Last updated on APRIL 21, 2016
Applies to:PeopleSoft Enterprise CS Financial Aid - Version 8.9 to 9 [Release 8.9 to 9]
Information in this document applies to any platform.
We have a PLUS loan that has disbursed where the student's credit decision was originally denied, but then accepted by COD because the borrower secured an Endorser – however, the PLUS Credit Counseling was not completed. Because the borrower did not complete the PLUS Credit Counseling as part of the loan, this resulted in the Credit Requirements Flag equaling N (False). This loan should not have been disbursed until the Credit Requirements Flag was equal to a Y (True), but it disbursed even though that field is not a Y. As a result, the disbursement was rejected by COD with Edit 217.
Reject Edit 217 Scenario:
1) For 2014-2015, the borrower completes a PLUS Request through the StudentLoans.gov website.
2) The Institution initiates a credit check using the COD website.
3) a. After initially being denied, the Credit Check is approved (e.g., because an endorser is secured or appeal is approved).
b. PLUS Credit Counseling, however, is pending (not completed).
c. This results in a Credit Requirements Met = false value.
d. COD generates a CRSP15OP file with <CreditRequirementsMet>false</CreditRequirementsMet> contained within.
NOTE: Because the system doesn’t load the SP file into the app side of the database, the Credit Requirements Met field on LOAN_ORIGINATN is blank.
4) School submits to COD an Origination file containing this borrower's PLUS award
5) Because schema 4.0a does not support <CreditRequirementsMet> tag in its schema, that tag will be absent in the Common Response files (e.g., Origination Acknowledgment file) that COD sends back to the institution.
6) For awards that have been accepted by COD in Award Year 2014-2015, in Regular Response files (RS), Credit Decision Status is the only available field that determines whether or not the loan is eligible for disbursement as part of the Origination Inbound routine. So, in this example, because Credit Decision Status equals Accepted (endorser approved), it results in the Loan Eligibility Check field being set to Credit Approved, and the OK to Disburse flag to be set to Yes
7) This gives the appearance that the loan is ready to be disbursed. Authorization/Disbursement occurs despite the "blank" Credit Requirements Met value on LOAN_ORIGNATN.
8) The user generates a Disbursement Outbound file.
9) That file gets rejected by COD with Reject Edit 217 due to the pending PLUS Credit Counseling status.
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