The deadline to submit information for the 2023-24 Direct Loan Program Year is July 31, 2025 and all school data must be received and accepted by this date to finalize the ending cash balance. Institutions must also complete reconciliation, resolve discrepancies, and confirm their successful closeout through the COD website to avoid penalties for remaining balances.
Closeout Deadline and Exceptions
- The deadline to submit data for the 2023-24 Direct Loan Program Year is July 31, 2025
- Your institution’s information must be received and accepted by the deadline in order to receive the final Ending Cash Balance for the year
- If your school’s processing period goes beyond the July deadline, you should contact FSA Partner and School Relations Center for assistance
- Institutions can apply for relief from the deadline through COD’s “Request Reopen/Extended Processing” webpage
Requirements and Process for Successful Closeout
- You are only considered successfully closed out when:
- The School Balance Confirmation form is completed on the COD website
- There is an Ending Cash Balance of $0 and Total Net Unbooked Disbursements of $0
- Best practice to ensure a smooth closeout process:
- Resolve document timing issues and discrepancies
- Make sure that all disbursements and adjustments are properly noted
- Verify that the COD system has verified all batches
- Perform monthly internal and external reconciliations
Notifications and Post-Deadline Actions
- Schools will receive Zero Balance or Remaining Balance Notifications via email during the closeout process
- Any remaining balances after the closeout deadline will be communicated via Post-Closeout Deadline Multi-Year Balance Reminder letters
- If a positive balance remains, your institution may receive a Combine Programs Demand Letter or Negative Balance Letter
- The Department will a send Notification Warning Letter to remind schools who have not confirmed closeout successfully about the upcoming deadline
Key Dates and Next Steps
- Early May 2025: Notification Warning Letters will be sent to institutions who have not closed out
- July 31, 2025: The closeout deadline for 2023-24 Direct Loan Program Year
- FSA recommends that schools complete reconciliation soon after final disbursements to ensure timely processing instead of waiting until the deadline.
SOURCE: (DL-25-01) Direct Loan Closeout Information for 2023–24 Program Year