Here are the instructions for why and how you update the fee that is applied to a loan.
Explanation: The origination fee amount for a US Federal Loan is decided yearly based on the 10 Year Treasury bill and other factors. The rates unfortunately change during the school year in many cases. The fee is an origination fee. Thus the fee rate is based on when the loan is originated with the federal government. Thus a loan that is originated prior to October 1st would have one fee but another loan on October 1st could have a different rate. The system carries one rate at a time. It is best practice to change the rate in the system on the date that the new rate take effect. Awards pull the rate when they are created. Thus a loan created prior to the changed rate would maintain the rate of when it was created. A loan that is created after a change in rate would have the new amount. If a loan that was created in the system needs to have a different rate then the rate that is currently listed it would need to be manually updated to reflect the correct rate.
Steps to update Rate (Diagram A below):
1. Go to Financial Aid.
2. Top menu, select Source.
3. Find and select the student loan that you want to update the rate for.
4. Go into edit mode.
5. Go to "Report Types / COD" section.
6. Change the Origination Fee Percentage and Interest Rebate Percentage to reflect the new values.
7. Save changes.
8. Repeat for each aid source loan that is in the system that may also need changing.
Steps to update Awards (Diagram B below):
1. Go to Financial Aid.
2. Top menu, select Student.
3. Find the student or students that you would like to update.
4. Select a Student.
5. Go into edit mode.
6. Select the award that needs to be changed.
7. Change the Origination fee to be the new percentage.
8. Going into each disbursement (that is not disbursed), click Update COD, Select Recompute.
9. If there is an award that is disbursed with incorrect values. Each value can be updated in the Update COD section of the disbursement.
10. Save your way all the way to the student to lock in the updates.
Hello,
Here are the instructions for why and how you update the fee that is applied to a loan.
Explanation: The origination fee amount for a US Federal Loan is decided yearly based on the 10 Year Treasury bill and other factors. The rates unfortunately change during the school year in many cases. The fee is an origination fee. Thus the fee rate is based on when the loan is originated with the federal government. Thus a loan that is originated prior to October 1st would have one fee but another loan on October 1st could have a different rate. The system carries one rate at a time. It is best practice to change the rate in the system on the date that the new rate take effect. Awards pull the rate when they are created. Thus a loan created prior to the changed rate would maintain the rate of when it was created. A loan that is created after a change in rate would have the new amount. If a loan that was created in the system needs to have a different rate then the rate that is currently listed it would need to be manually updated to reflect the correct rate.
Steps to update Rate (Diagram A below):
1. Go to Financial Aid.
2. Top menu, select Source.
3. Find and select the student loan that you want to update the rate for.
4. Go into edit mode.
5. Go to "Report Types / COD" section.
6. Change the Origination Fee Percentage and Interest Rebate Percentage to reflect the new values.
7. Save changes.
8. Repeat for each aid source loan that is in the system that may also need changing.
Steps to update Awards (Diagram B below):
1. Go to Financial Aid.
2. Top menu, select Student.
3. Find the student or students that you would like to update.
4. Select a Student.
5. Go into edit mode.
6. Select the award that needs to be changed.
7. Change the Origination fee to be the new percentage.
8. Going into each disbursement (that is not disbursed), click Update COD, Select Recompute.
9. If there is an award that is disbursed with incorrect values. Each value can be updated in the Update COD section of the disbursement.
10. Save your way all the way to the student to lock in the updates.
*GNECsis Support Specialist*