PLUS Loan Presentation - Enrollment Management

Report
Basics of Parent (and
Graduate) PLUS Loan
Processing
Session #30544
March 20, 2012
Your Presenters
• Bridgette Betz
• Assistant Director, Student Financial Assistance
• Missouri University of Science and Technology
•Missouri S&T (formerly
University Missouri – Rolla)
is one of the nation’s top
technological research
universities
•Campus size – 7206
Students (5504
Undergraduates)
Missouri S&T and Oracle
•Live with PeopleSoft since
July 2000 (started with
v7.6)
•HR, Finance, Purchasing,
and Student on PeopleSoft
for all University of Missouri
campuses
•Currently on Student v8.9
and hope to go to 9.0 by
the end of 2012
• This presentation should provide you a look at how
Missouri S&T has structured the entire PLUS loan
process (both for Parents and Graduate students).
• Missouri S&T directs PLUS loan borrowers to
StudentLoans.gov for the application, credit check,
and MPN.
• Parents (for undergraduate students) and Graduate
students go through the same process.
Agenda/Contents
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Missouri S&T PLUS Loan Volume
PLUS Loan Application and Credit Check
PLUS Loan Master Promissory Note
Import of PLUS Loan Information
Awarding and Originating PLUS Loans
Disbursing and Refunding PLUS Loans
Missouri S&T PLUS Loan Volume
• Beginning with AY11, Missouri S&T has packaged
both Parent PLUS and Graduate PLUS loans (up to
the remaining COA).
• PLUS Loan volume more than doubled from AY10 to
AY11, and it is still on the rise for AY12.
PLUS Loans
$9,000,000
$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
2007
2008
2009
2010
2011
2012 (in
progress)
PLUS Application & Credit Check
• Borrowers are directed to Department of
Education’s page – StudentLoans.gov
• Log in requires SSN, DOB, and FAFSA PIN
PLUS Application & Credit Check
• Borrowers click “Request a Direct PLUS Loan” to
begin the process…
PLUS Application & Credit Check
• …choose if they want to complete a Graduate or
Parent application…
PLUS Application & Credit Check
• … and complete the four step process which
includes the application and credit check
• Parents can indicate (authorize) who receives any
excess funds on the application and for what time
period they would like the loan
• Borrowers can choose how much to borrow, indicate
they want the maximum offered or that they will
contact the financial aid office with an amount
PLUS Application & Credit Check
• Parents will also be able to choose if they would like
the loan deferred while the student is enrolled- this
information is sent to the servicer once the loan has
originated
– Servicer will either automatically defer the loan or
send the appropriate paperwork to the parents
• Credit check is instantaneous!
PLUS Application & Credit Check
• If the Parent borrower is denied (based solely on their
credit score), they have 3 options:
• Do not continue with application
• Seek an Endorser
• Appeal Credit Decision
• No matter what option they choose, the notice of denial
is sent in a CRSP##OP file that is loaded into
PeopleSoft.
• Unless we know that there will be an endorser, we
contact the student informing them they may be eligible
for an additional unsubsidized loan (up to $4000 for
freshman & sophomore, and up to $5000 junior & senior)
PLUS Application & Credit Check
• If the Graduate borrower is denied (based solely on
their credit score), they still have 3 options:
• Do not continue with application
• Seek an Endorser
• Appeal Credit Decision
• If either Parent or Graduate borrower is approved, they have 2
options:
• Do not continue with application
• Continue and Complete MPN (If there is not one
on file)
PLUS Loan Master Promissory Note
• The Direct PLUS Loan MPN can be used to make
one or more PLUS loans for one or more academic
years for (up to 10 years)
• If the Parent has more than one student, a MPN
must be completed for each child
• PLUS MPN is also completed at StudentLoans.gov
PLUS Loan Master Promissory Note
• For Parents who seek an endorser on their loan,
both the Parent and Endorser must complete a MPN
• If the parent wishes to take out an additional PLUS
loan they will have to complete a new MPN, since
the first will be marked as Inactive and can only be
linked to one loan
PLUS Loan Master Promissory Note
• Once a borrower completes the MPN, we are sent a
CRPN##OP file that is loaded into PeopleSoft.
• This file will update the promissory note status if we
have an originated loan
Financial Aid > Loans > Direct Lending Management > View
Loan Processing Actions (Loan Status Summary Link)
Import of PLUS Loan Information
• Missouri S&T uses EdConnect to pull in federal files
(including PLUS loan files) from the SAIG Mailbox
• We receive the CRSP##OP (PLUS Loan Application
File) daily from COD
• The file is loaded into PeopleSoft the same as any
other COD file
Financial Aid > File Management > COD Full Participant >
Import COD Response Data
Import of PLUS Loan Information
• Missouri S&T uses PS Query to see who and what was
sent in each file
• The tables to query:
• SFA_COD_DOCUMNT – Pulls the SP document ID &
Date/Time file inbounded
• SFA_COD_STUDENT – Student Name & SSN
• SFA_COD_AWARD – Loan amount, award year, credit
decision info, & Refund info
• SFA_COD_BORROWR – Parent citizenship, Name,
Email, Date of birth & SSN
• SFA_COD_BOR_ADR – Parent Address
Import of PLUS Loan Information
• The data we use:
• Parent/Student Social Security Numbers
• Parent Date of Birth
• Parent Address
• Refund Option (Borrower or Student)
• Credit Decision
• Endorser Option
• Loan Amount (Max Loan or specific loan amount)
• Period of Loan (options can be adjusted on COD)
Awarding & Originating PLUS Loans
• Once we receive an approval, we will accept the loan for
the amount the borrower requests, or contact if there is
no amount listed
• For Parent borrowers, we check NSLDS to verify the
parent is not in default on Federal loans (the FAFSA and
the PLUS loan application process does not do this)
• The CRSP##OP file information is used to create a
unique emplid (if not already in the system) for the parent
and a relationship is created between the parent and
student and between the student and parent.
Campus Community > Personal Information > Biographical
> Relationships > Relationships
Awarding & Originating PLUS Loans
• If a parent or graduate student has an endorser on
the loan, then the information will come in the
CRSP##OP file, still marked as denied, but with a
maximum amount that the endorser will agree to
borrow
• The loan can be awarded up to the endorsed
amount
• If the credit decision is appealed and approved a
CRCO##OP file will be generated and is loaded with
all other COD files
Awarding & Originating PLUS Loans
• The PLUS loan is then originated through the
normal origination process
• For Parent PLUS loans, the emplid and refund
option must be entered on the originated loan
Financial Aid > Loans > Direct Lending Management >
Manage Direct Loan Application
Awarding & Originating PLUS Loans
• Once the origination is sent to COD, it will match
with the credit check (which is good for 90 days),
and MPN.
• Missouri S&T originates and sends COD files
through EdConnect daily.
• The next day, we will receive a CRDL##OP file that
has all of the Direct Loan responses from the
previous day.
Disbursing & Refunding PLUS Loans
• Once the CRDL##OP file is loaded, the MPN is on
file, and the credit check is still good, we can
disburse the PLUS loan to the student’s account
through the daily disbursement process.
• We currently do not control the order of
disbursements, so the PLUS loan may or may not
be the source of a refund.
• If the Parent PLUS loan produces excess funds,
Student Financials has their side set up to look at
the refund option on the origination for that loan.
Disbursing & Refunding PLUS Loans
• If the refund goes to the parent borrower:
• The parent will receive a check for the refund to
the permanent address that was provided on the
application for the PLUS loan
• If the refund goes to the student or the graduate
borrower:
• The student has the option to receive a direct
deposit or a check for the difference
The Final Process
Parent applies and
completes a credit
check at
StudentLoans.gov
Run Origination
Update Origination
with Parent Emplid
and Refund Option
from Query
Receive application
file from COD and
load into PS
Accept PLUS loan on
the Student’s Award
Disburse PLUS Loan
to Student Account
Run Query to view
data from file
Create Parent Emplid
with Bio/Demo Data
in Query and
Relationships
Refund goes to
Parent’s Permanent
Address if Refund
Option is “Borrower”
Questions?
Contact
• Bridgette Betz
– Assistant Director
– Student Financial Assistance
– Missouri University of Science and Technology
– E-mail: [email protected]
This presentation and all
Alliance 2012 presentations
are available for download
from the Conference site at
www. heug.org
www.psugonline.org
www.federalusersnetwork.com
Presentations from previous meetings are also available

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