COD launched system changes for 150% SULA

Zero Disbursement Exception – Effective October 30, 2016, COD System that will modify how we calculate the Subsidized Usage Period (SUP).

Currently, the payment period of a Direct Loan award is excluded from the Subsidized Usage Period calculation if the disbursement amount for that payment period is

$0 and the disbursement date is outside the Financial Award Begin and End (loan period) dates. Beginning October 30, 2016, a payment period of a Direct Loan award will be excluded from the Subsidized Usage Period calculation if the disbursement amount for that payment period is $0 and the Payment Period Start Date (PPSD) is outside the loan period dates. As a result, a school will be able to change the Financial Award Begin and/or End (loan period) dates as long as the disbursement amount is $0. A school will no longer have to change the disbursement date to adjust loan period dates.

Loan Limit Exception – Currently, the Subsidized Usage Period of a Direct Loan award is calculated as 1 year when the award amount is equal to the annual loan limit for that grade level and the loan period is less than the academic year regardless of the actual length of the loan period and academic year. Beginning October 30, 2016, the COD System will also consider a student’s highest grade level when a student progresses to a higher grade level during the academic year when applying the loan limit exception. The Subsidized Usage Period for a Direct Loan award will be calculated as 1 year, regardless of the actual length of the loan period and academic year, when all of the following conditions are true:

  • The award amount is equal to the annual loan limit (for that grade level)
  • The loan period is less than the academic year
  • The borrower does not have another active Direct Subsidized Loan within the same academic year at a higher grade level

Changes to COD Edits

COD Reject Edit 046 – Incorrect Academic Year Dates

Schools have been reporting Direct Loan Academic Year Start and End Dates that are less than the required minimum number of weeks. Schools should be reporting academic year start and end dates that reflect their defined academic year for annual loan limit purposes. In general, an academic year for a credit-hour or direct assessment program must include at least 30 weeks of instructional time. An academic year for a clock-hour program must include at least 26 weeks of instructional time. Beginning October 30, 2016, COD Reject Edit 046 will be returned when the Direct Loan Academic Year Start and End Dates do not equal at least 26 weeks for origination and maintenance records. The new edit will apply to the 2016-2017 Award Year and forward.

COD Reject Edit 205 – Payment Period Start Date is outside the Award Begin and End dates

Currently, COD Reject Edit 205 is returned when the Payment Period Start Date for a disbursement is not contained within the Financial Award Begin and End Dates (Loan Period) of a Direct Loan award. However, the edit is not returned when the disbursement amount has been reduced to $0, the Payment Period Start Date is outside the loan period, and the disbursement date remains inside the loan period. Beginning October 30, 2016, COD Edit 205 will not be returned when a disbursement has been reduced to $0 and the Payment Period Start Date is outside the loan period, regardless of whether the disbursement date falls inside or outside of the loan period.

COD Reject Edit 206 & 207 – The Remaining Subsidized Eligibility Period is less than zero for this award

The Remaining Subsidized Eligibility Period is less than zero for this award after this disbursement was approved from the Action Queue Currently, Edits 206 and 207 are returned to schools when a Direct Loan award or maintenance record is submitted and the calculated Remaining Subsidized Eligibility Period is less than zero. Edits 206 or 207 are also returned when a maintenance record is submitted and the Remaining Subsidized Eligibility Period increases but the period remains less than zero. Beginning October 30, 2016, Edits 206 and 207 will no longer be returned when a maintenance record is submitted and the Remaining Subsidized Eligibility Period is increased or remains the same but the period is still less than zero.

New COD Edits

Correcting Edit 219 – Award Amount was greater than the sum of the Disbursement Amount(s)

In order for the COD System to correctly calculate the Subsidized Usage Period for a Direct Loan award, a school must ensure both the loan amount and disbursement amounts reflect the total amount disbursed to the student. Many schools have been reducing the disbursement(s) of a loan without also updating the loan amount. Beginning October 30, 2016, a new Correcting Edit 219 will be added for Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and TEACH Grants for the 2016–2017 Award Year and forward. When a school submits a maintenance record to reduce the disbursement(s) on a Direct Loan or TEACH Grant award, the COD System will correct the award amount to equal the new sum of the actual and anticipated disbursements.

Warning Edit 220 – The disbursement has an amount of $0 and a payment period start date within the loan period

When a student does not receive a disbursement for a payment period, schools have been reducing disbursement amounts to $0 without also making the appropriate adjustments to the loan period. As a result, the Subsidized Usage Period is not calculated correctly. Beginning October 30, 2016, a new Warning Edit 220 will be added for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans for the 2014-2015 Award Year and forward. Warning Edit 220 will be returned at the disbursement level when a disbursement amount is reduced to $0 and the loan period remains the same, leaving the Payment Period Start Date within the loan period. Warning Edit 220 will be returned at the award level when a disbursement is equal to $0 and the Financial Award Begin and/or Award End (loan period) dates changed but the Payment Period Start Date remains within the loan period. The warning edit reminds schools to verify that the reported Financial Award Begin and/or End dates reflect the correct period of enrollment for the loan.

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