# 4.4 Loan Origination and Change Modifications

## 4.4.1 Redesign Loan Limit Edits to Ensure Compliance 

**1999-2000 Modification:** Loan Limit edits are performed by the LOC
during the Loan Origination and Disbursement process.

Upon implementation this modification affects only 1999-2000.

Currently, loan limit edits are not specific to individual loan limits
and dependency status*.* The LOC verifies annual loan limits, at the
point of loan origination, by using the loan approved amount submitted
by the school in the Loan Origination Record. The loan limits are
verified for all loans, originated for the borrower, at the school
submitting the Loan Origination Record and at other institutions.

This current process allows the LOC to reject a Loan Origination Record
with a loan amount that, when combined with other loans on the LOC
database, exceeds the annual loan limits. This Loan Origination rejects
prior to disbursement. This process does not allow a borrower to be
awarded a Direct Loan at multiple institutions during the packaging
process, if the combined awards exceed the loan limits.

Starting in 1999-2000, loan limits are verified upon the receipt of a
Loan Origination Record for all loans originated for the borrower at
that specific school, using the borrower's academic year. Loan limits
are again verified upon the receipt of an Actual Disbursement Record for
all loans disbursed for the borrower at multiple schools, using the
borrower's academic year.

**Annual Loan Limits in the Loan Origination Process**

Annual loan limits are edited upon receipt of a Loan Origination Record.
This edit verifies all loans accepted by your school, for this specific
borrower, for equal or overlapping academic years. Only the loans at
your schools are reviewed at this point.

> **For example, for a first-year student, the individual loan limit
> edit of \$2,625 is used.**

The LOC performs annual loan limit edits based on: the loan amount
approved, borrower's academic year, dependency status, loan type, grade
level and any additional unsubsidized eligibility flags, for loans for a
specific borrower at a specific school, with equal or overlapping
academic years. The specific fields and edits used in this process are
discussed throughout this section.

**Annual Loan Limits** **at the Disbursement Process**

Annual loan limits across different schools are checked during the
actual disbursement process instead of the loan origination process.
Annual loan limits for **all** loans for a **specific** **borrower** are
verified upon receipt of an actual disbursement or adjustment by using
the amount of the actual gross disbursement submitted by your school in
the Disbursement Record. All actual gross disbursements for a specific
borrower for **any loans where the academic year equals or overlaps with
the academic year of the loan being edited,** are combined to determine
if a loan limit is exceeded. If a loan limit is exceeded, the incoming
Disbursement Record is rejected and not accepted by the LOC.

Thus, during the Disbursement process, annual loan limits are edited
using the data from the Disbursement Record (actual disbursement or
adjustment) and the Loan Origination Record it is associated with by
finding all loans for a specific borrower from the same or multiple
schools, if applicable, with equal or overlapping academic years, and
using the borrower's academic year, dependency status, loan type, grade
level and any additional unsubsidized eligibility flags. How the loan
limit edits are performed on the Disbursement Record is discussed in
more detail in Section 4.6.5Implement Disbursement Loan Limit Edits.

Since the actual Disbursement Record might be rejected when funds have
already been disbursed to the students, it is very important to verify a
borrower's current Direct Loan profile before disbursement. The Direct
Loan profile for a specific borrower needs to include the loan approved
amount and the actual gross disbursement for **all** loans a student has
been approved for, **with equal or overlapping academic years**. This
includes approved loans at other schools which may have not yet been
disbursed.

The **Duplicate Student Borrower Report assists in providing the school
with this** information. This report identifies student borrowers at
their institution who have Direct Subsidized and Unsubsidized Loans
approved at other institutions **for equal or overlapping academic
years.** With this understanding, you have the potential to resolve an
exceeding loan limit issue prior to sending the LOC a Disbursement
Record and prior to the disbursement of funds to students.

In addition, you may need this same information to understand or correct
a Disbursement Record that is rejected by the LOC. Once you have this
information, you may contact colleagues at other schools to see if one
of the disbursed loans is going to be adjusted to \$0, or if the
borrower's academic year is going to be updated.

This monthly report is discussed in more detail in Section 4.9.1Update
Duplicate Student Borrower Report.

+-----------------------------------------------------------------------+
| **Business Rules:**                                                   |
|                                                                       |
| -   Annual Loan Limits are edited in the Loan Origination Process     |
|     using Loan Approved Amount, dependency status, grade level, loan  |
|     type, additional unsubsidized eligibility flags, and the          |
|     borrower's academic year (NOT Award Year) on the Loan Origination |
|     Record. This edit looks at all loans for a specific borrower at   |
|     your specific school where the borrower's academic year equals or |
|     overlaps the academic year of the Loan Origination Record being   |
|     edited.                                                           |
|                                                                       |
| -   Annual Loan Limits are edited in the Disbursement Process using   |
|     Actual Disbursements, dependency status, grade level, loan type,  |
|     additional unsubsidized eligibility flags, and the borrower's     |
|     academic year (NOT Award Year). This edit looks at all actual     |
|     disbursements for a specific borrower at all schools where the    |
|     borrower's academic year equals or overlaps the academic year of  |
|     the actual disbursement being edited.                             |
|                                                                       |
| -   Borrower's academic years at the same school CAN be equal or      |
|     overlap.                                                          |
|                                                                       |
| -   Borrower's academic years at different schools CAN be equal or    |
|     overlap.                                                          |
|                                                                       |
| -   Academic Year Start Date (Field \# 71) and Academic Year End Date |
|     (Field #72) are REQUIRED fields on the Loan Origination Record.   |
|     Additional edits are performed by the LOC on the borrower's       |
|     academic year start date and end date. These edits are discussed  |
|     in Section 4.4.4Implement Academic Year Start and End Dates as   |
|     Required Fields.                                                  |
|                                                                       |
| -   A new field (Field \# 44) is added to the Loan Origination Record |
|     to identify the **dependent borrower eligible for an additional** |
|     **unsubsidized** amount. This field is discussed in Section       |
|     4.4.2Implement Additional Unsubsidized Eligibility for a         |
|     Dependent Student Flag.                                           |
|                                                                       |
| -   Dependency Status (Field \# 65) on the Loan Origination Record is |
|     a REQUIRED field and the valid field content is "D" or "I." The   |
|     modification of this field is discussed in detail in Section      |
|     4.4.3Implement Dependency Status as a Required Field.            |
+-----------------------------------------------------------------------+

The table below outlines the new or modified reject codes for loan
limits edits in 1999-2000.

  --------------------------- ------------ ------------------------------
  **Type of Reject Code       **Reject     **Reject Code Definition**
  Modified**                  Code**       

  Modify Loan Origination     26           Loan Amount Approved exceeds
  Reject code for loan                     the Annual Maximum Limits for
  limits.                                  this borrower at your school
                                           for equal or overlapping
                                           academic years. Review the
                                           borrower's academic year,
                                           dependency status and loan
                                           approved amount.

  Modify Change Reject code   26           Loan Amount Approved exceeds
  for loan limits.                         the annual maximum limit for
                                           this borrower at your school
                                           for equal or overlapping
                                           academic years. Review the
                                           borrower's academic year,
                                           dependency status and loan
                                           approved amount.
  --------------------------- ------------ ------------------------------

**EXAMPLE**

A **first year, independent student** has two loans at the same school
for the same academic year and same grade level. This student's annual
maximum loan limit is \$6625.

  ---------------- ------------ ------------ ---------------- ---------------- -------------
                   **Loan       **Academic   **First          **Second         **Status of
                   Amount       Years**      Anticipated      Anticipated      Loan
                   Approved**                Disbursement**   Disbursement**   Origination
                                                                               Record**

  **Subsidized     \$2625       09/06/1999   \$1213           \$1212           Accepted
  Loan**                        to                                             
                                05/10/2000                                     

  **Unsubsidized   \$4000       09/06/1999   \$2000           \$2000           Accepted
  Loan**                        to                                             
                                05/10/2000                                     
  ---------------- ------------ ------------ ---------------- ---------------- -------------

The school sends a Change Record to the LOC to increase the Loan Amount
Approved of the Unsubsidized Loan to \$4500. The Change Record is
rejected with a Change Reject Code of 26Loan Amount Approved Exceeds
the Annual Loan Maximum Limits for this borrower at your school, for
equal or overlapping academic years. Review the borrower's academic
years, dependency status, and loan approved amount.

The next four pages outline the specific annual loan limits that are
used by the LOC.

**Annual Loan Limit Maximums**

**Dependent Students**

  -------------------------------- --------- ---------------- ---------------
  **Year in College**              **Grade   **Subsidized     **Combined
                                   Code**    Maximum**        (Subsidized and
                                                              Unsubsidized)
                                                              Maximum**

  1st Year (Freshman) never        01        2,625            2,625
  attended college                                            

  1st Year (Freshman) attended     02        2,625            2,625
  college before                                              

  2nd Year (Sophomore)             03        3,500            3,500

  3rd Year (Junior)                04        5,500            5,500

  4th Year (Senior)                05        5,500            5,500

  5th Year (other undergraduate)   06        5,500            5,500
  -------------------------------- --------- ---------------- ---------------

**Annual Loan Limit Maximums**

**Dependent Students with Additional Unsubsidized Amount**

  ------------------------------------ --------- -------------- ------------------------
  **Year in College**                  **Grade   **Subsidized   **Combined (Subsidized
                                       Code**    Maximum**      and
                                                                Unsubsidized)Maximum**

  1st Year (Freshman) never attended   01        2,625          6,625
  college                                                       

  1st Year (Freshman) attended college 02        2,625          6,625
  before                                                        

  2nd Year (Sophomore)                 03        3,500          7,500

  3rd Year (Junior)                    04        5,500          10,500

  4th Year (Senior)                    05        5,500          10,500

  5th Year (other undergraduate)       06        5,500          10,500
  ------------------------------------ --------- -------------- ------------------------

**Annual Loan Limit Maximums**

**Independent Students**

  ------------------------------------ --------- -------------- ------------------------
  **Year in College**                  **Grade   **Subsidized   **Combined (Subsidized
                                       Code**    Maximum**      and
                                                                Unsubsidized)Maximum**

  1st Year (Freshman) never attended   01        2,625          6,625
  college                                                       

  1st Year (Freshman) attended college 02        2,625          6,625
  before                                                        

  2nd Year (Sophomore)                 03        3,500          7,500

  3rd Year (Junior)                    04        5,500          10,500

  4th Year (Senior)                    05        5,500          10,500

  5th Year (other undergraduate)       06        5,500          10,500

  1st Year Graduate and Beyond         07        8,500          18,500
  ------------------------------------ --------- -------------- ------------------------

**Annual Loan Limit Maximums**

**Student Eligible for Former HEAL Loans**

Dependent Student

  --------------------------------- --------- -------------- ------------------------
  **Year in College**               **Grade   **Subsidized   **Combined (Subsidized
                                    Code**    Maximum**      and
                                                             Unsubsidized)Maximum**

  4th Year (Senior)                 05        5,500          22,167 (5,500 + HEAL
                                                             16,667)

  5th Year (other undergraduate)    06        5,500          22,167 (5,500 + HEAL
                                                             16,667)
  --------------------------------- --------- -------------- ------------------------

**Student Eligible for Former HEAL Loans**

Independent Student and Dependent Student Eligible for Additional
Unsubsidized Amount

  --------------------------------- --------- -------------- ------------------------
  **Year in College**               **Grade   **Subsidized   **Combined (Subsidized
                                    Code**    Maximum**      and
                                                             Unsubsidized)Maximum**

  4th Year (Senior)                 05        5,500          27,167 (10,500 + HEAL
                                                             16,667)

  5th Year (other undergraduate)    06        5,500          27,167 (10,500 + HEAL
                                                             16,667)

  1st Year Graduate/Professional    07        8,500          45,167 (18,500 + HEAL
  and Beyond                                                 26,667)
  --------------------------------- --------- -------------- ------------------------

## 4.4.2 Implement Additional Unsubsidized Eligibility for a Dependent Student Flag

**1999--2000 Modification:** A New field, Additional Unsubsidized
Eligibility for a Dependent Student, has been added to the Full Loan
(Stafford/PLUS) Origination Record Layout. A new Export Origination
Change Field Value has been added so that the Additional Unsubsidized
Eligibility for a Dependent Student flag can be updated.

Upon implementation, this modification affects only 1999-2000.

Currently, loan limit edits performed by the LOC are not specific to
dependency status.

Starting in 1999-2000, loan limit edits performed by the LOC are
specific to dependency status. Dependent students who are eligible for
an additional unsubsidized loan amount need to be identified by the
schools so that loan limit edits can be applied appropriately by the
LOC.

Additional Unsubsidized Eligibility for a Dependent Student (Field #44)
is added to the Full (Stafford/PLUS) Origination Record so that a school
can identify a dependent student who is eligible for an additional
unsubsidized loan amount. The new field must be set to "Y" in order for
the LOC to process a loan based on the loan limits for a dependent,
undergraduate student eligible for an additional unsubsidized loan
amount. This flag is edited to ensure that the Loan Origination Record
is for a dependent, undergraduate student.

Field #44Additional Unsubsidized Eligibility for a Dependent Student
must contain a "Y" meaning "Yes" or be blank. Any other values in this
field, such as "N," causes the Loan Origination Record, or Change
Record, to reject with the new Loan Origination and Change Reject Code
of 88Invalid Additional Unsubsidized Eligibility for a Dependent
Student.

The new Change Field Transmit Number for the Additional Unsubsidized
Eligibility for Dependent Student field is S123.

WHEN A SCHOOL IS *NOT* PROCESSING A LOAN WITH ADDITIONAL UNSUBSIDIZED
ELIGIBILITY FOR A DEPENDENT STUDENT, THIS FIELD MUST BE LEFT "BLANK."

+-----------------------------------------------------------------------+
| **Business Rules:**                                                   |
|                                                                       |
| -   The Additional Unsubsidized Eligibility for Dependent Student     |
|     flag is a one−character field. Field #44 on the Loan Origination  |
|     Record.                                                           |
+-----------------------------------------------------------------------+

+-----------------------------------------------------------------------+
| -   There is a new Loan Origination and Change Reject Code of         |
|     88Invalid Additional Unsubsidized Eligibility for Dependent      |
|     Student. This **reject code** indicates that the Additional       |
|     Unsubsidized Eligibility for a Dependent Student code, sent by    |
|     the school is:                                                    |
|                                                                       |
| -   NOT equal to "Y" or "blank."                                      |
|                                                                       |
| -   NOT for a dependent, undergraduate student.                       |
|                                                                       |
| -   Your Direct Loan system must have the capability to update or     |
|     modify the Additional Unsubsidized Eligibility for Dependent      |
|     Student flag, by sending a Change Record to the LOC using the new |
|     Change Field Transmit NumberS123 in the Custom Layout Section 1. |
+-----------------------------------------------------------------------+

The following table defines the results a Change Record (Change Transmit
Field Number S123) has on a Loan Origination Record, Field
#44Additional Unsubsidized Eligibility for Dependent Student.

  ----------------------- ------------------ ----------------------------
  **Current Status of the **Change Record    **Results**
  Additional Unsubsidized (S123) Submitted   
  Eligibility for         by the School      
  Dependent Student Flag  Contains the       
  at the LOC**            Following Data**   

  Y                       Y                  LOC bypasses this change
                                             since the value is already
                                             in the LOC database. The
                                             flag stays set with a "Y."

  Y, and the loan amount  Blank              LOC processes a Change
  approved includes the                      Reject of 26Loan Amount
  additional unsubsidized                    Approved exceeds the annual
  loan amount for a                          maximum limits for this
  dependent student                          borrower at your school for
                                             equal or overlapping
                                             academic years.

  Y, and the loan amount  Blank              LOC removes the flag and the
  approved does NOT                          field is "blank."
  include the additional                     
  unsubsidized loan                          
  amount for a dependent                     
  student                                    

  Y                       Any data other     LOC processes a Change
                          than "Y" or blank  Reject of 88Invalid
                                             Additional Unsubsidized
                                             Eligibility for Dependent
                                             Student.

  Blank, and the Loan     Y                  LOC sends the flag with a
  Origination Record is                      "Y."
  for a dependent,                           
  undergraduate student.                     

  Blank, and the Loan     Y                  LOC processes a Change
  Origination Record is                      Reject of 88Invalid
  for an independent,                        Additional Unsubsidized
  graduate student.                          Eligibility for Dependent
                                             Student.

  Blank                   Blank              LOC bypasses this change
                                             since the value is already
                                             in the LOC database.

  Blank                   Any data other     LOC processes a Change
                          than "Y" or blank. Reject of 88Invalid
                                             Additional Unsubsidized
                                             Eligibility for Dependent
                                             Student.
  ----------------------- ------------------ ----------------------------

When an Additional Unsubsidized Eligibility for Dependent Student flag
is updated or modified, other Change Records may need to be submitted to
the LOC prior to submitting the Change Record for the additional
unsubsidized eligibility. The following table demonstrates **some** of
these instances.

+---------------------+------------------------------------+----------+
| **Situation**       | **School Action in Sequential      | **Change |
|                     | Order**                            | Field    |
|                     |                                    | Values** |
+---------------------+------------------------------------+----------+
| The Loan            | Submit the following Change        | S029     |
| Origination Record  | Records in this order to the LOC:  |          |
| is accepted by the  |                                    | ##       |
| LOC. The loan       | 1.  Reduce the Loan Amount         |          |
| amount approved     |     Approved and send a Change     | ## S123  |
| includes the        |     Record to the LOC.             |          |
| additional          |                                    |          |
| unsubsidized loan   | 2.  Remove the flag and send a     |          |
| amount. The school  |     Change Record to the LOC.      |          |
| needs to remove the |                                    |          |
| additional          |                                    |          |
| unsubsidized        |                                    |          |
| eligibility flag    |                                    |          |
| prior to making the |                                    |          |
| first disbursement. |                                    |          |
+---------------------+------------------------------------+----------+
| The Loan            | Submit the following records in    | S049,    |
| Origination Record  | this order to the LOC:             | S059, or |
| is accepted by the  |                                    | S069     |
| LOC. The loan       | 3.  Send actual disbursement       |          |
| amount approved     |     adjustment record to the LOC.  | S029     |
| includes the        |                                    |          |
| additional          | 4.  Reduce the second or           | ##       |
| unsubsidized loan   |     subsequent anticipated         |          |
| amount. The school  |     disbursement and send a Change | ## S123  |
| needs to remove the |     Record to the LOC.             |          |
| additional          |                                    |          |
| unsubsidized        | 5.  Reduce the Loan Amount         |          |
| eligibility flag    |     Approved and send a Change     |          |
| after the first     |     Record to the LOC.             |          |
| disbursement has    |                                    |          |
| been made and prior | 6.  Remove the flag and send a     |          |
| to any subsequent   |     Change Record to the LOC.      |          |
| disbursements.      |                                    |          |
+---------------------+------------------------------------+----------+
| The Loan            | Submit the following records in    | S039,    |
| Origination Record  | this order to the LOC:             | S049,    |
| is accepted by the  |                                    | S059, or |
| LOC and the school  | 7.  Send actual disbursement       | S069     |
| needs to remove the |     adjustment records to the LOC. |          |
| additional          |                                    | S029     |
| unsubsidized        | 8.  Reduce the anticipated         |          |
| eligibility flag    |     disbursements and send a       | ##       |
| after the loan has  |     Change Record to the LOC.      |          |
| been fully          |                                    | ## S123  |
| disbursed.          | 9.  Reduce the Loan Amount         |          |
|                     |     Approved and send a Change     |          |
|                     |     Record to the LOC.             |          |
|                     |                                    |          |
|                     | 10. Remove the flag and send a     |          |
|                     |     Change Record to the LOC.      |          |
+---------------------+------------------------------------+----------+
| School needs to add | Submit the following records to    | ##       |
| the flag to a Loan  | the LOC:                           |          |
| Origination Record  |                                    | ## S123  |
|                     | 11. Add the flag and send a Change |          |
|                     |     Record to the LOC.             | S029     |
|                     |                                    |          |
|                     | 12. If the Loan Amount Approved    |          |
|                     |     does not increase, no further  |          |
|                     |     action is necessary.           |          |
|                     |                                    |          |
|                     | 13. If the Loan Amount Approved    |          |
|                     |     does increase, send a Change   |          |
|                     |     Record to the LOC with the new |          |
|                     |     Loan Amount Approved.          |          |
+---------------------+------------------------------------+----------+

**EXAMPLE**

**Scenario:** A school sends an Unsubsidized Loan Origination Record
with a Loan Approved amount of \$6,625 and an Additional Unsubsidized
Eligibility for Dependent Student flag of "Y." The Loan Origination
Record is accepted.

The school determines, prior to disbursement, that the student borrower
is no longer eligible for the additional unsubsidized loan amount. The
Unsubsidized Loan Amount Approved must be reduced to \$2,625 and the
flag removed. This update requires two Change Records to be sent to the
LOC. A Change Record to reduce the Loan Amount Approved, and a Change
Record to remove the flag.

**Note**: The order in which the LOC receives these two Change Records
is extremely important. The LOC must first receive and accept the Change
Record to reduce the loan amount approved, then, the Change Record to
remove the flag can be sent to the LOC.

***(Note: In this example, we have added spaces between data fields for
ease of reading and have included only some of the fields contained in
the record layout. For actual record layouts, please refer to the Custom
Layout Section 1.)***

  ----------------- --------------------------------- --------------------
  **Full Loan                                         
  Origination                                         
  (DESF00IN/Batch                                     
  Type #D) contains                                   
  the following                                       
  fields:**                                           

  **Promissory Note **Additional Unsubsidized         **Filler**
  Print Indicator\  Eligibility for Dependent         
  **S               Student\                          
                    **"Y"                             
  ----------------- --------------------------------- --------------------

  ----------------------- ----------------------- -----------------------
  **Loan Origination                              
  Change Acknowledgment                           
  (DIOC00OP/Batch Type                            
  #E) contains the                                
  following fields:**                             

  **Change Field Number   **Value 01\             **Error 01\
  01\                     **2625                  **"blank"
  **S029                                          
  ----------------------- ----------------------- -----------------------

## 

  ----------------------- ----------------------- -----------------------
  **Loan Origination                              
  Change Export Record                            
  (DESC00IN/Batch Type                            
  #E) contains the                                
  following fields:**                             

  **Change Field Number   **Value 01\             **Error 01\
  01\                     **"blank"               **"blank"
  **S123                                          
  ----------------------- ----------------------- -----------------------

##  4.4.3 Implement Dependency Status as a Required Field

**1999--2000 Modification:** Dependency Status (Field \# 65) on the Full
Loan (Stafford/PLUS) Origination Record is a required field. The field
can be updated and modified through the Change Record process.

Upon implementation, this modification affects only 1999-2000.

Currently, dependency status is a field on the Full Loan (Stafford/PLUS)
Origination Record however, the field is not required.

Starting in 1999-2000, dependency status is used in the LOC loan limit
edits and therefore must be a required field on the Loan Origination
Record. Dependency Status (Field #65) must equal "D" for dependent or
"I" for independent, and CAN NOT be "blank" on the Loan Origination
Record sent to the LOC.

Change Records to update or modify dependency status can be sent to the
LOC using the Change Field Transmit Number S017Dependency Status.

**Note:** In the past "P"Professional Judgment has been a valid field
content for Dependency Status. **Starting in 1999-2000,** **"P" is an
invalid value and is rejected**.

+-----------------------------------------------------------------------+
| **Business Rules:**                                                   |
|                                                                       |
| -   In order to use the dependency status field in the loan limit     |
|     logic, Dependency Status (Field #65) is a required field for      |
|     1999-2000 forward. This record layout is in the Custom Layout     |
|     Section 1.                                                        |
|                                                                       |
| -   Schools must supply the students dependency status on a Full      |
|     (Stafford/PLUS) Loan Origination Record (DESF00IN/Batch Type #D   |
|     and PF).                                                          |
|                                                                       |
|     The acceptable values are:                                        |
|                                                                       |
|     "D" = Dependent OR                                                |
|                                                                       |
|     "I" = Independent.                                                |
|                                                                       |
| -   Starting in 1999-2000 forward, "P" = Professional Judgment is NOT |
|     a valid status and rejects with Loan Origination Reject code      |
|     60Invalid dependency status.                                     |
|                                                                       |
| -   "Blank" or space is NOT a valid status and rejects with Loan      |
|     Origination Reject code 60Invalid dependency status.             |
+-----------------------------------------------------------------------+

+-----------------------------------------------------------------------+
| -   In addition, a PLUS Loan Origination Record rejects if the        |
|     student's dependency status is "I" = Independent with Loan        |
|     Origination Reject code 60Invalid dependency status.             |
|                                                                       |
| -   Dependency status can be changed or modified by submitting a      |
|     Change Record to the LOC using the Change Field Transmit \# S017. |
+-----------------------------------------------------------------------+

**EXAMPLE**

**Scenario:** A school sends a Loan Origination Record for a dependent
student but leaves the student's dependency status "blank." The Loan
Origination Record is rejected with the Loan Origination Reject Code of
60Invalid Dependency Status. The school must resubmit the Loan
Origination Record to the LOC with the appropriate dependency status,
"D" = dependent.

***(Note: In this example, we have added spaces between data fields for
ease of reading and have included only some of the fields contained in
the record layout. For actual record layouts, please refer to the Custom
Layout Section 1.)***

  ----------------- -------------------------- ---------------------------
  **Loan                                       
  Origination                                  
  Record                                       
  (DESF00IN/Batch                              
  Type #D)**                                   

  **Dependency      **First Disbursement       **Second Disbursement
  Status\           Percentage\                Percentage\
  **"blank"         **50                       **50
  ----------------- -------------------------- ---------------------------

  ------------------------------------ ----------------------------------
  **Loan Origination Acknowledgment    
  (DISF00OP/Batch Type #D)**           

  **Full Loan Origination Status       **Full Loan Origination Reject
  Flag**\                              Reasons\
  B                                    **60
  ------------------------------------ ----------------------------------

##  4.4.4 Implement Academic Year Start and End Dates as Required Fields

**1999--2000 Modification:** Academic Year Start Date (Field #71) and
Academic Year End Date (Field \# 72) on the Full Loan (Stafford/PLUS)
Origination Record are required fields for all Direct Subsidized and
Unsubsidized Loans. In addition, new Change Field Transmit Numbers have
been added so that the two fields can be updated or modified through the
Change Record process.

Upon implementation, this modification affects only 1999-2000.

Currently, the borrower's academic year dates are optional fields in the
Loan Origination Record and schools have the option to either collect
this information and pass it on to the LOC or else transmit these fields
"blank."

Starting in 1999-2000, the borrower's Academic Year Start Date (Field
#71) and borrower's Academic Year End Date (Field #72) are required
fields. Schools must submit valid dates in these fields, as the
borrower's academic year start and end dates are used in the new LOC
loan limit edits. No longer is a Loan Origination Record acceptable if
these fields are "blank," or do not contain a valid date. This field is
edited by the LOC and a new Loan Origination Reject Code, 86---Invalid
Academic Year Start and End Dates---is used on the Loan Origination
Acknowledgment.

If the school updates or modifies the borrower's Academic Year Start
Date, or the borrower's Academic Year End Date on a Loan Origination
Record, a Change Record must be submitted to the LOC. The Change Record
is sent using one of the new Field Transmit Numbers. The modified
borrower's Academic Year Start Date (S121), or the modified borrower's
Academic Year End Date (S122), undergo the same edits at the LOC as the
original borrower's academic year start or end date.

+-----------------------------------------------------------------------+
| **Business Rules:**                                                   |
|                                                                       |
| -   Schools must supply the borrower's academic start date, and       |
|     borrower's academic end date, on a Subsidized/Unsubsidized Loan   |
|     Origination Record. These fields must be able to be updated and   |
|     modified, and the new date(s) sent to the LOC through the Change  |
|     Record process. Unaccepted Loan Origination Records or Change     |
|     Records are rejected with Reject Code 86---Invalid Academic Year  |
|     Start and End Dates.                                              |
+-----------------------------------------------------------------------+

+-----------------------------------------------------------------------+
| -   This field cannot be blank/null and the dates must be valid       |
|     dates, NOT all zeros.                                             |
|                                                                       |
|     **For example**: 00/00/0000 to 00/00/0000 is NOT acceptable.      |
|                                                                       |
| -   The borrower's academic year end date must be greater than the    |
|     borrower's academic year start date.                              |
|                                                                       |
|     **For example:** 09/10/1999 to 05/15/2000 is acceptable.          |
|     09/10/2000 to 05/15/2000 is NOT acceptable.                       |
|                                                                       |
| -   The borrower's academic year CANNOT be greater than 12 months. In |
|     other words, the maximum time between the borrower's academic     |
|     year start date and the borrower's academic year end date can not |
|     exceed a 12-month period .                                        |
|                                                                       |
|     **For example:** 09/01/1999 to 08/31/2000 is the maximum          |
|     acceptable date range. 09/01/1999 to 09/01/2000 is NOT            |
|     acceptable.                                                       |
|                                                                       |
| -   The date range for borrower's academic year start date for        |
|     1999-2000 is:                                                     |
|                                                                       |
|     07/02/1998 to 06/30/2000                                          |
|                                                                       |
| -   The date range for borrower's academic year end date for          |
|     1999-2000 is:                                                     |
|                                                                       |
|     07/01/1999 to 06/29/2001                                          |
|                                                                       |
| -   New Change Field Transmit Numbers are:                            |
|                                                                       |
|     S121---Academic Year Start Date                                   |
|                                                                       |
|     S122---Academic Year End Date                                     |
|                                                                       |
| -   Academic years at the same school CAN overlap and can be equal.   |
|     This is not an edit but a concept used in loan limit edits.       |
|                                                                       |
| -   Academic years at different schools CAN overlap and can be equal. |
|     This is not an edit but a concept used in loan limit edits.       |
+-----------------------------------------------------------------------+

This table shows the results a school receives when submitting a
Subsidized/Unsubsidized Loan Origination Record with the academic year
start date and academic year end date completed in various ways.

  --------------------------- ------------ ------------------ ------------- --------- ---------- -------------
  **Subsidized/Unsubsidized                                                                      
  Loan Origination Record**                                                                      

  **Academic Year Start       **Academic   **Results**                                           
  Date**                      Year End                                                           
                              Date**                                                             

  09151999                    05252000     Accepted                                              

  09151999                    09152000     Rejected---date    Loan                    Invalid    
                                           range is more than Origination             Academic   
                                           12 months          Reject                  Year Dates 
                                                              Code---86                          

  09151999                    blank        Rejected---end     Loan                    Invalid    
                                           date is blank      Origination             Academic   
                                                              Reject                  Year Dates 
                                                              Code---86                          

  blank                       05252000     Rejected---start   Loan                    Invalid    
                                           date is blank      Origination             Academic   
                                                              Reject                  Year Dates 
                                                              Code---86                          

  blank                       blank        Rejected---start   Loan                    Invalid    
                                           date and end date  Origination             Academic   
                                           blank              Reject                  Year Dates 
                                                              Code---86                          
                                                              appears twice                      

  09151999                    00000000     Rejected---end     Loan                    Invalid    
                                           date is all zeros  Origination             Academic   
                                                              Reject                  Year Dates 
                                                              Code---86                          

  00000000                    05252000     Rejected---start   Loan                    Invalid    
                                           date is all zeros  Origination             Academic   
                                                              Reject                  Year Dates 
                                                              Code---86                          

  00000000                    00000000     Rejected---start   Loan                    Invalid    
                                           date and end date  Origination             Academic   
                                           is all zeros       Reject                  Year Dates 
                                                              Code---86                          
                                                              appears twice                      
  --------------------------- ------------ ------------------ ------------- --------- ---------- -------------

**EXAMPLE**

**Scenario**: School transmits a Loan Origination Record for loan ID
999999999U00G99999001 with a valid academic year start date (09/15/1999)
and a valid end date (06/01/2000), and the Loan Origination Record is
accepted. The school later determines that the end date should be
05/28/2000. To correct this date, the school must submit a Change Record
to the LOC.

***(Note: In this example, we have added spaces between data fields for
ease of reading and have included only some of the fields contained in
the record layout. For actual record layouts, please refer to the Custom
Layout Section 1.)***

  ----------------------- ----------------------- -----------------------
  **Loan Origination                              
  Record (DESF00IN/Batch                          
  Type #D) contains the                           
  following fields:**                             

  **Loan Origination      **Academic Year Start   **Academic Year End
  Date\                   Date\                   Date\
  **19990801              **19990915              **20000601
  ----------------------- ----------------------- -----------------------

  -------------------------- ------------------ --------------- --------------
  **Loan Origination Change                                     
  Record (DESC00IN/Batch                                        
  Type #E) contains the                                         
  following fields:**                                           

  **\                        **Loan Identifier  **Change Field  **\
  Loan Identifier\           Error Code\        Number 01\      Value 01\
  **9999999999U00G99999001   **"blank"          **S122          **20000528
  -------------------------- ------------------ --------------- --------------

## 4.4.5 Modify Anticipated Completion Date Edits

**1999-2000 Modification:** Loan Origination Records should contain an
Anticipated Completion Date not more than 6 years past the Loan Period
Start Date.

Upon implementation, this modification affects 1999-2000 and forward.

Anticipated Completion Date is a required data element from a school to
originate a loan. This date is used by Servicing to start the
repayment/exit process (60 days prior), and to convert a loan to
repayment. The Anticipated Completion Date is sent to the LOC on the
Loan Origination Record.

**Currently, the Anticipated Completion Date cannot be 12 years or more
past the Loan Period End Date.** In addition, this date can be updated
by the school at two points in the Direct Loan process. The school can
send a Change Record to the LOC, or the school can update a Student
Status Confirmation Roster (SSCR) and transmit it to the National
Student Loan Database System (NSLDS).

**In 1999-2000, the Anticipated Completion Date** **cannot be more than
6 years past the Loan Period Start Date.** The Loan Origination Record
continues to contain the Anticipated Completion Date and this date is
stored by the LOC and passed on to the Central Database Subsystem (CDS)
once the loan is booked.

However, the LOC no longer accepts Change Records for this field. A
school can update and change this date only on a SSCR through NSLDS.

Since the LOC no longer accepts Change Records for this field, the
Change Field Transmit Number, S021---Student's Anticipated Completion
Date, is eliminated and no longer used in 1999-2000.

If the Student's Anticipated Completion Date is blank, all zeros, or not
a valid date, the Loan Origination Record is rejected with Loan
Origination Reject Code 85---Invalid Anticipated Completion Date.

If the Student's Anticipated Completion Date is more than 6 years past
the Loan Period Start Date, the LOC accepts the Loan Origination Record
and defaults the Anticipated Completion Date to 6 years past the Loan
Period Start Date. This default date is stored on the LOC database and
is the date passed on to CDS.

Any Anticipated Completion Date edits performed currently on Change
Records received by the LOC using Change Field Transmit Number
S033---Loan Period End Date---are discontinued for 1999-2000 and
forward.

**Note:** The Anticipated Completion Date on a Loan Origination Record
is passed to NSLDS only for the first booked loan for a specific
borrower at a specific school. All other date changes must go through
the SSCR process.

+-----------------------------------------------------------------------+
| **Business Rules:**                                                   |
|                                                                       |
| -   Student's Anticipated Completion Date continues to be a required  |
|     field on a Loan Origination Record and is sent by the school to   |
|     the LOC.                                                          |
|                                                                       |
| -   Student's Anticipated Completion Date:                            |
|                                                                       |
| -   must be a valid date, **CCYY/MM/DD**;                             |
|                                                                       |
| -   cannot be blank or all zeros, **0000/00/00**; and                 |
|                                                                       |
| -   if more than 6 years past the Loan Period Start Date, the LOC     |
|     defaults the date to 6 years past the Loan Period Start Date.     |
|                                                                       |
|     For 1999-2000, the date range for Student Anticipated Completion  |
|     Date is **19980101−20061231**.                                    |
|                                                                       |
| -   A school updates or changes the Anticipated Completion Date       |
|     through the SSCR process with NSLDS ONLY.                         |
|                                                                       |
| -   Anticipated Completion Date CANNOT be updated or changed at the   |
|     LOC.                                                              |
|                                                                       |
| -   The Change Field Transmit Number, S0**21**---**Student's**        |
|     **Anticipated Completion Date**---is eliminated and no longer in  |
|     use for 1999-2000 and forward.                                    |
|                                                                       |
| -   The Change Reject Code 85---Anticipated Completion Date---is      |
|     eliminated and no longer in use for 1999-2000 and forward.        |
|                                                                       |
| -   Change Records for Anticipated Completion Date are not to be      |
|     generated by the school's Direct Loan System and sent to the LOC. |
|                                                                       |
| -   The Anticipated Completion Date on a Loan Origination Record is   |
|     passed to NSLDS only for the first booked loan for a specific     |
|     borrower at a specific school. All other date changes must go     |
|     through the SSCR process.                                         |
|                                                                       |
| -   Any Anticipated Completion Date edits performed currently on a    |
|     Change Record received by the LOC, using Change Field Transmit    |
|     Number, S033---Loan Period End Date, are discontinued for         |
|     1999-2000 and forward.                                            |
+-----------------------------------------------------------------------+

**EXAMPLE**

**Scenario:** A school submits a Subsidized Loan Origination Record to
the LOC. The Student's Anticipated Completion date is all zeros and the
Loan Period Start Date is September 8, 1999. The Loan Origination Record
is rejected by the LOC, with a reject code of 85---Invalid Anticipated
Completion Date, since the date is all zeros. Remember, this is a
required field.

***(Note: In this example, we have added spaces between data fields for
ease of reading and have included only some of the fields contained in
the record layout. For actual record layouts, please refer to the Custom
Layout Section 1.)***

  ------------------------- ---------------- ------------ ----------------------
  **Full Loan Origination                                 
  Record (DESF00IN/Batch                                  
  Type #D) contains the                                   
  following fields:**                                     

  **Student's Anticipated                    **Loan       
  Completion Date(Field \#                   Period Start 
  16)\                                       Date (Field  
  **00000000                                 #20).\       
                                             **19990908   

  **Full Loan Origination                                 
  Acknowledgment                                          
  (DISF00OP/Batch Type #D)                                
  contains the following                                  
  fields:**                                               

  **\                       **Full Loan                   **Full Loan
  Loan Identifier\          Origination                   Origination Reject
  **999999999S00G99999001   Status Flag\                  Codes\
                            **B                           **85
  ------------------------- ---------------- ------------ ----------------------

**Scenario:** A school submits a Subsidized Loan Origination Record to
the LOC. The Student's Anticipated Completion date is May 30, 2007 and
the Loan Period Start Date is September 8, 1999. The Loan Origination
Record is accepted by the LOC, except the date is defaulted to no more
than 6 years past the Loan Period Start Date and is stored at the LOC as
September 8, 2005.

***(Note: In this example, we have added spaces between data fields for
ease of reading and have included only some of the fields contained in
the record layout. For actual record layouts, please refer to the Custom
Layout Section 1.)***

  ------------------------- --------------------- ------------ -------------------------
  **Full Loan Origination                                      
  Record (DESF00IN/Batch                                       
  Type #D) contains the                                        
  following fields:**                                          

  **Student's Anticipated                         **Loan       
  Completion Date(Field \#                        Period Start 
  16)\                                            Date (Field  
  **20070530                                      #20)\        
                                                  **19990908   

  **Full Loan Origination                                      
  Acknowledgment                                               
  (DISF00OP/Batch Type #D)                                     
  contains the following                                       
  fields:**                                                    

  **\                       **Full Loan                        **Full Loan Origination
  Loan Identifier\          Origination Status                 Reject Codes**
  **999999999S00G99999001   Flag\                              
                            **A                                
  ------------------------- --------------------- ------------ -------------------------

##  4.4.6 Implement a New Edit on Loan Period Start Date and End Date

**1999-2000 Modification:** The borrower's Loan Period Start Date and
End Date must be within the borrower's Academic Year Start Date and End
Date, and cannot exceed the borrower's academic year. The LOC performs
this new edit on all Loan Origination Records, and all Change Records
for the Loan Period Start Date and the Loan Period End Date.

Upon implementation, this modification affects 1999-2000 and forward.

Currently the loan period start and end date are not edited against the
borrower's academic year start and end date.

Starting in 1999-2000, both loan period and borrower's academic year are
required fields. Therefore, a new edit is performed on the Loan Period
Start Date (Field \# 20) and the Loan Period End Date (Field #21) to
ensure that the loan period is equal to or is within the borrower's
academic year. If the Loan Period Start Date or End Date exceeds the
borrower's academic year, the Loan Origination Record or Change Record
are rejected with a new Reject Code 92---Loan Period Start and End Dates
exceed the borrower's academic year dates.

+-----------------------------------------------------------------------+
| **Business Rules:**                                                   |
|                                                                       |
| -   The Loan Period must be within or equal to the academic year but  |
|     can not exceed the academic year.                                 |
|                                                                       |
|     **For example**: If a borrower's academic year starts 09/01/1999  |
|     and ends 05/15/2000:                                              |
|                                                                       |
| -   The borrower's loan period extending from 09/01/1999 to           |
|     01/30/2000 is acceptable.                                         |
|                                                                       |
| -   The borrower's loan period extending from 09/01/1999 to           |
|     05/15/2000 is acceptable.                                         |
|                                                                       |
| -   The borrower's loan period extending from 11/06/1999 to           |
|     03/25/2000 is acceptable.                                         |
|                                                                       |
| -   The borrower's loan period extending from 08/15/1999 to           |
|     03/25/2000 is NOT acceptable.                                     |
|                                                                       |
| -   The borrower\'s loan period extending from 10/01/1999 to          |
|     05/25/2000 is NOT acceptable.                                     |
|                                                                       |
| -   The loan period cannot be changed to dates outside of the         |
|     academic year start and end dates for the loan. Thus, a school    |
|     may need to change academic year dates first, and then change     |
|     loan period start and end dates if both sets of dates need to be  |
|     corrected.                                                        |
|                                                                       |
| -   The date range for loan period start date for 1999-2000 loans is: |
|                                                                       |
| > 07/02/1998 to 06/30/2000.                                           |
+-----------------------------------------------------------------------+

**EXAMPLE**

**Scenario**: School transmits a Loan Origination Record for loan ID
999999999S00G99999001 with an academic year start date of 09/15/1999 and
an end date of 06/01/2000, and a Loan Period Start Date of 08/25/1999
and a Loan Period End Date of 06/01/2000.

The Loan Origination Record is rejected with a Reject Code 92---Loan
Period Start and End Dates exceed the borrower's academic year dates
because the Loan Period Start Date of 08/25/1999 exceeds the borrower's
academic year for the loan. The school must verify and correct these
dates and then resubmit the Loan Origination Record.

***(Note: In this example, we have added spaces between data fields for
ease of reading and have included only some of the fields contained in
the record layout. For actual record layouts, please refer to the Custom
Layout Section 1.)***

  ----------------------------- ------------------ ------------------ ---------------
  **Subsidized/Unsubsidized**                                         
  **Loan Origination Record                                           
  (DESF00IN/Batch Type #D)                                            
  contains the following                                              
  fields:**                                                           

  **Loan Period**\              **Loan Period**\   **Academic Year\   **Academic
  **Start Date\                 **End Date\        Start Date\        Year**\
  **19990825                    **20000601         **19990915         **End Date\
                                                                      **20000601
  ----------------------------- ------------------ ------------------ ---------------

  --------------------------- ------------------------ ----------------------
  **Subsidized/Unsubsidized                            
  Loan Origination                                     
  Acknowledgment                                       
  (DISF00OP/Batch Type #E)                             
  contains the following                               
  fields:**                                            

  **\                         **Full Loan Origination  **Full Loan
  Loan Identifier**\          Status Flag\             Origination Reject
  9999999999S00G99999001      **B                      Reasons\
                                                       **92
  --------------------------- ------------------------ ----------------------