This workbook covers all the processes needed to administer the federal direct loan program in schools; it requires familiarity with the basic concepts found in the "Direct Loan School Guide." The eight units of instruction include: Unit 1: an overview; Unit 2: processing loan records, including the EDExpress setup, the processing cycle, and importing origination acknowledgments; Unit 3: mastering promissory notes, including printing and recording and use of the activity log; Unit 4: cash management and calculation of funding needs; Unit 5: disbursements, including the processing cycle, entering and processing data, and disbursement and booking acknowledgments; Unit 6: reconciliation, including importing the direct loan school account statement, comparing records to the database, and exporting loan detail records; Unit 7: loan servicing issues, including the activities of the Loan Origination Center and Loan Servicing Centers, direct loan repayment options, loan consolidation, certification of borrower eligibility and enrollment status, and entrance and exit counseling; and Unit 8: a review section. Eleven appendixes include: a school guide; the direct loan 6-step process; data and measurement tools; systems requirements; disclosure statement; policy update; cash transmittal form; EDExpress edits; a client account phone list; and the direct loan bulletin. (RH)