NSLDS Reviews

Jean Balcer
Financial Aid Processing Coordinator
Davenport University
Determine loan eligibility for dependents
w/PLUS denials
Determine loan eligibility when student’s
history has Health loans
Try to identify capitalized interest
Discuss the reaffirmation process
• Review NSLDS – loans noted with “P” indicate
additional eligibility due to PLUS denial. These
loans can be subtracted out of the aggregate
total to determine the dependent undergrad
aggregate total.
• If student is under the $31,000 cap, you can
award loans up to the cap. If student is at the
$31,000 cap, before awarding any additional
loans, you must obtain a PLUS denial. Then you
can award at independent level.
• Johnny has $20,500 sub and $26,000 unsub =
$48,000 for aggregate totals. On NSLDS he is
being flagged for “Additional Unsub.”
• Per his loan history he has $17,000 in
additional unsub that is flagged with “P”. So,
his undergraduate dependent total actually is:
$20,500 + 9000 = $29,500.
• The student can borrow $1500 in sub funds for
the academic year, which now brings him to
$31,000 cap. In order to borrow any more than
that, you would need a PLUS denial on file.
• For the next academic year, you would not be
able to award the student anything until you
have a PLUS denial on file.
Student is flagged for exceeding dependent
aggregate loan limits.
The dependency code on NSLDS is dependent, on
the 13-14 ISIR the student is showing
Loan Acad. Level equals NA. The student’s
loans are coded incorrectly, therefore creating
the status of being overawarded.
Two years of loans disbursed should be coded as
independent academic level.
To correct, must contact the servicer to have
the student’s loan history updated.
For participating medical schools student can
borrow up to $224,000.
If your school is not a medical school, you
must determine the student’s eligibility before
awarding loans.
Review NSLDS – loans noted with “H” indicate
additional eligibility due to health medical
loans. These loans can be subtracted from
aggregate total.
• If the loans are not clearly marked, but you
know the other school was a participating
medical school, then the student would only be
eligible for Grad PLUS loan at your school.
• From FSA handbook, Volume 3, Chapter 5, page 392. “If a student receives the additional Stafford
loan amounts on the basis of study in a health
profession program but then leaves that program and
enters a program in a different field, the student is
no longer eligible for the increased Stafford loan
limits. However, the additional loan amounts
received on the basis of health professions study are
not counted towards the normal aggregate Stafford
loan limit for that student.”
• Example: Student’s aggregate total is $145,000.
There is one unsub loan for $35,000 marked with
“H”. To determine her non-health professional
aggregate total: 145,000 – 35,000 = 110,000.
Student is eligible for $28,500 in unsub funds
before reaching $138,500 cap.
The consolidated loans and older FFELP loans
are usually the culprit for capitalized
Usually capitalized interest will be added to
AGG OPB when the OPB balance is less than the
disbursed amount on FFELP loan.
One way to determine which loan may be the
issue is to compare current loan history to a
prior loan history. If current is higher, then
principal balance increased.
• You can also look at Loan Detail tab on NSLDS to
see if the AGG OPB balance has increased from a
prior date.
• If you can find the loan that created the
overaward, you may be able to go to the
servicer’s website to look at loan payment
history; there it will indicate if capitalized
interest has been added.
• If so, you can use that as your documentation as
to why the student is over aggregate limits.
• If not, then you will need to obtain a
Reaffirmation letter or Satisfactory Repayment
Arrangements letter.
• If the student has consolidated all of their
loans, the student has then reaffirmed their
debt as he or she has to sign a new Promissory
Note for the consolidation.
• When a student is flagged on NSLDS for exceeding
loan limits, the school must rectify the
overaward before the student is eligible for
Title IV funds.
• Note: NSLDS will only flag a student as
exceeding loan limits if the overaward is
greater than $100.
• Per regulations, even if the overaward is a
$1.00 the school must rectify the overaward
either by reallocating a sub overaward or
student obtains reaffirmation letter.
• Gen 13-02: Remaining Title IV Eligibility after
exceeding loan limits explains the steps to take
for the reaffirmation letter.
Process for LLE issue – requesting reaffirmation letter.
GEN-13-02: Regaining Title IV Eligibility after exceeding loan limits.
A student who has inadvertently over borrowed may regain Title IV eligibility by making
satisfactory repayment arrangements acceptable to the servicer of the loan. The
satisfactory repayment arrangement requirement can be met if the student agrees, in
writing, to repay the excess amount according to the terms and conditions of the
promissory note that supported the loan. This is called “reaffirmation.”
The reaffirmation process includes the following steps:
Step 1 – Either the institution or the student contacts the servicer and explains that the
student has inadvertently over borrowed and wishes to reaffirm debt.
Step 2 – The servicer sends the student a reaffirmation agreement.
Step 3 – The student reads, signs and returns to the servicer the reaffirmation
Step 4 – The servicer sends the student confirmation that the reaffirmation agreement
has been accepted. The student or servicer must provide a copy of the reaffirmation
confirmation to the institution.
Step 5 – The inadvertent over borrowing is considered to have been resolved as of the
date the servicer receives the student’s signed reaffirmation agreement.
--------------------------------------------------------------------------------------------------------------------DU FA Loan Coordinator or specialist will complete step 1 on behalf of the student.
Notes will be made in RHACOMM which servicer was contacted and will note how the
servicer will be sending the letter to the student, such as via email or regular mail. It is
the student’s responsibility to submit the confirmation of reaffirmation.
NOTE: for Sallie Mae serviced loans, once we have requested the reaffirmation letter
and Sallie Mae has generated the letter; the student can log onto their account with
Sallie Mae and go to “View Correspondence History” and click on Incoming
Notifications. Here they should be able to re-print the reaffirmation letter.
• When the student receives the
letter, they have two options:
1. Pay the overaward. Payment must accompany the
letter back to the servicer in order to be applied
directly to principal.
2. Sign the reaffirmation, which is an amendment to
the original promissory note.
NSLDS Customer Support Center
Toll: 1-785-838-2141
Fax: 1-785-838-2154
Web: www.nsldsfap.ed.gov
[email protected]
Jean Balcer
Davenport University
Financial Aid Processing Loan Coordinator
[email protected]

similar documents