Whether you're new to the financial aid office or just need a refresher for the upcoming fall season, we're here with some helpful tips for efficient refund processing.
The process for handling refunds varies depending on the loan type. Here's a breakdown of what you need to know for each one.
Processing Direct Loan Refunds
Here are a few things to keep in mind about processing Direct Loan refunds.
- Any Direct Loan cash refunds must be made electronically via the U.S. Department of Education's Grant Management System (G5) website. Federal Student Aid does not accept paper checks.
- If you are returning cash as a result of refunds made to borrower accounts, a corresponding downward disbursement adjustment must be reported to the Common Origination and Disbursement (COD) System, and not through the loan servicer.
- Direct Loan disbursements, disbursement adjustments, and refunds of cash, should be reported or submitted in whole dollar amounts only. The use of pennies in Direct Loan processing will impact a school's ability to successfully complete its monthly reconciliation because its Net Drawdowns may not match the Net Disbursements reported to the COD System.
- If you have questions, you can call Direct Loan School Relations (Origination & Servicing) at (800) 848–0978.
Processing Private Loan Refunds
Private loan refunds can be processed through ScholarNet® for Private Loans, Great Lakes' electronic, online loan certification tool that allows you to exchange and manage student loan data with other institutions. ScholarNet for Private Loans automatically calculates values for fields based on changes you've made, making it easier for you to accurately cancel or reduce a disbursement. For more details, refer to our ScholarNet for Private Loans Support materials on Support Central.
Please note that for security purposes, some Support Central content may require you to log in. You or members of your staff can refer to our New User Account Setup page for Great Lakes website account activation steps.
Need More Refreshment?
Our ScholarNet Features and Functionality training webinar provides valuable information about ScholarNet for Private Loans. Learn basic information about ScholarNet and how to use some of its main features and functionality, such as working with applications and loans, working with imports and exports, and using ScholarNet utilities and reports. Our 75–minute SmartSessions™ webinars are conveniently scheduled to meet your busy schedule. Register today!