Common Manual Updates
LOUISIANA STUDENT FINANCIAL ASSISTANCE COMMISSION
|LPM NO.:||L98-13||Effective Date:||As Indicated|
|Pub. Date:||December 29, 1998||Distribution:||Lenders and Schools|
|Topic:||Common Manual Updates|
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.
Clarification of Borrower Eligibility Criteria
If a borrower inadvertently exceeds an annual or aggregate loan limit, the borrower may regain eligibility by repaying the excess funds in full, making satisfactory repayment arrangements with the lender, authorizing the school to adjust the excess loan amount, or authorizing the school to reallocate funds between a subsidized Stafford loan and an unsubsidized Stafford loan for which the borrower is eligible. Borrowers who exceed the annual or aggregate loan limit as a result of providing false or misleading information must repay such loans in full to regain Title IV eligibility.
Subsections 5.2.A., 5.2.E., 5.7, 8.9, CCI 8.9, 8.10, CCI 8.10, and 9.2 of the Common Manual have been revised to clarify borrower eligibility criteria and to detail what a borrower must do to regain eligibility when the borrower has received funds for which he or she was ineligible. These revisions are effective for loan applications certified by the school (or in the case of a Consolidation loan application, received by the lender) on or after April 1, 1999, unless implemented earlier by the guarantor.
Section 9.2 of the Common Manual has been revised to clarify that, in order to be eligible to receive a Consolidation loan, a borrower must meet applicable eligibility criteria at the time he or she applies for the loan.
This clarification is effective retroactively to the implementation of the Common Manual.