will be identified in the COD System as using the
        single-year feature of the MPN for the purpose of linking loans
        for the 2004-2005 award year if they do not inform COD School
        Relations of their desire to use the multi-year feature of the
        MPN.

4)  New schools to the Direct Loan program that are eligible for the MY
    feature under the expanded authority for multi-year use of the MPN
    will be defaulted to use the MY feature in the COD System

5)  Multiple loans for a borrower are linked to the same MPN across
    schools and academic years.

6)  A school using the MY feature can use any MPN accepted by the COD
    System (even if that MPN was signed before the effective date of the
    expanded authority for multi-year use of the MPN).

7)  When processing 2002-2003 loan records and forward, COD is aware of
    open MPNs processed by the LOC for program years prior to 2002-2003.

8)  Schools using the MY feature must have a confirmation process in
    place.

> **Note**: For more details regarding a confirmation process, refer to
> the Direct Loan School Guide, Chapter 6 at
> <http://www.ed.gov/DirectLoan/pubs/profpubs.html>.

9)  The COD System allows schools eligible for the MY feature to opt
    between the MY feature and the SY feature.

### Schools Opting for Single-Year MPN Feature

The COD System allows schools eligible for the MY feature to opt between
the MY feature and the SY feature.

[]{.mark}

#### Business Rules:

1)  When a school opts to process MPNs using the MY or SY feature, the
    feature selected applies to all Direct Loans processed by the school
    (Subsidized, Unsubsidized and PLUS loans).

    a.  All loans are processed using the SY feature OR all loans are
        processed using the MY feature.

2)  If an eligible school opts to change the SY/MY feature, the change
    applies only to MPNs received at COD after the change is processed
    on the COD System.

3)  Awards received after the date the option is changed link to an MPN
    using the newly selected option.

4)  Schools must contact COD School Relations to change their SY/MY
    feature.

### Single-Year MPN Feature 

The single-year (SY) MPN feature requires that a new MPN be completed by
a borrower for each academic year. All schools NOT eligible to process
MPNs using the MY feature, must use the SY feature. Schools eligible for
the MY feature may opt to process MPNs using the SY feature as discussed
in the previous section.

#### Business Rules:

1)  The SY feature of the MPN is available to all schools.

2)  All schools NOT eligible to process MPNs using the MY feature must
    use the SY feature. Therefore, the COD System does not allow these
    schools to change this processing feature.

3)  Under SY feature a new MPN must be generated each academic year for
    each student.

4)  A SY school must use an MPN generated at or for that school only.

5)  A SY school can link multiple loans for the same academic year, for
    the same borrower, to the same MPN.

6)  The academic year start and end dates must be the same on all loan
    records linked to a specific MPN under the SY feature.

7)  When a school eligible for the MY feature opts to use the SY
    feature, the school must update their option on the COD web site.

### Single-Loan MPN Feature (PLUS Only)

The single-loan (SL) MPN is an MPN linked to a PLUS loan that is
accepted with an Endorser with an approved credit decision. Once an
Endorser is associated with a PLUS loan, the MPN linked to that PLUS
loan cannot be linked to any other loans even if the school processes
MPNs using the MY feature.

#### Business Rules:

1.  An MPN for a PLUS loan becomes a SL MPN under the following
    conditions:

```{=html}
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```
a.  An endorser is obtained because the borrower has received an adverse
    credit decision,

b.  The award receives an approved credit decision for the endorser, AND

c.  The award is linked to the PLUS MPN.

    1.  When a PLUS Loan with an Endorser is linked to an MPN, the COD
        System returns an MPN Status of Accepted on the Response.
        However, this MPN is flagged by the COD System as a Single Loan
        (SL MPN) so that no further loans can be linked to this note.

    2.  Once a SL MPN is established, it becomes an inactive MPN and no
        other awards will be linked to that same MPN.

    3.  Once a SL MPN is established, all other pending and active PLUS
        MPNs for the borrower become inactive, including the SL MPN.

    4.  When a PLUS loan with an endorser is linked to an MPN, the MPN
        Status displayed on any future ISIRs will be Inactive.

    5.  If the borrower wants to borrow a subsequent PLUS loan a new MPN
        must be generated and signed.

### Master Promissory Note Printing Process

The Master Promissory Note (MPN) printing process is either the
responsibility of the school or the COD System.

#### Business Rules:

1)  Obtaining a signed MPN is either the responsibility of the school or
    the COD System.

    a.  The borrower can complete an e-MPN or a paper MPN.

    b.  For the 2003-2004 award year and forward, a PLUS borrower can
        complete an e-MPN or a paper PLUS MPN for a PLUS Loan.

2)  A borrower can decide to complete an electronic MPN on the eMPN web
    site.

    a.  When a borrower completes the e-MPN process, a Promissory Note
        Response is sent to the appropriate school.

3)  When a school is responsible for the MPN printing process, the
    school or the COD System can print the MPNs.

    a.  Completed MPNs must be mailed to the Promissory Note processing
        center.

    b.  MPNs sent via regular mail should be mailed to the following
        address:

> Common Origination and Disbursement
>
> P.O. Box 5692
>
> Montgomery, AL 36103-5692

c.  MPNs sent via overnight, express, or certified mail should be mailed
    to the following address:

> Common Origination and Disbursement
>
> 474 South Court Street, Suite 400
>
> Montgomery, AL 36104

d.  Upon receipt of MPNs, the notes are screened for completeness.

e.  Incomplete or illegible MPNs are returned to the school for
    correction.

f.  Accepted MPNs generate a Promissory Note Response to be sent to the
    school.

g.  Schools can submit MPNs for COD testing and review by sending them
    to:

> COD-Document Testing
>
> P.O. Box 5691
>
> Montgomery, AL 36103

 

> **Note**: All documents and shipping packages should be clearly marked
> "For Testing Only".

4)  When COD is responsible for the MPN printing process, the MPNs are
    printed by the COD System and mailed to the borrower.

    a.  The borrower returns all completed MPNs to COD.

    b.  Upon receipt of an MPN, the COD System generates and sends a MPN
        Response to the school.

> **Note:** For more details on this response process, refer to the
> topic entitled "Generating an MPN Response".

5)  All MPNs printed by the COD System for all award years are printed
    using the MPN text and format cleared by OMB.

6)  The MPN for PLUS awards contains language authorizing COD to perform
    an initial and subsequent credit checks for the PLUS borrower.
    Additional authorization is not required for subsequent credit
    checks.

7)  COD or a school prints no dollar amount on the MPN.

8)  An MPN ID is generated for each MPN and printed/displayed on the
    MPN. (See below for details of the Sub/Unsub and PLUS MPN ID).

9)  The COD System does not print an MPN if the award is linked to an
    existing Subsidized/Unsubsidized or PLUS MPN already on file at the
    COD System.

#### Business Rules Specific to Printing the Subsidized/Unsubsidized MPN:

1)  The Subsidized/Unsubsidized MPN is printed for all
    Subsidized/Unsubsidized awards for award year 1999-2000 and forward.

2)  The Subsidized/Unsubsidized MPN ID is 21-characters. A
    Subsidized/Unsubsidized MPN ID contains an 'M' in the 10^th^
    position. The components for the Subsidized/Unsubsidized MPN ID are:

    a.  Student's Social Security Number: 001010001--999999998

    b.  MPN Indicator: M

    c.  S or U were used for MPN Indicator for 1999-2000, but is no
        longer valid for printing new MPNs.

    d.  Award Year: 03 and forward

> **Note:** When generating the MPN ID the COD System increments the
> program year in the MPN ID by one each year. For all MPN IDs created
> after the 2004-2005 implementation, the program year in the MPN ID is
> 05.

e.  Direct Loan School Code: X00000--X99999 where X = G or E.

> **Note:** The school code imbedded in the MPN ID continues to be the
> DL school code (G or E code) and does NOT use the Routing Number
> (Common School Identifier).

f.  Award Number: 001--999

```{=html}
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```
3.  The COD System prints an 'M' in the 10^th^ position of the
    Subsidized/Unsubsidized MPN ID.

4.  The MPN ID is used by the COD System to identify which
    Subsidized/Unsubsidized awards are linked to an MPN.

#### Business Rules Specific to Printing the PLUS MPN:

1.  The PLUS MPN prints for all PLUS awards for award year 2003-2004 and
    forward

2.  The PLUS MPN ID is a 21-character ID. A PLUS MPN ID contains an 'N'
    in the 10^th^ position. The components for the PLUS MPN ID are:

```{=html}
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```
a.  Student's Social Security Number: 001010001--999999998

b.  MPN Indicator: N

c.  Award Year: 04 and forward

> **Note:** When generating the PLUS MPN ID the COD System increments
> the program year in the PLUS MPN ID by one each year. For all PLUS MPN
> IDs created after the 2004-2005 implementation, the program year in
> the PLUS MPN ID is 05.

d.  Direct Loan School Code: X00000--X99999 where X = G or E.

> **Note:** The school code imbedded in the MPN ID continues to be the
> DL school code (G or E code) and does NOT use the Routing Number
> (Common School Identifier).

e.  Award Number: 001--999

    3.  The COD System prints an 'N' in the 10^th^ position of the PLUS
        MPN ID.

    4.  The MPN ID is used by the COD System to identify which PLUS
        awards are linked to an MPN.

### Submitting a Promissory Note Print Code

The Promissory Note Print Code identifies at the individual loan level
who is responsible for the printing the MPN for a specific loan and who
can override the school's promissory note print option. This code can
also be used to request the COD System to reprint a promissory note. The
valid values of the Promissory Note Print Code in the Common Record
Layout are "S", "R", "V", "Z", "O", and nil=true.

#### Business Rules:

1)  The school has the option on the COD web site to indicate who is
    responsible, the school or the COD System, for printing promissory
    notes for loans originated by that school.

> **Note:** For more information School Processing Options, refer to
> Volume VIII, Section 6 -- School Processing Options.

2)  The Promissory Note Print Code is an optional data element on the
    Common Record that can be submitted for an individual loan award and
    overrides the selected school option.

3)  The Promissory Note Print Code can also be used to request the COD
    System to reprint a promissory note.

4)  The valid values for the Promissory Note Print Code in the Common
    Record are:

    a.  S = COD Prints and sends to Borrower

    b.  R = COD Prints and sends to School

    c.  V = COD Reprints and sends to School

    d.  Z = COD Reprints and sends to Borrower

    e.  O = School Prints On-site and provides to Borrower

    ```{=html}
    <!-- -->
    ```
    5.  If an award does not contain the Promissory Note Print
        Indicator, the COD System defaults to the option on the school
        profile when processing the award.

    6.  The COD System prints the MPN for Subsidized/Unsubsidized and
        PLUS awards according to the matrix below:

+-------------------------------+---------------------+---------------+
| School option set within COD  | Full Participant:   | COD System    |
| System                        |                     | Prints        |
|                               | Promissory Note     |               |
|                               | Print Indicator     |               |
+-------------------------------+---------------------+---------------+
| School prints                 | S, R, V, or Z       | Yes           |
+-------------------------------+---------------------+---------------+
| School prints                 | O                   | No            |
+-------------------------------+---------------------+---------------+
| School prints                 | nil=true or No tag  | No            |
+-------------------------------+---------------------+---------------+
| COD prints                    | S, R, V, or Z       | Yes           |
+-------------------------------+---------------------+---------------+
| COD prints                    | O                   | No            |
+-------------------------------+---------------------+---------------+
| COD prints                    | nil=true or no tag  | Yes           |
+-------------------------------+---------------------+---------------+

7)  Schools printing Promissory Notes can either

    a.  Print using the appropriate approved form or

    b.  Print all text including data and data labels using the same
        format and wording as the form provided by the Department of
        Education.

> **Note:** Schools printing all text must have the format approved by
> FSA. For more information on the approval process contact COD School
> Relations.

8)  To obtain approved Master Promissory Note and PLUS Master Promissory
    Note forms contact COD Customer Service.

9)  When printing Promissory Notes, it is recommended to use Courier, 10
    point, 12 pitch font.

10) When mailing the MPN, a number 10 business window envelope is
    recommended.

11) The MPN and PLUS MPN print specifications are provided in Volume
    VIII to be provided in a future release.

#### Examples: 

EXAMPLE #1:

A school has sets its option on the COD web site for the School to print
all its own promissory notes. The printer used by the school
malfunctions and cannot be repaired for four weeks.

During this four week period, the school submits all loan records with a
print code of 'R' = COD Prints and sends to School.

EXAMPLE #2:

A school has set its option on the COD web site for COD to print all
promissory notes.

During the registration period, the school opts to print and have the
students complete MPNs on site.

During this registration period, the school submits all loan records
with a print code of 'O' = School prints on-site and provides to the
borrower.

### Linking an MPN to a Direct Loan Subsidized/Unsubsidized or PLUS Award

The COD System links Direct Loan Subsidized/Unsubsidized and PLUS awards
to an active MPN for that Borrower.

#### Business Rules:

1)  When linking an award to an MPN, if multiple valid MPNs exist for a
    student, the award is linked to the MPN with the greatest expiration
    date.

2)  The COD web site will display the MPN expiration date to assist
    schools in determining if the borrower has an active MPN available
    on the COD System

3)  The MPN Expiration Date displays for all MPNs for
    Subsidized/Unsubsidized awards and for PLUS awards.

#### Business Rules Specific to Linking the Subsidized/Unsubsidized MPN:

1)  The COD System links an accepted Subsidized/Unsubsidized award to a
    valid MPN using the following student data elements:

```{=html}
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```
a.  Current SSN,

b.  Date of Birth AND

c.  First two characters of the first name OR the first two characters
    of the last name, if the first name is blank.

> **Note**: Schools should encourage students to list the same
> identifier information (i.e. complete formal name) used to file the
> FAFSA on applications for all types of financial aid. An accepted
> award and valid MPN will not link if the identifier information
> differs on the award and MPN. See EXAMPLE below.

2.  When a Subsidized/Unsubsidized Award is accepted and a valid MPN is
    already on file, the MPN and award are linked.

```{=html}
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```
a.  The MPN Status, MPN Link Indicator, MPN ID and Electronic MPN
    Indicator are generated on an **Award Response**.

    3.  When a Subsidized/Unsubsidized Award is accepted and no valid
        MPN is on file, the award is not linked and the MPN Status Code
        on the Award Response equals R (Rejected MPN or valid MPN not on
        file at COD).

    4.  When a Subsidized/Unsubsidized Award is NOT accepted and if
        there is a valid MPN on file, the Award will not be linked to
        the MPN. The MPN Link Indicator of false and the appropriate MPN
        Status Code (X = Pending or R = Rejected) will be returned in
        the Award Response.

    5.  When an MPN is received and an accepted Subsidized/Unsubsidized
        award is already on file and not yet linked to an MPN, the MPN
        and the award are linked.

        a.  The MPN Status, MPN Link Indicator, MPN ID and Electronic
            MPN Indicator will be generated on a **MPN Response** for
            the Subsidized/Unsubsidized award.

    6.  When an MPN is received and no accepted Subsidized/Unsubsidized
        award is already on file, the MPN is not linked and an
        unsolicited Promissory Note Response is generated.

    7.  If a valid MPN is on file and an accepted
        Subsidized/Unsubsidized award does not link (MPN Status Code =
        X, Pending), the student identifier information on the award
        does not match the student identifier information on the MPN.
        See EXAMPLE below. Schools should compare the student identifier
        information listed on the award and MPN, and perform the
        following actions:

        a.  Update the student identifier information listed on the
            award origination via batch or web.

        b.  Inactivate the loan by reducing the award amount and all
            anticipated disbursements to zero (\$0.00). Originate a new
            award with student identifier information that matches that
            of the MPN.

> ***Example**:*
>
> Student Robert Adams files a FAFSA using his given name. The student
> identifier information Robert lists on the FAFSA is pulled from CPS to
> create a valid MPN. The student identifier information on the MPN is
> as follows:
>
> \<Student SSN=\"**999931101**\" BirthDate=\"**1985-04-15**\"
> LastName=\"**ADAMS**\"\>
>
> \<Identifiers\>
>
> \<SSN\>**999931101**\</SSN\>
>
> \</Identifiers\>
>
> \<BirthDate\>**1985-04-15**\</BirthDate\>
>
> \<Name\>
>
> \<FirstName\>**ROBERT**\</FirstName\>
>
> \<LastName\>**ADAMS**\</LastName\>
>
> \</Name\>
>
> Robert then applies for a loan using his common first name, Bob. The
> student identifier information on the award is as follows:
>
> \<Student SSN=\"**999931101**\" BirthDate=\"**1985-04-15**\"
> LastName=\"**ADAMS**\"\>
>
> \<Identifiers\>
>
> \<SSN\>**999931101**\</SSN\>
>
> \</Identifiers\>
>
> \<BirthDate\>**1985-04-15**\</BirthDate\>
>
> \<Name\>
>
> \<FirstName\>**BOB**\</FirstName\>
>
> \<LastName\>**ADAMS**\</LastName\>
>
> \</Name\>
>
> The COD System attempts to match the student identifier information
> contained on the award with the student identifier information of a
> valid MPN on file at COD. Since the first two letters of the student's
> first name listed on the award do not match the first two letters of
> the student's first name listed on the MPN, the award and MPN do not
> link. The COD System is unable to find the appropriate MPN with which
> to link the award, and returns the MPN Status Code of X (Pending) on
> the Award Response.

#### Business Rules Specific to Linking the PLUS MPN:

1)  The COD System links an accepted PLUS award to a valid MPN using the
    following borrower (parent) and student data elements:

    a.  Current SSN,

    b.  Date of Birth AND

    c.  First two characters of the first name OR the first two
        characters of the last name, if the first name is blank.

> **Note**: Schools should encourage both parents and students to list
> the same identifier information (i.e. complete formal names) used to
> file the FAFSA for a PLUS loan application. An accepted award and
> valid PLUS MPN will not link if either the borrower or student
> identifier information on the award differs from that on the PLUS MPN.
> See EXAMPLE below.

2.  Regardless of whether the award is linked or not linked to an MPN, a
    PLUS Award Response is not sent to a school until a credit decision
    status (Accepted, Pending or Denied) is received.

    a.  If the credit decision for a PLUS award is pending or denied,
        the MPN Status on the Award Response equals R (Rejected MPN or
        valid MPN not on file at COD), even when there is a valid MPN.

    b.  If the credit decision for a PLUS award is accepted, the MPN
        Status on the Award Response is either 'MPN on file' or 'MPN not
        on file' depending on whether there is a valid MPN on file at
        COD.

3.  When a PLUS Award with a positive credit decision is accepted and a
    valid PLUS MPN is already on file, the PLUS MPN and PLUS award are
    linked.

    a.  The MPN Status, MPN Link Indicator, MPN ID and Electronic MPN
        Indicator are generated on an Award Response for the PLUS award.

4.  When a PLUS Award with a positive credit decision is NOT accepted
    and a valid PLUS MPN is already on file, the PLUS MPN and PLUS Award
    are not linked.

```{=html}
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```
a.  The MPN Link Indicator of false and the appropriate MPN Status Code
    (X = Pending or R = Rejected) will be returned in the Award Response

    2.  When a positive credit decision is received for an Endorser and
        an accepted award and accepted MPN (one that is not yet linked
        to any awards) is already on file, the award is linked to the
        PLUS MPN and the PLUS MPN becomes a Single-Loan MPN.

> **Note:** Please refer to the topic entitled "Single-Loan MPN" for
> more information.

a.  The PLUS MPN Status, MPN Link Indicator, MPN ID, Electronic MPN
    Indicator and Endorser Amount, if applicable, are sent to the school
    on a **PLUS Credit Decision Override Response** and an unsolicited
    MPN Response is NOT generated.

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```
6)  When a PLUS MPN is received and an accepted award with a positive
    credit decision is already on file and not yet linked to an MPN, the
    PLUS MPN and the PLUS award are linked.

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```
a.  The MPN Status, MPN Link Indicator, MPN ID, and Electronic MPN
    Indicator are sent to the school on a **MPN Response**.

```{=html}
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```
7)  If a valid PLUS MPN already on file does not link to an accepted
    award with a positive credit decision, the student and/or borrower
    identifier information on the award does not match the student
    and/or borrower identifier information on the PLUS MPN. See EXAMPLE
    below. Schools should compare all identifier information listed on
    the award and PLUS MPN, and perform the following actions:

```{=html}
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```
a.  Update the student and/or borrower identifier information listed on
    the award origination via batch or web.

b.  Inactivate the loan by reducing the award amount and all anticipated
    disbursements to zero (\$0.00). Originate a new award with student
    identifier information that matches that of the MPN.

> ***Example**:*
>
> Parent William Adams decides to take out a PLUS loan for his son
> Robert. William and Robert file a FAFSA and lists William's given
> name. The borrower identifier information on the PLUS MPN is as
> follows:
>
> \<Borrower SSN=\"**123456789**\" BirthDate=\"**1952-05-19**\"
> LastName=\"**ADAMS**\"\>
>
> \<Identifiers\>
>
> \<SSN\>**123456789**\</SSN\>
>
> \</Identifiers\>
>
> \<BirthDate\>**1952-05-19**\</BirthDate\>
>
> \<Name\>
>
> \<FirstName\>**WILLIAM**\</FirstName\>
>
> \<LastName\>**ADAMS**\</LastName\>
>
> \</Name\>
>
> William then applies for a PLUS loan using his common first name,
> Bill. The borrower identifier information on the award is as follows:
>
> \<Student SSN=\"**123456789**\" BirthDate=\"**1952-05-19**\"
> LastName=\"**ADAMS**\"\>
>
> \<Identifiers\>
>
> \<SSN\>**123456789**\</SSN\>
>
> \</Identifiers\>
>
> \<BirthDate\>**1952-05-19**\</BirthDate\>
>
> \<Name\>
>
> \<FirstName\>**BILL**\</FirstName\>
>
> \<LastName\>**ADAMS**\</LastName\>
>
> \</Name\>

The COD System attempts to match the borrower identifier information
contained on the award with the borrower identifier information of a
valid PLUS MPN on file at COD. Since the first two letters of the
borrower's first name on the award do not match the first two letters of
the borrower's first name listed on the PLUS MPN, the award and PLUS MPN
do not link. The COD System is unable to find the appropriate PLUS MPN
with which to link the award, and returns the MPN Status Code of X
(Pending) on the Award Response.

#### Multi-Year (MY) Feature Linking Business Rules:

1)  The MY feature allows multiple awards for different academic years
    from the same or different MY schools to link to the same MPN.

2)  The COD System applies the MY feature only to schools eligible for
    the MY feature.

3)  When the borrower has more than one MPN on file with the same
    expiration date, the COD System links incoming awards to the MPN
    with the latest received date by the COD System (when the receive
    dates are different).

4)  The COD System links the award to the MPN only if the Award Begin
    Date on the award is prior to or equal to the MPN expiration date.

5)  An inactive or closed MPN is no longer eligible for processing. This
    means no other awards can be linked to the MPN once it is inactive
    or closed.

    a.  The exception to this rule would be if an award is received with
        an Award Begin Date prior to the MPN expiration date and the
        award is NOT inactive due to a pending bankruptcy discharge or
        an unauthorized signature discharge. Then, the award will be
        linked to the MPN; however, the MPN remains inactive.

#### Single-Year (SY) Feature Linking Business Rules:

1)  The SY feature allows one or more PLUS awards with the same academic
    year from the same school to link to the same PLUS MPN.

2)  PLUS awards from the same school with different academic years may
    not be linked to the same PLUS MPN.

3)  The SY feature allows one or more subsidized and unsubsidized awards
    with the same academic year from the same school to link to the same
    MPN.

4)  Subsidized/Unsubsidized awards from the same school with different
    academic years may not be linked to the same MPN.

5)  The COD System must match the Direct Loan School Code on the Award
    ID with the school code in the 21-character MPN ID.

6)  For the purpose of linking, the COD System establishes the academic
    year period used for an MPN to be the academic year start and end
    dates of the first award linked to the MPN.

7)  The COD System links subsequent awards to the MPN if the academic
    year start and end dates are the same as those of the first award
    linked to the MPN.

#### Single-Loan MPN Linking Business Rules (for PLUS only):

1)  A PLUS MPN becomes a single-loan MPN under the following conditions:

    a.  The PLUS MPN has no other awards linked to it,

    b.  An endorser is obtained because the borrower has received an
        adverse credit decision,

    c.  The award receives an approved credit decision for the endorser,
        and

    d.  The award is linked to the PLUS MPN.

2)  Once a single-loan MPN is established, no other awards are linked to
    that same MPN.

3)  The expiration date for a single-loan MPN is the date that the COD
    System assigns the single-loan flag to the MPN.

4)  Once a single-loan MPN is established, all other pending and active
    PLUS MPNs for the borrower become inactive, including the SL MPN.
    Thus, if the borrower wants to borrow a subsequent PLUS loan a new
    MPN must be generated and signed.

5)  The COD System rejects with error code 113 any disbursements that
    exceeds the endorser amount on the award linked to a single-loan MPN
    since the endorser is responsible for no more than the PLUS Loan
    amount on the Endorser Addendum.

6)  On an award linked to a single-loan MPN, the Award Amount can be
    decreased.

> **Note:** Once a PLUS award is linked to a single-loan MPN, the COD
> System must receive a new PLUS MPN and a new award, provided all other
> linking criteria are satisfied, in order to accept an increase to the
> amount the parent wants to borrow.

7)  The COD System sends to the PLUS borrower with a denied credit
    decision an Endorser Addendum and a new PLUS MPN unless a pending
    PLUS MPN is on file. (A pending MPN is one that is not yet linked to
    an award.)

8)  If the borrower elects to have an endorser, a PLUS MPN is needed on
    file to link the award to once the endorser is approved. When the
    award is linked, the MPN becomes a single-loan MPN.

9)  If the borrower elects to have an endorser, the award can be linked
    to the pending PLUS MPN once an approved endorser credit decision is
    received.

**Generating an Expiration Date for an MPN**

The MPN expiration date calculation performed by the COD System for all
MPNs is based on MPN expiration date regulations.

#### Business Rules:

1)  For a pending MPN (one that does not yet have an award linked to
    it), the expiration date is calculated as the date the MPN is
    received by COD for processing plus 1 year.

2)  For an MPN that has been linked but has no award with an accepted
    actual disbursement, the expiration date is calculated as the date
    the MPN is received by COD for processing plus 1 year.

3)  For an MPN that has been linked and has at least one award with an
    accepted actual disbursement, the expiration date is calculated as
    the date the MPN is received by COD for processing plus 10 years.

4)  The MPN expiration date and the date an MPN is received by COD are
    viewable on the COD web site.

5)  The COD System accepts a disbursement with a Disbursement Release
    Indicator = true for any award linked to an MPN even if the MPN has
    expired only when the following two conditions are met:

    a.  The award is already linked to the MPN and

    b.  The disbursement successfully passes all other disbursement
        edits for being accepted by the COD System.

6)  The COD System accepts disbursements for any award already linked to
    an expired MPN provided the disbursement passes all other edits.

    a.  If the accepted disbursement is the first actual disbursement
        under the MPN and the date of that disbursement is on or before
        the MPN expiration date, the MPN expiration date is recalculated
        using the date the MPN was received at COD for processing plus
        10 years and the MPN is reactivated (Accepted Status).

    b.  If the accepted disbursement is the first actual disbursement
        under the MPN and the date of that disbursement is after the MPN
        expiration date, the MPN expiration date remains unchanged and
        the MPN status remains inactive.

    c.  If an accepted subsequent disbursement is not the first actual
        disbursement under the MPN, the MPN expiration date remains
        unchanged and the MPN status stays the same.

### Closing MPNs

To close an MPN (Subsidized/Unsubsidized or PLUS) a borrower must send a
written request to the Direct Loan Servicing. The Direct Loan Servicing
passes this request to the COD School Relations Center. If a school
requests a written request from a borrower, the request should be sent
to the COD School Relations Center. The borrower must put their request
in writing.

#### Business Rules:

1)  Upon receipt of a written request from the borrower:

    a.  COD Customer Service manually closes an MPN via the COD web
        site.

    b.  When an MPN is closed, a confirmation letter is sent to the
        borrower.

2)  No new awards can be linked to a closed MPN.

3)  Awards that are already linked to a closed MPN can continue to use
    that MPN for the disbursement processing.

4)  A closed MPN is reopened by the COD System only if the MPN was
    closed in error by COD.

5)  An MPN that is reopened goes back to the MPN Status to which the
    note was assigned prior to being closed.

### Generating a Master Promissory Note Response

A Master Promissory Note Response is generated by COD and sent to a
school to provide the status of an MPN for Subsidized/Unsubsidized and
PLUS loans.

#### Business Rules:

1)  An MPN Response provides the status of an MPN.

2)  Upon receipt of a paper or electronic MPN, COD sends an MPN
    Response.

    a.  If an MPN is received and there is no award on file to link to
        the MPN (an unsolicited MPN), the COD System sends an
        unsolicited MPN Response to the school indicated in the MPN ID.

    b.  If an MPN is received and an award is on file to link to the
        MPN, the COD System sends the MPN response to the Attending
        School on the Award.

3)  A COD system-generated MPN Response contains a Document Type of
    "PN." The Document Type indicates the type of Response.

4)  A Response Document of Document Type "PN" contains a
    system-generated Document ID.

5)  An MPN Response contains the following data elements in the Response
    complex element \<Response\>:

```{=html}
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```
a.  Document Status, \<DocumentStatusCode\>

b.  Document Type, \<DocumentTypeCode\>

c.  Processing Date, \<ProcessDate\>

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```
6)  In addition, the following data elements are in the MPN Response:

    a.  Award ID, \<AwardID\>

    b.  MPN Status, \<MPNStatusCode\>

    c.  MPN Link Indicator, \<MPNLinkIndicator\>

    d.  MPN ID, \<MPNID\>

    e.  Electronic MPN Indicator \<EMPNIndicator\> is part of the
        Response if an electronic MPN is filed by the borrower.

7)  An MPN Response is generated by the COD System when a paper or
    electronic MPN is linked to an accepted loan award OR for pending
    notes.

8)  A Pending MPN is an accepted MPN, which cannot yet be linked with a
    loan award record. (No accepted Origination record on file). In some
    cases, this situation is created by an e-MPN or when an award is
    rejected.

#### An e-MPN Indicator= "true" on an MPN Response identifies that the loan has been linked to an e-MPN. 

#### Example: 

Below is a sample **MPN Response** where an e-MPN was not filed by the
borrower:

\<CommonRecord\>

\<DocumentID\>2004-07-10T09:09:09.0012345678\</DocumentID\>

\<CreatedDateTime\>2004-07-10T17:20:01.00\</CreatedDateTime\>

\<Source\>

\<COD EntityID=\"00000001\"/\>

\</Source\>

\<Destination\>

\<School EntityID=\"00000632\"/\>

\</Destination\>

\<FullResponseCode\>F\</FullResponseCode\>

\<ReportingSchool EntityID=\"00000632\"\>

\<AttendedSchool EntityID=\"00000632\"\>

\<Student SSN=\"123456789\" BirthDate=\"1972-01-01\"
LastName=\"SMITH\"\>

\<DLUnsubsidized\>

\<FinancialAwardYear\>2005\</FinancialAwardYear\>

\<LoanKey\>01\</LoanKey\>

\<NoteMessage\>722411\</NoteMessage\>

\<FinancialAwardID\>123456789U05G12345001\</FinancialAwardID\>

\<Response\>

\<ResponseCode\>A\</ResponseCode\>

\<EMPNIndicator\>False\</EMPNIndicator\>

\<MPNID\>123456789M04G12345001\</MPNID\>

\<MPNStatusCode\>A\</MPNStatusCode\>

\<MPNLinkIndicator\>True\</MPNLinkIndicator\>

\</Response\>

\</DLUnsubsidized\>

\<Response\>

\<ResponseCode\>A\</ResponseCode\>

\</Response\>

\</Student\>

> \<Response\>

\<ResponseCode\>A\</ResponseCode\>

\</Response\>

\</AttendedSchool\>

> \<Response\>

\<ResponseCode\>A\</ResponseCode\>

\</Response\>

\</ReportingSchool\>

\<Response\>

\<DocumentTypeCode\>PN\</DocumentTypeCode\>

\<DocumentStatusCode\>A\</DocumentStatusCode\>

\<ProcessDate\>2004-07-15\</ProcessDate\>

\</Response\>

\</CommonRecord\>

#### 

## Direct Loan PLUS Credit Check 

### Requesting a PLUS Credit Decision 

Schools can request a PLUS Credit Decision on the COD web site.

#### Business Rules:

1)  The COD web site provides the ability for schools to request a
    credit decision for a PLUS loan borrower.

2)  Results of the credit decision request are displayed on the COD web
    site.

3)  If a credit check has been performed on the borrower within 90 days
    of the current date, the COD web site does not perform a subsequent
    credit check.

4)  PLUS Borrowers can appeal an adverse credit decision.

### Credit Decision Appeal Process

Historically, PLUS borrowers have had the ability to appeal an adverse
credit decision when applying for a PLUS loan through the Loan
Origination Center (LOC). This process continues for the 2003-2004 award
year and forward with the exception of the appeals being processed
through the Common Origination and Disbursement (COD) System.

#### Business Rules:

1)  The COD School Relations Center manages the credit decision appeal
    process for the COD System.

2)  The credit decision appeal process has not changed from prior years
    with the exception that all credit decision appeals process
    documentation should be mailed to:

> US Department of Education
>
> COD School Relations Center
>
> Attn: Applicant Services
>
> PO BOX 9002
>
> Niagara Falls, NY 14302

3)  The COD System allows a subsequent credit check to be performed for
    a borrower within 90 days of an adverse credit decision when
    authorized by a credit decision appeal process.

### Generating Credit Decision Override Responses

When a PLUS borrower requests a credit decision override or submits an
Endorser Addendum, a Credit Decision Override Response is generated by
the COD System and sent to the school. This response provides the credit
decision status of the override or endorser.

#### Business Rules:

1)  A Credit Decision Override Response is generated by the COD System
    and sent to a school to provide the status of a credit override or
    the credit decision results of an endorser.

2)  A COD system-generated Credit Decision Override Response contains a
    Document Type of "CO." The Document Type indicates the type of
    Response.

3)  A Response Document of Document Type "CO" contains a
    system-generated Document ID.

4)  A Credit Decision Override Response contains the following data
    elements in the Response complex element \<Response\>:

```{=html}
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```
a.  PLUS Credit Decision Override Code, \<CreditOverrideCode\>

b.  PLUS Credit Decision Date, \<CreditDecisionDate\>

c.  Document Type Code, \<DocumentTypeCode\>

d.  Process Date, \<ProcessDate\>

e.  MPN Status Code, \<MPNStatusCode\>

f.  MPN ID, \<MPNID\>

g.  MPN Link Indicator, \<MPNLinkIndicator\>

h.  EMPN Indicator, \<EMPNIndicator\> (only if eMPN)

i.  Endorser Amount, \<EndorserAmount\> (only if endorser exists on
    loan)

> 5\) The Endorser Amount has been added to the PLUS Credit Decision
> Response to indicate the endorsed amount on the Endorser Addendum.

a.  The Endorser Amount indicates the total amount of PLUS loan for
    which the endorser has agreed to co-sign.

b.  The sum of the disbursements for a PLUS loan with an endorser cannot
    be greater than the Endorser Amount.

#### Example: 

Below is a sample Credit Decision Override Response:

\<CommonRecord\>

\<DocumentID\>2004-07-11T09:09:09.0012345678\</DocumentID\>

\<CreatedDateTime\>2004-07-11T09:09:09.00\</CreatedDateTime\>

\<Source\>

\<COD EntityID=\"00000001\"/\>

\</Source\>

\<Destination\>

\<School EntityID=\"00000632\"/\>

\</Destination\>

\<FullResponseCode\>F\</FullResponseCode\>

\<ReportingSchool EntityID=\"00000632\"\>

\<AttendedSchool EntityID=\"00000632\"\>

\<Student SSN=\"123456789\" BirthDate=\"1972-01-01\"
LastName=\"SMITH\"\>

\<DLPLUS\>

\<FinancialAwardYear\>2005\</FinancialAwardYear\>

\<NoteMessage\>722411\</NoteMessage\>

\<FinancialAwardNumber\>001\</FinancialAwardNumber\>

\<FinancialAwardID\>123456789P05G12345001\</FinancialAwardID\>

\<Borrower SSN=\"123456789\" BirthDate=\"1970-01-01\"
LastName=\"SMITH\"/\>

\<Response\>

\<ResponseCode\>A\</ResponseCode\>

\<CreditDecisionDate\>2004-07-11\</CreditDecisionDate\>

\<CreditOverrideCode\>C\</CreditOverrideCode\>

\</Response\>

\</DLPLUS\>

\<Response\>

\<ResponseCode\>A\</ResponseCode\>

\</Response\>

\</Student\>

> \<Response\>

\<ResponseCode\>A\</ResponseCode\>

\</Response\>

\</AttendedSchool\>

> \<Response\>

\<ResponseCode\>A\</ResponseCode\>

\</Response\>

\</ReportingSchool\>

\<Response\>

\<DocumentTypeCode\>CO\</DocumentTypeCode\>

\<DocumentStatusCode\>A\</DocumentStatusCode\>

\<ProcessDate\>2004-07-11\</ProcessDate\>

\</Response\>

\</CommonRecord\>

## Direct Loan Entrance/Exit Interview 

### Requesting an Entrance Counseling File/Report

See Volume VIII, Section 8 -- COD Reports

### Requesting an Exit Counseling File/Report

See Volume VIII, Section 8 -- COD Reports

### Direct Loan Closeout

The COD System provides the ability for schools to perform end of
program year closeout activities for award year 2002-2003 and forward.

#### Business Rules:

1)  The COD System generates a (Zero) Balance Confirmation Letter based
    on the greatest loan period end date for all Direct Loan awards for
    that school within a specific award year.

    a.  This letter includes the following variables:

        i.  Net Loan Detail

        ii. Ending Cash Balance

        iii. Unbooked Loan Amount

        iv. Latest Loan Period End Date reported by the school for the
            award year.

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b.  This letter informs the school that if the school is not finished
    processing, they need to be aware that they are at least X number of
    days, or 90 days, past their latest reported loan period end date.

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```
2)  The COD System sends via email the (Zero) Balance Confirmation
    Letter to the schools:

    a.  This letter is sent via email to the Financial Aid Administrator
        of those schools that have a valid email address on file.

    b.  The COD System records the receipt of the email when it is
        received by the school as well as when the email has been read
        by the Financial Aid Administrator.

    c.  If the email address comes back as undeliverable, a letter is
        sent to the Financial Aid Administrator.

    d.  If there is no email address, a letter is sent to the Financial
        Aid Administrator.

3)  When the school indicates a Yes, that they agree with the Balance
    Confirmation Letter that they have a zero balance, the COD System
    does the following:

    a.  Updates a flag indicating that the school has completed
        processing for the specific award year.

    b.  Generates and sends a Program Year Closeout letter to the school
        confirming that the school has agreed that the balances given on
        the Balance Confirmation Letter are true, the balances have not
        changed, and the school is now considered to be closed out for
        the requested program and award year.

        i.  This is a paper letter addressed to the President of the
            school with a copy sent to the Financial Aid Director.

    c.  Discontinues transmission of school level reports for that
        program and award year.

4)  Reduces the school's CFL for that program and award year to the
    Amount of Total Net Cash.

5)  When the school indicates a No, that they disagree with the balances
    in the Balance Confirmation Letter, the COD System regenerates the
    (Zero) Balance Confirmation Letter after X number of future days as
    specified by FSA.

6)  Once the school has been closed out for a specific award year, the
    COD System does not accept award, disbursement, or change records
    from that school for that award year.

7)  Once the school has been closed out for a specific award year, the
    school is unable to draw down additional funds for that program and
    award year.

## Pell Grant Award and Disbursement Process 

### Pell Grant Correction Edits can be Treated as Rejects

The COD System provides an option for the processing of Pell Grant data
that allows schools to choose if they want to accept corrections to the
Pell Grant data they submit to the COD System, or if they would rather
have the data rejected.

#### Business Rules:

1)  Schools may select an option to have Pell Grant data that fails
    edits rejected rather than receive corrections for that data.

2)  This option applies to all edits that are marked as an Edit Type C/R
    in Volume II, Section 4 -- Full Participant Edit Comment Codes and
    Descriptions within this Technical Reference.

3)  Both corrections and rejections utilize the same edit number to
    indicate which edit was set; the Response Indicator differentiates
    between corrected and rejected.

4)  When returning Response Document files, the COD System returns an
    edit code, the field it pertains to and the value submitted for
    rejected data

5)  When returning Response complex elements, the COD System returns an
    edit code, the field to which it pertains, and the corrected value.

6)  Unless the School contacts the COD School Relations Center to change
    this option, the COD System will correct their data.

### Reporting Pennies in the Award and Disbursement Amount Data Elements

The Award and Disbursement Amounts on the Common Record may include
pennies. In the Pell Grant Program, pennies can be reported as partial
dollars or two zeros.

#### Business Rules:

1)  The data elements for Award and Disbursement Amounts on the Common
    Record may include two digits to the right of a decimal point.

2)  When the reported amount does not include a decimal point, the COD
    System infers a decimal point and two zeros to the right of the last
    digit reported. For example, if a school reports 1000, the COD
    System infers a decimal and two zeros and stores as 1000.00.

3)  In the Pell Grant Program, schools may report partial dollars
    **(3500.32)** OR zeros in the last two digits **(3500.00)** for
    Award Amount and Disbursement Amount

> OR

4)  Report the whole dollar amount only **(3500)** and the COD System
    infers the decimal point and two zeros and stores as **(3500.00)**.

5)  The Award and Disbursement Amount data elements are:

    a.  Award Amount, \<FinancialAwardAmount\>

    b.  Disbursement Amount, \<DisbursementAmount\>

6)  When performing edits on the Award Amount, COD calculates the Pell
    Award Amount using the data provided by the school. If the COD
    calculated Award Amount contains partial dollar amounts, COD rounds
    up this Award Amount to the next whole dollar amount. This is the
    COD calculated Award Amount. COD compares the COD calculated Award
    Amount to the Award Amount \<FinancialAwardAmount\> reported by the
    school.

    a.  If the school reported Award Amount is less than or equal to the
        COD calculated Award Amount, COD accepts the Award Amount.

    b.  If the school reported Award Amount is greater than the COD
        calculated Award Amount, COD either:

        i.  Rejects the school reported Award Amount, if the school has
            selected the option to have its Pell data rejected

> OR

ii. Corrects the school reported Award Amount, if the school has
    selected the option to have its Pell data corrected.

#### Example: 

When reporting a Pell Grant Award Amount of \$1250.34:

1\) Include the decimal point and two digits to the right: 1250.34

> OR

2\) Include the decimal point and two zeroes to the right: 1250.00

> OR

3\) Omit the decimal point and report the whole dollar amount only: 1250

Then, the COD System infers a decimal and two zeros and stores
1250**.**00.

*DO NOT **submit 125000 as the COD System infers a decimal and stores
this submission as 125000.00. ***

### Establishing Pell Grant Award Information 

Award information submitted to the COD System for a student from a
specific Attended School applies to the entire award year for that
student.

#### Business Rules:

1)  The COD System establishes only one set of Pell Grant Award
    information per Attended School Entity ID per student per award
    year.

```{=html}
<!-- -->
```
a.  The first submission of Award information that is accepted by the
    COD System establishes the Pell Grant award for the student for that
    Attended School Entity ID for that award year.

b.  Subsequent submissions of Award information for that student,
    Attended School Entity ID, and award year are treated as an update
    to the original accepted data.

```{=html}
<!-- -->
```
2)  Pell Grant Award Amounts that establish the award cannot be zero on
    first submission.

3)  For the 2004-2005 award year and forward, the following data
    elements are optional for establishing a Pell Grant Award:

    a.  Academic Calendar Code

    b.  Payment Methodology Code

    c.  Weeks Used Calculate

    d.  Weeks Program Academic Year

    e.  Hours Award Year

    f.  Hours Program Academic Year

> **Note**: The COD System will **not** edit on these fields. All data
> submitted in these fields will be ignored by the COD System.

4)  For the 2004-2005 award year and forward, the COD System will
    calculate the Scheduled Federal Pell Grant for both the Regular and
    Low Tuition Payment Schedules using the 'Fulltime' Pell Payment
    Schedule.

5)  For the 2002-2003 and 2003-2004 award years, the COD System uses the
    CPS Transaction Number submitted with the Award information to pull
    the EFC reported for the student from the CPS and determine the
    student's Scheduled Federal Pell Grant. The Scheduled Federal Pell
    Grant and the student's Percentage of Eligibility Used at any other
    Attended campus(es) is used to determine the student's maximum Award
    Amount for the entire award year.

6)  The CPS Transaction Number reported in the Award information applies
    to all Pell Grant transactions for that award year.

7)  The COD System uses the Scheduled Federal Pell Grant Payment and
    Disbursement Schedules, including the Low Tuition Payment and
    Disbursement Schedules, to calculate the Scheduled Award and
    validate the Award Amounts.

> **Note:** Refer to Volume VIII, Section 3 - Pell Calculations Table
> within this Technical Reference for the data elements and calculations
> that apply according to the Payment Methodology used by the School.

8)  If the Award Amount for the entire award year reported for the
    student exceeds the maximum Award Amount determined by the COD
    System, COD either corrects or rejects the Award Amount depending on
    the school's selected option.

    a.  If rejected, the School must determine the correct Award Amount
        and resubmit to the COD System.

> **Note:** Refer to the Pell Correction Edits to Be Treated as
> Rejection Edits section for more information.

9)  If the Award information for a student changes, the School must
    submit the change to the COD System within 30 days of the date the
    School becomes aware of the change, or by the established Pell Grant
    reporting deadline, whichever comes first.

10) The COD System does not use the Award information to establish or
    adjust a school's Pell Grant CFL. Only Disbursement information
    submitted with a Disbursement Release Indicator set to "true" can
    change a school's Pell Grant CFL.

11) The COD System does not accept new Award information or increases to
    Award information after the established student award data
    submission deadline (September 30, 2005) unless the school has been
    granted extended processing from this deadline, has received relief
    from this deadline via the Audit process, or is resubmitting a
    disbursement reduced by COD for a POP situation.

12) The COD System always accepts Award information decreases until the
    award year shut down (September 30, 2009).

### Disbursement Sequence Number Required on all Disbursements 

A Disbursement Sequence Number must be reported for all disbursements.
This is an indicator of a single transaction associated with a specific
disbursement number.

#### Business Rules:

1)  The Disbursement Sequence Number determines the order in which the
    transaction must be processed for a given Disbursement Number.

2)  The Disbursement Sequence Number must be reported in an incremental,
    ascending order.

3)  The Disbursement Sequence Number valid values range from 01-99.

    a.  Disbursement Sequence Numbers 01-65 are reported by schools.

    b.  Disbursement Sequence Numbers 66-90 are reserved for COD
        system-generated adjustments to disbursements and disbursement
        information submitted online via the COD web site.

    c.  Disbursement Sequence Numbers 99-91 are reserved for Direct Loan
        Payment to Servicer transactions (in descending order).

4)  The Disbursement Sequence Number must be reported as "01" when the
    Disbursement Release Indicator is set to "false".

5)  Duplicate Disbursement Sequence Numbers for the same Disbursement
    Number when the Disbursement Release Indicator is set to "true" are
    considered duplicate disbursement transactions.

6)  When resubmitting a disbursement transaction that was rejected, the
    resubmission must use the same Disbursement Sequence Number that was
    rejected.

7)  The \<DisbursementSequenceNumber\> tag is returned in the
    disbursement response complex element in all Full or Standard Common
    Record Responses.

8)  The tag \<PreviousSequenceNumber\> is returned in all Common Record
    disbursement response complex elements, including COD
    system-generated "ND", "PS", and "WB" responses, to indicate the
    previous accepted Disbursement Sequence Number on the COD System for
    this Disbursement Number.

### Disbursement Release Indicator

The Disbursement Release Indicator, formerly known as the Payment
Trigger tag, is used to identify disbursements that are used to
substantiate cash that has been drawn down or may lead to a change in
the CFL.

#### Business Rules:

1)  Disbursement information is submitted to the COD System with a
    Disbursement Release Indicator equal to "true" or "false."

2)  Disbursements with a Disbursement Release Indicator set to "false"
    do NOT change the CFL. False indicates anticipated disbursement
    information.

3)  Disbursements with a Disbursement Release Indicator set to "true"
    may change the CFL. True indicates actual disbursement information.

4)  If the Disbursement Release Indicator is omitted from the Common
    Record, the COD System sets it to "false."

5)  Depending on the funding method employed by the school, the COD
    System may accept Disbursement information with Disbursement Release
    Indicator set to "true" in advance of, on, or after the disbursement
    date.

> **Note:** Refer to the topic entitled "Submitting Pell Grant
> Disbursement Information and Disbursement Release Indicator" for more
> information.

6)  If the Disbursement Release Indicator is set to "true," the
    disbursement is processed only if the required tags in the
    Disbursement complex element are complete.

> **Note:** For information on the required tags in the Disbursement
> complex element, refer to the topic entitled "Minimum Data Elements
> Required for Document Processing".

7)  A Disbursement Release Indicator set to "true" cannot be updated to
    "false."

8)  To make an adjustment to an accepted and posted actual disbursement,
    the Disbursement Release Indicator must be set to "true".

> **Note:** Refer to topic entitled "Updating and Adjusting Pell Grant
> Disbursement Amounts and Dates" for more information.

9)  The Disbursement Release Indicator can be updated and disbursements
    can be generated, updated and adjusted on the COD web site.

### Submitting Pell Grant Disbursement Information and Disbursement Release Indicator

The COD System can accept Pell Grant Disbursement information in advance
of, on, or after the disbursement date.

#### Business Rules:

1)  Disbursement Date is defined as the date cash was credited to the
    student's account or paid to the student directly.

2)  The COD System must accept an Award Amount greater than zero (\$0)
    before it can accept Disbursement information for that student.

> **Note:** Award and Disbursement information can be submitted and
> accepted in the same transmission.

3)  A student can have up to 20 disbursements (Numbers 1-20)

4)  Pell Grant Disbursement Amounts cannot be zero on first submission.

5)  When reporting a change to the COD System, replacement Disbursement
    Amounts must be reported rather than an adjustment to the existing
    Disbursement Amount.

> **Note:** Refer to the topic entitled "Updating and Adjusting Pell
> Grant Disbursement Amounts and Dates" for more information.

6)  Disbursement Date may range from 2004-06-21 (June 21, 2004) to
    2009-09-30 (September 30, 2009).

7)  The COD System accepts Disbursement information with downward
    adjustments through 2009-09-30 (September 30, 2009).

    a.  The required data elements for a Pell Grant anticipated
        disbursement are:

```{=html}
<!-- -->
```
i.  Disbursement Number, \<Disbursement Number= \" \"\>

ii. Disbursement Amount, \<DisbursementAmount\>

iii. Disbursement Date, \<DisbursementDate\>

iv. Disbursement Release Indicator set to "false",
    \<DisbursementReleaseIndicator = "false"\>

```{=html}
<!-- -->
```
b.  The required data elements for an actual Pell Grant disbursement
    are:

    i.  Disbursement Number, \<Disbursement Number= \" \"\>

    ii. Disbursement Amount, \<DisbursementAmount\>

    iii. Disbursement Date, \<DisbursementDate\>

    iv. Disbursement Release Indicator set to "true,"
        \<DisbursementReleaseIndicator = "true"\>

    v.  Disbursement Sequence Number, \<DisbursementSequenceNumber\>

c.  Pell Grant CFL changes, if applicable, are driven by:

```{=html}
<!-- -->
```
i.  Disbursement Date, \<DisbursementDate\>

ii. Disbursement Release Indicator set to "true,"
    \<DisbursementReleaseIndicator = "true"\>

```{=html}
<!-- -->
```
d.  Depending on the funding method employed by the school, the COD
    System may accept Disbursement information in advance of, on, or
    after the disbursement date.

e.  Schools designated as Advanced Funded may submit a Disbursement
    Release Indicator set to "true" up to 30 calendar days before the
    Disbursement Date.

    i.  If the current date exceeds 30 calendar days before the
        Disbursement Date and the Disbursement Release Indicator is set
        to "true," the COD System rejects the disbursement with error
        code 051.

    ii. If the current date is within eight (8) to 30 calendar days
        before the Disbursement Date and the Disbursement Release
        Indicator is set to "true," the COD System accepts the
        disbursement, but does not post the disbursement until seven (7)
        calendar days before the Disbursement Date.

    iii. If the current date is within seven (7) calendar days before
         the Disbursement Date and the Disbursement Release Indicator is
         set to "true", the COD System accepts and posts the
         disbursement.

f.  Schools designated as Pell Pushed Cash or Just-In-Time and/or placed
    on Cash Monitoring 1 (HCM1) review status by Case Management may
    submit a Disbursement Release Indicator set to "true" up to 7
    calendar days before the disbursement date.

    i.  If the current date exceeds seven (7) calendar days before the
        Disbursement Date and the Disbursement Release Indicator is set
        to "true," the COD System rejects the disbursement with error
        code 051.

    ii. If the current date is within seven (7) calendar days before the
        Disbursement Date and the Disbursement Release Indicator is set
        to "true," the COD System accepts and posts the disbursement.

g.  Schools designated as in the Reimbursement or Cash Monitoring 2
    (HCM2) review status can submit a Disbursement Release Indicator set
    to "true" if the current date is equal to or after the Disbursement
    Date.

    i.  If the current date is before the Disbursement Date and the
        Disbursement Release Indicator is set to "true", the COD System
        rejects the disbursement with error code 051.

    ii. If the current date is equal to or after the Disbursement Date
        and the Disbursement Release Indicator is set to "true," the COD
        System accepts and posts the disbursement upon review of
        documentation by Case Management.

#### Example for Schools Designated as Advanced Funded:

+-------+--------+-------+---------+---------+---------+-------------+
| > *   | **     | **Seq | **Disbu | **Disbu | **Disbu | **Result**  |
| *Date | Disbur | uence | rsement | rsement | rsement |             |
| > S   | sement | Num   | Date**  | A       | Release |             |
| ent** | Nu     | ber** |         | mount** | Indi    |             |
|       | mber** |       |         |         | cator** |             |
+-------+--------+-------+---------+---------+---------+-------------+
| 08/15 | 01     | 01    | 09/     | \$      | true    | > Posted on |
| /2004 |        |       | 08/2004 | 1500.00 |         | > 9/1/04 (7 |
|       |        |       |         |         |         | > calendar  |
|       |        |       |         |         |         | > days      |
|       |        |       |         |         |         | > before    |
|       |        |       |         |         |         | > d         |
|       |        |       |         |         |         | isbursement |
|       |        |       |         |         |         | > date)     |
+-------+--------+-------+---------+---------+---------+-------------+
| 02/01 | 02     | 01    | 02/     | \$      | true    | > Posted on |
| /2005 |        |       | 07/2005 | 1500.00 |         | > 2/1/2005  |
|       |        |       |         |         |         | > (7        |
|       |        |       |         |         |         | > calendar  |
|       |        |       |         |         |         | > days      |
|       |        |       |         |         |         | > before    |
|       |        |       |         |         |         | > d         |
|       |        |       |         |         |         | isbursement |
|       |        |       |         |         |         | > date)     |
+-------+--------+-------+---------+---------+---------+-------------+
| 03/01 | 03     | 01    | 06/     | \       | true    | > D         |
| /2005 |        |       | 01/2005 | $500.00 |         | isbursement |
|       |        |       |         |         |         | > rejected; |
|       |        |       |         |         |         | > School    |
|       |        |       |         |         |         | > must      |
|       |        |       |         |         |         | > resubmit  |
|       |        |       |         |         |         | > D         |
|       |        |       |         |         |         | isbursement |
|       |        |       |         |         |         | >           |
|       |        |       |         |         |         | information |
|       |        |       |         |         |         | > within 30 |
|       |        |       |         |         |         | > calendar  |
|       |        |       |         |         |         | > days of   |
|       |        |       |         |         |         | > D         |
|       |        |       |         |         |         | isbursement |
|       |        |       |         |         |         | > Date.     |
+-------+--------+-------+---------+---------+---------+-------------+

#### Example for Schools Designated as Pell Just-in-Time (JIT) or Cash Monitoring 1 (HCM1):

+-------+--------+-------+---------+---------+---------+-------------+
| > *   | **     | **Seq | **Disbu | **Disbu | **Disbu | **Result**  |
| *Date | Disbur | uence | rsement | rsement | rsement |             |
| > S   | sement | Num   | Date**  | A       | Release |             |
| ent** | Nu     | ber** |         | mount** | Indi    |             |
|       | mber** |       |         |         | cator** |             |
+-------+--------+-------+---------+---------+---------+-------------+
| 08/15 | 01     | 01    | 09/     | \$      | true    | > D         |
| /2004 |        |       | 08/2004 | 1500.00 |         | isbursement |
|       |        |       |         |         |         | > rejected; |
|       |        |       |         |         |         | > School    |
|       |        |       |         |         |         | > must      |
|       |        |       |         |         |         | > resubmit  |
|       |        |       |         |         |         | > D         |
|       |        |       |         |         |         | isbursement |
|       |        |       |         |         |         | >           |
|       |        |       |         |         |         | information |
|       |        |       |         |         |         | > within 7  |
|       |        |       |         |         |         | > calendar  |
|       |        |       |         |         |         | > days of   |
|       |        |       |         |         |         | > D         |
|       |        |       |         |         |         | isbursement |
|       |        |       |         |         |         | > Date.     |
+-------+--------+-------+---------+---------+---------+-------------+
| 02/01 | 02     | 01    | 02/     | \$      | true    | > Posted on |
| /2005 |        |       | 07/2005 | 1500.00 |         | > 2/1/2005  |
|       |        |       |         |         |         | > (7        |
|       |        |       |         |         |         | > calendar  |
|       |        |       |         |         |         | > days      |
|       |        |       |         |         |         | > before    |
|       |        |       |         |         |         | > d         |
|       |        |       |         |         |         | isbursement |
|       |        |       |         |         |         | > date)     |
+-------+--------+-------+---------+---------+---------+-------------+

#### 

#### Example for Schools Designated as Reimbursement or Cash Monitoring 2 (HCM2):

+-------+--------+-------+---------+---------+---------+-------------+
| > *   | **     | **Seq | **Disbu | **Disbu | **Disbu | **Result**  |
| *Date | Disbur | uence | rsement | rsement | rsement |             |
| > S   | sement | Num   | Date**  | A       | Release |             |
| ent** | Nu     | ber** |         | mount** | Indi    |             |
|       | mber** |       |         |         | cator** |             |
+-------+--------+-------+---------+---------+---------+-------------+
| 09/06 | 01     | 01    | 09/     | \$      | true    | > D         |
| /2004 |        |       | 08/2004 | 1500.00 |         | isbursement |
|       |        |       |         |         |         | > rejected; |
|       |        |       |         |         |         | > School    |
|       |        |       |         |         |         | > must      |
|       |        |       |         |         |         | > resubmit  |
|       |        |       |         |         |         | > D         |
|       |        |       |         |         |         | isbursement |
|       |        |       |         |         |         | >           |
|       |        |       |         |         |         | information |
|       |        |       |         |         |         | > on or     |
|       |        |       |         |         |         | > after the |
|       |        |       |         |         |         | > D         |
|       |        |       |         |         |         | isbursement |
|       |        |       |         |         |         | > Date.     |
+-------+--------+-------+---------+---------+---------+-------------+
| 02/07 | 02     | 01    | 02/     | \$      | true    | > Posted on |
| /2005 |        |       | 07/2005 | 1500.00 |         | > 2/7/2005  |
|       |        |       |         |         |         | > (On or    |
|       |        |       |         |         |         | > after     |
|       |        |       |         |         |         | > d         |
|       |        |       |         |         |         | isbursement |
|       |        |       |         |         |         | > date,     |
|       |        |       |         |         |         | > upon      |
|       |        |       |         |         |         | > review of |
|       |        |       |         |         |         | > do        |
|       |        |       |         |         |         | cumentation |
|       |        |       |         |         |         | > by Case   |
|       |        |       |         |         |         | >           |
|       |        |       |         |         |         | Management) |
+-------+--------+-------+---------+---------+---------+-------------+

### 

### Updating and Adjusting Pell Grant Disbursement Amounts and Dates

Disbursement Amounts and Dates can be changed using the same
disbursement number, rather than reporting a new disbursement number.

#### Business Rules:

1)  To change a Disbursement Amount and/or Disbursement Date, the
    following data elements are required:

    a.  Disbursement Release Indicator, \<DisbursementReleaseIndicator =
        ""\>

    b.  Disbursement Number, \<Disbursement Number= ""\>

    c.  Disbursement Sequence Number, \<DisbursementSequenceNumber\>

    d.  Disbursement Amount, \<DisbursementAmount\>

    e.  Disbursement Date, \<DisbursementDate\>

2)  When changing a disbursement already reported to COD, the same
    Disbursement Number must be reported.

3)  When changing a disbursement with a Disbursement Release Indicator =
    "false," the Disbursement Sequence Number must be set to "01."

4)  When changing a disbursement that already has a Disbursement Release
    Indicator = "true," the Disbursement Sequence Number must be unique.
    The next sequential Disbursement Sequence Number must be reported.

5)  Disbursement Sequence Numbers for a specific Disbursement Number
    must be used in sequential order within the range of 01-65.

6)  The Previous Sequence Number for a specific Disbursement Number is
    returned on all disbursement responses and can be used to determine
    the next Disbursement Sequence Number.

7)  When changing the Disbursement Amount, replacement Disbursement
    Amounts must be reported, rather than an adjustment to the existing
    Disbursement Amount.

> **Note**: For 2002-2003 award year and forward, a Full Participant
> cannot report a negative disbursement amount on a Common Record
> document. A replacement disbursement amount MUST be reported.

8)  Disbursement Date is always the date the cash was credited to the
    student's account or paid to the student directly for this specific
    Disbursement Number. Disbursement Date is NOT the transaction date
    of the adjustment to the disbursement.

9)  Pell Grant disbursement amounts can be adjusted to \$0.

#### Example:

The following table illustrates the use of Disbursement Sequence Number
and replacement Disbursement Amounts when making a change to an existing
disbursement:

  ---------------- -------------- ---------------- ---------------- --------------
  **Disbursement   **Sequence     **Disbursement   **Disbursement   **Accepted YTD
  Number**         Number**       Date**           Amount**         Amount**

  01               01             09/01/2004       \$2000.00        \$2000.00

  02               01             01/02/2005       \$2000.00        \$4000.00

  02               02             01/02/2005       \$1500.00        \$3500.00
  ---------------- -------------- ---------------- ---------------- --------------

### Processing System-Generated Pell Responses

COD system-generated Common Record Response Documents of Document Type
"ND" (Negative Disbursement) are generated for several situations,
including Verification Status Code W, Negative Pending Records, and
Potential Overaward Process reductions.

#### Business Rules:

1)  A Response Document of Document Type "ND" contains a
    system-generated Document ID.

2)  The Response indicates the Disbursement Number to which the downward
    adjustment applies and a COD system-generated Disbursement Sequence
    Number between 66 and 90.

3)  The Response contains the \<PreviousSequenceNumber\> indicating the
    previous accepted Disbursement Sequence Number on the COD System for
    this Disbursement Number.

> **Note:** Refer to the Deobligation of Funds Due to Verification
> Status "W", Negative Pending Records, and Potential Overaward Process
> sections for more information.

### Reporting Verification Status Code 

Valid values for the Verification Status Code tag are: "W", "S", or "V"
or the Verification Status Code tag may be omitted from the Common
Record.

#### Business Rules:

1)  The COD System valid values for the Verification Status Codes are
    "W" (Without Documentation), "S" (Selected, but Not Verified), "V"
    (Verified), or the Verification Status Code tag may be omitted from
    the Common Record.

2)  Schools report a Verification Status Code of "V" on students for
    whom verification has been completed, including all documentation.

3)  QA schools and other schools who verify students not selected by the
    CPS, report a Verification Status Code of "V" for those students
    whose data they elect to verify.

4)  Schools report a Verification Status Code of "S" for students
    selected for verification, but for whom the school has not yet
    verified.

> **Note**: "S" is a valid Verification Status Code value for the award
> year 2003-2004 and forward.

5)  QA schools and other schools who verify students not selected by the
    CPS, do not need to report a Verification Status Code of "S" for
    those students whose data they do NOT elect to verify.

6)  Schools report a Verification Status Code of "W" for students
    selected for verification, but for whom the schools elect to make
    interim disbursements prior to completing the verification process.

7)  For students with a Verification Status Code of "W," the COD System
    will only accept one disbursement with a Disbursement Amount up to
    50% of the student's Scheduled Federal Pell Grant

8)  For students reported with a Verification Status Code of "W", the
    School must change the Verification Status Code to "V" (Verified)
    once the data verification is complete.

9)  The COD System does not generate a Verification Status Code of "W"
    based on selection by the CPS.

10) Schools must omit the Verification Status Code tag from the Common
    Record for students not selected for verification by CPS.

11) QA Schools or Schools exercising 30% tolerance option report a
    Verification Status Code of "S" for students selected for
    verification by the CPS that they elected not to verify.

12) Reported verification information will be compared against the
    highest transaction number and highest verification number on CPS.

13) For the 2004-2005 award year and forward, schools may receive two
    new tags on the Common Record Response to based upon how the school
    reported Verification Status Code compares to the information on
    file with CPS.

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a.  CPS Verification Indicator, \<CPSVerificationIndicator\>, will be
    returned if the school submits a verification status of blank or "W"
    and the CPS verification is "Y" on any CPS transaction for that
    award year.

b.  Highest CPS Transaction Number, \< HighestCPSTransactionNumber\>,
    indicates the highest CPS transaction number on file for the student
    for that award year. The tag will be returned if any transaction
    number on file with CPS is greater than the school reported
    transaction number.

> **Note**: For more information about the CPS Verification Indicator
> and Highest CPS Transaction Number tags, please refer to Volume II,
> Section 3 -- Common Record Layout of this Technical Reference.

14) The COD System will generate a monthly Pell Verification Status
    Report that consists of those students with actual disbursements
    that have been selected for verification but for whom no
    verification activity has been reported to COD by the school.

> **Note**: For more information about the Pell Verification Status
> Report, please refer to Volume VIII, Section 8 -- COD Reports of this
> Technical Reference.

**Deobligation of Funds Due to Verification Status "W"**

Upon request by FSA, the COD System can send warning messages and
generate CFL decreases for schools that have students with Verification
Status Codes of "W" (Without Documentation).

#### Business Rules:

1)  Upon request by FSA, the COD System produces and sends a list of
    students at the School with a Verification Status of "W" and sends a
    warning to the School that it must take action.

    a.  The COD System lists the students with a Verification Status of
        "W" alphabetically by Last Name, by Attended School in the
        Reconciliation Report.

        i.  The Reconciliation Report is sent to the school's SAIG
            mailbox using the following message class: PGRC05OP

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b.  The text warning message indicates a date on which COD will reduce
    the students' YTD disbursements to zero (\$0.00) if the School has
    not reported to COD an acceptable Verification Status Code for each
    student.

    i.  This warning message is sent to the school's SAIG mailbox using
        the following message class: PGTX05OP

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2)  After the date indicated in the warning message upon request by FSA,
    the COD System reduces all disbursements for students with a
    Verification Status of "W" to zero (\$0.00) and creates a COD
    system-generated Common Record Response Document of Document Type
    "ND" for each student and each disbursement.

    a.  The COD system-generated "ND" Common Record Response document
        contains a Disbursement Sequence Number between 66 -- 90

    b.  The COD system-generated "ND" Common Record Response document
        contains the \<PreviousSequenceNumber\> tag indicating the
        previous accepted Disbursement Sequence Number on the COD System
        for this Disbursement Number.

3)  The School's CFL is decreased as a result of the COD
    system-generated "ND" Common Record Response Documents.

    a.  The COD System sends a text message to the School indicating the
        CFL decrease.

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i.  This text message is sent to the school's SAIG mailbox using the
    following message class: PGTX05OP.

    a.  The COD System sends a revised Statement of Account report to
        the school to reflect the CFL decrease.

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4)  Once COD creates a COD system-generated "ND" Common Record Response
    due to Verification Status "W", the COD System does not accept any
    new Disbursement information, or changes to existing Disbursement
    information, submitted with Verification Status of "W" for that
    Award.

    a.  After the disbursements have been reduced to zero as a result of
        Verification W Status for an award, the COD System rejects any
        new disbursements or upward disbursement adjustments submitted
        with Verification Status of W for that award with error code
        114.

5)  The school must resubmit the disbursement information with the next
    sequential Disbursement Sequence Number and the Verification Status
    Code updated.

### Negative Pending Records

If an update to Pell Grant Award information produces an Award Amount
that is less than the total of all accepted and posted Disbursement
Amounts for that award, the COD System creates a Negative Pending Record
for that award. The Common Record Response document contains the error
code 040 and the Negative Pending Amount tag.

#### Business Rules:

1.  If the total of all accepted and posted Disbursement Amounts
    (Disbursement Release Indicator = "true") exceed the Award Amount
    for a Pell Grant Award, the COD System creates a Negative Pending
    Record for that award.

2.  The COD System includes the Negative Pending Amount tag in the
    Common Record Response document.

    a.  The Negative Pending Amount tag indicates the difference between
        the sum of all accepted and posted Disbursement Amounts and the
        Award Amount.

        3.  The COD System allows a Negative Pending Record to exist for
            30 calendar days.

        4.  The COD System does not accept Disbursement information with
            a Disbursement Release Indicator of "true" that would result
            in an increase to the total accepted disbursements for an
            award with a Negative Pending Record at COD.

        5.  Within 30 calendar days of receiving a Negative Pending
            Amount on the Common Record Response document, the school
            must either:

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a.  Increase the Award Amount by at least the Negative Pending Amount.
    See EXAMPLE #1

> OR

b.  Decrease the Disbursement Amount by at least the Negative Pending
    Amount. See EXAMPLE #2

    6.  If within 30 calendar days the COD System does not receive a
        change to the Award Amount or Disbursement Amount that meets the
        conditions above, COD reduces the disbursement by an amount
        equal to the Negative Pending Amount and sends a
        system-generated Negative Disbursement Response with Document
        Type "ND" to the school.

    7.  The COD system-generated Negative Disbursement Response contains

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a.  Disbursement Number

b.  Disbursement Date (equal to the date of the transaction; NOT the
    original disbursement date)

c.  A COD system-generated Disbursement Sequence Number between 66 and
    90

d.  The \<PreviousSequenceNumber\> tag indicating the previous accepted
    Disbursement Sequence Number on the COD System for this Disbursement
    Number.

#### Examples: 

The Pell Award = \$1200 and the Initial accepted Disbursement = \$1700.
Thus, the Negative Pending Amount is \$500.

EXAMPLE #1:

If the appropriate response is for the school to increase the Award
Amount, the changed Award Amount must be \$1700 or greater.

EXAMPLE \# 2:

If the appropriate response is for the school to decrease the
Disbursement Amount, the adjusted Disbursement Amount must be \$1200 or
less.

### Concurrent Enrollment

A student may not receive a Pell Grant at two or more schools
concurrently. When more than one Attended School reports disbursements
for a student and the enrollment dates are within 30 calendar days of
each other, the COD System identifies a potential concurrent enrollment
and sends a warning message to all schools involved.

#### Business Rules:

1)  A student may not receive a Pell Grant at two or more schools
    concurrently.

2)  When the COD System receives disbursement information for a student
    from more than one Attended School for the same award year, the COD
    System checks whether the enrollment dates are within 30 calendar
    days of each other.

3)  If a concurrent enrollment situation exists, the COD System sends
    the school that submitted the disbursement information a warning
    with error code 069 on their Response document.

4)  The COD System sends the school that submitted the disbursement
    information and all other schools with accepted disbursement
    information in COD for the student and that award year, a Multiple
    Reporting Record (MRR).

### Pell Potential Overaward Process (POP)

A student may receive disbursements from more than one Attended School
during the course of an award year. When more than one Attended School
reports disbursements for a student, the COD System checks to make sure
that the student has not received more than 100% of their eligibility
for a Federal Pell Grant. Section 690.65 of the regulations provides the
basis for determining a student's remaining eligibility when another
school has disbursed Pell Grant funds to the student:

-   Calculate the Eligibility Used at each previous school by dividing
    the disbursements to the student at the school by the Scheduled
    Federal Pell Grant at that specific school;

-   Calculate the Total Eligibility Used for the award year by adding
    the Eligibility Used for all schools the student previously
    attended;

-   Calculate the Remaining Eligibility by subtracting the Total
    Eligibility Used from 100% (1.00000).

-   The Remaining Eligibility is the percentage of the Scheduled Federal
    Pell Grant at the new school to which the student is entitled.

If the COD System receives disbursement information that places the
student in a situation where he/she has received more than 100% of their
Total Eligibility Used, the student has entered a Potential Overaward
(POP) situation. In a POP situation, the COD System accepts the
disbursement information and notifies all of the schools involved that
the POP situation must be resolved within 30 calendar days. If after 30
calendar days the situation has not been resolved, the COD System
generates a negative disbursement for all of the student's Pell
disbursements at all schools for that award year. The eligible schools
are then required to re-report accurate disbursement records to
reinstate the student's disbursements.

#### Business Rules:

1)  A student may not receive more than 100% of their eligibility for a
    Pell Grant.

2)  A school to which a student transfers must determine the student's
    Total Eligibility Used, considering disbursements made and the
    Scheduled Federal Pell Grant at each school the student previously
    attended in the award year.

3)  When the COD System receives disbursement information for a student
    from more than one Attended School for the same award year, the COD
    System checks whether the student has received more than 100% of
    their total eligibility for a Pell Grant.

4)  If a Potential Overaward (POP) situation exists, the COD System
    sends the school that submitted the Disbursement Information a
    Response document containing:

    a.  Warning edit code 068 (Potential Overaward Project - Notice Sent
        Separately)

    b.  FSA Code value of 'PO' (PO = Pell POP) in the ED Use Flags field

    c.  Total Eligibility Used (TEU) value greater than 100.000%

5)  The COD System sends the school that submitted the Disbursement
    Information and all other schools with accepted and posted
    Disbursement Information in COD for that student and that award year
    a Multiple Reporting Record (MRR).

> **Note**: For more information about the Multiple Reporting Record
> (MRR), please refer to Volume VIII, Section 8 -- COD Reports of this
> Technical Reference.

6)  The COD System sends a weekly Pell POP Report to schools that have
    an accepted actual disbursement for students that are in or have
    been in a POP situation for this award year.

> **Note**: For more information about the Pell POP Report, please refer
> to Volume VIII, Section 8 -- COD Reports section of this Technical
> Reference.

7)  The COD System allows a POP situation to exist for 30 calendar days
    from the date the student entered the POP situation (defined as the
    date the MRR for the POP situation is created).

8)  During the 30 day period, each school involved in the Potential
    Overaward must apply the proper eligibility calculation. Only the
    school that the student is not attending or that inaccurately
    reported the disbursement information must report any changed
    disbursement information to eliminate the POP situation.

9)  During that 30 day period, the COD System can accept and post
    further disbursements that decrease or increase the student's
    year-to-date disbursement amount.

10) The COD System accepts Disbursement Information that changes the CFL
    from no more than 3 schools for students in a POP situation.

11) If the student remains in a POP situation after 30 calendar days,
    the COD System reduces all accepted and posted disbursements to zero
    (\$0.00) for that student and that award year AT ALL SCHOOLS
    INVOLVED.

12) Each school that correctly paid the student Pell Grant funds must
    re-report the student's Disbursement Information to COD.

13) During the POP situation, the COD School Relations Center will take
    a proactive role in contacting the schools in a POP situation.

14) COD does not prevent the same schools from creating another POP
    situation for the same student

15) COD School Relations will escalate the issue should the same schools
    create another POP situation involving the same student.

#### Post-Deadline Processing (Extended Processing) and POP:

1)  Post-deadline processing continues for five years after the
    September 30^th^ award year processing deadline. Therefore, a school
    with extended processing can trigger a POP situation for a student
    in an award year that another school has already finished
    processing.

2)  Schools are encouraged to pay close attention to Pell POP Reports
    and Multiple Reporting Records (MRRs) received after the processing
    deadline for a prior award year.

3)  In order to ensure proper distribution of funds, the COD System will
    reduce all disbursements for that student and that award year for
    ALL schools involved in the POP situation, regardless of whether or
    not a school has extended processing for that award year.

4)  Schools should work with Customer Service to resolve the POP
    situation during the 30 day period to prevent the COD System from
    negatively reducing disbursements after the processing deadline.

5)  Schools do not need to request post-deadline processing to submit
    upward adjustment records after the end of the processing year in
    order to correct a POP situation.

6)  The COD System accepts downward adjustments to disbursement or award
    information at any time.

7)  Disbursement information can be submitted via the COD web site for
    those schools that do not wish, or are not able, to re-open any
    software they may have used to process the affected award year.

### Pell Administrative Cost Allowance (ACA)

The COD System calculates and pays ACA amounts.

#### Business Rules:

1.  The COD System calculates ACA amounts based on the number of
    unduplicated recipients at each Reporting campus.

2.  The COD System pays ACA for students with at least one accepted and
    posted disbursement during the course of an award year.

3.  The COD System disburses ACA multiple times during the award year.

4.  The Administrative Cost Allowance processing option allows schools
    to indicate whether or not it will receive the Pell Administrative
    Costs Allowance (ACA) for each award year.

    a.  The Administrative Cost Allowance processing option can be
        viewed on the COD web site

    b.  Schools may contact COD School Relations to request that FSA
        change this option.

5.  Unless a school declines ACA, it receives a text message indicating
    its unduplicated recipient count and the amount of ACA being paid.

6.  The COD System pays each ACA amount directly into the School's bank
    account regardless of the Funding Methods used for CFL.

7.  The COD System will process decreases in ACA obligations.

### Pell Close-Out Processing

The COD System provides the ability for schools to perform end of
program year closeout activities for award year 2002-2003 and forward.

#### Business Rules:

1)  Pell Grant close-out processing for the 2004-2005 award year starts
    after 10/01/2010.

2)  The COD System does not allow processing after the close-out process
    begins, except for the production of final reports.

3)  The COD web site displays selected data after the close-out process
    begins.

### Post-Deadline Processing

The COD System provides Pell Grant post deadline processing for extended
processing, audit adjustment, and resolution of POP situations.

#### Business Rules:

1)  The COD System accepts disbursement information received after
    September 30th of the processing year if any of the following are
    true:

    a.  The school has been granted Extended Processing

    b.  The disbursement is the result of an Audit Adjustment

    c.  The disbursement is the result of a student that had been
        blocked (POP) prior to the deadline and subsequently unblocked
        after the end of the processing cycle

        2.  If none of the above conditions are true, the COD System
            rejects disbursement information received after September
            30th of the processing year with error code 071.

        3.  The COD System provides Pell Grant post deadline processing
            for the 2004-2005 award year starting October 1, 2005 and
            ending September 30, 2010.

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    a.  For award year 2002-2003 and forward processing, in order to
        submit upward adjustment records for any reason other than to
        correct a POP situation, schools must request and be approved
        for post-deadline processing prior to sending records.

    b.  The COD System accepts downward adjustments to disbursement or
        award information at any time.

## User Readiness Checklist

The following is a list of required or recommended steps to assist Full
Participants (Schools, Third Party Servicers, and Software Providers)
with implementing the COD System for the 2004-2005 Direct Loan,
Campus-Based and Pell Grant Programs.

1)  Contact COD Customer Service to sign-up as a 2004-2005 Full
    Participant for COD if your school was not a Full Participant for a
    prior award year.

> **Note:** If COD is not aware of your intention to process as a Full
> Participant in award year 2004-2005, the COD System will reject your
> records.

2)  Obtain your Routing Number (formerly Common School Identifier) from
    COD School Relations or the COD web site.

3)  Communicate your Routing Number to your software vendor, third-party
    servicer, or state agency, as needed.

4)  Contact COD Customer Service or review the COD web site to verify
    that your Reporting, Attending, and Funding School Relationships are
    set in COD accurately.

5)  Contact COD Customer Service or review the COD web site to verify
    that the Funding Method for your school is set in COD accurately.

6)  Reference Volume II of the COD Technical Reference for information
    on how to modify school or software provider applications to create
    Common Record files in XML format

7)  Reference Volume VII of the COD Technical Reference for information
    on COD School Testing.

8)  Obtain a COD School Administrator User ID for the COD web site.
    (Reference the "COD User ID Setup for Website" announcement on IFAP
    for more information).

9)  Establish User IDs within your organization for access to the COD
    web site (to be completed by the organization's Security
    Administrator).

10) Establish Rules of Behavior documents related to use of the COD
    System

11) Access the COD web site to:

    a.  Update your School Processing Options, as needed.

    b.  Review COD Processing Updates.

    c.  Review COD FAQs.

    d.  Review COD Web Messages.

    e.  Ensure your school contact information is accurate.

> **Note**: If your school's contact information needs to be updated,
> please contact COD School Relations for assistance.