All schools participating in the Federal Pell Grant (Pell Grant) and Federal Direct Loan (DL) programs are required to submit disbursement and payment adjustments to the Common Origination and Disbursement (COD) system within 15 calendar days of such transactions taking place. Prior to April 1, 2013, schools had 30 days within which to report disbursements or adjustments to previously made disbursements. However, effective for all disbursements and payment adjustment transactions on or after April 1, 2013 schools must submit such transaction records within 15 calendar days of the transaction taking place. These changes in the time frames for reporting the disbursement transactions are critical to help avoid potential institutional and student liabilities for overpayments due to such factors as exceeding Pell Grant Lifetime Eligibility Used (LEU) limits or impacting students’ eligibility for Subsidized DLs due to the 150% of program length limit. ED has requested that schools not wait until the end of the 15 day period but rather report the transaction records to COD as quickly as possible. ED has also indicated that failure to report required changes within the appropriate timeframe may result in an audit or program review finding.
Reminder for FAME Customers: Schools that utilize FAME for servicing should report appropriate transactions to FAME in a timely manner to ensure the reporting is completed within the required 15 days. Should FAME client schools have questions regarding this process, please contact your Customer Service Representative via support.fameinc.com.
(FR022813; EA062713; FR070813)