FSA has issued an announcement reminding schools that the 2024–25 Direct Loan closeout deadline is July 31, 2026, and institutions should begin reconciliation and closeout activities now rather than waiting until the last minute.
All Direct Loan data must be received and accepted by the COD System by July 31, 2026 to be included in a school’s final ending cash balance for the year. Schools are expected to reconcile both internally and externally, resolve outstanding discrepancies, and complete the closeout process shortly after final disbursements are made.
To successfully close out the 2024–25 award year, schools must:
- Reconcile to a $0 Ending Cash Balance
- Resolve all Net Unbooked Disbursements to $0
- Confirm closeout through the School Balance Confirmation page on the COD website
FSA emphasized that schools should not rely on the deadline as their target date. Monthly reconciliation and timely disbursement reporting requirements still apply and supersede closeout timelines. Institutions that delay reconciliation risk unresolved balances, rejected records, and potential liabilities after the closeout period ends.
FSA plans to send reminder notifications throughout the closeout period, including warning letters to schools that have not yet confirmed closeout status in COD. Institutions that need extended processing time may request relief through the COD website on a case-by-case basis.
Access the full announcement here: (DL-26-02) Record Submission Due Date for 2024–25 Direct Loan Closeout