The ELM National Disbursement Network (NDN) provides a single source to receive disbursements for the Federal Family Education Loan Program (FFELP) loans and some private loans. Using ELM NDN, schools can choose:
- how often disbursements will be received;
- if rosters will be sent to the school in an electronic or paper format;
- if funds for Federal Stafford Loans will be sent separately from Federal PLUS Loans;
- how funds will be received - electronic or paper check; and
- when cancellations and refunds will be processed.
Loan Disbursement Methods
ELM NDN can be used with or without other ELM services. While the NDN was designed to complement the ELM loan processing network, it can be used on its own.
The school and the lender must both participate in the National Disbursement Network - Electronic Funds Transfer (NDN-EFT) in order to receive disbursements through the NDN-EFT process.
- An ACH (Automated Clearinghouse) account is a pre-authorized bank account for debit and credit entries agreed upon by the NDN and participating institutions for the NDN-EFT process. When ACH is used, the NDN moves the loan disbursement funds to the school’s account. A single transaction is made to reflect all disbursements made to the school by the NDN each day. A disbursement roster is provided to the school electronically or by paper.
- If a master check is being used, the NDN will issue and mail a single check to reflect all disbursements made to the school by the NDN each day. A disbursement roster is provided to the school electronically or by paper.
- An individual check will be issued in cases where a school has not authorized EFT or master check for a particular student. A roster detailing the disbursement is available to the school electronically and a paper roster is also included with the check.
Loan Disbursement Process
The NDN receives files and funds from lenders throughout the day. At 4:00 p.m. Central Time (CT), the data is processed and prepared for distribution to schools according to the individual school profiles. Funds and reports are available to schools at the start of business the following morning.
NDN Later Funding
Since August 16, 2000, the National Disbursement Network (NDN) has provided an enhanced disbursement service. This service, under the name "NDN Later Funding" offers the following features:
- This process supports "late in the day disbursements" with the funds and data available at the school the next morning.
- Lenders have until 5 p.m. (CT) to disburse loan proceeds and have the funds at the school the next morning. Disbursement Rosters will be available to the school by 7 p.m. (CT).
This process offers overnight loan disbursements to schools. The key features of this service are:
- Lenders send disbursement records to the NDN as late as 5 p.m. (CT).
- The NDN will initiate an overnight ACH debit against the bank account of the disbursing lender or designated servicer.
- At the same time, the NDN will initiate an overnight ACH credit to the school.
- Funds will be available at the school by the next morning. Note that the NDN overnight process is designed to get the funds to the school’s designated bank by a certain time. The NDN has no control over how timely the bank is in applying the funds to the school’s account.
- Disbursement records will be available to the school by 7 p.m. (CT) the day before the funds arrive at the school’s bank.
Disbursement Timing
The NDN has a 5 p.m. (CT) cut-off. All disbursement records must be at the NDN by that time. The NDN will move the ACH debits and credits into the banking process by 7 p.m. (CT).
Data Formats
No format changes are required by lenders or schools.
Lenders create Disbursement Rosters (Proprietary layout, CommonLine 4, and CommonLine 5) that include all disbursement-ready loans to the National Disbursement Network (NDN).
Schools will continue to receive Disbursement Rosters in their existing formats.
Funds Movement
In order to support "late in the day" overnight disbursements, this process requires offsetting ACH overnight auto-debits and auto-credits. Because of the practical limitations of a nationwide disbursement service, the NDN maintains a single profile for each lender describing how funds are moved between the lender and the NDN. Therefore, if a lender wishes to utilize this "late in the day" disbursement service, the lender must be set up with the NDN to fund all disbursements via an auto-debit process. How to Participate
Lender/servicers interested in participating in the ELM NDN later funding must complete an auto-debit permission form and return it to the NDN to the attention of the ELM Team at:
Regular Mail: P.O. Box 460, Denver, CO 80201
Overnight Mail: 3015 S. Parker Road, Suite 400, Aurora, CO 80014
ELM - NDN Funding Model With Auto-Debit
ELM National Disbursement Network School Profile
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