FEDERAL DIRECT PLUS LOAN PROCESSING PROCEEDURES

KENT STATE UNIVERSITY

10/31/2013

CONTENTS
CLICK TO GO TO SECTION

About PLUS Applications I. Application Information ...p2 II. The Plus Reportp2

Awarding I. Tracking Requirements ...p3 II. Approved Applications. ...p3 a. Full Term (Fall/Spring) applications b. Single Semester Applications III. Denied Applications.. p4 a. Undecided or Not Pursuing b. Appeal the Decision or Pursue an Endorser IV. Applications with Mismatched Data...p6 V. Ineligible Applications. ...p7

Adjusting Awarded Loans I. Endorsed / Appealed Applications and Credit Overrides .p7 II. No Longer Pursuing Endorser or Appealing the Decisionp8 III. Changing the Loan Periodp8 IV. Increases p9 V. Decreases.. p9 VI. Canceled Applications p10

Roamesg List I. Parent PLUS Loan. p10

II. Graduate PLUS Loan. p10

ABOUT PLUS APPLICATIONS

APPLICATION INFORMATION
Parents of dependent undergraduate students and graduate students may apply for the PLUS loan on www.studentloans.gov. Completed applications will be visible immediately in COD See Figure 1. Within 2448hrs the application should be visible in RPAUCOD. The following information is found on the completed Plus Application: Credit decision Loan amount Loan period Denial action (Appeal, pursue endorser, undecided, will not pursue) The deferment decision Refund recipient (student or parent) Endorser information and amount

THE PLUS REPORT

The report is produced Monday and Wednesday during peak processing periods. When the volume of applications decreases, the report is produced Wednesdays only. The report can be found here: L:\USERS\_Cognos\Loan\2012-2013\PLUS Apps review 13-14

Tabs Listed on the PLUS Report Counts RRAAREQ Plus Data Summer FS Denials Trying Denials No Action Pending No ISIR REJ No Match Gives a tally of entries of all applications on each tab New applications that do not have a tracking requirement listed All applications that need to be processed as of the report date Approved summer applications Approved Fall/Spring applications Denied applications, the applicant will appeal the decision or pursue an endorser Denied applications the applicant will not pursue or is undecided Applications awaiting a credit decision No valid FAFSA on file Data on PLUS application does not match what we have on file

AWARDING

TRACKING REQUIREMENTS
Starting with the RRAAREQ tab on the report, add the appropriate tracking requirement (PLPGE or PLPAE) to RRAAREQ with a status of P for pending. These can also be added using the RRAMASS page. Tracking Requirements (: PLPGE Graduate PLUS PLPAE Parent PLUS Status: P Pending, N Not Applicable, E Endorser or Appeal, C Complete.

APPROVED APPLICATIONS
FULL TERM (FALL/SPRING) APPLICATIONS 1. Pull up the students Banner ID in RPAAWRD. Here you will need to check the students dependency status to make sure that it matches the loan type. ( See more about this in the Not Eligible section). 2. A warning message will pop up on the bottom of the page if the student has outstanding verification requirements, or has been cited for Academic Progress (ROASTAT). In either case you will not be able to award the PLUS for the student, and should proceed to ROAMESG and leave one of the following messages: 3. LPVF Parent Plus application cannot be processed due to verification. 4. LGVF Graduate Plus application cannot be processed due to verification. 5. LPAP Parent Plus application cannot be processed due to Academic Progress. 6. You may also leave a RHACOMM message detailing that PLUS is approved but cannot be awarded. 7. Go to RBAABUD to add the PLUS loan fees to the students budget using the code LFEP. 8. Fall/Spring Fee amount is $484 for Parent PLUS, or $386 for Graduate PLUS. 9. Single Semester Fee amount is $242 for Parent PLUS, or $193 for Graduate PLUS. 10. Return to RPAAWRD and cancel the PLUS estimate. Graduate Students will not have an estimate, and some dependent students will already have their estimate canceled. 11. Calculate the students remaining need by subtracting awarded aid from the newly updated budget. 12. Check the PLUS report under the summer or fall/spring tabs and review the columns MAX LOAN IND, and APP LOAN AMOUNT. a. b. If MAX LOAN IND = Y, award the student the maximum PLUS amount they can have If MAX LOAN IND = N, award the student no more than the amount indicated in the

based on your need calculation.

APP LOAN AMOUNT column based on your need calculation. 3

c. Use Fund Codes LFUPA1 for Parent PLUS or LFUGA1 for Graduate PLUS. 13. Once approved PLUS Loans have been awarded and, if necessary, created go to RRAAREQ and update the PLUS status with a C to indicate that it has been completed. SINGLE SEMESTER APPLICATIONS If the PLUS is for one semester, but the student has a multiple semester budget (i.e. Spring only PLUS, with Fall/Spring Term budget) the loan application must be created in RPALORG after it has been awarded. 1. In RPAARWD, select Options from the top of the page, which will open a drop down menu. On the drop down menu select Create Loan Applications. This will take you to RPALORG 2. In RPALORG you should be on the DL Origination Tab, scroll down to the PLUS loan identified as LFUPA1 or LFUGA1. 3. After locating the PLUS Loan change the loan period to the correct term. 4. On the right side, make sure that the Loan Status is APPR and change the Origination Status from Not Ready to Ready to Send. 5. Select the Lock check box, and save your progress. 6. Check the other loans in RPALORG to make sure none of them have an Origination Status of Not Ready. If so, change status to Ready to send. 7. Save and Exit RPALORG. 8. Once approved PLUS Loans have been awarded and, if necessary, created go to RRAAREQ and update the PLUS status with a C to indicate that it has been completed.

DENIED APPLICATIONS
UNDECIDED OR NOT PURSUING 1. Pull up the students Banner ID in RPAAWRD. Here you will need to check the students dependency status to make sure that it matches the loan type. (see more in the Not Eligible section). a. A warning message will pop up on the bottom of the page if the student has outstanding verification requirements, or has been cited for Academic Progress. In either case you will not be able to award the PLUS for the student, and should proceed to ROAMESG and leave one of the following messages: LPVF Parent Plus application cannot be processed due to verification. LGVF Graduate Plus application cannot be processed due to verification. LPAP Parent Plus application cannot be processed due to Academic Progress. You may also leave a RHACOMM message detailing that PLUS denial cannot be processed. 4

2. In RPAAWRD cancel the PLUS estimate. Graduate Students will not have an estimate, and some dependent students will already have their estimate canceled. 3. If you are processing a Graduate PLUS application proceed to step 12. 4. For Parent PLUS applications award the PLUS loan in the amount of $100. 5. In RPAARWD, select Options from the top of the page, which will open a drop down menu. On the drop down menu select Create Loan Applications. This will take you to RPALORG 6. In RPALORG you should be on the DL Origination Tab, scroll down to the PLUS loan identified as LFUPA1. The loan amount should be $100. 7. Go to the Disbursement Information tab. Here you will see amounts listed for each semester. Change the Gross Amount to 0 in every section, and save. 8. Return to the DL Origination tab, and the LFUPA1 loan. Here you should notice that the Requested Amount is now 0 and the Approved Amount is still 100. 9. Change the Approved Amount to 0. U=Unsent/Credit Denied. Save and exit RPALORG. 11. Return to RPAAWRD and cancel the $100 PLUS, that was just awarded. This will inform others that the denial has been processed and the additional unsubsidized funds can be awarded. 12. Once denied PLUS Loans have been processed go to RRAAREQ to update the PLUS (PLPAE, PLPGE) status with an N to indicate that the student was not eligible. 13. Go to ROAMESG and leave the appropriate message from the list below: LPDE Parent Plus denied and will not pursue. LPDU Parent PLUS denied and parent is undecided. LDEN Graduate PLUS denied undecided LGDE Graduate PLUS denied and will not pursue. APPEAL THE DECISION OR PURSUE AN ENDORSER 1. Pull up the students Banner ID in RPAAWRD. Here you will need to check the students dependency status to make sure that it matches the loan type. ( See more in the Ineligible application section). a. A warning message will pop up on the bottom of the page if the student has outstanding verification requirements, or has been cited for Academic Progress. In either case you will not be able to award the PLUS for the student, and should proceed to ROAMESG and leave one of the following messages: LPVF Parent Plus application cannot be processed due to verification. LGVF Graduate Plus application cannot be processed due to verification. LPAP Parent Plus application cannot be processed due to Academic Progress. 5 10. On the right column change the Loan Status to DENI and the Origination Status to

You may also leave a RHACOMM message detailing that PLUS denial cannot be processed. 2. In RPAAWRD cancel the PLUS estimate. Graduate Students will not have an estimate, and some dependent students will already have their estimate canceled. 3. Calculate the students remaining need by subtracting awarded aid from the newly updated budget. 4. Check the PLUS report under the summer or fall/spring tabs and review the columns MAX LOAN IND, and APP LOAN AMOUNT. a. If MAX LOAN IND = Y, award the student the maximum PLUS amount they can have based on your need calculation. b. If MAX LOAN IND = N, award the student no more than the amount indicated in the APP LOAN AMOUNT column based on your need calculation. c. Use Fund Codes LFUPA1 for Parent PLUS or LFUGA1 for Graduate PLUS. 5. In RPAARWD, select Options from the top of the page, which will open a drop down menu. On the drop down menu select Create Loan Applications. This will take you to RPALORG 6. In RPALORG you should be on the DL Origination Tab, scroll down to the PLUS loan identified as LFUPA1 or LFUGA1. 7. After locating the PLUS Loan change the Loan Period to the correct term(s). 8. On the right column change the Loan Status to DENI and the Origination Status to U=Unsent/Credit Denied. Save and exit RPALORG. 9. Once denied PLUS Loans have been processed go to RRAAREQ to update the PLUS status (PLPAE, PLPGE) with an E to indicate that the applicant is still pursuing the PLUS Loan. 10. Go to ROAMESG and leave the appropriate message from the list below: LPDC Parent Plus was denied, Parent is appealing the decision or pursuing an endorser. LGPC Graduate Plus was denied, Student is appealing the decision or pursuing an endorser.

APPLICATIONS WITH MISMATCHED DATA

These applications can be found on the No Match tab. Use the APP ID column to query the application in RPAUCOD. Once you have located the application you can search SPAPERS to try to find a matching student. In most cases you will find the student, but the application will be invalid if any of the following are incorrect: a. Student Social Security Number b. Student birth date c. Student Last Name or First Name 6

If the students name is mismatched because of a suffix or middle name abbreviation you may be able to use the application. If you cannot use the application go to ROAMESG and add one of the following messages including detail specific to the students application. (i.e, social security number does not match what we have on file, we have xxx-29-xxxx) LPNP Student data is switched with parent data. LPDM Student data is mismatched with what we have on file.

INELIGIBLE APPLICATIONS
The following applications cannot be processed and ROAMESGs must be added: Graduate or independent applicant for Parent PLUS (LPGR) Student listed as parent (LPNP) No need based on cost (LPCO, LCOA) Credit expired (LPCR) Verification (LPVF, LGVF), or academic progress(LPAP, LGAP), or no FAFSA (LPFS, LFSA)

ADJUSTING AWARDED LOANS

ENDORSED / APPEALED APPLICATIONS AND CREDIT OVERRIDES An application that was originally denied can become approved under the following circumstances: The parent or graduate student has successfully sought an endorser for the loan. The parent or graduate student has submitted an appeal to the Department of Education and been approved. The Department of Education has overridden the original credit decision. 1. Check RPAAWRD for the status of LFUPA1. The loan may have been canceled, awarded as denied. 2. Go to RPALORG and view the PLUS Loan data tab. Here you want to review the Current Credit Check Status, Endorser Amount, and the Credit Override Code fields for updated information. a. For applications that have been endorsed there should be an endorser amount listed b. For applications that have been appealed or overridden the Credit Override field may state overridden with new info, and the Current Credit Check Status may have changed to approved. c. If there are no changes listed in RPALORG sign into COD to check the status of the loan, and to see if there are other applications that may have the approval attached. 3. Go back to RPAAWARD and update LFUPA1 with the new loan amount listed in RPALORG. a. If the student has already received additional unsubsidized loan funds cancel any undisbursed portion on both RPALORG and RPALORG. You can refer to the procedures for the process for more information. 7

4. Return to RPALORG and scroll down to the PLUS Loan that has the updated information (If the loan in RPALORG does not have new information, you will need to create a new loan.) 5. Update the Approved Amount and Loan Period Code fields. 6. Go to the Disbursement tabs LFUPA1 update the Gross Amount field for the applicable terms and save. 9. Return to the DL Origination tab. On the right side change the Loan Status to APPR and change the Origination Status to Ready to Send. 10. Select the Lock check box, and save your progress. NO LONGER PURSUING ENDORSER OR APPEALING THE DECISION Currently, borrowers must contact the Student Financial Aid Office to indicate any changes in the status of their loan. Parents who no longer wish to pursue the loan may call, email, or fax their request. 1. Verify that there is an awarded PLUS loan for the student on RPAAWRD. 2. Go to RPALORG and scroll down to the corresponding PLUS loan. 3. Click the PARENT DATA tab and verify the parents name, social security number, and date of birth if speaking by phone or in person. 4. Go to the DISBURSMENTS INFORMATION tab and zero out the gross amount for each term. 5. Return to the DL ORIGINATION tab to zero out any remaining amount. 6. Go to RPAAWRD to cancel the PLUS loan. 7. Go to RRAAREQ and change the status of PLPAE or PLPGE from an E to an N. 8. Go to RPAPBUD to remove the loan fees from each term. 9. Go to ROAMESG to leave the message LPNE stating that the parent requested to cancel the plus loan. For graduate students go to RHACOMM and write a note explaining that the student requested to cancel the loan. CHANGING THE LOAN PERIOD A parent or graduate student may request that the loan period be changed. For example, they may have applied for fall and spring terms, but would actually like the loan to be fall only. 1. In RPAAWRD go to the AWARD SCHEDULE tab. 2. Adjust the PLUS loan to the correct term and save. 3. Go to RPALORG and scroll down to the PLUS loan. 4. Change the LOAN PERIOD CODE to the new term and save. 5. Go to the DISBURSEMENTS INFORMATION tab and enter the correct amounts for each term. 6. If one term has already disbursed, you will need to insert a new record in order to add the future amounts to be disbursed. Save. 7. Return to the DL ORIGINATION tab, if the loan is not partially disbursed 8

INCREASES Plus loans may be increased up to the award amount requested on the plus loan application. If the borrower would like to request more than what is listed on their application, they will have to apply for a new PLUS loan. 1. Verify that there is an awarded PLUS loan for the student on RPAAWRD. 2. Go to RPALORG and scroll down to the corresponding PLUS loan. 3. Click the PARENT DATA tab and verify the parents name, social security number, and date of birth if speaking by phone or in person. 4. Next, check the PLUS LOAN DATA tab for the Application Loan Amount, and the Credit Check Expiration Date. Make sure that the total plus award is not more than the application loan amount. If Maximum Loan Requested is checked then you may increase the loan as long as the credit has not expired. 5. Go to RPAAWRD and update to the requested amount. 6. If you are able to edit RPALORG continue to step 7. Otherwise, complete a PLUS Adjustment form. 7. Create the Loan for the proper terms. DECREASES Loans may be decreased only if the loan has not disbursed to the student account. 1. Check RPAAWRD Paid column to verify loan has not disbursed a. If the loan has disbursed to the student account, the student must contact the Bursars Office for adjustments. 2. 3. 4. Verify that there is an awarded PLUS loan for the student on RPAAWRD. Go to RPALORG and scroll down to the corresponding PLUS loan. Click the PARENT DATA tab and verify the parents name, social security number, and date of birth if speaking by phone or in person. 5. 6. 7. 8. 9. If the loan has not paid to the student account: Access RPAAWRD fund code (example: LFUPA1, LFUGA1) and reduce loan to new amount To cancel a loan to zero amount, enter CNCL in the status field Click save Check RPAAWRD Award Schedule Tab to verify loan amounts for term(s)

10. Add comments to RHACOMM or message to student on ROAMESG, as appropriate 11. Complete the Direct Loan/PLUS Loan Adjustment Form for Loan Area, or zero out the award on RPALORG.

CANCELED APPLICATIONS A parent or graduate student may contact the office to cancel any loan or loan portion that has not disbursed. If the loan has disbursed direct the borrower to the Bursars Office to make changes. 1. 2. 3. Cancel the award on RPAAWRD Go to RPALORG to zero out the amounts on the Disbursements info tab. Add a RHACOMM note.

ROAMESG LIST

PARENT PLUS LOAN

LPAD LPAP LPCO LPCR LPDC LPDE LPDM LPDU LPFS LPGR LPNE LPNP LPVF Not Admitted Parent PLUS application cannot be processed due to Academic Progress Student has reached cost of attendance and is not eligible for PLUS Credit check may expire Parent PLUS was denied; Parent is appealing the decision or pursuing an endorser Parent PLUS denied and will not pursue. Student data is mismatched with what we have on file in SPAIDEN Parent PLUS denied and parent is undecided No FAFSA on file Independent or grad student not eligible Parent will no longer seek endorser or appeal decision Student data is switched with parent data Parent Plus application cannot be processed due to verification.

GRADUATE PLUS LOAN

LADM LCOA LDEN Not Admitted Reached cost of attendance not eligible Graduate PLUS denied undecided 10

LFSA LGDE LGPC LGVF LSUS LUGI LUGP

No FAFSA Graduate PLUS denied and will not pursue Graduate PLUS was denied; Student is appealing the decision or pursuing an endorser. Graduate PLUS application cannot be processed due to verification. Cannot borrow, must max sub/unsub Independent undergrad not eligible Dependent undergrad not eligible For handling specific PLUS questions and situations see the PLUS FAQ

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FIGURE 1. PLUS Application in COD. The application has been denied and the parent has indicated that she is undecided about pursuing the loan.

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FIGURE 2

Approved Parent PLUS Loan after processing is complete. LFUPA1 has been accepted, and the amount has been paid.

FIGURE 3

Tracking Requirement PLPAE has been completed with a status of C.

FIGURE 4 RPALORG with approved and accepted PLUS Loan.

FIGURE 5

RPALORG, Plus Loan Data tab with approved PLUS Loan that has been overridden with new info.