Common Manual Update
LOUISIANA STUDENT FINANCIAL ASSISTANCE COMMISSION
|LPM NO.:||L2000-2||Effective Date:||As Indicated|
|Pub. Date:||February 29, 2000||Distribution:||Lenders and 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.
LOSFA provides 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. However, some changes are effective before the next update is scheduled to be delivered.
Backdating Exception for In-School Deferments
The Common Manual has been revised to clarify that in-school deferments are not bound to the 6-month backdating rule that applies to other types of deferment. The lender must grant an in-school deferment for each eligible period of enrollment and may bill the Department for interest benefits on a subsidized Stafford loan, regardless of the date enrollment began. This change reflects Final Rules published in the Federal Register on October 29, 1999. Lenders may implement this provision earlier than the regulatory effective date to maximize the benefit to FFELP borrowers.
|Affected Sections:||7.9.A., 7.10.A., A.1.B.|
|Effective Date:||In-school deferments granted on or after July 1, 2000, unless implemented earlier by the lender.|
|Policy Information:||Reference #379|
Unemployment Benefits Documentation Acceptable for Unemployment Deferment
The Common Manual has been
revised to incorporate an unemployment deferment provision of Final Rules
published in the Federal Register dated November 1, 1999. A lender may
grant an unemployment deferment to a borrower who requests an unemployment
deferment and provides to the lender evidence of the borrower's eligibility to
receive unemployment benefits. In this case, the borrower need not provide the
lender with the common deferment form or other additional information or
|Effective Date:||Unemployment deferments granted on or after July 1, 2000, unless implemented earlier by the lender.|
|Policy Information:||Reference #380|
Endorser Due Diligence
The Common Manual has been revised to incorporate endorser due diligence provisions of Final Rules published in the Federal Register on October 29, 1999. Under these provisions, the lender must complete endorser due diligence requirements before filing a default claim. Prior Common Manual policy required the lender to complete endorser due diligence during the delinquency period of the loan.
|Affected Sections:||8.1.E., and CCI8.1.E.|
|Effective Date:||Default claims for which the first day of delinquency on the oldest outstanding due date is on or after July 1, 2000.|
|Policy Information:||Proposal #381|