2023/2024 Direct Loan Quality Assurance Policy and Procedures Summary.
Following published guidance by the Department of Education the University of Manchester established this Direct Loan Quality Assurance Policy and Procedures Summary.
All policies and procedures concerning Title IV funding are designed with these Quality Assurance principles in mind, these include but are not limited to all financial aid policies in the student handbook, all polices in the internal Financial Aid Policy and Procedures manual.
Direct Loan Quality Assurance Requirement Overview
The Direct Loan Program regulations at 34 CFR 685.300(b) (9) require schools to implement and document a quality assurance process to ensure that they are complying with program requirements and meeting program objectives.
A school should have a quality assurance process in place that documents that the school is:
To be effective, the steps for implementing a Direct Loan quality assurance process will be unique to each school and need to take into account the characteristics of a school’s academic policies and programs and its borrower population. Schools are encouraged to use self-assessments to examine their procedures and take action on an ongoing basis to strengthen areas of risk.
Options for Meeting the Direct Loan Quality Assurance Requirement
The Department of Education (the Department) does not mandate the method by which schools meet the quality assurance requirement. Schools may have institutional-designed assessments and quality assurance processes in place to ensure that the Direct Loan quality assurance requirement is met.
Reporting loan records, disbursements, and adjustments to disbursements correctly to the Common Origination and Disbursement (COD) System
Description of Process
The Financial Aid Administrator (FAA) utilizes the University’s student system and password protected spreadsheets to record and originate all Federal Direct Loans. The spreadsheets provide a disbursement roster available to the FAA and relevant staff members. Using information from the University student system, enrolment of students on the list is verified and provides details of anticipated disbursements to the end user. The end user draws down the funds, posts the credits to the student accounts, and refunds any excess payments within three days, meeting the Federal requirements to post the credits within three days and disburse refunds within 14 days. We aim to exceed the requirement by completing the process within three days total.
Measurable Assessment
Disbursing and returning loan funds in accordance with regulatory requirements
Description of Process
For any student requesting FSA, before any loan is initiated, the University of Manchester require an ISIR (from the FAFSA) obtained via EdConnect, formal confirmation of the loan request from the student (which specifies the loan amount the student is requesting), Entrance Counselling, and a signed Master Promissory Note. Any comment codes on the ISIR must be resolved. The FAA independently verifies the aggregate loan limit in NSLDS for each student. If any of these items are not received or if any of these items are flagged by either the University systems or COD, we do not initiate loans or disburse funds to the student.
University of Manchester uses the advance payment method. Prior to loan disbursements the FAA requires Satisfactory Academic Progress reports from relevant academic departments in respect of each student. Once confirmed, the FAA requests the disbursements via COD, and initiates the drawdown of funds in G5. Funds are received via a third party (Convera), and instructions are provided by the University detailing the value of credits to the University in respect of fees, and details relating to the refund of any excess payments to students. Our aim is to ensure funds are fully processed within three working days, thereby meeting the Federal requirements.
Regular monthly reports from the University’s student system identify any changes in students’ enrolment status, thus indicating any potential change in students eligibility to continue to receive FSA funds. The student may also report any such changes to the FAA.
Where a student withdraws or interrupts the FAA undertakes a return of Title IV funds calculation to determine if funds need to be returned and notifies the student accordingly. Where necessary funds are returned within the required timeframe and loans are adjusted as required on COD.
Measurable Assessment
Disbursing the correct loan amount to the correct student
Description of Process
The FAA schedules disbursement dates for approved funds to draw down funds. This occurs at least once per academic term.
Direct Loan funds are drawn down based upon the disbursement schedule and received via a third party (Convera). Instructions are provided by the University to Convera detailing the value of credits to the University in respect of fees, and details relating to the refund of any excess payments to students. Funds received by the University in respect of fees are immediately applied to student accounts once funds are received from Convera.
Measurable Assessment
Completing monthly reconciliation and Program Year Closeout
Description of Process
The University of Manchester creates a spreadsheet that monitors and reconciles the disbursement of funds in COD, to the funds requested via G5, and the amounts received via Convera and how they are applied to students’ records or the refund of excess payments to students.
Measurable Assessment
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