Session DL-04

Title IV Funding To Schools: From COD Through G5 (For

Direct Loans)

George KarayianisU.S. Department of Education

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Title IV Funding to Schools

Direct Loan Funding

Cash Management

G5 – Updates

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“How do schools get their $Money$?”

Direct Loan FundingProcess Overview

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Triangle of Funds Management:Direct Loans

COD COD SystemSystem

G5G5 SchoolSchool

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Funding Lifecycle

• Initial funding• Disbursement and loan processing (in COD

System)• Drawdowns (through G5)• Monthly reconciliation disbursements/cash

– School/COD System/G5• End-of-award year reconciliation and

closeout

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• Funding based on actual disbursements• 7 day rule

– Records submitted up to 7 days in advance of disbursement date can trigger an increase in funding

Funding Basics

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versus

Funding Delivery Methods

Advanced Funds/

School-Initiated Drawdowns

Pushed Cash/ System-Initiated

Drawdowns

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• School receives an initial CFL• School draws down cash via the G5 Web

site• School sends in MPNs and actual

disbursement records to substantiate cash received

• COD System sends CFL increases to G5 so school can continue to drawdown funds as needed

Advanced Funds/School-Initiated Drawdowns

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SCHOOL

G5COD System

Batches

CFL

Funding Flow Advanced Funds

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• The COD System initiates drawdown requests based on actual disbursements accepted and posted by the COD System and cash is deposited in a school’s bank account

• Schools must have an accepted origination record and MPN on file before an actual disbursement is accepted and cash is pushed to a school

Pushed Cash/System-Initiated Drawdowns

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Funding Flow Pushed CashSCHOOL

G5COD System

Batches

CFLDrawdowns

FDLs

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Example:Funded Disbursement Listing

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Title IV Funding to Schools

Direct Loan Funding

Cash Management

G5 – Updates

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• 30-Day Reporting Requirement– 685.301(d) Direct Loan

• 3-Day Cash Rule– 668.162(b)

• Monthly Reconciliation– 685.102(b) Direct Loan

Cash Management Requirements

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• Monthly reconciliation – Compare your records with the Dept’s to

identify and account for discrepancies– Ending Cash Balance (ECB) may not equal

$0• Closeout

– Process ensuring all records are processed and all cash is accounted for

– The “final” reconciliation, but your ECB must = $0

Direct Loan Reconciliation versus End-Of-Year Closeout

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BeginningCash

Balance

CashReceipts

Refunds Of Cash+

EndingCash

Balance=BookedAdjustments-

Booked Disburse-

ments

Your Ending Cash Balance Equation

- -

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• School Account Statement (SAS)• COD funding Web screens• COD reports• G5 Web screens and reports

COD and G5 ToolsDirect Loan Reconciliation

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School Funding InformationWeb Screen

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Cash Activity Screen

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• Monthly file sent from the COD System – Contains school data as reflected on

the COD System • Sections of the SAS

– Cash summary– Disbursement summary by loan type– Cash detail– Loan/disbursement information

Direct Loan School Account Statement (SAS)

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Title IV Funding to Schools

Direct Loan Funding

Cash Management

G5 – Updates

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G5

• Department of Education’s payment system• Formerly known as GAPS• Provides location for all school funding processes

– Drawdowns– Drawdown adjustments– Refunds– G5 funding reports

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G5 Homepage

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G5 Registration

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My Awards

• An easy-to-view list of all of your institution's awards in G5

• Gives a quick snapshot of the award number, available balance, last date to draw, and award status

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G5 – My Awards Page

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How do I Request my Direct Loan Funds???

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Create Payments

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Create Payment – Payment Tab

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Create Payment – Summary Tab

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Automated E-mail

George,

Requesting User ID: Georgek@school.edu

Your request made on 08/12/2008 for $100.00, has been received. Your control number is 2008081206381 and you will receive your funds on 08/13/2008 in bank account ****9426.

• If you did not request this payment, please contact Helpdesk at 1-888-336-8930.

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Drawdown Adjustments

• Can’t move more than has been drawn• Net adjustment must equal zero• Do not use adjustments as a substitute for

returning excess cash• Do not use adjustments to close out a year

or bring your school’s cash balance to zero

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Select Drawdown Adjustments from Payments Menu

 

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Enter School ID

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Click Continue

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Enter Amount of Adjustment

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Click Continue

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Click Submit Adjustments

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Adjustment Confirmation

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Advantages of Electronic Refunds• Posts to GAPS within 2 business days• You control process• You direct from which bank account the

money is refunded• Multiple refunds on one screen and at one

time• Reduces human error and delays

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Enter Refund Functionality

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Enter Refund Amount

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Confirm refund and click continue

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Select confirm to process refund

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Refund confirmation

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G5 Reporting

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External Award Activity

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External Award History Report

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External Award History Report

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External Award History Report

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• COD School Relations Center 1-800-848-0978

• G5 Helpdesk1-888-336-8930

Need Funding Help?

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Related Conference Sessions

Session DL-01 Direct Loan Fundamentals

Session DL-02 Direct Loan Servicing Fundamentals

Session DL-03 Direct Loan Tools (hands-on)

Session DL-05Unlocking the Potential of Direct Loan Reports

Session DL-06 COD Web Hands-on for Direct Loans

Session C-12Title IV Funding to Schools: From COD through G5 (For Pell Grants, ACG, and National SMART)

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Contact Information

George KarayianisFunds Management Lead, Direct Loan Program Operations Divisiongeorge.karayianis@ed.gov(202) 377-3141