All schools that participate in the William D. Ford Federal Direct Loan (Direct Loan) Program
are required to implement a quality assurance process within their financial aid office operations.
The Direct Loan Program regulations at 34 CFR 685.300(b) (9) require schools to implement
and document a quality assurance process to ensure that they are complying with program
requirements and meeting program objectives.Your school must have a quality assurance process in place that documents that the school is:
- Reporting loan records, disbursements, and adjustments to disbursements correctly to the Common Origination and Disbursement (COD) System,
- Disbursing and returning loan funds in accordance with regulatory requirements,
- Disbursing the correct loan amount to the correct student, and
- Completing monthly reconciliation and Program Year Closeout
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Direct Loan Quality Assurance Requirement