# Presentation: 473463

## Session 20

***Session 20***

## Session 20

***Direct Loan Monthly Reconciliation***
***And***
***Program Year Close Out***

- Session 21-

##    Presenters

***Christine Grandy******	******Account Manager ******	******	******	******	******	******(CAM)-Region 3***
***Brad Sirstins******	******	******Loan Origination ******	******	******	******	******	******Center (LOC)***
***Isiah Dupree******	******	******Direct Loan Operations ******	******	******	******	******(DLOPS)***

- Session 21-

## What is Monthly Reconciliation?

-    The process of identifying differences  each month between the Direct Loan School Account Statement (DLSAS) or the732 report and your school’s internal records.

***What is Monthly Reconciliation?***

- Session 21-

## Schools That Perform  Monthly Reconciliation

- Saint Paul's College
- Virginia Polytechnic Institute and State University (VA Tech)
- University of Richmond

- Session 21-

**Notes:**
2) Virginia Polytechnic Institute and State UniversityBlacksburg, VA 24061, 
  Approximately 18,000 freshmen and 3,000 transfers. 
3)  Univ of Richmond 
2,950 undergraduate students from 48 states, Washington D.C., and 72 foreign countries.
 92% of students live on campus all four years. 

Approximate costs for 2001-02 for a full-time undergraduate student: 
Tuition	$22,570	
Room and Board	$4,730	
Total	$27,300	

64% of Richmond students receive some type of financial aid (need-based grants and loans, merit scholarships and/or athletic grants.) The average need-based financial aid package for first-year students in the 2000-2001 academic year was $14,162. 

## St. Paul's College

- EDExpress
- 732 Report
- 30 Day Warning Report

- Session 21-

**Notes:**
2) Virginia Polytechnic Institute and State UniversityBlacksburg, VA 24061, 
  Approximately 18,000 freshmen and 3,000 transfers. 
3)  Univ of Richmond 
2,950 undergraduate students from 48 states, Washington D.C., and 72 foreign countries.
 92% of students live on campus all four years. 

Approximate costs for 2001-02 for a full-time undergraduate student: 
Tuition	$22,570	
Room and Board	$4,730	
Total	$27,300	

64% of Richmond students receive some type of financial aid (need-based grants and loans, merit scholarships and/or athletic grants.) The average need-based financial aid package for first-year students in the 2000-2001 academic year was $14,162. 

## St. Paul's College Continued...

- Disbursement Roster
- Anticipated Disbursement Report
- Meeting with the Business office
- Comparing their internal system to
-     U. S. Department of Education reports

- Session 21-

**Notes:**
2) Virginia Polytechnic Institute and State UniversityBlacksburg, VA 24061, 
  Approximately 18,000 freshmen and 3,000 transfers. 
3)  Univ of Richmond 
2,950 undergraduate students from 48 states, Washington D.C., and 72 foreign countries.
 92% of students live on campus all four years. 

Approximate costs for 2001-02 for a full-time undergraduate student: 
Tuition	$22,570	
Room and Board	$4,730	
Total	$27,300	

64% of Richmond students receive some type of financial aid (need-based grants and loans, merit scholarships and/or athletic grants.) The average need-based financial aid package for first-year students in the 2000-2001 academic year was $14,162. 

## VA Tech

- Banner
- Direct Loan School Account Statement (DLSAS)
- TZRPDFA report in Banner by Fund Code
- Compare DLSAS to Internal Reports
- break the reports up by weeks and compare cash and loan data

- Session 21-

**Notes:**
2) Virginia Polytechnic Institute and State UniversityBlacksburg, VA 24061, 
  Approximately 18,000 freshmen and 3,000 transfers. 
3)  Univ of Richmond 
2,950 undergraduate students from 48 states, Washington D.C., and 72 foreign countries.
 92% of students live on campus all four years. 

Approximate costs for 2001-02 for a full-time undergraduate student: 
Tuition	$22,570	
Room and Board	$4,730	
Total	$27,300	

64% of Richmond students receive some type of financial aid (need-based grants and loans, merit scholarships and/or athletic grants.) The average need-based financial aid package for first-year students in the 2000-2001 academic year was $14,162. 

## VA Tech continued...

- Update internal spreadsheet with new LOC amounts
- Record any discrepancies
- File the Cash Receipts from LOC and Internal Cash Receipts Reports

- Session 21-

**Notes:**
2) Virginia Polytechnic Institute and State UniversityBlacksburg, VA 24061, 
  Approximately 18,000 freshmen and 3,000 transfers. 
3)  Univ of Richmond 
2,950 undergraduate students from 48 states, Washington D.C., and 72 foreign countries.
 92% of students live on campus all four years. 

Approximate costs for 2001-02 for a full-time undergraduate student: 
Tuition	$22,570	
Room and Board	$4,730	
Total	$27,300	

64% of Richmond students receive some type of financial aid (need-based grants and loans, merit scholarships and/or athletic grants.) The average need-based financial aid package for first-year students in the 2000-2001 academic year was $14,162. 

## University of Richmond

- Banner
- Direct Loan School Account Statement (DLSAS)
- Records (loan origination, change, and disbursement) sent three times a week
- Acknowledgements are loaded immediately

- Session 21-

**Notes:**
2) Virginia Polytechnic Institute and State UniversityBlacksburg, VA 24061, 
  Approximately 18,000 freshmen and 3,000 transfers. 
3)  Univ of Richmond 
2,950 undergraduate students from 48 states, Washington D.C., and 72 foreign countries.
 92% of students live on campus all four years. 

Approximate costs for 2001-02 for a full-time undergraduate student: 
Tuition	$22,570	
Room and Board	$4,730	
Total	$27,300	

64% of Richmond students receive some type of financial aid (need-based grants and loans, merit scholarships and/or athletic grants.) The average need-based financial aid package for first-year students in the 2000-2001 academic year was $14,162. 

## University of Richmond continued...

- Queries run on Banner
- Rejects handled immediately
- 30 Day Warning Report

- Session 21-

**Notes:**
2) Virginia Polytechnic Institute and State UniversityBlacksburg, VA 24061, 
  Approximately 18,000 freshmen and 3,000 transfers. 
3)  Univ of Richmond 
2,950 undergraduate students from 48 states, Washington D.C., and 72 foreign countries.
 92% of students live on campus all four years. 

Approximate costs for 2001-02 for a full-time undergraduate student: 
Tuition	$22,570	
Room and Board	$4,730	
Total	$27,300	

64% of Richmond students receive some type of financial aid (need-based grants and loans, merit scholarships and/or athletic grants.) The average need-based financial aid package for first-year students in the 2000-2001 academic year was $14,162. 

## Why Should You Perform  Monthly Reconciliation? 

- Easier to resolve issues with
- Cash
- Loans
- Easier to Close Out Program Year
- In the Regs - **Citations: (R)685.102****As Of Date: 12/31/99****Sec. 685.102** **Definitions.**** **

- Session 21-

**Notes:**
2) Virginia Polytechnic Institute and State UniversityBlacksburg, VA 24061, 
  Approximately 18,000 freshmen and 3,000 transfers. 
3)  Univ of Richmond 
2,950 undergraduate students from 48 states, Washington D.C., and 72 foreign countries.
 92% of students live on campus all four years. 

Approximate costs for 2001-02 for a full-time undergraduate student: 
Tuition	$22,570	
Room and Board	$4,730	
Total	$27,300	

64% of Richmond students receive some type of financial aid (need-based grants and loans, merit scholarships and/or athletic grants.) The average need-based financial aid package for first-year students in the 2000-2001 academic year was $14,162. 

## Tools You Can Use To Perform Monthly Reconciliation 

- DLSAS
- 732
- 30 Warning Report
- LO-Online Website:http://lo-online.ed.gov
- Compare Programs (CAMs’ or Your Own)

- Session 21-

**Notes:**
2) Virginia Polytechnic Institute and State UniversityBlacksburg, VA 24061, 
  Approximately 18,000 freshmen and 3,000 transfers. 
3)  Univ of Richmond 
2,950 undergraduate students from 48 states, Washington D.C., and 72 foreign countries.
 92% of students live on campus all four years. 

Approximate costs for 2001-02 for a full-time undergraduate student: 
Tuition	$22,570	
Room and Board	$4,730	
Total	$27,300	

64% of Richmond students receive some type of financial aid (need-based grants and loans, merit scholarships and/or athletic grants.) The average need-based financial aid package for first-year students in the 2000-2001 academic year was $14,162. 

## Program Year End Reconciliation

- Session 21-

## What is Reconciliation at the Loan Origination Center?

***What is Reconciliation at the Loan Origination Center?***

- The process of identifying and assisting schools in their monthly reconciliation and annual program year close out efforts through
-         - Balance verification
- - Training
- - Site visits

- Session 21-

## What is Rapid Reconciliation?

***Applying the same efforts to close out***
***Program Year 2001-2002 ***
***by ***
***December 31, 2002***

- Session 21-

## Reconciliation Status

**1999/2000**
- Balance Verification Process
- Appeal Process
- Program Year Close Out letters
- March 8, 2002 deadline to submit batch information

- Session 21-

## Reconciliation Status

**2000/2001**
- Program Year Close Out is July 31, 2002
- Metrics
- Common Procedures
- Status Letters
- Site Visits
- Appeal Letters*** ***

- Session 21-

## Reconciliation Status

**2001/2002**
- Program Year Closeout is December 31, 2002
- Metrics
- Common Procedures
- Status Letters
- Balance Verification
- Site Visits
- Appeal Letters** **

- Session 21-

## Reconciliation Status

**2001/2002 continued**
- Schools that use a Borrower Based Academic Year (BBAY)
-    will be allowed to continue to send disbursements records for
-    processing by the LOC for a period of time beyond the
-    December 31, 2002 closing date.
- These schools must remember that they must still follow the
-    normal procedure of:
- Reporting disbursement to the LOC within 30 days of
-   disbursement and
- Returning excess cash within three business days of receipt.

- Session 21-

## Reconciliation Status

**2001/2002 continued**
- Program Year Closeout Letters mailed to schools as schools confirm zero ending cash balance
- Selectively stop receiving and processing batch data at the LOC
- Outstanding issues will be reviewed by ED for further action.
- Establish repayment agreements through The Office of the Chief Financial Officer (OCFO)

- Session 21-

## Reconciliation/Rapid Reconciliation and Program Year Close Out

**Confirming Close Out**
- Schools will confirm they have completed Program Year Close Out
- Processing at LOC will be stopped for that year
- GAPS processing will be stopped for that year
- Close Out letters will be sent
- Schools can choose to stop receiving the 732

- Session 21-

## Recap of Available Resourses

***Training by the CAMS***

- Session 21-

## Telephone Consultations

***Available Resourses continued***

- Session 21-

## Available Resourses continued

***Available Resourses continued***

- Session 21-

## Available Resourses continued

- Direct Loan Bulletins
- Status Letters
- Balance Verification Letters
- Confirmation and Appeal Letters

- Session 21-

## Available Resourses continued

***   ******On Site Visits by the CAMS and the LOC***

- Session 21-

## The Final Process continued..

- A letter will be sent to the school’s president requesting payment of the amount, plus interest.  The letter will outline the school’s appeal rights.
- If an appeal is filed and the balance still remains unresolved, the matter will be sent to an Administrative Law Judge for resolution.

***The Final Process continued..***

- Session 21-

## The Final Process continued..

- Schools with positive balances have or will receive a letter requesting payment of  the ending cash balance plus interest.
- Schools with negative balances are being contacted by the LOC.** **

***The Final Process continued..***

- Session 21-

**Final Program Review Determination (FPRD) Letter**
- The FPRD is sent to the President of the school
- The school has 45 days to appeal the FPRD
- SCHOOLS MUST RETURN THEIR APPEALS WITHIN 45 days.
- Unresolved issues outlined in the appeals returned within the 45 days will be researched and processed by ED.
***	***

***The Final Process continued..***

- Session 21-

**Notes:**
School is recommended by the Department to be sent to CMO for a program review.
The FPRD is sent to the President of the school
The school has 45 days to appeal the FPRD
During this 45 day period, the Department will not process any data for the school without authorization from CMO.

## The Final Process continued..

**Repayment Options**
- Pay the amount immediately to the LOC.
- Request a repayment agreement with ED for the payoff the amount.
- Request ED to offset the positive balance by reallocating a confirmed negative balance from another program year.

- Session 21-

## The Final Process continued..

**Volunteer Request for Repayment Plan**
- Schools can request a repayment plan for any program year
- Request is sent by the school to Direct Loan Operations (DLOPS)
- School receives a letter from DLOPS with additional instructions.

- Session 21-

## The Final Process continued..

- Request is received by the Department of Education’s Chief Financial Office (OCFO)
- The final scheduling of repayment is finalized between the school and OCFO.
- Interest is assessed by the OCFO.
- Schools are billed by OCFO and payments are sent directly to OCFO.

- Session 21-

## What Happens to your Ending Cash Balance at the LOC?

- The account balance is flagged as being transferred to OCFO.
- The LOC will send a letter to the school verifying that an Accounts Receivable has been established with OCFO.
- The final LOS 732 Report will report that the balance has been transferred to OCFO.
- This report will be sent out to the school.

***What Happens to your Ending Cash Balance at the LOC?***

- Session 21-

## QUESTIONS

- Session 21-

## Contact Telephone Numbers

**Your Customer Service Representative or Reconciliation Accountant at the LOC**
** ****(800) 848-0978 or **
**loan_origination@mail.eds.com**
**	**
**Your regional Client Account Management Staff (see list on following slide)**
**Direct Loan Operations  (202) 377-3137**
**                                                ****(202) 377-3144****  **
**	****	****                          ****(202) 377-3147**

- Session 14 -

## Regional CAM Contact 

_**Region**_**	****	****	**_**States**__**	**_**	****	****	**_**Number**_
**I-Boston****	****    CT, MA, ME, NH, RI, VT****	****	****(617) 565-6911**
**II-New York****	****    NJ, NY, PR, VI****	****	****	****(718) 488-3660**
**III-Philadelphia****	****    DC, DE, MD, PA, VA, WV****	****	****(215) 656-5929**
**IV-Atlanta****	****    AL, FL, GA, KY, MS, NC, SC, TN****	****(404) 562-6259**
**V-Chicago****	****    IL, IN, OH, MI, WI****	****	****	****(312) 886-8766**
**VI-Dallas****	****    AR, LA, NM, OK, TX****	****	****	****(214) 880-2405**
**VII-Kansas City****	****    IA, KS, MO, NE****	****	****(816) 880-4090**
**VIII-Denver****	****    CO, MN, MT, ND, SD, UT, WY****	****(303) 844-3677**
**IX-San Francisco  AZ, CA, HI, NV****	****	****	****(415) 556-4201**
**X-Seattle****	****    AK, ID, OR, WA****	****	****	****(206) 615-2637**

- Session 14 -