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Additional 2022–23 Direct Loan Program Year Closeout Information

  • 5 min read
Federal Student Aid

FSA has released additional information related to the 2022–23 Direct Loan Program Year Closeout. Please see the full announcement below.


POSTED DATE: June 26, 2024
AUTHOR: Federal Student Aid
ELECTRONIC ANNOUNCEMENT ID: DL-24-04
SUBJECT: Additional 2022–23 Direct Loan Program Year Closeout Information

Over the past few months, we have provided information about 2022–23 Direct Loan Program Year closeout (see the Feb. 12, 2024 Electronic Announcement and the May 3, 2024 Electronic Announcement). This announcement supplements the previous guidance.

As a reminder, to be considered successfully closed out, the school must—

  • Reconcile to an Ending Cash Balance of $0 and Total Net Unbooked Disbursements of $0, as reflected on your monthly School Account Statement (SAS) and in your school’s internal records; and
  • Complete the School Balance Confirmation form on the Common Origination and Disbursement (COD) website. The Balance Confirmation form can be completed after the school has reconciled to a $0 balance both internally and externally. Once the school has completed their final reconciliation, the school should log in to the COD website. From the School options menu click on the Balance Confirmation link on the left-hand side of the page and follow the instructions on the School Balance Confirmation screen.

When is the Data Submission (Closeout) Deadline?

The data submission (closeout) deadline to submit records is 8 p.m. Eastern time (ET) on Wednesday, July 31, 2024. The COD System subsequently must accept all records submitted by the data submission (closeout) deadline to be included in the school’s final Ending Cash Balance for 2022–23. Any 2022–23 batches or records received after the closeout deadline will be rejected and returned to the school.

Note: Though the data submission (closeout) deadline is July 31, 2024, cash management, disbursement and adjustment reporting, and monthly reconciliation requirements supersede the closeout deadline. A school should be able to reconcile to a $0 balance and close out within a month or two of its final 2022–23 actual disbursements.

What if a school does not successfully close out by the data submission (closeout) deadline?

Any school that has not successfully closed out by the data submission (closeout) deadline and has a positive Ending Cash Balance will be sent a Combined Programs Demand Letter requesting the return of the outstanding balance as a refund of cash. If the outstanding balance is not paid by the deadline noted in the letter, a receivable will be established, and the school will be billed accordingly.

Any school that has not successfully closed out by the data submission (closeout) deadline and has a negative Ending Cash Balance will be sent a Combined Programs Negative Balance Letter requesting the resolution of the outstanding balance.

Exceptions to the last processing day of the program year may be made on a case-by-case basis if the school’s processing period extends beyond the data submission (closeout) deadline. Schools falling within this category must contact the FSA Partner and School Relations Center at the number provided below for further assistance. Once the closeout deadline has passed, requests for extensions to submit new or increased awards, new disbursements, or upward disbursement adjustments may be made via the Request Reopen/Extended Processing link under the School menu on the COD website. Schools do not need to request Extended Processing to process downward adjustments to disbursements or non-financial changes.

If a school has any concerns about meeting the data submission (closeout) deadline, they should contact FSA Partner and School Relations Center prior to the deadline for further assistance.

When is the deadline for drawdowns and/or drawdown adjustments?

Drawdowns and/or drawdown adjustments must also be requested and completed by the processing deadline of 8 p.m. ET on Wednesday, July 31, 2024.

As a reminder, all refunds for Direct Loan must be returned via G6. Refunds of Cash sent via G6 can take 7–9 days to process and post to the COD System. A school should consider its timing when submitting Refunds of Cash in order for these types of transactions to be reflected in its Ending Cash Balance prior to the deadline.

Note: Schools should not use drawdown adjustments in G6 to make a refund of cash. Also, refunds of cash are school, program, and award year specific and should not be netted with a drawdown from another school, program, or award year.

How will a school be notified of its final balance?

In early August 2024, Federal Student Aid will produce a final 2022–23 SAS and send it to all schools. A school will receive this SAS even if it is at a $0 balance or has previously closed out for this program year. If a school has not completed reconciliation to a $0 balance prior to the deadline, it is important that its reconciliation be completed using this final SAS. This SAS will serve as a final record of the school’s official Ending Cash Balance for the 2022–23 program year and should be kept as part of its reconciliation documentation.

Contact Information

We appreciate your cooperation as we work to close out the 2023–23 Direct Loan Program Year. If you have questions about this announcement or need assistance with closeout, contact the FSA Partner and School Relations Center at 1-800-848-0978. You may also email CODSupport@ed.gov.