Pell & Direct Loan Closeouts

By Siobahn Arbogast

As the award year nears to a close for both Pell 2023-2024 and Direct Loans 2022-2023, we would like to share award specific deadlines and key points for financial aid administrators.

Pell 2023-2024

• The closeout deadline for 2023-2024 Pell is September 30, 2024.
• After the closeout deadline, the COD system will no longer accept new or increased awards or increased disbursements without prior approval of Extended Processing. Downward adjustments (e.g., refunds) and non-financial changes (e.g., dates) do not have to have approval of Extended Processing to update the COD system.
• If Extended Processing is needed, the Department of Education recommends that institutions complete a final review before requesting Extended Processing.

Direct Loans 2022-2023

• The closeout deadline for 2022-2023 Direct Loans is July 31, 2024.
• Once a college has reached its Latest Award Year End Date (LAED), colleges should review and determine if the award year can be closed. Colleges will need to review all pending disbursements and determine whether these need to be reported as actual disbursements or reduced to zero, i.e., cancelling the disbursements in COD.
• After the closeout deadline, the COD system will no longer accept new or increased awards or increased disbursements without prior approval of Extended Processing. Downward adjustments (e.g., refunds) and non-financial changes (e.g., dates), do not have to have approval of Extended Processing to update the COD system.
• If Extended Processing is needed, the department recommends that institutions complete a final review before requesting Extended Processing.

Siobahn Arbogast is Global’s Director of Title IV Accounting