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| ![](media/image1.png){width="1.0986111111111112in"                    |
| height="0.44166666666666665in"} **NSLDS Newsletter**                  |
|                                                                       |
| **Number 3 May 2002**                                                 |
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> NSLDS has implemented enhancements to the prescreening and
> postscreening processes to improve services to schools and students.
> These enhancements are described below.
>
> The successful implementation of prescreening enhancements for 2002-03
> has significantly improved service to schools and students. These
> improvements include the following:

-   A significant reduction in the number of match result indicators of
    "2" that result in CPS comment code 138 rejects.

-   A more accurate representation of a borrower's outstanding aggregate
    amounts.

-   The addition of "Last Disbursement Amount" and "Last Disbursement
    Date" data fields to the Loan History page.

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-   The addition of the "Disbursement Post Date " field to the Pell
    History page. This field is the date RFMS posted the accepted
    disbursement.

> The Postscreening process has been enhanced to include two new
> conditions that will generate postscreening results for 2002-03: 1) to
> identify students who appear to have exceeded their aggregate
> subsidized and combined loan limits in the FFEL and Direct Loan
> programs and 2) to identify loans that have entered or exited a
> disability or death "Discharged" loan status.
>
> A postscreening reason code of "09" or "10" indicates that the student
> has exceeded a maximum aggregate limit and may not be eligible for
> additional Title IV aid. The postscreening reason codes of "06" and
> "07" generated when a loan enters or exits a disability or death
> "Discharged" loan status will assist schools in determining whether a
> student's eligibility for additional Title IV funds is limited based
> on the discharge.
>
> Following is a table that lists the Postscreening Reason Codes.
>
> Table 1: Postscreening Reason Codes

  -----------------------------------------------------------------------
  **Code**        **Definition**
  --------------- -------------------------------------------------------
  01              Applicant had a loan deteriorate.

  02              Applicant had an overpayment deteriorate.

  03              Applicant had a loan improve (from default to
                  non-default).

  04              Applicant had an overpayment improve.

  05              Applicant had a MPN change.

  06              Applicant had a loan go into a discharge status.

  07              Applicant had a loan go out of discharge status.

  08              Closed school request (special request only).

  09              Applicant exceeded subsidized loan limit.

  10              Applicant exceeded combined loan limit.

  99              Other.
  -----------------------------------------------------------------------

> ***Exceeding Aggregate Loan Limits***
>
> A postscreening result is generated if a student exceeds one or more
> of the aggregate loan limits. For 2002-03 one postscreening alert
> (reason code "09") is generated if the student exceeds the subsidized
> aggregate loan limit and another (reason code "10") is generated if
> the student exceeds the combined aggregate loan limit. If both limits
> are exceeded and identified in the same postscreening run, the "09"
> reason code is generated and the next time postscreening is run the
> student will be identified with a reason code of "10".
>
> The formula for calculating a student's aggregate loan balances
> includes the student's dependency status and academic level. The
> dependency status used to determine the applicable aggregate loan
> limits is based on the student's current year CPS processing results.
> If CPS dependency status data is not available in NSLDS for the
> current year, NSLDS will use the prior year's status. If the prior
> year's status is not available, the system will default to
> "dependent". The academic level is determined from the Loan Period
> Start date of the most recent loan in NSLDS. No distinction on
> academic level is made for a student who may have received loans
> during a graduate/professional status and then returned to an
> undergraduate program.
>
> There are certain circumstances in which the aggregate calculation may
> not include all the information available to the school. Because the
> FFEL program does not send to NSLDS data on a PLUS denial or receipt
> of additional Health Professions Loans (HEAL), some students who
> receive a postscreening result for exceeding the aggregate limit may
> not have exceeded their aggregate limit. Also, aggregate limits for
> some students may include graduate/professional loans for students who
> are now pursuing a second undergraduate degree. Schools will have to
> research these cases. Schools will also have to research cases where a
> student moved from an undergraduate program to graduate and then back
> to undergraduate status.
>
> CPS and NSLDS calculate loan aggregates differently. Therefore, a
> school may receive a postscreening result from NSLDS and no CPS
> produced aggregate message or may receive a CPS aggregate message and
> no postscreening result. CPS uses the academic level as reported by
> the student from the latest CPS transaction; NSLDS determines academic
> level based on the latest loan in the system. CPS does not utilize the
> PLUS denial or HEAL eligibility factors, which are available to NSLDS
> for the Direct Loan Program. In addition, CPS does not include
> consolidation loans in its formula, while NSLDS includes consolidation
> loans as described in the following paragraph.
>
> When calculating a student's loan aggregates, because NSLDS receives
> the subsidized/unsubsidized breakdown of a Direct Loan Consolidation
> Loan, the subsidized aggregate includes any portion of a Direct
> Consolidation Loan that is subsidized. However, NSLDS does not receive
> similar breakdowns for FFEL Consolidation Loans. In order to address
> this issue, for purposes of calculating aggregates for postscreening,
> NSLDS assumes that the total outstanding balance of an FFEL
> Consolidation Loan consists of the same ratio of subsidized loans as
> was in the sum of the original underlying loans. If NSLDS cannot
> identify the underlying loans for an FFEL Consolidation Loan, NSLDS
> will count the entire FFEL Consolidation Loan in the subsidized
> aggregate balance. Because these two assumptions are used in
> postscreening, schools will need to calculate the actual breakdown of
> the FFEL Consolidation Loan to determine whether the student has
> actually exceeded his or her aggregate limits.
>
> Following is a table that summarizes the aggregate calculations.
>
> ***Table 2: Aggregate Loan Limit Chart***

  ----------- ---------- ------------ ------------------ ------------- ---------- --------
  **Formula   **Sub      **Combined   **Dependency**     **Academic    **PLUS     **HEAL
  No.**       Limit**    Limit**                         Level**       Denial**   Flag**

  1           \$23,000   \$23,000     Dependent          UG            No         No

  2           \$23,000   \$46,000     Dependent with     UG            Yes        No
                                      additional                                  
                                      unsubsidized                                
                                      eligibility                                 

                         **OR**       Independent        UG            N/A        No

  3           \$23,000   \$70,625     Dependent with     UG            N/A        Yes
                                      HEAL eligibility                            

                         **OR**       Independent        UG            N/A        Yes

  4           \$65,500   \$138,500    N/A                G/P           N/A        No

  5           \$65,500   \$189,125    N/A                G/P with HEAL N/A        Yes
                                                         eligibility              
  ----------- ---------- ------------ ------------------ ------------- ---------- --------

> ***Discharge Loan Status***
>
> A Postscreening result is generated if a student has loans that enter
> or exit a disability or death "Discharged" loan status (DD, DE, DI, or
> DS). Loans that enter into a disability or death "Discharged" loan
> status generate a postscreening reason code of "06". Loans that exit a
> disability or death "Discharged" loan status generate a reason code of
> "07".
>
> The Department will publish a more comprehensive "Dear Partner Letter"
> providing detail on the new NSLDS postscreening processes.