No	Minimum	Direct	Loan	Amount	in	COD	System
The	COD	System	does	not	set	a	minimum	amount	for	which	a	school	may	originate	a	Direct	Loan.
Sequestration
The	Budget	Control	Act	(BCA)	put	into	place	an	automatic	federal	budget	cut	known	as	the	sequester.	For	loans	made
under	the	Direct	Loan	program,	the	sequester	requires	an	increase	in	the	amount	of	the	loan	fee	(also	known	as	the
origination	fee)	that	is	charged	to	borrowers.	For	details	on	the	sequester-required	changes	to	Direct	Loan	origination
fees,	see	the	April	30,	2024	Electronic	Announcement.
Resources	for	Schools
FSA	Assessments
For	a	guide	to	reviewing	and	evaluating	your	procedures	regarding	Direct	Loans,	see	the	Direct	Loans	module	of	
FSA
Assessments.
EDExpress	for	Windows
The	EDExpress	for	Windows	software	is	a	PC	application	that	processes,	packages,	and	manages	Title	IV	student	financial
aid	records,	including	Direct	Loan	origination	and	disbursement	records.	Federal	Student	Aid	provides	EDExpress	at	no
charge	to	institutions.	It	is	available	for	download	in	the	Knowledge	Center	on	the	Software	and	Other	Tools	page.
FSA	Partner	and	School	Relations	Center
1-800-848-0978
202532026	Common	Origination	and	Disbursement	(COD)	Technical	Reference(February	2025	Update)
Reporting	Loan	Information	Changes
It's	important	for	schools	to	accurately	report	academic	year	dates	and	loan	period	dates	for	all	types	of	Direct	Loans	to
the	COD	System.	You	must	also	update	a	loan9s	previously	reported	loan	period	dates	or	academic	year	dates	if	the
borrower9s	actual	attendance	is	different	from	the	anticipated	dates	that	were	the	basis	for	an	initial	reporting	to	the	COD
System.	Other	circumstances	when	you	must	update	loan	data	in	the	COD	System	include:
When	the	borrower	requests	the	cancellation	of	a	loan	or	a	loan	disbursement;
When	the	borrower	does	not	begin	attendance,	or	does	not	begin	attendance	on	at	least	a	half-time	basis,	in	a
payment	period	that	was	included	in	the	originally	reported	loan	period	and	you	did	not	make	any	disbursements	for
that	payment	period	(see	Volume	3,	Chapter	1	for	information	on	payment	periods);
When	you	determine	that	the	borrower	is	not	eligible	to	receive	a	Direct	Loan	for	a	payment	period	that	was	part	of
the	originally	reported	loan	period	(for	example,	due	to	the	borrower9s	failure	to	meet	SAP	standards,	because	the
borrower	has	an	overpayment,	or	because	a	change	in	circumstances	makes	the	borrower	ineligible	for	a	subsidized
loan);
When	the	borrower	withdraws	during	a	payment	period	that	was	included	in	the	originally	reported	loan	period,	and
as	a	result,	the	entire	amount	of	the	loan	that	was	intended	for	that	payment	period	is	returned	under	the	Return	of
Title	IV	Funds	(R2T4)	calculation;
For	clock-hour	programs,	non-term	credit-hour	programs,	and	certain	types	of	nonstandard	term	credit-hour
programs,	when	the	borrower	fails	to	progress	to	the	next	payment	period	or	academic	year	as	scheduled.
Note:	In	limited	circumstances,	it	is	not	necessary	to	adjust	the	loan	period	for	a	Direct	Loan	if	the	borrower	is	ineligible
to	receive	a	Direct	Loan	during	one	or	more	terms	within	the	loan	period	due	to	not	being	enrolled	or	being	enrolled	on	a
less-than-half-time	basis.	For	details,	see	<Loan	Periods=	later	in	this	chapter.
Correcting	Direct	Subsidized	Loan	or	Direct	Unsubsidized	Loan	Awarding	Errors