# Presentation: 662978

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## Session 39

***Direct Loan Origination Update***

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## Current Processing Update 
Customer Service Enhancements
Interest Rebate
LO-Online Changes
2001-2002 Batch Changes
Reconciliation Update

- Customer Service Enhancements
- Interest Rebate
- LO-Online Changes
- 2001-2002 Batch Changes
- Reconciliation Update

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## LO Records Processed

***LO Records Processed***

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## P-Notes Processed

***P-Notes Processed***

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## Disbursements Processed

***Disbursements Processed***

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## Current Processing Updates

- Paper Manifests are returned regular mail
- Borrowers are receiving an interest rebate without changes to school systems
- Visited schools to learn about various processes
- 732 report
- Established a schedule
- Produced the report for current Program Year

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## Customer Service Enhancements

- Database Check of MPN ID’s
- Created a CSR Career Path
- Attract longer term people to the job
- Allow enhanced salary options
- School Visits to the LOC
- Schools listen to calls
- Review calls and update training material

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## Customer Service Enhancements

- Requesting 3rd Party Vendor software training materials
- New CSR Monitoring Software
- Records conversations for playback and review
- Used for training enhancements

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## What’s New

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## Interest Rebate

- Current year (PY 00-01)
- All changes made in Servicing System
- LO is notifying borrowers
- Updates available in Servicing in November

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## Interest Rebate

- Future years
- Rebate calculated during origination process
- Borrower’s “cash in hand” will increase
- New data elements on LO record
- Details in the DL Technical Reference
**USE THE ROUNDING RULES IN THE TECH REF!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!**

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## Entrance Counseling

- On the LO Web site November 2000
- Students
- Access site by using their existing PIN or by providing name, SSN, and date of birth
- Enter the school or schools they would like to view the results
- Walk through counseling and take the quiz
- Results are stored at the LOC

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## Entrance Counseling

- Schools
- View results from their students online
- Results retrieved by entering SSN or a date range

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## Data Changes over the Web

- Demographic Changes
- Implemented in September 2000
- Loan Origination/Change Records
- February 2001
- Change data for all program years
- The LOC will not send an acknowledgement back to schools

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## Data Changes over the Web

- Disbursement/Adjustment Records
- Restricted access
- On-line changes will be included in DLSAS and 732 reports

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## Data Changes over the Web

- Why is disbursement change restricted?
- The disbursement sequence number would be automatically generated by the on-line update
- If a school generates a disbursement change through the batch process, a disbursement sequence number would be generated
- This could cause duplicate disbursement sequence numbers and the record would reject
- Working on a process on how to allow any disbursements/changes

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## Data Changes over the Web

- Knowing what has been changed
- Capability to query for changes and save them from the web site
- SSN
- Loans
- Date range
- Access to online historical view of data changes

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## Web Enhancements for 2001-2002

- Dependency status
- On the loan detail page instead of the person detail page
- E-mail addresses
- Display e-mail address passed to the LOC
- 1st Disbursement
- Includes the flag that indicates the first disbursement on the disbursement detail page

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## Web Enhancements for 2001-2002

- MPN on file
- Displays there is an MPN on file and also includes the expiration date
- Reports
- Schools will be able to indicate over the web if they no longer want a specific report
- Can select a format for receipt of report
- A “Help File” will be available on the web site for common batch processing errors

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## 2001-2002 Batch Changes

- Loan Origination Changes
- Schools who do not do drawdowns are required to change anticipated disbursements with LAA changes
- Credit checks for PLUS loans will be acknowledged in a single cycle
- Upfront Interest Rebate
- First Name Processing Modified
- New Grade Level Value Processing

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## 2001-2002 Batch Changes

- New fields on LOR
- E-mail Address (field #149)
- Interest rebate field has been added for each Anticipated Disbursement

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## 2001-2002 Batch Changes

- Disclosure Statements
- On the loan level:
- Giving gross loan amount, loan fee, interest rebate, and net loan amount
- Net loan amount=gross loan-loan fee+interest rebate
- On disbursement level:
- Net disbursement amount
- Anticipated disbursement date

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**Notes:**
The Interest rebate is subtracted from the loan fee first and then the net loan amount is calculated by subtracting that amount from the Gross Loan amount.

## 2001-2002 Batch Changes

- Software Testing
- Beginning in January
- Test with any software vendor or Mainframe school
- Requires a test G-code
- Requirements and processes are being reviewed
- Plans are to post successful testers on the LO Web

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## Reconciliation Update

- Program Years 1995/1996 and 1996/1997
- Accounted for 99.98% of disbursement records for the $15.8 billion drawn down by 1269 schools

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## Reconciliation Update

- Program Year 1997/1998
- Accounted for 99.9% of disbursement records for the $9.4 billion drawn down by 1211 schools
- Will send bills to schools with an ending cash balance by the end of December
- Will send close-out letters to schools with a zero balance
- Will close schools at the LOC

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## Reconciliation Update

- Program Year 1998/1999
- Accounted for 99.8% of disbursement records for the $9.6 billion drawn down by 1199 schools
- The process for sending bills and close-out letters will be the same.
- The final dates will be determined

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## Questions

- If you have technical questions, please send them to: loan_origination@mail.eds.com
- Use a subject line of “Technical question”
- Answers will be returned within 3 business days
- If an answer cannot be given within 3 business days, you will be notified
- Please include your name, organization, and a phone number

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## Loan Origination Contacts

- E-Mail Address:
-  loan_origination@mail.eds.com
- School Relations at the LOC:
- 1-800-848-0978
- School Relations Fax:
- 1-800-557-7396
- School Relations at the Servicing Center:
- 1-888-877-7658

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