We previously informed schools in a Feb. 16, 2022 Electronic Announcement that the closeout deadline for the 2020–21 Direct Loan Program Year is Friday, July 29, 2022. This is the last processing day before the end of the program year. All school data must be received and accepted by this date to be included in a school's final Ending Cash Balance for the year.
To be considered successfully closed out, the school must—
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Reconcile to an Ending Cash Balance of $0 and Total Net Unbooked Disbursements of $0, as reflected on your monthly School Account Statement (SAS) Report and in your school’s internal records; and
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Complete the School Balance Confirmation form on the Common Origination and Disbursement (COD) website. The School Balance Confirmation form can be completed after the school has reconciled to a $0 balance both internally and externally. Once the school has completed their final reconciliation, the school should log in to the COD website. From the School options menu, click on the Balance Confirmation link on the left-hand side of the page and follow the instructions on the School Balance Confirmation screen.
Note: A school should verify that it has selected the correct program and award year to close out from the dropdown menu.
After June 27, 2021, the COD System will no longer include Direct Subsidized Loans with an earliest disbursement date on or after July 1, 2021, in subsidized usage calculations. In addition, new borrowers (for COD System purposes, this means borrowers who do not have any Direct Loans on file with a positive balance) will not be flagged with the SULA Indicator if their first Direct Loan has an earliest disbursement date on or after July 1, 2021.
If a school submits a Direct Loan with an earliest disbursement date before July 1, 2021, the COD System will continue to calculate subsidized usage. Subsidized usage calculations will also occur if a school changes the earliest disbursement date of a Direct Loan from on or after July 1, 2021, to before July 1, 2021. In addition, if there is a change in earliest disbursement date from on or after July 1, 2021, to before July 1, 2021, and it is a borrower’s first Direct Loan, we will update the SULA Indicator for that borrower from “N” to “Y.”
To meet the closeout deadline, all records must be submitted to the COD System no later than 8 p.m. Eastern time (ET) on Friday, July 29, 2022. After this deadline, Direct Loan records will not be accepted by the COD System and schools will no longer have Direct Loan funds available to draw down for the 2020–21 award year. In other words, the Department will reduce the school’s Current Funding Level (CFL) to the greater of Net Drawdowns or Net Accepted & Posted Disbursements.
Notes:
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Though the closeout deadline is July 29, 2022, all cash management, disbursement reporting, and monthly reconciliation regulatory requirements supersede this closeout deadline. If a school is meeting these regulatory requirements, the final closeout stage should begin no later than the last award end date at the school for a given program and year. A school should be able to reconcile to a zero Ending Cash Balance and close out soon after its final disbursements and should not wait until the closeout deadline.
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All records submitted prior to the closeout deadline must be accepted by the COD System to be included in a school's final Ending Cash Balance for 2020–21. Also, refunds of cash transactions can take 7-9 days to process from G5 to the COD System to be included in your school’s balance. Plan accordingly to allow ample time for refunds of cash to be included in your final Ending Cash Balance prior to the deadline.
Note: Schools should not use G5 Drawdown Adjustment Transactions to move funds from one program, award year or school to reconcile another program, award year or school.
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Exceptions to the last processing day of the program year may be made on a case-by-case basis, if the school’s processing period extends beyond the closeout deadline. Schools falling within this category must contact the COD School Relations Center at the number provided below for further assistance. Once the closeout deadline has passed, requests for extensions may be made via the COD website.
For additional Direct Loan Closeout information for the 2020–21 program year, schools can refer to the Feb. 16, 2022 Electronic Announcement.
Contact Information
We appreciate your cooperation as we work to close out the 2020–21 Direct Loan Program Year. If schools have questions about this announcement, need assistance with closeout, or have any special processing considerations that will prevent your school from meeting the closeout deadline, contact the COD School Relations Center at 1-800-848-0978. You may also email CODSupport@ed.gov.