COD IMPLEMENTS CARES ACT REPORTING AND WAIVERS FOR AID CANCELLATION
On August 2, 2020, the COD system was updated to support CARES Act reporting for students who qualify for a Title IV waiver because they withdrew due to COVID-19. The implementation of these changes will be rolled out in two phases. In the first phase, FSA implemented a new Coronavirus Indicator on COD and implemented new or modified COD Edits. A second phase is expected to come later in September which will include modifications to the Return to Title IV (R2T4) calculator on COD and new reports as well as an updated COD technical reference to support the new processes and file Edits.
For students whose withdrawals were related to COVID-19, Direct Loan Funds received for the period covered under the waiver will be cancelled. As a result, the loan period will be excluded from students’ Subsidized Loan usage used to calculate the 150% Subsidized Usage Loan Limits. Pell grants received for the period will also be excluded from a student’s Lifetime Eligibility limit under Pell LEU. Schools will use the new COD functions to report student information for any students they were not required to return funds for under the waiver.
Check out this announcement from FSA for more information about the new “Coronavirus Indicator” checkbox and COD system Edits that you will begin using to report that an affected student’s aid disbursement qualifies for these exceptions under the waiver.