# Presentation: 662989

## Session #2

- National Student Loan Database System- NSLDS Aggregate Calculations
- Ron Bennett
- Anita O. Wojick

## Objectives

- Understand aggregate loan terms
- Identify loan types that impact aggregate limit calculations
- Calculate aggregate limits using NSLDS methodology
- Apply aggregate information to eligibility decisions

## Defining & Using Aggregates	

- NSLDS Loan Terms
- Outstanding Principal Balance (OPB)
- Aggregate amounts
- Aggregate Loan Information
- Loan Level Aggregate Principal Balance
- Why are NSLDS Aggregate amounts used?

## NSLDS Aggregate Totals

-  Calculation
-  Process

## Calculate Each Loan Type’s Loan Level Aggregate OPB

- NSLDS reviews loans in student’s financial aid history
- Categorizes each loan into respective loan type (e.g., bucket)

## Calculate Each Loan Type’s Loan Level Aggregate OPB, cont.

- Three main loan groupings:
- Recent loans
- Older loans
- Consolidation Loans

## Recent Loans

- May have adjustments not yet posted
- May have additional disbursements or adjustments not yet reported to NSLDS
- Included at end of calculation as Pending Disbursements

## Recent Loans, cont.

|  | Recent loans |
| --- | --- |
| Period End Date | Loan Period End Date plus 90 days has not yet passed |
| Loan Status | IA, ID, IG, IM |
| Aggregate Outstanding Principal Balance (Agg. OPB) | Greater of 
OPB, or
Disbursed Amount 
Not to exceed Net Loan Amount |

## Older Loans

- Included in Aggregate OPB calculations

|  | Older loans |
| --- | --- |
| Period End Date | 90 days or older |
| Loan Status |  |
| Aggregate Outstanding Principal Balance (Agg. OPB) | Lesser of 
Net Loan Amount, or
Disbursed Amount, or
OPB
If all are greater than zero |

## Aggregate OBP

## Subsidized Loan Aggregate Calculation Components

- Loan Types / Bucket: S**ubsidized**
- (from Loan Summary)
- Recent or Older Loans
- FFEL Sub
- Direct Stafford Subsidized
- Direct Consolidation Subsidized
-  Calc’d Sub
- CL – FFEL Consol. Calc’d Sub Aggr. OPB amount(s)

## Unsubsidized Loan Aggregate Calculation Components

- Loan Types/ Bucket:  **Unsubsidized**
- (from Loan Summary)
- Recent or Older Loans:
- FFEL Unsub Supplemental Loan (SLS)
- Federally Insured (FISL) FFEL Refinanced Loan
- Direct Stafford  Unsubsidized
- Direct Consolidation Unsub
- Calc’d Unsub
- FFEL Consol. Calc’d Unsub Aggr. OPB amount(s)

## Consolidation Loan Components

- When no underlying loans reported within 60 days of FAH review, loan level Agg. OPB is zero
- If CL over 60 days old and has no underlying loans, then whole CL treated as Subsidized
- CL falls under older loan category

## Consolidation Loans (CL) & Aggregate OPB

- Process to determine impact of CL on Aggregate OPB:
- 2A.Identify underlying loans
- 2B.Determine number of CLs & Totals
- 2C.Determine Calculated Agg. OPBs
- 2D.Determine CL;s Unallocated Agg. OPB
- 2E.Calculate CL’s Combined Loans Agg. OPB

## Identify CL’s Underlying Loans

| Step 1: Determine Loan Status | Loan Status is one of these: 
 PC		 PN 		 DN	
 DP		 PF |
| --- | --- |
| Step 2: Determine Loan Status Date | Loan Status Date: ________

Is Loan Status Date within 210 days (before or after) Consolidation Loan Date? 		 Yes		 No |
| Step 3: Underlying Loan? | If Loan Status is one listed in Step 1 and the answer to Step 2 is Yes, then loan is underlying loan. |

## Which are Underlying Loans?

## Determine Number of CLs and Totals

**FFEL Consolidation Loan Types**

**Perkins Loan Types**

**PLUS Loan Types**

## Determine Number of CLs and Totals

**Subsidized Loan Types**

**Unsubsidized Loan Types**

## Consolidation Loans & Totals

- Determine number of CLs = 2
- Sum Disbursed Amt of Loan Types
- Total CL Disbursed Amt: 			$39,000
- Total Subsidized Disbursed Amt:	$18,625
- Total Unsub Disbursed Amt:		$13,000

## Consolidation Loans & Totals, cont.

- Loans Not Factored into Aggregate OPB Loan Limits
- Total Perkins Disbursed Amt: 		$4,000
- Total PLUS Disbursed Amt:	$1,000

## Determine Calculated Agg. OPBs

- Calculate ratio for each Loan Type - percentage of CL attributable to Loan Type

- Sum of CL Disb Amts

- Sum of  Underlying Loans’ Disb Amts

- Ratio =

- Determine Calculated Agg. OPB amount for each CL

- Aggregate =

- Ratio 

- CL Guaranteed Amt

## Calculate CL Subsidized Agg. OPB

- Determine ratio for subsidized loans
- Total of underlying Sub Disbursement Amounts = $18,625
- Total of CL Disbursement Amounts = $39,000
- Ratio = $18625/$39,000 = 0.47756

## Calculate CL Subsidized Agg. OPB, cont.

- Determine Calculated Subsidized Aggregates(Ratio  Guaranteed Amount)
-  - Calculated Subsidized Aggregate for CL #4= $8,119(0.47756  $17,000)

## Calculate CL Subsidized Agg. OPB

- Calculated Subsidized Aggregate for CL #5=$10,506(0.47756  $22,000)

## Calculate CL Unsubsidized Agg. OPB

- Determine ratio for Unsubsidized loans
- Total of underlying Unsub Disbursement Amounts = $13,000
- Total of CL Disbursement Amounts = $39,000
- Ratio = $13,000/$39,000 = 0.33333

## Calculate CL Unsubsidized Agg. OPB, cont.

- Determine Calculated Unsub Aggregates(Ratio  Guaranteed Amount)
- Calculated Unsubsidized Aggregate for CL #4= $5,667(0.33333  $17,000)
- Calculated Unsubsidized Aggregate for CL #5= $7,333(0.33333  $22,000)

## Calculate Perkins Share of CL’s Agg. OPB

- Determine ratio for Perkins loans
- Total of underlying Perkins Disbursement Amounts = $4,000
- Total of CL Disbursement Amounts = $39,000
- Ratio = $4,000/$39,000 = 0.10256

## Calculate Perkins Share of CL’s Agg. OPB, cont.

- Determine Perkins Share of CL’s Aggregate OPB(Ratio  Guaranteed Amount)
- Perkins Share of CL #4 Aggregate OPB = $1,744(0.10256  $17,000)
- Perkins Share of CL #5 Aggregate OPB = $2,256(0.10256  $22,000)

## Calculate PLUS Share of CL’s Agg. OPB

- Determine ratio for PLUS loans
- Total of underlying PLUS Disbursement Amounts = $1,000
- Total of CL Disbursement Amounts = $39,000
- Ratio = $1,000/$39,000 = 0.02564

## Calculate PLUS Share of CL’s Agg. OPB

- Determine PLUS Share of CL’s Aggregate OPB(Ratio  Guaranteed Amount)
- PLUS Share of CL #4 Aggregate OPB = $436(0.02564  $17,000)
- PLUS Share of CL #5 Aggregate OPB = $564(0.02564  $22,000

## Calculate CL Unallocated Amounts

|  | Guaranteed Amount | $17,000 |
| --- | --- | --- |
| - | Total Perkins Share | $1,744 |
| - | Total PLUS Share | $436 |
| - | Calculated Sub Aggregate OPB | $8,119 |
| - | Calculated Unsub Aggregate OPB | $5,667 |
| = | Calculated Consolidation, Unallocated Aggregate OPB for CL #4 | $1,034 |

## CL Unallocated Amounts, cont.

|  | Guaranteed Amount | $22,000 |
| --- | --- | --- |
| - | Total Perkins Share | $2,256 |
| - | Total PLUS Share | $564 |
| - | Calculated Sub Aggregate OPB | $10,506 |
| - | Calculated Unsub Aggregate OPB | $7,333 |
| = | Calculated Consolidation, Unallocated Aggregate OPB for CL #5 | $1,341 |

## Calculate CL Combined Agg. OPB

- Combined Agg. OPB =
- Calculated Sub Agg. OPB + Calculated Unsub Agg. OPB

## Calculate CL Combined Agg. OPB, cont.

- Combined Agg. OPB (older loans) “adjusted” when:
- Underlying Perkins loans are factored out of Unallocated Amount
- Underlying PLUS loans are factored out of Unallocated Amount (for PLUS Borrower)

## Sum Loan Level Agg. OPBs by Loan Type

- Collect all loan level Agg. OPB numbers
- Roll individual calculated numbers into respective loan types

## Sum Loan Level Agg. OPBs by Loan Type, cont.

- Add in respective loan type’s pending disbursements
- Display each loan type’s Aggregate OPB Totals in Aggregate Loan Information section

## Combined Loan Amounts Roll-Up

## Evaluate Totals for Eligibility

## What have we learned?

## Resources: NSLDS Aggregate Training Workbook

- _[http://fsatraining.vangent.com/trainee/nslds.html](http://fsatraining.vangent.com/trainee/nslds.html)_

## Additional NSLDS Resources

- NSLDS for Financial Aid Professionals
- _[http://nsldsfap.ed.gov](http://nsldsfap.ed.gov/)_
- Information for Financial Aid Professionals (IFAP)
- Dear Colleague Letter GEN-96-13
- Dear Partner Letter GEN-03-12

## Contact Information

- We appreciate your feedback and
- comments. We can be reached at:
- Ron Bennett
- Phone:202-377-3181
- Email:ron.bennett@ed.gov
- Fax:202-275-0913
- Anita Wojick
- Phone:617-289-0130
- Email:_[anita.wojick@ed.gov](mailto:anita.wojick@ed.gov)_
- Fax:617-289-0153