Direct Loan Program Overview. Agenda. What is the Direct Loan Program? What is the student’s role? What is the school’s role? What is FSA’s role? How does the Direct Loan process work? What are the benefits for borrowers? What resources are available for schools?.
*based on HR 5715 signed into law May 7, 2008
*A 1.5% up front interest rebate also applies, to be covered under borrower benefits
School confirms eligibility, determines loan award and creates student record
School Originates a Direct Loan when it sends Direct Loan Award and Disbursement data to the COD system
School uses batch record process or COD Web site to create records
Summary financial info
Do the totals match school records?
Match School Records?
Central Processing System (CPS)
Loans and Disbursements
Verify valid ISIR
Electronic Entrance & Exit Counseling
Originations, Disbursements & Paper MPNs
Loans and Disbursements
Funding Data and
Provides over 6 million student borrowers with highly secure on-line services for:
Online information resource for borrowers
Entire site available in Spanish
View live account data and manage loans online
Download loan-related forms directly, avoiding the time and expense of mailing
Consolidate existing loans into a single Direct Loan
Online Billing & Payment
Receive bills and correspondence electronically, make payments online
Borrowers are provided with the amount of their total indebtedness (Direct Loans, FFEL, and Perkins) during Exit Counseling or from the Account Summary page.
Click here to view your Non-Direct Loans
Bills and Payments
Direct Loan borrowers can receive their bills and make payments online; and they can choose to receive their Direct Loan correspondence electronically, all for free.
381,227 online payments were made during the month of July for a grand total of $96,065,817.69.
Electronic Debit Account
958,200 borrowers are receiving a .25% incentive by enrolling in EDA!
I just wanted to congratulate you on providing an excellent way to manage my student loan account. I cannot tell you how much simpler it is for me, knowing I can do everything I need on-line. I don't have to mail anything or call someone -- I just need to log in. - Troy
Online Form Submission
Borrowers can submit Unemployment Deferment and General Forbearance applications online.
http://www.studentaid.ed.gov (800) 433-7327
COD School Relations-Applicant Services
Direct Loan Servicing Center – Borrower Services
Direct Loan Consolidation Center
http://www.loanconsolidation.ed.gov (800) 557-7392
Federal Student Aid Ombudsman
http://www.ombudsman.ed.gov (877) 557-2575
Direct Loan Information
http://www.ed.gov/offices/OSFAP/DirectLoan/index.htmlCall Center Resources for Borrowers
COD School Relations Centerhttp://www.cod.ed.gov(800) 848-0978
School Services – Direct Loan Servicinghttp://www.dl.ed.gov/schools(888) 877-7658
Direct Loan Consolidation Centerhttp://www.loanconsolidation.ed.gov(800) 557-7392
View live account data for students including balances, account status, separation dates, and more.
DL Servicing Resources
Web Site Help
Exit & Entrance Counseling Reports
Identify students who have
completed Counseling Online
Detail, Summary, Late Stage Delinquency, and Borrower History
Receive email notifications when reports are available online
Login to Servicing is through COD
Direct Loan Servicing School Site
Click here to see Repayment Estimates
Student Account Lookup
Summary Delinquency Report
Late Stage Delinquency Report
Instructions for getting started