9.2 Awarding and Processing Alternative Loans (FA-SF)
Purpose: Use this document as a reference on how to award and process alternative/private loans in ctcLink.
Audience: Financial Aid Staff/Student Financials Staff.
Alternative loan processing is a combined effort between Financial Aid staff, a-third party platform, and Student Financials Staff. In this 5-step process, alternative loan processing involves a Financial Aid award, certifying the loan in a third-party platform, and ends with Student Financials releasing the loan funds to the Customer Account. Steps are outlined as follows:
1) Award the Alternative Loan in Assign Awards to a Student
2) Certify the loan in third-party platform
3) Review Loan Disbursement Roster/Determine Eligibility
4) FA notifies SF that EFT/Check is en route to SF
5) SF processes funds
5) SF processes via Third Party Contracts
Awarding and Processing Alternative Loans (FA-SF)
Navigation: Nav Bar > Navigator > Financial Aid > Awards > Award Processing > Assign Awards to a Student
- The Award Entry search page displays.
- Enter the following search criteria:
- Empl ID
- Academic Institution
- Aid Year
- Select the Search button.
- The Assign Awards to a Student page displays.
- Enter the desired Num Sequence -- in this example 10 is used.
- Enter a "B" (Offer/Accept) in the Action field.
- Enter the Alternative Loan Item Type -- use the Lookup Tool to find your desired Alternative Loan Item Type.
- Enter the amount of the loan to be certified - in this example, $5,000.00 is used.
- When satisfied with the award amount, select the Validate button.
- To finalize, select the Post button.
Note that the Alternative loan Item Type is a disburseable Item Type, however, the item type serves as a placeholder on the Award page because the funds are processed through SF.
When attempting to Authorize and Disburse Alternative Loans, it is common the Authorization Failure message reads "Funds for this disbursement have not been recorded in the system", because the Commonline functionality is not configured in ctcLink.
This Authorization Failure message should be ignored, and posting of the funds to the Customer Account will be processed through SF.
Next, certify the loan amount in whichever third-party platform your institution uses. Define the amounts, disbursement dates and loan period dates. The lender will approve the certification and follow up with a loan disbursement roster in the third party platform, and/or by email. No images are used here; SBCTC does not have an instance to private loan certification platforms.
When the loan disbursement roster is received, the loan processor in the Financial Aid office should cross-check the roster with active Alternative Loans awarded in ctcLink. Look up each individual student in the roster, and verify the amounts of the award and the disbursements are accurate, and that the student is still eligible to receive the loan.
Depending on how your school receives the alternative loan funds, either by wire (EFT), or by a lump sum check, FA staff should notify SF staff that Alternative funds are en route.
FA Staff can notify SF that funds will arrive:
- in the amount of X (for example, a total wire of $20,500 will be received for 5 individual students -- list out their Empls)
- on X date (for example, September 18th, the Friday before Fall quarter start).
Communication between FA and SF departments is key, as is monitoring eligibility for the full alternative loan disbursement for each individual student. Constant communication between departments is strongly encouraged so staff can catch eligibility checks such as enrollment, or holds in the system, which ensures an efficient disbursement and posting to the Customer Account.
The first option for processing an alternative loan payment is to use an appropriate item type to pay directly onto a student's account. This option allows for a simple and direct posting of alternative loan payments as they are received by the institution.
Item types may be paid onto a student account via cashiering or via the Student Financials office through the Quick Post option (Post Student Transaction.)
It is recommended to create an original payment item type for reporting purposes.
Navigation: Navigator > Student Financials > Cashiering > Post Student Payments
- The Post Students Payments search page displays.
- Enter the appropriate information into the fields on the Add a New Value tab of the Student Payments page.
- Business Unit
- Cashiers Office
- Leave the Receipt Number as the defaulted value ctcLink will auto-assign a receipt number.
- Select the Add button.
- Enter appropriate information into the fields on the Student Payments page.
- Ref Nbr: This is a good place to list third party platform payment data.
- Target: ALTLOAN
- Term: Enter the term in which the payment should be applied to on the student's account.
- Amount: Enter the payment amount.
- Tender: ALTLOAN.
- Select the Create Receipt button.
Navigation: Navigator > Student Financials > Charges and Payments > Post Student Transaction
- The Student Post search page displays.
- Enter or lookup and select the Student ID.
- Enter or lookup and select the Account Type (optional)
- Enter or lookup and select the Item Type.
- Select the Add button.
- The Student Post page displays.
- Enter an Amount for the item type.
- Enter the transaction Term.
- The reference number field is optional. This can be used to track the transaction.
- Enter Item Effective Date on which the transaction becomes active. The default is the current date.
- Select the Post button to add the transaction to the student’s account.
The second option for processing an alternative loan payment is to utilize the Third Party Contract process in ctcLink. Using this option, the student loan monies may be posted prior to receiving the payment (like a guarantee) from the third party platform. This option allows for tracking, invoicing, reporting, and for students to be rolled term to term.
Follow the below links to create, assign, and post payments for alternative loan contracts.