# Presentation: 680549

## Session #42

**What’s New in Direct Loans**
**for 2008-2009**
- Lisa DiCarloJulie Aloisio
- Cynthia Battle

**Notes:**
Welcome/Introductions
Housekeeping notes
	Turn off all cell phones, blackberry units, etc.
	Evaluations are in conference booklet.  Please fill them out and drop in the box or at the registration desk.
	Emergency Exits are located:

## Session Outline

**Session Outline**

**March 2008 Release Updates**
**MPN Updates**
**Origination Fee Update Reminder**
**Tools and Training**
**Direct Loan Servicing**

**Notes:**
We will cover a number of items today particularly what will be coming up in the COD system for 2008-2009.
We will talk about some of the recent changes put in place at Direct Loan Serivcing.

## March 2008 Release Updates

- Inconsistent Identifiers
- Edit 16 Changes
- Additional Unsubsidized Indicator
- Award Discharges & MPN Expiration Date

**Notes:**
There are four key changes affecting Direct Loan Processing this year.  The first two center around stronger editing between PLUS for Parents and PLUS for graduate/professional students.

We are also adding the Additional Unsubsidized Indicator back into the records submission process and providing better MPN expiration data in the case of discharged awards.

## Inconsistent Identifiers

- New Edits only applicable to award years 2008-2009 and forward

| Edit | Edit Code | Block | Message | Award Type Affected |
| --- | --- | --- | --- | --- |
| 147 | R | Person | Identifier inconsistency for PLUS Award for Graduate/Professional Student | DL-PLUS |
| 148 | W | Person | First Name inconsistency for a PLUS Award for Graduate/Professional Student | DL-PLUS |
| 149 | R | Person
Award | Identifier inconsistency for PLUS Award for Parent of a Dependent Undergraduate Student | All |

**Notes:**
In 2006 as a result of HERA, we added a new borrower type to the PLUS loan. We implemented this pretty quickly given the small window from legislation to effective date, so we built using the existing PLUS processing.  

For 2008-2009, we are putting better measures and edits in place to ensure accurate borrower information and give schools better information in the case of rejected records so you can more easily figure out what is wrong.

These 3 edits will be added to help ensure student/borrower identifiers remain in sync.

## Edit 147

- For a Grad PLUS award (Student and Borrower SSN match), all identifier information must match.

| Student |
| --- |
| <LastName> |
| <BirthDate> |
| <SSN> |

| Borrower |
| --- |
| <LastName> |
| <BirthDate> |
| <SSN> |

**MUST MATCH**

| Edit | Edit Code | Block | Message | Award Type Affected |
| --- | --- | --- | --- | --- |
| 147 | R | Person | Identifier inconsistency for PLUS Award for Graduate/Professional Student | DL-PLUS |

**Notes:**
147 is triggered if Student and Borrower SSN on the incoming record or as previously recorded in COD match (meaning this is a Grad PLUS), but any of the other identifiers do not. 

This edit is also in play if a changes is made to both blocks, but the change does not match, we will reject it.

## Edit 148

- For a Grad PLUS award (Student and Borrower SSN match), first name should match.

| Student |
| --- |
| <FirstName> |

| Borrower |
| --- |
| <FirstName> |

**MUST MATCH**

| Edit | Edit Code | Block | Message | Award Type Affected |
| --- | --- | --- | --- | --- |
| 148 | W | Person | First Name inconsistency for a PLUS Award for Graduate/Professional Student | DL-PLUS |

**Notes:**
Edit 148 is a warning edit only.  In this case, we will let the school know that all the key identifiers are the same, but they submitted a first name that is different between student and borrower blocks.

This is just a warning to let you know that there may be a mistake in their records.

## Edit 149

- For a Parent PLUS award (Student and Borrower SSN do not match), all identifier information must be different for the Student and the Borrower.
- Student and Borrower Date of Birth (DoB) change must not match
- Student DoB change must not match what exists on COD for Borrower DoB**AND** no Borrower DoB change tag is submitted
- Borrower DoB change must not match what exists on COD for Student DoB**AND** no Student DoB change tag is submitted
*This can be triggered by all award programs!*

| Edit | Edit Code | Block | Message | Award Type Affected |
| --- | --- | --- | --- | --- |
| 149 | R | Person
Award | Identifier inconsistency for PLUS Award for Parent of a Dependent Undergraduate Student | All |

**Notes:**
On the PLUS for parent side, we also comparing identifiers a little more closely.  In this case, if the SSNs are different, but DOB is not, then we will reject for Edit 149.  We don’t edit on last name because parents and students in many cases, will have the same last name.

Also, if a school makes a change in the student block to match the borrower data, and there is no change in the borrower block, Edit 149.  The same thing can happen in the borrower block.

NOTE: This can be triggered by ALL program types because borrowers and students can have other awards.  There is an example on the next slide.

## Edit 149 Example

- Borrower B created on COD for PLUS award
- Borrower B (*Student B on Pell award) *submits a Date of Birth change

| Parent PLUS |  |
| --- | --- |
|    Student A | 01/01/81 |
|    Borrower B | 02/02/55 |

| Pell |  |
| --- | --- |
|    Student B | 01/01/81 |

- Borrower B Date of Birth now matches Student A - ***This will trigger Reject Edit 149!***

## Edit 16 Changes

- Edit 16 has been divided into 4 new edits.
- Only applicable for award years 2008-2009 and forward

- Edit 16 will only be triggered for award years 2007-2008 and prior

**Notes:**
Currently Edit 16 has several conditions that can cause it to trigger.  This will stay in place for 2007-2008 and prior.  

Going forward, the edits will be broken out to isolate the problem and help you better identify why the record is rejecting.

## Edit 16 Changes

| Edit | Edit Code | Block | Message | Award Type Affected |
| --- | --- | --- | --- | --- |
| 150 | R | Award | Incorrect Student Grade Level on a Direct Loan PLUS Award for Graduate/Professional Student | DL-PLUS |
| 151 | R | Person | Invalid Student/Borrower SSN combination on a Direct Loan PLUS Award for Graduate/Professional Student | DL-PLUS |
| 152 | R | Person | Invalid Student SSN change on a Direct Loan PLUS Award for Parent of a Dependent Undergraduate Student | All |
| 153 | R | Award | Invalid Borrower SSN change on a Direct Loan PLUS Award for Parent of a Dependent Undergraduate Student | All |

**Notes:**
Edit 150:  Straightforward edit where student and borrower SSNs are the same, then grade level must be 6 or 7.  Also, if you attempt to change it something less than 6, it will also reject.

Edit 151: If a SSN change tag is submitted in student block only, we will reject with Edit 151.  It doesn’t matter what the value in the tag is.  If there is not a change in the borrower block as well, we will reject.  Note that we currently allow the change to be in the borrower block only.  This is still the case.  This is because in the case of Grad PLUS, the COD System looks at the borrower block as the root and will update the student SSN as well.  From the school’s perspective, we suggest to change both to the extent possible.

Edit 152: If SSNs are different, and a change tag is submitted in the student block only, we will check to make sure that the change doesn’t match the borrower data.  We will also check if a change is submitted in both student and borrower block, that those change won’t make the student or borrower information the same.

Edit 153: If there is change record to an existing PLUS loan and there is a change in the borrower block only, we will check to make sure the change doesn’t match the student data.

Note that 152 and 153 can be triggered for all of the other award types.

## Edit 153 Example

- Borrower B created on COD for PLUS award
- Borrower B (*Student B on ACG award) *submits an SSN change

| Parent PLUS |  |
| --- | --- |
|    Student A | 111223333 |
|    Borrower B | 777889999 |

| ACG |  |
| --- | --- |
|    Student B | 111223333 |

- Borrower B SSN now matches Student A - ***This will trigger Reject Edit 153!***

**Notes:**
Similar to the Edit 149 (Identifier Inconsistency for PLUS for Parent), we will reject a change in other award types if the change will make the SSN match between parent borrower and student.

## Edit 16 Changes

- A new Edit will be added

| Edit | Edit Code | Block | Message | Award Type Affected |
| --- | --- | --- | --- | --- |
| 159 | R | Award | Incorrect Student Grade Level for a Parent PLUS award | DL-PLUS |

- Only applicable for award years 2008-2009 and forward

**Notes:**
While working through these additional edits, we will also add an edit to ensure parents aren’t borrowing for graduate level students.

Edit 159 will trigger if SSNs are different, and the grade level of the student is  >=6 (which indicates a parent is trying to borrow a PLUS loan for a graduate student).  PLUS for parents, the student  must have a grade level under 6.

## Additional Unsubsidized Indicator

**<DependencyStatusCode>**
- Required for ***all*** Direct Loans
- Valid values: “D” or “I”
- Blank or other values will trigger Reject Edit 996

**<AdditionalUnsubsidizedIndicator>**
- Required for Unsubsidized Direct Loans
- Valid values: “true” or “false”
- Blank or other values will trigger Reject Edit 998

- Edit 994 will be triggered for missing tags

**Additional Unsubsidized Indicator**

**Notes:**
The additional unsubsidized indicator set by schools is something we have heard schools ask for and are happy to implement with release 7.0.
Notice here that Dependency Status is becoming a required field as part of that change. It will be required on all  subsidized and unsubsidized originations. It will not be required on change records..
COD will use the status stored in the system if no dependency is submitted on a change record. If a school does wish to change the Dependency  status the value will have to be submitted via common record record submission. COD will not pull Dependency Status changes from CPS records.
The Additional Unsubsidized Indicator will be required on all Unsubsidized originations. It will not be required on change records.
COD will not retroactively populate the Add. Unsub Indic. For awards on the COD system prior to 08-09. For those COD will continue to calculate the AUI for the purpose of sending the flag to Servicing.
Remember that all Independent Students are always eligible for the combined annual loan limit so their eligibility flag for AUI will always be False.

Please note that blank and other values will trigger edit 998 not 996 as it shows in your book.

## Additional Unsubsidized Indicator

- <DLLoanInformation LoanKey="1“>	*<!—Loan Information-->*</DLLoanInformation>
- <DLUnsubsidized>	<FinancialAwardYear>	<CPSTransactionNumber>	<FinancialAwardAmount>	<LoanKey>**	****<AdditionalUnsubsidizedIndicator>****	****<DependencyStatusCode>**
**	**<FinancialAwardNumber>	<FinancialAwardID>	<FinancialAwardCreateDate>	<Disbursement> 		*<!—Disbursement  Information-->*	</Disbursement></DLUnsubsidized>

**Loan Key**

**Award**

**Disbursement**

**Additional Unsubsidized Indicator**

**Notes:**
This slide is showing us how the Additional Unsubsidized Indicator will look in the common record.

Most Financial Aid Administrators won’t se this so no worries if it does not look familiar.

## Additional Unsubsidized IndicatorNew Edits

| Edit | Edit Code | Block | Message | Award Type Affected |
| --- | --- | --- | --- | --- |
| 154 | R | Award | Dependency Status set to D and Grade Level greater than or equal to 6 |  DL |
| 156 | R | Award | Dependency Status set to I and Additional Unsubsidized Indicator set to true | DL |
| 157 | R | Award | Sum of Award Amounts exceeds Base Annual Loan Limit | DL |
| 158 | R | Award | HPPA Indicator set to true and Grade Level less than 6 | DL |

**Additional Unsubsidized Indicator****New Edits**

**Notes:**
Beginning with release 7.0 new edits will be introduced to limit the amount of funds awarded to students the school has indicated will not be receiving additional unsubsidized funding.
The new edits will be based on combinations of the AUI, Dependency Status, Grade Level and Award Amount. The new edits are all at the award level but on different tags so more than one edit could be received.
154 – A student cannot have a Dep. Status of D, dependent, and a Grade Level of 6 or higher on either an origination or change record.
156 – A student cannot have a Dep. Status of I and an  AUI of True on an origination or change record.
157 – If the sum of the sub and unsub loans exceeds the Base Annual Loan Limit for a Dep. Undergraduate who the school has indicated will not be receiving add. Unsub awards. Dep. Status D and grade level 5 or less and AUI False. This is the edit that will be returned. We will look at some examples in a minute.
158 – A student cannot have the HPPA Indicator set to True and a Grade level of 5 or less.
Just as an FYI, students who are eligible for the higher PPCI amounts must have both the PPCI and the AUI set to true. 
No changes to edit 39. New edit 157 is just for dep undergrads elig for base 

## Annual Loan Limits

| Grade Level | Base Annual Loan Limit | Combined Annual Loan Limit |
| --- | --- | --- |
| 0, 1 | 3,500 | 7,500 |
| 2 | 4,500 | 8,500 |
| 3, 4, 5 | 5,500 | 10,500 |
| 6, 7 | 8,500 | 20,500 |

**Notes:**
This is just a reminder of the loan limits that are in effect for loans originated on or after July 1, 2007, you can see this on page of your big book if you want to follow along as we go thru the examples. There have been no changes to this. Are there any questions? Do we need to walk through them?

## Additional Unsubsidized IndicatorEdit 157 Example

**Additional Unsubsidized Indicator*****Edit 157 Example***

| Award Type | Number | Dependency Status | AUI | Award Amount | Award Result | Reject Edit |
| --- | --- | --- | --- | --- | --- | --- |
| Sub | 001 | D | N/A | 4500 | A | N/A |
| Unsub | 002 | D | false | 6000 | R | 157 |
| Unsub | 002  | D  | false | 1000 | A | N/A |
| Unsub | 002 | D | true | 6000 | A | N/A |

- A series of origination and maintenance records are submitted for a Student in Grade Level 5.*His base limit is $5,500, combined limit is $10,500.*

**Notes:**
Let’s look at this 1st example. You can reference the loan limits on page  if you have your books open.
This student is a grade level 5, so as we can see, the base limit is $5500 and the combined is $10,500.
We send in an orig for a sub with dep. D AUI is NA since this is a sub for the amount of $4500 and it is accepted.
Next we send in an unsub, with dep. D, AUI for false for $6000 and this receives edit 157, because this is a dependent undergrad who is not eligible for Additional unsub funds, so we look only at the base limit.
We send in a change to the unsub lowering the loan amount to $1000 and it is accepted because the $4500 sub and the $100 unsub take us to the limit of $5500.
Then a change is sent in for the unsub award changing the AUI to true and adjusting the amount to $6000. This is accepted because the sub $4500 and the unsub of $6000 go just to the $10500 limit.

Any questions?

## Additional Unsubsidized IndicatorEdit 157 & Edit 039

**Additional Unsubsidized Indicator****Edit 157 & Edit 039**

*If the highest applicable loan limit is greater than the Base Annual Loan Limit, then the COD System will employ Reject Edit 039 logic.*

- Suppose series of origination and maintenance records are submitted for a Student in Grade Level 5.

| Award Type | Number | Dependency Status | AUI | Award Amount | Award Result | Reject Edit |
| --- | --- | --- | --- | --- | --- | --- |
| Sub | 001 | D | N/A | 4500 | A | N/A |
| Unsub | 002 | D | true | 6000 | A | N/A |
| Unsub | 002  | D  | true | 6100 | R | 039 |

**Notes:**
Again, we have a student at grade level 5 so we are looking at the same limits we did previously, $5500 as a base limit and $10500 as a combined limit.
Initially a sun for $4500 id sent in with a dep. Status of D, AUI is NA on sub awards and it is accepted as the $4500 is under the base limit.
An unsub is sent in with Dep. status of D, the AUI of true and an award amount of $6000. This is accepted since the $4500 and the $6000 take us to the $10500 limit.
A change to the unsub is submitted adjusting the award amount to $6100, which is rejected with edit 39, because we are looking at the combined limit, which this student has exceeded by $100. The $4500 sub award and the $6100 unsub take us to $10,600.

Any questions?

## Award Discharges, MPN Expiration Date

**Award Discharges, MPN Expiration Date**

- Upon award discharge, the COD system will update associated MPN(s) as follows:

| Discharge Code | Message | MPN Expiration Dates Updated for... |
| --- | --- | --- |
| D | Death | All MPNs for Borrower |
| G | Unauthorized Signature/Unauthorized Payment | MPN associated with specified loan |
| I | Identity Theft | MPN associated with specified loan |

**Notes:**
When an award is discharged due to Death, Unauthorized payment or Identity Theft, the MPN expiration date will be updated. Currently the MPN is marked as inactive but the expiration date is not updated.
A clean up will be done to update all MPNs that were inactivated due to discharges.

## Discharge ReversalRecalculating MPN Expiration Date

**Discharge Reversal****Recalculating MPN Expiration Date**

| If MPN associated with the discharged loan... | MPN Expiration Dates Will be recalculated as follows... |
| --- | --- |
| Not linked to any loans with funded disbursements or is unlinked | 365 days from MPN Received Date |
| Linked to any loan with funded disbursements | 3,650 days from MPN Received Date |
| (Due to death) is linked  to any awards with accepted and funded disbursements | 3,650 days from MPN Received Date |

**Notes:**
What this slide is telling us in a nutshell is that if a reversal to a discharge is received, the MPN expiration date will go back to what it was before the discharge.

Any questions?

## Discharge ReversalRecalculating MPN Status

**Discharge Reversal****Recalculating MPN Status**

| Condition(s): |  | Updated MPN Status |
| --- | --- | --- |
| New MPN Expiration Date <= Current Processing Date |  | Inactive |
| Recalculated MPN Expiration Date > Current Processing Date | MPN is linked to an award | Active |
|  | MPN not linked to an award | Pending |

**Notes:**
This slide shows us that the status of the MPN will go back to what it was before the discharge if a reversal takes place.

## DL Rebuild File Impacts

- New fields added:
- Additional Unsubsidized Indicator (position 164)
- MPN Expiration Date (positions 926-933, length = 8)
- Pre-Professional Coursework Indicator (position 934)
- Positions 926-958 were previously filler
- No change to record length
- Associated updates will be made to DL Tools

**Notes:**
Given some of the new fields, we have updated the DL Rebuild file accordingly.

As a reminder, the DL Rebuild file will provide you the ability to rebuild your database based on what is on the COD System at the time the file is generated for you.
It is extremely important to back up your data to protect from complete loss, but if it should occur, the Rebuild file is an option to restore most of the lost data.

## Session Outline

**Session Outline**

**March 2008 Release Updates**
**MPN Updates**
**Origination Fee Update Reminder**
**Tools and Training**
**Direct Loan Servicing**

## Requiring MPNs Before Disbursement

**Requiring MPNs Before Disbursement**

- Beginning in March 2008, all schools will be required to have an accepted MPN on file at COD before actual disbursements can be accepted for the associated Direct Loan award.

**Notes:**
This slide is pretty straightforward. Beginning in March of 2008 if actual disbursements are sent in and there is not MPN on the system edit 81 will be returned rejecting the disbursement.

## Requiring MPNs Before Disbursement

**Requiring MPNs Before Disbursement**

***Advance Funded School***
*Anticipated Disbursement handling is not changed*
*Actual Disbursements will be rejected if there is no MPN on the system*
*May still draw down*
***Push Cash School***
*No Impact: Actual Disbursements will be rejected if there is no MPN on the system*

**Notes:**
For Advanced Funded Schools
	This does not mean that you have to delay your disbursements.  As long as you have the signed MPN, you can still disburse.  This change just means that when the disbursements are sent to the COD System, they could reject if the MPN is not accepted yet.

For Pushed Cash Schools
	There is little impact as MPNS are already required before disbursements are accepted.

## PLUS MPN Redesign

- Incorporates HERA changes
- Still ONE MPN for all PLUS borrower types (parent and graduate/professional student)
- New OMB form expiration date
- Incorporates Borrower’s Rights and Responsibilities (BRR)
***COD will not accept older MPN version******after March 1, 2008!!***

## Session Outline

**Session Outline**

**March 2008 Release Updates**
**MPN Updates**
**Origination Fee Update Reminder**
**Tools and Training**
**Direct Loan Servicing**

## Reminder! Origination Fee Update

***As of July 1, 2008, ***
***the origination fee will be 2.0%***

- Origination Fee Percentage is based on Earliest Disbursement Date, ***NOT Award Year!***

| Fee % | Earliest Disbursement Date Range |
| --- | --- |
| 3.0 | Prior to 2007-07-01 |
| 2.5 | 2007-07-01 to 2008-06-30 |
| 2.0 | 2008-07-01 to 2009-06-30 |
| 1.5 | 2009-07-01 to 2010-06-30 |
| 1.0 | 2010-07-01 and forward |

**Notes:**

This is just a reminder that Origination fees are dropping as of July 1, 2008. This is a HERA mandated change. As of the 1st of July the origination fee will drop another 1.2 percent to 2%. Remember this is based on the earliest disbursement date.
Earliest Disbursement Date is:
Disbursement Date of Earliest Actual Disbursement
If no actual disbursements exist:
Disbursement Date of Earliest Anticipated Disbursement

## Origination Fee Edits

| Edit | Edit Code | Block | Message |
| --- | --- | --- | --- |
| 140 | R | Award | Incorrect Origination Fee Percent on New Awards |
| 141 | R | Award | Cannot change the Origination Fee Percent on an Active Loan  |
| 142 | R | Award | Invalid Origination Fee Percent on Award Changes |
| 143 | R | Award | Disbursement Net, Fee, and/or Rebate Amounts are Incorrect based upon the Origination Fee Percentage |
| 144 | R | Disb | Disbursement Dates do not match Origination Fee Percent on file |

**Notes:**
This slide is a recap of the edits that are already in place. These are not new edits, just a reminder of the ones returned if the Earliest disbursement Date does not sync up with the Origination fee.

## Session Outline

**Session Outline**

**March 2008 Release Updates**
**MPN Updates**
**Origination Fee Update Reminder**
**Tools and Training**
**Webinars**
**COD Computer Based Training  (CBT) Roll-Out**
**Direct Loan Servicing**

## COD CBT Roll-Out

- An exciting new CBT will be released by COD to familiarize users with the capabilities of the COD System!

***Now Available!***

## Webinars

**Internet Training and Webinars**
- _[http://](http://ifap.ed.gov/IFAPWebApp/currentCPresentationsYearPag.jsp?p1=Additional+FSA+Presentations&p2=c)__[ifap](http://ifap.ed.gov/IFAPWebApp/currentCPresentationsYearPag.jsp?p1=Additional+FSA+Presentations&p2=c)__[.ed.gov/](http://ifap.ed.gov/IFAPWebApp/currentCPresentationsYearPag.jsp?p1=Additional+FSA+Presentations&p2=c)__[IFAPWebApp](http://ifap.ed.gov/IFAPWebApp/currentCPresentationsYearPag.jsp?p1=Additional+FSA+Presentations&p2=c)__[/](http://ifap.ed.gov/IFAPWebApp/currentCPresentationsYearPag.jsp?p1=Additional+FSA+Presentations&p2=c)__[currentCPresentationsYearPag](http://ifap.ed.gov/IFAPWebApp/currentCPresentationsYearPag.jsp?p1=Additional+FSA+Presentations&p2=c)__[.](http://ifap.ed.gov/IFAPWebApp/currentCPresentationsYearPag.jsp?p1=Additional+FSA+Presentations&p2=c)__[jsp](http://ifap.ed.gov/IFAPWebApp/currentCPresentationsYearPag.jsp?p1=Additional+FSA+Presentations&p2=c)__[?p1=Additional+FSA+Presentations&p2=c](http://ifap.ed.gov/IFAPWebApp/currentCPresentationsYearPag.jsp?p1=Additional+FSA+Presentations&p2=c)_

## Session Outline

**Session Outline**

**March 2008 Release Updates**
**MPN Updates**
**Origination Fee Update Reminder**
**Tools and Training**
**Direct Loan Servicing**

## Direct Loan Servicing Updates

_**New Direct Loan Repayment Plans are in Effect!**_
-   Changes as result of Higher Education Reconciliation Act     	(HERA) of 2005
-   Rollout Strategy
-   Repayment Plan Terms

## Direct Loan Repayment Plans

**In Repayment****	**

**Selection Prior**

**Selection After**

**Borrowers who selected a repayment plan prior to implementation will remain on their pre-HERA selection (even if they have not entered repayment)**

**Borrowers will make a repayment plan selection from one of the new repayment plans.**

**Borrowers who are paying under one of the pre-HERA plans will see no change and will continue to pay under the terms of their plan.**

**Direct Loan Repayment Plans**

## Direct Loan Repayment Plans

** ****Available to all Direct Loan borrowers**
** ****Fixed payments**
** ****Maximum 10-year repayment period for **
**  ****Direct Subsidized, Direct Unsubsidized**
**  ****and Direct PLUS Loans**
** ****Maximum 10 – to – 30 year repayment**
**  ****period for Direct Consolidation Loans,**
**  ****depending on total education loan debt **

**Standard**

## Direct Loan Repayment Plans

** ****Available to all Direct Loan borrowers**
** ****Graduated payments**
** ****Maximum 10-year repayment period for **
**  ****Direct Subsidized, Direct Unsubsidized**
**  ****and Direct PLUS Loans**
** ****Maximum 10 – to – 30 year repayment**
**  ****period for Direct Consolidation Loans,**
**  ****depending on total education loan debt **

**Graduated**

**Direct Loan Repayment Plans**

## Direct Loan Repayment Plans

**Direct Loan Repayment Plans**

| Maximum Repayment Periods for Direct Consolidation Loan Borrowers Under the Standard and Graduated Repayment Plans |  |
| --- | --- |
| Total Education Loan Indebtedness | Maximum Repayment Period |
| Less than $7,500 | 10 years |
| $7,500 to $9,999 | 12 years |
| $10,000 to $19,999 | 15 years |
| $20,000 to $39,999 | 20 years |
| $40,000 to $59,999 | 25 years |
| $60,000 or more | 30 years |

## Direct Loan Repayment Plans

** ****Available only to new Direct Loan borrowers **
**  ****on or after October 7, 1998 (all loan types)**
**  ****with more than $30,000 in outstanding **
**  ****Direct Loan debt**
** ****Payments:  **
** ****Fixed or Graduated payments**
** ****Maximum 25 - year repayment period  **
**  ****regardless of loan type or amount of **
**  ****outstanding Direct Loan debt**

**Extended**

**Direct Loan Repayment Plans**

## Direct Loan Repayment Plans

** ****Available to Direct Subsidized, Direct**
**  ****Unsubsidized, and Direct Consolidation**
**  ****Loan borrowers (including Direct **
**  ****Consolidation Loan borrowers who have **
**  ****consolidated Direct PLUS or Federal PLUS**
**  ****Loans)**
** ****Not available to Direct PLUS Loan borrowers**
** ****Variable payments based on income and **
**   ****loan debt**
** ****Maximum 25 – year repayment period**

**ICR**

**Direct Loan Repayment Plans**

## Related Direct Loan Sessions

**Related Direct Loan Sessions**

| Session #4 | Title IV Funding to Schools: From COD to GAPS |
| --- | --- |
| Session #24 | COD Web Hands On |
| Session #40 | A Direct Loan Primer |
| Session #41 | Unlocking the Potential of Direct Loan Reports |

## Questions or Comments?

**Questions or Comments?**

- We appreciate your feedback and comments.
- Direct Loan Operations Team can be reached via e-mail at:
- 			_[dlops](mailto:dlops@ed.gov)__[@ed.gov](mailto:dlops@ed.gov)_

## Contact Information

**Lisa DiCarlo**Director, COD Systems/Operations and Direct Loan Operations_[lisa.dicarlo@ed.gov](mailto:lisa.dicarlo@ed.gov)_(202) 377-3129
**Julie Aloisio**Management/Program Analyst, Direct Loan Operations _[julie.aloisio@ed.gov](mailto:julie.aloisio@ed.gov)_(202) 377-3695
**Cynthia Battle**Direct Loan Servicing (Non-Default Group), Director
- 	_[cynthia](mailto:cynthia.battle@ed.gov)__[.battle@ed.gov](mailto:cynthia.battle@ed.gov)_(202) 377-3261