Student Policies and Procedures
Policy 03:34:00
Direct Loan Quality Policy and Procedures Summary
Purpose:
Platt College follows published guidelines for quality assurance regarding direct loans in the financial aid department.
Revision Responsibility: Director of Financial Aid
Responsible Executive Office: President
Created in Formal Policy: January 10, 2013
Following published guidance by the Department of Education on November 13, 2013, Platt College established this Direct Loan Quality Assurance Policy and Procedures Summary.
All policies and procedures concerning Title IV funding are designed with these Quality Assurance principles in mind, these include but are not limited to all financial aid policies in the student handbook, all polices in the internal Financial Aid Policy and Procedures manual. From the Department of Education:
Direct Loan Quality Assurance Requirement Overview
The Direct Loan Program regulations at 34 CFR 685.300(b) (9) require schools to implement and document a quality assurance process to ensure that they are complying with program requirements and meeting program objectives.
A school should have a quality assurance process in place that documents that the school is:
- Reporting loan records, disbursements, and adjustments to disbursements correctly to the Common Origination and Disbursement (COD) System
- Disbursing and returning loan funds in accordance with regulatory requirements
- Disbursing the correct loan amount to the correct student
- Completing monthly reconciliation and Program Year Closeout
To be effective, the steps for implementing a Direct Loan quality assurance process will be unique to each school and need to consider the characteristics of a school’s academic policies and programs and its borrower population. Schools are encouraged to use self-assessments to examine their procedures and act on an ongoing basis to strengthen areas of risk.
Options for Meeting the Direct Loan Quality Assurance Requirement
The Department of Education (the Department) does not mandate the method by which schools meet the quality assurance requirement. Schools may have institutional-designed assessments and quality assurance processes in place to ensure that the Direct Loan quality assurance requirement is met.
Reporting loan records, disbursements, and adjustments to disbursements correctly to the Common Origination and Disbursement (COD) System
Description of Process
The Financial Aid Administrator (Financial Aid Team) utilizes our Campus Nexus System (CNS) to originate all Federal Direct Loans. The CNS generates an enrollment roster available to the Financial Aid Team, Registrar, and the Chief Financial Officer (CFO). Using information managed by the Registrar, the Registrar verifies enrollment of students on the list and then the Financial Aid Team provides approval of disbursements to the Director. The Director requests the funds, the CFO draws down the funds, posts the credits to the student accounts, and refunds any excess payments.
Measurable Assessment
- Ensuring all loan records maintain “Acceptable” and or “Cancelled” status (if student withdrawal) within our CNS until the end of the student award year
- Responding in timely manner to COD School Monitoring Reports, COD 30 Day Warning Reports
Disbursing and returning loan funds in accordance with regulatory requirements
Description of Process
For any student requesting Federal Student Aid (FSA), before any loan is initiated, Platt College requires an ISIR (from the FAFSA), a signed in-house Tentative Award form (which specifies the loan amount the student is requesting), Entrance Counseling, and a signed Master Promissory Note. Any comment codes on the ISIR must be resolved. The Financial Aid Team independently verifies the aggregate loan limit in NSLDS for each student. If any of these items are not received or if any of these items are flagged by either our CNS or COD, we do not initiate loans or disburse funds to the student.
The Financial Aid Team utilizes our CNS to originate all Federal Direct Loans. The CNS generates a disbursement roster available to the Financial Aid Team, the Director, and the CFO. Using information managed by the Registrar the CNS verifies enrollment of students on the list and then provides approval of disbursements to the Director. The CFO draws down the funds, posts the credits to the student accounts and refunds any excess payments.
Our Registrar identifies and notifies the Financial Aid Team of a student enrollment status change, thus indicating a potential change in their FSA funds. The student may also report such a change to the Financial Aid Team.
The Financial Aid Team notifies the CFO to return funds to the cash control account or to reduce a subsequent cash draw.
The Financial Aid Team and CFO, using the CNS, accumulate this data.
Measurable Assessment
- Ensuring all loan records maintain “Accepted” and or “Cancelled” status within our CNS until the end of the Academic Year
- Monitoring the enrollment, SAP, and eligibility alerts within the CNS and responding appropriately
- Responding in a timely manner to COD School Monitoring Reports, COD 30 Day Warning Reports
Disbursing the correct loan amount to the correct student
Description of Process
The Financial Aid Team schedules disbursement dates for approved funds. The CFO uses those schedules to draw down funds. This occurs at least once per academic term.
Direct Loan funds are drawn down based upon the disbursement schedule and immediately applied to student accounts with refunds processed for any accounts with credit balances.
Measurable Assessment
- Ensuring all loan records maintain “Accepted” and or “Cancelled” status within our CNS until the end of the Academic Year
- Monitoring the enrollment, SAP, and eligibility alerts within the CNS and responding appropriately
- Responding in a timely manner to COD School Monitoring Reports, COD 30 Day Warning Reports
Completing monthly reconciliation and Program Year Closeout
Description of Process
The Financial Aid Team receives the SAS from COD monthly and works with the Accountant to create a monthly reconciliation document that shows a balance between our CNS, COD, and G5.
Measurable Assessment
- Maintaining timely and accurate monthly reconciliation records
- Maintaining timely and accurate year-end closeout documentation.