Session C-17

National Student Loan Database System- NSLDS Aggregate Calculations

Brenda Seidel U.S. Department of Education

Jim YoderVangent

Adobe Acrobat Document

The PDF embedded document is the NSLDS Aggregate Calculations Participant Workbook used by participants in this session. It also contains a blank Aggregate Worksheet for FAAs to use when hand calculating consolidation loans.

To view each Adobe Acrobat Document embedded in the various slides that follow, escape out of presentation mode and double click the Adobe Acrobat Document:

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Objectives

• Understand aggregate loan terms

• Identify loan types that impact aggregate limit calculations

• Hand calculate aggregates using NSLDS methodology

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Defining & Using Aggregates

• NSLDS Loan Terms– Outstanding Principal Balance

(OPB)– Aggregate amounts

•Aggregate Loan Information•Loan Level Aggregate Principal

Balance– Net Loan Amount

•Loan Amount less Cancellations and Refunds

• Why are NSLDS Aggregate amounts used?

Adobe Acrobat 7.0 Document

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NSLDS Aggregate Totals

Calculation Process

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Calculate Each Loan Type’s Loan Level Aggregate OPB

• NSLDS reviews loans in student’s financial aid history

• Categorizes each loan into respective loan type (e.g., Sub or Unsub)

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Calculate Each Loan Type’s Loan Level Aggregate OPB, cont.

•Three main loan groupings:

–Recent loans

–Older loans

–Consolidation Loans

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Recent Loans• May have adjustments not yet

posted

• May have additional disbursements or adjustments not yet reported to NSLDS

• Included at end of calculation as Pending Disbursements

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Recent Loans, cont.Recent loans

Period End Date

Loan Period End Date plus 90 days has not yet passed

Loan Status IA, ID, IG, IM

Aggregate Outstanding Principal Balance (Agg. OPB)

Greater of –OPB, or–Disbursed Amount

Not to exceed Net Loan Amount

Pending Disbursement

Net Loan Amount less reported amounts (Total Disb or OPB)

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Components of Recent Loans

Pending Disbursement Amount = Net Loan Amount – Disbursement Amount

Loan Status (“in school”)

Loan Period End Date + 90 Days has not passed

Greater of: Disbursement

Amount or OPB

Adobe Acrobat Document

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Hand Calc a Recent Loan

Review Student’s FAH

• Exercise #1

Adobe Acrobat Document

Determine Recent Loans Agg OPB and Pending Disbursements:

1) Find the recent loan and determine the Agg OPB. Fill in section A of the worksheet.

2) Determine the recent loans pending disbursements and fill in section B of the worksheet.

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Older LoansIncluded in Aggregate OPB calculations

Older loans

Period End Date 90 days or older

Loan Status “Open” Loan Status (i.e. OPB>0)

Aggregate Outstanding Principal Balance (Agg. OPB)

Lesser of –Net Loan Amount, or–Disbursed Amount, or–OPB

If all are greater than zero

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Components of Older Loans

Loan Status

Loan Period End Date + 90

days have passed

Lesser of: Disbursement Amount, OPB or Net Loan

Amount

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Hand Calc an Older Loan

Review Student’s FAH

• Exercise #2

Adobe Acrobat Document

Determine Older Loan’s Agg OPB:

1) Find the older loan and determine the Agg OPB. Fill in section C of the worksheet.

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Consolidation Loans (CL) & Aggregate OPB

Process to determine impact of CL on Aggregate OPB:

A. Identify underlying loans

B. Determine number of CLs & Totals

C. Determine Calculated Agg. OPBs

D. Determine CL’s Unallocated Agg. OPB

E. Calculate CL’s Combined Loans Agg. OPB

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Identify CL’s Underlying Loans

Step 1: Determine Loan Status

Loan Status is one of these: PC PN DN DP PF

Step 2: Determine Loan Status Date

Loan Status Date: ________

Is Loan Status Date within 210 days (before or after) Consolidation Loan Date? Yes No

Step 3: Underlying Loan?

If Loan Status is one listed in Step 1 and the answer to Step 2 is Yes, then loan is underlying loan.

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Identify Underlying Loans

Review Student’s FAH

• Exercise #3

Adobe Acrobat Document

Identify the underlying loans:

1) Find the consolidation loan’s underlying loans and fill in section E of the worksheet. Enter the underlying loan number and its corresponding disbursement amount.

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Consolidation Loans (CL) & Aggregate OPB

Process to determine impact of CL on Aggregate OPB:

B. Determine number of CLs & Total Amounts

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Determine Calculated Agg. OPBs

• Why is the ratio (%) important? – NSLDS determines the loan type amounts based on percentages / portions of the overall totals.

47% of the Consolidation loan is the Subsidized portion 35% of Consolidation loan is Unsub portion

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Determine Calculated Agg. OPBs

• Calculate ratio for each Loan Type - percentage of CL attributable to Loan Type

Sum of CL Disb Amts

Sum of Underlying Loans’ Disb AmtsRatio =

Adobe Acrobat Document

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Example to determine a ratio

Determine ratio for subsidized loansTotal of underlying Sub Disbursement Amounts = $18,625Total of CL Disbursement Amounts = $39,000Ratio = $18625/$39,000 = 0.47756

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Ratios for Loan Types/Amounts

Review Student’s FAH

• Exercise #4

Adobe Acrobat Document

Determine totals to get your ratios:

1) Determine the totals for the underlying loan disbursements in section E of the worksheet.

2) Fill in the amounts for each consolidation loan in section D of the worksheet, and then total the disbursement amounts.

3) In section F, determine the Subsidized amounts and fill in columns 2 through 4. Do the same for the other loan types in sections G and H.

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Example of applying ratios Determine ratio for subsidized loans

Total of underlying Sub Disbursement Amounts = $18,625Total of CL Disbursement Amounts = $39,000Ratio = $18625/$39,000 = 0.47756

• Determine Calculated Subsidized Aggregates(Ratio CL Agg OPB Amount)

– Calculated Subsidized Aggregate for CL #4= $8,119(0.47756 $17,000)

– Calculated Subsidized Aggregate for CL #5= $10,506(0.47756 $22,000)

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Determine Calculated Agg. OPBs

• Determine each Loan Type’s Calculated Agg. OPB amount for each CL

Aggregate = Ratio CL Agg. OPB Amt

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Apply Ratios to Loan Types

Review Student’s FAH

• Exercise #5

Adobe Acrobat Document

Apply the ratios to each loan type:

1) In section F, fill in column 5 then multiple the ratio for each consolidation loan to get their individual Subsidized calculated amounts. Do the same for the other loan types in section G and H. Total each sections calculated amounts.

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Calculate CL Unallocated Amounts

CL Agg. OPB Amt (Older Loan)

- Total Perkins Share

- Total PLUS Share

- Calculated Sub Aggregate OPB

- Calculated Unsub Aggregate OPB

= Calculated Consolidation, Unallocated Aggregate OPB for CL

Adobe Acrobat Document

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Aggregate OPB

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Sum Loan Level Agg. OPBs by Loan Type

• Collect all loan level Agg. OPB numbers

• Roll individual calculated numbers into respective loan types

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Sum Loan Level Agg. OPBs by Loan Type, cont.

• Add in respective loan type’s pending disbursements

• Display each loan type’s Aggregate OPB Totals in Aggregate Loan Information section

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Subsidized Loan Aggregate Calculation Components

Subsidized OPB- Loan Types(from Loan Summary- Agg. OPBs) FFEL Subsidized (SF)

Recent or Older Loans Direct Stafford Subsidized (D1)

Recent or Older Loans Direct Consolidation Subsidized (D6)

Calc’d Sub Amounts FFEL Consolidation (CL)

Calc’d Sub Amounts

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Unsubsidized Loan Aggregate Calculation Components

Unsubsidized OPB- Loan Types (from Loan Summary- Agg. OPBs)• FFEL Unsub Supplemental Loan (SL)

• Older Loans Federally Insured (FISL) FFEL Refinanced Loan (FI)

Older Loans Direct Stafford Unsubsidized (D2)

Recent or Older Loans Direct Consolidation Unsubsidized (D5)

Calc’d Unsub Amounts FFEL Consolidation (CL)

Calc’d Unsub Amounts

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Evaluate Totals for Eligibility

=+

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Adding up the Agg. OPBs

Review Student’s FAH

• Exercise #6

Adobe Acrobat Document

Adding up the Agg OPBs to get your Aggregate Totals and compare them to loan limits:

1) Determine the unallocated amounts for each consolidation loan by filling in the totals in section J of the worksheet.

2) Determine Mary’s aggregate total information by filling in the totals in section K of the worksheet. Add up each section’s total amounts, by the respective loan types.

3) Compare the Subsidized and Combined totals to the loan limit chart to determine which two warning icons Mary would receive when displaying her NSLDS Financial Aid History web page.

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Additional NSLDS Resources

• NSLDS for Financial Aid Professionals

http://nsldsfap.ed.gov

• Information for Financial Aid Professionals (IFAP)

– Dear Colleague Letter GEN-96-13

– Dear Partner Letter GEN-03-12

– NSLDS Newsletters

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We appreciate your feedback andcomments. We can be reached at:

NSLDS Customer Service• Phone: 800-999-8219• Fax: 785-838-2154• Web: www.nsldsfap.ed.gov• Email: nslds@ed.gov

Contact Information