ED Prioritizing Solution for 2024–25 Pell Grant Origination Issue and COD System Reject Edit 38
By Hugh T. Ferguson, NASFAA Managing Editor
Update: According to a notice from Federal Student Aid on August 29, the issue preventing Pell Grant eligibility information from being passed to the COD System for FPS transactions has been resolved. Schools should resume submitting 2024-25 Pell Grant records.
However, FSA is still trying to correct data in the COD system from August 18 through the 28th. While schools can submit or continue to hold any award submissions that were previously rejected, schools should know that these submissions will continue to be rejected until the department has completed correcting FPS transactions. Stay tuned to Today’s News for updates.
The Department of Education (ED) in an electronic announcement published on Tuesday acknowledged that there is an issue causing schools to receive rejects on certain Pell Grant origination records for the 2024–25 award year. According to the notice, Pell Grant eligibility information processed by the FAFSA Processing System (FPS) is correctly appearing in the FAFSA Partner Portal and on the Institutional Student Information Record (ISIR), however the information is not being passed to the Common Origination and Disbursement (COD) System.
ED states that it has prioritized the resolution of the problem. “We ask schools to delay sending any 2024–25 Pell Grant records tied to an FPS transaction processed after Aug. 18, 2024, to the COD System until that system has been updated with the correct Pell Grant eligibility information,” the announcement reads. “Schools may continue sending Direct Loan and TEACH Grant disbursement records.”
In the meantime schools can continue to package aid awards, create 2024–25 Pell Grant disbursement records on their systems, or submit any 2024–25 Pell Grant records tied to an FPS transaction processed prior to Aug. 18, 2024.
Stay tuned to Today’s News for more information on this issue.
Publication Date: 8/28/2024
Armand R | 8/30/2024 12:32:06 PM
Enough is enough! Where is the call for Miguel Cardona to resign?
Darren C | 8/30/2024 11:35:14 AM
Another failure to add to the list for this Department of ED. At what point is this viewed as direct harm to students and universities? This is often the problem when big government gets involved in things that it shouldn't that they are above the law and there is no accountability system in place to help bring forth corrective action. However, ED has been great with pushing through more regulations, and putting pressure on schools to follow their rules under threat of bad press or forced closure.
Kevin H | 8/29/2024 12:4:15 PM
@David F - 100% our district's issue as well!
Jeff A | 8/28/2024 10:56:08 AM
Charles, exactly. ED says not to pick and choose the transactions to COD. NO system can do that. Absurd. My FA automation credits students accounts upon receipt of a COD response file. NO SOUP FOR YOU! is the gist of the response we got from ED support.
Agree we will keep sending all and deal with the rejects, which are quickly increasing.
AND, ED is indicating more and more correcrtions shoudl be sent by paper. They said send it overnight or 2 day fedex! So they can take 2 months to process them. NO SOUP FOR YOU! once again. This is influencing how I vote at this point. Have to give them credit for zooming through the reg process to give us new Title IX, BDR, 9010, 150% rule, online attendance, debt relief, cash management. That makes transaction processing failures all worth it, right?
Joshua M | 8/28/2024 10:39:56 AM
ED needs to be reformed. total failures.
Charles M | 8/28/2024 10:4:23 AM
What’s the worst that will happen if we keep extracting them daily and they keep rejecting? If there is no major downside, I think that’s what we’ll do, and then work the rejects after FSA figures out how to do their job. It would get pretty tricky trying to send and not send based on FPS processed date since our process flow is built to send whatever is ready. In our software (Banner) our extract job has to account for original originations, updated originations, original disbursements, updated disbursements, etc. All those things extract with the same job and isolating original originations from all the other things would not be easy.
Sheree T | 8/28/2024 9:51:28 AM
The amount of fail in this ED must be record breaking.
Christopher J | 8/28/2024 9:42:33 AM
The quote from ED says "FPS transaction processed after Aug. 18, 2024," which matches the Electronic Announcement. You might correct your summary paragraph, which says "an FPS transaction processed prior to Aug. 18, 2024."
Sheila S | 8/28/2024 9:29:40 AM
COD has denied there was a problem with 038 rejection codes since last week. Meanwhile, even though FPS acknowledged the issue, they have pointed the finger at COD to fix the issue. If I could give both of them a zero-star review for their crappy customer service skills, I would!
David F | 8/28/2024 9:13:56 AM
I assume that we won't be able to drawn down funds for those students either, because we can't submit their disbursements to COD. Our school can't afford to front the money for all of these. Our only choice would be to delay their disbursement. That is unacceptable.
Jeff A | 8/28/2024 8:53:37 AM
Well, I have had 2 dozen Pell records reject with this error.
And i have over 2,500 to submit right now so those students and our institutions can be paid $7.5mm. But sure, i guess we all have to wait to submit those records until we hear from ED that it is ok to process them. WOW!
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