LOUISIANA STUDENT
FINANCIAL ASSISTANCE COMMISSION
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| LPM NO.: | L2005-6 | Effective Date: | As Indicated |
| Pub. Date: | Sept. 27, 2005 | Distribution: | Lenders; College, University and LAICU Financial Aid and Business Offices and Registrars; Tech School Personnel and Campus Deans; and Proprietary Schools. |
| Topic: | Common Manual Update | ||
To assure that your Common Manual remains current, please record this document on your LPM/LPB index and retain it in Appendix E of your manual.
The nation’s guarantors provide the following summaries to inform schools, lenders and servicers of the latest Common Manual policy changes. These changes will appear in the manual’s next annual update in July 2006. These changes will also be incorporated into the September 2005 Integrated Common Manual. The Integrated Common Manual is available on several guarantor Web sites, and it is also available on NCHELP’s Web site at www.NCHELP.org in the e-library. Please carefully note the effective date of each policy change.
Acceptable
Source Documents for Social Security Number Changes
The Common
Manual is revised to remove “Income tax return” and “Official
military orders, documents, or papers” from the list of acceptable source
documents that may be used by a lender or school to report Social Security number
(SSN) changes. The policy adds “Unexpired U.S. military ID” to the
list of acceptable documentation.
| Affected Sections: | 3.5.F
Social Security Number Change Reporting 9.1 Reporting Social Security Number Changes |
| Effective Date: | Social Security number changes made by the lender or school on or after January 1, 2006 |
| Basis: | Acceptable Forms of Documentation (12/17/04); NSLDS Quick Access; Financial Partners Portal Website (www.fp.ed.gov) |
| Policy Information: | 827/Batch 122 |
| Guarantor Comments: | None. |
Eligible Parent Borrower
The Common Manual is updated to remove language limiting the number of
eligible parent borrowers who may borrow for a dependent student to two. All
of a dependent student’s eligible parent borrowers may borrow separately
to provide for the educational expenses of the dependent student provided that
the combined borrowing of the parent borrowers does not exceed the calculated
cost of attendance (COA) minus estimated financial assistance (EFA).
| Affected Sections: | 5.1.C Parent Borrower Eligibility Requirements |
| Effective Date: | Retroactive to the implementation of the Common Manual. |
| Basis: | §682.201(b)(3); December 1, 1995, Federal Register, Volume 60, No. 231, pages 61807 - 61808 |
| Policy Information: | 828/Batch 122 |
| Guarantor Comments: | None. |
Withdrawal Rates
The Common Manual has been updated to eliminate subsection 4.2.C
and to move the information about student withdrawal rate requirements for schools
seeking initial participation in a Title IV program to subsection 4.1.A “Establishing
Eligibility.” A school seeking to participate for the first time in a
title IV program must not have a withdrawal rate during its latest completed
award year that exceeds 33 percent of its regular, undergraduate students. In
addition, instructions have been added explaining the calculation of the withdrawal
rate.
| Affected Sections: | 4.1.A Establishing
Eligibility
4.2.C Withdrawal Rates |
| Effective Date: | Retroactive to the implementation of the Common Manual. |
| Basis: | §668.16(l) |
| Policy Information: | 830/Batch 1122 |
| Guarantor Comments: | None. |
Please note that Policy Proposal #829, Teacher Loan Forgiveness, has not been added due to new Department of Education guidance circulated August 26, 2005, reversing its position upon which this policy proposal was based.